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New Franchise dealers are finding themselves a place in the Buy-Here-Pay-Here (BHPH) market as financing for credit-challenged customers gets harder to find, more new car dealers are turning to in-house financing to get the deal done. Detroit’s economic slump and wholesale prices are yet again on the rise, thus franchise dealers are realizing that the option of in-house financing is in fact--- a winning one.
Franchise dealers are becoming more comfortable with BHPH recently as they come to the conclusion that BHPH is not only about moving cars off the lot, but instead about collecting and managing subprime installment contract portfolios. Dealers are watching too many customers who would have been approved for an indirect loan a year ago walk out the door. In response, numerous new car dealers are picking up the BHPH trend and omitting any stigma attached in order to maintain their customer database.
The rise in franchise dealers going the BHPH route comes as no surprise to Ken Shilson, president of the National Alliance of Buy Here, Pay Here Dealers (NABD). He believes restricted credit markets have created a perfect opportunity for dealers of every stripe to offer their own financing.
“There has never been a better time for franchise dealers to increase their profitability with Buy-Here, Pay-Here,” Shilson says. “Dealers are telling me, “We’ve got to squeeze out every penny. We need to find new profit centers.’ Well, with the right vehicles, processes and training, BHPH can turn your wholesale loss into a profit.”
Implementing Technology to Eliminate Risk is Key.
How do Franchise dealers get around the risks associated with in-house financing? It is critical to have the ability to manage portfolios and collections in a timely, systematic manner in order for lenders to stay on board and to prohibit delinquency & repo rates. It’s simply imperative that dealers use GPS Vehicle Tracking that will fully integrate all their data and information. Today’s successful BHPH dealers are privy to real-time data that is obtained from GPS asset protection solutions, and have made them a pertinent part of their business model.
Procon GPS Inc., offers a mainstream option for Franchise dealers who are going the route of BHPH: GoldStar GPS- the fully comprehensive & customizable solution, which represents the leading GPS vehicle tracking device on the market.
To learn more on how to effectively manage your assets in the BHPH world please visit www.goldstargps.com