Come see what makes us different. Come see what makes us better!

About Lease Here Pay Here LHPH merges the dealership and financial institution under one roof. We are predominately a hands on collection and customer service business that happens to offer vehicles. LHPH is a capital intensive business. Lack of capital is the number one reason LHPH businesses fail. Understanding cash flow, cash management and capital requirements imperative. Must have enough paying accounts to cover overhead and inventory replacement before running out of capital to be successful. LHPH can work nicely with a retail model if you lack sufficient capital to fund in house portfolio. Collections are manageable with proper collection practices.

LHPH Benefits Business and Tax Advantages Customer Advantages We own vehicle, it is titled in dealer’s name Recognize lease income as received, not when car is sold as in BHPH Simplicity, wrap all of our benefits into 1 rent charge No holding period or grace period; can pick up our asset and immediately re-lease Customer Advantages Mutually aligned interest to keep car on the road (Warranty) Property Taxes, Oil Change – again its our vehicle but this is a customer benefit as well Trade Program – keeping best customers in highest valued assets Lower Payments, which include Gap Insurance, Warranty, Property Taxes, Oil Change

LHPH = The Future Deal Structure Flexibility Control of the Asset Ability to Recycle the Asset

Understanding Capital Requirement is Key to Success Cash flow in over simplified terms: Assumptions: 6,000 average cost per vehicle after reconditioning 1000 average down payment 10 sales per month 325 monthly payment 10,000 overhead per month

1st month: 2nd month: 3rd month: 4th month: 5th month: 13th month: -Loan $50,000 on 10 vehicles leased -Overhead = $10,000 -Take in $10,000 in down payments -No payments collected -50,000 + 10,000 – 10,000 = 50,000 debt load   2nd month: -Carry $50,000 debt previous month -Take in $3,250 in payments on 10 paying accounts -50,000 (previous debt) + 50,000 (new loans) + 10,000 (overhead) – 13,250 (downs and pmts) = 96,750 debt load 3rd month: -Carry $96,750 debt previous month -Take in $6,500 in payments on 20 paying accounts -96,750 + 50,000 + 10,000 – 16,500 = 140,250 debt load 4th month: -Carry $140,250 debt previous mth -Take in $9,750 in payments on 30 paying accounts -140,250 + 50,000 + 10,000 – 19,740 = 180,510 debt load 5th month: -Carry $180,510 debt previous mth -Take in $13,000 in payments on 40 paying accounts -180,510 + 50,000 + 10,000 – 23,000 = 217,510 debt load 6th month: Carry $217,510 Loan/Overhead $60,000 Downs $10,000 Payments $16,250 x 50 217,510 + 60,000 – 26,250 = 251,260 7th month: Carry $251,260 Payments $19,500 x 60 251,260 + 60,000 – 29,500 = 281,760 8th month: Carry $281,760 Payments $22,750 x 70 281,760 + 60,000 – 32,750 = 309,010 9th month: Carry $309,010 Payments $26,000 x 80 309,010 + 60,000 – 36,000 = 333,010 10th month: Carry $333,010 Payments $29,250 x 90 333,010 + 60,000 – 39,250 = 353,760  11th month: Carry $353,760 Payments $32,500 x 100 353,760 + 60,000 – 42,500 = 371,260  12th month: Carry $371,260 Payments $35,750 x 110 371,260 + 60,000 – 45,750 = 385,510 13th month: Carry $385,510 Payments $39,000 x 120 385,510 + 60,000 – 49,000 = 396,510 14th month: Carry $396,510 Payments $42,250 x 130 396,510 + 60,000 – 52,250 = 404,260 15th month: Carry $404,260 Payments $45,500 x 140 404,260 + 60,000 – 55,500 = 408,760 16th month: Carry $408,760 Payments $48,750 x 150 408,760 + 60,000 – 58,750 = 410,010 17th month: Carry $410,010 Payments $52,000 x 160 410,010 + 60,000 – 62,000 = 408,010 18th month: Carry $408,010 Payments $55,250 x 170 408,010 + 60,000 – 65,250 = 402,760 19th month: Carry $402,760 Payments $ 58,500 x 180 402,760 + 60,000 – 68,500 = 394,260 20th month: Carry $394,260 Payments $61,750 x 190 394,260 +60,000 – 71,750 = 382,510

Facts not accounted for: Results: Greatest debt load was $410,010 in months 16/17 Turned cash flow positive month 17 with 160 accounts 160 x 325 = 52,000 52,000 + 10,000 = 62,000 62,000 = 2,000 more than the sum of the amount loaned and overhead = cash flow positive! Once you turn cash flow positive, you pay down debt as fast as you accumulate it. Facts not accounted for: Does not account for growth in number of leases per month Does not include totaled units where you get a lump sum payout from insurance company, but lose the paying account Does not account for repossessions/lost paying accounts Does not include recycled units that are re-leased for no cost Does not account for cash sales and outside finance sales where you get a lump sum payout without having to loan money   Discussion: This is a number of paying accounts/downs per month (money coming in) vs. overhead/units leased (money going out) business. Obviously, you will continue to accumulate debt until there is more money coming in than going out. In the model above it becomes profitable when 160 accounts are paying monthly. Several facts of this business were left out in order to simplify it so you can see how the model becomes profitable. These omissions do not nullify the accuracy of the over simplified model because they cancel each other out over time. This model shows that this is a cash hungry business in that it took $410k to grow by 10 accounts a month. This is a benefit in that it keeps our competition to a minimum. It is a detriment in that most do not understand the model and therefore will not loan money to grow it. However, it also shows that our business generates an incredible amount of cash flow/profit if you have the capital to accumulate accounts and maximize growth. The model holds true as long as you keep your overhead in check and hold to the best practices we have standardized at Benchmark.

Maximize Your Advertising Dollars Word of mouth – Fix the vehicle when your customer has a problem with it. There is no bigger bang for your buck in advertising than word of mouth. Drive by/Location Facebook Google AdWords Radio/TV Web Search Platforms