How Profitable Are Buy: Here Pay Here Lots

At the end of 2025, 60+ day delinquencies reached an all-time high of 6.65% .

To manage high default risks, modern lots must invest in telematics and GPS "kill switches" to facilitate repossessions, as well as AI-driven credit scoring software. how profitable are buy here pay here lots

Agencies like the CFPB and the FTC (specifically the CARS Rule) are increasing transparency and disclosure requirements, which can increase compliance costs. At the end of 2025, 60+ day delinquencies

Dealers often mandate "Collateral Protection Insurance" (CPI) or specialized GAP coverage , which can account for 20%–30% of total annual profit . 2. Current Profitability Metrics (2025–2026) At the end of 2025

Interest rates are exceptionally high, often reaching 25% or more , compared to the 2025 average used-car APR of ~11.5%.