Capital for the LHPH Industry

Creating financial flexibility one dealer at a time

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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