Understanding Buy Here Pay Here (BHPH) RVs: A Comprehensive Guide to Flexible RV Financing Options

Understanding how BHPH RV programs work, what to expect, and how they compare to other financing options is crucial for making an informed decision. Whether you are new to the RV lifestyle or looking for alternative ways to finance your next adventure, exploring the world of BHPH RVs can provide valuable insights and opportunities. This guide delves into the essentials of BHPH RVs, highlighting their advantages, limitations, and the key factors to consider before making a purchase. By gaining a clear understanding of this financing option, you can better navigate the RV market and find a solution that aligns with your financial situation and travel goals.

Buy Here Pay Here (BHPH) RV dealerships have carved out a significant niche in the recreational vehicle market, especially for buyers who may not qualify for traditional loans due to credit challenges or limited financial history. Unlike conventional RV dealerships that rely on third-party lenders or banks, BHPH dealers provide in-house financing, allowing customers to purchase and pay for their RVs directly through the dealership. This model offers greater accessibility for many buyers but also requires careful consideration of the terms, costs, and responsibilities involved.

What Are Buy Here Pay Here (BHPH) RVs?

BHPH RVs are recreational vehicles sold through dealerships that offer direct financing to buyers. Instead of securing a loan from a bank or credit union, the buyer makes payments directly to the dealership. This arrangement is particularly attractive to individuals with poor or no credit, as BHPH dealers typically have more flexible approval criteria. The dealership evaluates the buyer's ability to pay based on income and employment status, often requiring a down payment and setting up a payment schedule that may be weekly, bi-weekly, or monthly.

How BHPH RV Financing Works

• Direct Financing: The dealership acts as both the seller and the lender, streamlining the approval process.
• Flexible Credit Requirements: BHPH dealers focus less on credit scores and more on current financial stability.
• Down Payments: Most BHPH RV purchases require a substantial down payment, which can vary based on the RV's price and the buyer's financial situation.
• Payment Schedules: Payments are typically made directly at the dealership or through an online portal, often on a weekly or bi-weekly basis.

Benefits of BHPH RVs

• Accessibility for Challenged Credit: BHPH programs enable buyers with low or no credit scores to purchase an RV.
• Quick Approval Process: Since the dealership handles financing, approvals are often faster and less bureaucratic.
• Opportunity to Build Credit: Some BHPH dealers report payments to credit bureaus, helping buyers improve their credit over time.
• Simple Application Process: The process is usually straightforward, requiring proof of income, identification, and a down payment.

Potential Drawbacks

• Higher Interest Rates: BHPH RV loans often come with higher interest rates compared to traditional financing due to the increased risk for the dealer.
• Limited Inventory: BHPH dealerships may have a smaller selection of RVs, often focusing on used models.
• Strict Payment Terms: Missing payments can lead to quick repossession, as the dealership retains ownership until the loan is paid in full.
• Possible Additional Fees: Some dealers may charge extra fees for processing, late payments, or other services.

Key Considerations Before Choosing BHPH RV Financing

• Evaluate your financial situation and determine how much you can afford for a down payment and ongoing payments.
• Research the dealership's reputation, customer reviews, and whether they report payments to credit bureaus.
• Read and understand all terms and conditions, including interest rates, payment schedules, and potential penalties for late payments.
• Inspect the RV thoroughly and consider having a third-party mechanic evaluate its condition before purchase.

Comparison Table: BHPH RV Dealers vs. Traditional RV Financing vs. Peer-to-Peer RV Loans

Feature	BHPH RV Dealers	Traditional RV Financing (Banks/Credit Unions)	Peer-to-Peer RV Loans (Platforms like LightStream, LendingClub)
Credit Requirements	Flexible; low or no credit accepted	Strict; requires good to excellent credit	Moderate; varies by platform
Down Payment	Usually required, often higher	Required, amount varies	May be required, depends on lender
Interest Rates	Higher	Lower	Moderate to high
Approval Speed	Fast, often same day	Slower, more documentation	Fast, online process
Inventory	Limited, mostly used RVs	Wide, new and used RVs	Buyer chooses RV, flexible
Payment Reporting	Sometimes reported to credit bureaus	Reported to credit bureaus	Reported to credit bureaus
Repossession Policy	Strict, rapid repossession possible	Standard repossession process	Standard repossession process
Example Providers	Camping World, McClain's RV Superstores, Paul Sherry RVs	Bank of America, Wells Fargo, USAA	LightStream, LendingClub

Popular BHPH RV Dealerships

• Camping World: Offers a wide range of used RVs and flexible in-house financing options.
• McClain's RV Superstores: Known for their BHPH programs and extensive inventory in the southern region.
• Paul Sherry RVs: Provides BHPH financing for a variety of used motorhomes and travel trailers.

Tips for a Successful BHPH RV Purchase

1. Set a realistic budget and stick to it, considering all costs including insurance, maintenance, and registration.
2. Ask the dealership about payment reporting to credit bureaus if you are looking to rebuild credit.
3. Review the contract thoroughly and ask questions about any terms you do not understand.
4. Consider the total cost of ownership, not just the monthly payment.
5. Inspect the RV carefully and request a history report if available.

Alternatives to BHPH RV Financing

While BHPH RV financing is a valuable option for many, it is important to consider alternatives that may offer better terms or a wider selection. Traditional loans from banks or credit unions typically offer lower interest rates but require higher credit scores. Peer-to-peer lending platforms provide another alternative, allowing individuals to secure loans directly from other individuals or investors, often with flexible terms and competitive rates. Leasing an RV or saving for a larger down payment can also be viable strategies, depending on your financial goals and timeline.

Final Thoughts

BHPH RV dealerships provide a pathway to RV ownership for those who might otherwise be excluded from traditional financing options. By understanding the benefits, drawbacks, and key considerations, buyers can make informed decisions and enjoy the freedom and adventure that comes with owning an RV. Always research your options, compare terms, and choose the path that best aligns with your financial situation and long-term plans.

References

• Camping World
• McClain's RV Superstores
• Paul Sherry RVs
• Bank of America
• LightStream