Having been in the buy here, pay here industry for some time now and having witnessed so many dealers doing business in so many different ways, from both a business and a technology standpoint, its clear that one of the big issues facing our industry is that it has become so fragmented. And while it is slowly getting better, it still has a way to go.

The vendors that attend each trade show have the tools available for you to do the right thing. A few of the products that are available include the most current applications of industry software, accounting, legal representation, marketing, and payment solutions. Here are a few of the common problems dealers encounter:

My software is six years old and Microsoft no longer supports my operating systems.

One area that is often overlooked is a software package that uses a current operating system. You should have the latest upgrades to this software, including features like inventory control, booking the sale, selling to the related finance company, and collections. The technology is available for you to purchase products that integrate well together.

What type of accounting package do I need or does my accountant truly understand our business?

This is the six million dollar question. With expertise in accounting available at each of the major trade shows, you will have your choice of several leading accounting firms in the industry. Some of the firms even have data mining capabilities, which allow you to truly know how your portfolio is performing. Tying in a bookkeeping software package such as QuickBooks or Peachtree is also a good choice.

Could I have any legal problems down the road?

A large area of concern that has developed over the past few years are outdated retail installment contracts. In many cases, dealers whove been using the same retail installment contracts for the past five years have come to discover that, due to changes in that states laws, these documents are no longer legally valid. There are several national companies that can provide you with the most current and legal retail installment contracts. All dealers should have their contracts reviewed annually by an industry attorney familiar with retail installment law.

Should I use a payment solution to help with my collections?

With the use of a GPS or starter interrupt solution many lenders have seen a large reduction in delinquencies while lowering their collection personnel overhead. A major Wall Street investment house recently purchased a multi million-dollar portfolio after reviewing the historical delinquency, and was able to pay a 12-point premium to the going market rate. This portfolio was protected with a starter interrupt solution.