BHPH Dealers: Evaluating Your Customer’s Credit Worthiness

By Deal Pack - September 17, 2012

The title of this blog post may be a little deceiving. As a BHPH dealer you really aren’t concerned with a customer’s credit as much as their ability to pay. If you sell your notes or have them financed by a sub-prime lender or related finance company, they might be more appropriately evaluating your customer’s credit worthiness. At the end of the day it all boils down to the same question….Basically, how much should we risk?


The question is answered by taking a variety of measures from your prospect. Pulling a credit history is a logical place to start. The propensity to pay can largely (and accurately) be predicted by their past behavior. Herein lies the challenge, if they had excellent credit and always paid on time then they wouldn’t be at your lot to begin with. So, if you do pull credit you shouldn’t be surprised with a less than perfect history. In addition to the credit history, several other important factors need to be considered. What other monthly debt are they servicing? What is their income? Is there going to be a co-buyer?


The more accurate information you get, the better decision you can make about whether or not you can risk extending them credit and, if so, how much. While pulling credit and getting a FICO score is easy, can your DMS track, record and display in reports the other critical information to make a credit decision? Do they have the ability to create custom scoring models with income, housing status, and job factors, just to name a few? At Deal Pack, we understand your inventory is a prized possession and have spent a great deal of time in our credit application section to allow you to input dozens of key pieces of information resulting in a comprehensive analysis of the prospect, which will give you piece of mind when deciding to extend credit.

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