What Are Pay Weekly Car Dealerships?

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - October 30, 2019

Pay weekly car dealerships are a type of in-house financing dealer, which are also called buy here pay here (BHPH) dealerships. These dealers are also lenders, and offer auto loans in-house for the vehicles on their lots. Instead of paying monthly like traditional lenders, BHPH dealerships sometimes have you pay weekly or bi-weekly, and it may depend on your pay schedule. Buy here pay here dealers used to require you to pay in person, but more and more now accept online payments. Want to know the pros and cons of a pay weekly car dealership? Keep reading to find out.

Pros of Pay Weekly Car Dealerships

Pay weekly car dealers make it easier for those struggling with credit to get approved for auto financing. How do they make this possible? BHPH dealerships don’t usually run credit checks, that's how.

For the most part, pay weekly dealers aren’t concerned about what’s on your credit reports or what your credit score is. Instead of basing approvals on credit, they use your income, which is a major advantage if you have bad credit or little to no credit history.

As long as you have enough disposable income for a monthly vehicle and insurance payment and a sizable down payment, you’re in good shape to get an auto loan. Traditional and subprime lenders (another type of bad credit lender) want to see enough W-2 income from a single job, but with a pay weekly dealership, you can have multiple jobs and qualify with the combined income.

Cons of Pay Weekly Car Dealerships

Unfortunately, pay weekly car dealers come with some downsides. Sure, it’s easier to get approved for financing, but because these dealerships don’t run credit checks, you might not get a chance to build or improve your credit if they don’t report your loan or on-time payments to the credit bureaus.

Plus, because they don’t look at your credit, buy here pay here dealers set your interest rate higher than average – usually in the double digits – and this increases the overall cost of borrowing.

In addition, the down payment requirement can be high. Pay weekly dealerships typically base the down payment on the vehicle you choose. This makes it tricky, because the requirement varies from dealer to dealer.

Finally, don’t expect a brand new vehicle from a pay weekly dealership car lot. They only sell used vehicles, and these cars can range from last year’s models with less than 10,000 miles to vehicles closer to 10 years old with over 100,000 miles.

Just like with all used cars, you should have any vehicle you’re seriously considering inspected by a certified mechanic and take it for a test drive before you sign any documents.

The Bottom Line

Pay weekly car dealers aren’t for everyone, and it’s important you weigh all your options before you walk into a dealership and discuss financing. When you want to find the right dealer for you, we’ve got you covered.

At CarsDirect, we work with special finance dealerships all across the country that are teamed up with the lenders you need. To get started today, simply fill out our auto loan request form. Our process is fast, easy, free, and puts you under no obligation.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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