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Smart Shopper Buy Here, Pay Here
328 messages, Last post on Jul 19, 2009 at 7:42 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: kittyzzpurr1 (Nov 24, 2008 2:39 pm) Since you are shopping at a BHPH store, it is save to assume that your credit very bad. In that case I would just let the dealer repo the car and go to another BHPH place to get something else. Just make sure you don’t put anything down. Now, if you have more than 3K invested in the car, and you want to keep it, then you are SOL. BTW, if you are shopping at a BHPH place, why are you buying luxury car? If you are that destitute then get yourself something cheap and reliable that is cheap to maintain.
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Replying to: exb0 (Nov 25, 2008 5:47 am) Even with a car affordable to the ham-and-egger set, transmission work can be very expensive. I was pricing some new and near-new AT units for my vehicle, and the prices quoted didn't fall that much below the other poster's price (before installation costs, of course). Fortunately, nothing wrong was found with my transmission when I took it to the dealer for service. I'm glad to have found this thread. My brother wants to buy a Maxima within the next few months, and the auction places or local BHPH lots may be the only way he can buy such a vehicle. Please, if anyone has a story to share about your experience, post away! You never know who you're helping. |
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Replying to: carthell (Feb 24, 2009 11:20 am) It is true that many BHPH dealers have a reputation of selling junk type cars....many do. But this segment has shrunk over the years as subprime auto financing has gained more steam. With vehicle prices always rising and down payments available to customers staying static, the old days of buying a $1000 car and getting a $1000 down payment are, for the most part, gone. Industry studies have shown that the most profitable vehicle for a BHPH dealer is one that is withing the $3000-5000 range. This is enough vehicle to have a decent equity down payment from the customer and a quality enough vehicle for the customer to have minimal mechanical issues with. This results in more customers being able to pay the loan off. Most dealers do not wish for customers to default so that they can repo the car. True, this may be profitable for the dealer at that point, but a smart business person will realize that they have terminated what could have been multiple sales over many years to that customer and his/her referrals. Some BHPH dealers do not fit the typical mold at all. My dealership for example. We handle mostly 2-5 year old vehicles with an average sales price of around $12,000. Many of those vehicles still have factory warranty. We also have a 10,000 square foot Service Center that inspects and repairs any and all issues any vehicle has before being offered for sale. This along with a free 90 Day / 3000 mile warranty give customers reassurance that they are buying a quality vehicle. it is true that the interest rates that my store offers are higher than bank rates, but most often we are cheaper than what Subprime lending companies offer to new car dealership customers on their used car loans. My advice: Do your research. As with any purchase, price should not be the key factor. Don't believe me? Ask some of the customers of many of these new car stores who traded their vehicles in right before they went belly up and the dealership failed to pay off the trade prior to closing shop. First and foremost, ask around. Find companies that have a track record of stability and a good reputation of taking care of their customers throughout the sales process.....and after. In the end, you will be much happier with good service than you will by saving a few hundred dollars by price shopping. Many of my customers do not question my prices any longer. They know I will be fair and that they will be treated well....and that is more important. |
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Replying to: drake7171 (May 05, 2009 7:20 am) It sounds like you're doing something right!  tidester, host SUVs and Smart Shopper |
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Replying to: drake7171 (May 05, 2009 7:20 am) BHPH lots have clunkers with prices of 5-8k on cars which are actually 1-2k. And interest rates--well--24-26% U again,,are the minority here.The majority BHPH lots prey on poor credit. And their cars are in such a pathetic condition. It``s like---Beggars cant be choosy---Folks with poor credit have no option.Thats why they come to BHPH lots and are fleeced... |
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Replying to: drake7171 (May 05, 2009 7:20 am) Well, not really. Price is always a key factor in whatever a consumer buys. There is always a small chance a dealership, jewlery store, furniture store will go belly up. Sure, look at stability, reputation and service... but none of that means anything if you don't have enough customers because you are charging too much.
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Replying to: jipster (May 05, 2009 1:20 pm) We wholesale a lot of cars to guys who operate small lots. Most of these guys have been in business for a long time. The cars they buy from us usually aren't "bad" cars. Just cars we don't want. I took in a nice looking and nice running 1996 Taurus Wagon a couple of weeks ago. I think it had around 100,000 miles. It's not the type of car we sell but I'll bet it'll make a nice transportation car for someone without a lot of money. BHPH lots vary in quality and ethics. For some people they are the only place they can buy anything. |
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Usually "your job is your credit". But I work for myself so I have no pay stubs from an employer. How much of a down payment do BHPH dealers need to finance me? 25% of the price? 50%? I am looking for a truck in the $3,000 - $4500 range and I have $1000 to put as a down payment. Any info would be appreciated.
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