[1] Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates.
The BHPH Industry originated primarily in the early 1970s during the United States savings and loan crisis.
Automobile dealers who still wanted to sell cars had to find a way to deal with the increasing price of vehicles relative to income.
Historically, the down payment required on a BHPH loan was generally larger than the total profit on the sale of the vehicle.
Due to the high upfront cost of securing inventory, automobile dealerships frequently have a problem managing their cash flow.