What is the difference between buy here pay here and financing?
David Craig 
Typically, consumers who are looking for financing will look for a car they want, and then discuss financing after. At buy here pay here dealerships, the buying process is upside down. Instead, you will talk to a financial advisor at the dealership about what you can afford for a vehicle.
How does financing work at a car dealership?
You and the dealer enter into a contract where you buy a car and agree to pay, over a period of time, the amount financed plus a finance charge. The dealer typically sells the contract to a bank, finance company, or credit union that will service the account and collect your payments. Multiple financing options.
How does buy here pay here work in NJ?
Buy-here, pay-here car dealerships offer a car buying opportunity to people who don’t qualify for traditional loan terms. Instead of getting paid cash when selling the car, BHPH dealers carry the loan themselves. Your payments are made to the car dealership and the dealer repossesses the car if you don’t pay as agreed.
Do car dealerships have their own financing?
2) Dealerships don’t want you to have your own financing. Dealers don’t just sell cars, they sell your business to lenders for a profit. They’re counting on making money on your loan. Once you know what rates you can get at an outside lender, you can negotiate for the best deal possible with the car dealer.
When a car dealership runs your credit does it go down?
When you visit a dealer and decide to purchase a car, fill out the loan paperwork and give the dealer permission to run a credit check, that generates a hard inquiry on your credit report. Hard inquiries will reduce your credit score anywhere from 5-10 points for about a year.
How bad does a car dealership hurt your credit?
Car loan preapprovals trigger a hard credit inquiry when the lender checks your credit, which could knock your credit score a few points temporarily. Multiple hard inquiries for auto loan preapprovals are generally treated as a single inquiry by scoring models if they occur within a 14-day window.
