This term has many names in the used car industry, “Pick-Payment”, “Pick-up Payment”, “Deferred Down Payment”, to name a few. But what does it actually mean and how does it benefit the dealer? In short, a pick-payment is an extension of the amount allotted to the cash down portion on....
In a word: CASHFLOW! Or is that two words (cash flow?)…either way, it’s the biggest benefit to financing your vehicle inventory (commonly called a floor plan). Unless you’ve discovered the ever elusive money tree I’ve heard about all my life, you likely need some assistance when it comes to....
What is a Dealer Management System (DMS)? The term DMS has several different acronyms in many industries, such as department of management services or a document management system. Even in the automotive industry, the term DMS can mean “dealership management system” or “dealer management software” or “dealer management solution.”....
Cash flow is the main artery of a Buy Here Pay Here dealer. Managing how cash is generated and how it's spent is critical to the success of your business. Although your dealership reflects a positive net profit on the financial statement, you may find yourself funding the business out....
It’s that time of month again; you’re getting those fancy fliers about 3 day conventions at the lovely Caesars Palace or the convention at the lovely Ritz Carlton in Orlando. Now you’re thinking should I attend this function? Should I take the family? Most people think of these conventions as....
More than likely your dealership or finance company relies on more than one computer to accomplish your daily tasks and get business done efficiently. Should you have all of your computers networked to a server? If you have a large staff, the answer should be yes. What is a server?....
We live an age where the mantra is "information at your fingertips". With the digital era influencing every aspect of our lives, it is important to leverage these efficiencies in every way possible with your business. One simple, yet effective way to do this is keeping an electronic record of....
There are many reasons for a Buy Here Pay Here operation to report credit to the bureaus each month but all too often these benefits are overlooked. It’s the key intangibles that will help keep your accounts in good standing and reward your business with repeat customers. If you run....
As the owner of a used car dealership, your primary goal is to sell cars, and chances are, that is the function holding your attention, day in and day out. Buy the cars at the auction for a good price, and turn around and get them off the lot. However,....
Interest is the price paid for the use of borrowed money – a fee paid to a lender by a borrower. The two most common types of interest calculation methods used in the Buy Here Pay Here industry today is Simple Interest and Add On Interest (Rule of 78's). ....