Regular auto dealers offer customers different financing options to pay for the vehicle they want to purchase. These fall under two basic financing categories readily available to any customer, namely: car loan financing provided by a third party such as banks; and in-house financing.

Buy Here Pay Here or BHPH is an example of in-house financing, an option often provided by used car dealers. BHPH financing is a loan on a vehicle that requires buyers to make scheduled payments at the dealership. In contrast to traditional car loans in which buyers choose a car and then apply for a loan, BHPH financing involves an assessment of individual buyers' financial capacity before they even get to pick a car from the dealer's showroom.

To serve as a guarantee, the dealer holds the title to the vehicle until it is fully paid. A customer may be required to make weekly or bi-weekly payments, depending on the agreement. Buy Here Pay Here dealerships mostly prefer that payments be brought to the dealership location although some dealers accept online payments or through the phone.

BHPH financing deals are fast and convenient. Buyers can get approved for a loan and get their vehicle within the same day. Commonly, little or no credit checks are involved, unlike car loans provided by banks or other credit institutions. This type of in-house financing does not discriminate between customers who have good or bad credit. Upon paying the initial down payment, you can qualify for Buy Here Pay Here Indianapolis IN financing.

Since payments are made with the dealership, the Buy Here Pay Here dealers Indianapolis can make the payment options more flexible to customers, especially those who have low credit ratings. For those with budget constraints and poor credit, Buy Here Pay Here financing comes as a great benefit, especially if they pay on time. Buy Here Pay Here schemes can thus serve as an opportunity for people to improve their credit standing, allowing them to make better credit purchases in the future.

One disadvantage to Buy Here Pay Here Indianapolis financing is that interest rates are considerably higher, since the auto dealer is taking a financial risk with individuals who have low credit ratings. This can lead to bigger total expenditures for the customer in the long run. Although payments can be flexible, most dealers require strict compliance to the weekly or bi-weekly payment rule. Failure to make these payments may result in the vehicle getting repossessed.