Capital for the LHPH Industry

Creating financial flexibility one dealer at a time

Agility, Technology, and Resilience in LHPH

Trevor Watson | July 22, 2020

A recent article on Auto Finance News, “Surviving Economic hairpin turns”, written by Shaimaa Elk, provides a succinct roadmap for subprime lenders navigating the unique circumstances brought on by the pandemic.

https://www.autofinancenews.net/allposts/operations/risk-management/surviving-economic-hairpin-turns-technology-insider/

Lease-Here, Pay-Here dealerships are actually small community-based subprime lenders, not just car dealers.  They provide and service portfolios of affordable leases on reliable transportation to consumers who cannot qualify for traditional bank financing.  As such, LHPH dealers can find value in Shaimaa’s recommendations for subprime lenders.

While some of these recommendations may appear geared for larger financial institutions, many of these apply directly to LHPH dealer-lenders or can be modified slightly to be applicable.  One example is integrating better payment technology to make the transaction as simple and easy as possible for your lessees who may not maintain a traditional checking account.

Other ideas could include joining ComplyNet through NIADA to ensure regulatory compliance with all the changes we are likely to encounter at the local, state and federal levels throughout this recovery.  In addition, preparing your collectors for remote work is a wise precaution to address now to keep your payments coming in, in the event you need to vacate the dealership for a period.

The list of ideas to build agility and resilience in your LHPH operation is long, but the general concepts laid out by Shaimaa are a good guide to get you thinking down the right path.

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