Many people don’t know about Buy Here, Pay Here Car Dealerships until they actually need them. This article aims to provide some insight into the BHPH vehicle lot and the differences between them and the regular automobile dealer. Let me take you through the BHPH model. I will show you how they sell, finance and acquire automobiles.
The primary goal of the Buy Here Pay-Here car dealer, is to sell and finance vehicles to people with bad credit who are unable or unable to finance and buy automobiles through traditional lenders and dealers. They sell used vehicles and finance them either in-house or through a dealer. They don’t use finance companies, banks or third-party lenders. They sell the car to their customers and collect the weekly payments.
Setting up the Buy Here-Pay Here Car Dealership
Some BHPH dealerships are small businesses in corners that have an office and a few bays for cars to be worked on. There is also an area where vehicles can be displayed. You will also find new car dealers that have set up a Buy Here-Pay Here division to serve customers who may not be eligible for a loan from their traditional lenders. You can see that BHPH dealers come in many sizes.
Inventory for BHPH Car Dealership
Small to medium-sized BHPH car dealers are always looking for vehicles to sell. They purchase vehicles from private parties, go to auctions and buy them from dealers who have traded in their cars. They have to be careful about which cars they buy as they will need cash to keep their cars stocked and to attract new customers.
Dealers that offer Buy Here Pay Here usually sell their quality trade-ins through their BHPH Division. They can sell their trades using in-house financing to have a reliable source of used cars and avoid having to buy cars at the auction.