Buy Here Pay Here Alternative
Oxmoor Mazda – Louisville’s Buy Here Pay Here Alternative
If you’ve been searching Louisville, Kentucky for Buy Here Pay Here car dealerships because of unfortunate setbacks in your past, you’ve come to the right place. Oxmoor Mazda is Kentuckian’s premier dealership for car buyers with bad credit looking for a Buy Here Pay Here alternative.
Auto financing with poor credit scores is our dealership’s specialty. We’ve helped thousands of local car buyers achieve special financing when other auto lenders have turned them down! Why endure the hassle and stress of dealing with an auto company that demands too much from you and gives you too little in return?
Our experienced team of knowledgeable subprime auto financing consultants can help potential buyers understand their auto loan options and determine whether Buy Here Pay Here financing is right for them.
What is a Buy Here Pay Here Dealership?
If you live near Louisville, Kentucky and have done research on bad credit car loans, you probably have run across the term “Buy Here Pay Here” at some point.
Many of our customers tell us that while they have heard the term, they have questions about what it means and whether their weak credit scores will force them to explore this option.
This guide was created to help potential auto buyers in the Louisville, KY metro area understand what constitutes poor credit and when it may be necessary to visit a Buy Here Pay Here dealership.
A “Buy Here Pay Here dealership” is a term used to describe a business that sells automobiles and allows buyers to make their payments at the dealership, rather than a banking institution or auto finance company.
Unfortunately, there is no set standard when it comes to Buy Here Pay Here dealers and subprime auto lending. It can sometimes vary state to state, even region to region. The quality of the vehicles, the auto financing terms, the abilities of the finance department staff, and the dealership’s overall reputation can vary widely.
As a result, it can sometimes be difficult to discern who to trust and what is reasonable to expect in terms of financing.
Buy Here Pay Here Dealerships – How They Work
As outlined previously, Buy Here Pay Here dealerships in the Louisville area work on a very simple premise: they sell vehicles and finance individuals who cannot achieve financing through traditional auto lenders.
Some BHPH dealerships prefer to deal in older, less expensive vehicles. The reason for this is two-fold. Less investment from the dealership means potentially higher long term profits. In addition, less expensive vehicles allow a dealership to acquire more merchandise. This often translates to a wider variety of vehicles at potentially lower prices.
While some self financed dealerships in the Louisville area do deal in higher quality vehicles, they are often the exception rather than the rule.
When it comes to financing, Buy Here Pay Here dealerships occupy a unique space within the bad credit auto financing market. While they are the acting as the seller of the vehicle, they are also acting as the lender.
BHPH dealerships dictate the terms of the money they lend. Because of this, they can sometimes offer greater flexibility than regular finance companies. In many instances, however, the financing terms offered by BHPH dealerships will be significantly more expensive than traditional auto financiers.
Louisville BHPH Dealerships – Paying More For Other People’s Mistakes
While BHPH dealerships do provide customers with financing, they still operate under the same general rules that govern traditional lending institutions. If you’ve read some of Oxmoor Mazda’s helpful information pages such as Subprime Auto Financing – Know Your Options or Bad Credit Auto Financing – Myths and Facts , you know that the more risk a lender assumes, the more expensive financing terms become.
Because BHPH dealerships in the Louisville, KY area specialize in bad credit auto financing, they fully understand the risk inherent with financing low credit auto buyers: a higher percentage of their borrowers will be late with their payments or even default on their loans.
Late payments can seriously affect a dealership’s ability to conduct business. Reduced income often translates into less money to lend to potential buyers. Fewer customers further restricts a dealership’s income.
In addition to less revenue, loan defaults (AKA non-payment) can lead to vehicle repossession. Dealerships must pay a company to locate the vehicle and return it to the dealership. Once a vehicle has been repossessed, it almost always needs reconditioning (cleaning and repairs) before it can be resold.
The type of reconditioning required can range from simple interior detailing to extensive mechanical repairs. All of these procedures cost a Buy Here Pay Here dealership significant amounts of money.
BHPH dealerships go into every deal prepared for the worst possible contingency. To protect against any potential future losses, they often require larger down payments, higher rates of interest, and shorter repayment terms from all of their customers.
Oxmoor Mazda is the #1 Buy Here Pay Here Alternative in Kentuckiana!
When we speak with customers searching for bad credit auto financing, the vast majority say they sought out BHPH dealerships because they eventually gave up.
After being turned down at multiple banks, finance companies, and auto dealerships, many people believe they cannot be helped. More importantly, they stop trying to achieve traditional financing and assume that their situation is hopeless.
Some people turn to Buy Here Pay Here dealers out of sheer desperation. This desperation soon turns to despair if they are forced to accept a vehicle that does not meet their needs – especially if the financing terms require an enormous down payment or unreasonable repayment terms.
Oxmoor Mazda is a local leader in bad credit auto financing in Louisville for a reason: we offer both new inventory and used inventory, require the lowest down payments, and provide the most reasonable subprime financing terms in the state of Kentucky.
Unlike most BHPH dealerships, our special finance specialists take exceptional care to match each buyer with the vehicle that best suits their individual needs. In many cases, down payments and loan terms can be specifically tailored to the customer. Whether you’re interested in buying or leasing or simply want to value your trade, Oxmoor Mazda’s special financing department can help you understand your options.
Speak with an Oxmoor Mazda Special Finance Specialist Now!