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.

These reasons may lead investors to pay more for notes, but they are also the same reasons that you many want to keep your loans.

Building a healthy loan portfolio diversifies your business and fives you greater ling-term value, so ask yourself:

  • Do I have the staff and system to manage and collect my paper?
  • Is my market healthy enough to keep my customers employed and paying?
  • Am I selling cars that will run for as the loans run?
  • How important is cross-selling and repeat customer business to my dealership?
  • Do I have access to the capital needed to grow my portfolio?

If you answered “yes” to these questions, then keeping your paper may be the best long-term investment for you.  SDA, Inc. has provided capital to buy-here, pay-here dealers for over 20 years and can customize funding plans especially for you.  Visit us as of call 800-467-5172,