Capital for the LHPH Industry

Creating financial flexibility one dealer at a time

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LHPH Training School – NIADA

By: Kevin Londerholm June 12, 2019

There are many resources available to dealers interested in learning more about Lease-Here Pay-Here. NIADA is offering a LHPH Training School that is a blueprint for learning the LHPH business.

The 2-Day Certification Program will cover:

  • The challenges and opportunities with leasing
  • Key drivers to success with leasing
  • Leasing terminology
  • Marketing, advertising, and merchandising ideas
  • Mechanics of a lease payment structure
  • Depreciation and residual value metrics
  • Compliance awareness, including Regulation M
  • Best practices for deal structure, underwriting, and collections

For more information and the dates for the next LHPH Training School, contact Mark Dubois by phone (888) 906-8283 or by email at mark@niada.com.

Here is a link to the NIADA YouTube Channel: https://www.youtube.com/watch?v=0c4DGG2c994


LHPH Deal Structure

By: Trevor Watson April 29, 2019

New dealers to LHPH, and those who are transitioning from BHPH to LHPH, tend to initially omit some key opportunities inherent in a well-structured lease.  These fees represent some of the many advantages of the LHPH model when compared to a traditional BHPH deal.  Below are ranges for the recommended fees you should be including when structuring your leases:

  • Acquisition Fee             $495-$895
  • Purchase Option Fee    $350-$450
  • Disposition Fee             $350-$450
  • Security Deposit           $500 or greater, maintain consistency
  • Mileage Fees                $0.10-$0.15 per mile
  • Wear & Tear                Determined by the condition at time of return  

Don’t leave money on the table when you are desking your leases, build these into your standard lease agreement to ensure consistency across all your deals and improve profitability. 

Every dealer is different, give us a call and let’s discuss the right levels for your dealership based on your business model.   


2018 NABD Conference – Is LHPH a Better Alternative?

Kevin Londerholm February 4, 2019

Is LHPH a Better Alternative for your dealership? We certainly think so and so do our dealers.

Watch as our Chief Operating Officer, Tim Lawrence, presents on a few different lease-here pay-here models at the 2018 NIADA Conference in Las Vegas.

Lease-here pay-here can bring many benefits to your dealership and has a similar BHPH sales process, however, it requires a slightly different mindset.

See as Tim presents the steps to obtaining your own LHPH Program, differences with BHPH, and main benefits for the customer, dealer, & lender when leasing is offered.

Link to Tim’s Presentation: https://www.youtube.com/watch?v=YpL3GY4frio&t=2s

Fill out your information on our Contact Us page if you are ready to offer a used car leasing program at your dealership!


The Language Of Lease-Here Pay-Here

By: Kevin Londerholm  January 7, 2019

As 2018 comes to a close, we reflect on our year spent attending industry conferences, staying up-to-date on the new tax law effects, and discussing the inner-workings of the lease-here pay-here business model with our current dealers and prospective clients.  

We began 2018 by attending the NVLA Conference where our Founder, Terry Bowdler, won the prestigious Clemens-Pender Lessor of the Year award.  Our Executive Vice President, George Klinke, sat on a panel for the lease-here pay-here track at the same NVLA Conference.  Midway through the year, our Chief Operating Officer, Tim Lawrence, had the opportunity to present to a full room of dealers at the NABD Conference in Las Vegas on the topic of leasing.  We continue to see a growing interest in offering leasing! 

To conclude the year, LHPH Capital hosted a Dealer Summit where LHPH best practices were discussed among our current dealers.  Many dealers reflected on how they made the switch to leasing at their dealership and discussed the changes in their operations.  Besides the accounting and the dealership management software, the biggest change was in the language of leasing.  

Our LHPH Dealers discussed the importance of truly understanding the basics of leasing and having a solid foundation of trained employees at the dealership.  Below is a list of installment loan terms that BHPH dealers would be familiar with.  In the column next to the installment loan terms are the related vehicle leasing terms: 

Installment Loan:       Vehicle Leasing: 

Reg Z                           Reg M

Sales Price                  Capitalized Cost

Down Payment          Cap Cost Reduction

Amount Financed         Adjusted Cap Cost

Principal                        Depreciation

Interest                           Lease Charge

Balloon Payment            Residual

Interest Rate                   Money Factor 

All of our LHPH Dealers shared that once their employees were trained on the Leasing Program and the language of leasing, the employees were pleased to offer newer nicer cars to their customer base for the same monthly payment!  

We would love to discuss these leasing terms with dealers interested in offering a lease-here pay-here program via a phone call (619-222-9990) or email klonderholm@lhph.com.  

LHPH Capital will be attending the Industry Conferences this year and we look forward to seeing you there! 

Happy New Year and much success in 2019! 


Top 5 Lease-Here Pay-Here Advantages

By: Kevin Londerholm

When talking to dealership owners, managers, and employees at industry conferences and at our San Diego office, we are frequently asked what the benefits are for running a lease-here pay-here program as opposed to a buy-here pay-here program.

Among the numerous benefits that used car leasing can provide a dealership and its customers, we listed the Top 5 Advantages for Lease-Here Pay-Here below:

  1. Federal Income Tax Advantage:The NEW TAX LAW provides a huge tax advantage with the ability to utilize 100% bonus depreciation of used vehicle assets in the first year until 2023. The dealer can defer all up-front profit and may not pay much income tax (if at all) for years to come.
  2. Sales Tax Advantage:Benefit both the customer and the dealer. In pay-as-you-go states, the sales tax is calculated only on the actual monies collected by the dealer (i.e. down payment, first payment, acquisition fee). The dealer doesn’t lose the entire down payment to sales tax and can be cash positive at the inception of the deal.
  3. Competitive Advantage:Is a direct result of the dealer’s ability to offer the customer a better car for the same payment without losing profit. This allows the dealer to compete with the aggressive subprime lenders and lease much higher ACV vehicles.
  4. Collateral Control:The dealer has ownership of the leased vehicle (asset) and can recover the vehicle easier and often faster because the dealer is named on the title.
  5. Residual Cash Flow:Is the most dynamic aspect of leasing. Once the dealer’s lease portfolio matures and the leases have completed their terms, the dealer experiences an astonishing influx of cash either by leasing the paid off vehicle again or by wholesaling the vehicle.

Our current LHPH dealer clients and their customers enjoy these benefits, among many others, due to offering a leasing program as their main product.

We would love to discuss these advantages with dealers interested in offering a lease-here pay-here program via a phone call (619-222-9990) or email.

If your dealership is already offering used car leasing to your customers, we especially want to hear from you!


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value our dealers as partners.
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