Capital for the LHPH Industry

Creating financial flexibility one dealer at a time

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LHPH Insights from Katz, Sapper & Miller

Trevor Watson | December 9, 2019

Here is a link to a recent article on the benefits of the Lease-Here, Pay-Here model from a top 100 accounting firm.  Take a couple minutes to read this blog post from Katz, Sapper & Miller.  This firm works with BHPH and LHPH dealers across the country, which gives them a unique and valuable perspective on the industry.

https://www.ksmcpa.com/blog/subprime-automotive-and-the-growing-lease-here-pay-here-model


Looking for more information on Lease-Here, Pay-Here and LHPH Capital?

Kevin Londerholm | December 4, 2019

Are you interested in finding more information, events, and articles about Lease-Here, Pay-Here and how it can benefit your dealership?  Visit our LinkedIn page, https://www.linkedin.com/company/lhph/ for more resources and any upcoming events happening in the LHPH world.


A BHPH Veteran Operator talks to AutoRemarketing about LHPH

Trevor Watson | December 2, 2019

Gene Daughtry has over 20 years of Buy-Here, Pay-Here experience.  Hear his thoughts on Lease-Here, Pay-Here and the opportunities LHPH can offer for both independent and franchise dealers.

https://www.autoremarketing.com/bhph/podcast-daughtry-tips-help-dealers-all-sizes 


BHPH vs LHPH Benchmarks

Trevor Watson | November 25, 2019

Interested in how Lease-Here, Pay-Here dealers stack up to their Buy-Here, Pay-Here peers?  Here is a comparison of recent benchmarks between the two models.  In 2018, LHPH dealers were rolling larger dollar vehicles, on leases that were eight months shorter in term, with the same monthly payment as the average BHPH dealer.

In subprime lending, you need to keep your terms as low as possible to reduce your risk, while still keeping the customer’s payments affordable.  LHPH provides the financial instrument to do just that.


Lease-Here, Pay-Here a Counter-Cyclical Program for Dealers

Trevor Watson | November 18, 2019

According to the New York Federal Reserve’s Quarterly Report on Household Debt and Credit, auto loan and lease originations increased 1 percent overall in the third quarter of 2019.  However, the weakest performance for the quarter came in subprime originations totaling $30.15 billion, down 7.4 percent from the year-ago quarter.

“This was the first negative year-over-year comparison for subprime originations after four straight quarters of year-over-year gains,” according to Automotive News.

https://www.autonews.com/finance-insurance/auto-loan-lease-originations-grow-q3

As subprime losses accelerate in the ABS market and large market share subprime lenders, such as Santander Consumer USA, see defaults exceed Great Recession levels, subprime auto lenders are tightening credit standards and even pulling out of the market all together.

https://www.dallasnews.com/business/autos/2019/10/25/dallas-subprime-auto-lenders-loans-souring-at-fastest-clip-since-2008/

The vacuum left by the retreat of subprime finance companies in the auto space is an incredible opportunity for LHPH dealers.  First, the pool of subprime customers that can not qualify with traditional lenders grows, which translates in to more deals for LHPH dealers in general.  Secondly, LHPH dealers begin to capture the business of customers who are closer to the near-prime or non-prime credit segments, as opposed to the deep subprime customer LHPH dealers have been financing for the last 6-7 years.  The result is both an increase in originations volume and an improvement in their overall portfolio performance, resulting in greater profitability.

For those who have been considering building their own Lease-Here, Pay-Here platform, now is the perfect time to enter the space.  It is a counter-cyclical program well suited for today’s market.  To learn more about how to launch your LHPH business, download our free E-Book here.

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Launching Your Lease-Here, Pay-Here Program

Trevor Watson | November 11, 2019

The barriers to entry for Lease-Here, Pay-Here are not as numerous, or as difficult, as many dealers believe.  In the end, there are only three hurdles holding back dealers from enjoying all the benefits LHPH has to offer their customers and their dealerships. Those three hurdles are:

  • Your Dealer Management System (DMS)
  • Access to Capital
  • Fear of the Unknown – The benefits are clear, but switching from a BHPH model they have used for years to a LHPH model involves change…and change can be frightening

If you follow these “how-to” steps and engage the resources provided throughout our free E-Book, you will find you can create your own LHPH program and take advantage of all the opportunities this model can offer you, your dealership, and your customers.

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Lease-Here, Pay-Here Differentiation

Trevor Watson | November 4, 2019

As a Buy-Here, Pay-Here dealer, how do you differentiate yourself from your competition?

When we ask this question to active BHPH dealers, we have found five common responses from the industry that are outlined below.

Although these BHPH dealers are trying their best to compete in their markets, we have found that each of these responses has an unintended, adverse impact to the dealership.

Here are the five most common ways a BHPH Dealer can attempt to stay competitive and the negative side-effects that accompany the competitive adjustments:

BHPH Differentiator Negative Side Effect
1. We offer lower down payments than our competition. Lower down payments typically mean you have a higher cash-in-deal and experience higher charge offs.
2. We offer lower monthly payments than our competition. If your lower payments are a function of offering older vehicles with higher mileage, you are likely experiencing higher losses in your portfolio due to mechanical breakdowns.

If your payments are lower because you extend your average terms, you are also experiencing higher delinquency and losses in your portfolio.

3. We offer lower costs cars than our competition. Older vehicles with higher mileage equal more breakdowns and defaults.
4. We are more aggressive with our approvals.  Everyone is approved. You can only out run your delinquency and losses to a point.  Lower underwriting standards will eventually catch up to you and run your profitability into the ground when you slow originations.
5. We have “better” customer service than our competitors. We hear this from almost every dealer, and it is on pretty much everyone’s website.  This message doesn’t differentiate your dealership, even if it is accurate.

When we ask LHPH Dealers how they compete in their respective markets, their responses avoid any negative side effects that are listed above.

Lease-Here, Pay-Here Dealers offer programs to their customers that differentiate themselves from their BHPH competitors while bringing the following positive benefits:

  • Offer Lower Monthly Payments (while shortening your average term)
  • Provide Newer Vehicles with Lower Mileage (reduce your mechanical breakdown defaults)
  • Ability to offer lease-return trade-ups to well performing customers
  • Improve customer retention
  • Provide your customers a program that genuinely offers more affordable and reliable transportation than your BHPH competitors
  • No need to sacrifice down payments or the quality of your vehicles for affordability. Stop the “fog a mirror” underwriting now that you can attract higher volume and better clientele.  Keep your average term down while holding payment-to-incomes in line.

 

Learn more about what a Lease-Here, Pay-Here program can do for your dealership by downloading our free E-Book here.

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Thirty Leases Per Month with Two Turns of Your Fleet

Tim Lawrence | October 29, 2019

One of the numerous advantages of Lease-Here, Pay-Here compared to BHPH is the recycling of inventory.  Unlike BHPH, with the lease, the dealer’s vehicle will come back to the dealership when the lease matures to be reconditioned and returned to the lot to be leased out again.

In the video below, you will see how a dealer leasing 30 units a month experiences a dramatic surge in cash flow and profitability as their portfolio matures and they begin recycling their fleet.

To learn more about this and all the other benefits Lease-Here, Pay-Here can offer your dealership, download our free E-Book here.

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Bonus Depreciation

Trevor Watson | October 21, 2019

Depreciation and the dealer’s ability to defer Federal Tax liability is one of top three advantages Lease-Here, Pay-Here dealers cite as the initial reason they considered the product.  In 2018, the Tax Cut and Jobs Act included a section called, “Bonus Depreciation.”  Watch the clip below to learn how Bonus Depreciation has made LHPH even more advantageous to dealers.

Learn more about all the benefits of Lease-Here, Pay-Here by downloading our LHPH E-Book.

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Flexibility to Adapt to Changing Market Conditions

Kevin Londerholm | October 15, 2019

Market conditions in the Auto industry are changing rapidly, which can be disruptive or create opportunity. You may ask yourself; how can my dealership adapt to these new products, ideas, and generation of consumers?

  • Economic cycles
  • Vehicle technology
  • Consumer affordability relative to vehicle cost
  • Ride-share programs
  • Subscription models
  • New ownership models
  • Changing wants and needs of the younger generations

The more flexible your business model, the greater ability you have to adapt to changing market conditions. So, how can you become more flexible? One increasingly popular way to be competitive with the listed factors above is to incorporate a Lease-Here, Pay-Here model. Using a lease as your financial instrument provides the ability to overcome consumer affordability challenges, offer programs for your ride-share drivers, create your own subscription agreement, and maintain your flexibility for whatever is over the next horizon.

Find out more about how an LHPH model can help you effectively navigate rapidly changing market conditions by reading our E-book.

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Lease vs. Loan 101

Tim Lawrence    October 3, 2019

In this short video clip, our Chief Operating Officer, Tim Lawrence, explains the differences between a lease and a loan at the 2018 NABD Conference.  At the most basic level, this is why a LHPH dealer can offer smaller payments, with shorter terms than a BHPH dealer can on the same vehicle.

To find out more about the advantages of a Lease-Here, Pay-Here program, contact us at (619) 222-9990 ext. 1010 or read our FREE E-Book!

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Lease-Here, Pay-Here and Consumer Affordability as Used Car Prices Rise

Trevor Watson | September 30, 2019

The average price of a used car increased 14.8% between 2013 and 2017, and it continues to rise in lock step with new car prices.  As a result, the average monthly car payment has grown year-over-year.  This can be a strain on any car buyer, but particularly for the credit-challenged customer of a Buy-Here, Pay-Here dealership.

Lease-Here, Pay-Here provides an answer to the affordability issue.  Thanks to the structure of a lease, a LHPH dealer can roll a customer on a higher price vehicle and offer that customer the same or lower monthly payments than their BHPH competitor can offer on a cheaper unit.  This means LHPH dealers can adapt to the changing market, lease newer model year vehicles with lower mileage, and still maintain consumer affordability without extending term.

We recognize that affordability and the quality of your vehicles are important to your customers, and to your bottom-line. The Lease-Here, Pay-Here model provides an opportunity to move more units and create new revenue streams, while making it easier for your customers to obtain a vehicle from you and pay full term.

To find out more information about the LHPH model and LHPH Capital’s funding program, click below to read our E-book or call us at (619) 222-9990 ext. 1010.

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LHPH: Collateral Control Benefits

George Klinke | September 24, 2019

Consumer bankruptcy filings are rising across the country and on pace to reach nearly 800,000 in 2019, according to the American Bankruptcy Institute.  Bankruptcies take a significant toll on Buy-Here, Pay-Here dealers, their portfolios, and their profitability.

The Lease-Here, Pay-Here model offers dealers a higher degree of collateral control using the lease as a bankruptcy remote product.  The lease cannot be included in the BK.  There is no redemption for a Chapter 7, or cramdown for a Chapter 13.  The customer has two options, accept the lease and continue making payments, or reject the lease and return the vehicle to the lessor.

To learn more about the collateral control benefits of LHPH, click here to download our E-Book.

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Lease-Here, Pay-Here with EVP George Klinke

Trevor Watson | September 16, 2019

Watch this short clip to hear our EVP, George Klinke, explain what LHPH Capital does:

To learn more about our Lease-Here, Pay-Here funding program, call us at (619) 222-9990 extension 1010.


Are You Cash Negative at the Inception of a BHPH Deal Due to Sales Tax?

Kevin Londerholm | September 9, 2019

A major advantage of a Lease-Here, Pay-Here program is the sales tax advantage that allows dealers to be cash positive at the inception of a deal. For lease-here pay-here dealers 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). Sales tax is then remitted to the state on each lessee payment received for the remainder of the lease. With this structure, the dealer can be cash-positive from the moment they roll the vehicle.

Note: If your state is not listed here, this does not necessarily indicate LHPH will not work for you. Sales Tax is one of many benefits LHPH offers.

Contact us at (619) 222-9990 ext. 1010 to discuss how you can build an LHPH program or learn more from our Ebook!

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LHPH Dealership Interview – Markosian Auto

Tim Lawrence | September 3, 2019

“My experience with LHPH Capital has been nothing but 100% positive!” – Nick Markosian

Read more of the informational interview below to find out why this LHPH dealer principal is so pleased they made the switch from a BHPH program.

What was the original catalyst for your transition from BHPH to LHPH? “There were of course the attractive advantages of fewer regulations, easier repos and depreciation, but the actual catalyst was almost going broke during the 2008 recession and needing the cash flow of $600 more per unit from the decreased sales tax.”
Now that your LHPH portfolio is mature, are there any advantages that caught you by surprise? “The recycling of inventory that came back to us every month in a profitable way was a huge surprise.  There were more expired leases and trade-ins than repos so having 50-60% of our inventory as assets already paid for out generating cash flow again made a huge difference.  I think another surprise was the simplicity of the accounting, especially because we didn’t need a RFC.  The only money on your P&L is the lease payment income; whereas with BHPH it’s all smoke and mirrors.”
What is the typical customers response when they hear leasing instead of buying? “First, I’ll say we’ve never had a customer say they won’t do business with us because we offer leasing.  The two biggest concerns are that they won’t own the car in the end or that it might be an exotic scheme to take advantage of them.  We take that as an opportunity to educate them on the differences and benefits to them and then compare the buying cost to the leasing cost.  In the end, they care most about having a lower payment and knowing they have a way out by turning in the car if they have trouble making a payment.”
What were your greatest obstacles during the transition? “Figuring out how to do leasing with our BHPH DMS was by far the biggest challenge.  We just kind of shot from the hip mainly and didn’t realize how important it was to get the right CPA and DMS in place.”
What has been your overall experience working with LHPH? “Nothing but 100% positive.  Terry is incredibly knowledgeable about our business and has trust and faith in us.  I consider Terry a friend and not just someone who lends me money.  You guys are awesome.”

To find out more about the LHPH model and the benefits your dealership can enjoy, please refer to our E-Book, Lease Here Pay Here, Why Do It & How To Launch It

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LHPH Frequently Asked Questions

Trevor Watson | August 26, 2019

Do you have a Buy-Here, Pay-Here program and are looking to learn more about Lease-Here, Pay-Here?  LHPH has been gaining popularity over the last 10 years as dealerships discover the benefits it can provide. 

Below are a few of the most frequently asked questions when beginning to explore the LHPH model.

What is a LHPH program? – A form of lending designed to assist consumers find reliable transportation who may otherwise not qualify with traditional bank and finance company lenders.
– Similar to BHPH, however, using the lease as the financial instrument instead of an installment loan to gain many unique advantages
– LHPH dealers maintain ownership and often lease the same vehicle several times over the life of the unit resulting in greater profitability
What major benefits are associated with an LHPH program? – Improves cash flow with “pay-as-you-go” sales tax
– Allows the dealer principal to defer tax liability 
– Closes the affordability gap for subprime customers
– Creates new profit opportunities
– Differentiates the dealership and creates a competitive advantage
– Better protection from consumer bankruptcy claims
What are some key differences in the LHPH model?  – The lease instead of the loan
– No need for a Related Finance Company
– Not all DMS systems have a LHPH module
– In order to enjoy the tax advantages, your accounting will look a little different

To read more about the various benefits a LHPH program offers, and learn how to launch your own platform, download our FREE E-Book below.

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BHPH vs. LHPH

By: Caitlin Luke & Zanah Naji  | August 19, 2019

Beyond the positive impact of Federal Income Tax deferral and cash flow enhancement from “pay-as-you-go” sales tax, when the Lease-Here, Pay-Here model is compared with the Buy-Here, Pay-Here model, the benefits of leasing for auto dealers are numerous.

Benefit BHPH LHPH
Return on Asset – Original markup of the car
– Interest received on monthly payments
– Life of the asset per dealership: One turn 
– Original markup of the car
– Rent Factor (interest) received in monthly payments
– Life of the asset per dealership: Two to three turns before end of life
– Markup and Rent Factor on each additional turn
Associated Fees for the Dealer – None – Acquisition Fee
– Purchase Option Fee
– Disposition Fee
– Security Deposit
– Excess Mileage Fees
– Excess Wear & Tear
Affordability for the Customer as the Market Price of Vehicles Increases – Credit challenged customers struggle to meet high monthly payment amounts
– Options are buying cheaper cars or extending loan terms
– Higher chance of loan defaulting
– Credit challenged customer has smaller payments than a similar BHPH vehicle
– No need to extend term to keep the payment down
– Better portfolio performance
Inventory Quality – Dealers forced to sacrifice quality of inventory
– Must buy older vehicles with higher mileage
– Faster deterioration of lower quality vehicles 
– Result: Increased service, increased collections, increased repossessions, and reduced profitability 
– Dealer can buy higher quality inventory for same monthly payment to the consumer
– Opportunity to recycle inventory two or three times (sometimes more)
– Result: Reduced service, reduced collections, reduced repossessions, and increased profitability
Competitive Advantage – Low
– Dealers sacrifice quality and profitability to meet customer affordability
– Saturated market
– High
– LHPH dealer able to offer customers newer model and lower mileage at the same monthly payment as an older BHPH car
– No need to sacrifice quality and profitability
Customer Retention – Standard communication when customer makes payments
– At the end of loan, the customer might return to trade the vehicle, or they may pay off the vehicle without communication
– Minimal opportunity to retain
– Communication is increased as customer comes in for both monthly payments and maintenance
– When customer ends their lease, they must return to the dealer with the vehicle
– An additional opportunity to sell the unit for residual, or lease them another vehicle

To speak with a LHPH employee more about the differences between LHPH and BHPH, please contact us at (619) 222-9990 x 1010.

Or download our FREE E-Book and learn more below:

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Understanding Lease-Here, Pay-Here

By: Trevor Watson   August 1, 2019

Lease-Here, Pay-Here as a method of financing subprime customers is not a new product, however, the prevalence of the Buy-Here, Pay-Here model in dealerships throughout the country means LHPH is not nearly as well understood as BHPH.  This results in a number of misunderstandings about LHPH due to a general lack of easily available information. 

For instance, a common concern you will hear dealers raise when talking about LHPH is the risk of vicarious liability and the cost of insurance to mitigate the risk.  While that was a challenge for LHPH dealers at one time, in 2005 Congress passed the Graves Amendment that effectively bars vicarious liability claims against lessors, unless it can be proven the lessor was truly negligent.  There has yet to be a successful claim against a lessor since the Graves Amendment was enacted. 

While the Graves Amendment is a federal law applicable to all of the United States, on a more regional level, many dealers in Texas have long believed the Sales Tax benefits of Buy-Here, Pay-Here were superior to those of Lease-Here, Pay-here in Texas.  This is another misunderstanding of LHPH and how Sales Tax actually works on a lease in the state of Texas.  Read this article below to learn more about how the process actually works, and how you can make your cars more affordable to your customers while building sales tax credits for your dealership through LHPH in The Lone Star State.   

Check out the link to the article below:  

http://digital.subprimenews.com/publication/frame.php?i=604310&p=28&pn=&ver=html5


LHPH E-Book – Now Available for Download!

Trevor Watson | July 23, 2019

LHPH Capital is excited to announce the launch of a new E-Book, Lease-Here, Pay-Here: Why Do It and How to Launch It

LHPH is growing in popularity and dealers across the country have many questions surrounding the model, its benefits, and what steps they should take to build their own platform. 

To help answer these questions, provide industry resources for additional information, and create a roadmap for those dealers that are ready to start their LHPH program, we developed this FREE E-Book.

Click on the link below to download your copy today!

http://lhph-5346625.hs-sites.com/lease-here-pay-here-why-and-how-to-do-it

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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   October 29, 2018

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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