Profit potential drives car dealers to risky end of market: Collecting on high-interest, buy-here-pay-here loans requires adept, relentless managers to succeed Management-intensive

A handful of the city's new-car dealers are cautiously backing into the buy-herepay-here lot, a risky but potentially lucrative used-car business long the bastion of neighborhood lots and chains such as J.D. Byrider Systems. The allure of making in-house loans is interest rates that can top 21 percent and profit margins that can be 10 times higher than peddling fresh metal. While rebates on new cars come and go and make for volatile sales, the poor and those with credit...

 

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