Imagine, if you will, a ladder. This ladder represents the entire credit market and each rung is a bucket of credit scores. At the top is the prime rung. Just below that is near prime and below that subprime. On many dealers' ladders, the lowest rung is below subprime. The problem with this rung is that it moves. Some months this rung is down around 550, some months it is up…

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Written by: Gene Daughtry

In BHPH, like any other automobile dealer, you’ll start the sales process out with a meet and greet. From there you should go in a different direction from other retail outlets. If you have been on a franchise dealer sales floor I am sure you or your sales staffs have joked about wanting a screening machine that they could walk a customer through for an instant credit reading. Since that doesn’t exist, your sales process is probably similar to: 1. “up” your…

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You keep hearing that dealers are making good profits in Buy Here Pay Here. You have decided that you would like to pursue the business. What is your next step? After all you may have been in the car business for years. You understand buying and selling cars. You know how to run a compliant Finance Department and a profitable shop. Isn’t BHPH or LHPH just other ways of financing cars?

The answer is not as simple as it might seem. A BHPH or LHPH operation takes…

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Training and Attitude Are the Keys to a Smoothly-Run BHPH Operation

Do you enjoy what you do each work day? Maybe I’m a little “off,” but I enjoy the craziness of a very busy day. You know—the days where so many folks are on the lot it reminds you of a county fair. Everybody’s phones are ringing almost nonstop. There is a line at the payment window. Inside your showroom, the employees and…

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Here's a good rule of thumb for you about new technology: if it limits customer interaction it's probably not a good idea to go with it. That is, if a new technology, no matter how much time it saves you, takes AWAY from your ability to build relationships with your customers, then you're better off without it. Earlier, I was talking with B.A. Nerison,…

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Imagine a ladder. On this ladder there are 5 rungs. These rungs are labeled Prime, Near Prime, Sub Prime, Below Sub Prime and BHPH. These are all the various credit categories your customers fall into. People are moving both up and down this ladder as their circumstances change and their credit improves or weakens. If you have a method in place to sell and finance all 5 categories then you can serve all of these customers. Now, imagine the bottom rung is missing. As things happen in your… Continue