The Buy Here Pay Here & Lease Here Pay Here Business and BHPH & LHPH Dealership Management Software

You have to dig for diamonds; they don’t float to the top.

Training employees is an essential activity for all organizations. If you want your BHPH dealership to grow and succeed, your employees must be trained. Training provides employees with the key knowledge and skills that they need to perform their job. Training is also regularly sited as one of the key ingredients in retaining quality employees. Training must not be viewed as a one-time occurrence but, rather, as a continuing part of your business.

How much should you tell a potential customer about the condition of a vehicle in your inventory? You sell your vehicles As-Is and try to make sure the customer understands what this means. How much disclosure makes sense and where should you draw the line between being totally honest and doing what is best for your business?

Much is made of the latest technological advantages in displaying inventory on the Internet, obtaining leads, selling cars, and, for BHPH & LHPH dealers, collecting your money and tracking your customers. The important thing to remember is that the car business always has been and always will be about people.  

Making the decision to be in the Buy Here – Pay Here business can be a difficult one. The BHPH business is unfamiliar territory, even for someone with years of automotive experience. The Buy Here – Pay Here business is not the car business. In the BHPH business, the dealer takes on collection responsibilities normally assumed by the outside lender and that unfamiliar activity is the critical piece to being successful in BHPH. The good news is that there is training and consulting available from outside sources to overcome these issues and assist you in being successful in the BHPH business  

This is part three of an article on what needs to be in your compliance binder. If you have not read parts one and two, I strongly suggest you do so.  Several federal laws and regulations enacted over the last 10 years have required all car dealerships to have written plans outlining your efforts to comply. Failure to do so can lead to some severe penalties. Let’s take a look at several of the most important requirements. In the first part of this 3-part series, we looked at the USA PATRIOT Act and the Safeguards Rule from the Gramm-Leach-Bliley Act. In the second part, we looked at the Red Flags Rule from the Fair and Accurate Credit Transactions Act. This third article in the series will look at the Disposal Rule from the Fair and Accurate Credit Transaction Act plus a quick review of 2 other laws you must comply with that don’t require written plans but should be addressed in your compliance binder.

This is part two of an article on what needs to be in your compliance binder. If you have not read part one, I strongly suggest you do so.  Several federal laws and regulations enacted over the last 10 years have required all car dealerships to have written plans outlining your efforts to comply. Failure to do so can lead to some severe penalties. Let’s take a look at several of the most important requirements. In this first part of this two-part series, we took a look at the USA PATRIOT Act and the Safeguards Rule from the Gramm-Leach-Bliley Act. In this second part, we’ll look at the Red Flags Rule from the Fair and Accurate Credit Transactions Act. The third article in the series will look at the Disposal Rule from the Fair and Accurate Credit Transaction Act plus a quick review of 2 other laws you must comply with that don’t require written plans but should be addressed in your compliance binder.

If your first though when you read this title was, “What’s a compliance binder?”, you must read this article.

If you have a compliance binder, this article will be a good review to make sure that binder contains everything it should. Several federal laws and regulations enacted over the last 10 years have required all car dealerships to have written plans outlining your efforts to comply. Failure to do so can lead to some severe penalties. Let’s take a look at several of the most important requirements. In this first part of a 3-part series, we’ll take a look at the USA PATRIOT Act and the Safeguards Rule and the Privacy Rule from the Gramm-Leach-Bliley Act. In the second part, we’ll look at the Red Flags Rule from the Fair and Accurate Credit Transactions Act. The third article in the series will look at the Disposal Rule from the Fair and Accurate Credit Transaction Act plus a quick review of 2 other laws you must comply with that don’t require written plans but should be addressed in your compliance binder.

In my last article, we discussed the importance of having the right collectors for your DCF dealership. Once the sale or lease is completed, no one will have more contact with your customers than your collectors. If you fail to hire, manage and train the right collectors, it will be very difficult for you to actually realize the profits you generated during the sale or lease of the vehicle. Without successful collectors, cash flow will suffer, perhaps even to the point where your dealership becomes starved for cash and cannot function properly.

Effective collections is the lifeblood for any dealer engaged in dealer controlled financing. You’ve sold or leased the vehicles but you won’t realize the profits you made or produce the cash necessary to replenish the inventory or pay the bills until you collect on what is owed you.