MARBLEHEAD, Mass. — FinCo Management’s
“BuyHere-PayTHERE” (BHPT) program, a system that allows automotive and
powersports dealers to approve and finance their own deals, is now
available in 30 states, including Florida, Texas and California.
In today’s volatile market it is increasingly difficult for dealers
to find financing for customers who have good credit – let alone for
the rising number of deep subprime customers. The BuyHere-PayTHERE
system allows those subprime buyers with enough cash to cover the
dealer’s cost in a vehicle to take out a retail installment contract
and pay off their debt over time – with no lender involved. The
decision to grant credit terms to a customer is entirely the dealer's,
and FinCo does the rest: originations, underwriting, documentation,
servicing, collections, customer service, repossessions, and
remarketing.
Deals made through FinCo are not credit based loans, but sales
contracts backed by the vehicle as collateral. Even if the customer
does not make all of their principal payments, on average the dealer’s
cost should be covered by the cash down at closing. Plus the dealer is
converting what may have been a wholesale loss into a retail profit.
Unlike other subprime financing companies, FinCo never charges a
percentage of the principal collected, and does not charge a monthly
subscription fee or sign up fee for its services. When the customer
makes their monthly payments to FinCo, the dealer receives the
principal portion of each payment, less an $85 origination fee deducted
from the first principal payment. FinCo keeps the interest on the first
four deals each dealer funds per month. The dealer is eligible for
generous interest participation from the fifth deal on.
For more information on FinCo Management, email Courtney Bridges CBridges@FinCoManagement.com or visit www.FinCoManagement.com.
