Page 52 - GIADA-Oct 2017-Final

BUY HERE PAY HERE

The Time is

RIGHT

for BHPH

By David Algood,
Director of Sales and Marketing,AMAC

The Buy Here Pay Here (BHPH) business have consistently averaged over $4,500 per that are looking to enter the market.
can be a great resource to increase cash unit from 2013-2016. AMAC’s BHPH in a Box™ program offers
flow to withstand the economic ups and financing for receivables, floorplan lines of
downs of the car business, while building Many dealers are able to cover most of their credit and simplified insurance tracking.
wealth for multiple generations. When you credit losses with interest income. If your In addition, AMAC provides both a daily
look at independent dealers who have been store could benefit from additional sales with reports package and training to help you
successful for 20 plus years, you find mostly great margins then entering or expanding in run your business more profitably!
BHPH dealers. the BHPH business may be for you.
AMAC’s professional collections staff is
Many of you that are already in or While most dealers realize there are available to handle servicing for those
thinking of entering the BHPH business numerous advantages to being in the dealer that want or need help with
have probably noticed that many finance BHPH business, most do not have sufficient collections. Whether AMAC or the dealer
companies and banks have dropped out of capital to make it work. A dealer looking handles collections, the customer may still
the deep subprime market (credit scores to enter the BHPH business will likely pay at the lot. This will increase sales from
under 550) and have tighten lending need $300,000-$3,000,000 to fund their both repeat customers and referrals. n
related to the subprime market. As the operation. For this reason nearly all BHPH
subprime cycle is getting closer to its end, it dealers use a third party to fund a portion of David Algood is the Director of Sales and
is imperative that dealers adapt quickly and their operation, often times allowing them Marketing at AMAC, a rapidly growing
prepare themselves for the future, making to lower their self-funding needs to less finance company doing business in the
the BHPH business more attractive than than $100,000. Finding a capital provider Eastern half of the United States. Anyone
ever for dealers. that will provide enough money to help wanting more information can contact
you grow steady and profitably, while also AMAC at 704-882-7100 (ext. 7509) or visit
The BHPH business is an excellent choice understanding the BHPH business is very their website at acemotoracceptance.com.
for dealers who do not want their livelihood important.
to be at the mercy of secondary banks. For more, please visit: acemotoracceptance.
The BHPH business can be extremely Ace Motor Acceptance Corporation com/?utm_source=Article&utm_
profitable. The Used Car News data source (AMAC) is a known capital provider for medium=BHPH&utm_campaign=BHPH_
book reports BHPH profit margins average both seasoned BHPH dealers and those article

50 | GIADA Independent Auto Dealer OCTOBER 2017