Buy Here Pay Herecar lots popularly abbreviated as BHPH is often regarded as the last resort option for credit-strapped car buyers across the globe. Many-a-times, prospective car buyers find themselves unable to get access to the finances to offset their outstanding vehicle loans. It’s no secret that an overwhelming majority of loan seekers will have their requests turned down by their local banks, credit unions, and all potential traditional lenders. However, you should not get overly stressed if your credit score falls short of your local bank requirement since you can always rely on BHPH financing any given day.


BHPH loans trace their roots way back to the 70s banking scenario in the US. Back then, consumers struggled with ever-soaring lending rates and many folks were on the very precipice of going bankrupt. To save the ailing US automobile sector and to resuscitate the broader economy, the banking sector eased their staunch regulations and allowed borrowers with less-than-admirable credit scores to secure car loan finance deal.  The same finance and banking principles came into play in 2008 to save the shrinking US jobs market and the overall US economy.

How BHPH Loans Work

BHPH lenders are renowned for their consumer-friendly car finance loans. Their excellent car loan approval rates have turned them into the ultimate one-stop shop and hub for folks looking to purchase their ultimate dream car. As expected, the finance options offered by BHPH dealerships are a bit costly but not entirely out of reach. The interest rates for car finance loans by all ofthe dealerships are inflated as the loan is often considered to involve a high risk owing to the applicants’ poor credit score.

Here are the top three outstanding benefits of taking out a BHPH car finance loan:-

  • These loans offer a useful lifeline for prospective car owners having a poor credit score
  • Paying these auto finance loans works wonders towards repairing your awful credit score
  • BHPH loans are an excellent entry point for investors looking to cash in on defunct car loans

Limited Options

There’s only one slight issue with using BHPH car finance loans. These loans effectively rob the prospective car owner of the liberty to explore as many auto options as they would have wished. With BHPH loans, it’s the car dealers who get to determine the price range of a car you get from their used-car sale lots.

In conclusion

It’s prudent always to read and re-read the fine print as detailed in the BHPH finance loans. Failure to properly understand the loan agreement and policy is a certain prerequisite for untold woes moving forward. An enlightened borrower of the readily accessible albeit high-interest rate car financing options ought to carefully scrutinize what the policy says about defaulting and late payments to avoid regrets.