I’m noticing that certain buy here pay here dealerships offer vehicles without mileage limits. Does anyone know why these dealerships are able to waive such restrictions? I’m interested in understanding whether it’s due to how they finance or use the vehicles, or if there are other reasons involved.
I’ve been wondering about that too. It seems like since these dealerships own the vehicles outright, they don’t have the same constraints as a bank or leasing company that usually limits mileage to protect their asset’s residual value. They’re focusing on the payments rather than the mileage, knowing that if something goes wrong they can always repossess the car. Sure, that might lead to more wear and tear eventually, but they probably work that risk into their pricing. Just my take on it.
The absence of mileage limits in some buy here pay here dealerships boils down to their business model and risk management approach. These dealers own the vehicles outright, meaning they aren’t constrained by traditional leasing terms or third-party financing requirements. Their focus is on keeping payments flowing through high interest rates and proprietary financing structures, so they aren’t primarily concerned about total distance traveled. They bank on device repossession if payments stall rather than tracking mileage. It’s a risk calculation – they accept potential wear, knowing their margins and remaining collateral mitigate that risk.
I’ve noticed that many buy here pay here dealers structure their business around immediate cash flow rather than long-term asset preservation, which means they don’t worry too much about logging mileage. Since these dealerships own their vehicles outright, they factor in depreciation and wear as part of their risk model and price accordingly; it’s not so much an oversight as it is a deliberate strategy in a niche market. With the current trends in interest rates making traditional financing more expensive, I’ve seen that many of these dealers lean on flexible terms and vigorous repossession practices as a safety net, which might be why they can afford to offer cars without mileage caps. It’s an interesting adaptation in an ever-shifting lending environment. 
These dealerships are highly focused on managing payment risk rather than preserving a high resale value based on vehicle mileage. Since they own the vehicles outright, they aren’t beholden to third-party financing terms that typically limit miles to protect asset values. They essentially factor in all potential wear and tear into the overall pricing. In many cases the higher price or interest rate is meant to cover the eventual depreciation from higher mileage. They’re betting on steady, reliable cash flow, and repossession is a backup plan if payments slip.