I recently bought a car from one of the “Buy-Here-Pay-Here” (B.H.P.H.) Dealers. The price of the car was $3,995.00 with no warranty. I wound up spending a total of about $3,200 to keep the car on the road. I spent about $1,800 for transmission work, $450 for a fuel pump, and $750 for a new on board computer. The total invested in the car is about $7,200. The car is a 2002 model, and yes I still have it.

The question is, was this a total disaster or what. I actually don’t view it as a total bust. Let’s compare traditional financing with “B.H.P.H.” financing. The price of the car from a traditional dealer would perhaps have been lower but interest rates, which are built into the price on “B.H.P.H.” deals, would have made it close to the same in the end. The traditional dealers don’t normally have warranties on used vehicles of a certain age. All things being equal, the repairs would still have been needed. If I chose to buy an extended warranty it would cost extra either way. My only regret is that I didn’t thoroughly research an extended warranty and buy one. The mileage on the car, when I bought it, was definitely within range of one of these warranties.

When the mechanical problems started I was very up front and honest with the dealer about the cost of repairs. I told him what was going on and that I understood the “as-is no warranty situation” but I was just letting him know of my struggles. This seemed to help build a relationship with the company because my attitude was not confrontational and neither should it have been. The choice between “buy-here-pay-here” and “mainstream” dealer on used car purchases my not be as different as we might think when you boil it all down and crunch the numbers. The difference is the trustworthiness of the dealer whether it’s “B.H.P.H.” or traditional.

The social stigma that goes along with “B.H.P.H.” is another thing to consider. Many people consider buying from this type of dealership to be a sure sign of your financial shortcomings. But I dare say, that in many cases a “buy-here-pay-here” transaction may be just as good and some times even better than a purchase form a traditional dealer. Again, it depends on the trustworthiness of the company. Yes, used car dealers both “B.H.P.H.” and traditional are at the bottom of most peoples lists of trustworthy business people. All the more reason to tout either one that turns out to be honest.

So then, if you can deal with the social aspect of folks knowing where you bought your car and you do your home work, in many cases it may be a toss-up whether you should “buy-here-pay-here” or not.

Source by R James W