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When I Do Business With A BHPH Dealer Do I Buy Or Lease The Car?
Your answer depends largely on the dealer who your doing business with. Some dealerships will "lease buy here pay here" cars. Other dealerships will go the conventional route and sell you the vehicle with the title in your name.
The reason why some dealers might want to "lease buy here pay here" is because of tax purposes. From the dealerhip standpoint, the dealer owns the vehicle and they will lease it to you. Often times they will release the vehicle to you for a minimal dollar amount. Often times that dollar amount is miniscule. IE, one dollar.
One problem the dealership might face if they decide to lease BHPH a vehicle is insurance. The state the dealer is doing business in has to make sure the vehicle is insured. This means the customer (you) has to make sure you pay your monthly insurance bill. Oftentimes the dealership will have a small staff of people calling insurance companies to check if each vehicle is insured. If you don't pay your insurance bill this might be grounds for a repossession. Although, this is something that you want to discuss with your local BHPH dealer.
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+