The used car market size in the US will increase by 3.91 million units from 2020 to 2025. The global used car market will grow at a CAGR of 6% to reach 2,120.5 from 1,411.5 billion dollars from 2020 to 2030. One of the innovative
For over a century, America has been one of the largest producers of automobiles worldwide. But the savings and loan crisis in the 1970s caused unemployment to rise and challenged people to obtain credit. So, car dealers started financing the cars themselves to balance the increasing car costs concepts for its rapid rise is the BHPH or buy here pay here dealerships in Sweetwater. One in five Americans does not have a credit history, even with Americans having an average FICO score of 711. BHPH is the best option for such people with no credit history, low credit scores, immigrants with no social security number, and other such issues. The used car dealers and those with poor or no credit history — all win from this situation.
In this article, we will know the evolution of the buy here pay here dealerships in Sweetwater and its benefits for anyone to start with the BHPH business.
Evolution of Buy Here Pay Here.
relative to income. Those who could not get a loan from banks and reputed financial institutions that require good credit scores started to buy cars on the BHPH route. The financial crisis from 2007 to 2010 and the recent pandemic increased the buy here pay here dealerships in Sweetwater Miami.
The benefits to car dealers by a buy here pay here dealerships in Sweetwater.
The dealers’ financing for the cars were able to make profits from the sale of the used cars and the interest profits of the loan from the customers.
The car dealers having RFC or related finance companies reduce the risk of selling used cars as both the dealership and RFC have the same ownership.
Being responsible for collecting dues, the RFC could repossess the vehicle if the customer default payments to the car dealers to sell it again.
Helps to manage the car dealers’ cash flow as they need to pay upfront cost for buying inventory and also need to pay the line of credit within 90 days by selling the bought used cars through the BHPH route quickly
With the used car market expanding by thousands of dollars, BHPH helps its dealers sell cars and avoid the risk of not going out of business.
Can reduce the selling of used cars as wholesale merchandise but maximize profit by selling them in retail to customers
Expand the used car buyer customer base as surveys confirm 16.6% of used cars financing gets done by BHPH and have enough more potential for it
Providing maintenance plans to the BHPH, the financed car can increase the service department’s income and ensure the vehicle is in good condition.
The above facts and benefits will convince anyone to start to buy here pay here dealerships in Sweetwater to improve their used car business and boost profits.
