Academic and economic reviews, such as those featured on Investopedia and Governing , identify several defining traits of this model:
: According to Autotrader , BHPH dealers are highly motivated because they earn profit twice: first on the sale price markup and second on the loan interest. What Is Buy Here, Pay Here Auto Financing? - Experian buy here pay here definition
Legal definitions, such as those used by the California DMV , often characterize a BHPH dealer by two primary criteria: Academic and economic reviews, such as those featured
: They enter into conditional sale or lease contracts that are not paid in full within 30 days. Academic and economic reviews
: To offset the risk of lending to high-risk borrowers, interest rates are significantly higher, sometimes exceeding 30%.