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Las Vegas, NV   May 16, 2011  -- FinCo Management , an innovator in the BuyHerePayHere business, has announced it has begun to purchase consumer  contracts for subprime and deep subprime consumers. 

The Marblehead, MA finance company introduced its “BHPT HYBRID” product at the 2011 NABD Dealer Academy today.  “This product opens the door for dealers to sell cars to previously consumers who do not have access to financing.  Our unique model allows the dealer to take a small profit at the time of sale and a full profit over time” said Toby Reiley, FinCo’s CEO.  “These profits can be much larger than traditional sales, but the dealer takes the profits near the end of the contract.”

FinCo Management’s HYBRID product offers dealers without a finance department to gain instant entry to the BHPH market without any investment of cash, software or extensive training. FinCo Management’s contracts are funded in two days for 50% of the amount financed up to the auction price of the vehicle.  The dealer recoups the cost of the automobile upon sale and realizes profit from future consumer payments over time.

FinCo Management’s  offering enables dealers  to make incremental sales with the consumer experiencing a direct financing.  While the dealer must wait for the profit from the sale, FinCo Management recognizes that many dealers have  customers with “cash income” or “no social” but are  good candidates within their communities.

FinCo Management’s offering covers every detail and operation of the BHPH process, with the dealer benefiting from the centralized operations and industry-leading third party providers.  Dealers gain efficiency while reducing risks and costs when compared to creating and operating their own finance and compliance departments.

Dealers are endorsing the BHPT HYBRID product.  Matt Houlihan, General Manager at Lewis Motor Sales in Lawrence, MA was an early user of the product: “FinCo saved a sale that no other lender would have bought.  We covered all  expenses at closing, took a small profit, and have the opportunity to realize $3,100 of profit over time.  Without FinCo, that buyer would have been lost.  We expect this program to capture sales that previously would have walked off the lot.  It was easy to learn and use.”

Reiley said: “We earn our fees as the contract performs, not at funding.  Why should a dealer pay a big fee up front before the lender has performed?  Further, we have no sign-up fees, no monthly minimums, and we never charge the dealer a percentage of the principal at payoff. 

“FinCo Management is currently approving advances for dealers in Massachusetts and will begin accepting applications to for the initial dealer partners in California, Florida, Texas, Tennessee and Illinois in the month of June.”

FinCo Management is licensed/approved in 30 states as a retail sales finance company, and is represented as by a network of independent sales reps.  Earlier this week, the Company announced it secured a credit facility and growth equity from investors, including Metropolitan Equity Partners and RIK Enterprises, which will enable the Company to purchase $30 million of Contracts this year.  For more information, www.finacomanagement.com or call Mike Scalise, Director of Business Development at 781-639-6000.