Buy Here Pay Here Bulk Purchase -

When an investor buys a portfolio, they buy it at a "discount" (e.g., buying $1M in total debt for $700k) to account for the high risk of default.

Dealers use their current loan contracts as collateral to borrow more money. buy here pay here bulk purchase

Calculated based on the portfolio's performance, including average APR (often 20%+), payment history, and vehicle age. 📈 The Economics of BHPH Bulk Models Feature Traditional Dealership BHPH Bulk Model Profit Timing Immediate (at sale) Realized over 24–36 months Interest Rate Market rates (low) High (20% to 29%+) Inventory Source Manufacturer/New trade-ins Wholesale auctions/Bulk blocks Risk Management Third-party bank risk Dealer/Investor risk (1:4 fail) ⚠️ Core Risks in Bulk BHPH When an investor buys a portfolio, they buy