Financing and F&I
What is BHPH?
Also called: buy here pay here, in-house financing
Buy here pay here means the dealer finances the sale itself and collects the payments, instead of selling the loan to a bank or finance company.
It is a lending business wearing a car-lot costume. Your profit arrives over the life of the note, while the cash goes out the day you buy the car, so growth consumes cash rather than producing it.
Underwriting, servicing and collections become core competencies. So does compliance: credit rules, adverse-action notices, repossession law and, where used, state rules on starter-interrupt devices.
Handle this automatically
Loturn tracks every cost against the VIN and shows live profit on every car, with real dealer accounting built in.
Related terms
Static pool
Static pool analysis groups notes by the month they were originated and tracks each group's performance separately, instead of blending everything into one portfolio average.
Deficiency
A deficiency is the balance still owed after a repossessed vehicle is sold and the proceeds are applied to the account.
Back gross
Back gross is the profit from the finance and insurance office: lender reserve plus what you make on service contracts, GAP and other products.
General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.