Buy Here Pay Here Definition -

Legal definitions, such as those used by the California DMV , often characterize a BHPH dealer by two primary criteria:

: Approval is often based on proof of residence and income (e.g., pay stubs) rather than a FICO credit score. buy here pay here definition

: To offset the risk of lending to high-risk borrowers, interest rates are significantly higher, sometimes exceeding 30%. Legal definitions, such as those used by the

: As of recent market research, there are roughly 33,000 such lots in the U.S., compared to 22,000 new car dealerships. : These dealers focus on "subprime" borrowers with

: These dealers focus on "subprime" borrowers with poor or no credit history who have been denied by traditional institutions.

: While traditional loans are typically monthly, BHPH loans often require weekly or bi-weekly payments that match the customer's payday.

: They enter into conditional sale or lease contracts that are not paid in full within 30 days.