Versus Buy Here Pay Here

What is a Buy-Here-Pay-Here Car Dealer?

The true Buy Here Pay Here used car dealership in MD is quite different from the conventional car dealership. Conventional car lots sell cars financed by large financial institutions, like a bank. They do not offer their own financing and so they do not have loan officers. Many BHPH car lots do NOT offer in-house financing but only assist buyers in gaining access to auto finance companies that specialize in sub-prime creditors and interest rates typically around 24% (ouch!). Both the car dealership and the auto finance company are trying to make a profit in a highly speculative credit market. [Not at Kadlak Motors, we finance our own cars and offer low rates if you pay on time.]
 

 
Payment Process

Instead of writing checks to a financial institution, buyers pay cash at the dealership; the dealer then pays the auto finance company. Most dealerships structure payment plans that match your payday and require payments weekly or biweekly. Pay here buy here car lots in Maryland may offer their best customers the opportunity to refinance their vehicle directly through the auto finance company after six or more installments. Up to forty percent of PHBH cars return to the dealership so they have a strong ownership interest in insuring that the cars are in good repair. So you are not in the best of company and the BHPH experience can be bit humbling as you rebuild good credit. [Not at Kadlak Motors, you pay monthly.]
Shopping Experience

Another key difference between a traditional dealership and one that specializes strictly in BHPH financing lies in the shopping experience. At a traditional dealership, the financial conversation is often the last part of your discussion. After you've seen a few models, asked a host of car questions and possibly test driven one, the salesman will help you explore payment options. At a BHPH car lot, the process is usually reversed. The salesman will ask you a series of questions, ask your credit score and invest in understanding your credit history before showing you available cars. Then, with your monthly payment range and down payment factored in, the salesman will show you cars that you qualify for. Thus, the shopping experience is similar to buying a house with a real estate agent.
Trade Ins

BHPH dealerships tend to be more generous when it comes to accepting trade-ins on older model cars. These dealerships understand the value and benefit of getting long-term use out of cars that traditional dealerships would not accept. They are more likely to find a buyer for your car and thus more likely to take it as part of a trade-in. The traditional auto dealership does not want to show older cars on their lot and so they quickly flip the trade in at a dealer only auction. [At Kadlak Motors we will take your trade in as a partial down payment.] Click here to see what your trade-in is worth.
Kadlak Motors' In-House Financing

Click here to learn about Kadlak Motors' Pay Right Reward plan and how it differs from BHPH financing.

Summary

Most buy-here-pay-here car dealerships in MD who advertise "Guaranteed Credit Approval" provide:
  • Access to sub-prime auto finance companies at 23.9% APR, [Not at Kadlak Motors, we offer in house financing at rates as low as 8.9%.]
  • But you need a job, a down payment, & stable residence history,
  • Weekly or biweekly payments, [Not at Kadlak Motors, you pay monthly.]
  • Payments made in cash at the car lot, [Not at Kadlak Motors, you pay by direct deposit.]
  • $2,000 minimum down payment,
  • Cars will be in good repair,
  • In-house repair warranties available and encouraged, and [At Kadlak Motors, we offer No Worries plan.]
  • Greater trade-in flexibility.
Credit Application

Apply now. Click here for our easy credit application.