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 misallocating precious time and money.

Bain & Co reported that a 5% increase in customer retention can increase a dealer’s profitability by as much as 75%.  We all know that retaining customers is much cheaper than acquiring new customers but is this reflected in our actions and budget?  According to this same research, customers who are satisfied are 67% more likely to buy again and are less focused on price.

Customers become loyal primarily through service.  These simple suggestions may help you build loyal customers:

  • Consider loyalty programs – invest in benefits for paying on time and repeat purchases.
  • Reward referrals – customers are 77% more likely to visit a dealer as a result of a family or friend referral.
  • Focus on service through a friendly and simple payment process. Take the time to get to know your customers.  Greet them by name.

At SDA, we provide Buy Here Pay Here dealers with capital to grow their business.  We also encourage our dealers to maintain the customer relationships and continue to build on those relationships by collecting payments directly – not through a third party.  Call SDA to learn how our 25+ years of experience can help you grow your business, keep your customers, and drive higher profits.

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.

The second suggestion is to “keep your customer”. In the competitive BHPH market dealers need to do everything they can to keep their customers happy.

SDA has been providing capital to BHPH dealers nationwide since 1990. While SDA has many flexible programs – the central theme is that the dealers collect their own accounts and maintain that very important customer relationship.

If you are interested in dealing with one of the oldest, most established providers of capital in the BHPH industry, contact SDA at 800-467-5172 or

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. While this temporarily takes away business from some buy-here, pay-here dealers – the common sentiment is that the customer will return soon. The increased competition has led to lengthening loan terms and rising loan-to-value ratios – a recipe for higher losses. As losses increase many of the new players will shift gears and leave the marketplace. Dealers need to keep this short term phenomenon in mind and associate themselves with some of the trusted long-term providers of capital within the industry. Small Dealers Assistance (SDA) in Atlanta has been one of those consistent capital providers to the buy-here, pay-here industry. For over 24 years SDA has been providing capital to buy-here, pay-here dealers nationwide. SDA provides dealers capital from $10,000 to $1,000,000 and always lets the dealer continue to collect their notes. SDA’s Income Stream Program is the ideal method for buy-here, pay-here dealers to raise capital without giving up control of their customer base. In addition to being one of the oldest, most established, suppliers of capital to the buy-here, pay-here industry, SDA pays the highest advance in the industry – up to 90 percent. SDA provides the money that buyhere, pay-here dealers need, without the negative consequences usually associated with selling your accounts. The dealers that have developed true wealth within the buy-here, pay-here industry have been those who have managed to hold on to their accounts. SDA understands that to run a successful buy-here, pay-here operation access to capital is essential. Whether you are upgrading your inventory, expanding a new or existing lot, loading up on inventory prior to tax time or simply helping stabilize your cash flow needs, SDA can help. For more information on how SDA can provide your buy-here, pay-here dealership capital visit or call (800) 467-5172.

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?

Outsourcing your collection efforts by either selling off your accounts or hiring a third party to collect the accounts may not be the smartest idea.

Dealers do all they can to KEEP their customers — not give them away.

The tricky part is trying to feed a cash hungry machine called buy here-pay here and build your customer base at the same time.

For over 25 years SDA has been the answer for dealers nationwide who want to control their customer base yet need to occasionally raise cash to keep their BHPH business growing.

SDA allows dealers to continue collecting their accounts and build their loyal customer base — unlike other buy here-pay here capital providers.

Keep Your Customers

How Much is Your Customer Worth?

It’s 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.

Let’s say that again, because it’s important to the future of your customer relationships: With other capital providers who buy your retail installment contracts, in many cases, the capital provider takes over collection of your notes. Their collection style can irritate your customers, hurting your reputation within your community and causing you to lose the personal contact with your customer and the ancillary benefits such as referrals and repeat business when it’s time to sell your customer another car.

The SDA philosophy is simple:  We feel no one collects better than the dealer!   Our advice is to not give up control of your customers  just because your finance company requires it.   Instead, we encourage our dealers to use SDA’s finance programs and keep the benefits of maintaining your customer relationships.

Ramping your sales with SDA means not just getting the capital you need now and lowering your floorplan exposure, but also ensuring that your customer continues to do business with you for years to come.

Ready to get the money you need to grow and expand? Apply today.