If you’ve read my first article for New Car Dealers and Buy Here Pay Here, then you understand the idea of treating BHPH as a separate franchise, so I will assume that you are interested in learning more. This is my 2nd article in the series for new car dealers. Now let’s talk about some suggestions on where to locate your new BHPH franchise.
My first suggestion always is to put your BHPH location away from your new store completely. It prevents confusion for your people and customers.
To begin with, understand that you need to physically separate your inventory from your normal used car operation. The customers you will have, always want the best vehicle for their money. So, if the retail used car inventory is parked in the same row as your BHPH, they will want those vehicles and not the ones they can afford in your program. It is better not to set their standards too high to start with. This also helps your salespeople stay in the BHPH mental state with your customers.
Although I believe that all my customers are equal, I have found in the past that many employees of new car stores feel that the buy here pay here customer is not the same as a retail customer. They therefore, may treat them differently. One of the main benefits of having a separate facility is to make and keep your customers comfortable and relaxed. Think about it, they probably have been treated roughly at one, or more, new car stores already because of their credit. Make them feel welcome.
Once you deliver the car to your customers, they will then be making payments every week or month, depending on their payment schedule. That means they will be stopping by to do this. The steady flow of customers can be disruptive in a new car showroom or lot.
Finally, the separate lot will help allow you to market and merchandise the operation independent from your new car store. A different name, web site and logo can be very helpful.
It will cost more money to do it this way. But it will increase your returns, sales and collections.
Charles Pompey is the owner of DigAps.com and Car-Lotta Credit.
DigAps.com…Comprehensive Web Sites and Internet Merchandising ONLY for Buy Here Pay Here dealers. Charley builds results oriented BHPH web sites, improves existing web site performance, manages PPC programs, does advertising consulting, speaks to 20 groups, dealer groups, and is available for individual consulting and speaking engagements. DigAps.com will get you additional credit applications, and sales, from your website in the first 30 days!
Please feel free to visit my blog for free BHPH info at http://www.digapsblog.com or my website http://www.digaps.com…Does It Get Aps? DIGA?
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