While BHPH dealers may not do a hard credit check, they cater to "Deep Subprime" borrowers (scores 300–500), where double-digit rates are standard.

Many BHPH loans require weekly or bi-weekly payments rather than monthly installments.

The for Buy Here Pay Here (BHPH) dealerships is significantly higher than traditional auto loans, typically averaging around 20% but often ranging from 15% to 25% or more . These rates are essentially the maximum allowed by state law, reflecting the high risk these in-house lenders take by approving buyers with poor or no credit history. Typical APR Ranges (2025-2026) Average BHPH Rate: Approximately 20% .

High APRs can lead to "negative equity," where you owe thousands more than the car is worth as it depreciates.

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