Making Your Auto Loan Payment

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - May 13, 2019

When you take out an auto loan, you have to make the monthly payments, or else you risk losing your vehicle to repossession and destroying your credit. Typically, auto loans are paid on a monthly basis, but this isn't always the case. In fact, if you get a car through a buy here pay here (BHPH) dealer, you're more likely to make weekly or bi-weekly payments.

Why BHPH Payments Are Different

Rather than mailing in a payment or hopping online to pay your bank or finance company once a month, BHPH dealerships often work a little differently. At these car lots, the dealers are the lenders. This means you're not only getting your vehicle from this car lot, you're also being financed there, as well. The dealerships are selling you a vehicle they own.

To ensure these cars get paid for in a timely manner, BHPH dealers sometimes require you to make payments every week – or bi-weekly, depending on your pay schedule – and you often have you do so in person. Payments even one day late can be grounds for repossession, so make sure you read your auto loan contract carefully.

Pros of Buy Here Pay Here

If heading over to your local BHPH to make a weekly or bi-weekly car payment doesn't make you happy, maybe some of the other perks of buy here pay here dealerships will:

  • Since BHPH dealers don't rely on outside lenders, they often don't check your credit. They instead rely on your income and ask for a down payment, which can make getting approved for a car loan easier. These days, it's not uncommon for many of these dealerships to report your payments to the national credit reporting agencies, which can help improve your credit score. Not all of them do this though, so be sure to check.
  • BHPH lots offer one-stop shopping when it comes to getting a vehicle. Because there's no waiting on third-party lenders, you could sign and drive in one day.
  • You may be able to choose a payment schedule that fits you, whether that’s weekly, bi-weekly, or monthly. Though it's a common practice for a BHPH to require in-person payments, this is also changing in the digital age. Some dealers now accept payments online or over the phone.

BHPH dealerships can be quick and convenient when you need a car now, but you should be aware that the vehicle selection on some BHPH lots can be limited, and some cars are older models with high miles. This doesn't mean the vehicles aren't sound, it just means you should have them checked out by a certified mechanic before buying.

Finding the Car You Need

There are some benefits to going to a buy here pay here dealer, especially if you've been turned down by a traditional lender. But did you know there's another option? If you're suffering from bad credit and you need a car, a subprime lender could do the trick – and CarsDirect knows where to find them.

These lenders only work through special finance dealerships, and they have the ability to look beyond credit scores to help you get the loan you need based on income, residency, and employment, among other factors. Plus, if you get an auto loan through a subprime lender, making bi-weekly payments gets your loan paid off faster and saves you money in interest charges!

If this sounds like just the solution you're looking for, then fill out our free and easy car loan request form and we'll get to work matching you with a local special finance dealer. What are you waiting for?!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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