Buying retired rental cars or corporate fleet vehicles in bulk offers better maintenance records than random auction units.
Bulk buyers must ensure all contracts comply with the federal Truth in Lending Act (TILA) and state Retail Installment Sales Acts (RISA) . The Art of Turning Cars into Cash | Auto Dealer Today
BHPH is a cash-intensive business. Once a dealer has loaned out all their capital to customers, they "run out of cash" but have a "portfolio of notes" (contracts). To get cash back to buy more cars, they sell these contracts in bulk to financial institutions. Key Terms in Bulk Portfolio Sales: buy here pay here bulk purchase
The primary source for 85% of BHPH inventory. Dealers buy "blocks" of older, high-mileage vehicles to keep costs low.
In the automotive industry, "Buy Here Pay Here" (BHPH) bulk purchasing refers to two distinct business actions: buying inventory in volume or investors purchasing entire portfolios of existing auto loans (contracts). 🚗 Dealer Inventory Acquisition (Bulk Stocking) Buying retired rental cars or corporate fleet vehicles
To maintain a high-turnover lot, BHPH dealers often buy vehicles in bulk to lower their per-unit cost. Since these dealerships typically target lower price points ($5,000–$10,000 retail), finding reliable, high-volume sources is critical.
Dealers use their current loan contracts as collateral to borrow more money. Once a dealer has loaned out all their
In BHPH, a "broken car = broken payment." If the car dies, the customer almost always stops paying.