Best Practices for Stronger Payment Performance
Effective buy here pay here collections best practices help protect your portfolio, improve payment performance, and build long term customer relationships. Whether you manage a single lot or multi location operation, a consistent, compliant, and customer focused collections process reduces roll rates, increases recoveries, and lowers charge offs. This page brings together proven BHPH collections strategies you can apply right away, including documented policies, early stage delinquency workflows, communication scripts, hardship options, and reinstatement standards. You will also find links to in depth resources and training that reinforce your team with repeatable processes and measurable goals. Start by aligning policy, people, and technology, then track what matters daily. With the right foundation and training, your team will contact more customers on time, secure more right sized payments, and protect vehicle and collateral value while staying within regulatory guidance.
Use this page to register members of your dealership ASAP!
ONLY $299 For Each Addt'l Dealership Attendee
CAESARS ROOMS DISCOUNTED TO $189 a night
(Plus Resort Fee)
Use the guidance below to strengthen your collections playbook and your payment performance culture. Explore linked resources for operations, compliance, repossession process education, and portfolio management so every account receives the correct touch at the correct time. When your team follows one clear standard, customers understand expectations and your portfolio stays healthy.
Why BHPH collections best practices matter
Collections is not only about past due accounts. It is the daily execution of your customer promise. In buy here pay here, the dealership is the lender, so consistent collections practices directly impact cash flow, net charge offs, and customer satisfaction. A defined, trained, and measured approach to outreach, hardship handling, and recovery keeps accounts moving forward, preserves collateral, and reduces losses. The best operators pair policy with people and technology so that every action is timely, documented, and compliant.
Build your foundation: policy, compliance, and training
Start with a written collections policy that matches your credit policy and state requirements. Train your team to follow the same steps, the same scripts, and the same documentation standards. Review the policy quarterly and reinforce it in coaching sessions. If you need structured guidance, consider these resources:
- BHPH Collections Training: Buy Here Pay Here Collections Training
- Compliance Best Practices: Buy Here Pay Here Compliance Best Practices
- Operations Standards: Buy Here Pay Here Operations Best Practices
Data driven account management
Prioritize work by risk, not by alphabet. Use your DMS to build daily queues that focus on due today, due tomorrow, and 1 to 29 day past due accounts. Tag promises kept, broken promises, and payment method preferences. Score accounts by roll risk so your team spends time where it delivers the most impact. Integrate reporting with your portfolio reviews.
- Define clear buckets by days past due and promise kept status
- Track daily contact rate, right party contact rate, and promises to pay
- Monitor broken promise percentage and time to first contact
For deeper portfolio analytics and coaching frameworks, visit Buy Here Pay Here Portfolio Management Education and Dealer Collections Training.
Customer communications playbook
Clear, respectful communication drives payment performance. Use concise, compliant scripts that confirm identity, restate the agreement, and ask for payment in specific amounts and dates. Document every attempt and every outcome. Equip your team with talk tracks for voicemail, text, email, and in person visits where permitted.
- Use a first contact within 24 hours of a missed payment window
- Ask for a specific amount today, then offer scheduled follow ups if needed
- Confirm the preferred channel for future reminders and receipts
Sharpen your team’s talk tracks with Buy Here Pay Here Customer Communication Education and Subprime Collections Strategy Education.
Payment options and technology that remove friction
Make paying easy and predictable. Offer multiple secure payment channels and reinforce automated options at origination and in each contact. The fewer steps a customer must take, the higher the on time rate.
- Auto pay enrollment and text to pay with receipts
- Mobile wallet and self serve web portal with balance visibility
- In person kiosk or service lane payment options with barcode scanning
For implementation guidance, see Buy Here Pay Here Payment Processing Training and Buy Here Pay Here Technology Integration Education.
Early stage delinquency workflow
Your first 7 days after a missed due date have outsized impact on roll rates. Use a standardized contact cadence with escalation triggers and consistent next steps.
- Day 0 to 1: courtesy reminder and offer same day payment link
- Day 2 to 3: right party call, confirm reason, secure specific payment date and amount
- Day 4 to 7: broken promise follow up, manager assist, and payment arrangement documentation
Reinforce this workflow with Buy Here Pay Here Payment Performance Education and Subprime Payment Performance Education.
Hardship, extensions, and deferments
Offer hardship options that are consistent, documented, and limited. Every exception should protect your customer relationship and your collateral while keeping the account performing.
- Verify the hardship, collect a good faith payment when possible, and use written agreements
- Limit the number and frequency of extensions per policy
- Re age only within documented policy and applicable rules
For risk controls and documentation standards, visit Buy Here Pay Here Risk Management Training and Buy Here Pay Here Legal Compliance Education.
Repossession, reinstatement, and recovery
Recovery should be predictable and consistent. Define clear triggers for assignment, vendor standards, and reinstatement terms. Protect your brand and comply with state and federal rules at every step.
- Written repo triggers by days past due and broken promises with manager approval points
- Vendor scorecards covering contact attempts, condition photos, and storage timelines
- Reinstatement standards that specify minimum past due, fees, and next due date
Deepen your process with Buy Here Pay Here Repo Process Education, Buy Here Pay Here Portfolio Recovery Education, and Buy Here Pay Here Reinstatement Strategy Training.
Team structure, scorecards, and coaching
Your collectors need clear goals and feedback. Use daily stand ups to review queues and blockers, then coach using recordings and account notes. Align incentives with promises kept and dollars collected, not only call counts.
- Core KPIs: contact rate, right party contact rate, dollars collected to expected, roll to 30, roll to 60, charge off percentage
- Quality measures: documentation completeness, compliance checklist, promise accuracy
- Weekly calibration: review five calls per collector with scorecards and action items
For leadership frameworks and development paths, explore Buy Here Pay Here Leadership Training and Dealer Leadership Development Training.
Common mistakes to avoid
- Inconsistent policy exceptions that create confusion and unfair treatment
- Waiting too long to make the first contact after a missed due date
- Overusing extensions without defined limits and documentation
- Incentives that reward dials instead of promises kept and dollars collected
- Lack of ongoing training for new and experienced collectors
If your team needs a structured reset, consider Buy Here Pay Here Operations Training and Dealer Operations Management Training.
Integrate compliance at every step
Collections activities must follow state and federal requirements, from communication timing to privacy and disclosures. Train your team on what to say, when to say it, and how to document it. Conduct periodic audits and refreshers so processes stay aligned with evolving guidance.
- Provide written do and do not scripts for calls, texts, and emails
- Maintain secure storage of consumer data and payment information
- Document consent for text and automated reminders where required
Stay current with Buy Here Pay Here Federal Compliance Education, Buy Here Pay Here State Compliance Education, and Subprime Regulatory Guidance.
Connect collections to the front of the house
Great collections begin with smart underwriting and realistic payment structures. Close the loop by reviewing the files that go delinquent and feed those insights back to sales and underwriting. Better down payment strategies, income verification, and payment schedules increase on time performance from day one.
Explore connected education paths like Buy Here Pay Here Underwriting Education, Buy Here Pay Here Sales Process Training, and Buy Here Pay Here Pricing Strategy Training.
Helpful resources
Use these resources to deepen skills, benchmark your process, and keep your team aligned.
- Blog for practical tips and case studies
- About Us to learn our mission and approach
- Buy Here Pay Here Payment Performance Education to boost on time payments
- Buy Here Pay Here Collections Training for real world skills
- Buy Here Pay Here Repo Process Education for recovery standards
- Dealer Education Resources for tools and templates
- Privacy Policy for data handling practices
- Contact Us for questions about programs
Frequently Asked Questions
Stay connected and keep learning
The strongest collections operations practice continuous improvement. Review results weekly, refresh scripts quarterly, and invest in ongoing education for every role that touches the customer. For broader topics and event learning, visit Buy Here Pay Here Dealer Education, Used Car Dealer Operations Best Practices, and Dealer Workshops and Training. For updates and practical insights, check the Blog or reach out through Contact Us.
BHPH United
Login
