While BHPH dealers may not do a hard credit check, they cater to "Deep Subprime" borrowers (scores 300–500), where double-digit rates are standard.
Can top 25% to 30% depending on the state and dealership.
High APRs can lead to "negative equity," where you owe thousands more than the car is worth as it depreciates. buy here pay here apr
A larger down payment can sometimes help secure a more competitive rate by reducing the dealer's risk.
Not all BHPH dealers report positive payments to credit bureaus, meaning you might not actually improve your credit score despite paying the high interest. While BHPH dealers may not do a hard
Many BHPH loans require weekly or bi-weekly payments rather than monthly installments.
For context, the average used car APR for prime borrowers is around 9.4% , while deep subprime borrowers (who often use BHPH) average 21.6% . Key Factors Influencing Your Rate A larger down payment can sometimes help secure
Dealers prioritize your current income and job/residency stability over your past credit score when setting terms. Critical Considerations