I have been working with a finance company called CAR Financial. They offer something called PIPP for in house finance notes.
Basically they offer an advance on your clients monthly payments. They advance you 82% of client payments (6months worth) upfront. If the client doesn't pay, CAR Financial will want their money back.
Has anyone found that using this is helpful?
There are several full recourse deals like this, what is the average front line cost on your unit? This amount will affect the usefulness on the PIPP product.
My average ACV on a vehicle would be $4500, the financed price would be around $8900.
The issue I've encountered is an accounting nightmare with using PIPPs. You receive unearned income and spend it on necessities without knowing how many clients will default. Once they do default then I have to pay back large amounts which were advanced to me.