Hi Tim - I have done this since 1971 (unfortunately,I need to get a life,ha!)and many times we were able to average upwards of 3500.00 per car before finance charge.In the last few years the competition from other BHPH dealers as well as non-BHPH dealers using new 'Mouse House' finance companies ,taking less profit,has been forcing us to compete.We have also found there is a higher rate of reposession with a price or balance that does not remotely compare to other non-BHPH dealers.Folks talk and once they realize or think they have been overcharged ,they not only feel buyers remorse but start to think of walking from their loan.In addition Obama's new zar(consumer financial protection bureau)is in the process of cramming our prices down,so we are trying to stay ahead of them(they are scary).Talking about expenses? They are actually around 1.7 mil for a net 1mil , remember, you also have over 1 mil in finance dollars coming in.Included in those expenses are your personal income,which you would like to be able to take home 1/2 mil.The million we are talking about is pure profit,and most likely recognized in company growth(accounts,inventory etc..)Although your RFC is taking care of the financing you still are the recipient of the income.I think the bottom line that I was trying to lay out was that when you finance a single car for four years that you have paid 5k and sold for 8k, you only end up with about 3k for the whole year but you still have to pay the income tax on the entire profit in the selling year not over the life of the loan.No other business that I know of is affected so dramatically.You sell 700 cars for 6.5 -7 mil,cost is around 5 mil but you only take in about 2 mil from that group of loans.You have 25 employees including 5 mechs,two big stores with all of the bells and whistles because you dont want to look like the 'gravel lot boys',and you pay your employees very well because its the right thing to do,both socially and economically.The RFC does help with this problem but it still requires a huge amount of cash to keep the BHPH machine going-That is ? if you are real BHPH and keep your own contracts.Those that sell their accounts will not be able to relate. Thanks for your input ,I appreciate it-
Dennis Combs