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Instead of making monthly payments to a traditional lender, you make weekly or bi-weekly payments at the dealership. When you refinance your loan, you pay the remaining balance in one lump sum, and, if your contract includes pre-payment penalties, you’ll have to pay that amount in addition to your principal balance. Bad credit essentially defines you as a high-risk borrower and as likely to default in loan repayment. The Internet doesn't provide much more clarity. The key difference between a traditional dealership and one that strictly specializes in BHPH financing lies in the shopping experience. If you consistently make payments on a BHPH car loan, many dealers will report that positive behavior to the credit reporting agencies. Then, with your monthly payment range and down payment information factored