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Are You a Franchise Dealer Considering the Buy- Here Pay-Here Market? Listen Up! – Part Two
Desperate times call for desperate measures. While some businesses stand on the sidelines watching their business tank, many are taking the bull by the horns by reinventing the way they do business. Let’s face it… the old way of doing business just isn’t the same. There’s no more 9 to 5 workday or extended vacations. It’s time to buck up and take your business to the next level if you want to maintain a competitive edge in this constantly evolving business world.
Specifically, car sales aren’t what they used to be, leaving franchise dealers to search for new ways to secure their bottom line. Today, more companies are taking the Buy-Here Pay-Here (BHPH) approach, opening their doors to a new set of customers.
In part one of this series we discussed why it’s important for dealers to do their homework before embarking on their BHPH adventure. Today, we dig a little deeper into how to start your BHPH journey.
So once you’ve decided to take the plunge into BHPH and hopefully did your homework, what’s next? Well, one of the most important parts of any BHPH business is a comprehensive business plan that outlines and establishes guidelines that will help guide your business’s success. The second most important part of launching a BHPH is creating a budget for your portfolio. If you jump the gun too soon and don’t balance your budget you will quickly become cash-strapped.
Don’t get yourself in hot water by failing to collect monies owed. Without the appropriate procedures in place, you could be left chasing after hundreds of delinquent customers who typically default on their loans or consistently miss payments. One surefire way to protect your vehicle assets and avoid the risks associated with borrowers is to implement an innovative collateral management system. A robust collateral management system (CMS) uses GPS technology to track your vehicle assets in real-time, so you don’t waste time tracking down borrowers over the phone. A true CMS will also help you achieve higher net profits by lowering the amount of skips or repossessions.
Thinking about moving your dealership in the BHPH market, check out Spireon’s GoldStar GPS to help keep your assets on track.