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
I have just returned from the 1st Annual Mid-Atlantic Independent Auto Dealers Association Conference in Atlantic City. It was an excellent conference with 25 educational sessions to assist independent auto dealers. The conference was very well run and, based on everything I heard from dealers in attendance, will continue to grow every year. If you weren’t there, I’d put this one on your calendar as a must attend for next year.
It is a standard practice in the Dealer Controlled Financing business to charge the same interest rate to all customers at a particular dealership but the methods for determining that rate vary widely. There are 3 basic methods for deciding on a rate: 1. Charging the maximum allowed by state law Every state has a law limiting the amount of interest a dealership is allowed to charge. This maximum rate
