Financing and F&I

What is 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.

A blended average hides the truth. A growing book buries the losses of last year's originations under this month's fresh, still-current notes.

By cohort, you can see whether the deals you wrote in a given month actually collect, which is the only honest read on whether your underwriting is working.

Related terms

BHPH

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.

Deficiency

A deficiency is the balance still owed after a repossessed vehicle is sold and the proceeds are applied to the account.

General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.