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.