MATTHEWS, N.C. — Subprime lending company Ace Motor Acceptance is working to “recognize the needs of the dealer,” as well as ramping up its offerings for the buy-here, pay-here market.

The company, founded in 1998, made the transition into the BHPH market through the creation of its BHPH in A Box program in 2009, Wayne Garland, director of business development at AMAC, told SubPrime Auto Finance News.

Explaining the offering, Garland noted, “The BHPH in A Box program was launched in 2009 and has been widely successful in part because of its one-stop shop approach. In the past, dealers would use a multitude of vendors to provide the services included in AMAC’s BHPH in A Box program.

“BHPH in A Box provides at the point of sale capital funding, floor plan lines, collections if needed (or the dealer can continue to collect) access to GPS devices, GAP deficiency programs, service contracts, and dealer management software,” he continued.

And the company noted that the team is always working to make this offering "more complete."

Garland noted that underwriter functions, collection and lot training for BHPH dealers are amenities coming soon.

Further explaining the company’s program, Garland noted, “Upfront funding reduces the amount of capital needed to enter or expand current operations in the BHPH automotive world. By providing floor plan lines, AMAC allows dealers to stock their lot and use AMAC’s capital to do so.”

And through AMAC’s relationship with AUL Corp., AMAC is also able to offer vehicle service contract programs to BHPH dealers by providing extra funding on these deals with an AUL warranty.

“To truly complete the package, AMAC will soon provide underwriting training to BHPH dealers, collection training and lot training, which teaches everything from buying inventory and lot presentation to payment plans for their staffs. Aforementioned amenities provided by AMAC make the BHPH in A Box program a complete and viable asset for BHPH dealers,” Garland stressed.

Program Updates for 2012

And the company has just released some new features for the program in an effort to provide more security to BHPH dealers and customers.

AMAC worked with AUL Corp. to create a specifically designed vehicle service contract program that launched on the first of the year.

“The service contract allows dealers to offer a warranty to customers without having to pay for the warranty out of pocket due to additional funding on those loans with AUL warranties,” Garland explained.

"This addition to BHPH in A Box is provides added security for both the dealer and customer, as the dealer is less likely to have a customer ‘walk away’ from a car and loan if the vehicle breaks down with no warranty and the customer can rest assured that their vehicle is under warranty should anything happen,” he continued.

The company also noted with this addition, it aims to provide “extra funding for those BHPH deals with the AUL warranty and it makes the BHPH in A Box program more rounded and all-inclusive for its customer.”

Cutting Down on BHPH Risk Factors

And on top of service contract programs, AMAC also offers ways to cut down on the risk and loss factors associated with BHPH.

Over a decade ago, AMAC partnered with GPS company Passtime in an effort  to cut down on risk and loss for their own subprime customers.

Passtime provides AMAC with the a wireless or non-wireless GPS tracking device solutions to alleviate dealer risk.

“These devices not only remind customers when their next payment is due, but also provide GPS tracking to assist dealers get their vehicle back should a customer choose to ‘walk away’ from the vehicle and loan,” Garland stressed.

And these units can also be reused once the loan is paid off and reinstalled in another vehicle.

Moreover, these units are paid for at the time of funding, which cuts down on the upfront cost for the devices for dealers, Garland explained.

“To fully complete the package, both AMAC and Passtime provide training and support for the dealers to insure the units are installed correctly and removed properly. This partnership with Passtime has truly been a long and successful one,” he said.

Credit Bureau Reporting

The company also explained that it reports to credit bureaus in an effort to aid dealers, as well as customers looking to improve their credit.

“AMAC’s reporting to credit bureaus is truly a win-win situation for both dealers and customers,” stated Garland.

“By reporting to credit bureaus, the dealer is able to provide yet another great service to their customer. The dealer is able to help the customer build and re-establish their credit score with each payment and offer something the typical BHPH dealer does not offer.

“This allows the customer to potentially rebuild their credit thus giving them the possibility of even better financing the next time they need to make a major purchase. This is just one of many services offered by AMAC to ensure the highest quality care for their dealers and customers,” he further stressed.

In conclusion, Garland said, “AMAC brings an opportunity to the dealer to expand their current BHPH operations or get into the BHPH business. Whether you are already a BHPH dealer or interested in becoming a BHPH dealer, AMAC has most of the tools in one easy place with a team that’s willing to go above and beyond."

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