Questions about how to get in-house financing at a Buy Here Pay Here dealer is a frequently asked prospective buyer question.
Shabana Motors has helped thousands of Houston area customers get approved for in-house financing.
Start with our simple in-house financing application. Then, consider at least five questions you should ask the BHPH dealer before signing the purchase agreement in Part 2 of our in-house financing information series.
How Do I Get In-House Financing at a BHPH Dealer?
Plan ahead, but realize that not all BHPH dealers are created equally.
Ask the dealer about whether it offers in-house financing before you go to the dealer’s lot.
Although it makes good financial sense to arrange in-house financing before you select a used vehicle, it’s perfectly fine to check out the dealer’s inventory before you decide to fill out the in-house financing application.
Take the time to ask questions of the BHPH dealer or its representative. Write down any questions you’d like answered before you go shopping. If you forget to ask an important question during the visit, call the dealer or its representative as soon as possible to get the information you need to make an informed decision.
What Should I Bring When I Visit the Used Car Dealer?
Having the right documents on hand when you visit a BHPH used car dealer will speed up the purchase process.
Although your dealer may request additional information in your specific financial situation, many BHPH dealers recommend that you gather:
- Your valid driver’s license
- Proof of vehicle insurance
- Financial information (e.g. your bank account details)
- Social Security Number (SSN)
- References (along with contact information)
- Proof of salary and employment (e.g. paycheck stubs, within 30 days)
- Proof of residence (e.g. your rental or lease agreement or mortgage loan document)
- Phone or other utility bill (e.g. cable, electric, water, or gas bill)
- Down payment.
Contact the dealer prior to your visit to ask about what they require. The dealer’s representative will help you fully prepare for the visit.
How Does the Used Car Dealer Accept Payment?
Instead of a traditional lender’s monthly payment, the BHPH customer makes a weekly or a bi-weekly payment at the dealer.
Some dealers demand the customer to make payments in cash at their location, but others have entered the modern technology age:
- The BHPH dealer may accept online or phone payments.
- Others offer the convenience of automatic debits from your savings, checking, or credit card account.
- Some BHPH allow the customer to pay by money order.
Ask the dealer about the payment methods it accepts and choose the option that works best for you. If you know that bringing cash payments in person to the dealer will cramp your style, don’t purchase a used car from that BHPH dealer.
What’s the BHPH Dealer’s Late Payment Policy?
Few people ever plan to make a late payment, but sometimes life happens. Ask how the dealer handles late payments. For instance:
- Will the dealer repossess the vehicle on the day after your payment method fails?
- Is there a grace period? What is it?
- Will the dealer’s in-house financing representatives call you, or will it take the vehicle back?
It is always wise to understand the dealer’s late payment policy beforehand. You should know what to expect if an urgent emergency in the future temporarily delays a used car loan payment.
Does the BHPH Accept Trade-Ins?
If you own a vehicle and want to trade it in, ask the dealer about its vehicle purchase or trade-in policy.
Your trade-in value can decrease the down payment amount or, even better, decrease the in-house financing used car loan amount. Decreasing the amount of your loan will save you money over the life of the loan as well.
Estimate the monthly cost of your used car in-house financing by inputting the following details into an auto loan calculator:
- Used car loan term (number of months, e.g. 24, 36, 48, 60, 72, etc.)
- Used car loan interest rate percentage
- Used car price
- Sales tax rate
- Down payment
- Trade-in value, if applicable
What’s the Dealer’s Commitment to Providing You with a Quality Used Car?
Your BHPH dealer offers in-house financing because the business is committed to offering you a reliable vehicle.
The dealer knows that, to ensure your commitment to making payments as agreed, it must offer you a reliable, dependable car, truck, or SUV.
It’s just good business sense for the dealer to provide you with a quality used car.
With this in mind:
- Ask the BHPH dealer about its recondition process and/or inspection standards.
- Ask if the dealer offers repairs and maintenance services onsite, or if it recommends a separate partner-provider?
- Remember—the quality of your vehicle mutually serves you and the BHPH dealer. A reputable BHPH business should be happy to answer your questions.
Explore Our Fine Used Car Inventory
After your dealer answers your questions about in-house financing, consider submitting an application.
It may be the best path to owning a reliable vehicle. For most people, a reliable car is an absolute necessity.
If your credit scores need improvement and you don’t qualify for a traditional used car loan, Shabana Motors can help you to get approved for a used car loan and to rebuild your financial future.
We’ve got you covered. Check out our inventory here.
