Buy Here Pay Here Bulk Purchase -

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.

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

Larger franchise dealerships often sell their "low-line" trade-ins (cars they won't sell on their own brand-name lot) in bulk to independent BHPH lots. Portfolio Sales (Bulk Note Buying) To maintain a high-turnover lot, BHPH dealers often

Buying retired rental cars or corporate fleet vehicles in bulk offers better maintenance records than random auction units. Once a dealer has loaned out all their

The primary source for 85% of BHPH inventory. Dealers buy "blocks" of older, high-mileage vehicles to keep costs low.

Roughly 25–40% of BHPH customers become delinquent within the first 60 days.

In BHPH, a "broken car = broken payment." If the car dies, the customer almost always stops paying.