Recent data from PYMNTS.com reveals a troubling trend: borrower credit scores are plunging following a rise in student loan delinquencies. While many financial institutions may see this as a red flag, savvy Buy Here Pay Here (BHPH) dealerships can recognize a golden opportunity: increased demand from credit-challenged consumers who still need reliable transportation.

Millions of Americans are now dealing with the fallout of paused or forgiven student loans coming due again—and with that, an uptick in delinquencies. As a result, FICO scores are dropping across the board, locking consumers out of traditional auto financing.

Enter BHPH dealers.

You independent, in-house financing specialists are uniquely equipped to serve the segment of the population with bad credit—or no credit at all. Instead of relying on strict credit criteria, BHPH operations focus on real-life affordability and employment stability, offering real solutions for real people, especially those facing student loan delinquencies.

With more people facing loan rejections from banks and credit unions, the BHPH business model is more needed than ever. Here’s why:

• Higher Foot Traffic: Consumers with newly damaged credit scores are turning to alternative financing. BHPH dealerships are often the first—and only—place they can get approved.

• Underwriting an Opportunity: Coupled with sound underwriting, BHPH dealers can take the real risk that comes with credit damaged customers and structure an appropriate financing arrangement that funds the customer will bringing a return for the dealer.

• Stronger Customer Loyalty: People remember who gave them a chance when no one else would. BHPH customers are often repeat buyers and refer family and friends, especially when treated with respect and dignity.

But, how can BHPH dealers capitalize on this trend?

Now is the time for BHPH dealers to ramp up marketing and prepare for an influx of traffic. Here are a few strategies to consider:

• Emphasize "No Credit? No Problem!" Messaging: Tailor your branding and ads to acknowledge the reality many consumers are now facing. Normalize the experience of having imperfect credit.

• Partner with Credit Repair Services: Many communities have credit counseling or licensed credit repair service organizations – both non-profit and for profit. Look to partner with these organizations to offer value-added resources for your customers to help buyers rebuild their credit.

• Streamline the Approval Process: Focus on employment and income-based underwriting, and leverage technology to make application and approval faster.

Ultimately, the increase in student loan delinquencies isn’t just a financial headline—it’s a signal that millions of Americans need someone in their corner. BHPH dealers are in a powerful position to meet this need, offering dignity, access, and flexibility in uncertain times.

In the face of economic challenges, one thing remains constant: people still need cars to get to work, take care of their families, and live their lives. BHPH dealers help keep America moving—and in times like these, that role is more important than ever.

(BHPH United is comprised of 7 service providers to the BHPH industry: Auto Master Systems, Big Time Advertising and Marketing, Buckeye Dealership Consulting, Ignite Consulting Partners, Ituran USA, PrimaLend Capital Partners, and Tax Max.)