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Rebranding for J.D. Byrider, a Giant among Buy Here, Pay Here Auto Dealerships

J.D. Byrider, a chain of so-called “buy-here, pay-here” used-car dealerships that cater to customers with risky, subprime credit histories or no credit history, is rebranding itself beginning this week, to encourage a more customer-friendly image and to signal improvements aimed at friendlier and faster customer handling, especially online.

“The big change for us is more on customer engagement,” CEO Craig Peters said in a phone interview. “We are doing more in the digital space. Our web site — and not just our web site, our whole online presence — is much improved.”

J.D. Byrider, based in Carmel, Ind., was founded in 1989. It serves about 150 U.S. dealerships, including 30 company-owned locations. The rest are independent franchisees. Altamont Capital Partners acquired the company in 2011.

Craig Peters

Byrider provides franchisees with dealership management software and other services, but the independent franchisees run their own businesses and secure their own funding in order to finance consumer loans.

“byrider: Buy. Finance. Drive On,” is the company’s new tagline. The new branding drops the “J.D.” in J.D. Byrider, and lower-cases the “byrider.” New ads emphasize the idea that customers can get on with other aspects of improving their lives, once they have a car.

“We are focused more on quality and service,” Peters said. New video advertisements sympathetically show the miseries of not owning a car, like walking in the rain, carrying groceries home on foot, or carrying a small child on the bus.

“If you could just finance a car, life would be so much easier. So stop wondering, ‘What if?’ and start moving forward. byrider: Buy. Finance. Drive On,” one ad says.

In general, buy-here, pay-here dealerships as an industry have a reputation as the dealership of last resort to credit-challenged buyers. Buy-here, pay-here customers typically pay much higher interest rates than prime-risk customers, and buy-here, pay-here dealers often require customers to accept starter-interrupt devices on their cars. If they miss a payment, the device makes it impossible to re-start the car once it’s shut off, until payment is received.

On the positive side, a buy-here, pay-here customer probably can’t get financing anywhere else, and the industry argues the starter-interrupt device is probably preferable to the alternative, which could be repossession. Dealers also argue that if customers make their payments on time they can establish or re-establish a more favorable credit history and maybe qualify for better financing next time.

The name “buy-here, pay-here” means the dealer funds the loans and collects the payments. In fact, “buy-here, pay-here” is becoming an outdated name. Many buy-here, pay-here dealerships accept automatic, recurring payments online, or payments via customers’ mobile devices, so customers don’t always have to pay “here” any more.

The point is, that’s in contrast to franchised new-car dealers who sell used cars, and independent used-car dealers. Those other dealers typically act only as a middleman on finance contracts for third-party lenders, like banks, credit unions, independent finance companies, and the automakers’ “captive” finance companies. The lenders collect the payments, not the dealers.

Read from the source here

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The reference to $1,522,305 above represents the two-year annual average net income from operations during the period between January 1, 2020 and December 31, 2021 (“Traditional Measurement Period”) for the top 25%, or 26 of the 107 franchisee-owned Byrider Traditional stores. 38.4%, or 10 of those 26 Traditional Mature Stores, met or exceeded that two-year annual average. The entire set of 107 Traditional Mature Stores generated a two-year annual average net income from operations of $721,720 during the Traditional Measurement Period. 42.06%, or 45 of the 107 Traditional Mature Stores, met or exceeded that average. More detailed information regarding Traditional Mature Stores, including the average net income from operations for the bottom 25% of the Traditional Mature Stores, can be found in Byrider Franchising, LLC’s Franchise Disclosure Document dated July 6, 2022. This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. © Byrider Franchising, LLC. 12802 Hamilton Crossing Blvd., Carmel, Indiana 46032. All Rights Reserved.

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