What is buy here pay here?

Buy here pay here, often shortened to BHPH, is a used-car sale where the dealership is also the lender. You buy the car on the lot and make the payments to that same business. There is no separate bank approval in the middle.

How it usually works

• You pick a car the lot already owns.
• The dealer writes the contract and sets the down payment.
• Payments are often weekly, lined up with a paycheck, though some lots bill monthly.
• The dealer, or a related finance company the dealer controls, holds the note.
• If payments stop, the dealer can repossess the car under the contract.

How that differs from a bank or credit union

A bank looks hard at credit score, income, and debt. A BHPH lot may weigh the down payment and whether you can keep a weekly payment more than a credit score. In exchange, the price of the car and the cost of the credit are often higher than a traditional loan. Some contracts are written so the total of the payments is much larger than the price sticker.

Not every store that says “we finance everyone” is BHPH. Many dealers send applications to banks and finance companies. That can still help a shopper, but it is not the same product. On FindBHPH, the “BHPH confirmed” badge means the dealer’s own site describes in-house or buy-here-pay-here financing. An unverified listing only means a public directory used that label.

Questions worth asking on the lot

• Who do I pay: this dealership, or another company?
• What is the cash price, the down payment, the payment amount, and the total of all payments?
• How many days late triggers a late fee or a repossession?
• Is there a GPS device or starter interrupt, and what does the contract say about it?
• Can I have the contract to read before I sign, not after?

FindBHPH does not quote those terms for you. The lot has to. Start with theNew Jersey dealer list, then call the number on the listing. To report a mistake, usecontact or call (862) 520-1711.