At Max Auto Sales, located in Warren, MI, we have a passion for vehicles. We also have a passion for helping customers. Put those two things together and you get the most satisfying, hassle-free car buying experience you've ever had. We pride ourselves on stocking an impressive inventory lineup of quality used cars, trucks, and SUVs that is sure to meet your needs. Service, reliability, and quality, that's Max Auto Sales! We also offer buy here pay here program and financing!
If you need help with any aspect of the buying process, please don't hesitate to ask us. Our customer service representatives will be happy to assist you in any way. Whether through email, phone or in person, we're here to help you get the customer service you deserve.
In simple terms, buy here pay here car lots are a kind of dealership that handles the sale and financing of cars for customers through in-house resources. This is in contrast to the many other dealerships that rely on third-party funding. BHPH dealers first emerged in the 1970s in the wake of the savings and loan crisis as more people struggled to get credit. It was a forerunner to the financial crisis of 2008.
With many potential customers dropping out of contention as outside finance companies refused to support their purchases, car dealerships lost business. This gave rise to the so-called buy here pay here (BHPH) car lots, where customers with poor credit could get an in-house loan approved by the dealerships. But how could this work Can a car dealership afford to run its business this way
Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.
When looking for a used car dealer in the Grand Rapids area, look no further than Betten Baker. Our Used Car SuperCenter in MUSKEGON has the used car or truck that's perfect for you and your budget. You'll also get the best trade-in offer here for your current used car, so why shop anywhere else When you need a used car in Grand Rapids, come to Betten Baker in MUSKEGON!
The content on this page provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.
Repossession is a last-ditch effort on behalf of the creditor, but you still do have rights and it may be possible to have your vehicle returned. In many states, your property inside of the vehicle like personal computers, phones, or important paperwork must be returned undamaged upon request. There may have been issues with the repossession process like having a repossession happen after the statute of limitations or the car sold for an absurdly low amount of money. Since laws can vary greatly on location and situation it is best to contact a lawyer for legal guidance.
If your previous car got repossessed you can still purchase a car at a buy here pay here dealership. BHPH dealers do not worry about credit, rather, they want to make sure you live in the same state and earn enough income to make the payments.
The number 1 way to avoid buy here pay here repossession is by making on-time payments. However, no one is perfect and sometimes people fall behind on bills. If you buy here pay here car is at risk of repossession, here are a couple of things you can do:
Do you want to start a buy here pay here car lot business If YES, here is a guide on how to start a buy here pay here car lot with no money and no experience. The Buy Here Pay Here market has continued to grow because of the role it plays in the society. According to already carried out research, 9.18% of all vehicle financing in 2010, and 14.38% of used vehicle financing were done by BHPH dealers.
Subsequently, those numbers grew to 9.8% of all vehicles and 16.62% of used vehicles financed. As the economy continues to struggle, this growth trend continued in 2012 and beyond. Growth in this market has increased the number of entrepreneurs looking into the by here pay here market. In fact, most of these intending entrepreneurs are franchise dealers looking to add a BHPH operation to their existing business. This list of interested dealers also includes independent retail dealerships looking to expand the financing options they offer their customers.
Buy here pay here (BHPH) car lots work differently from traditional dealerships because the dealers at BHPH lots are the lenders. BHPH lots often get a bad reputation based on some outdated notions on their mode of operation, but they can also be a welcome option for people who struggle with bad credit and may not be offered a car loan.
For a lot of people, especially low income earners, credit issues might make it difficult to purchase a vehicle. These people may consider shopping at a buy here, pay here lot since the requirements are typically less strict when it comes to approving customers for credit. Starting a buy here, pay here dealership can be a lucrative business, since your target market will be consumers who expect to pay higher interest rates.
You must commit the time and resources to learn about the BHPH business. There are numerous resources available including our own DCF Consulting Group. Commit to learning all you can, training your employees on proper operations and best practices and hire the right people to help you, if necessary.
BHPH businesses require huge capital investments, so you need to make sure that you are ready for this. Various models of the Buy Here Pay Here business using vehicles with costs ranging anywhere from $1,000 to $15,000 have been successful in this business. The business model you decide to adopt as far as vehicle cost will determine the amount of capital you need.
It is likely that, whatever town or city you live in, there are people who need BHPH financing. Your market research must determine whether that market is large enough to sustain your operation. You must also consider how easy it is for those potential customers to get to your dealership.
Another important thing to consider when starting your BHPH business is your car lot. When choosing a property for your buy here, pay here lot, check with your local or county government to determine what zoning laws or permits are required. Consider hiring a real estate agent to assist you with locating a commercial property for your car lot.
Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.
Cars on buy-here, pay-here lots tend to be older, low-value vehicles. The average cost for a car on a buy-here, pay-here lot in 2018 was $7,004, and the average down payment was $950, according to a 2019 industry report from the National Independent Automobile Dealers Association.
Buy-here, pay-here dealers may also hit you with other fees. These high costs can result in financial trouble: More than one in three borrowers defaulted on buy-here, pay-here loans in 2019, according to a 2019 report by the National Independent Automobile Dealers Association and the National Alliance of Buy Here, Pay Here Dealers.
Dealers want to be sure they can easily repossess the car if you stop making your payments. About 45% of buy-here, pay-here dealers install devices that track the car or can prevent it from starting, helping the dealer recover the vehicle if you default on the loan. Giving up a measure of your privacy may be a nonstarter for you.
Before you head to a buy-here, pay-here lot, check your credit and consider applying for preapproval from a few lenders who consider people with bad credit. This could help you compare interest rates and loan terms across lenders and find the best deal for you on a car loan.
John started his car lot here 15 years ago with just a few cars and a small lot. The business was steady, and with hard work and dedication, he grew the company into a trusted local auto dealer. Repeat customers and referrals were paramount for this growth, and realizing this, John resolved to make customer satisfaction a priority for his dealership.
Soon enough, people were coming from all over the area to purchase their vehicles from John, seeing him as a dependable auto dealer and a place where people could find a quality pick up truck for work, car for commuting, or SUV for bringing the family on a road trip. A few short years later, John purchased the adjacent lot, as he needed more room to accommodate his growing inventory and customer base.
Helping those with bad or no credit became a significant part of the business. With financing options such as buy here pay here and providing auto loan quotes, it took off as a calling point of the local auto dealer. The addition of BuckMont Finance helped continue the success of the buy here pay here program.
We want to provide you with the best automotive experience possible. From researching the vehicle you want to test driving your options, we're here to help with our knowledgeable sales staff and an impressive selection of cars, trucks, and SUVs. Let us help you find the perfect vehicle! 59ce067264