What’s the Difference — and Which One’s Right for You?
If you’re car shopping and your credit isn’t perfect, you’ve probably come across two terms: Buy Here Pay Here (BHPH) and Lease Here Pay Here (LHPH). At first glance, they sound nearly identical. But there are some key differences that can seriously affect your budget, credit, and future flexibility.
At Cars To Go, we proudly offer Lease Here Pay Here because it gives our customers more control, less debt, and better credit-building opportunities — and still includes the option to own the vehicle. Let’s break it all down.
🟡 What Do Lease Here Pay Here and Buy Here Pay Here Have in Common?
Both programs are designed to help customers who may not qualify for traditional auto loans:
✅ In-house financing (no banks or outside lenders)
✅ Credit-friendly approval process
✅ Fast & easy application
✅ Local, personal service
✅ Payment plans tailored to real-life budgets
But the way these programs handle ownership, payments, and flexibility is where the differences come in.
🔄 Lease Here Pay Here (LHPH): Flexibility, Credit-Building, and Ownership Options
With Lease Here Pay Here, you lease the car from the dealership — but you can choose to buy it at the end of the lease for a small residual amount (typically around $2,000).
Key Benefits:
- Lower monthly payments than a traditional loan
- You’re not stuck long-term — upgrade your car every year with no rollover of debt
- When you upgrade, your current lease is marked “Paid in Full” on all your credit reports
- On-time payments are reported to the credit bureaus, helping build or repair your credit
- At lease-end, you can:
- Upgrade to something newer
- Return the vehicle
- Or buy it outright for a low residual value (usually about $2,000)
Who is LHPH great for?
- Anyone wanting to rebuild or build credit
- People who want lower payments
- Families who may need to switch vehicles as needs change
- Drivers who want to keep their options open
- Customers who want ownership, but on their terms
💰 Buy Here Pay Here (BHPH): Traditional Ownership, But With More Risk
With Buy Here Pay Here, you’re purchasing the car from the dealership and making payments directly to them — much like a traditional loan but without a third-party lender.
Key Differences:
- You own the car once it’s fully paid off
- Monthly payments are typically higher
- You’re often locked into longer contracts
- If you want to trade in early, any remaining balance gets rolled into your next deal (that’s called negative equity)
- Some BHPH dealers don’t report to credit bureaus, so your good payment history might not help your credit
Who is BHPH best for?
- Drivers committed to keeping a car for the long haul
- Those who can afford larger monthly payments
- Customers less interested in upgrading often
⚖️ Side-by-Side Comparison
| Feature | Lease Here Pay Here | Buy Here Pay Here |
|---|---|---|
| Vehicle Ownership | Option to buy at end | You own it after payoff |
| Monthly Payment | Lower | Higher |
| Credit Reporting | ✅ Yes (at Cars To Go) | Sometimes |
| Negative Equity | None | Often a problem |
| Upgrade Option | Every year, no rollover | Rare, usually includes rollover debt |
| Lease-End Option | Upgrade, return, or buy for ~$2,000 | N/A |
| Flexibility | Very high | Limited |
| Long-Term Commitment | Shorter | Longer |
🏁 Final Thoughts
Both Lease Here Pay Here and Buy Here Pay Here are built for people who need a second chance. But Lease Here Pay Here gives you more freedom, more flexibility, and better credit-building opportunities — without locking you into long-term debt.
And at Cars To Go, you’re not just leasing…
You’re improving your credit, staying in control, and still keeping the option to own.
Want to explore whether Lease Here Pay Here is right for you?
📍 Visit us at Cars To Go, 101 Sagamore Pkwy S, Lafayette, IN
📞 Call us at 765-448-1500
🌐 Learn more at www.carstogo.org
Let’s get you into the right car — the right way.