However, their profitability is not derived from simple sales; it is built on a complex, high-risk financial model that functions more like a bank than a dealership.
Because the dealer is the bank, their cash is tied up in the cars sitting in customers' driveways. how profitable are buy here pay here lots
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) However, their profitability is not derived from simple