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The NIADA BHPH Super Forum Summary

Ever wonder what the subprime analysts are recommending for BHPH Dealers? Are you curious about the national averages and what products perform best and what business practices to shy away from?  Well, here are some suggestions from the experts as well as some national averages.  We hope it provides clarity and as always, we are here to serve you and help you grow to the next level. 

The pre-pandemic vehicle cost average was $6600, post pandemic vehicle average cost is $8800 there has been a 10% decrease in overall ROI.

What Add-On’s Perform Best?

  • CPI enhances profitability.
  • Warranties and Service Contracts reduce defaults. 

What Are “The Best” BHPH Business Model Attributes? These Are Targets!

  • Term Length of 36-40 months.
  • Average Down Payment of at least $1500
  • Average Repayment of at least $100 per weekly equivalent.
  • Affordable vehicle matched with each customer. 
  • Reasonable Markup (not to exceed $5500)
  • Reasonable APR
  • Defaults need to occur after recovering your investment.

Ways to Increase Cash…

  • Larger Down Payments
  • Higher Repayment Amounts
  • Shorter Contract Term
  • $ of interest Is Worth More Than $ Of Principal. 
  • Deferred Customer Payments

What You Can Do To Enhance Your Performance.

  • Develop your portfolio performance metrics 
  • Determine what is working best and what isn’t through metric analysis
  • Learn from your losses don’t repeat them
  • Monitor market changes and adapt
  • Be consistent if use your own data to make better underwriting decisions
  • The more you learn about your customers the more you will earn
  • Avoid trial and error mistakes
  • Look into reinsurance as a source of new revenue.


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