COMING TO TERMS WITH RISING TERMS
Eyo Toe | August 5, 2021
Trevor Watson, VP of Business Development at LHPH Capital, has written a compelling article in this month’s BHPH Magazine that addresses one of the most pressing issues facing dealers today: the impact of rising car prices on the terms of BHPH deals. Over the past few years, and particularly this year, these price increases have created significant challenges for both dealers and customers alike.
In the article, Trevor dives deep into how escalating vehicle costs have a domino effect, ultimately putting dealers in a difficult position. As prices go up, dealers are forced to either extend the term of the deal or increase the monthly payments—both of which can lead to customer affordability issues. For many dealers, this means grappling with the tough reality of offering payment plans that their customers simply cannot manage or locking them into longer terms that can stretch beyond what makes sense for both the customer and the dealership.
Trevor’s insight into these challenges is invaluable, and he also offers a solution: leasing. He explains how leasing can help fix both of these problems by offering more flexible payment structures that customers can afford while keeping terms shorter. Leasing allows dealers to manage risk more effectively and provide options that are more sustainable for their customer base.
Curious to learn more? Click the link to read Trevor’s full article and see how leasing could be the answer to overcoming the challenges of high car prices in today’s market!