This text has undergone thorough fact-checking to ensure accuracy and reliability. All information presented is backed by verified sources and reputable data. By adhering to stringent fact-checking standards, we aim to provide you with reliable and trustworthy content. You can trust the information presented here to make informed decisions with confidence.
Loan servicing software is essential for Buy Here Pay Here (BHPH) dealers to manage loans efficiently, reduce risks, and stay compliant with regulations. Here’s what you need to know:
| Software | Key Features | Pricing | Best For |
|---|---|---|---|
| AutoStar F2 | CRM, GPS tracking, repo automation, integration with DealerSocket CRM | Custom pricing | Dealers needing all-in-one tools |
| DealerSocket iDMS | Credit bureau reporting, API, multiple payment methods | Custom pricing | Dealers wanting advanced APIs |
| Frazer | Affordable, GPS integration, bankruptcy tracking | $99/month | Small, independent dealerships |
| IDMS | Configurable workflows, omnichannel communications, real-time dashboards | Custom pricing | Dealers with multi-location ops |
| Lightico | Mobile payments, PCI compliance, ACH setup | Custom pricing | Dealers prioritizing mobile tech |
This software helps BHPH dealers streamline operations, improve collections, and enhance customer interactions. Focus on tools that align with your dealership’s size, needs, and budget.
AutoStar's Fusion 2 (F2) brings advanced tools to BHPH dealerships, combining loan management, GPS tracking, and automated payment processing in a single platform.
| Feature Category | Key Capabilities |
|---|---|
| Core Functions | • All-in-one CRM and accounting tools • Multi-account payment handling • Accessible on any web-enabled device |
| Automation Tools | • Triggers for repo status actions • Payment tracking with notifications • Nightly inventory updates |
| Integration | • GPS tracking with Spireon's GoldStar CMS • Seamless connection to DealerSocket CRM • Auto-sharing of 27 key data points |
This integration comes at a time when charge-offs in the auto sector reached 1.83% in Q4 2023, the highest in over a decade [5].
"Using a GPS collateral management system as a means to locate vehicles and remind customers that are delinquent is becoming more and more of the norm among independent car dealers."
– Antonio Rajan, AutoStar Solutions' Chief Revenue Officer [4]
When an account hits repo status, F2 simplifies the process by automatically notifying repo agents, assigning tasks to clerks, updating account statuses, and informing all key parties. These features address common operational hurdles for BHPH dealers.
F2 also integrates seamlessly with DealerSocket's CRM, allowing real-time updates across systems and improving efficiency [6].
"We're excited to announce yet another integration that will save dealers the two things they need most – time and money. Prior to this partnership, the only way to share information between our Fusion DMS and DealerSocket's CRM was manually re-entering the data. Our dealers needed a better, more efficient way to make updates in real time. Now it's one click of a button. Couldn't be any easier."
– Allen Dobbins, AutoStar President and CEO [6]
The platform's web-based design ensures dealers can access customer accounts and payment data in real-time from any device. This flexibility is especially useful for managing multiple locations or remote operations. With early-stage delinquencies at 2.66% and non-performing loans at 0.65% [5], F2 provides the tools dealers need to stay on top of their portfolios.
DealerSocket's iDMS platform offers a robust suite of tools for payment processing and loan servicing, tailored specifically for BHPH dealers. By combining automated workflows with multiple payment options, the system helps streamline dealership operations. Here's a closer look at its key features:
| Feature Category | Capabilities |
|---|---|
| Payment Processing | • Credit and debit card processing • Electronic bank transfers • Single-click ProPay enrollment • IVR, kiosk, and text-to-pay options |
| Portfolio Management | • Separate loan portfolio tracking • Automated credit bureau reporting • Repossession process management • Write-down and charge-off tools |
| System Integration | • Real-time data exchange • Integrated DMS/CRM system • Multiple payment processor options • Outbound/Inbound API support |
The platform integrates seamlessly with ProPay's LenderPay, making transaction processing more efficient by removing the need for separate payment systems [7].
"Dealers who take advantage of this integration will benefit from significantly lower, transparent merchant card processing fees, as well as a convenience fee option for those who want to eliminate the cost of card processing." - Cameron Darby, DealerSocket Chief Operating Officer [7]
With built-in credit reporting tools, dealers can verify and adjust payment histories before submission to ensure compliance and accuracy [8]. The system's real-time data synchronization minimizes manual errors and maintains consistency across multiple dealership locations [10].
DealerSocket's API framework further enhances functionality by connecting its platform with external partners. This allows dealers to:
Frazer Computing offers a loan servicing software tailored for independent dealerships, priced at $99/month or $999 annually. It's trusted by over 19,000 dealers across the country [12][13].
| Feature Category | Capabilities |
|---|---|
| Payment Processing | • Integration with FrazerPay and PayMyCar • Automated credit/debit transactions • Online payment portal for customers • CPI payment syncing |
| Collections Management | • Late fee calculations (daily/monthly) • Bankruptcy tracking • Repossession processing • Write-off handling |
| Risk Management | • GPS and starter interrupt device integration • Payment history tracking • Collateral protection monitoring • Multi-channel communication tools |
Frazer integrates with over 200 industry tools, including its 2021 partnership with Selly Automotive CRM, which supports real-time data syncing [14][15].
"We love the Selly product. It's a great fit for Frazer dealers. It includes the great pricing and powerful features that Frazer dealers have come to expect in other Frazer partnerships." - Michael Frazer, founder and president, Frazer Computing [14]
The software stands out with its payment flexibility, allowing dealers to reschedule payments and track various customer balances, including regular contracts, pick-up notes, late fees, repair charges, and deficiency balances [13].
Frazer also integrates with Solutions by Text and Textmaxx Pro to send automated payment reminders and collection notices. Additionally, it features a full accounting suite with a customizable general ledger to manage multiple revenue streams [12].
Automation tools, like GPS and starter interrupt device integration, simplify operations and help reduce financing risks for in-house programs [12]. These features make Frazer a strong option for independent BHPH dealers.
IDMS, developed by DealerSocket, offers a web-based solution tailored for independent and BHPH (Buy Here Pay Here) dealers. It combines advanced loan servicing with user-friendly account management tools to simplify daily operations. Below is a breakdown of its key features:
| Feature Category | Key Capabilities |
|---|---|
| Account Management | • Smart automation with configurable workflows • Customized collection queues • Multi-channel communications (email, phone, text) • Automated payment reminders |
| Payment Processing | • Payment options via IVR, kiosks, and text-to-pay • Promise-to-pay tracking • Portfolio separation for performance insights • Automated credit bureau reporting |
| Integration Suite | • Connects with 50+ third-party systems • LenderSocket integration • Vision Dealer Solutions vSignature • DealerSocket CRM and Inventory+ |
Coast to Coast Motors uses IDMS's API and its integration with REPAY's payment technology to streamline operations and improve cash flow management. CFO Travis Allison shares his experience:
"For dealers looking for a dealership management system that coordinates their service, their collections, and their sales all in one area, IDMS is definitely the way to go. It allows us to have an omnichannel approach to our business, and if your DMS can't provide that, you ought to look at IDMS." [16]
The platform also boasts real-time performance tracking through customizable dashboards. Allison highlights the importance of its API:
"I rely on IDMS's API to transfer data from IDMS to our third-party data software, so the ability to tap into IDMS remotely behind the scenes has been a huge benefit to me." [17]
IDMS stands out in collections management by offering features like:
When it comes to data security, DealerSocket designed IDMS with an architecture that prioritizes pushing data out rather than pulling it in, ensuring better protection for sensitive financial information [10]. With its focus on automation, security, and efficiency, IDMS provides the tools BHPH dealers need to manage their businesses effectively.
Lightico offers a mobile-first payment solution tailored for BHPH dealers, focusing on security, compliance, and ease of use.
| Feature Category | Capabilities |
|---|---|
| Payment Security | - PCI-DSS compliant processing - Secure card detail handling - Time-stamped audit trail for all transactions - Transaction IDs and digital receipts |
| Customer Experience | - Payments via text messages - Mobile-friendly interface - No app installation needed - Instant payment completion |
| Business Integration | - API connectivity with CRM systems - Workflow automation - Multi-channel communication - Real-time payment tracking |
These features deliver measurable results for dealers. For example, dealers have reported a 20% rise in payment completions and a 15-point improvement in NPS, showcasing the platform's ease of use and efficiency [18].
One example is Westlake Financial, where service reps now collect signatures and complete ACH forms via text during customer calls. This approach eliminates paper-based processes, significantly reducing processing time.
Lightico also simplifies loan servicing with tools that handle essential tasks like:
Lightico ensures secure, PCI-DSS–compliant transactions while offering customizable workflows. It replaces outdated IVR systems, integrates seamlessly with dealer management software, and automates payments - all while maintaining thorough compliance documentation. This makes it a powerful option for BHPH dealers looking to optimize their loan servicing processes.
Key features are essential for the success of BHPH (Buy Here Pay Here) dealerships. According to market data, BHPH dealers now account for nearly 12% of all used car financing in the U.S. [1]. This underscores the importance of having efficient loan management systems to stay competitive in this growing market.
| Software Feature | Impact on Business |
|---|---|
| Integration Capabilities | Ensures smooth data flow across platforms |
| Payment Processing | Simplifies collections and offers diverse payment options |
| Compliance Management | Helps meet regulatory requirements |
| Customer Management | Improves borrower interaction |
| Reporting Tools | Enables data-driven decisions |
These features lay the groundwork for software that can adapt to changing market needs.
James Carter from Premier Auto Financing shared his experience:
"DealerClick's BHPH software has revolutionized the way we manage financing. Its intuitive design has simplified our loan management and customer billing processes, making it a vital tool for our operations." [3]
Automated payment systems play a key role in reducing late payments and extending loan terms [1]. This is particularly important when you consider that 20% of Americans have credit scores below 600, and another 22% fall between 600 and 699 [2].
When choosing software, dealers should focus on:
These priorities directly address the challenges BHPH dealers face.
Maria Fernandez, General Manager at Metro Wheels & Deals, highlights the benefits:
"Thanks to DealerClick, our BHPH dealership has seen remarkable improvements in efficiency and customer satisfaction. The software's robust reporting and collections modules have been game changers in how we handle our business." [3]
While custom solutions may require a higher initial investment, they offer long-term advantages with tailored features and scalability [19]. The right software not only streamlines operations but also improves communication with borrowers, setting BHPH dealers up for growth in an expanding market.
More than a decade of Ivan's career has been dedicated to Finance, Banking and Digital Solutions. From these three areas, the idea of a fintech solution called Debepxert was born. He started his career in Big Four consulting and continued in the industry, working as a CFO for publicly traded and digital companies. Ivan came into the debt industry in 2019, when company Debexpert started its first operations. Over the past few years the company, following his lead, has become a technological leader in the US, opened its offices in 10 countries and achieved a record level of sales - 700 debt portfolios per year.
.svg){kind=icon}
.svg){kind=icon}
.svg){kind=icon}
