The Buy Here Pay Here market continues to grow. According to studies done by Experian, 13.18% of all vehicles financing in 2016 and 17.38% of used vehicle financing were done by BHPH dealers. Last year those numbers grew to 14.8% of all vehicles and 18.62% of used vehicles financed. As the economy continues to struggle, it appears this growth trend will continue for 2019 and beyond.

Growth in this market has increased the number of dealers interested in finding out more about the Buy Here Pay Here business. An increasing number of those dealers are franchise dealers looking to add a BHPH operation to their existing business but the list of interested dealers also includes independent retail dealerships looking to expand the financing options they offer their customers as well.

Here are 5 areas you need to consider as you determine whether the Buy Here Pay Here business is right for you:


1.     Commitment

Commitment is critical to the success of your Buy Here Pay Here dealership. Establishing this operation is a decision not to be taken lightly. The BHPH business is not the car business, it is the finance business. In traditional retail business, when you finance a vehicle it is someone else’s responsibility to collect that loan. Now that will be your job and effective collections are the key to success in BHPH.

You must commit the time and resources to learn about the BHPH business. There are numerous resources available including MMAD Consulting Group. Commit to learning all you can, training your employees on proper operations and best practices and hire the right people to help you, if necessary.


2.     Capital

Various models of the Buy Here Pay Here business using vehicles with vehicle costs ranging anywhere from $1,000 TO $15,000 have been successful in this business, BUT I quickly learned that unless you have very deep pockets you must stick with $300- to $1000 cars for BHPH!

I Started with just $12000 and very bad credit. So NO you don't need $50-$150k to start your lot!

3.     Customers

The average age of the BHPH customer are usually in the lower middle class or working poor of the local economy. They range from senior citizens on a fixed income to younger people working at fast food restaurants. Despite varying income levels, they typically work every day but do not have any savings. Most are commonly referred to as “blue-collar” workers.

It is likely that, whatever town or city you live in, there are people who need BHPH financing. 

4.     Staff

One of the keys to success  rests on the ability of the dealership’s personnel to establish a friendly relationship with the customers. Much of that will depend on the attitude they have towards the customers. If you and your staff view your customers as inferior or bad, you will have a difficult time, both in sales and collections.

Dealership personnel must be committed to the belief that over 90% of the dealership’s customers are honest and good people. The vast majority of your prospective customers will be in a poor financial situation for reasons that they did not or could not control. We have all heard the expression, “bad things happen to good people”. Family sickness, divorce, job layoffs, overspending due to “easy credit”, major casualty losses, or a total lack of financial self control are conditions that all dealership employees should and must understand.

For more information on hiring for a BHPH dealership.


5.     Marketing 






 I will tell you how to implement my program and never be in the red from day one! 


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