Name Please enter your name. One of my clients has a BHPH location that does 20 deals a month. 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 formal cash flow projection based on your specific business model is one of the most important steps to take in identifying your capital requirements. Here’s a breakdown of some key benchmarks:. From time to time there will be some exceptions, but it is important to limit those decisions to certain people.

Who is going to sell the cars? I always recommend setting up due dates on paydays. Inventory Management Inventory Marketing. In Ny, I’ve heard when a vehicle is reposessed, you can not simply resell the vehicle, rather you need to bring it to the auction? But remember, collections is about building relationships. However, loan approvals based solely on down payment are simply charge-offs waiting to happen.

Calling references is also a way to make sure the customer gave you the correct information. A slow start to the spring selling season could get a much-needed boost this weekend. The most successful BHPH dealers devote a significant amount of time and energy to establishing effective policies and procedures for their collection departments. I bgph see these taken out of the car as quick as a week after delivery.

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

Page 1 — Sales — This page includes year-to-date and month-to-date figures on retail finance, retail cash and wholesale. I always recommend setting up due dates on paydays.


The degree to which a dealer can successfully combine the key components of deal structure vehicle selection, down payment, weekly payment and loan term will increase the odds of a customer successfully paying off the loan. Then do two cars, then three, then four.

The most successful also continually measure their performance against their peers to improve their own performance.

As part of your business plan, you need to determine your exposure, or your cash in deal CID. A good BHPH business plan must also address cash management, plab management and accounting for losses.

Enter The Buy Here Pay Here Industry With Minimal Headaches

Do not get caught with no inventory. He is in the business of collecting payments also called notes. Your main focus needs to be on Location, Location, Location.

bhph business plan

If there two common reasons people failed in the BHPH business is 1 lack of cash and 2 lack of a disciplined collection system. I apologize for the long discussion, but the information provided will certainly not go to waste.

7 Keys to Success in the BHPH Business

Read more about bhph buy-here, pay-here Deal Structuring initial capital inventory loan portfolios used vehicles. They are in every town. Contact BHPH’s operators in your state and network with them directly.

Capital Successful BHPH ubsiness have a clear understanding of the amount of capital required to operate and sustain their businesses.

They do not fit the traditional lending profile. Is it worth it or am I better off expanding my sub prime indirect lending dealerships and avoiding all of the complications associated with a BHPH? It is important to watch cash collections versus beginning-of-the-month outstanding total due, beginning-of-the-month number of accounts outstanding, and contractual payments dues.


If so, what kind of hbph do they require in order to fund?

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

Although delinquency and charge-offs are facts of life in the BHPH business, successful dealers understand that it is their responsibility to make the customer successful in paying off the loan. Businesss will finance everything.

Defining deal structure is another essential component plzn a BHPH business plan. Not every customer will fit into the underwriting guidelines you have defined. Page 3 — Bottom Line — This page includes information on bank deposits, profit and loss, and year-to-date charge off analysis.

One of my clients has a BHPH location that does 20 deals a month.

No traditional lending institution will lend them money. They can be great tools for any collections department and will drastically improve collections while virtually eliminate skips. It is deciding how you will go about achieving it and staying with that plan. This is BIG business. The temptation is to let a strong down payment drive the loan approval decision.

bhph business plan