A good BHPH business plan must also address cash management, portfolio management and accounting for losses. Another option is to hire a consultant to help you keep watch over your performance, or if you are a CarBiz client you can subscribe to an Additional Consulting Package ACP. Underwriting is not an exact science, even though there are several software programs available to help make these decisions more scientific. If you never make exceptions you will lower your risk, but you may miss some good paying, loyal customers along the way. Also included are the figures to compare your results to other active dealers. The largest and most obvious sources of inventory are wholesale auctions.

If there two common reasons people failed in the BHPH business is 1 lack of cash and 2 lack of a disciplined collection system. Then do two cars, then three, then four. When it comes to managing your portfolio, you will need to look at a static pool analysis, which tracks groups of loans until liquidation and projects future losses. A salesman should be able to sell 12 to 15 cars a month, and a collector should be able to collect on to accounts a month. Contact BHPH’s operators in your state and network with them directly. Afford-A-Car in the Dayton, Ohio, area has opened four additional locations since opening their first lot in

Enter The Buy Here Pay Here Industry With Minimal Headaches – Dealer Ops – Auto Dealer Today

Did you factor the additional capital into your cash flow projection? You simply buy cheap cars from the used car sales manager at dealerships.

Avatars by Sterling Adventures. This design allows them to manage effectively without any additional consulting.

7 Keys to Success in the BHPH Business – Dealer Ops – Auto Dealer Today

Sell a lot of cars and make a lot of money! Writing a comprehensive business plan for your new BHPH venture can be very time consuming. I recommend starting small with just one car. If their car breaks down, he repairs it and keeps the payments rolling in! Do most buy here pay here’s have a finance license to charge interest or do they simply mark the car up from the beginning and advertise “no interest”?


I businesss have read that once you get into a buy here pay here, you are no longer in the auto business, you are in the finance business as it is a full time job and a husiness to run.

bhph business plan

These numbers should stay consistent over time, but by watching trends you can micromanage your business. Home Delivery Vehicle sale. Tips for the Hands-off Dealer Although the majority of BHPH dealers are not hands-off dealers, it is possible to run multiple locations with minimal headaches if you hire a general manager to keep tabs on how your business is running.

bhph business plan

Featured Masters No members found. See if they will mentor you, and offer to do the same for them on your business model. A slow start to the spring selling season could get a much-needed boost this weekend. Look at them straight in the eyes with a serious tone and voice and face. He makes profit on the front end the car and the back end the financing!

They sell cars to people who could never get financed at a traditional dealership. Most note lots charge the maximum interest rate your state allows you to charge.

Enter The Buy Here Pay Here Industry With Minimal Headaches

I’m with Jay, I would be businesss in the list of non- recourse indirect lenders. If so, what kind of documentation do they require in order to fund?


bhph business plan

A good BHPH business plan must also address cash management, portfolio management and accounting for losses. There are two separate schools of thought when it comes to setting rate.

Your customers will pay a premium for your vehicles because they need your financing help, but it is important to make it affordable for them while ensuring you can collect the paper. However, loan approvals based solely on down payment are simply charge-offs waiting to happen. Most customers who walk on your lot know their credit is less-than-perfect.

The rest are business decision inquires. He will do all your mechanical work for free in exchange for free rent. This analysis will also point out variations in underwriting and collection policies.

Taking the BHPH Plunge

Over time, you can work to minimize them by identifying trends in losses. Although delinquency and charge-offs are facts of bhpph in the BHPH business, successful dealers understand that it is their responsibility to make the customer successful in paying off the loan. It can be dangerous! This is BIG business. Anyone have insight on that? I like the idea of gps units as well as starter byph, but ive read that legally, the client needs to be aware of the location of the units which in my opinion, defeats the purpose of the unit all togeather?

Employees in your collections department need to know how to handle exit interviews, and how to explain to customers that they are there to help them rebuild their ubsiness.