Articles for BHPH Dealer Operations

Profits, Cash and Liquidity

Tuesday, January 26, 2010
Ben Donnarumma - Cash may be king in the car business but cash flow rules! It is the life blood for any business, especially for money vacuums like car dealerships. Just talk to a local banker today about getting a short-term loan for a car dealer; even with the Small Business Administration backing 90 percent of the principal, banks still consider such a loan to be a risky endeavor.

Mastering Buy Here Pay Here

Wednesday, August 12, 2009
Ben Donnarumma - To say the least, BHPH is in high demand today. More and more customers need alternative financing to replace the void left by several non-prime finance companies that have changed their programs over the past year. As the market continues to evolve, several dealers also are looking to BHPH or LHPH (lease here pay here) as a new source for sales and revenue. So, if you are a dealer who is thinking about financing subprime customers yourself, let me give you some words of advice. Just do it! ...

It's Nothing Personal. It's Just Business

Tuesday, July 28, 2009
Ben Donnarumma - Buy here pay here is a very personal business. The moment you forget that simple notion is the moment you will start to lose your perspective on perhaps the single most important element of success in lending. People borrow money because they need it, and if you’re lending it, you better know what the money is for, why they need it and most importantly,...

The Fundamentals of BHPH

Thursday, July 16, 2009
Tom Herald - Special finance is continuing to evolve at a rapid pace. The demand for financing is growing as consumer credit shifts lower on the spectrum and several national non-prime lenders scramble for cash during the credit crisis. This combination of events has created a very challenging dilemma for many car dealers—how to finance customers in the “no-man’s land” of credit? This tier I am calling the “no-man’s land” is for customers with credit scores

Thank God I'm Crazy

Wednesday, June 24, 2009
Ben Donnarumma - The influx of calls and sudden popularity of BHPH reminds me of when I first made the decision to start financing customers myself. My family thought I was crazy ...

Five Perils the Independent Dealer Should Avoid

Tuesday, April 07, 2009
Ben Donnarumma - “Business at buy-here, pay-here dealerships is picking up as bigger, nationwide subprime lenders tighten credit, or quit the business. As other lenders raise their standards, buy-here, pay-here dealerships are the only option for...

Internet Do's and Don'ts

Monday, February 16, 2009
Ben Donnarumma - Buy here pay here dealers need the Internet too. If you are a car dealer today and don’t have a presence on the Internet, you might as well be out of business. The Web and your Web site are too important to sales and marketing, and doing business today without being online would be like trying ...

Improve your Collections Instantly

Sunday, November 23, 2008
Ben Donnarumma - By paying close attention to what is going on, especially when it comes to collections, you can minimize the mistakes being made inside and outside of your company and increase the money you collect...

Control Your Data, Control Your Destiny

Friday, May 25, 2007
Don Miller - With over 900 weeks of data reviewed, we have determined that the single best indicator of how well collections are being managed at a buy here pay here lot is the weekly collection rate...

The Complexities Of The Simplest Business

Monday, December 11, 2006
You might also want to conduct weekly collections meetings and do some role playing on the above situations...

Buy Here Pay Here Pay Plans that Produce!

Friday, September 01, 2006
A BHPH pay plan that is weighted too heavily on sales gross is downright dangerous...

A Primer On Delinquency

Wednesday, August 30, 2006
I have yet to encounter any dealership whose delinquency rate is substantially different than the delinquency goals of that dealer...

Climbing Beyond The Buy Here-Pay Here Plateau

Tuesday, August 22, 2006
I suggest identifying only those customers who make another purchase while the account is active as “retained” customers...

Is A Related Finance Company Right For You?

Monday, August 21, 2006
Such companies serve many valid business purposes and were utilized before any tax advantage scheme was offered.

Collection Do's And Don'ts A Primer On How To Collect More Cash, More Often With Less Effort

Monday, August 14, 2006
Great collectors and collection teams collect cash and in turn “repossess their customers, not their cars.”

Back To The Basics

Monday, August 14, 2006
Your customers will not walk out during the process if they know your dealership will finance them ... today...

Continuing Education For Buy Here Pay Here Dealerships

Monday, August 14, 2006
Trade publications are excellent sources of information and knowledge ... to assist you as a dealer...

The "Repairs After The Sale" Dilemma

Monday, August 14, 2006
If you find a way to eliminate all repossession and charge off that stems from mechanical failure ... you will be more profitable...

Cover Your Assets

Monday, August 14, 2006
If you are in the BHPH business, you are a financier ... Underwriting and collecting is the hard part...

There Is Gold in Your Portfolio!

Friday, August 11, 2006
... everybody markets their existing customers. The question is, how well do those programs get executed?

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