Because they know damn good and well how it will end up. The bank checks credit to see if the person can and will pay.
The BHPH uses people during income tax season, etc. To take all of their initial money and then know they are going to repo it within a month.
Late on a bank loan? You have about 60 days before they repo. Late on a BHPH? You have about as long as it takes the repo truck to drive to your house.
You clearly don't understand how this works.
A BHPH place will do their best to make the customer happy, so that customer can bring his brother, sister, nephew and the whole family to buy there. No one in this business will repo a vehicle that's one week late. They'll call and see what's going on, and negotiate.
BHPH lives of the steady income that the buyers will bring. Repo'ing is a mess, very often a third party that ends up being expensive, potential for legal issues and bad reviews on your business. A repo'ed customer will tell everyone they know that you're no good.
You'll often see a BHPH place waiting longer than 60 days to do anything against a buyer. It's a business like any other and most buyers do honor their weekly payments, which are often in the $40-60 range.
Immigrants have 0 credit score and are often denied by banks. My sister moved to Florida 22 years ago and that was the only way she had to buy a car. To this day she is very thankful to the BHPH company and friends with the owner. He even helped her with building her credit and she ended up buying a condo and a house in the area.
Of course, you'll find bad people anywhere, but your large financing bank is much more evil than your mom and pop local used car lot.
