At the end of 2025, 60+ day delinquencies reached an all-time high of 6.65% .
Interest rates are exceptionally high, often reaching 25% or more , compared to the 2025 average used-car APR of ~11.5%. how profitable are buy here pay here lots
Buy Here Pay Here (BHPH) lots are among the most profitable segments of the automotive industry, with average gross profit margins typically reaching —nearly double the margins of traditional retail car chains. At the end of 2025, 60+ day delinquencies
Successful BHPH lots generate revenue through three distinct "profit centers": At the end of 2025
Dealers often mandate "Collateral Protection Insurance" (CPI) or specialized GAP coverage , which can account for 20%–30% of total annual profit . 2. Current Profitability Metrics (2025–2026)
