With interest rates rising and inflation still hovering around 5 percent, money is tightening for many Americans.<\/p>\n\n\n\n
Delinquencies and bankruptcies are both starting to increase.<\/p>\n\n\n\n
According to data from Experian and the U.S. Bureau of Labor Statistics, bankruptcy petitions increased by 7 percent in September 2022. People seeking financial relief through restructuring debt are also increasing, after many of the stimulus programs during the COVID-19 economic recovery have expired.<\/p>\n\n\n\n
\u201cFilings are going up because people can\u2019t afford payments,\u201d said NIADA 20 Group Moderator Bill Elizondo.<\/p>\n\n\n\n
Even as finances are tightening, the labor market remains strong. Unemployment is still at a 50-year low and people still need transportation to get to work. This is creating additional opportunities for buy-here, pay-here dealers (BHPH), as pointed out Wednesday during NIADA\u2019s Buy-Here, Pay-Here New Dealer Academy.<\/p>\n\n\n\n
\u201cThis is the absolute best time to get into buy here-pay here,\u201d said NIADA 20 Group Moderator Ben Goodman.<\/p>\n\n\n\n
As pointed out by Goodman and Elizondo, the model is one of a finance and collections business, with the vehicle being the commodity.<\/p>\n\n\n\n
\u201cYou\u2019re selling a finance program. It\u2019s designed to help the customer rebuild their credit,\u201d Goodman said.<\/p>\n\n\n\n
The class covered many current BHPH trends.<\/p>\n\n\n\n
Data compiled through NIADA\u2019s 20 Groups, show the average amount financed in 2022 BHPH deals was north of $12,000. The deal structure called for $1,300 in a down payment and the cash-in at $7,891.<\/p>\n\n\n\n
Goodman and Elizondo stressed the need for increasing the down payment.<\/p>\n\n\n\n
\u201cSuccess is about managing risk,\u201d Goodman said.<\/p>\n\n\n\n
Reconditioning costs have been rising, hitting $1,100 in 2022, an increase of approximately $200 in the past year. The gross per unit has also increased by more than $300 to $6,100.<\/p>\n\n\n\n
The class continued Thursday with Goodman and Elizondo providing insights and best practices for the BHPH model.<\/p>\n","protected":false},"excerpt":{"rendered":"With interest rates rising and inflation still hovering around 5 percent, money is tightening for many Americans. Delinquencies…\n","protected":false},"author":1,"featured_media":3453,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[44,5,28,3],"tags":[],"class_list":["post-3451","post","type-post","status-publish","format-standard","has-post-thumbnail","category-best-practices","category-bhph","category-independent","category-industry","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/3451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=3451"}],"version-history":[{"count":0,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/3451\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/3453"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=3451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=3451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=3451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}