Case Study · Automotive Finance
21 active BHPH dealer groups. $5M annual ad spend managed. 22,000 vehicles delivered per year. Cost per delivery under $230. Portfolio composition of high-quality, low-default-risk customers nearly doubled in four years.
An automotive finance software platform serving Buy Here Pay Here dealers identified a problem their dealer customers could not solve alone. BHPH dealers earn revenue from both the vehicle sale and the financing.
A Tier 1 customer carries low default risk and generates 36 months of loan payments. A Tier 4 customer who defaults at month four generates four months of payments and leaves a charge-off on the portfolio.
Every standard advertising platform treats both as an identical vehicle delivery in the campaign dashboard. As spend scaled, the algorithm found more deliveries and portfolio quality deteriorated.
At the start in March 2022, 24 percent of the founder's dealer group customers were Tier 1 or 2. The rest included a significant share of Tier 3 and 4 charge-off risks.
The platform's CRM included proprietary charge-off scoring that predicted default probability for every inquiry at the point of application. It existed as a closed loop. The gap between what the CRM knew and what the algorithm was told was where the portfolio quality problem lived.
The CRM assigns every inquiry to one of four tiers based on predicted charge-off probability at the point of application. Standard Google Ads tracking has no mechanism to reflect that difference at acquisition time.
Tier 1 customers carry the lowest default risk and the highest loan lifetime value: 36 months of payments on a completed loan. Tier 4 customers carry the highest default risk. A Tier 4 delivery that defaults at month four is a net negative despite appearing successful in standard reporting.
Tier-weighted conversion values change that. By assigning a higher weighted value to Tier 1 and 2 conversions than to Tier 3 and 4, the algorithm receives a signal that reflects the actual commercial value of each customer rather than treating all deliveries as equivalent.
The four-tier CRM scoring existed before LGG Media's involvement. The missing component was the integration that passed that scoring to the algorithm as a weighted conversion signal at the moment of inquiry, before a vehicle was delivered and before a default could occur.
LGG Media built a four-tier conversion tracking system integrated directly with the platform's CRM scoring output. The integration steers spend toward low-default-risk customers without manual audience exclusions.
The integration receives the tier designation from the CRM for every inquiry, then matches it back to the original ad click via device fingerprinting and click ID, the same infrastructure used across health insurance and omnichannel retail.
It sends four separate conversion events to Google Ads with conversion values weighted by tier. A single custom conversion goal combines all four into one optimization target.
The tROAS strategy optimizes for total weighted value across all tiers. The algorithm learns the Tier 1 and 2 customer profile and concentrates budget accordingly.
The same integration runs identically across every dealer. Dealer spend across the 21 active accounts ranges from $10K to $120K per month. The variance reflects dealership size, location count, and market competition, not differences in the methodology.
The founder tested tier-weighted bidding on their own dealership group before deploying it across the platform. Over four years, the portfolio composition shifted from 24 percent Tier 1 and 2 customers to 46 percent, a near-doubling of high-quality, low-default-risk customers.
Vehicle delivery volume remained consistent throughout. The algorithm found fewer Tier 3 and 4 customers and more Tier 1 and 2 customers from the same ad spend.
The commercial consequence extends beyond monthly cash flow. Lower charge-off rates improve cash flow predictability. A higher proportion of performing loans reduces reserve requirements. A portfolio at 46 percent Tier 1 and 2 is a materially different asset than one at 24 percent when a business goes to market.
The founder's dealership group sold in Q3 2025. The improved portfolio composition was recognized as a contributor to the business valuation. The advertising infrastructure built enterprise value, not just monthly delivery volume.
LGG Media now manages advertising for 21 active BHPH dealer groups through a white-label platform partnership. Total annual ad spend across all 21 dealers is $5M. The platform has delivered 22,000 vehicles over the rolling 12 months at an average cost per delivery under $230 and a cost per pre-approval under $150.
One dealer in March 2022. Twenty-one dealers in April 2026, a 21x increase driven primarily by dealer referrals within the platform's customer base. No dealer has left the platform since the partnership began.
Portfolio charge-off rates rise as BHPH ad spend scales under delivery-only optimization. The algorithm concentrates budget on the traffic that produces the most form submissions, not the customers who make payments.
Tier-weighted bidding reverses that dynamic. As spend scales, the algorithm finds more Tier 1 and 2 customers, not fewer, because the weighted signal improves its predictive model with every additional conversion event it receives.
The portfolio improvement documented in the founder's dealership group, from 24 percent to 46 percent Tier 1 and 2 over four years, represents the outcome available to every dealer as the algorithm accumulates tier-weighted signal over time.
The infrastructure behind it: CRM scoring passed back to Google Ads as a weighted conversion signal, matched to the click via device fingerprinting. How the attribution layer works → See how the underlying tracking works in our guides to Google Ads offline conversion tracking and call tracking.
Explore the approach: Subprime auto leads → · Lead generation → · Franchise PPC agency →
Next Step
Portfolio charge-off rates increase as ad spend scales under delivery-only optimization, because the algorithm concentrates budget on traffic that produces form submissions rather than customers who make payments.
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