In the BHPH world, the deal doesn’t end with the signature. It starts there. Every vehicle you finance is a high-risk asset, every borrower a leap of faith. And while you're managing payments, repairs, and repossessions, you're also juggling the pressure of growing your lot, reducing defaults, and protecting your inventory, often with razor-thin margins.
Late payments, broken promises, and disappearing vehicles aren't rare cases. They’re the reason BHPH dealerships walk a tightrope every day. You’re expected to be a lender, a dealer, and a collections agency all at once. And if your operations rely on manual processes, gut instinct, or guesswork, one bad week can undo months of progress.
So how do the most resilient BHPH operators stay ahead?
The automotive financing space is undergoing rapid transformation, especially in markets like North America—home to the largest share of subprime borrowers. According to recent research from Mordor Intelligence, the demand for flexible, tech-driven financing solutions is rising sharply. More dealers and lenders are embracing digital tools to assess risk, monitor assets, and streamline decision-making. This is especially true in the subprime and Buy Here Pay Here (BHPH) sectors, where loan default risk is higher and margins are tighter. As financing models evolve to meet modern expectations, connected technology is no longer just a bonus—it’s a business requirement.
The same research from Mordor Intelligence shows the global market size for financed vehicles is expected to reach 471.83$ Billion reflecting a healthy 7.7 CAGR. Used car finances which already commands 53.4% of the automotive finance market is growing at a 9.2% pace and is set to remain the key growth engine through 2030. If this means anything, it means that a great chance for growth exists but only if your company is willing to keep up with the growth of the market.
Aaron Hershey who is known as “The BHPH Guy” with a 25-year veteran of the industry recently pointed out on Linkedin:
“The BHPH industry is in a strong position to grow sales volume while improving credit quality a rare combination in auto finance.”
What’s fueling this?
Subprime auto delinquencies are soaring: Over 6.6% of subprime borrowers are now more than 60 days past due — the highest in decades.
Student loan delinquencies are accelerating: With forbearance ending, over 9 million borrowers are behind on payments. Many are falling into subprime credit and turning to BHPH dealers for auto financing.
Traditional lenders are tightening standards, pushing even more customers toward BHPH operators.
The takeaway: More demand from underserved borrowers + less financing competition = a massive growth opportunity for well-run BHPH dealerships.
But growth without control is risky. That’s where smart GPS tracking comes in.
The smartest BHPH dealers are shifting from chasing problems to predicting and preventing them. That shift is powered by Smart GPS technology, not just a dot on a map, but an entire ecosystem of real-time insights, automation, and alerts. Here’s what that looks like in action:
Vehicle disable/enable control from anywhere — reducing repossession costs and stress
Alerts when a vehicle leaves a region, enters a towing lot, or is parked too long in an unfamiliar area
Real-time location tracking that reduces time-to-recovery in case of defaults or theft
Behavior insights like excessive idling, which can indicate unauthorized use
In a volatile lending climate, these capabilities aren’t only useful they’re a competitive advantage, this is why we have prepared this small table showcasing the main pain points of BHPH dealers and how smart GPS helps you solve them:
Smart GPS for BHPH isn't just about tracking—it's a strategic business decision:
Protect your vehicles from theft or unauthorized use.
Drive timely payments by reinforcing visibility and accountability.
Simplify recovery processes, saving time and legal or operational costs.
Enhance trust through transparency and integrated software workflows.
Ready to make smart moves with your BHPH operation?
Trackhawk GPS offers tailored Smart GPS solutions that combine real-time tracking, remote immobilization, behavior monitoring, and portfolio analytics—all designed for automotive dealers and finance teams.
👉 Reach out to us or book a demo today and discover how real-time tracking can strengthen your bottom line and enhance your business resilience.