Are buy here pay here consumers “bottom feeders”?
That is exactly what theses valuable customers are being referred to. I recently read an article that called buy here pay here customers the lowest on the car buying food chain. The people who are in this category are in this situation because of their lack of discipline and their irresponsibility. They basically deserve to be raked over the coals by the evil and greedy BHPH dealer because their economic situation is their own fault.
We here at BHPHprices reject this characterization wholeheartedly. The BHPH industry is a multi-billion dollar industry. Are all these consumers “bottom feeders”? Of course not. The typical consumer is one who is experiencing a difficult financial period. They are good people who have found themselves in a bit of trouble. Most of the time, this is temporary and quickly remedied by steady attention to their debt issues. The BHPH dealer is not an evil greedy money grubber who preys on the unfortunate. He provides a service to folks who need quality, safe, reliable transportation who may not be able to qualify for a conventional loan. These folks need a person to look at their future and regard their past as a bump in the road.
Do these dealers get paid more for their vehicles? Yes they do, and for a good reason. The pay back rate is only 65%. They are in a risky business. Many people default on their loans and these dealers are left holding the bag. They are willing to extend themselves to people who are down on their luck, and take a big financial risk. They have to have more to maintain profitability plain and simple. We are not stating that these dealers provide these cars out of the kindness of their heart. Absolutely, not. They are businessmen who work for profit. Like every other business man. However, they do provide a service and these dealers are becoming increasingly important to consumers who need alternate financing.
This article was written by Brian McCormick of Providence, Rhode Island. Brian is a BHPH expert and has been involved in the used car and BHPH industry for over 10 years. He enjoys traveling and sports. Follow him on Google+