null What BHPH Dealers Should Know About Subprime Financing
If you’re a Buy Here Pay Here car dealer, chances are you already
offer your own, in-house vehicle financing to car buyers with bad
credit or no credit. If this is the case, you may not see the benefit
in working with subprime lenders or finance companies. However, there
are a number of advantages to offering subprime vehicle financing
through your BHPH dealership.
Understanding Subprime Auto Financing
Similar to financing through a BHPH dealership, subprime auto
financing is offered to car buyers with poor credit scores or limited
credit histories. A key difference between offering subprime and BHPH
financing is that with subprime financing, your dealership works with
one or more third-party lenders or finance companies who are willing
to approve car buyers with non-prime, subprime or deep subprime credit
scores. Subprime lenders also usually report to the three major credit
reporting bureaus, giving credit-challenged car buyers the opportunity
to improve their credit history by making on-time car payments.
Advantages of Offering Subprime Auto Financing
While using your BHPH dealership to provide your own, in-house
financing may seem like a win-win, collecting car payments from your
customers every month may steal valuable time away from selling cars.
Working with a subprime auto finance program like Credit Acceptance
allows BHPH car dealers to continue providing approval to
credit-challenged car buyers for vehicle financing without the hassle
of managing monthly collections.
Credit Acceptance is an indirect subprime auto finance company that
helps streamline the car sales process for car dealers enrolled in our
program. Advantages of offering subprime auto financing through Credit
Competitive advances: Our auto finance programs enable BHPH
dealers to receive upfront advances, which can be used to cover
business expenses and/or invest in more inventory.
Ability to sell nearly any vehicle: Credit Acceptance’s auto
finance programs work well with nearly any vehicle, which gives BHPH
dealers the opportunity to offer subprime car buyers more vehicle
options from their inventory. Contract terms up to 72 months can
help keep payments down and enable customers to finance newer,
Same-day funding with eContracting: With Credit Acceptance’s
eContracting, BHPH dealers can receive same-day funding. Processing
begins as soon as the contract package and funding proofs are
electronically submitted and approved by Credit Acceptance.
Collections: Credit Acceptance has a team of trained
professionals that focus solely on collections, freeing up your time
to buy and sell more cars.
If you are a BHPH car dealer who is looking to increase your
inventory and profitability, Credit Acceptance can help. Sign up on
our Become a Dealer page to learn more about our
subprime auto finance programs.