Understanding the Difference Between Simple and Add-On Interest
By Desiree Bradsher - September 20, 2023
Interest is a fundamental component of financing in the Buy Here Pay Here (BHPH) industry, where dealerships provide in-house financing for vehicle purchases. When it comes to calculating and understanding interest, two common methods are used: simple interest and add-on interest. Simple Interest: Transparency and Cost-Efficiency Simple interest is a....