What Makes a Buy Here Pay Here Car?


For the sake of clarity. From this point on we will refer to “Buy Here Pay Here” as BHPH. Used car shoppers here in Louisville are pretty much like the rest of the general public when it comes to the questions about buy here pay here cars.

Technically any used car or truck can be bought with BHPH financing, if the dealer that owns it does BHPH loans at their dealership.

On the other hand the majority of BHPH cars become BHPH cars due to one of three technicalities that would keep a creditor such as a bank or other type of financial institution from lending money on them. Let’s review them below.

1) Over Miles:

When a cars is considered over miled by a lender, it simply means that particular lender has an in house policy stating that they do not make loans on vehicles that are beyond a certain mileage threshold. It might 150,000 miles, or it might be 200,000 miles. All lending institutions have triggers in place that will decline a potential client a loan due to the amount of miles on the vehicle they’re trying to buy.

In effect if no lender will loan on the vehicle, it finds it’s way to the scrap yard, a private seller and buyer, or to a BHPH car lot that specializes in BHPH lending.

2) To Old or Antiquated

All financial institutions that make vehicle loans on used cars and trucks have triggers in place that auto decline requests that are for vehicles over a certain age. It also depends on the make and model of a car too.

Just like in the case of over mileage, the vehicle, finds it’s way to the scrap yard, a private seller and buyer, or to a BHPH car lot that specializes in BHPH lending.

3) Salvage and Rebuilt Title:

When a car has a salvage or rebuilt title, no lending institution that we’re aware of will lend money on it.

That a car has a salvage or rebuilt title doesn’t mean that it’s not a good vehicle or lacks the potential to go several more years and miles with a standard amount of maintenance. As long as a mechanic looks it over and gives you the all is good go ahead. Salvage and rebuilt cars can still be great investments.

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