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.

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.

New and Used Inventory Crunch – How LHPH Helps

Trevor Watson | June 23, 2020

Every dealer is feeling the impact of the very unique market conditions brought on by the pandemic.  The statewide closures, injection of stimulus funds, moratoriums on repossessions and lease return extensions, combined with pent-up demand have thrown the used car market into whiplash.

Here is an excellent article that dives into the details of the current used (and new) car supply squeeze:

How LHPH Helps Dealers During Supply Challenges

This unforeseen situation has shined a light on an additional benefit of having your own Lease-Here, Pay-Here program:  Recycling of Inventory.  We often promote recycling of maturing leases from your portfolio as a significant advantage of LHPH from a profitability perspective, and it is.  However, the additional benefit of having a mature portfolio of leases with numerous lease returns coming back to each month is:  free inventory.

For dealers who have developed their LHPH program over the last few years, they have 10, 20, 30 cars coming back onto their lots each month, without having to buy those vehicles in the market.  These cars are debt-free, no flooring or lines of credit debt and fees weighing their operations down.  These dealers are not paying $2,000 over book to win the vehicle from their competitors on the block.  Many are still buying additional vehicles for the inventory right now, but they can be selective, thanks to their guaranteed flow of lease returns each month.

Of course, growing and maintaining a lease portfolio to the maturity point takes time, discipline and dedication.  Dealers who may read this and think, “that doesn’t do me any good at this moment,” should remember, we have now seen two significant supply crunches in the last 12 years alone.  With little doubt, there will be more of these events at some point in the future.  Preparing now and building your lease portfolio will allow you to ride out the natural fluctuations of the future used car market, whether those are large or small.

The LHPH Advantage

Kevin Londerholm  |  May 11, 2020

Making the switch from selling retail vehicles to creating an in-house leasing program is a big decision for an independent auto dealer.  After careful planning with their teams and discussions with their lender, each of our LHPH dealers adjusted their business models to offer their own lease-here pay-here program.  As Nick at Markosian Auto explains, the switch from selling retail to creating his own LHPH portfolio was the difference between achieving short-term profit vs. creating long-term wealth.

If you are a dealer interested in creating your own in-house used car leasing program, reach out to us ( (619) 222-9990 ext. 1010 ).  LHPH Capital can help offer suggestions on vendors, accounting firms, deal structure, and more!

LHPH Sales Tax Advantage

Kevin Londerholm  |  May 7, 2020

Are you a BHPH Dealer that is tired of paying state sales tax at the time of the transaction on the sales price of the vehicle?  Are you tired of using the entire down payment for sales tax?  Are you tired of paying state sales tax up-front and immediately being cash-negative at the start of the deal?

It is time you made the switch to LHPH!

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, LHPH dealers can be cash-positive from Day 1.

Watch as Mike North, Partner at the Accounting Firm Katz, Sapper & Miller explains that this sales tax pain that BHPH dealers feel is the the #1 reason they make the switch to LHPH.

The Future of Subprime Auto Finance

Trevor Watson | May 4, 2020

As states and localities begin planning for reopening business and getting back to the “new normal,” everyone is wondering what exactly that will look like for auto finance.  This article from offers some insight.

For dealers currently in a position to look three, six, or twelve months down the road, there are a few takeaways.

  • Subprime customers will still need transportation.
  • Lenders are tightening credit standards and potentially exiting the space which will leave many of your customers without an option for traditional indirect financing.
  • There will be fewer opportunities to hang your subprime deals and you will walk more of your customers for the foreseeable future.
  • Now is the time to ensure your in-house program is dialed in and well capitalized to meet the needs of all your customers over the next twenty-four months.

LHPH Capital continues to fund our existing dealers and take applications for new dealers interested in capitalizing their existing LHPH program, or transitioning to LHPH, in anticipation of the future market conditions.

Contact us to discuss how you can benefit from developing and capitalizing a Lease-Here, Pay-Here program.

(619) 222-9990 ext. 1010

LHPH – I Have a CFO and So Can You

Kevin Londerholm  |  March 18, 2020

At our LHPH Summit hosted late last year, LHPH Capital’s owner and founder, Terry Bowdler, sat on a panel discussing the importance of having a Chief Financial Officer (CFO) at your dealership.  Although many independent auto dealers may not have the volume to warrant a full-time CFO, a fractional CFO is the perfect place to begin getting more strategic with your operations.  A CFO will be able to help you generate accurate financial statements and give you greater insight into your dealership cash flow. As the economy heads into some potentially turbulent times, the help of a fractional CFO could help steer your dealership towards a bright future.  Watch the video below & reach out to us if you are interested in seeking the help of a fractional CFO.


Lease Here Pay Here – Inventory Sourcing

Kevin Londerholm  |  February 12, 2020

When an independent auto dealer begins researching the benefits of creating a Lease-Here Pay-Here Program, one of the most intriguing benefits is the increased profitability from creating greater Return on Asset (ROA).  When a lease-here pay-here deal matures, the dealer can still retain the asset at the end of the customers lease contract.  This provides the dealer with the option to either re-lease the same vehicle again or sell the vehicle at auction.  Re-leasing the vehicle creates additional profitability as a second stream of payments is generated on the same asset with a new customer.

Therefore, successful LHPH Dealers approach the sourcing of their vehicle inventory with the intent to lease a vehicle to two or even three customers during the useful life of the asset.  This mindset of creating the greatest Return on Asset begins with the vehicle purchase for the dealer.  Check out how Nick Markosian (featured at the LHPH Summit 2019) approaches the sourcing of his LHPH inventory below:

LHPH Dealer – Nick Markosian

Kevin Londerholm  |  January 20, 2020

One of the most successful LHPH Dealers in the country, Nick Markosian, attended the LHPH Summit in late 2019.  He was featured in many panels relating to Best Practices, the Subscription Model, and more.  See as Nick introduces his dealership on a 2019 Performance Review Panel alongside other experienced dealers & industry experts.  Attending industry conferences like the LHPH Summit is an excellent way to get one-on-one feedback from the Lease-Here Pay-Here industry’s top performers.

Please reach out to LHPH if you have any questions or would like to schedule a dealership site visit with Nick Markosian!

Lease Here Pay Here Dealer Panel

Kevin Londerholm | January 14, 2020

Every year at the LHPH Summit, our Lease Here Pay Here Dealers reflect on the progress they made in achieving the goals they laid out for their dealerships.  Examples of some goals include revamping their underwriting procedures, opening a new location, increasing portfolio size, or decreasing net charge offs. The goals created by our LHPH Dealers are measurable and they use their weekly team meetings throughout the year to keep their staff focused on the right areas within the business.  Creating a platform at the LHPH Summit to openly discuss past success and/or shortcomings allows the dealers to hold themselves accountable and receive valuable advice from their experienced peers in the industry.  Tim Lawrence, LHPH COO, presented the Dealer Panel in the short video below.  Stay tuned as we highlight our LHPH Dealers and the progress they made in achieving their dealership goals!

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. 

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