Buy Here Pay Here Financing

Buy Here Pay Here Financing means that you set up your loan and pay for the loan at the dealership. A traditional car loan is processed through a third party, such as a bank, but buy here pay here financing processes the car purchase through the dealership. You purchase your car through the dealership and the loan is run by the dealership.

Buy here pay here financing requires its participants to make weekly or bi-weekly payments to the dealership in contrast to a traditional loan where you make monthly payments to the third party lender. You literally buy the car at the dealership and pay for the car at the dealership. If you default on your loan then the dealership will take your car back much faster than a traditional lender.

The process for buy here pay here financing is much different than a traditional car buying process. The buy here pay here process begins with the financial conversation. Before you look at cars with a salesman, they will ask you questions about your credit and pull up your credit report. Once they get a feel for your financial situation, they will determine your monthly payment range and down payment ability and then show you cars that fit your financial situation.