Utility Task Vehicles (UTVs), or side-by-sides, are popular for work and play, but they can be expensive. Buy Here Pay Here (BHPH) UTV dealerships offer in-house financing, making ownership possible for those with poor credit or no credit history. In this article we will understand how BHPH works, its pros and cons, and how it compares to traditional financing options.
How Buy Here Pay Here UTV Dealerships Operate
BHPH UTV dealerships differ from traditional dealerships primarily in their approach to financing. Instead of acting as an intermediary between the buyer and a third-party lender, BHPH dealerships provide in-house financing. This means the dealership itself determines the loan terms, interest rates, and payment schedules. The process typically involves:
Minimal or no credit checks, making it easier for buyers with poor or limited credit histories to qualify.
Direct payment arrangements with the dealership, often requiring buyers to make payments in person or through an online portal.
Shorter loan terms and higher interest rates compared to traditional financing options.
Potential for larger down payments to offset the increased risk for the dealership.
Because the dealership assumes the risk of default, they may also include additional requirements such as GPS tracking devices on the UTV or the ability to repossess the vehicle quickly if payments are missed.
Advantages of Buy Here Pay Here UTV Dealerships
Accessibility: BHPH dealerships are often willing to work with buyers who have been turned down elsewhere due to credit issues.
Simplicity: The financing process is streamlined, often allowing buyers to drive away with a UTV the same day.
Flexible Payment Options: Weekly or bi-weekly payment schedules can make budgeting easier for some buyers.
Opportunity to Build Credit: Some dealerships report payment history to credit bureaus, potentially helping buyers improve their credit over time.
Drawbacks and Considerations
Higher Interest Rates: BHPH loans typically come with higher interest rates, which can significantly increase the total cost of the UTV.
Shorter Loan Terms: Monthly payments may be higher due to shorter repayment periods.
Strict Payment Policies: Missing a payment can quickly lead to repossession, as the dealership has direct control over the vehicle.
Limited Inventory: BHPH dealerships may offer a smaller selection of UTVs compared to larger, traditional powersports dealers.
Comparison Table: Buy Here Pay Here vs. Traditional UTV Dealerships vs. Online UTV Marketplaces
Dealership Type Financing Options Credit Check Interest Rates Inventory Size Payment Schedule Example Dealerships
Buy Here Pay Here UTV Dealerships In-house, direct financing Minimal or none High (15-29 percent typical) Limited Weekly/Bi-weekly/Monthly RideNow Powersports, Texas UTV, Performance East Inc.
Traditional UTV Dealerships Bank, credit union, manufacturer financing Required Low to moderate (5-12 percent typical) Extensive Monthly Polaris of Gainesville, Bert's Mega Mall, Mountain Motorsports
Online UTV Marketplaces Third-party lenders or cash Varies by lender Varies (can be competitive) Very large (nationwide) Monthly (if financed) ATV Trader, Cycle Trader, eBay Motors
Key Factors to Consider Before Choosing a BHPH UTV Dealership
Reputation and Transparency: Research the dealership's reputation through online reviews, Better Business Bureau ratings, and customer testimonials.
Loan Terms: Carefully review the interest rates, payment schedule, and total cost of the loan. Ask for a full breakdown of all fees and charges.
Inventory Quality: Inspect the UTVs thoroughly and request a vehicle history report if available. Some BHPH dealerships may focus on used or older models.
Reporting to Credit Bureaus: If rebuilding credit is a goal, confirm whether the dealership reports payments to credit bureaus.
Return and Repossession Policies: Understand the consequences of missed payments and the dealership's repossession process.
Popular Buy Here Pay Here UTV Dealerships in the US
RideNow Powersports: With locations across multiple states, RideNow offers in-house financing options for a variety of UTV brands, including Polaris, Can-Am, and Honda.
Texas UTV: Specializing in both new and pre-owned UTVs, Texas UTV provides flexible payment plans and works with buyers with diverse credit backgrounds.
Performance East Inc.: Based in North Carolina, this dealership offers BHPH financing for a range of UTVs and has built a reputation for customer service and transparency.
Buy Here Pay Here UTV dealerships provide a valuable service for buyers who need flexible financing and may not qualify for traditional loans. While they offer accessibility and convenience, it is important to weigh the higher costs and stricter payment policies against the benefits. By researching dealerships, understanding loan terms, and exploring all available options, buyers can make informed decisions and enjoy the freedom and utility that a UTV provides.