Many people are not familiar with Buy Here Pay Here Car Dealerships until they have a need for them. The point of this article is to shed some light on the way that the BHPH car lot and auto dealer operates and how they differ from the standard automobile dealer. I will give you a look inside the BHPH business model and how they sell, finance, acquire and secure automobiles.
To give you some background the primary focus of the Buy-Here Pay-Here car dealer is to sell and finance vehicles for people that have bad credit and are unable to buy and finance automobiles through traditional dealers and lenders. They do this by selling used vehicles and financing them in-house or through the selling dealer. They don’t use banks, finance companies or third party lenders. Their customers buy the car and make the weekly payments at the same place, hence Buy Here Pay Here.
Setting-Up the Buy Here Pay Here Car Dealership
Some BHPH car dealerships are small corner lots that set up business in and old gas station or an auto repair facility as long as they have an office, a couple of bays where they can work on or prepare cars for sale on the lot and an area where they can display their vehicles that are for sale. On the other end of the spectrum you will find that some new car dealers set-up a Buy Here Pay Here division in addition to their regular car sales business to accommodate customers that will not qualify for an auto loan through their normal lenders. So you can see that BHPH car dealers can come in all shapes and sizes. Carly Car Subscription
Inventory for the BHPH Car Dealership
The small to mid-size BHPH car dealer is always on the lookout for vehicles to sell on their lot. They go to auctions to buy cars, buy cars from private party sellers and they also buy cars from new car dealers that were trade-ins. They are very particular about the cars they buy because they have to pay cash and they need dozens of cars to stock their lot and attract customers with a good selection.
The new car dealers that have a Buy Here Pay Here Department usually sell their quality trade-ins in their BHPH Division. It makes good sense to sell their trades with in-house financing because they have a steady source of used vehicles at their disposal and they can avoid buying cars from the auction which is a very time intensive activity to find quality cars.
No matter where they get their vehicles they are very careful to make sure they only offer sound and dependable automobiles because they will be financing their customer’s purchases. If they were to sell junkers and beaters to their customer they stand a chance of the buyers not making their payments. Then if the customers don’t pay they will have to repossess the cars and then they are stuck with vehicles that are unsellable because they are junk. So you can see why they are very particular about the cars that they sell and finance at their Buy-Here Pay-Here car dealership.