Oct 3rd, 2007 by jbrown
Autotrader.com has five questions they suggest for you to ask a, what they call, BHPH (Buy Here Pay Here) dealer. I found these pretty helpful to read through before you begin the strenuous process of dealing with a BHPH dealer and all that you should know to ask:
1. What do I need to bring when I visit your dealership?
Bringing the correct documents to a BHPH dealership can dramatically speed up your purchase process. Although the list of items can differ depending on your unique credit situation and each dealer, we interviewed BHPH dealers around the country and here is what they suggested you take:
- Driver’s License
- Proof of Auto Insurance
- Financial Info (bank and credit card account info to fill out credit application)
- Social Security Number
- References (with complete contact info)
- Proof of Employment and Salary (paycheck stubs, with one less than 30 days old)
- Proof of Residence (mortgage document or rental lease agreement)
- Current Phone Bill (or other utility bill such as gas, electric or water)
- Down Payment
To find out exactly what to bring, call the dealership before you visit. They’ll help you pull together everything you need.
2. How do you accept payment?
Instead of making monthly payments to a traditional lender, you make weekly or bi-weekly payments at a BHPH dealership. Many BHPH dealers require you to physically bring cash to their location, but some are expanding the ways they’ll accept payment. Ask if they take payment by phone or online. Some dealers will require an automatic withdrawal if you currently have a checking account, savings account or credit card. Other dealers offer the option of paying through money orders. Explore a variety of payment methods with your dealer to find one that best fits your financial situation.
3. What is your late payment policy?
No one ever intends to make a late payment on a car loan, but sometimes it happens. It’s critical to understand the dealership’s late payment policy. Will they repossess the car the day after you fail to make a payment or is there a grace period? Will they contact you or simply take the car back with no questions asked? More than likely, this will never be an issue, but it’s good to know what to expect if an emergency temporarily delays your payment. You might also ask if the dealership regularly reports both positive and negative payment information to the credit reporting agencies. If you have a good payment record and the dealer reports this information, this can help you start or rebuild a credit history if that is important to you.
4. Where are you located?
If you’re already at the dealership then this question is an easy one to answer, but when selecting from a list of BHPH establishments, location is important. Pick one close to where you live or work so that it’s convenient to come in to make your payment. What’s more, BHPH dealers prefer to work with customers who live close to the dealership so that it’s simple to geographically maintain the financial agreement. Thus, finding a dealership nearby may make it even easier to get the car loan you need.
5. What value do you place on providing quality vehicles?
Bad credit shouldn’t prevent you from getting a good vehicle. In fact, many BHPH dealers are extremely focused on offering reliable vehicles. They understand that to ensure your faithfulness to the payment plan, they need to offer you a dependable vehicle. Ask dealerships about the inspection standards or reconditioning processes they use to prepare vehicles for purchase. See if they offer maintenance and repairs onsite, or if they have a partner provider that does. A reliable vehicle serves the interests of both parties, and a dealer should be happy to provide you with this information.