Buy Here Pay Here Definition | 2026 Edition |

: These dealers focus on "subprime" borrowers with poor or no credit history who have been denied by traditional institutions.

: As of recent market research, there are roughly 33,000 such lots in the U.S., compared to 22,000 new car dealerships. buy here pay here definition

: According to Autotrader , BHPH dealers are highly motivated because they earn profit twice: first on the sale price markup and second on the loan interest. What Is Buy Here, Pay Here Auto Financing? - Experian : These dealers focus on "subprime" borrowers with

Academic and economic reviews, such as those featured on Investopedia and Governing , identify several defining traits of this model: What Is Buy Here, Pay Here Auto Financing

A dealership is a type of used-car seller that acts as both the retailer and the lender, providing in-house financing directly to consumers . Unlike traditional dealerships that send loan applications to third-party banks or credit unions, a BHPH dealer uses its own money to underwrite the loan, meaning the buyer makes payments directly to the car lot. Technical and Legal Definition

: While traditional loans are typically monthly, BHPH loans often require weekly or bi-weekly payments that match the customer's payday.