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”.
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