The Buy Here Pay Here market continues to grow. According to studies done by Experian, 9.18% of all vehicles financing in 2010 and 14.38% of used vehicle financing were done by BHPH dealers. Last year those numbers grew to 9.8% of all vehicles and 16.62% of used vehicles financed. As the economy continues to struggle, it appears this growth trend will continue for 2012 and beyond. Growth in this market
You have to dig for diamonds; they don’t float to the top. It takes a little work to find the right people to staff your BHPH dealership. One of the keys to success at a DCF dealership rests on the ability of the dealership’s personnel to establish a friendly relationship with the customers. Much of that will depend on the attitude they have towards the customers. If you and your
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
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
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
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
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
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. Your sales people will talk with the customer regularly for a couple of days or maybe even weeks until the sale is
A month or so ago, I wrote a blog about accepting credit and debit cards for payments at BHPH dealerships. The response to that blog has been overwhelming. I am grateful for the comments, calls and emails I have received. The questions I have been asked have been very good ones and, since I’m sure there are other readers who share those questions, I have decided to respond to them here. The
I got a call from one of our clients who we provide consulting for. “Al”, she said, “I’ve got a problem”. She continued, “I just had a payment rejected for a customer we have set up on an automatic payment plan. I tried to call his cell phone and now the number is no good. We did a field call to the residence address we have on file and the
