Buy Here Pay Here Myths

Posted Thursday, May 23, 2024

Traditional car dealerships generally require a minimum credit score for vehicle financing, and if your credit score doesn't meet their criteria, they won't entertain you. Once you have a credit score that meets their standards, you need to make a down payment of $1000-$1500.

This can limit the options for individuals with poor credit, often leaving them with few alternatives including buy here pay here dealerships.

Despite all the advantages these dealerships offer, there are many buy here pay here myths and misconceptions surrounding them, and these dealerships often have a negative reputation for charging high interest rates and repossessing vehicles just so they can sell them again.

There is a common perception that all buy here pay here dealerships are terrible. Honest Autos knows the difficulty of trusting a new organization when you have been treated wrongly by others in the same industry, but we want our customers to understand that the negative reputation associated with buy here pay here often comes from isolated incidents at other dealerships.

Here are the top 5 buy here pay here myths we've encountered as a dealership offering financing options and why it's important not to believe them.

Top Myths About Buy Here Pay Here Dealerships

Let's take a look at some of the top myths about Buy Here Pay Here dealerships:

Myth #1: Buy Here Pay Here Dealerships Are Predatory

While it is true that some BHPH dealerships have engaged in questionable practices in the past, not all BHPH dealerships operate in the same way.

There are only a few dealers who engage in a practice called "churning," where they repossess cars and quickly resell them multiple times. This is often mentioned as one of the main reasons why strict regulations were necessary for Buy Here Pay Here (BHPH) dealerships. However, this practice is not very common, and even the most extreme offenders would struggle to resell the same vehicle five times within a year.

A reliable Buy Here Pay Here dealership will try to assist every customer in successfully completing their loan terms. These dealerships understand that it is more beneficial to collaborate with a customer who is making an effort and willing to cooperate rather than repossession too quickly. While it may not occur in every deal, repossession should be considered a last resort rather than the first action by a dealer when dealing with a customer who is behind on payments.

Myth #2: Buy Here Pay Here Cars Are Low Quality

There is a common misconception that BHPH car dealerships exclusively sell low-quality vehicles. However, this is far from the truth.

Buy Here Pay Here dealerships, just like any other business in the community, try to ensure that customers have a positive experience with both their services and the products they offer. Their goal is to create a satisfying experience that encourages customers to return for future purchases, share positive reviews, and recommend them to their friends and family. BHPH dealerships, such as Honest Autos, provide customers with quality vehicles at affordable prices for a wide range of budgets. At Honest Autos, we offer a complimentary Auto Check vehicle history report, allowing our customers to make informed decisions and feel confident in their vehicle investment.

Many people visit our dealership with the belief that they can only afford the least appealing older cars, but they are pleasantly surprised to discover that our financing options may allow them to purchase something nicer.

Myth #3: Buy Here Pay Here Interest Rates Are Exorbitant

Many people believe that interest rates at Buy Here Pay Here (BHPH) dealerships are excessively high. However, most states have established limits on interest rates, typically ranging from 7% to 30%, and are designed to prevent consumers from being taken advantage of. BHPH dealerships are obligated to follow these rules, just like any other business.

At Honest Autos, we keep our interest rates competitive because it benefits our business, and believe in providing our customers with the best possible deal. We encourage you to have a conversation with your buy here pay here dealership to determine the interest rate you may qualify for before signing any documents. With Honest Autos, we provide transparent deals that you can fully understand and comfortably accept.

Myth #4: Buy Here Pay Here Dealerships Don’t Report Credit

This is somehow true, but many dealerships that offer "Buy Here Pay Here" (BHPH) options now regularly provide information about your loan and on-time payments to credit reporting bureaus. This means that consistently making your payments on time can help improve your credit score for future auto loans. A higher credit score will give you access to better interest rates and a wider range of vehicle options. Additionally, it can help you secure financing for other credit needs. Nowadays, reporting customer credit history has become a common practice in the BHPH industry, although it may not have been the case in the past.

There are multiple regulations to protect consumers when purchasing from a buy here pay here car lot. These regulations are strictly enforced, and failure to comply can result in substantial penalties or even the cancellation of their licenses. Here are the rules that they must follow to or risk losing their business:

  • The Fair & Accurate Credit Transaction Act
  • The Safeguards Rule
  • The Disposal Rule
  • The Fair Debt Collections Practices Act
  • State & Federal Unfair & Deceptive Practices laws
  • The Red Flags Rule
  • The Risk-Based Pricing Rule
  • State Usury laws
  • The Truth in Lending Act
  • The Used Car Rule
  • The Privacy Rule

Myth #5: Buy Here Pay Here Is Only for Those with Bad Credit

A common misunderstanding is that Buy Here Pay Here (BHPH) dealerships only serve people with poor credit. Although BHPH financing is designed for customers with less-than-ideal credit, it is not limited to them. BHPH dealerships, such as Honest Autos, provide flexible financing options for customers with different credit backgrounds, including those with no credit history or past bankruptcies.


The buy-here-pay-here industry has long faced negative feedback. These misunderstandings have damaged the reputation of a sector that provides a valuable service to our communities and specific groups of people. Buy Here Pay Here Car dealerships can be a worthwhile option if you have poor credit and want to buy a car.

If you are looking for a Buy Here-Pay Here dealership in Fruitland Park, Florida, there’s no better option than Honest Autos. We offer a transparent buying experience, so you can soon be driving your desired vehicle without any regret about your recent purchase.

Our finance team is committed to supporting everyone, regardless of their credit history, and our online application process is fast and simple, only requiring necessary information about you, your finances, and other relevant details. Apply online today and let us help you in getting the car you desire.