Numbers: 2018 BHPH
By Kenneth Shilson, CPA
President, Subprime Analytics
I recently finished compiling
the above referenced subprime auto industry benchmarks / trends report for the
20th consecutive year. This year, the
2018 Report contains the following:
information and ratio comparisons for 2016 – 2018.
of sales and operating expense comparisons for 2016 – 2018.
“20 Group” operating comparisons for 2016-2018
metrics for 2016 – 2018, including leasing.
trend graphs for 2014 – 2018.
explaining the 2018 highlights and a look at what is ahead!
special thanks to SGC Certified Public Accountants and to NIADA “20 Groups” who
again contributed to this Report.
the last 30 days I have received numerous telephone calls requesting copies of
this report. Although it is important to
learn what others in the industry are doing from the benchmarks, I believe it is
even more important to:
your own results with industry and regional peer performance using comparable
data and computations.
the best practices of the most successful operators.
the changing industry trends which will impact future performance.
operating practices which should be avoided (“worst practices”).
corrective adjustments to your own operating practices.
the NIADA/NABD Convention and Expo on June 17-20 at the Venetian Resort and
Casino in Las Vegas, I will discuss the benchmark highlights, industry trends,
best practices and identify the most lucrative subprime profit opportunities during
my presentation on Tuesday morning, June 18. Copies of the entire report will be available for
all convention attendees.
the interim, here are some of the most important takeaways learned from 2018
performance which I will discuss at the convention:
longer length of installment contracts is adversely impacting default rates,
repayments are not keeping pace with inflation and rising operating costs,
financed are increasing, making customer repayment more challenging,
margins are compressed so cost control is more essential,
debt losses have increased, which has tightened credit availability,
is the time to evaluate your own business model from a cash efficiency
who want more information and assistance can email me at firstname.lastname@example.org or call
of the prior year benchmark reports are available for downloading, free of
charge, at www.subanalytics.com.
Kenneth Shilson is
President and Founder of NABD and Subprime Analytics which provides
computerized portfolio analysis for operators and capital providers in the
subprime auto finance industry. Their
website is at www.subanalytics.com
or phone 832-767-4759.