The Dangers of Buy Here, Pay Here Dealers in Harrisburg, PA

March 11th, 2023 by

Sleazy salesman surrounded by fire with text: Buy Here Pay Here under a "no" sign

If you’re looking for a car but have bad credit, you may be tempted to go to a “buy here, pay here” dealer. However, this could be a big mistake. These dealerships often charge high-interest rates that can be adjusted at any time, high down payments, and sell cars of questionable quality.

What is Buy Here, Pay Here?

Buy Here, Pay Here (BHPH) dealerships are auto dealers that finance loans “in-house,” meaning they do not rely on outside financing sources. BHPH dealerships cater to people who have poor credit or no credit history and therefore have a hard time securing a loan through traditional financing channels. BHPH dealerships typically require higher interest rates and down payments than traditional lenders.

The Cons of Buy Here, Pay Here

While BHPH dealerships may seem like an attractive option for those struggling with credit, there are several downsides to consider before making a purchase:

Sleazy salesman pointing to a junk car with dollar signs

  • Higher interest rates: Interest rates at BHPH dealerships can be significantly higher than traditional lenders, sometimes reaching 30% or more.
  • Expensive down payments: BHPH dealerships may require a significant down payment, often 10-20% of the car’s purchase price.
  • Poor quality cars: Many BHPH dealerships offer older, high-mileage vehicles that may not have been properly maintained. This can lead to costly repairs and frequent breakdowns.
  • Repossession: BHPH dealerships have a reputation for being quick to repossess vehicles if the borrower misses a payment, putting the buyer at risk of losing their vehicle and any money they have already paid towards it.

At PA Credit King, we understand the struggles of having bad credit and are here to help. Our guaranteed credit approval program is designed to get you behind the wheel of a quality used car with a fixed interest rate that won’t change. We even report your payments to the credit bureaus, which can help increase your credit score over time.

Get Approved for Financing with PA Credit King Today

We believe that everyone deserves access to reliable transportation, regardless of their credit score. That’s why we make it easy to apply for financing online or in person. Our finance experts will work with you to find a payment plan that fits your budget and lifestyle.

Get Approved

Calculate Your Monthly Payments

Not sure how much car you can afford? Use our payment calculator to get an estimate of your monthly payments based on the vehicle you’re interested in, your down payment, and other factors.

Calculate Your Payments

Explore Our Finance Center near Harrisburg

Our finance center is a great resource for anyone looking to improve their credit score and get behind the wheel of a reliable vehicle. We offer a variety of financing options, including bad credit auto loans, and work with a network of lenders to find the best possible rates for our customers. Visit our finance center to learn more.

Finance Center

Find Your Next Vehicle at PA Credit King

Whether you’re looking for a new Volkswagen or a used car, our inventory has something for everyone. Browse our new vehicles and certified pre-owned Volkswagen models, or check out our selection of used cars from a variety of makes and models.

Visit PA Credit King Today

Don’t let bad credit stand in the way of getting the car you need. Visit PA Credit King today to experience our commitment to quality, reliability, and customer service. Our team of experts is ready to help you find the perfect car and financing solution to fit your needs.

Get Directions

Contact Us

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.
  • This field is for validation purposes and should be left unchanged.

More From PA Credit King

  • Guaranteed Auto Financing Near Camp Hill, PA

    At P. A. Credit Kings, we’re proud to offer guaranteed auto financing solutions near Camp Hill, PA. We understand that securing credit approval can be challenging, especially if you have a less-than-perfect credit history. That’s why we’re here to help you get behind the wheel of your dream car with our hassle-free guaranteed financing options….

  • Car Loans With No Credit and No Cosigner in Steelton, PA

    Welcome to P.A. Credit Kings At P.A. Credit Kings, we understand that navigating the world of car loans can be daunting, especially if you have no credit history or lack a cosigner. That’s why we’re here to help you secure the financing you need to drive home in the car of your dreams, regardless of…

  • Buying a New Car with Your Tax Return in York, PA

    Navigating the path to car ownership can seem daunting, especially when you’re faced with credit challenges. In Steelton, PA, however, acquiring a car loan without credit or a cosigner is not just a possibility; it’s a promise. Our dealership, renowned for its inclusive financing options, ensures that every potential buyer has access to a great…

Posted in Financing, Used Cars