Hey everyone! I’m thinking about making a move to a buy-here-pay-here dealership and would love to hear from people who actually work at one. What’s the day-to-day work environment like compared to traditional dealerships? I’m particularly interested in understanding the compensation structure and what kind of payment plans or commission rates I should expect. Are there any major differences in how customers are handled or any unique challenges I should know about before making this career change? Any insights would be really helpful as I’m trying to decide if this move makes sense for me financially and professionally.
Former BHPH sales manager here. The money can be decent if you’re good at building rapport with credit-challenged customers, but it’s a different beast than traditional lots. Commission structures vary wildly - some places pay flat fees per unit sold ($200-500), others do percentage of gross profit which can be higher since markups are substantial. The real difference is you’re selling hope as much as cars. Your customers often have transportation emergencies and limited options, so relationship-building matters more than typical sales tactics. Expect to deal with more payment issues, repo conversations, and customers who need hand-holding through the process. The work can be emotionally draining since you’re often someone’s last chance at getting wheels. Volume is usually lower than traditional lots, but profit per unit is higher. If you’re considering the switch, make sure the dealership has solid compliance practices - the regulatory scrutiny on BHPH operations has increased significantly in recent years.
The BHPH space has gotten more interesting lately with all the changes in auto lending. What I’m seeing is that commission structures are getting more creative - some places are moving away from traditional per-unit payouts and doing more backend-heavy compensation since that’s where the margins really live now.
One thing the other responses touched on but I’d emphasize more is the regulatory environment. CFPB has been cracking down harder on BHPH operations, especially around loan servicing and collection practices. This actually creates opportunity if you land at a shop that’s staying compliant - they’re picking up market share from the shadier operators who are getting squeezed out.
The interest rate environment is also shifting things. A lot of BHPH customers who might have qualified for credit union loans a couple years ago are getting pushed back into the dealer finance world. So you might see better quality customers than you’d expect, which can make the job less emotionally taxing than it used to be.
I’d definitely ask about their technology stack too. Places still running paper-heavy operations are struggling with efficiency, while shops with decent CRM systems and automated payment processing seem to be doing better volume-wise. The good operators are also getting smarter about vehicle sourcing with auction prices finally cooling off a bit 
Been at a BHPH place for about 8 months now. Honestly, it’s hit or miss depending on the month. Some weeks I’ll move 6-7 cars and make solid money, other weeks it’s crickets. The commission thing really depends on where you land - my place does a base salary plus commission on the backend financing, which is where the real money is. We make more on the loans than the actual car sales most of the time.
The customer base is totally different though. You’re dealing with people who’ve been turned down everywhere else, so there’s a lot more explaining to do about interest rates and payment schedules. Some customers get it, others… well, let’s just say you’ll have some interesting conversations. The paperwork is also way more involved than regular dealerships because of all the compliance stuff.
Not gonna lie, the repo side of things is rough. You build relationships with these people and then sometimes you gotta have awkward conversations when they’re behind on payments. But if you can handle that and you’re good with people who are in tough spots, the money potential is there. Just make sure you ask about their payment collection policies and how involved sales staff get in that process.