A dealership is a type of used-car seller that acts as both the retailer and the lender, providing in-house financing directly to consumers . Unlike traditional dealerships that send loan applications to third-party banks or credit unions, a BHPH dealer uses its own money to underwrite the loan, meaning the buyer makes payments directly to the car lot. Technical and Legal Definition
: These dealers focus on "subprime" borrowers with poor or no credit history who have been denied by traditional institutions. buy here pay here definition
: While traditional loans are typically monthly, BHPH loans often require weekly or bi-weekly payments that match the customer's payday. A dealership is a type of used-car seller
: They enter into conditional sale or lease contracts that are not paid in full within 30 days. buy here pay here definition