Capital for the LHPH Industry

Creating financial flexibility one dealer at a time

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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