What is a Buy Here Pay Here Dealership?
Have you heard of buy here pay here dealers in Austin? What does that BHPH term even mean?
A buy here pay here dealer is a car dealership that provides its own financing rather than you having to get a loan through a credit union or bank. The dealership provides its car buyers with the loan for the vehicle using money owned or held or credit held by the dealership. This is not a new car dealership that provides loans through a financing company, like say Ford Motor Financing. It is money loaned by the dealership.
This means that the auto dealer is the one that decides who gets approved for the auto loan, not a bank. Banks are required to abide by certain rules when providing a loan, that is often centered around an individual’s credit score. The money a bank loans is actually money from deposits in that bank, so it isn’t really even the bank’s money they are lending out. That means they have to abide by rules they provide to their deposit holders regarding the safety of the money they are lending. A credit score is the unbiased way to prove that. But we all know how credit scores don’t always depict the ability of an individual to pay their monthly car note.
Who Provides the Money?
A buy here pay here car dealer is using their own money to provide a loan, so they are able to create their own requirements for the loan. This might include a credit score but can also include other factors that show the individual’s ability to pay their note. This could be their income, the amount of time they’ve been at their job, money in the bank, the amount of a down payment, or other factors that prove credit worthiness not reflected in one’s credit score.
It is true that the car buyer will likely pay a higher interest rate for the loan, but that is purely based on the risk the dealer providing that loan is taking on. As with any investment, higher risks typically bring higher returns. The great thing about a buy here pay here dealer is that it allows someone to get into a newer vehicle they need, and one they can afford, regardless of their lack of credit or poor credit. How can you get to your job so you can earn money and build your credit if you don’t have a car to get to that job? BHPH dealers can often be the answer to that challenge.
Austin Buy Here Pay Here
Dynamic Motors is proud to be one of the few buy here pay here dealers in Austin. We provide nicer vehicles and newer models compared to other BHBP dealers in Austin. This allows car buyers to get into a new car, truck, van or SUV they are going to love and be proud of. It will also be a car they can depend on. If you have questions about how Dynamic Motors can get you into a newer vehicle, call today at 1-888-442-8048. You can also fill out the “Get Approved” form online. Stop by our lot in downtown Austin at 1500 E Cesar Chavez St. Visit down south on the motor mile at 8113 S IH-35 on the northbound frontage road. If you need a car and can’t get a loan, “Don’t Panic, Go Dynamic!”