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How to Start a Buy Here, Pay Here Auto Lot

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Just make sure to base everything off of net income. Additionally, a lot of dealers do not factor overtime into income calculations unless a customer has a long-term job and a proven track record of receiving overtime.

Email Phone I would like info on the following: Leave this field empty: Your Comment Please note that comments may be moderated. Required Leave this field empty: Article News Popular Stories. Dealer Job Finder See more. Afford-A-Car in Ohio has a management office to manage all five of their lots, and all individuals designated as exception makers work out of that office. This design allows them to manage effectively without any additional consulting. The key is underwriting control by a few approved decision, or exception, makers.

Successful BHPH operations, regardless of the number of locations, all seem to have common traits — committed dealers who set policies and procedures and follow them without fail. The most successful also continually measure their performance against their peers to improve their own performance.

Do dealers fear that other states will try and do the same???????? CarBiz has been out of business since Use GPS trackers on borrowers vehicles.

This lowers your loan risk and encourages on-time payments. Easier to locate and recover default account vehicles. I wanna open my own buy here pay here lot. I have a passion for sales and enjoy it. Would love to have my own one day. I recently heard of a company that used GPS combined with an ignition "kill switch" to disable the vehicle if the terms are not met.

I have managed multiple BHPH car lots here in Dallas, Tx and it is normal to install a gps with a kill switch in all of the units we have sold. You guys have to remember when dealing with the sub sub prime customers, you can loose your vehicle very fast. I sell these GPS tracking devices to lots all over the country. Please contact me with Questions. Keep in mind that GPS trackers are only useful if they work. So many of the companies that sell GPS trackers sell faulty devices.

When you think that the only reason to use a tracking device on a Buy here pay here financed car is to locate it when the customer stops paying that is liability that way too high.

The company that I work for has been selling devices all over the country and international for 9 years. Our devices work Don't buy cheap, outdated devices. If you are so inclined to do so, save your money and put it in a" repossession fund" to offset your losses when a customer stops paying. I have had a buy here - pay here business for the last 7 years.

Many of the laws have changed in the business and the systems that people running using Credit Acceptance or new model cars don't work or make the same amount as a true buy here pay here. I developed some tools to aid clients in writing a pro forma to be the foundation of their business plan and later serve as a forecasting tool in managing their business.

As you might imagine, I work with a lot of cash flow and profit projections. And the time to reach positive cash is postponed by seven months! What is the least you could get by with? Consider this — I assisted a dealer in reaching positive cash in less than a year on just over K! I know what you must be thinking, but I was right there myself providing consultation from their first inquiries about the business until their last draw on the line of credit.

Just over K invested percent bank money before they were collecting enough cash to cover overhead and replace inventory! The keys to their extraordinary success? A small but favorable market, low operating costs, and a very diligent buyer.

They are now approaching one million in annual adjusted gross net of repo losses and expanding! As all of the weight loss commercials disclaim in the fine print, these results are not typical.

So, how should you decide your model? Should you calculate based on some financial assumptions and use that information to determine how much capital to allocate? Or will you choose a model based largely on the available cash? Like most consultants experienced with start-ups, I can help with either, but I strongly urge clients to first decide what it is that they are seeking from this investment.

And are all partners or investors seeking the same thing from theirs? This is very important because the answers to these questions are the ones that help to craft a business plan that will produce the desired result. It is great to be the bank! That flexibility affords the opportunity to produce a number of very different investment results, all of which can yield excellent returns. One dealer may be seeking a quick turnaround on the cash with a need for some near-term positive cash flow.

Others may be content to postpone cash back to reinvest and grow.


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So you’ve decided to give it a go. The first thing you need to do is create a business plan for your new buy-here, pay-here operation. Special finance trainer provides the five things your business plan .

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Shilson says it's not easy to borrow money to get into the buy-here, pay-here business. Dealers must have excellent net worth, a solid business plan and a good management team.

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Free buy here pay here car lot buy here pay here car lot Sample Business Plan for buy here pay here car lot - Business Plan # Mastering Buy Here Pay Here August , Auto Dealer Today - WebXclusive you have to do it. I look at it as if I’m funding my own retirement plan. It’s a “mutual fund” where I fund the financing of customers’ vehicles, and they fund my future financial security. BHPH can and will be a very profitable business venture, should.

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