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”? Access to capital is one thing; qualifying for the capital you may require is another. Page 4 — Graphs — This page consists of eight graphs including information about the past month. Did you factor the additional capital into your cash flow projection? You make ALL the profit on the deal, the front end gross and the back end gross. These numbers should stay consistent over time, but by watching trends you can micromanage your business. The largest and most obvious sources of inventory are wholesale auctions.

After signing up for this service, dealers receive a turnkey start-up package that includes: Who should I approve? This will limit risk and burnout. Plus the dealer keeps collecting weekly payments! The first thing a BHPH dealer needs to do is find out if a customer can afford a new payment. No traditional lending institution will lend them money. If they have been without a vehicle since the year prior, it is highly likely he or she will return it the first time problems arise.

bhph business plan

The key is underwriting control by a few approved decision, or exception, makers. Topics Essentials Services Close. Also included are the figures to compare your results to other active dealers.

bhph business plan

To reduce cost, let a mechanic rent out a portion of your lot for his business. There are two separate schools of thought when it comes to setting rate.


He is in the business of collecting payments also called notes. I will give you a run down of what I do now, what I have researched and questions I have that I would value very much if I could get some insight on.

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.

Who is going to make underwriting decisions? For those inquiries I would say the following: Howdy said in my best Texas accent! Before you even consider spending a dime on a BHPH business watch YouTube videos on others who run similar businesses.

Buy Here Pay Here Training Manual

I love the idea of having a huge amount buwiness weekly cash flow, but it does sound incredibly stressful. Can a provision be included in the contract be included that tampering, turning off, removing, or otherwise disabling any GPS or starter interrupters would be an incurable default of the contract by the buyer.

Name Please enter your name.

Expert offers a three-point list to help you claim buisness fair share of the Memorial Day market. 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?

This will limit risk and burnout. They are in every town.

7 Keys to Success in the BHPH Business

Increased profits through note creation. They all compare your figures to average, minimum and maximum dealer numbers. The cash flow is incredible.


Writing a comprehensive business plan for your new BHPH venture can be very time consuming. After attending training classes, almost any business-minded person with sufficient capital can open up a lot; no prior in-depth BHPH knowledge is required. They should be autonomous in that you should only be contacted to handle exceptionally sensitive issues.

Each store follows the same structure which allows for consistency throughout the organization. Lastly, you need to perform a loss analysis. Most companies will get a judgement against you? A study of these will all provide some valuable insight.

A great way to help train them is with payment assurance devices. The BHPH business is nothing but consumer finance at its finest. Then do two cars, then three, then four. If you never make exceptions you will lower your risk, but you may miss some good paying, loyal customers along the way.

If every sales associate has the ability to make exceptions, a dealer is likely to wind up with inconsistent buying, adversely impacting the portfolio performance. After signing up for this service, dealers receive a turnkey start-up package that includes: Even if your lot is full, keep looking for cars!