We all know cash is king and the need for cash by BHPH dealers is paramount for success and growth. Access to cash is expensive — floor plan lines, credit lines from banks or loans — all come with high interest rates, fees, and possible penalties. These funding methods also mean that you, the dealer, must collect from the customer and staff a collections team accordingly.
The recent NIADA Used Car Industry Report states that the average total cash-in-deal for BHPH dealers rose 3 percent in 2018 to $6,116 from the previous year. Depending on the dealers finance and business model that average could be far lower. Wholesale prices for the makes, models, in the mileage range BHPH need for successful contracts, have never been higher. The lowest unemployment rate in 50 years means that acquiring and keeping quality personnel is also expensive.
Access to capital and these higher costs have lead many BHPH dealers to consider selling their finance contracts. Glenview Auto Finance has helped many dealers overcome these challenges while continuing to enable the dealer to grow their portfolio.
• When buying notes, we become the collector. Dealers can focus on doing what they do best — selling cars. That means no collectors or a reduced staff, no concerns with late payments, and no contracting repo agents to secure their collateral.
• By selling off notes, dealers avoid high interest rates, and have far more control of their capital acquisition process. They can determine to sell off a portion of their portfolio or all of it.
• BHPH dealers have all the compliance issues related to automotive dealers and finance companies. Selling notes means significantly reducing dealers’ costs and time related to legal and regulatory compliance as related to the finance side of the business.
Give us a call at (704)-754-5008.
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