I’m considering buy here pay here (BHPH) financing for a vehicle but I’m unsure if it’s the best option. What are the potential drawbacks or risks associated with BHPH financing compared to traditional auto loans? Any insights or experiences would be helpful.
BHPH financing can be a double-edged sword. It’s definitely an option for those who might struggle to get traditional financing due to credit score issues, but you’re usually looking at much higher interest rates. Some BHPH dealers are more flexible, allowing for payment schedules aligned with your paycheck, but it can trap you in a loan where you’re paying more in the long run for a vehicle than it’s worth. Plus, they often don’t report to the credit bureaus, so it might not help if you’re trying to rebuild your credit. It’s crucial to read the fine print and fully understand the terms before diving in. 
Lately, as the used car market fluctuates with economic pressures, the disparity in pricing might be more pronounced in a BHPH lot compared to conventional dealerships. Wouldn’t hurt to at least peruse some traditional options to compare, if possible.