Norwell, Mass. — OnPoint Financial Corp. launched “30/30,” a lending program designed to create a turnkey buy-here, pay-here (BHPH) operation for new-car dealers. The new plan does not require dealers to buy back repossessed vehicles, a feature the company said dealers and agents demanded.
“We asked our partners what we could do to be more competitive in the subprime market, and they told us,” said Andy Regula, director of sales and marketing, OnPoint. “By dropping the buy-back requirement and increasing the advance, we’ve made our already successful loan program more attractive to dealers and agents.”
Vehicles that are sold under the 30/30 program and repossessed will be automatically sent to auction. The selling dealer can choose to reclaim the vehicle within five days. If they decline, OnPoint charges the difference between the advance plus fees — minus any payments collected — and the auction price to the dealer’s reserve account.
A second component of the new program rewards eligible dealers with a monthly distribution payment. Dealers with at least 30 vehicles in their OnPoint portfolio and at least 30% of the outstanding balance in their reserve account receive a payment equal to any amount above the minimum as their reserves earn.
OnPoint Financial Corp. has offered a turnkey BHPH operation directly to dealers since 2004. The company began marketing through a network of independent general agents this year.
