We’ve been enjoying the strongest economy we’ve seen in a long, long time. Things are good across a great many industries, the auto sales industry being no exception. While I’m not a fan of doom and gloom prognostications, the odds are that at some point, the growth will slow. Smart investors and business operators know that diversifying your holdings is key in offsetting stagnation or loss by growing in other areas.
Buy Here, Pay Here, particularly the franchise model, gives new vehicle dealers, as well as investors in other industries, an opportunity to not only diversify their holdings but succeed in helping people and prospering.
With Easter not that far off, I’m reminded of the old saying about not putting all your eggs in one basket. It holds true, and a Buy Here, Pay Here franchise is an investment basket you’ll want to consider. The used car dealership industry is worth around $118 billion and is projected to continue growing. It employs over 270,000 people. Buy Here, Pay Here is a large portion of the auto industry and provides one of those rare opportunities to not only profit greatly but also play a key role in serving a subprime market segment.
Why a Franchise?
We’ve all said something like, “you know, they oughta make…” The idea is not always the hardest part when it comes to starting a business. Inventing the product or coming up with a name might be done over dinner with friends. It’s the operations that are often the hardest part of starting a business. Who do you file legal papers with? How do you pay for it? And other basic questions with involved answers are where good ideas get tripped up.
With the exception of your initial investment (though, Byrider is able to facilitate partnerships that address this), a franchise operation solves many of these unknowns. The reason for this is because a franchise is essentially a proven “business starter kit.” Brand recognition? Check. Inventory network? Check. Marketing support? Check. The list goes on and varies by franchise and industry.
Manage your own operations
With Buy Here, Pay Here, even in a franchise setting, you have a great degree of control over your operations, including your inventory.
If you happen to also own a new vehicle dealership, you know the worry every year, will the changes to a top seller be a bust? It’s not an issue at a used dealership. You determine the inventory, even in a franchise system. Stock your lot with the best sellers, cars you know the consumer will purchase. In fact, if you do own new car lots, you are uniquely qualified to know what moves.
Looking for a good investment that you can manage at an arm’s length? Buy Here, Pay Here, particularly in the franchise system, allows you to set your involvement. I work with many franchisees who have great management teams and are loosely involved, while others are plugged into the day-to-day operations.
Utilize Existing Real Estate
One of the real estate industry’s buzz words is redevelopment. Let’s redevelop the empty parking lot or vacant building that you own or can purchase on the cheap and repurpose it into a profitable business. A used car and finance dealership can utilize 1-1.5 acres and a 5000 sq. ft. building and begin to “earn” for ownership. If all the legal odds and ends are wrapped up in a timely manner, you could operate a Buy Here, Pay Here franchise within months. It’s a very cost-effective redevelopment of unused land.
This is an opportunity for you to help customers who are trying to get back on their feet. In a new car dealership, often beholden to a separate financing system, you may have to turn away someone regardless of whether they demonstrate an ability to make payments.
In Buy Here, Pay Here, you hold the paper and make the decisions. This is an opportunity to make a real difference in someone’s life who needs the chance to prove themselves, which in turn leads to a loyal customer base and generates frequent referrals to your business helping your business grow.