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2017-04-10 NABD Completes New BHPH Industry Benchmarks Report!

 NABD Completes New BHPH Industry Benchmarks Report!


Houston, TX – The National Alliance of Buy Here, Pay Here Dealers (NSBD) today announced the completion of their annual industry benchmarks for the year ended 2016 with forward looking commentary and comparisons with prior years.

Ken Shilson, CPA and the President and Founder of NABD announced that this comprehensive report is the 19th consecutive year it has been published. “This year the report contains 20 Group operating information from both NCM and NIADA, financial results and ratios from SGC Certified Public Accountants and loss metrics prepared by Subprime Analytics. Shilson also provides extensive commentary to help readers understand the significance of the data. This is the most comprehensive report we have ever published on subprime auto finance,” Shilson declared.

“Our benchmarks report comes at an important time when competition for the best subprime customers from independent finance companies, franchise operators, credit unions and others who are seeking higher yields in the low-yielding environment of today has been significant. Although BHPH industry profitability for independent operators was depressed in 2016 by this competition, better days are ahead for independent operators who embrace the changes necessary to succeed today”, Shilson explained.

“The old ways are not working like they have in the past so the BHPH industry must adjust to the new challenges caused by the increased competition. The adjustments start by understanding the market changes and by comparing your own performance with your peers”, Shilson explained. This benchmark report will facilitate doing both.

Some important highlights about the 2016 benchmarks are:

1.      Bad debts increased from higher amounts financed (severity), from competitive pressures which depressed down payments and repayments, and increases in the allowance for bad debts in anticipation of a new credit loss measurement standard passed by the AICPA in June 2016.

2.      Operations income was reduced by higher operating expenses which were impacted by additional compliance costs and inflation, bad debts, and an increased cost of vehicles.

3.      Recovery income was reduced by lower yields from the liquidation of repos.

Many independent operators chose not to match aggressive underwriting competition which included longer loan terms and higher cost, newer model vehicles sold and financed to deep subprime customers.

“Better days are ahead for operators who are positioned to capitalize on opportunities created by underwriting mistakes made by others. However, operators must be proactive in order to regain their lost market share! This requires them to learn and implement new operating practices, technology, and to learn from the mistakes made by competitors and not repeat them”.

We will discuss all the market changes and offer tips and techniques which will help operators face these challenges successfully during our 19th Annual Conference at Wynn/Encore, Las Vegas on May 23-25, 2017. The conference theme is “The Changing World of BHPH” which features over 65 speakers/experts during this three-day event. Shilson will discuss the entire benchmark report with 20 Group Director, Chuck Bonano, in a session on Tuesday May 23rd. For conference information or to register visit

“Copies of the benchmarks report will be distributed to attendees of the conference and advanced copies will be made available only to those who register for this important event”, Shilson said. Operators can’t continue to do the same things and expect better results! It’s time to adopt some new operating practices.




Kenneth B. Shilson, CPA, is President of Subprime Analytic,, a consulting company that provides subprime portfolio analysis services. Subprime Analytics utilizes state-of-the-art data mining and extraction technology in order to identify loss trends and areas for underwriting improvement. Questions can be directed to him at, or by calling (832)767-4759. Ken Shilson is also the founder and President of the National Alliance of Buy Here, Pay Here Dealers (NABD) – who will hold its 19th Annual BHPH convention on May 23-2, 2017 at Wynn/Encore in Las Vegas. The conference will focus on “The Changing World of BHPH”.