Franchise investment has been wildly popular and profitable for decades among those looking for investment opportunities. Whether this was back at the beginning, when McDonald’s essentially invented the modern-day model or any of the other popular franchise systems you see today — the franchise model is working. One of the main reasons is the “business starter kit” that a well-run franchise system can offer.
While that’s a slight over-simplification, it is not too far of a stretch. While it’s not easy money, you are supported with expert teams, proven best practices, existing marketing collateral and strategy and, perhaps most importantly, a known brand. Buy here, pay here is a profitable franchise opportunity that has been proven for over 30 years. I work every day with new and veteran franchisees who have grown an organization of automotive dealerships simply by following proven methods. What’s more, any good franchising system has great networking opportunities for you to learn from other owners in the brand.
Have you ever wondered about what to do with that empty building or vacant property you may own or drive by every day? A used car and finance dealership can utilize 1-1.5 acres and a 5,000-sq.-ft. building and begin to “earn” for ownership.
With buy here, pay here, you determine the inventory. You are not at the whim of new models or even worse, controlled by a manufacturer. Fill your lot with proven and reliable models that your customers want. Additionally, you set your involvement. I work with many franchisees who have great management teams and are loosely involved, while others are plugged into the day-to-day. You have the freedom to set up your own operation.
A large segment of buy-here, pay-here customers are credit-challenged due to unfortunate events in their life that had an impact on their credit rating. This is an opportunity for you to help them get back on their feet.
A new car dealership may have to turn away someone regardless of whether they demonstrate an ability to make payments. A buy-here, pay-here dealership can close that sale because they are self-financed. This is an opportunity to make a real difference in someone’s life. People depend on their vehicles, and you can provide a positive course correction for a customer with a buy-here, pay-here operation. In many cases, you are helping people support their families. The stories I’ve heard from franchisees I’ve worked with over the years really validate the industry.
I realize, at the end of the day, the final decision is going to be about numbers. There are some great anecdotal reasons as to why investors enter into the buy-here, pay-here industry, but there are also financial ones. Aside from it being a cost-effective reuse of real estate, the used car dealership industry is worth around $118 billion and is projected to continue growing. It employs over 270,000 people. Buy here, pay here is a large portion of the industry and provides one of those rare opportunities to not only profit greatly, but also play a key role in helping a fragmented market segment.