Archive for December, 2011

09
Dec
11

BHPH Business, Not All Bad News. . .

Negative publicity for the Buy Here, Pay Here business lately in a couple of California newspapers. The scrutiny of the Buy Here, Pay Here business is nothing new but some industry experts are chiming in to let all know that there are lots of positive points to the Buy Here, Pay Here business. Counsel for the National Independent Automobile Dealers Association (NIADA) said, buy-here, pay-here plays a vital role in getting people back to work and keeping them employed and “if you want to get the economy growing, people need access to affordable transportation”. So it’s not all bad news for those in the Buy Here, Pay Here business and most importantly for those that need to, are able to take advantage of it. Experian Automotive analysis found that, “buy-here, pay-here attracted better vehicles and better customers than many believe.” And, “only 8 percent of the cars in the buy-here, pay-here deals Experian looked at had major issues reported in AutoCheck vehicle history reports”.

To read the full article in Used Car New, please click here.

06
Dec
11

According to KBB, Used- Vehicles Prices Going Up in 2012

According to Kelley Blue Book, they are telling customers that if they plan or need to buy a used car soon to do it before the end of the year. KBB is expecting used car prices to rise 4-6% at the start of the coming year, so it looks like the best time to buy would be now. Overall the car market has really cooled down, especially since new car inventories are getting back to normal levels. KBB says we will see an expected decline in the 4th quarter but projections show values going back up in 1st quarter of 2012.

The end of this year has seen 5 consecutive months where used-vehicle prices have dropped with October values dropping 2.6% overall. Since June of this year prices have dropped 10% and fuel-efficient vehicles have seen an even bigger drop of 20%, but this decline won’t carry over into 2012.

To read more in F&I Magazine, please click here.

02
Dec
11

BHPH & Payment Assurance Devices

Payment assurance technology is there to make the job of Buy Here Pay Here dealers easier. . .ideally. A payment assurance device can be an essential part in improving collections for a dealer as well as managing inventory and if it comes down to it, make it easier to repossess a vehicle. At this year’s National Alliance of Buy Here, Pay Here conference Ken Shilson shared results of a study that found that “80 percent of the respondents said the devices lower the risk of default which allows them to sell higher value vehicles with less risk.” Having said that, the device can do these things if and when it is used properly and by properly meaning that the customer knows it is being used. Some dealers will have a GPS device on a customers car but fail to let the customer know. By not disclosing that a vehicle has a GPS device, the dealership is at risk of being sued which a dealership in Florida realized when they failed to tell a customer about the GPS on his car.

To read more about this in Used Car News, please click here.




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