Inventory Management Inventory Marketing. I like the idea of gps units as well as starter interupters, 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? More and more BHPH dealers are reporting great success in buying vehicles from private sellers. He just adds the cost to the end of the loan! Who should I approve?
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. Inventory must also be addressed in your business plan. Industry statistics provided by Tom Webb of Manheim Consulting this past May showed that the year-over-year auction price of compact cars had increased The question then becomes, how does one do it? In the BHPH business the credit-challenged customer is your lifeblood. 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. Most companies providing capital to BHPH dealers will require that you substantiate your historical business performance in a number of key areas in order to qualify for capital.
Then do two cars, then three, then four. An exception maker must be designated. As part of your business plan, you need to determine your exposure, or busiiness cash in deal CID. The most bbusiness BHPH dealers devote a significant amount of time and energy to establishing effective policies and procedures for their collection departments.
Vol 4, Issue 3. Lastly, you need to perform a loss analysis. Calling references is also a way to make sure the customer gave you the correct information.
If their car breaks down, he repairs it and keeps the payments rolling in! Read more about BDC.
7 Keys to Success in the BHPH Business – Dealer Ops – Auto Dealer Today
Each store follows the same structure which allows for consistency throughout the organization. Even if your lot is full, keep looking for cars! So, each customer must be viewed individually. 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. However, this service is at a price, a BIG price. Why are they happening?
Recent developments in technology have made payment methods such as debit cards and ACH payments possible. Please validate that you are human. The one thing to remember is your personnel needs are affected by the amount of business you are looking to book. A great way to help train them is with payment assurance devices. Customers you might not look at twice on a franchise lot will be your best paying customers on a BHPH lot.
Buy Here Pay Here Training Manual
Then go concentrate on starting up your BHPH business. There are several other portfolio management reports bueiness can be used, but static pool analysis is the industry standard of portfolio value.
You need to remember that most of your customers will pay for the car as long as it is running, so your inventory needs keep running for the life of your loan term. Name Please enter your name. It is important to watch buainess collections versus beginning-of-the-month outstanding total due, beginning-of-the-month number of accounts outstanding, and contractual payments dues.
The wholesaler buys the car and sells it to a note lot for a couple hundred dollars profit per car. The most successful BHPH dealers have a wide range of resources from which to acquire inventory.
7 Keys to Success in the BHPH Business
Your main focus needs to be on Location, Location, Location. The personnel structure of your department is very important.
Who is going to sell the cars? Two years ago, Chris Brown went looking for a way to facilitate sales, trade-ins, and financing for car buyers who prefer to shop online. Currently I have two dealerships with about units total. Hopefully that was helpful in some way. I often see these taken out of the car as quick as a week after delivery. After you sell the car, you have to get them to keep paying you that is the tough part of the business.
Delegate the entire business to free up your time to start a new business.