People with damaged credit histories represent a huge profit potential for Buy Here-Pay Here car dealers. But, in the same time collecting the money in time it’s a real challenge for any dealer. In a Buy Here-Pay Here dealership, the main formula for success is a good collection.
Here are some tips to help you to collect your money in time.
If you are a dealer you need to give the customers every opportunity to pay the loan. No matter if it’s cash, check, credit cards, debits cards, or online payments. Do whatever it takes to make your customer comfortable and to collect your money.
In our days approximately %60 of the dealers are using ACH. As the customers prefer to make a electronic payment throw the phone. Wile others prefer to come in and make the payment direct to the dealer.
When it comes to payments one of the best things a dealer can do is to get customers set up on automatic payment. Having more accounts set up on automatic payments it will allow the collectors to be more efficient, it will allow them to handle more accounts, and actually spend time working on the “problem” ones.
A good thing thought about Buy Here- Pay Here is that you can choose to finance any customer comes to your dealership. But collections is where the hard work begins.
You have customers walking in your lot choosing a car they like, deciding to buy it, make an downpayment and go home. But how do you actually make them pay there monthly payments on time. To make sure that they get their money back some dealers install GPS in their vehicles or just go with the old fashion way, and hire some good collection people.
When hiring a good collector, Buy Here-Pay Here dealers are looking for someone organized, tempered, confident, and of course for a critical thinker.
They are looking for somebody who’s capable of being an excellent communicator and for someone who can multi-task.
In the most of the Buy Here Pay Here dealerships, the collectors are paid a base salary determined by the number of accounts they handle. Plus each collector is paid a weekly bonus based on the performance of their portfolio. The collectors can also earn a monthly bonus based on a low repossession rate.
Remember a Buy Here- Pay Here it’s a finance business not a car business.
So when it comes to collection you should look for people with experience in the field. You can’t hire just anyone for this job. Try maybe to hire people from the local bank or from rent-to-own and other businesses where collections are an integral part of the business. A collecting person is all day on a phone, so it’s very important to have good communicative skills and to be a critical thinkers as dealing with a Buy Here- Pay Here customers it’s not an easy task.
Collections are very important in a Buy Here- Pay Here deals, so make sure you hire the right people to take care of it.