Author Archives: Russell crosby

Mississippi attorney general subpoenas Credit Acceptance

Mississippi attorney general subpoenas Credit Acceptance

SOUTHFIELD, Mich. — For the second time in about a year, Credit Acceptance is dealing with an attorney general subpoena.

The finance company acknowledged late on Friday through a filing with the Securities and Exchange Commission that it received a subpoena from the Mississippi attorney general on Aug.

2 Ways Tighter credit helped Car-Mart

2 ways tighter credit helped Car-Mart

BENTONVILLE, Ark. — Along with elaborating a bit about his upcoming retirement, America’s Car-Mart chief executive officer William “Hank” Henderson described how underwriting tightening in other areas of the auto-finance market is benefitting the chain of buy-here, pay-here dealerships.

The market change is improving not only the caliber of customer Car-Mart saw during the first quarter of its 2018 fiscal year that ended on July 31, but also the quality of vehicles the company is able to stock at its 140 stores.

“We’re seeing some customers circle back,” Henderson said during Car-Mart’s quarterly conference call with investors. “They’ve been over there and tried the other side, and now … Read more

auto note buyers

What is BHPH?

What is BHPH?

Buy Here Pay Here (BHPH) refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles.[1] Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates.[1] BHPH can provide options for those unable to meet credit standards elsewhere.

In house lending is a type of seller financing in which a company or brokerwill help a customer obtain a loan at their place of business to purchase any product or services. When using in-house lending one does not have to rely on 3rd party company or business to complete the transaction.[1]

Consumers can typically apply for in-house loans by visiting the business which is typically a brick and mortar. One can ask for special financing with the sales representative and they will usually direct him to see their lending specialist. There are some in-house lenders that are able to originate the transaction on-line for on-line buy here pay here dealerships and websites. At times it can be a challenge to discover who is actually using in-house lending or if they are using a bank, credit unionon the back end to finance the transaction.

“CFPB orders ‘buy-here, pay-here’ auto dealer DriveTime to pay $8M penalty for unfair debt collection practices”.

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DriveTime Automotive Group Inc. is an American used car retailer andfinance company. It is based in Tempe, Arizona, and sellsleases and financescars to customers with credit issues. The company was formerly known as Ugly Duckling and was renamed DriveTime in 2002. It also spun offCarvana and GO Financial, SilverRock Group Inc, and Bridgecrest Acceptance Corporation. As of 2015, DriveTime had approximately 130 locations in the U.S. and 3,800 employeesDriveTime

Car dealerships in North America

loans directly to consumers. In the business such dealers are called “Buy Here Pay Here” dealerships. These stores are able to make loans directly to customers

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Sell my bulk auto notes

Latest Car news

Moody’s sees consumers on ‘trade-in treadmill’

NEW YORK — In a new report released on Monday, Moody’s Investors Service explained what likely might be happening in the war rooms at auto finance companies nowadays.

Financing providers are increasingly faced with the choice of taking on greater risk by rolling negative equity at trade-in into the next vehicle loan. The credit rating agency believes finance companies are increasingly accepting this choice, resulting in mounting … Read more

Financial Solutions

Appeals Court Grants CFPB Request

Appeals court grants rehearing, vacates decision that questioned CFPB’s constitutionality

WASHINGTON, D.C. — As reported by other media outlets as well as the American Financial Services Association and Hudson Cook, the U.S. Court of Appeals for the District of Columbia Circuit on Thursday granted the rehearing petition involving the case in which the initial decision reached last October called the Consumer Financial Protection Bureau “unconstitutionally structured.”

Along with that declaration, AFSA recapped that the case pitting the regulator against … Read more

Financial Solutions

Subprime Financeing Declines

Experian: Financing Extended to Subprime Car Buyers Declines to Record Lows in Q3

Auto financing extended to subprime and deep-subprime car buyers fell 4.5% from a year ago, as the auto finance industry continued to squash fears of a forming subprime bubble. Newly originated loans made to prime car buyers jumped 2% to encompass nearly 60% of auto loans originated during the period. 

Financial Solutions

Group 1 names new director

Group 1 names new director

HOUSTON — On Thursday, Group 1 Automotive announced the appointment of Charles Szews to its board of directors.

Szews joins eight other directors on the company’s newly expanded board.

“Charlie brings strong leadership, experience managing global businesses, and expertise in capital allocation and generating shareholder value,” said Earl Hesterberg, Group 1 president and chief executive officer.

Financial Solutions

Major Developments Make NABD Orlando a Must Attend

Major Developments Make NABD Orlando a Must Attend

By Nick Zulovich
Senior Editor


It was just a little more than four months ago that the National Alliance of Buy-Here, Pay-Here Dealers hosted its annual convention in Las Vegas. However, Ken Shilson emphasized that two significant developments have happened since NABD gathered ahead of Memorial Day weekend, making its next BHPH Conference during the first days of November all the more important for operators to attend.

The conference, whose theme is “Best Practices to Succeed Now,” is designed for both new and experienced operators. The event that runs Nov. 1-3 at the Rosen Shingle Creek Resort in Orlando, Fla., will take a deep look at what Shilson called one of the “most significant accounting changes buy-here, pay-here operators will ever encounter.” That change is the American Institute of Certified Public Accountants passing new credit loss measurement standards that require operators to estimate future anticipated losses on their receivables.

“There’s nobody who is going to be helped by this rule. There’s no silver lining in this cloud. It’s going to adversely affect everyone,” Shilson stressed to BHPH Report during a recent telephone conversation.

“Every time you book a receivable in the future, you’re going to…Click Here to Read More

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