Breakeven – Know It and Manage It

BHPH Dealer Magazine – (August 2019) – Mr. Gary Page, chief executive officer of SDA: If you had more cars on the lot – could you sell them? Simple math suggests that if you sell more cars, dealership profits increase. If it was that easy we would all be retired and relaxing on our private island. One thing is for sure. You have to know your numbers, especially time to breakeven. Breakeven, sometimes referred to as “days on the street,” is the number of weeks before you recoup the cost of the vehicle. This simple math can triple your profits….Read Article

Repeat Sales – Trends in 2019

BHPH Dealer (June 2019)Mr. Gary Page, chief executive officer of SDA: Keep good records of your sales to repeat customers.   According the US Chamber of Commerce, 80% of your future revenues will come from 20% of your current customers.  Customer loyalty never seems to change over time, however the trends in business seem to heavily impact what creates loyalty.  Read article….

BHPH Dealer – Tips for Selling to Millennials

More than $1 Trillion in Purchasing Power

BHPH Dealer Magazine – (April 2019) Mr. Gary Page, chief executive officer of SDA:  According to research from Autotrader, Millennials are the most diverse, most educated, most socially conscious and most tech-savvy group the world has ever known. While there are dozens of conflicting research reports available about why or why not millennials are buying cars. One thing is clear, these buyers are different, and BHPH dealers should be prepared to sell to this large demographic. They are getting more mature, financial capable, and their needs for vehicle ownership is increasing as they age. Even though the BHPH millennials have unique circumstances, they tend to share many of the same attitudes.  Click here to read the article.

Customer Loyalty – It’s NOT about the Best Price

If recent research is accurate, loyal customers provide 60-70% of annual revenues.  Traditionally, Buy Here Pay Here dealers invest most of their time and a significant part of their budget towards marketing and acquiring new customers.  If you consider these facts, we may be miss-allocating precious time and money. [Read more…]

How Successful BHPH Dealers Build Their Business

If you were to ask 1,000 BHPH dealers what one suggestion they would give to other dealers wanting to build their business…most would say “have access to capital”. Yes, it does take money to make money – especially in the BHPH industry. The average ACV has gone up $1,200 the past 2 years, while down payments decreased $117. [Read more…]

SDA Lets You Raise Capital, Keep Your Customers

The credit crunch from several years ago appears to have subsided somewhat as many new companies have surfaced in the subprime auto industry. Compared to six years ago the sources of capital have flip flopped. Upwards of $1 billion of new capital has entered the business in the last three years. In the long term this may not be totally positive – the increased competition has allowed some traditional buy-here, pay-here customers to drive new cars. [Read more…]

Keep those BHPH Customers paying at your Lot!

Studies show that almost 50% of dealership sales are from repeat and referral business.  Savvy dealers really get to know their customer base — because those same customers will bring them more customers!  Buy Here-Pay Here (BHPH) dealers  work hard to bring customers to their lot — why would any BHPH dealer disrupt that valuable customer interaction? [Read more…]

Keep those BHPH Customers Paying at Your Lot – Here’s Why….

USED CAR NEWS – Studies show that almost 50% of dealership sales are from repeat and referral business. Savvy dealers really get to know their customer base – because those same customers will bring them more customers. Buy-here, pay-here dealers work really hard to bring customers to their lot – why would any buy-here, payhere dealer disrupt that valuable customer interaction? [Read more…]

To Sell of Not to Sell…That is the Question

USED CAR NEWS – We estimate that the profit for dealers who keep and service their accounts can be double or triple the profit of selling them.  With bank deposit rates so low, returns on buy-here, pay-here notes are very attractive and an improving economy and declining default rates can make buy-here, pay-here paper a safer investment today. [Read more…]

Keep Your Customers – How Much is Your Customer Worth?

USED CAR NEWS  – SDA’s philosophy that no one is better equipped to keep buy here-pay here customers paying than the dealer who sold them the car. When you choose to partner with SDA for your success, you will not lose the ability to collect your notes.

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