Laws: Buy Here Pay Here Car Lot

Buy-here-pay-here (BHPH) dealerships are subject to a combination of federal consumer protection acts and specific state-level regulations because they act as both the auto seller and the lender.

At the federal level, BHPH lots must comply with standard lending and consumer protection laws: buy here pay here car lot laws

: Prohibits dealers from discriminating against applicants based on race, religion, sex, marital status, or age. total finance charge

: Regulates how the dealer (as the creditor) can collect on late payments or conduct repossessions. State-Specific Regulations buy here pay here car lot laws

State laws often provide more targeted restrictions on BHPH operations: Putting the Brakes on Buy Here, Pay Here Dealerships

: Governs how dealers handle credit information. Note that while they may report negative info like defaults, many BHPH dealers do not report positive payments to credit bureaus.

: Dealers must provide a written contract that clearly discloses the APR , total finance charge , amount financed , and the total sale price of the vehicle.