Posts Tagged ‘buy here pay here

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.

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.

22
Nov
11

New Certified Master Dealer Program

The Certified Master Dealers (CMD) program is bringing together the National Independent Automobile Dealers Association (NIADA) and the National Alliance of Buy-Here, Pay-Here Dealers (NABD) for a new training program. This new program was designed specifically to address the special needs of dealers and individuals that run in-house financing. The NIADA and NABD are currently working on the content of the classes and getting input from dealers as well. Topics on the agenda so far include compliance and financial management.

The CMD program was developed in 2001 and requires an intensive 3-day course along with 12 hours of continuing education over the following 3 years. It was developed to assist dealers in growing and running a profitable business.

To read more on CMD’s program, please click here.

10
Nov
11

BHPH Dealers and Service

As a Buy Here Pay Here dealer there are many things that must be monitored and looked at, one of the key areas is BHPH Service Departments. A successful Buy Here Pay Here Service Department should be doing two things:

  1. Cost-effectively and consistently recondition inventory (inventory management) to maintain sufficient lot-ready units at an acceptable quality level.
  2. Support the collections function by providing superior customer service by handling customer repair issues in a timely and cost-effective manner while retaining the customer’s participation in the repair process and building value in your program.

Both things must be done together for a Buy Here Pay Here Service Department to be successful.

To read full article in Dealer Business Journal, please click here.

03
Nov
11

BHPH Marketing Spend

When it comes to marketing and advertising in the Buy Here Pay Here market, Leedom has come up with a composite benchmark of how much dealers are spending per unit sold. The average spend is estimated to be $186 per unit and what that number includes is: Radio ads, TV ads, Print ads, Referrals, Key Chains, balloons and much more. That comes out to be $67,000 per year that the average BHPH dealer is spending on marketing and advertising. Some dealers of course spend less and some more, for example a dealer in Lancaster, CA that owns a chain with 3 different locations is spending $340 per unit averaging 110 units sold putting their yearly spend at about $450,000.

To read full article in Dealer Business Journal, and see how dealers are spending their marketing dollars, please click here.

26
May
11

BHPH customer vs. Traditional buyer characteristics

As we would probably guess, there are a few differences between a traditional buyer and a Buy Here Pay Here customer. At the recent NABD conference AutoTrader.com shared the results of a special BHPH study. One of the things they discovered is that 81% of BHPH customers do “some” to a “great deal” of research before buying a vehicle and although they use the internet just as much as traditional buyers, their car research is not done online. This makes for a pretty big opportunity to target BHPH customers with the right message said, Howard Polirer of AutoTrader.com. Since the BHPH customer is most concerned with finding financing first, that should be the focus of advertising if you want to target BHPH customers. The following are some of the characteristics of the average BHPH customer compared to your average traditional buyer:

  • Higher percentage are female
  • Average age is younger
  • Annual income is less
  • Lower percentage are married
  • Lower credit rating (poor credit rating)

To read the full article in SubPrime Auto Finance News, please click here.

28
Apr
11

NABD conference & academy

This year, the National Alliance of Buy-Here, Pay-Here Dealers will hold the Buy-Here, Pay-Here Dealer Academy, May 16 & 17 before their annual conference which begins May 18. Both the academy and the conference will be held at the Venetian/Palazzo in Las Vegas. The Academy will focus on the key things needed to run successful in-house financing, both operationally and financially.  The combo of the academy followed by the conference should offer a great deal of important educational information to help dealers further sharpen their skills in the area of in-house financing. Ken Shilson, NABD president and founder said that they have assembled a group of the nations leading operators and experts who will share their knowledge. So whether you are new and looking to move into the Buy-Here, Pay-Here market or a seasoned professional you should come away with some useful and helpful information for your buy-here, pay-here dealership.

The overall focus of this year’s conference will be on the image of the buy-here, pay-here industry with a total of 30 speakers planned.

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




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