NABD completes latest BHPH industry benchmarks report

The National Alliance of Buy Here, Pay Here Dealers (NABD) today announced that it has finalized a new Benchmarks and Trends Report containing information about subprime and deep subprime auto finance performance for the year 2016.

“Our benchmarks report comes at an important time when competition for the best subprime customers from independent finance companies, franchise operators, credit unions and others who are seeking higher yields in the low-yielding environment of today has been significant,” said Ken Shilson, President and Founder of NABD. “Although BHPH industry profitability for independent operators was depressed in 2016 by this competition, better days are ahead for independent operators who embrace the changes necessary to succeed today.

“The old ways are not working like they have in the past so the BHPH industry must adjust to the new challenges caused by the increased competition. The adjustments start by understanding the market changes and by comparing your own performance with your peers,” Shilson added.

A few key highlights from the 2016 benchmarks report include:

  1. Bad debts increased from higher amounts financed (severity), from competitive pressures which depressed down payments and repayments, and increases in the allowance for bad debts in anticipation of a new credit loss measurement standard passed by the AICPA in June 2016.
  2. Operations income was reduced by higher operating expenses which were impacted by additional compliance costs and inflation, bad debts, and an increased cost of vehicles.
  3. Recovery income was reduced by lower yields from the liquidation of repos.

Past Benchmark Reports can be downloaded free of charge from the Subprime Analytics website ( covering the last five years. The most recent report will be posted in May 2017 prior to the NABD National Conference for BHPH in Las Vegas, May 23-25. More information is available at

Ken Shilson and Chuck Bonano, 20 Group Director, will discuss the aforementioned Benchmarks and Trend Report at the NABD Conference in May to help readers understand the results.

To register for the 19th annual NABD conference, visit


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