Financial Solutions

Buy Here Pay Here Best Practices: Tips for Dealerships to Maximize Success 2023

Buy Here Pay Here Best Practices: Tips for Dealerships to Maximize Success

In today’s fast-paced and competitive automotive market, it’s essential for Buy Here Pay Here (BHPH) dealerships to implement best practices to stay ahead of the curve. BHPH dealerships offer financing to individuals with poor or limited credit histories, which can be a high-risk endeavor. Therefore, it’s important to develop strategies that minimize risk and maximize profitability. In this article, we’ll discuss some of the best practices for BHPH dealerships to increase success.

Are you a BHPH dealership struggling to keep up with the competition? Do you want to minimize risk and maximize profitability? Keep reading to discover some of the best practices that can help you succeed in today’s fast-paced automotive market.


BHPH dealerships are a vital component of the automotive industry, offering financing options to individuals who may not qualify for traditional loans due to a poor credit history. According to a recent study, approximately 43% of Americans have subprime credit scores, making BHPH financing a necessary service for many. However, BHPH dealerships also face unique challenges such as higher risk, increased regulation, and steeper competition. Therefore, it’s essential for BHPH dealerships to implement best practices to minimize risk and maximize success.

Conduct Thorough Credit Checks

One of the most critical aspects of running a successful BHPH dealership is conducting thorough credit checks on potential buyers. A thorough credit check will help you determine a buyer’s creditworthiness and ability to repay the loan. It’s crucial to verify a buyer’s income, employment status, and outstanding debts to minimize the risk of default. If a buyer has a history of missed payments or excessive debt, it may be necessary to decline the loan or require a higher down payment.

 Set Realistic Loan Terms

Setting realistic loan terms is another essential best practice for BHPH dealerships. It’s important to consider the buyer’s ability to repay the loan and not overextend their budget. Setting realistic loan terms will also minimize the risk of default and increase the likelihood of on-time payments. It’s essential to calculate the total cost of the loan, including interest and fees, and ensure that the monthly payments are affordable for the buyer.

Build Relationships with Buyers

Building relationships with buyers is crucial for long-term success in the BHPH industry. By establishing a positive relationship with the buyer, you’ll increase the likelihood of repeat business and referrals. It’s important to treat buyers with respect, provide exceptional customer service, and work with them to find solutions if they experience financial hardship.

 Implement Efficient Collection Strategies

Efficient collection strategies are vital for minimizing risk and maximizing profitability in the BHPH industry. It’s essential to have a system in place for tracking payments and communicating with buyers who miss payments. Early intervention is key to resolving payment issues and minimizing the risk of default. It’s also important to be proactive in addressing payment issues and work with the buyer to find a solution that is mutually beneficial.


Running a successful BHPH dealership requires a commitment to best practices that minimize risk and maximize profitability. By conducting thorough credit checks, setting realistic loan terms, building relationships with buyers, and implementing efficient collection strategies, BHPH dealerships can increase success in today’s fast-paced automotive market. Additionally, it’s crucial to stay up-to-date on industry trends and regulations to ensure compliance and adapt to changing market conditions. By following these best practices, BHPH dealerships can succeed in a highly competitive industry and provide valuable financing options to individuals with limited credit histories.