Gene Daughtry with AMS Consulting discussing some advantages of a Lease Here Pay Here program (LHPH) over a Buy Here Pay Here program (BHPH). With usury differences and having residual a dealer can be more flexible with pricing and payments. Getting the vehicles back are a simpler process that helps make rolling them back out easier. There are several tax advantages to LHPH, even in Texas that any dealer should consider. You can call Gene at 479-970-4049 anytime if you have questions.
If you are in Buy Here Pay Here and would like to offer lower prices or lower payments Leasing might be the answer. Repossessing and Bankruptcy are easier if as a dealer you are leasing. There are tax credits to consider that a BHPH dealer does not have access to. If you are just starting or if you are needing to convert to a new DMS (not all DMS handle leasing correctly) are great to to look at leasing vs BHPH in your market.
Reach out if you have questions gene@auto-master.com or call me 479-970-4049
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