A recent study by CNW Research Group is showing that Buy Here Pay Here car sales have absolutely soared since the economic downturn. Between the years 2000-2007, BHPH cars consistently represented about 3% of all used vehicles sold, never drifting higher than 3.64% and falling as low as 2.71%.
Nationwide Credit Problems Boost BHPH Car Sales
With the recession, however, auto loan credit requirements became much stringent and the sales market for new cars all but collapsed. Many consumers who could no longer get approved at a traditional dealership turned to Buy Here Pay Here financing. Nobody else offers such easy auto loans for bad credit. And car buyers weren’t the only ones — traditional car dealers looked to the BHPH market for higher profit margins and easier credit approvals for their customers. After all, getting a buyer approved for financing is just as important to dealers as to their customers.
BHPH Sales By The Numbers
Buy Here Pay Here cars as a % of total used cars sold:
- 2007: 3.18%
- 2008: 3.84%
- 2009: 5.21%
- 2010: 6.37% (projected)
Total Number of Buy Here Pay Here Cars Sold:
- 2007: 1.32 Million
- 2008: 1.40 Million
- 2009: 1.85 Million
- 2010: 2.37 Million (projected)
The Mainstreaming of Buy Here Pay Here
Another telling statistic is average value per BHPH unit sold. The average cost for a BHPH car is now around $6,000, with more than 1/3 of them being sold for greater than $8,000. With new dealerships stepping foot into the market, BHPH is no longer the sole preserve of independent car lots, and buyers with very poor credit history are no longer the only customers. At Buy Here ‘N Pay Here, we work with all types of BHPH dealers and lenders to get you approved for financing no matter your credit score or past credit history. Apply online today!