Making the Switch to LHPH

By Ashton Azizi - March 15, 2022

As a way of increasing profitability in the subprime auto market, many Buy-Here-Pay-Here (BHPH) businesses are making the switch to the newer Lease-Here-Pay-Here (LHPH) business model. What are the benefits of making this switch?

There are advantages that exist for both business and consumers with the LHPH business model. Businesses have the ability to retain the title for leased vehicles, giving them the benefit of ensuring they can claim the vehicle back in case of default. There are also some tax advantages that are not present in the BHPH model allowing businesses to defer sales tax as well as tax deductions on depreciated assets. This makes having a related finance company unnecessary as you can take advantage of the inherent tax benefits without opening another business. Consumers can take advantage of this model as the better cash flow for your business will provide better vehicles for them to get into. All of these benefits, along with fewer regulations, make the switch an easy decision for some.

One important step in deciding to start an LHPH business is acquiring the right DMS system that can handle the differences in calculations, reports, accounting, and all other LHPH functionalities. It is crucial to have a system that can seamlessly handle all the necessary requirements and give you a piece of mind.

Deal Pack offers a solution for all your LHPH needs. With Deal Pack you can feel confident in a DMS that can provide you with all you would need switching over to a LHPH model. Aside from being able to structure leases, run reports, take payments, and perform collections, Deal Pack also gives you the perk of automated real-time accounting which helps eliminate human error and protects you from audits. All these perks along with 24/7 customer support makes Deal Pack the best LHPH DMS available on the market.

To schedule a demo or get more information on Deal Pack’s LHPH capabilities, please reach out to Deal Pack toll free at 800-526-5832 or by email at

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