How Buy-Here-Pay-Here Dealers Work
How buy-here-pay-here dealers work in the US—dealer is the lender; high rate and price so you know what you're getting.
Buy-here-pay-here (BHPH) dealers in the U.S. are the lender—you buy the car and make payments to the dealer. They often serve buyers with bad credit but can charge high rate and high price. Here's how buy-here-pay-here dealers work.
TL;DR BHPH = dealer finances the car; you pay the dealer. Often high APR and high price—dealer takes the risk and charges for it. Shop other lenders (banks, credit unions, dealer-arranged) first; compare APR and OTD. Use autopremo.com OTD calculator and payment calculator. Use autopremo.com.How BHPH Works
Dealer sells the car and holds the loan—you make payments to the dealer. No bank in the middle. Dealer sets rate and price. Often high APR and high price because they're taking default risk. Use autopremo.com payment calculator to see payment at different APRs. Get your numbers at autopremo.com.
Compare to Other Lenders
Before you go BHPH, shop banks, credit unions, and dealer-arranged lenders—you may get a better rate or price elsewhere. Agree on OTD first; compare total cost. Use autopremo.com OTD calculator. See OTD at autopremo.com.
Know the Terms
If you use BHPH, read the contract—APR, term, total cost, repossession policy. Compare to other options. Use autopremo.com so you know fair value and can compare. Check at autopremo.com.
Bottom Line
Buy-here-pay-here = dealer is the lender; often high rate and price. Shop other lenders first; compare OTD and APR with autopremo.com OTD calculator and payment calculator so you don't overpay.