Buy Here Pay Here Definition -

Academic and economic reviews, such as those featured on Investopedia and Governing , identify several defining traits of this model:

: Many lots use GPS tracking or "starter interrupt" devices to facilitate easy repossession if a payment is missed. Market Scale and Impact buy here pay here definition

: To offset the risk of lending to high-risk borrowers, interest rates are significantly higher, sometimes exceeding 30%. Academic and economic reviews, such as those featured

: As of recent market research, there are roughly 33,000 such lots in the U.S., compared to 22,000 new car dealerships. : They enter into conditional sale or lease

: They enter into conditional sale or lease contracts that are not paid in full within 30 days.

Legal definitions, such as those used by the California DMV , often characterize a BHPH dealer by two primary criteria:

: According to Autotrader , BHPH dealers are highly motivated because they earn profit twice: first on the sale price markup and second on the loan interest. What Is Buy Here, Pay Here Auto Financing? - Experian