Converting from BHPH to LHPH
Kevin Londerholm | October 13, 2020
Thinking about switching from BHPH to LHPH?
Most are familiar with the Buy Here Pay Here (BHPH) business model where a dealership sells a vehicle to a consumer and provides the financing on a traditional retail installment sales contract (RISC) for a specific term and APR. The dealer then services the installment loan through its life.
LHPH is similar to BHPH, however, the key difference with LHPH is that the financial instrument offered by the dealership is a used car lease rather than an installment loan.
Changing the approach from SELLING vehicles to LEASING vehicles may seem daunting at first, however, there are some key similarities between the two business models that make the conversion simple for the dealership staff & operations.
Watch below as Tim Lawrence, COO touches on many of these similarities. The conversion from BHPH to LHPH is easier than you think!