- Joined
- Mar 28, 2013
- Messages
- 1,664
Lifetime car guy here. Been working for the man since the day I left ole miss and about to open my own lot. Where I live no one has credit and buy here pay here guys are KILLING IT. I mean MILLIONS a year killing it in towns of 10,000 people. Crazy money.
So Im just curious if my fellow brothers of the iron look down on BHPH? I know alot of people.. mainly way left democrats say its predatory and taking advantage of a bad situation.. but hell they are the one with a BK and 3 repos so if I have to charge 28% to cover my risk then whats the prob? They made the bed..
Here is a chart I rough drafted when getting my biz plan together..
Car figured in chart is 5000 my cost. sell for 9000. 2500 down finance 6500 at 20% for 24 month..
https://i.imgur.com/JAqhg9C.jpg
once again i can go as high as 28% if I want.
This is selling 5 cars a month so 60 a year.. usually you will sell that many during tax season so these numbers are VERY conservative.
If you sell 5 a month going 24 month terms at 2 years you will have 120 cars dropping off payments every month. $330 a month on the chart. a good average.. yes you will have repos overhead and repairs..
at month 24 you will have 38k in payments and 12500 in down payments considering you keep the average..
after everything net gain is 25k a month after two years..
lets be real conservative.. if you repo 1 out of 3 and spend 500 bucks on EVERY car on repairs.. you still make a lot of money. the reward is so great its worth the risk..
and now with GPS and starter interrupters etc the repo game is just go get it..
I know there are a ton of bright guys on here.. cpas financial advisors etc..
what do you guys think..?
Im currently doing dirt work and will be opening about may after tax season is over this year..
300,000 a year GROSS after 2 yrs.. less building,land,utilities,insurance,repairs, help etc.. and this isnt some exotic dealership.. so overhead should be somewhat low in rural mississippi. prob 75-100k yr overhead.
So Im just curious if my fellow brothers of the iron look down on BHPH? I know alot of people.. mainly way left democrats say its predatory and taking advantage of a bad situation.. but hell they are the one with a BK and 3 repos so if I have to charge 28% to cover my risk then whats the prob? They made the bed..
Here is a chart I rough drafted when getting my biz plan together..
Car figured in chart is 5000 my cost. sell for 9000. 2500 down finance 6500 at 20% for 24 month..
https://i.imgur.com/JAqhg9C.jpg
once again i can go as high as 28% if I want.
This is selling 5 cars a month so 60 a year.. usually you will sell that many during tax season so these numbers are VERY conservative.
If you sell 5 a month going 24 month terms at 2 years you will have 120 cars dropping off payments every month. $330 a month on the chart. a good average.. yes you will have repos overhead and repairs..
at month 24 you will have 38k in payments and 12500 in down payments considering you keep the average..
after everything net gain is 25k a month after two years..
lets be real conservative.. if you repo 1 out of 3 and spend 500 bucks on EVERY car on repairs.. you still make a lot of money. the reward is so great its worth the risk..
and now with GPS and starter interrupters etc the repo game is just go get it..
I know there are a ton of bright guys on here.. cpas financial advisors etc..
what do you guys think..?
Im currently doing dirt work and will be opening about may after tax season is over this year..
300,000 a year GROSS after 2 yrs.. less building,land,utilities,insurance,repairs, help etc.. and this isnt some exotic dealership.. so overhead should be somewhat low in rural mississippi. prob 75-100k yr overhead.
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