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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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| they want to see your smiling face, and hopefully the car, every week, so they know you haven't skipped town. | |
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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? |
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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. |
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Replying to: kirstie_h (Jan 03, 2005 12:53 pm) 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 
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Replying to: rroyce10 (Jan 04, 2005 3:47 am) |
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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 |
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"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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there is a small, family owned lot in my area that has been there a long time (I used to live around the corner). Dad buys the cars, mom runs the lot type of place. Anyway, very respectable, good reputation. All nice cars, generally 5-8 years old IIRC (lots of '98 Camrys, Grand Ams, Buick, that type of thing). All clean, normal mileage cars, most of which come from local new car dealers. They all get a good going over by the mechanic. Anyway, basic transportation, and if I needed this type of car wouldn't hesitate to go there. point of the story is that they offer some (or most) as either straight purchases, or BHPH ($500 - $1500 down usually, then $50/week). They quote both ways, and the prices from what I can tell seem to be decent. But, I don't get any sense that they are into any "predatory" lending practices. Rather, it is a way for them to move cars to their target audience. Plus, by getting a decent % down, they have some of their exposure covered, but you don't see the same cars constantly being recycled on the lot. IMO, BHPH is capitalism at it's best. A need exists, it gets filled. |
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If these guys can scrape up $500-$1500 for a downpayment, why can't they buy a car the old-fashioned way? Most guys I know that would have to buy a car on a payday payment plan, don't have enough money to buy lunch on the day before payday... |
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Hot deals on Lincoln Blackwood's, Pontiac Azteks, and Chevy SSRs!!! See the man under the big tent!!!! See my exclamtion marks!!!!! The ex-car dealer that gave me the "Bad credit is expensive" quote said his gravel BHPH lot was super lucrative. Oddly enough, I met him while I was teaching in prison (long, strange tale). Crimes unrelated to profession. Turboshadow
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