What is the average down payment (cash/trade/deferred) for Byrider stores in the second quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| First Quartile = 2 Stores | Average | Exceed Avg. | Median | Second Quartile = 2 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| 26 | 36 | ||||||
| Vehicle Purchase Price 26 | $5,872 | 50.00% | $5,872 | Vehicle Purchase Price 26 | $5,958 | 50.00% | $5,958 |
| Reconditioning Expense 27 | $2,978 | 50.00% | $2,978 | Reconditioning Expense 27 | $2,963 | 50.00% | $2,963 |
| Down Payment (cash/trade/deferred) 28 | $3,840 | 50.00% | $3,840 | Down Payment (cash/trade/deferred) 28 | $3,316 | 50.00% | $3,316 |
| Gross Mark-Up 29 | $7,581 | 50.00% | $7,581 | Gross Mark-Up 29 | $7,570 | 50.00% | $7,570 |
| Installment Contract Amount Financed 32 | $14,608 | 50.00% | $14,608 | Installment Contract Amount Financed 32 | $14,562 | 50.00% | $14,562 |
| Interest Rate 33 | 22.12% | 50.00% | 22.12% | Interest Rate 33 | 22.44% | 50.00% | 22.44% |
| Monthly Payment Equivalent Amount 34 | $489 | 50.00% | $489 | Monthly Payment Equivalent Amount 34 | $481 | 50.00% | $481 |
| Discount Rate 30 | 30.00% | 100.00% | 30.00% | Discount Rate 30 | 30.00% | 100.00% | 30.00% |
| Average Trade Percentage 37 | 37.02% | 50.00% | 37.02% | Average Trade Percentage 37 | 18.75% | 50.00% | 18.75% |
| Average CoBuyer Percentage 38 | 28.83% | 50.00% | 28.83% | Average CoBuyer Percentage 38 | 14.39% | 50.00% | 14.39% |
| All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.44% | 50.00% | 8.44% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.70% | 50.00% | 8.70% |
| Net Charge Off (as % of Portfolio Amount) 39 | 0.66% | 50.00% | 0.66% | Net Charge Off (as % of Portfolio Amount) 39 | 0.85% | 50.00% | 0.85% |
| Static Pool Charge Off (Originations from 2 Years Prior) 40 | 13.73% | 50.00% | 13.73% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 16.82% | 50.00% | 16.82% |
| Average Cash on Cash (Originations from 2 Years Prior) 41 | 127.02% | 50.00% | 127.02% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 123.67% | 50.00% | 123.67% |
| Warranty Expense/Vehicle Sold 31 | $958 | 50.00% | $958 | Warranty Expense/Vehicle Sold 31 | $866 | 50.00% | $866 |
| Average Monthly Marketing Expenses 42 | $12,961 | 50.00% | $12,961 | Average Monthly Marketing Expenses 42 | $16,525 | 50.00% | $16,525 |
| Average Monthly Operating Expenses 36 | $201,678 | 50.00% | $201,678 | Average Monthly Operating Expenses 36 | $187,540 | 50.00% | $187,540 |
| First Quartile = 23 Stores | Average | Exceed Avg. | Median | Second Quartile = 23 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| Vehicle Purchase Price 26 | $6,746 | 17.39% | $7,235 | Vehicle Purchase Price 26 | $6,607 | 47.83% | $6,721 |
| Reconditioning Expense 27 | $2,211 | 60.87% | $2,126 | Reconditioning Expense 27 | $2,215 | 52.17% | $2,198 |
| Down Payment (cash/trade/deferred) 28 | $2,380 | 30.43% | $2,187 | Down Payment (cash/trade/deferred) 28 | $2,439 | 52.17% | $2,455 |
| Gross Mark-Up 29 | $6,988 | 52.17% | $7,007 | Gross Mark-Up 29 | $6,948 | 52.17% | $7,092 |
| Installment Contract Amount Financed 32 | $15,522 | 60.87% | $15,689 | Installment Contract Amount Financed 32 | $14,442 | 52.17% | $14,621 |
| Interest Rate 33 | 20.68% | 34.78% | 20.32% | Interest Rate 33 | 21.55% | 47.83% | 21.23% |
| Monthly Payment Equivalent Amount 34 | $495 | 52.17% | $495 | Monthly Payment Equivalent Amount 34 | $485 | 43.48% | $478 |
| Discount Rate 30 | 29.13% | 56.52% | 30.00% | Discount Rate 30 | 29.86% | 78.26% | 30.00% |
| Average Trade Percentage 37 | 19.06% | 30.43% | 16.32% | Average Trade Percentage 37 | 17.95% | 56.52% | 18.38% |
| Average CoBuyer Percentage 38 | 17.46% | 39.13% | 15.89% | Average CoBuyer Percentage 38 | 15.71% | 39.13% | 14.11% |
| All Delinquency (% of portfolio 1 or more days delinquent) 35 | 9.27% | 60.87% | 8.36% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 10.40% | 52.17% | 10.12% |
| Net Charge Off (as % of Portfolio Amount) 39 | 0.96% | 56.52% | 0.93% | Net Charge Off (as % of Portfolio Amount) 39 | 1.17% | 52.17% | 1.16% |
| Static Pool Charge Off (Originations from 2 Years Prior) 40 | 19.43% | 60.87% | 18.70% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 24.43% | 52.17% | 24.23% |
| Average Cash on Cash (Originations from 2 Years Prior) 41 | 115.86% | 56.52% | 116.54% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 111.60% | 52.17% | 112.08% |
| Warranty Expense/Vehicle Sold 31 | $656 | 43.48% | $735 | Warranty Expense/Vehicle Sold 31 | $740 | 52.17% | $714 |
| Average Monthly Marketing Expenses 42 | $5,552 | 47.83% | $6,204 | Average Monthly Marketing Expenses 42 | $7,147 | 60.87% | $6,716 |
| Average Monthly Operating Expenses 36 | $176,686 | 56.52% | $165,214 | Average Monthly Operating Expenses 36 | $159,927 | 60.87% | $151,437 |
| First Quartile = 25 Stores | Average | Exceed Avg. | Median | Second Quartile = 25 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| Vehicle Purchase Price 26 | $7,166 | 52.00% | $7,162 | Vehicle Purchase Price 26 | $6,579 | 48.00% | $6,72 |
| Reconditioning Expense 27 | $2,395 | 64.00% | $2,134 | Reconditioning Expense 27 | $2,214 | 48.00% | $2,287 |
| Down Payment (cash/trade/deferred) 28 | $2,597 | 36.00% | $2,332 | Down Payment (cash/trade/deferred) 28 | $2,552 | 48.00% | $2,457 |
| Gross Mark-Up 29 | $7,148 | 52.00% | $7,190 | Gross Mark-Up 29 | $6,942 | 56.00% | $7,092 |
| Installment Contract Amount Financed 32 | $15,484 | 52.00% | $15,661 | Installment Contract Amount Financed 32 | $14,388 | 56.00% | $14,621 |
| Interest Rate 33 | 20.80% | 44.00% | 20.35% | Interest Rate 33 | 21.45% | 48.00% | 21.23% |
| Monthly Payment Equivalent Amount 34 | $495 | 44.00% | $487 | Monthly Payment Equivalent Amount 34 | $480 | 40.00% | $476 |
| Discount Rate 30 | 29.28% | 64.00% | 30.00% | Discount Rate 30 | 29.58% | 76.00% | 30.00% |
| Average Trade Percentage 37 | 21.55% | 40.00% | 17.48% | Average Trade Percentage 37 | 20.07% | 44.00% | 18.40% |
| Average CoBuyer Percentage 38 | 18.65% | 40.00% | 17.39% | Average CoBuyer Percentage 38 | 17.46% | 48.00% | 15.89% |
| All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.96% | 68.00% | 8.36% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 10.34% | 56.00% | 10.02% |
| Net Charge Off (as % of Portfolio Amount) 39 | 0.90% | 52.00% | 0.89% | Net Charge Off (as % of Portfolio Amount) 39 | 1.10% | 48.00% | 1.11% |
| Static Pool Charge Off (Originations from 2 Years Prior) 40 | 18.26% | 60.00% | 16.32% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 23.37% | 52.00% | 23.04% |
| Average Cash on Cash (Originations from 2 Years Prior) 41 | 117.78% | 52.00% | 119.92% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 113.13% | 56.00% | 114.10% |
| Warranty Expense/Vehicle Sold 31 | $708 | 40.00% | $735 | Warranty Expense/Vehicle Sold 31 | $780 | 52.00% | $771 |
| Average Monthly Marketing Expenses 42 | $7,082 | 44.00% | $7,394 | Average Monthly Marketing Expenses 42 | $7,652 | 64.00% | $6,816 |
| Average Monthly Operating Expenses 36 | $181,257 | 48.00% | $184,794 | Average Monthly Operating Expenses 36 | $160,803 | 60.00% | $150,553 |
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the average down payment (cash/trade/deferred) for stores in the second quartile varies depending on the number of stores included in the quartile. When the second quartile consists of 2 stores, the average down payment is $3,316. However, when the second quartile consists of 23 stores, the average down payment is $2,439. When the second quartile consists of 25 stores, the average down payment is $2,552.
These figures represent the average down payments across a segment of Byrider franchise locations and can provide prospective franchisees with a benchmark for understanding typical customer down payments. Down payments are a critical component of the Buy Here Pay Here business model, influencing the amount financed and the associated risk. A higher down payment reduces the amount financed, potentially lowering the risk of default.
It is important to note that these are averages, and individual store performance may vary. Factors such as local market conditions, customer demographics, and store management practices can influence actual down payment amounts. A prospective franchisee should consider these factors and conduct thorough market research to assess the potential for their specific location.
Prospective franchisees should also inquire about the range of down payments observed in the second quartile, as the average may be skewed by outliers. Understanding the distribution of down payments can provide a more comprehensive view of the financial dynamics within this performance segment. Additionally, it would be beneficial to understand how Byrider supports franchisees in optimizing down payment strategies to balance sales volume and risk management.