Ensure the "Truth in Lending" box is filled out.
A installment contract is a unique type of auto financing where the dealership acts as both the seller and the lender. Unlike traditional car buying, you don’t get a loan from a bank; you owe the dealer directly. How the Contract Works Direct Lending: The dealer holds the "paper" (the debt). In-House Payments: You often pay at the lot. Flexible Credit: Approval is based on income, not scores. Short Terms: Loans usually last 2–3 years. Key Terms to Watch For High APR: Interest rates often hit 20% to 30%. buy here pay here installment contract
Many contracts require weekly or bi-weekly installments. Ensure the "Truth in Lending" box is filled out
Many cars have GPS trackers or remote kill switches. How the Contract Works Direct Lending: The dealer
Not all BHPH dealers report to credit bureaus.
"Pick-up payments" that cover a short-staffed down payment.