7 Essentials for Buy-Here, Pay-Here Success - DealersEdge

Key #1 Business ModelEXAMPLE:CAPITAL REQUIREMENT$40,000 / 20 = $2000(capital at risk) (sales per month) (Cash-In-Deal)$2000 + $700 = $2700(Cash-In-Deal) (Down Payment) (Total Inventory Cost)$2700 - $500 = $2200(Total Inventory Cost) (Reconditioning)(Average Purchase Price)A $1,000 increase in CID may require as much as$250,000 in additional capital in just one year.