: Approval is often based on proof of residence and income (e.g., pay stubs) rather than a FICO credit score.
: 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
: These dealers focus on "subprime" borrowers with poor or no credit history who have been denied by traditional institutions. : Approval is often based on proof of
: While traditional loans are typically monthly, BHPH loans often require weekly or bi-weekly payments that match the customer's payday. : While traditional loans are typically monthly, BHPH
: They assign (sell) less than 90% of their contracts to third-party lenders within 45 days, effectively keeping the vast majority of loans "on their books". Core Business Model Characteristics
Legal definitions, such as those used by the California DMV , often characterize a BHPH dealer by two primary criteria: