What Are Buy Here Pay Here Motorcycle Dealerships?

Buy Here Pay Here (BHPH) motorcycle dealerships represent a unique segment of the motorcycle retail market that caters specifically to customers with credit challenges. Unlike traditional dealerships that connect buyers with third-party lenders, BHPH dealers provide in-house financing directly to customers, acting as both the seller and the lender.

This business model eliminates the middleman and allows the dealership to make all credit decisions independently. Because BHPH dealers assume the financial risk themselves, they can often approve customers who might be rejected by conventional banks or credit unions. The application process is typically streamlined, with decisions made quickly—sometimes within the same day—allowing riders to select a motorcycle and arrange financing in a single location.

How Buy Here Pay Here Motorcycle Financing Works

The BHPH financing process differs significantly from traditional motorcycle loans. When you purchase from a BHPH dealer, you'll typically make a down payment that ranges from 10% to 30% of the motorcycle's price. This initial payment helps reduce the dealer's risk and establishes your commitment to the purchase.

Payment schedules at BHPH dealerships are often structured differently as well. While traditional loans might require monthly payments, many BHPH dealers collect payments weekly or bi-weekly. This more frequent payment schedule helps the dealer manage risk and can sometimes align better with how customers receive their income.

Interest rates at BHPH dealerships are generally higher than those offered by traditional lenders, reflecting the increased risk the dealer takes on by extending credit to buyers with challenged credit histories. Annual percentage rates (APRs) can range from 15% to 30% or even higher, depending on your specific credit situation and the dealer's policies.

Comparing Buy Here Pay Here Motorcycle Providers

When searching for BHPH motorcycle options, it's important to compare several dealers to find the best terms for your situation. Below is a comparison of some notable providers in the BHPH motorcycle market:

ProviderDown Payment RangePayment FrequencyCredit Check Required
RideSmart Motorcycles10-20%Bi-weeklySoft check only
Cycle Credit15-25%WeeklyNo
Easy Rider Finance20-30%MonthlyYes, but all credit types accepted

Motorcycle Dealer offers a nationwide directory of BHPH dealerships with user reviews that can help you identify reputable options in your area. Meanwhile, Cycle Trader allows you to filter searches specifically for dealerships offering in-house financing, making it easier to find BHPH options for the specific motorcycle models you're interested in.

Benefits and Drawbacks of BHPH Motorcycle Purchases

Understanding the advantages and disadvantages of BHPH motorcycle financing is crucial before making a decision. The primary benefits include:

  • Accessibility for riders with poor or limited credit histories
  • Simplified application processes with fewer documentation requirements
  • Faster approval times compared to traditional financing
  • Potential for credit building if the dealer reports payments to credit bureaus
  • One-stop shopping experience for both the motorcycle and financing

However, these advantages come with several drawbacks that must be considered:

  • Higher interest rates than traditional financing options
  • Limited inventory selection compared to larger dealerships
  • More frequent payment schedules that may be challenging to maintain
  • Potential for aggressive collection practices if payments are missed
  • Higher overall cost of ownership due to financing terms

According to Motorcycle Consumer, riders who successfully maintain their BHPH payment schedules for 12-18 months may become eligible to refinance their loans with traditional lenders at more favorable rates.

Finding Reputable BHPH Motorcycle Dealerships

Locating trustworthy BHPH motorcycle dealerships requires research and due diligence. Start by checking online reviews on platforms like Google, Yelp, and the Better Business Bureau. Pay particular attention to comments about financing terms, customer service after the sale, and how the dealer handles payment issues.

Ask potential dealers specific questions about their financing terms, including the interest rate, payment schedule, late payment policies, and whether they report payment history to credit bureaus. Transparent dealers will provide clear, written information about all terms and conditions before you sign any agreements.

Inspect both the motorcycle and the paperwork carefully before committing. Consider bringing a mechanically knowledgeable friend or hiring a motorcycle inspector to evaluate any bike you're seriously considering. Consumer Finance provides resources to help understand your rights when dealing with BHPH dealerships and financing contracts.

Lastly, verify that the dealer has proper licensing according to your state's requirements for both vehicle sales and lending. This information can typically be verified through your state's department of motor vehicles or financial regulation agency.

Conclusion

Buy Here Pay Here motorcycle dealerships provide valuable opportunities for riders who might otherwise be unable to secure financing. While the higher costs and stricter payment terms require careful consideration, BHPH options can be a pathway to motorcycle ownership and potentially better credit with responsible management. Before signing any agreement, thoroughly research dealerships, understand all terms, inspect the motorcycle carefully, and ensure you can comfortably manage the payment schedule. With proper diligence, BHPH financing can help you hit the road on two wheels when traditional financing options aren't available.

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This content was written by AI and reviewed by a human for quality and compliance.