Perhaps the single biggest factor on whether a customer can successfully pay off his BHPH or LHPH account with your dealership is how you structure the deal. Poor deal structure will ensure you will have collection issues throughout the loan and will significantly increase your repossession and charge-off numbers. The wrong deal structure will set your customer up for failure. Many conventional Buy Here – Pay Here dealerships charge excessive
1. The Buy Here Pay Here business isn’t the car business, it’s the finance business. Sure, you sell cars as a part of the BHPH business but what you actually are selling is your financing program. The car just happens to be what the proceeds of that financing are used to purchase. In the car business, the higher gross profit the better, profit is realized either at the time of
I ran across an interesting article last week in Business Insider. It was about a survey released in December of last year concerning financial services done by the Federal Deposit Insurance Corporation (FDIC). The survey found that roughly 1 in every 12 US households, or some 17 million adult Americans, are “unbanked”. That means they lack a current checking or savings account. The survey also found that 1 in every 5
Many BHPH dealerships never pulled credit reports in the past. Their philosophy was, “My customers all have bad credit. I don’t need to pay for a report to tell me that.” That philosophy has been changing over the past few years and obtaining a report on all prospective customers is a “best practice” that should be adopted by all BHPH dealers. You need to obtain credit reports on your prospective
An important aspect of establishing goals, creating plans for reaching those goals and managing your time so you can achieve those goals is thinking about your personal philosophy. Whether you are a new car dealer, an independent retail dealer, a dealer controlled financing dealer or unrelated to the car business at all, our personal philosophy stears our actions as we plan, implement and, hopefully, achieve our goals. One of the
Effective time management can help you get more done, reduce your stress and reclaim your personal life. Do you find yourself overwhelmed by the number and complexity of projects that need to be completed at work each day? As the day flies by, do you often feel as if you haven’t paid enough attention to each task because other tasks keep landing on your desk, co-workers interrupt you with questions
A study of Harvard MBA candidates found that 3% had clear written goals and plans for accomplishing them, 13% had goals but had not put them down in writing and 84% had no goals when they were first entering the program. Ten year later the same students were re-interviewed. The 13% that had goals were making twice as much as the 84% with no goals but, even more astounding, the
I posted a blog earlier this week about Goal Setting and I received many comments and emails on the topic. That topic came about almost by accident. I was researching some of the sales training courses available for dealers and salespeople in the automotive industry the other day. Although there are numerous great courses and trainers out there covering subjects from prospecting to closing and everywhere in between, I noticed
Goal setting is an important factor in growing your business. Goals provide direction, motivation and a clear way to measure your progress. Although this article focuses on setting goals for your business, the same steps apply to setting your personal goals, as well. Without goals, and a process for tracking your goals, you may have difficulty seeing the big picture and staying focused. Goal setting helps you create a roadmap
Collections are the most exciting activity at a Dealer Controlled Financing dealership. If your employees have properly worked the other processes at your dealership, then collections can be easy. The dealership can maintain a larger portfolio without increasing personnel expense. If your dealership is charging the highest interest rates allowed, extending contracts beyond the expected life of the vehicle, or treats customers like they are doing them a favor by
