Hi everyone,
I’m helping out at my dad’s buy here pay here car lot and I could use some guidance. I spent several years working at a Ford dealership and learned a lot there. My dad has always kept the business simple with the buy here pay here approach. Now I want to move more into financing options and secure additional deals. I would love to hear any tips or ideas that could help me in taking on this new challenge.
Hey JumpingLion, just throwing my thoughts into the mix here. I reckon it might be smart to start small with the financing side. From what I’ve seen, a bit of experimentation can really help you pinpoint where your system might need a tweak. I’m no expert, but using your day-to-day BHPH experience as a foundation, you might try developing a simple test run – see how a limited set of customers reacts to a new underwriting process. It seems to me that sometimes the simplest approach is best, at least until you have enough data to see what’s working and what isn’t. Also, keep an open ear to any feedback from customers and your team. It could be smart to keep your procedures flexible at first, letting you adjust as you learn. Hope this helps and good luck with the transition!
If you’re moving into financing, make sure you build robust underwriting practices even if you’re used to the simpler cash-driven BHPH model. Transitioning means you need systems that assess risk more deeply. Work on tightening your credit evaluation tools and consider working with a third-party credit agency. Also, diversify your portfolio carefully—financing more than just traditional BHPH loans can make your business resilient. From your dealership background, make sure you know your numbers inside out and adjust your financing criteria as you learn more about default patterns.
Hey, I’ve been following this thread and I have a few thoughts even though I’m not an expert by any means. Given your background, transitioning towards more financing definitely has its challenges. I’d lean towards starting small, maybe trialing the new financing options with a limited selection of customers to see how it goes. Get a feel for how flexible you can be with underwriting guidelines when you have actual data coming in from these deals. It might be helpful to work closely with the numbers at the start – I’m talking about really understanding your margins and default risks. Try to keep it simple at first and avoid overcomplicating the process until you see which adjustments really matter. Just my two cents, but I think taking gradual steps could mitigate a lot of potential headaches while you refine your approach.
JumpingLion, it’s great to see someone with a dealership background diving into the added world of financing. Having worked at a Ford dealership and now managing a BHPH operation, you already know the fundamentals, but financing introduces a new layer of risk management. I think a solid next step is to integrate data analytics into your process—tracking loan performance, defaults, and even customer repayment trends can give you valuable insights, especially as interest rates fluctuate. The market is definitely leaning towards more risk-based pricing these days, so consider how adjustments in risk can be directly tied to slight changes in interest rates or even regulatory shifts. It’s also useful to periodically review your underwriting criteria and compare them with industry benchmarks; that way, you’re prepared for any changes in the lending landscape. In my opinion, blending your hands-on BHPH experience with a smart, data-driven approach might just be the edge you need. Good luck with the transition! 
Given your solid background, the key is to start merging BHPH familiarity with more robust financing practices. When expanding into loans, don’t underestimate the value of a real-time data system to track and forecast risk. Automating parts of your underwriting process not only speeds up decisions but also helps iron out inconsistencies in risk assessment. Tweak your criteria regularly based on actual performance data to stay ahead of defaults and market shifts. It’s all about gradually evolving your credit evaluation methods while keeping an eye on maintaining your bottom line.