If you're looking to buy a used car in Greer, Greenville, Spartanburg, or Simpsonville and your credit is less than perfect, you’ve likely come across two financing terms: Subprime Auto Loans and Buy Here Pay Here (BHPH). While they might seem similar at first glance, these two options are actually quite different—and knowing the difference can help you make a smarter decision.
At Auto Works, we specialize in in-house Buy Here Pay Here financing, but we also work with outside lenders when it's the right fit. This blog breaks down the key differences between the two and helps you decide which route makes the most sense for your situation.
What Is a Subprime Auto Loan?
A subprime auto loan is a type of loan provided by an outside financial institution—such as a bank, credit union, or lending company—to people with low or challenged credit scores. Subprime lenders accept more risk, which means they often charge:
Higher interest rates
Larger down payments
Longer loan terms
While subprime loans can be helpful for some buyers, they also tend to come with more restrictions and higher overall costs.
What Is Buy Here Pay Here (BHPH)?
Buy Here Pay Here financing means the dealership itself serves as your lender. You buy the car and make your payments directly to the same place. At Auto Works, this system gives us the freedom to:
Approve buyers directly
Offer flexible down payments
Structure payment schedules around your income
Report on-time payments to credit bureaus
We make the final decision—not a third party. That’s why so many buyers choose Auto Works financing over traditional loans.
Key Differences Between BHPH and Subprime Loans
Feature | Subprime Loan | Buy Here Pay Here |
|---|
Lender | Bank or financial institution | Dealership (Auto Works) |
Approval Requirements | Credit score focused | Based on income & stability |
Down Payment | Often higher | More flexible |
Approval Time | 2–7 business days | Often same-day |
Credit Reporting | Usually reported | Reported at Auto Works |
Payment Options | Set by lender | Weekly, bi-weekly, monthly |
Trade-In Support | Limited | Full Trade-In Value assistance |
Why Buyers Choose BHPH at Auto Works
For many drivers in the Upstate SC area, BHPH just makes more sense. Here’s why:
1. Easier Approvals
If you’ve had:
Late payments
Repossessions
Medical debt
Limited credit history
…you may have a tough time with subprime lenders. But with BHPH at Auto Works, we evaluate your real-world ability to pay, not just your credit score.
Apply today using our simple Pre-Qualification Form.
2. Lower Upfront Costs
Subprime lenders often require down payments of 20% or more. At Auto Works, we keep down payments low—and we offer options like:
3. Faster Approvals
When you finance through Auto Works, you’re not waiting days for a bank’s decision. You could be approved and driving home the same day.
We control the entire process—no waiting, no third-party delays.
4. Local, Personal Service
Subprime lenders are often out-of-state banks. When you choose BHPH, you deal directly with our Greer-based team. We know the community, understand local challenges, and work hard to build long-term relationships, not just push paper.
Meet the team behind your approval: Meet Our Staff
When Is a Subprime Loan Better?
In some cases, buyers with moderate credit (typically 580–650) and stable income may qualify for competitive subprime loan rates that rival BHPH options. If you:
Have some credit built up
Want to finance a newer or higher-priced vehicle
Can afford a larger down payment
…a subprime loan might be worth considering. At Auto Works, we’ll help you explore both paths and recommend the best one for you.
FAQs
1. Do I get to choose between BHPH and subprime at Auto Works?
Yes. We’ll review your application and show you all your available options—then help you choose the best fit.
2. Does BHPH affect my credit?
Yes—positively. We report your on-time payments to major credit bureaus to help rebuild your score.
3. Can I refinance later if my credit improves?
Absolutely. Many buyers refinance or trade up after improving their credit with Auto Works.
4. Will a subprime loan help my credit?
Yes, as long as the lender reports your payments (most do). Just make sure you understand the terms.
5. Which option gets me driving faster?
BHPH is typically faster—many customers are approved and driving within hours.
Let’s Find the Right Financing for You
Whether BHPH or subprime is your best fit, Auto Works is here to guide you from application to approval—with honest advice, fast service, and vehicles you can trust.
Visit us at 816 W. Wade Hampton Blvd, Greer, SC, or explore financing options online:
One team. Two options. All focused on helping you move forward.
