Which metrics should I improve first to see cash flow impact

Focus on first payment success, promise kept rate, and roll from current to 1 to 29. Tighten verification, limit exceptions, and add a same day broken promise callback to prevent delinquency compounding.

How do I align sales and collections around payment performance

Use one scorecard and shared incentives tied to verified income, payment to income, and first payment success. Train sales to set payment expectations and have collections provide weekly feedback on approval quality.

What is the best way to reduce charge offs without slowing sales

Implement a clear credit policy with an exception log, faster verification tools, reliable vehicle standards, and proactive first 30 day outreach to prevent early stage delinquency.

Do GPS and starter interrupts improve performance by themselves

They help only when paired with clear disclosures, compliant use, and fast contact on missed payments. Use devices to support strong collections, not to replace prevention and quality talk tracks.

BHPH United - Buy Here Pay Here Dealer Education and Training for Subprime Auto Financing In House Financing Lease Here Pay Here Operations Compliance Leadership Marketing and Dealer Success Nationwide

Q: How often should I audit deals and collections notes

Audit a sample weekly to confirm disclosures, verifications, exception approvals, and promise documentation. Share findings and update the playbook so improvements stick.

Sharpen dealership results with focused Buy Here Pay Here Dealer Performance Education designed to improve portfolio health, customer outcomes, and operational consistency. This page gathers performance frameworks, workflows, and playbooks that align sales, underwriting, collections, and service around measurable results. Learn how to reduce delinquency, lift net dollar retention, increase average life of loan, and protect gross through smarter inventory and risk controls. From scorecard design to payment performance coaching, every tactic here is practical and data driven. Explore how compliance and customer experience support stronger portfolio turns, and how technology integration streamlines approvals, promises to pay, and skip prevention. Whether you are stabilizing a single lot or optimizing a multi rooftop operation, you will find step by step guidance, benchmarks, and training paths that lift performance and profitability while strengthening trust with customers and capital partners.

What Buy Here Pay Here performance really means

High performing Buy Here Pay Here dealers build portfolios that are predictable, resilient, and customer centered. Performance is not only about selling more vehicles. It is about approving the right customers, at the right terms, with the right vehicle and payment structure, then supporting them through the full life of the account. That requires tight alignment between inventory, pricing, underwriting, collections, service, and compliance. The result is steady cash flow, lower charge offs, stronger recoveries, and repeat customers who refer new buyers.

Stronger performance starts with a clear operating model. This page breaks that model into core modules with trainable skills, repeatable processes, and scorecards that drive accountability. Each topic links to deeper education so your team can apply the concepts quickly and measure impact within your management meetings.

Core modules that move the needle

Underwriting discipline that matches risk to payment and vehicle, documented by clear credit policy and exception logs
Collections workflows that prioritize prevention, right party contact, and same day resolution over late stage enforcement
Inventory and pricing strategy that balance ACV, recon, and payment to protect gross and payment performance
Compliance guardrails that reduce regulatory risk without slowing sales or customer service
Technology integration for e docs, GPS, payment processing, CRM, and call workflows that raise team consistency
Leadership cadences that turn data into coaching, action plans, and weekly follow through

The BHPH performance scorecard

Use a balanced scorecard to connect front end approvals to back end collections and cash flow. Choose a handful of leading and lagging indicators, publish definitions, assign owners, and review trends weekly.

Lead to sale conversion and sold gross per unit
Advance rate and payment to income at origination
First payment default rate and days to first contact on broken promises
Roll rate by bucket, roll back rate, and cure rate within 14 days
Delinquency 1 to 29, 30 to 59, and 60 plus, measured by unit and by dollars
Annualized charge off rate, recovery rate, and net loss severity

Tie incentives to controllable inputs like verified income, payment to income, complete references, and documented first contact timing. Reward behaviors that create healthy accounts from the start.

Underwriting that protects cash flow

Consistent underwriting is the first defense against delinquency. Align your approval matrix to verified income, stability, and vehicle reliability. Use a pricing and payment model that keeps total cost to income sustainable while protecting gross. Document exceptions with a short reason code system and a second signature when risk moves outside policy. Train sales to set expectations on payment methods, grace terms, and support programs before delivery, not after the first missed payment.

Verify income and residence through independent documentation and phone validation
Balance down payment, term, and vehicle ACV to limit negative equity exposure
Align GPS and starter interrupt policies with compliance training and customer disclosure

Collections that prevent delinquency

The best collections teams focus on prevention and immediate contact. Set a daily rhythm for account touches, build call reason codes that guide the next best action, and track promise kept rate as closely as you track promises made. Offer frictionless payment options and clear, consistent language on late fees and extensions. Validate that every arrangement includes amount, method, date, and a documented fallback if the plan fails.

Same day outreach on broken promises with call, text, and email sequences that meet regulatory standards
Call windows matched to customer schedules, with talk tracks that address cause, not just symptom
Field visit guidelines, documentation standards, and escalation timing that protect brand and compliance

Inventory, pricing, and recon that support payments

Vehicles must fit the payment. Target reliable models with known recon profiles and transparent maintenance costs. Price to a sustainable payment to income ratio and confirm that warranty or service contracts are clearly explained. Track comebacks, average recon per unit, and time to frontline, then feed those learnings back into purchasing criteria.

Compliance as a performance multiplier

Compliance done well creates cleaner deals, faster funding, and fewer disputes. Equip teams with checklists for disclosures, adverse action letters, payment processing rules, and repo notices. Audit a sample of files weekly. Train managers to spot risk patterns in marketing, deal structuring, promises to pay, and payment enforcement. When rules are clear and tools are simple, compliance increases speed rather than slowing it.

Leadership cadence and coaching

Make performance visible and actionable. Hold a short daily huddle for the collections team and a weekly performance review that includes sales, underwriting, and service leaders. Use a single scorecard and assign actions with owners and due dates. Coach one skill at a time. Celebrate small wins, document best practices, and move them into your playbook so improvements stick.

Practical tools you can use now

Credit policy with exception log and reason codes for audit readiness
Collections playbook with contact cadences, talk tracks, and promise documentation standards
Inventory buy box that ties target ACV, miles, recon budget, and final payment band
Weekly performance agenda with owner, due date, and success metric on each action item

Who benefits from this education

Owners and general managers standardizing operations and reporting across rooftops
Sales and underwriting leaders improving first payment success and sustainable terms
Collections managers raising right party contact and cure rates while reducing roll
Controllers and compliance leads aligning documentation, audits, and payment processing

Apply the model in your store

Start with a baseline. Pull six months of data on delinquency by bucket, roll rate, charge off rate, and promise kept rate. Identify one high impact bottleneck such as weak first payment performance or inconsistent right party contact. Choose a small set of actions, assign owners, and set a review date. For example, tighten employment verification and limit exceptions for first time buyers. Or introduce a broken promise same day callback rule with a new talk track and text template. Measure the next four weeks, not four months. Document wins, move what worked into your playbook, and repeat with the next bottleneck. Progress is a series of small, reliable improvements that align your team and protect customers from avoidable failure.

Related learning paths and resources

Explore deeper modules and peer learning that build on this page and support consistent performance across your operation.

buy-here-pay-here-dealer-education for a full curriculum overview and role based training paths
buy-here-pay-here-operations-training to standardize daily workflows and management cadences
buy-here-pay-here-compliance-education to strengthen documentation and audit readiness
buy-here-pay-here-payment-performance-education for deeper prevention and cure tactics
dealer-performance-optimization-education to align portfolio metrics with leadership coaching
used-car-dealer-education and blog for broader market insights and practical case studies
Learn more about our team on about-us and connect at education-and-events or meet-us

Frequently asked questions

Focus on first payment success, promise kept rate, and roll from current to 1 to 29. Small gains here lower delinquency compounding and protect charge off rates. Standardize verification, tighten exception rules, and launch a same day broken promise callback.

Use one scorecard and shared incentives tied to verified income, payment to income, and first payment success. Train sales to set clear payment expectations, and empower collections to provide feedback on approval quality each week.

Pair a clear credit policy and exception log with faster verification tools, stronger vehicle reliability standards, and proactive outreach during the first 30 days. You can approve faster while documenting risk and preventing early stage delinquency.

Devices help when paired with clear disclosures, compliant use, and fast contact on missed payments. They are not a substitute for prevention, talk track quality, and documented arrangements. Use devices to support, not replace, strong collections.

Audit a sample weekly. Confirm disclosures, verifications, exception approvals, and promise documentation. Share findings in the leadership meeting and update your playbook. Frequent small audits catch trends early and avoid costly rework.