So. You want to open a buy here, pay here dealership? Getting rich off of other people’s misfortune sounds fun, doesn’t it? Or, how about being able to take advantage of desperate car buyers to make yourself even more money? After all, they need a car and you’re the only person they can turn to at this point.
If that’s what you’re thinking, then you’re a terrible person, and this isn’t the business for you. BHPH dealerships have evolved over the years, and are now considered places of safe haven for bad credit consumers. In other words, this is no longer a quick cash grab business. Rules and regulations have also improved since BHPH dealerships first opened. Therefore, there’s also much more accountability.
So, if your intention is helping consumers that have no where else to go for an auto loan because of their bad credit, then opening a BHPH dealership is right for you. Here’s how to get started…
Things to Consider
When first thinking about opening a BHPH dealership, there are a few things to consider. Primarily, you’ll want to figure out a good location, the right people to hire, training for said personnel, advertising, and inventory. Of course, the forms are a given. But, worry about that after.
In this day and age, pushy car salesmen – and women! – are an immediate turn off. In the BHPH business, this has never been truer. You need to have employees who are caring, willing to go above and beyond.
Location? Simply use common sense. You’ll want to have a place that is frequented by a lot of people in that area. Whether that means positioning your business in front of endless foot traffic in a city, or off a main route. Your location should be easily accessible, and in a good, safe area. Basically, a place that encourages people to visit…and shop.
Make sure you do your research when it comes to advertising, and target the right audience in the right way.
A Ground-Up Business Model
CarBiz, which is based in Sarasota, Florida, offers a great BHPH business model that you should look into. It has all the tools necessary for a startup. After attending the appropriate training classes, all it will take is sufficient capital for startup. You don’t need any prior BHPH knowledge if you’re familiar with the dealership environment. If you aren’t familiar with owning and operating a business of any kind or car dealerships, specifically, then you should learn the basics first.
The cost is just under $11,000 for this start-up program. Once you sign up, you’ll receive a turnkey start-up package with a DCF license, policies and procedures manual, and anything else you might need.
Easy Start-Up Takes Effort to Grow and Prosper
While it’s relatively easy to start-up a BHPH lot, you’ll need to be diligent and dedicated to keep the operation running. Not for just the financing and business portion, but for your customers as well. You’ll need to make sure they are always being treated right by your employees, and are satisfied with their overall shopping experience at your BHPH dealership. After all, without customers your dealership will flop.
Remember, you’re now in the business of hope for consumers who have otherwise run out of options. Operate your business in such a way as to keep hope alive this season and every day of the year.