A combination of high unemployment and inflation has led to a flood of foreclosures and bankruptcies. Behind each of these financial calamities, there is a person and/or a family with ruined credit and nearly zero cost. These households often rely heavily on unemployment benefits, weekly pay check and public aid (or a combination thereof) to survive a week. However, nearly everyone still needs to drive, learn more!

The BHPH program is for people who have suffered from a difficult economy. This type of car seller sells cars to people who don’t have credit or money. However, this model can offer high interest rates, substandard cars and unreliable collection actions against car-owners who fall behind with their weekly payments. These businesses not only help people to get the transportation they require for modern living, but they are also often seen as exploiting the poor.

Analysts argue that the BHPH sector should be considered a financial services market and not an automotive market. These companies are often preoccupied in collecting on high-interest loan payments. Those who default on payments will lose their vehicle. The poor, who are already financially strapped, must pay the exorbitant rates charged by BHPH vendors.

A normal car buying process allows shoppers the opportunity to view the car they like and then to discuss financing options. Before showing potential buyers cars, BHPH dealers will discuss the buyer’s credit history, downpayments and payment amounts. BHPH buyers may be required to present themselves to the dealership when they are ready to pay. Many times, BHPH buyers are repossessed if they make late payments.

Other terms could make the BHPH experience for buyers even worse. Dealers may also install tracking devices in cars they sell that will shut down cars automatically if payment isn’t received on time. This can result in drivers being left stranded in unreachable areas with no means of returning home or reaching safety.