Hi Mitch - Ofcourse there is a little bit of gaming going on,but these folks are most likely not true BHPH dealers.
They are probably selling their contracts through someone like Westlake, etc...or literally financing through the same.Even so,Westlake and others usually require atleast 10% down.I remember a dealer in the past that sold cars for a 'Dollar' down;he would raise the price to the bank by the down payment amount,then show that amount as down on the paperwork,very illegal and dishonest.There are a few of us true BHPH dealers out there that can afford(if we want to face so much risk)to finance for smaller amounts down, but it does take a few years to get enough accounts for the strong cash flow.We are doing 500.00 down on any car for drive off(cars from 5k to 13k) and then offering a free flatscreen tv when they bring X amount of tax money in as a PIC payment.This is a very expensive and risky move on our part,but we wanted to build extra accounts.
Good luck with your store. Thanks Dennis Combs Combs Car Corral Boise,Id