What Is Buy Here Pay Here (BHPH)?

Buy here pay here (BHPH) is a used-car sales model in which the dealership finances the purchase in-house and collects the payments itself, instead of sending the buyer to a bank or credit union.

How buy here pay here works

The buyer applies, buys and pays all at the same dealership. Because the dealer is also the lender, approval is possible for people with thin or damaged credit — and the dealer, not a bank, carries the loan until it is paid off.

Why dealers use GPS and starter interrupt

Carrying the note means carrying the risk, so BHPH dealers commonly install a GPS tracker and starter interrupt to protect and recover collateral. See BHPH GPS tracking.

BHPH vs LHPH

In BHPH the dealer sells and finances the car; in lease here pay here (LHPH) the dealer leases it and keeps the title. Both carry in-house risk.

Frequently asked questions

What does BHPH stand for?

Buy here pay here — the dealer both sells and finances the vehicle.

How is BHPH different from a bank loan?

The dealership is the lender, so it approves the loan and collects payments itself, and it carries the risk until payoff.

Why do BHPH dealers use GPS trackers?

To protect and recover the collateral they finance in-house. See BHPH GPS tracking.