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Buy Here, Pay Here

328 messages,  Last post on Jul 19, 2009 at 7:42 PM

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What is this discussion about? Car Financing

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#3 of 328 Re: I'm not a BHPH dealer, [driftracer] by qbrozen Jan 03, 2005 (11:40 am)
Replying to: driftracer (Jan 03, 2005 10:33 am) ok, so i saw your original request for this topic, drift, and since you mentioned that many folks might not know they are dealing with a BHPH lot, can you specify how to spot one? For instance, I think I shopped at one last month only because they offered their own financing, but the prices were pretty good, while I was under the impression that a BHPH was typically overpriced. Is this not true? Replies to this message: devond (Jun 08, 2006 11:41 am) qbrozen (Jun 08, 2006 1:11 pm) devond (Jun 08, 2006 1:14 pm) and 27 more... mac24 (Jun 08, 2006 5:06 pm)
#4 of 328 The telltale sign is by driftracer Jan 03, 2005 (11:45 am)
a big "We Finance" sign - many BHPH dealers don't use the term "Buy Here, Pay Here"....although that's exactly what the consumer does.   Prices may be fairly in line, until you figure out the title status for that assumedly clean and decent mileage vehicle - these are perfect places for flood, salvage, and total title cars, simply because the consumer has no recourse, and there's no lender or warranty company to certify the car to as a "clean, sellable" retail unit, as there are with a typical car dealership using GMAC and GMPP.   Oh, and flood, salvage, and total (and repurchased lemon!) vehicles are CHEAP at the auctions and main line dealers won't touch them.
#5 of 328 by kirstie_h HOST Jan 03, 2005 (12:53 pm)
I always assumed that the places advertising weekly payments were this type of dealership - for those with poor credit, similar to the rent-to-own furniture companies.   I know there are other reasons for renting or paying weekly, but are these likely to be BHPH dealerships? I've never seen any other finance company offering weekly payments.   kirstie_h Roving Host Host, Future Vehicles & Smart Shopper discussions Replies to this message: rroyce10 (Jan 04, 2005 3:47 am) kirstie_h (Jan 04, 2005 5:54 am)
#6 of 328 Usually so, by driftracer Jan 03, 2005 (1:01 pm)
they want to see your smiling face, and hopefully the car, every week, so they know you haven't skipped town.
#7 of 328 by stickguy Jan 03, 2005 (1:13 pm)
Some lots still have the big buy here, pay here banners. Probably less confusing to the majority of their customers, that are looking for just that!   As long as the dealer is honest (that is, the cars are legit used cars), and the prices are market correct, than BHPH makes sense as an alternative way to finance. Someone has to service the market for people that can't get normal financing.   It is also nice to report the good payers, but I'm sure some dealers don't, since it would potentially cut into their client base.   So, I have a problem with the repo shark types that are basically preying on people without options 9for whatever reason), but not with the whole BHPH concept.   There are quite a few of the sleazy places in my area (across the river from Phila, Drift will know where!), but also some legit ones (one in Westhampton comes to mind).   I wonder how many people actually complete the payments and end up owning the car?
#8 of 328 One thing BHPH dealers may do... by gkbenji Jan 03, 2005 (8:59 pm)
is buy cars from individuals that other lots won't take, old or high mileage, if you're not trading or don't want to sell yourself for some reason (e.g. need the cash *now*). These don't necessarily have to be salvage or otherwise "tarnished" cars.   For example, I wasn't sure if I wanted to trade in my 14-year old Jetta with 131K miles, or sell it myself. I shopped the car around to see what it might be worth. About the only guys who would even make an offer on a car that old were BHPH dealers, so I ended up getting a good idea of what it was worth to them. Of course, I got over $1000 more than that by finally selling myself, but if I'd needed to sell it right away I knew where I could take it--as well as having a number to base ACV trade-in value if I'd gone that route instead.
#9 of 328 Re: .... Kirstie_h .. by rroyce10 Jan 04, 2005 (3:47 am)
Replying to: kirstie_h (Jan 03, 2005 12:53 pm) ...... If they're paying weekly or twice a month, you can bet it's a BHPH lot ...               That said, it doesn't make them a bad store, most of the BHPH lots do 75/85%+ of their "real" business on the Retail side and most of the time the BHPH stuff is just a small portion of their business .. most sell some nice vehicles and have a good reputation .. it's awful hard to stay in the BHPH business when your not selling anything else and your depending on Billy Bob to make his payments after his 2nd bankruptcy ........ Yikes.!                             Terry Replies to this message: kirstie_h (Jan 04, 2005 5:54 am)
#10 of 328 Re: .... Kirstie_h .. [rroyce10] by kirstie_h HOST Jan 04, 2005 (5:54 am)
Replying to: rroyce10 (Jan 04, 2005 3:47 am) I had one of my best shopping experiences at a BHPH lot - no new cars, only used. I needed a used vehicle under 10K, and they had a Protege that had exactly the features I wanted. At the time, I was driving a really old LeBaron that barely ran, which I suspect normal dealerships wouldn't have touched. They were happy to take it off my hands for $800, no problem. I imagine this transaction would have been a lot more hassle for a "regular" dealership.
#11 of 328 BHPH by turboshadow Jan 04, 2005 (6:22 am)
Mrs. Turboshadow and I disagree completely on the subject of BHPH, furniture rental, payday loans, title loans, and other places that the local news media have dubbed "predatory lenders." My take on the deal is that the people that use these places actually have no recourse because of bad credit, or are young and have yet to establish credit. Sure, it seems unfair, but there is an aweful high number of people who default on them as well. As one ex-car dealer told me, "Bad credit is expensive."   I am leery of buying cars from these places, though. Even though I obtained finacing thru my credit union, I didn't look at any cars from the BHPH lots; I was afraid of the aforementioned lemons, salvages, and flood cars.   Turboshadow
#12 of 328 I agree... by driftracer Jan 04, 2005 (7:20 am)
"BHPH, furniture rental, payday loans, title loans, and other places that the local news media have dubbed "predatory lenders"   BHPH and furniture rental, though, however overpriced and repo-threatening, actually provide a service where consumers buy a product that they can pay off and keep.   When I was a young buck, just returning from doing my first 5 years in the AF overseas, at 23 I had no credit. We bought furniture and a washer and dryer through Rent-A-Center or someplace like it in Abilene, TX, paid it off and kept it until 1994. Kept the washer/dryer until 1999.   Now, the payday loans? OMG....these folks take people who already can't handle their money, loan them more money, and charge them up to 100% interest...in many cases, you agree to allow them to GARNISH your wages...even BHPH or furniture rental places can't do that.   The title loan thing? That one's entertaining - you let them hold the title to your $3,000 car while they loan you $500 at sky-high interest. You don't pay back the bucks, they take your car - in many cases, they keep your car in a lot until it's paid off - no risk for the lender, for sure...   "Bad credit is expensive."   Very true - and it's no one's fault but the person with the credit history, save a few circumstances with medical bills or natural disasters.   Given NORMAL bad credit though, I don't feel sorry for anyone - you put your name on a piece of paper syaing you'd pay some money by a given date - you didn't do that - your credit now sucks.   Tough cookies. It's called personal responsibility, I have no sympathy, and you'd better bet that there'll be a "Big Jim's Buy Here Pay Here, We Finance Luxury Automotobiles and SUVs, pickup trucks and family cars" coming soon to a corner lot near you...

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