Gs4 Security: Buy Here Pay Here

Wednesday 19 December 2012

Buy Here Pay Here

Car shoppers with bad credit know that buy-here-pay-here car dealers are an option for them to get approved for an auto loan, even though they would pay a very high interest rate.With the unemployment rate still at about 10 percent and the economy still on shaky ground, more consumers are turning to buy-here-pay-here lots to purchase a vehicle.ays that as sales of vehicles at buy-here-pay-here dealers continue to increase, the total could reach 2.37 million units in 2010.Why are shoppers increasingly CNW says that many BHPH sales are to consumers who might have qualified for a conventional auto loan three years ago when lenders weren't as conservative about who they would approve. But tighter credit requirements and a skittish banking industry sent marginal customers needing a vehicle to BHPH lots.CNW Research says that as credit loosens, buy-here-pay-here sales may decline somewhat, but will remain both significant and profitable. Franchised dealers earn about 32 percent profit and independent dealers make as much as 43 percent profit on BHPH sales.