By Amir Dabiri - November 16, 2012
Buy Here Pay Here needs more sophisticated methods of evaluating prospective customers as well as deal structure as money flows through this industry. The solution can be through the use of scoring models. They are designed to maximize your sales in a way of focusing on customer financial strength as opposed to solely the amount of their down payment they happen to have on hand today. As I am referring to “scoring”, please do not be confused with a customer’s credit scores. A customer’s credit score is an analysis of past payment history, amount of debt, and amount of credit versus the dollar amount available.
BHPH scoring is an application of numeric values assigned to underwriting criteria. These models are not designed to lessen repossessions, but more of a better prospective on the customer’s potential to prove that they can pay for a vehicle. You can find scoring models online with autozoom.com or Deal Pack provides two different types of scoring models and debt analysis tools to determine if your prospective customer may be overextending themselves. Deal Pack can calculate exactly what their Bi-Weekly, Weekly, Monthly or Semi-Monthly allowable payment can be based on the debt to income ratio preset by the user. The 1st model has questions preprogrammed such as length at residence? Last repossession and bankruptcy? Number of dependents? If that is not enough we provide a second scoring model in which you can customize your own analysis questions and choose the amount to reduce or increase their overall score based on the answer.
For assistance with setting up your customized scoring model please do not hesitate to call your Deal Pack support staff at 1-800-526-5832.
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.
Request a Demo