Car shoppers are always looking for ways to purchase a vehicle. Not many people have thousands of dollars available to buy a car, so in-house financing is a great way to sell cars fast. Leave the hassle of dealing with credit behind and take financing into your own hands.
Using a BHPH system is much like traditional financing expect you act as the dealership and bank. Being able to take in cash deals, BHPH deals, and access other lends, you ensure that no car shopper walks away empty-handed. A lot goes into a Buy Here Pay Here program, so let's take a closer look at what makes a dealership successful at BHPH deals.
Know Your Market
You need to know your market and buy inventory based on that information. Think about What type of car shoppers you get and what kind of vehicles they are looking for. BHPH appeals to all sorts of shoppers. For example, those who have challenged credit cannot go through other lenders, and younger working people who have not had a chance to establish credit are great candidates for BHPH. If you see these types of car shoppers in your area, you know the market is rich with BHPH opportunities.
BHPH is also a good fit for any dealership that mainly operates on cash sales. A cash dealership generally means your inventory is priced at a 5 - 15 thousand dollar range. Vehicles at this price are great for offering short-term BHPH loans since the monthly payments will be low, and you can build a more substantial customer base by helping more customers drive away. With the proper inventory and customer base, you will no doubt get many accounts. Learning how to manage the accounts is vital to your success.
Use the Proper Software
You will need to get software to help manage your sales and paperwork. When completing a BHPH sale, you'll need to fill out different types of forms, and you need a way to track payments. An excellent way to collect autopayments and give your customers a way to pay online is through Worldpay. Worldpay is a payment processing software that can integrate into your BHPH software so you can track payments and accounts all in one area.
Offering an online payment option for your customers will add to the customer experience. Having a CRM will be crucial to keep track of your previous customers and set reminders for when it's time to get them in a new car. Evaluate your dealership's anticipated sales per month and select a CRM that will support all the features you need.
Different types of CRM in the auto industry will all have unique features, so choosing the right one may not be so easy. Taking the time to analyze how many new customers you need to log in per month is the first step. Then you need to track where these new car shoppers are coming from; for example, if you are promoting your dealership a lot online, then it's safe to say you need a CRM that can automate those profiles from your social media sites to your DMS. Or, if you receive numerous phone calls per month with customers inquiring about your inventory, you will need phone call recording capabilities to track all verbal conversations. Call recordings will allow you to reference back to previous discussions, so you don't miss out on any critical details.
Sell Quality Vehicles
Since BHPH puts the risk back in your hands, you will need to ensure that the vehicles you choose are quality cars. Keep in mind that your customer will be more likely to default on payments if their car breaks down. There is software on the market that helps you chose suitable vehicles to purchase.
Autocheck is an excellent example of software you should get to pre-screen your future inventory. Checking vehicle history reports and generating an Autocheck score will help you identify which cars will fit your lot the best. A high Autocheck score means the car should be on the road for many more years to come.
With these three rules kept in mind, you will be able to add BHPH as an option for your dealership and capitalize on any missed opportunities you otherwise would have missed. Once you have been in business a few months, it's an excellent practice to re-evaluate your market and adjust your inventory to meet car buyers' demands. Make sure to utilize mobile app capabilities to access all your software on the go and keep charts of customer trends on your DMS or CRM dashboard.
Key Takeaways
With these three tips, you will be able to add BHPH as an option for your dealership and capitalize on any opportunities you otherwise would have missed. Once you have been in business a few months, it's an excellent practice to re-evaluate your market and adjust your inventory to meet car buyers' demands. Make sure to utilize mobile app capabilities to access all your software on the go and keep charts of customer trends on your DMS or CRM dashboard.
