Buy Here Pay Here.

In plain English

Buy here pay here (BHPH) is a type of dealership that sells the car and finances it in-house, so you pay the same business that sold you the vehicle instead of an outside bank or credit union. These lots market to buyers with poor or no credit, and approval is easy, but the cost is steep. Interest rates run very high, prices are often inflated, and payments may be due weekly or biweekly in person. Some BHPH cars come with a starter-interrupt or GPS device that can disable or locate the car if you fall behind. The car can be repossessed quickly after a missed payment.

01Why it matters

BHPH gets you approved fast when nothing else will, but the very high rates and quick repossession mean the same car often costs far more here, so it is worth checking a credit union first.

02The math, step by step

A BHPH lot sells a used car priced above its market value and finances it at a very high APR with weekly payments. If you miss one, the dealer may repossess within days. Before agreeing, your first constructive step is to ask a local credit union about a starter or second-chance auto loan, which usually carries a much lower rate. Repossession rules and timelines vary by state, so check your state DMV or attorney general for the protections where you live.

03What this is NOT

04Receipts

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