Do you have a Buy-Here, Pay-Here program and are looking to learn more about Lease-Here, Pay-Here? LHPH has been gaining popularity over the last 10 years as dealerships discover the benefits it can provide.
Below are a few of the most frequently asked questions when beginning to explore the LHPH model.
| What is a LHPH program? | – A form of lending designed to assist consumers find reliable transportation who may otherwise not qualify with traditional bank and finance company lenders. – Similar to BHPH, however, using the lease as the financial instrument instead of an installment loan to gain many unique advantages – LHPH dealers maintain ownership and often lease the same vehicle several times over the life of the unit resulting in greater profitability |
| What major benefits are associated with an LHPH program? | – Improves cash flow with “pay-as-you-go” sales tax – Allows the dealer principal to defer tax liability – Closes the affordability gap for subprime customers – Creates new profit opportunities – Differentiates the dealership and creates a competitive advantage – Better protection from consumer bankruptcy claims |
| What are some key differences in the LHPH model? | – The lease instead of the loan – No need for a Related Finance Company – Not all DMS systems have a LHPH module – In order to enjoy the tax advantages, your accounting will look a little different |
To read more about the various benefits a LHPH program offers, and learn how to launch your own platform, download our FREE E-Book below.