Byrider Franchising  

Carmel,  IN 
United States
  • Booth: 739C

Byrider Buy Here Pay Here Franchise Opportunity

Byrider is the only buy here pay here automotive franchise opportunity, and one of the highest return on investment oppotunities in America. Our business model integrates vehicle sales and financing to provide the franchisee the greatest control over the business and the ability to sell to the customer they feel is qualified. We're activly seeking franchisees across the United States.

Byrider is the consumer choice in helping people get a fresh opportunity to finance and own a quality vehicle 


Byrider CEO Introduction

 Show Specials

 Press Releases

  • So-called alternative credit-data sources such as records of phone and cable TV payment histories are gaining greater acceptance among automotive lenders in deciding whether to finance a vehicle purchase.

    So says Peter Oburu, vice president-automotive analytics for Equifax, a credit tracking and analytics company.

    “Lenders and the auto industry were a little leery when alternative-credit data was introduced a few years ago,” he tells WardsAuto. “We’ve demonstrated alternative data is viable. It is becoming more acceptable, especially in nonprime segments.”

    It’s particularly useful in scoring consumers with thin credit-bureau files or none at all, he says. “Consumers are not one-dimensional, and neither are their credit profiles.”

    Traditional credit data relies on the likes of mortgage and car payments to score consumer creditworthiness. But that leaves out non-homeowners or first-time car buyers, especially young people.

    “Most scores are built with credit-bureau data,” Oburu says. “That’s rich data, but if you are building a model across the range of the credit spectrum, especially if you are moving from the prime to nonprime segments, you want additional information beyond the traditional kind.”

    “In our industry over the last four or five years, model-building overall has become very competitive,” says Lou Loquasto, Equifax’s leader-automotive finance and dealer. “People in this game, Equifax included, are using more and deeper alternative data than ever before.”

    For Byrider, a used-car sales and finance company, Equifax developed a risk-assessment model that uses traditional credit data augmented with alternative data sources such as telecom and utility information.

    It creates better borrower profiles, says Gary Harman, Byrider’s chief risk officer who wanted to “mitigate risk and increase financial inclusivity for our buyers who happen to be subprime or deep-subprime borrowers.”

    The software, spun off Equifax’s Ignite model, has allowed Byrider to score 100% of its applicants, including those with no or thin credit files.

    Byrider says the hybrid model allowed the company to increase approvals 10%, yet with the same loss rate.

    Could a risk-assessment model rely solely on alternative data?

    “Yes, but why would you do that?” Harman says. “Subprime customers typically don’t have a big credit-bureau profile. Some have very thick bureau files with lots of bad things in them. I’m really interested in people who don’t have much bureau information at all.

    “They might have a payday loan or buy from a buy-here/pay-here dealership that doesn’t do bureau reporting. Just like any data, you are looking for stability and creditworthiness.”

    He says he can assess those positive financial factors as much from how conscientiously people pay utility and phone bills as those for credit cards.

    Regarding traditional vs. alternative credit data, Harman says, “It’s not that one is better, it’s just that combined they give you a broad view of what the consumer is really like.”

    He describes his typical customer as someone with relatively limited household income ($30,000). “They’ve had some past credit issues, mostly because they are fragile financially. That’s who we’re selling cars to.”

    According to an Equifax study, “the No.1 way a customer can go from subprime to prime – get their score to jump 50 points or more – is to take out an auto loan and pay it back well,” Loquasto says.

    Many lenders have pulled back from subprime financing. Last year, there were 9.2% fewer auto leases issued to consumers with subprime credit scores, the smallest subprime share since 2011, according to Equifax data.

    Yet auto lending remains robust across all financial fronts.

    “I’ve been in auto 24 years, this is competitive as I’ve ever seen it,” Loquasto says. “Lenders who don’t use alternative data are going to fall behind.”

    An Equifax survey indicates prime and subprime Millennials expect to spend the same amount on their vehicle (about $20,000). The study also says subprime Millennials appear more aware of their credit situation compared with subprime Baby Boomers.

    Online resources have helped consumers become more aware of their credit standing, says Rebecca Kritzman, Equifax’s senior director-automotive marketing.

  • According to Craig Peters, the key to being a great leader is “getting the right people in the right roles and empowering them to do great things”. When hiring new staff members, Craig always looks for people who think differently.

    Craig Peters, CEO of Byrider

    “If I have a bunch of people who just think the same way, then we’re always going to operate the same way. With the level of disruption and change in the automotive industry and in our business, that will not help us to become successful,” he says.

    “I want people to always be open to alternative ideas. There’s no such thing as a bad idea. You need to work through them and understand what makes sense, but you at least need to have people thinking differently and having those alternative ideas.”

    This type of “diverse thinking” is something Craig is trying to instill in his team at Byrider. After spending the majority of his career working in the finance industry, he joined the used-car franchise giant in 2017.

    “I really enjoy the automotive business and, even more importantly, I really enjoy the consumer segment that we serve. I think they truly are underserved and don’t have as many options as others,” he says.

    “I really enjoy the consumer segment that we serve. I think they truly are underserved and don’t have as many options as others.”

    Founded in 1989, Byrider is one of the largest integrated used-car dealership and franchise systems in America. It has 150 stores across 30 states and has sold more than 1.2 million cars.

    The dealerships aim to make the process of buying a used car quicker and easier for customers, particularly those who have subprime or no credit history. “We’re a fully integrated used-car franchise business. We’re the only subprime used-car franchise business out there, so that is certainly unique,” Craig says.

    Craig believes Byrider’s success is driven by its commitment to helping people buy a car, even if they have been turned down for traditional bank financing. In fact, this was the reason why Chevrolet-Cadillac dealer James DeVoe originally founded the business.

    He was determined to help people get reliable transportation and was willing to give them financing, even if they had been refused a loan by the bank. James began financing customers at his own car lot in 1979, and started the Byrider franchise with the goal of helping other business owners provide the same benefits to customers across the nation.

    The company was originally known as JD Byrider, but was rebranded earlier this year to help consumers better understand what the business offered. “We did a fair amount of consumer research around our previous brand and we found that there were some potential customers we weren’t reaching, because they didn’t really know what we did,” Craig explains.

    Craig Peters, CEO of Byrider

    “We thought it was the right time to introduce a modern look and feel to represent not only what we’ve done, but also where we are going.” The team decided to keep the name Byrider, but drop JD, to capitalize on JD Byrider’s strong brand equity and awareness built over 30 years of business.

    “We thought it was the right time to introduce a modern look and feel of the brand to represent not only what we've done, but where we are going.”

    To provide further clarity, they added the tagline, ‘Buy. Finance. Drive On.’ Not just a change of name, the rebranding process has also created a more customer-friendly image and helped improve Byrider’s customer engagement.

    “We’ve made some significant investments over the past few years to support our evolving customer base, including critical updates on our digital platform,” Craig notes. According to Craig, even just 10 years ago consumers were more traditional and would still drive around to multiple dealerships before making a buying decision.

    Nowadays, most people tend to do all their research online before going to a dealership to make the purchase. “We really needed to beef up our retail presence online and we put a lot of investment into our digital platform,” he adds.

    “We enhanced our inventory. If you’re going to put your cars online, they need to look nice and be what customers are looking for. We also renovated our stores. Looking towards the future, we’re looking at updating our technology capabilities to focus on streamlining our processes and making car buying easier – really elevating the customer experience.”

    Recognizing that improving technology is critical for the company’s ongoing success, Craig says Byrider has sought the assistance of U.Group to overhaul its digital platforms. “Our franchisees are looking to us to provide state-of-the-art technology and capabilities, so they don’t have to worry about going out and trying to cobble all that together themselves,” he says.

    “The organization needs to understand where you want them to go – and that’s not just so they can follow, but also so that they can question you and challenge you.”

    “We’ve been working with U.Group for about two years and they’re really helping us to reimagine our technology architecture, as well as building new applications. These are not only to support internal employees, but really a new set of customer-facing applications that are going to advance our tools and capabilities for the future. It’s difficult for a company of our size to go out and invest in the various technical capabilities that we need and U.Group has brought a lot of very critical expertise to help us think, innovate and move the business forward.”

    Byrider has also formed a strong partnership with Cox Automotive to improve their inventory. “They have an auction business where we buy much of our inventory, but they also have a lot of data and digital tools that we leverage as well,” Craig says.

    “They’ve been great and I think there are many opportunities for us to work with them further – just based on the breadth of what they cover.”

    In addition to selling used cars and providing in-house financing, each store also has its own service center. “Many of our competitors will sell and finance but don’t actually do service on the vehicles,” Craig says.

    “Aside from providing great car parts, AutoZone has gone as far as putting their own staff in our stores to help with parts ordering. This has really expedited the service and reconditioning process, which is critical for us.”

    Craig Peters, CEO of Byrider

    The company also works closely with the National Independent Auto Dealers Association (NIADA). “They bring together industry experts, partners that support the industry and, of course, dealers. They create forums to help shape the industry, but also to help share best practices. These forums allow us to learn more broadly about what’s going on in the industry and understand what’s working for people and what’s not working,” Craig says.

    Given that Byrider looks after car sales, finance and servicing, Craig says the business relies heavily on maintaining solid relationships with its key partners and suppliers.

    “We just can’t keep up with everything by ourselves. We feel like we’ve found some great partners that help us enhance our brand. So building those relationships has always been critical for us. We treat our partners as an extension of us, which I think is key,” he says.

    “Likewise, our partners put us at the forefront of their latest innovation, always finding a way to create the tools we need to improve our operations. They’re very open to helping us invest in their areas of specialization, which really helps to build our business out. We found a lot of success working with them in their current offerings, but we’ve also challenged each other to build out new capabilities in a world where you constantly have to innovate.”

    As Craig reflects on his time at Byrider, he points out that it hasn’t all been smooth sailing. “When I joined a little over two years ago, our particular segment of the industry was in a significant down cycle. Our business model hadn’t shifted to meet those evolving consumer behaviors and needs,” he recalls.

    “Over the past two years, we’ve really enhanced, or even evolved, our business model to meet those changing expectations.”

    Although there have been some big changes at Byrider, Craig says his team has embraced the challenge of evolving the business. “We’re in an environment where change will be constant,” he says. “I want people to take some risks and I want them to fail fast and learn from those mistakes. I think that’s critical to us, because we’re not going to learn if we don’t do things differently. I want an employee base that’s willing to do that.”

    “I want people to take some risks and I want them to fail fast and learn from those mistakes.”

    Craig believes that maintaining a strong customer-centric culture is also important to ensure Byrider’s ongoing success. “Culture is everything for us. It sets the tone for our customers’ experience and defines the values and vision of our business,” he says.

    Craig Peters, CEO of Byrider

    “Our culture is built around our customers and what we can do to provide an excellent experience. We ask our employees, ‘Well, how would you want to be treated? What can you do to improve that experience?’ We ask them to hold themselves to that standard.”

    While there’s no doubt Craig is a visionary leader, he says that it’s vital to provide his team with clarity around the vision so they understand the purpose and strategy.

    “Clarity is paramount. The organization needs to understand where you want them to go – and that’s not just so they can follow, but also so that they can question you and challenge you. I think those particular aspects are important because I’m not always going to have all the right ideas. I can set the high-level direction, but I’m going to need their support. They need to understand that so we can move forward,” he says.

    Although Byrider has had a lot of success in the marketplace over the past three decades, Craig is determined to keep growing the business. “I’m actually very excited about the growth opportunities that we have. I think as we build out these new capabilities and we improve our customer-facing applications and processes, we can really drive core growth within our current store footprint,” he enthuses.

    “Culture really is everything for us. It sets the tone for our customers’ experience and defines the values and the vision of our business.”

    “We have 30 company stores and I think we’ve mapped out a pretty good growth plan for how we can fill in existing markets where we don’t have full market penetration, but there are a lot of markets where we don’t have a presence. So I think there’s a tremendous opportunity for us to expand our current store footprint. And then we also have our franchise store growth. We have an extremely talented group of franchise owners and operators and they’re poised for growth themselves. With the investments that we’re making, it’ll not only enable us to support their growth ambition, but will also help us attract new owners to the franchise, which I think is critical.”

    With a new, modern brand, a strong focus on innovation and a unique offering in the marketplace, the future is looking bright for Byrider. “Our vision is for Byrider to be the consumer choice in our segment. We’re doing all of this to differentiate ourselves and make the car-buying experience exactly what each consumer wants. With all the investments we’re making, the real intention is just to make it much more efficient for the customer,” Craig says.

    “We’re really focused on positioning Byrider to be at the forefront of that innovation, which will open us up to a tremendous amount of opportunity, whether that’s growth or increasing the depth of our customer relationships. Right now, I think the industry is being disrupted. There’s no doubt about it – there’s a lot of innovation and a lot of investment. But I think we can leverage that to create a really exciting business that our consumers will love.”

  • We’ve been enjoying the strongest economy we’ve seen in a long, long time. Things are good across a great many industries, the auto sales industry being no exception. While I’m not a fan of doom and gloom prognostications, the odds are that at some point, the growth will slow. Smart investors and business operators know that diversifying your holdings is key in offsetting stagnation or loss by growing in other areas.

    Buy Here, Pay Here, particularly the franchise model, gives new vehicle dealers, as well as investors in other industries, an opportunity to not only diversify their holdings but succeed in helping people and prospering.

    With Easter not that far off, I’m reminded of the old saying about not putting all your eggs in one basket. It holds true, and a Buy Here, Pay Here franchise is an investment basket you’ll want to consider. The used car dealership industry is worth around $118 billion and is projected to continue growing. It employs over 270,000 people. Buy Here, Pay Here is a large portion of the auto industry and provides one of those rare opportunities to not only profit greatly but also play a key role in serving a subprime market segment.

    Why a Franchise? 

    We’ve all said something like, “you know, they oughta make…” The idea is not always the hardest part when it comes to starting a business. Inventing the product or coming up with a name might be done over dinner with friends. It’s the operations that are often the hardest part of starting a business. Who do you file legal papers with? How do you pay for it? And other basic questions with involved answers are where good ideas get tripped up.
    buy here

    With the exception of your initial investment (though, Byrider is able to facilitate partnerships that address this), a franchise operation solves many of these unknowns. The reason for this  is because a franchise is essentially a proven “business starter kit.” Brand recognition? Check. Inventory network? Check. Marketing support? Check. The list goes on and varies by franchise and industry. 

    Manage your own operations

    With Buy Here, Pay Here, even in a franchise setting, you have a great degree of control over your operations, including your inventory.

    If you happen to also own a new vehicle dealership, you know the worry every year, will the changes to a top seller be a bust? It’s not an issue at a used dealership. You determine the inventory, even in a franchise system. Stock your lot with the best sellers, cars you know the consumer will purchase. In fact, if you do own new car lots, you are uniquely qualified to know what moves.

    Looking for a good investment that you can manage at an arm’s length? Buy Here, Pay Here, particularly in the franchise system, allows you to set your involvement. I work with many franchisees who have great management teams and are loosely involved, while others are plugged into the day-to-day operations. 

    Utilize Existing Real Estate

    One of the real estate industry’s buzz words is redevelopment. Let’s redevelop the empty parking lot or vacant building that you own or can purchase on the cheap and repurpose it into a profitable business. A used car and finance dealership can utilize 1-1.5 acres and a 5000 sq. ft. building and begin to “earn” for ownership. If all the legal odds and ends are wrapped up in a timely manner, you could operate a Buy Here, Pay Here franchise within months. It’s a very cost-effective redevelopment of unused land. 

    Empower People

    This is an opportunity for you to help customers who are trying to get back on their feet. In a new car dealership, often beholden to a separate financing system, you may have to turn away someone regardless of whether they demonstrate an ability to make payments.

    In Buy Here, Pay Here, you hold the paper and make the decisions. This is an opportunity to make a real difference in someone’s life who needs the chance to prove themselves, which in turn leads to a loyal customer base and generates frequent referrals to your business helping your business grow.


  • Byrider Franchising -Buy Here Pay Here
    Buy Here Pay Here Franchise Dealership...

  • Byrider is the nation’s leading used car dealership and finance enterprise. Our company integrates vehicle sales and financing to give the franchisee the greatest control over their used vehicle business as well as the ability to sell to the customers they feel are qualified. It is the only small business franchise opportunity in America that also allows you to function as a bank or lender.

    Using the Byrider franchising model, the automobile retailer is no longer reliant upon a lender to make the sale. You will be wearing both hats, retailer and lender, giving you an unprecedented amount of control over each automobile sale. Being both retailer and lender offers a remarkable business model which can yield a high return on your investment. And when you franchise with us, making sure you see the fruits of your labor is incredibly important to us.

 Additional Info

This company does business in International markets.
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