We’ve often heard the phrases “Don’t expect what you can’t inspect”, and “Knowledge is power.” These could not be more true than they are today in the Dealer Controlled Financing industry (Buy Here-Pay Here, Lease Here-Pay Here and Rent-to-Own). Knowing how well your dealership and portfolio are performing compared to industry standards and compared to your own historical performance is invaluable. If you don’t inspect it, you can’t track it.
“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
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.
In the Dealer Controlled Financing business, it is critical that we take responsibility for our customer and make sure we put them in the right vehicle with the right terms to help them succeed. The first step is to explore the customer’s needs and help them to select the correct vehicle for them. I’ll never forget the customer with a wife and 3 children, 2 still in car seats, who
3 Keys to Underwriting Success in BHPH The dealer-controlled financing business is not just about making loans, it’s about making the right loans. Since the dawn of buy here – pay here in the 1950s, dealers have been trying to figure out how to decide whom to lend money to. Over the years dealers have used systems ranging from the “fog a mirror” system where a dealer will approve anyone and
