Buy Here Pay Here or Not?

Recently, I bought a vehicle from one of those “Buy Here-Pay Here” (B.H.P.H. Dealers. Dealers. The car cost me a total $3,200. About $1,800 was spent on transmission repairs, $450 to replace a fuel tank, and $700 for an upgraded computer. Total investment in car was about $7,200. It is still a 2002 car. Helpful resources!

Was this an absolute disaster? It’s not a complete failure in my opinion. Compare traditional financing to “B.H.P.H.” financing. It is possible that the dealer’s price would have been less, but the interest rate included in the “B.H.P.H.” The final price would be close to the same. Traditional dealers do not normally offer warranties for used cars over a certain year. The repairs were still needed, if all other things are equal. It would be more expensive to purchase an extended warranty. The only thing I regret is not doing enough research and buying an extended warranty. When I purchased the vehicle, it was within range for one of these extended warranties.

The dealer was honest and upfront with me about the costs of the repairs when the mechanical issues began. He knew what I meant and I explained that I understand the situation of “as is” no warranty. I just wanted to let him know my frustration. It seemed that my non-confrontational attitude helped build the relationship between me and the company. When you crunch all the numbers, it may not be that different between buying a used car from a “buy-here pay-here dealer” or comparing to’mainstream dealers. It’s the reliability of the dealer that makes the difference, whether “B.H.P.H.” Traditional or “B.H.P.H.”

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