Category Archives: BHPH News

What is BHPH?

What is BHPH?

Buy Here Pay Here (BHPH) refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles.[1] Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates.[1] BHPH can provide options for those unable to meet credit standards elsewhere.

In house lending is a type of seller financing in which a company or brokerwill help a customer obtain a loan at their place of business to purchase any product or services. When using in-house lending one does not have to rely on 3rd party company or business to complete the transaction.[1]

Consumers can typically apply for in-house loans by visiting the business which is typically a brick and mortar. One can ask for special financing with the sales representative and they will usually direct him to see their lending specialist. There are some in-house lenders that are able to originate the transaction on-line for on-line buy here pay here dealerships and websites. At times it can be a challenge to discover who is actually using in-house lending or if they are using a bank, credit unionon the back end to finance the transaction.

“CFPB orders ‘buy-here, pay-here’ auto dealer DriveTime to pay $8M penalty for unfair debt collection practices”.

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DriveTime Automotive Group Inc. is an American used car retailer andfinance company. It is based in Tempe, Arizona, and sells, leases and financescars to customers with credit issues. The company was formerly known as Ugly Duckling and was renamed DriveTime in 2002. It also spun offCarvana and GO Financial, SilverRock Group Inc, and Bridgecrest Acceptance Corporation. As of 2015, DriveTime had approximately 130 locations in the U.S. and 3,800 employeesDriveTime

Car dealerships in North America

loans directly to consumers. In the business such dealers are called “Buy Here Pay Here” dealerships. These stores are able to make loans directly to customers

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Sell my bulk auto notes

For some, buy-here, pay-here makes sense

Gary Tillery wants every customer who walks into his J.D. Byrider used-vehicle lot in Albuquerque, N.M., to drive off in a vehicle they will pay for and like. So his employees, called underwriters, interview all customers and assess their ability to repay vehicle loans. The employees also try to determine how much customers can pay and their willingness to pay. That’s important because as a Byrider buy-here, pay-here franchisee Tillery funds his customers’ loans himself through his own finance arm. The finance arm uses software and practices supplied by CarNow Acceptance Co., a division of Byrider Franchising. Loan structure, management and collection are crucial for success, he says. Read the rest here

FTC Announces $4 million Action Against Debt Collector Over Convenience Fees

FTC Announces $4 million Action Against Debt Collector Over Convenience Fees

A Houston debt collection agency has agreed to a federal court order in a case initiated by the FTC that will see the company pay a penalty and stop certain practices pertaining to its use of convenience fees. At issue were misleading talk-offs with consumers leading them to believe the fees were mandatory.

 

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What Is Buy Here Pay Here Anyway

BHPHThese are all terms used by car dealerships that carry their own notes, and finance their own cars.
What is “Buy Here Pay Here?”
“Buy Here Pay Here” is a phrase used when a customer purchases and finances a vehicle through an auto dealership. No credit history is generally required when you get a buy here pay here auto loan.
The loan is provided directly from the car dealer lot. Your credit history does not matter as long as you have an income and a down payment.
Unlike traditional lending sources, a Buy Here Pay Here car loan is likely not to show up on your credit report.

Often, dealers set-up weekly payment schedules which are made directly to the dealer at the Buy Here Pay Here car lot. But they will usually set up a payment term that goes along with your payday.

to read more about BHPH visit the WIKI here

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