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2019-05-20 Inside The Numbers: 2018 BHPH Benchmarks / Trends Report

Inside The Numbers: 2018 BHPH

Benchmarks / Trends Report


By   Kenneth Shilson, CPA

        President, Subprime Analytics


                I recently finished compiling the above referenced subprime auto industry benchmarks / trends report for the 20th consecutive year.  This year, the 2018 Report contains the following:

1)       Financial information and ratio comparisons for 2016 – 2018.

2)       Cost of sales and operating expense comparisons for 2016 – 2018.

3)       NIADA “20 Group” operating comparisons for 2016-2018

4)       Loss metrics for 2016 – 2018, including leasing.

5)       Industry trend graphs for 2014 – 2018.

6)       Narratives explaining the 2018 highlights and a look at what is ahead!


My special thanks to SGC Certified Public Accountants and to NIADA “20 Groups” who again contributed to this Report.


During the last 30 days I have received numerous telephone calls requesting copies of this report.  Although it is important to learn what others in the industry are doing from the benchmarks, I believe it is even more important to:

1)       Compare your own results with industry and regional peer performance using comparable data and computations.

2)       Identify the best practices of the most successful operators.

3)       Understand the changing industry trends which will impact future performance.

4)       Identify operating practices which should be avoided (“worst practices”).

5)       Make corrective adjustments to your own operating practices.


At the NIADA/NABD Convention and Expo on June 17-20 at the Venetian Resort and Casino in Las Vegas, I will discuss the benchmark highlights, industry trends, best practices and identify the most lucrative subprime profit opportunities during my presentation on Tuesday morning, June 18.  Copies of the entire report will be available for all convention attendees.


In the interim, here are some of the most important takeaways learned from 2018 performance which I will discuss at the convention:

1)       The longer length of installment contracts is adversely impacting default rates,

2)       Customer repayments are not keeping pace with inflation and rising operating costs,

3)       Amounts financed are increasing, making customer repayment more challenging,

4)       Profit margins are compressed so cost control is more essential,

5)       Bad debt losses have increased, which has tightened credit availability,

6)       Now is the time to evaluate your own business model from a cash efficiency perspective.


Operators who want more information and assistance can email me at or call (832) 767-4759.


Copies of the prior year benchmark reports are available for downloading, free of charge, at



Kenneth Shilson is President and Founder of NABD and Subprime Analytics which provides computerized portfolio analysis for operators and capital providers in the subprime auto finance industry.  Their website is at or phone 832-767-4759.