Many people don’t realize the Buy Here Pay Here Car dealerships exist until they are in need. This article aims at educating the reader about the BHPH automobile lot and dealer and what they offer over the traditional auto dealer. Here’s a peek inside the BHPH company model. How do they sell, finance, acquire, secure and secure automobiles?
This background will help you understand the Buy-Here, Pay-Here vehicle dealer’s primary purpose. They sell and finance vehicles to those with bad credit that are unable to purchase or finance vehicles through traditional dealers or lenders. They do this by selling pre-owned vehicles and financing them through the selling dealer. They don’t use any banks, finance companies, or third-party lender. Their customers purchase the car and make weekly payments at the exact same place. This is why they call it Buy Here Pay Here.
Creating a Buy Here Pay Here Car Dealership
Some BHPH cars dealerships can be found in small corners. These businesses can set up shop in an old gas station, an auto repair facility or a gas station. As long as they have an address, a few bays where they can work on vehicles or prepare them for sale, and an area to display the cars that they have for sale, they are allowed. A Buy Here Pay Here department is also available to customers that aren’t eligible for auto loans from traditional lenders. As you can see, BHPH dealer can come in all shapes.
Stock for the BHPH Auto Dealership
Small- and medium-sized BHPH car dealers will always be on the lookout to buy vehicles to put on their lots. They attend auctions to purchase cars and they also buy vehicles from private sellers. They are extremely picky about the cars that they purchase because they must pay cash. Additionally, they require dozens of cars to stock up and offer customers a great selection.
A Buy Here Pay Here Department is where new car dealers sell quality trade-ins. It is beneficial to sell trades with internal financing. They have a steady supply of vehicles to choose from and can avoid purchasing cars at the auction.