These dealers often install GPS trackers or "kill switches" to quickly repossess vehicles if a payment is even one day late.
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% . buy here pay here apr
For context, the average used car APR for prime borrowers is around 9.4% , while deep subprime borrowers (who often use BHPH) average 21.6% . Key Factors Influencing Your Rate These dealers often install GPS trackers or "kill
High APRs can lead to "negative equity," where you owe thousands more than the car is worth as it depreciates. Can top 25% to 30% depending on the state and dealership
Can top 25% to 30% depending on the state and dealership.
