For many years the prevailing philosophy in the Buy Here – Pay Here industry was to sell only to customers near your dealership who could come in every time they got paid and pay you in cash. That philosophy was based on a couple of facts and/or beliefs: If a customer lived more than a 30 minute drive from the dealership, they were more likely to mail in their payments
“In a dark place we find ourselves, and a little more knowledge lights our way.” Many BHPH dealers find themselves in a dark place. Any tax season rush is over, sales are down and delinquency is up. Now is the time to take a good, hard look at your dealership and determine where it can be improved. There are numerous industry magazines, websites and other sources where you can find
We all know that cash flow is the lifeblood of the Buy Here Pay Here business. Without a steady stream of customer payments coming in, inventory begins to shrink, sales dry up, and the dealership withers and dies. But what is it that keeps this lifeblood flowing? It’s your data. Without your data, how would you know which customers still owed you how much money? How would you know what
In previous articles I have discussed the dilemma dealers face regarding Cash In Deal with the current high state of wholesale vehicle prices and additional potential sources for BHPH inventory. This month I’d like to take a look at inventory pricing. After all reconditioning has been completed; the person responsible for establishing the selling prices of your inventory should drive the vehicle. Only after driving the vehicle should he then
Would you like to make more money? If you answered no to that question, you can stop reading. If your answer was yes, you should consider entering the Buy Here – Pay Here business. Retail Cars You Currently Wholesale Buy Here – Pay Here offers you the ability to retail vehicles that you currently wholesale and make more profit. Taking trade-ins that don’t meet the standards for your retail sales
As I analyze data and visit Buy Here – Pay Here dealerships, I am constantly amazed by the amount of overage inventory some dealerships insist on maintaining on their lots. They seem to be unaware or unconcerned about the costs that are associated with this overage inventory and how it can be dragging the performance of their dealership down. Let’s look at a few of the ways stale inventory can
Buying software for your BHPH or LHPH dealership can be a confusing proposition. You know how you want your dealership to work but finding the right software to make that happen is never easy. Constellation is please to announce the release of our new BHPH / LHPH Software Buying Guide. This 12-page guide explains the features you need to consider when evaluating your current software or software you are considering for
The Buy Here – Pay Here industry has had an image problem for years. Too many people remember the trailer sitting on a gravel lot with a few beat-up cars around selling barely running cars at astronomical interest rates to people who couldn’t get a loan anywhere else. Unfortunately, there are still a few of those dealers around and several attacks have been launched at the industry as a whole
In last month’s article we discussed the some of the issues Buy Here – Pay Here and Lease Here – Pay Here dealers face in today’s difficult wholesale markets. We looked at the choices dealers must make in deciding whether to increase their Cash In Deal policy in order to offer vehicles comparable to what they have sold in the past or whether to maintain that CID policy and offer the
I just got off the telephone with a dealer who was complaining he hadn’t been able to buy a single unit at the auction today. He claimed every car he wanted went for over $3500 and, with a cash in deal policy of $2500, average reconditioning expenses of just about $700 and average customer down of just under $800, he just couldn’t make $3500 cost vehicles fit his business model.
