Short Summary
Currently Profitable Buy Here Pay Here (BHPH) Investment Fund with 2MM already raised. This High ROI Investment Fund allows investors the ability to take advantage of significant profits in the used car industry without being tied to risky assets.
The Business
We own 2 businesses, a used car dealership and an auto finance company. Our Used Car Dealership sells vehicles while our auto finance company provides financing for Buy Here Pay Here loans. Our ability to provide Buy Here Pay Here loans allows us to give individuals with bad credit the opportunity to purchase high-quality vehicles at a low risk to us.
How it Works - An individual with sub-prime credit requires a loan in order to purchase a vehicle. Banks and Credit Unions will not provide a loan to the individual based off their not having great credit. BHPH allows us to provide the loan to the client if they fall within our strict guidelines. We gain on the interest and the customer is able to purchase a good quality vehicle.
Market Size and Growth
Post-2008 Recession caused a rise in the BHPH market from 56 Billion to 100+ Billion according to the Federal Reserve. The Market continually grows each year. The opportunity is there.
Our target customers are below sub-prime credit individuals and families. Our competitors are few small used car dealerships that have extremely low portfolios. Companies like Carvana, DriveTime, CarMax are not our competitors since they go after prime credit customers and few below that. Our competitive advantage is our 14 years of experience in this field and our establish 2MM Portfolio which continually grows.
Progress/Proof
● We have 14 years of experience and a portfolio size of 2MM.
● The average BHPH chargeoff rate is 12-25%. Ours is between 3-5%.
● We have built a structured and effective set of guidelines in determining what BHPH deals to accept and deny. We understand how to purchase these deals which work towards your advantage as an investor.
● Our average interest rate on BHPH loans in our portfolio is 21%. On over 2MM of accounts, we collect around 150k Monthly (P&I).
● As a company from the viewpoint of the public, we are the highest google rated dealer in Tampa, FL exceeding even the ratings of new car dealers.
● We have higher ratings than CarMax, DriveTime, and all other dealers.
● We have a 4.7 Star Rating with over 350+ Reviews. We have a great presence in Tampa, FL.
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