The Ideal LHPH Approach within the Ideal DMS System

By Rachel Jurich - January 11, 2021

Lease Here Pay Here (LHPH) has become the best alternative to buying and selling inventory. In these times, consumers are much more hesitant to commit to a vehicle purchase and if they do, it often results in turmoil for the dealer once bankruptcies are filed and repossessions are processed.

The LHPH approach is much more profitable for the dealer as they collect the lease payments during the lease term and once the term has come to an end, they can either a) sell the leased vehicle or b) restock the vehicle back into inventory and lease it again. In addition, the lessee must agree to the lease terms or reject them and return the leased vehicle. There is no longer a need to purchase inventory or lose profit due to depreciation. In addition, Lease Here Pay Here dealers reap much greater tax benefits than with typical vehicle purchase operations. This is due to the deferral of sales tax payments and the minimized initial tax liability.

In order to maximize the Lease Here Pay Here approach and get the most bang for your buck, one must also be utilizing the best possible Dealer Management System (DMS). The DMS must include, but not be limited to inclusive real time accounting and full access to all data in entirety.

Real time, all inclusive accounting is essential to saving time and amplifying efficiency. This means entering a vehicle into inventory, posting a deal, cutting a check, or receipting a payment and all accounting entries are automatically made for you in real time. You then have the ability to pull hundreds of reports to retrieve this data, track all financials, and complete all month end processes in one place. Not finding the report you need? There is also the ability to create custom reports with any and all of the data available to you.

To learn how Deal Pack Pro can meet all your LHPH and DMS needs, please call Support at 1-800-526-5832 or utilize the new Chat feature at: https://dealpack.com/support

Subscribe to Deal Pack Blog