Buy Here Pay Here Car Dealers Jackson Tn

If you are looking for an auto loan with bad credit or no credit you may feel like there is no hope. The good news is both Buy Here Pay Here (BHPH) auto dealers and Subprime lenders can help bowers with less than desirable credit.

What to Expect from Buy Here Pay Here (BHPH) Auto Dealers

• BHPH Auto dealers typically only finance used cars.
• BHPH Auto dealers do not require third party approvals the dealership is the lender.
• BHPH Auto dealers charge higher interest rates instead of running credit checks.
• BHPH Auto dealers do not typically run credit checks they may not report your activity either
• You may only need qualifying income and a down payment to qualify for an auto loan
• You may be asked to pay a larger down payment than with a subprime lender, sometimes around 20% of the car's selling price.

What to Expect from Subprime lenders

• Subprime lenders may finance new, used, or certified pre-owned vehicles, depending on your situation and dealership inventory.
• Subprime lenders are indirect lenders.
• Typically higher than average interest rate since they're somewhat based on credit score. The lower your credit score, the higher the rate usually is. However, the rates with subprime lenders tend to be lower than at a BHPH auto dealership.
• Several documents are required for a car loan approval with a subprime lender. These typically include proof of income and proof of residence, among other things.
• Subprime lenders usually require you to make a down payment of at least $1,000 or 10% of the vehicle's selling price.
• Subprime lenders check your credit reports and scores.
• Loan activity is reported to all the major credit bureaus

Understanding the differences between a BHPH auto dealer and a Subprime lender can help consumers with less than desirable credit scores choose the right path based on their unique situation.

CarPay helps buy here pay here BHPH auto dealers become more profitable. The CarPay loan management software provides the auto dealers' borrowers with easier ways to pay, and automatically keeps customers up-to-date (via text/email) with their car loan, the dealer saves time and sees an immediate reduction in delinquencies.

CarPay enables customers to:

• Make easy online and mobile payments
• Enable autopay
• View detailed receipts
• Check balances online
• Update payment methods
• Receive Email and Text Reminders
• Carpay is integrated with the dealers DMS, so any time you update your DMS, you'll automatically update your customer's Carpay account. Any payment that comes through Carpay automatically gets sent to your DMS.

My name is Douglas and if you enjoyed reading this article follow me to have my content delivered directly to your LinkedIn feed. At CarPay I provide Buy Here Pay Here auto dealers with automated payment systems and management tools to help them manage BHPH loan portfolios making it easier for customers to pay saving valuable time and reducing customer delinquencies rates.

Our average dealer typically sees a 20% reduction in delinquencies and captures an additional $44,000 in revenue per year once they activate CarPay. If you own a used car lot and would like to learn how CarPay can help turn your Buy Here Pay Here dealership into a first class bank contact me directly at 702-780-1149 or email me at: douglas@carpay.com to take a look under the hood and schedule a live software demo today.

Buy Here Pay Here Car Dealers Jackson Tn

Source: https://www.linkedin.com/pulse/key-differences-between-buy-here-pay-auto-dealers-how-krystosek

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