Being a new parent can be tough. Though children bring a lot of joy, they also demand a lot of time and attention, and they aren’t cheap. According to a Brookings Institution study reported in the Washington Post, it costs about $17,000 per year to raise a child.
As a result, buying a car can be a challenge for a new parent. After all, transportation is likely your second largest expense after housing. Luckily, there are ways to make owning a car easier and Buy Here, Pay Here financing is one of them.
What Is Buy Here, Pay Here Financing?
Buy Here, Pay Here (BHPH) refers to financing a car directly through a car dealership. Instead of going to a third-party auto lender, you can get a loan from the same place you buy the car.
Most BHPH dealerships cater their financing to credit-challenged buyers who don’t qualify for traditional car loans. For new parents, BHPH financing can be especially helpful. It offers:
1. Easy approval
BHPH dealerships have looser lending requirements than traditional auto dealers. According to Tiger Okeley at BHPH dealership Oak Motors, “most new parents haven’t had time to build up much credit, but with buy here, pay here financing, you can get the car you need, no matter what your credit looks like.”
Have you had recent bankruptcy or foreclosure? That’s probably okay too. The bottom line is BHPH dealerships aren’t going to be as concerned with your credit score as long as you can afford the loan. That’s why they determine what loan amount you qualify for first and then let you look at their available cars in that price range.
2. Flexible payment plans
Most BHPH dealerships offer flexible payment plans. That means you may be able to work out a monthly, bi-weekly, or weekly payment plan that best fits when you get paid by your employer. For a new parent on a tight budget, this can be extremely helpful.
3. Simple car-buying process
Getting a car loan through a traditional lender can be a time-consuming process that involves lots of paperwork and back and forth. However, since BHPH dealerships integrate the financing into the deal on-site, the process is much faster. It’s like having a one-stop shop for the whole transaction. No third-party lenders and no hassle.
4. Low or no down payment options
Some BHPH dealerships offer low or no down payment options. This can make buying a car even easier for parents who may not have much savings built up to put toward a new car. So if you’re strapped for cash, BHPH financing may be the way to go.
5. Personalized service
BHPH dealerships often offer more personalized service than traditional dealerships. Why? Because they handle the entire car buying process from start to finish. This means they’re more vested in your business and are willing to go the extra mile to make sure you are satisfied with your experience.
6. Quick access to reliable transportation
Lastly, BHPH financing gives new parents a chance to quickly get the reliable transportation they need. You may need a car ASAP to get to your job, run important errands, and take care of other important family duties like taking your child to daycare. Whatever your transportation needs, a BHPH dealership can help you get a vehicle fast so you can have peace of mind during this challenging stage of life.
For new parents who don’t have time to wait for traditional financing options, BHPH financing is a nice alternative.
At the end of the day, how you finance your first car as a new parent is up to you. At least now you know about another option if you’re struggling to qualify for a traditional car loan.
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