Show Finding the Right Car Every Electric Car Available for Sale in 2022 There's never been more variety if you are shopping for a new electric car. Jul 28, 2022 Finding the Right Car The New Electric Delorean: Back to the Future and Then Some It'll be powered by electricity, but no word on whether there's a flux capacitor onboard. Jul 25, 2022 Finding the Right Car 2022 BMW i4 Review: Take That, Tesla Does this luxury electric car have enough to disrupt Tesla's market share? May 25, 2022 At Chacon Autos, we can approve all kinds of credit to help our customers in to a quality used car. Good credit, bad credit or no credit. Begin the easy online application process now and know before you go in-dealership. Great Used Car Selection Looking for a car? A truck? An SUV? Explore our inventory of used cars for sale. You can perform a more detailed search of our used cars for sale by using our filtered search form. Chacon Autos has a wide variety of makes and models, including Chevy, Dodge, Ford, Hyundai, Kia, Nissan, Toyota, Honda, Jeep, and Volkswagen. Looking for in-house financing car dealers near me? Visit today to see why Chacon Autos is the best place to buy used cars in Texas. If you have bad credit or no credit, we can work with you. Whether it’s a repossession or a bankruptcy, our finance team can find the good in almost any situation. Ready to get moving in a used car? All you have to do is fill out our simple form on our Get Approved page. It’s an easy first step towards car ownership. What Is Buy Here, Pay Here (BHPH)?The term “Buy Here, Pay Here (BHPH)” refers to auto dealerships in which the financing for the vehicles purchased is done in-house. These types of dealerships are typically involved in the sale of heavily-used cars, and they tend to cater to customers with relatively poor credit ratings. Key Takeaways
How Buy Here, Pay Here WorksThe majority of auto dealerships focus their attention on generating new sales; they delegate the financing portion of their business to a third-party provider. In the case of dealerships affiliated with a major automotive brand, this financing might be extended by an affiliate of the manufacturer itself. In other cases, the dealership might use dedicated lease financing companies that are not affiliated with the auto manufacturers. BHPH dealerships are an exception to this general rule because they provide their own lease financing themselves. The benefit of this approach is that the BHPH dealership can enjoy the interest revenue associated with their leases. On the other hand, these dealerships may be prone to cash flow problems. After all, the price received for the cars that they sell is stretched out over the life of the car loan. The BHPH business can be especially difficult if it is geared toward subprime borrowers. BHPH dealerships have been known to offer flexible terms, such as 0% down payments, no-interest financing periods, and loans without any preliminary credit check. Although these measures might more readily generate new business, they can also increase the default risk of the business. As a result, these flexible loan terms can significantly threaten the dealership’s long-term profits. Example of Buy Here, Pay Here (BHPH)David is the owner of a used car dealership. He is seeking to expand his current customer base. He has found it difficult to compete with the brand-affiliated dealerships in his local marketplace, who tend to attract his region’s more affluent customers. In an effort to expand his revenues, David decides to focus his marketing strategy on subprime customers who may be unable to afford the financing terms offered by his larger and more traditional competitors. To that end, David begins offering flexible financing terms on an in-house basis, effectively becoming a BHPH dealership. He takes out an advertisement in several local newspapers, offering “no money down” used cars to customers with bad credit. He does not require a preliminary credit check. To seal the deal, he offers a six-month interest-free period. David reasons that, although he will likely experience higher default rates than his competitors, he can make up for this risk by charging relatively high interest rates. He also intends to aggressively repossess cars from customers who fail to make timely payments. To support that strategy, he even considers installing trackers and other devices onto the cars to identify them and to render them inoperable if the customers fail to pay. |