Vehicle depreciation is expected to accelerate in 2015 as increased used-car supply and larger off-lease volumes place pressure on retention rates, according to the latest joint vehicle depreciation report from Black Book and Fitch Ratings Inc.
Finance Company Faces More Legal Scrutiny
A law firm is investigating potential claims on behalf of investors of Consumer Portfolio Services Inc. concerning possible violations of federal securities laws.
Carfax Calls Unfixed Recalls a Danger
New research from Carfax suggests that millions of people may be driving, buying or selling potentially dangerous cars due to an unfixed recall.
Auction Re-Opens
Southeastern Auto Auction of Savannah held its grand reopening & $10,000 cash giveaway sale Jan. 21.
AAA Offers Vehicles for Sale at Own Store
By Sheila McGrath
AAA has been around for almost as long as automobiles. For more than 100 years, the affiliation of motor clubs has built a reputation around a variety of services related to cars, from insurance to roadside assistance to travel planning.
But it wasn’t until recently that the clubs ventured into selling cars themselves.
Last November, AAA Mid-Atlantic, which serves Delaware, Maryland, Washington D.C. and parts of Virginia, Pennsylvania and New Jersey, opened a AAA Select PreOwned Auto Dealership near the Philadelphia International Airport.
“This is a good opportunity for us to try something new with our members and complete the circle,” said Keith McIntyre, manager of car buying for AAA Mid-Atlantic. “It makes perfect sense with what we do – it’s a nice fit, when you think of all the business lines we have.”
The auto sales program is aimed primarily at AAA members, who receive
FRONTLINE: Cars fill the lot at AAA Select Pre-Owned Auto Dealership near the Philadelphia International Airport. The store is owned by AAA Mid-Atlantic.
special benefits not available to the general public. But anyone is welcome to shop on the lot.
McIntyre said the program gives AAA MidAtlantic an opportunity to provide its members a trusted, no-haggle-pricing source for vehicles. AAA can then offer the buyers financing and insurance, and members can make
payments on their AAA credit cards.
“You don’t have to be a member, but the way we’ve structured it, it’s tailored to our membership,” McIntyre said.
McIntyre said they plan to keep between 75 and 100 cars on the lot, with prices ranging from $13,000 up into the $30,000 range.
All vehicles for sale have
fewer than 75,000 miles and are no more than six years old. Cars are given a 240-point inspection at a AAA Care facility prior to sale, and the cars come with several warranties. Auto auctions and a strategic relationship with the Hertz Corporation provide some of the inventory. However, many of their
Continued on page 12
NADA Forecasts Records for Lease Originations, Volumes
NADA Used Car Guide analysts predict that the number of consumer leases in 2015 should pass 1999’s record high of 3.3 million vehicles.
The number of vehicles turned in after their lease ends is equally staggering: 2.35 million.
That figure is a 20 percent increase over last year and points to how the used vehicle market is afected by the number of new vehicle leases.
“This year is going to be a significant one as we forecast late model used vehicle supply to grow by 8 percent,” said Jonathan Banks, executive analyst for NADA Used Car Guide.
“he number of personal lease registrations has grown by about 18 percent per year since 2011, and it is that trend which helps drive the used market’s supply levels.”
Among the many diferent vehicle types available for purchase in the used vehicle market this year, compact utility vehicles are expected to be the most highly represented segment, due to their recent popularity. Used luxury sport utility vehicles – like the Audi Q7 – are also forecasted to be easier to come by, with a 32 percent increase in availability versus 2014. Supply of mainstream used SUVs – such as the Ford Explorer and Chevrolet Tahoe– are also forecasted to grow by about 13 percent over last year.
Ally Promotes Auto Finance Executive to CEO
Ally Financial Inc. promoted its auto finance chief to lead the entire company at a critical point for both itself and the whole auto finance segment.
Jeffrey J. Brown has been named Ally’s chief executive officer, effective immediately.
Brown, who most recently served as president and CEO of Ally’s Dealer Financial Services business, has also joined Ally’s board of directors. Brown succeeds Michael A. Carpenter who is retiring as chief executive and from the board.
Brown served most recently as president and CEO of Ally’s Dealer Financial Services business beginning in March 2014. In that role, he was responsible for the company’s automotive finance, insurance and auto servicing operations. He was senior executive vice president of Finance and Corporate Planning from June 2011 to March 2014, and before that was Ally’s corporate treasurer.
Prior to joining Ally, Brown was the corporate
treasurer for Bank of America, where he had responsibility for the core treasury functions, including funding and managing interest rate risk. Brown spent 10 years at Bank of America, beginning his career in finance and later joining the Balance Sheet Management Division. During his tenure at Bank of America, he also served as the bank’s deputy treasurer and oversaw balance sheet management and the company’s corporate funding division. He was also a member of the company’s Asset/Liability Management Committee.
Brown received a bachelor’s degree in economics from Clemson University and an executive master’s degree in business from Queens University in Charlotte.
One of the main challenges for Brown is finding a way to replace the business Ally is losing to General Motors Financial Company Inc.
General Motors Co.’ higher emphasis on ofering its customers lease options through its captive General
We are one of the country’s largest providers of automotive financing products and services, combined with the consensus premier direct banking franchise in the country. We are absolutely committed to continue serving our millions of retail customers and nearly 17,000 auto dealers with market-driven, innovative products and services supported by 7,000 dedicated Ally employees.”
Jefrey J. Brown, Chief Executive Ofcer Ally Financial Inc.
Motors Financial subsidiary could pressure Allyto weigh other potentially higher risk avenues to support its growth, Fitch Ratings recently reported.
Fitch Ratings said the loss of the GM contract will reduce Ally’s exposure to residual value risk which Fitch views positively given the current environment, which
is characterized by elevated used vehicle pricing and intense competition.
Ratings assigned to Ally and GM Financial are unaffected by the development at this time, as Fitch had anticipated this possibility for some time, given GM’s stated objective to grow GM Finanicla.
That said, longer-term rat-
ing implications will be influenced by Ally’s response to the forgone business.
Ally confirmed that GM would ofer subvented leases on several of its popular brands exclusively through GM Financial.
Ally’s total lease origination volume for the three brands afected, GMC, Buick Continued on page 12
NEWS BRIEFS
Salvage Chain Expands
Insurance Auto Auctions Inc. announced the reopening of its facilities in Providence, R.I., and Altoona, Pa., as well as expansions of its Columbus and Cleveland branches in Ohio.
The Cleveland branch, located in Lorain, Ohio, has added 9.5 acres as an overflow site.
IAA has also increased its capacity to service the Columbus area, with an expansion of the existing branch.
DealerRate Names Top Store
DealerRater announced the winners of its 2015 Dealer of the Year Award program. Award recipients are recognized for distinction in outstanding customer service based upon consumers’ reviews of their dealership experiences shared on DealerRater.com.
Express Auto Spot of Phoenix was named the top used-car dealer.
The highest scoring dealership in the United States overall is Klaben Ford Lincoln in Kent, Ohio. The store earned a 4.875 out of 5.0 PowerScore in 2014 with 723 reviews.
SiriusXM Surpasses 15,000 Dealers
SiriusXM has surpassed 15,000 auto dealers enrolled in the SiriusXM Pre-Owned Program.
Customers purchasing any preowned vehicle with a factory-installed satellite radio from a dealer
enrolled in the SiriusXM Pre-Owned Program will receive a three-month subscription to SiriusXM’s “All Access” package. The SiriusXM “All Access” package includes Howard Stern, every NFL, MLB, and NBA game, every NASCAR race, plus NHL games and PGA tour coverage, as well as access outside the vehicle to SiriusXM Internet Radio on smartphones and other connected devices and online at siriusxm.com.
In addition, the SiriusXM Service Lane program has surpassed 6,000 dealers enrolled since the program launched in 2013.
Dealers enrolled in Service Lane can provide a 2-month subscription to SiriusXM’s Select package to qualifying customers who have their satellite radio-equipped vehicles serviced.
SiriusXM also has arrangements with every major automaker to provide a 3-month SiriusXM subscription to customers buying certified pre-owned vehicles from dealerships participating in those programs.
IMS Adds Subprime Tool
Inventory management system vAuto is introducing a subprime booking module as part of its Provision system to help dealers address the challenges of properly acquiring subprime inventory and matching credit-challenged customers to those vehicles.
Wholesale Prices Rise
Wholesale used vehicle prices increased in January for the fourth consecutive month.
This pushed the January Manheim Used Vehicle Value Index to a reading of 125.3. The Index adjusts wholesale prices for mix-, mileage,
and seasonality.
January’s price rise pushed used vehicle values to their highest level since April 2012.
Auction prices for rental risk units sold in January rose relative to December after adjusting for mix and mileage, but were down absent the adjustment. Adjusted prices were basically level with a year ago.
Average mileage on units sold in January remained at the record high level posted in December.
Wholesale pricing for compact cars was weak in January.
Auction prices for dealer-consigned units sold in January were noticeably higher than a year ago.
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Ford Drivers Stick with Brand More Than Others
Ford owners are the most loyal of any.
That’s the finding of a pair of new studies.
Experian Automotive looked at loyalty by highlighting the behavior of consumers who got rid of their previous vehicle to purchase a new one.
The analysis showed that, overall, Ford owners had the highest percentage of loyalty when returning to market, with 60.8 percent purchasing another Ford vehicle. Rounding out the top five makes with the highest percentages of loyal consumers were Toyota, Subaru, Kia and Lexus, with 59.1 percent, 57.7 percent, 57.2 percent and 55.9 percent returning to buy another vehicle of the same make.
The models with the most loyal consumers in each category include the Honda CR-V, the Ford F-150 and the Toyota Corolla, with 41.6 percent, 45 percent and 30.4 percent of their drivers returning to buy another vehicle of the same make and model.
IHS Automotive recent-
IHS Automotive analysis of new vehicle registrations during the 2014 model year. Ford Motor Co. took top honors for Overall Loyalty to Manufacturer, and the Ford nic loyalty to make among various audiences; most improved loyalty; and two awards recognizing conquest in the auto industry – the highest percentage of
announced, many of which were repeat winners from previous years. Loyalty is determined when a household that owns a new vehicle returns to market and purchases or leases another new vehicle of the same make, model oralty Awards are presented annually to OEMs and brands that demonstrate a manufacturer’s ability to retain owners over repeat buying cycles.
FTC Cracks Down on Title Loans
The Federal Trade Commission has taken action for the first time against two car title lenders, reaching settlements that will require them to stop their use of deceptive advertising to market title loans.
In administrative complaints issued against two title lenders, First American Title Lending of Georgia, LLC, and Finance Select, Inc., the FTC charged that the companies advertised, both online and in print, zero percent interest rates for a 30day car title loan without disclosing important loan conditions or the increased finance charge imposed after the introductory period ended.
The FTC charged that First American Title Lending, which operates over 30 locations in Georgia, advertised a zero percent ofer (in English and Spanish) and failed to disclose that the borrower had to meet specific conditions to receive that rate. The borrower had to be a new customer, repay the loan within 30 days, and pay with a money order or certified funds, not cash or a personal check. If a borrower failed to meet those conditions, the ofer did not apply, and he or she would be required to pay a finance charge from the start of the loan. The company’s advertisements also failed to disclose the amount of the finance charge after the introductory period ended.
The FTC alleged Finance Select, doing business as Fast Cash Title Pawn, failed to disclose that unless a loan was paid in full in 30 days, the zero percent ofer did not apply, and that a borrower would have to pay a finance charge for the initial 30 days of the loan in addition to any finance charges incurred going forward. Fast Cash, which has five
locations across Georgia and two in Alabama, also failed to disclose how much the finance charge would cost a borrower after the 30-day introductory period was over.
As part of the proposed settlements with First American Title Lending and Fast Cash Title Pawn, the respondents are prohibited from:
failing to disclose all the qualifying terms associated with obtaining a loan at its advertised rate; failing to disclose what the finance charge would be after an introductory period ends; and misrepresenting any material terms of any loan agreements.
In addition, First American Title Lending is also prohibited from stating the amount of any down payment, number of payments or periods of repayment, or the amount of any payment or finance charge without clearly and conspicuously stating all the terms required by the Truth in Lending Act and Regulation Z.
These cases are part of the FTC’s ongoing efort to protect consumers in the short-term lending and auto marketplaces. The agency’s guidance, Caution: Car Title Loans Can Leave You Stranded, encourages consumers to shop around for their loan, and to look to their bank or other lenders for options that may be more afordable than a car title loan.
The commission vote to issue the administrative complaints and accept the proposed consent orders for public comment was 5-0. The agreements will be subject to public comment for 30 days, through March 3.
Jury Blames Toyota Defect for Crash
MINNEAPOLIS (AP) – A U.S. jury ordered Toyota Motor Corp. to pay nearly $11 million to victims of a fatal Minnesota crash after ruling that a design flaw in the 1996 Camry was partially to blame for the 2006 wreck.
The jury said the company was 60 percent to blame for the accident, which left three people dead and two seriously injured. But jurors also decided that Koua Fong Lee, who has long insisted he tried to slow his car before it slammed into another vehicle, was 40 percent to blame.
Lee was driving when his car crashed into another vehicle at a high speed after he exited Interstate 94 in St. Paul. His attorneys insisted the crash was caused by an acceleration defect in his vehicle, but Toyota argued there was no design defect and that Lee was negligent.
After the 2006 wreck, Lee was charged and convicted of vehicular
homicide, and sentenced to prison. But he won a new trial after reports surfaced about sudden acceleration in some Toyotas, and questions were raised about the adequacy of his defense. Prosecutors opted against a retrial and he went free after spending 2 1/2 years behind bars.
Lee and his relatives, along with other people who were injured or lost loved ones in the crash, later sued Toyota in U.S. District Court in Minneapolis.
During the trial, Lee’s attorney, Robert Hilliard, told jurors that there was a defect in the car’s design. He said the Camry’s auto-drive assembly could stick, and when tapped or pushed while stuck, it could stick again at a higher speed.
Hilliard also accused Toyota of never conducting reliability tests on nylon resin pulleys that could be damaged under heat and cause the throttle to stick.
Toyota said there was no defect.
Kevin Leitterman Pre-owned Manager, Jim Butler Chevrolet
GEORGIA DEALER WINS
POWERLIFTING AWARDS, STRONG-ARMS CANCER
By Jeffrey Bellant
Dealers often talk above pushing iron. But that has a whole different meaning for one Georgia operator.
Bill Graham, a secondgeneration dealer, started selling cars in high school.
He lifted weights some then, too.
But he only became serious about the hobby after he turned 50.
Graham, 58, moved from training to competing in the Southern Powerlifting Federation about five years ago.
“The great thing about powerlifting is you can compete at any age,” he said.
“When I started, I competed in the 50- to 54-yearold (class), now I’m in the 55- to 59-year-old (bracket).”
Competitors are also sep-
times a week, which is different than the average person’s workout routine.
“You’re doing more for a single lift, so you do heavier weights with a lower number of reps than you would for regular exercising, because you’re training for power.”
He trains with a worldclass lifter.
Graham said although the event requires you to do one press, it’s more than just pushing the bar once off his chest.
“You unrack the weight, hold it until they tell you to start,” he said. “Then you lower it to your chest, hold until they tell you to press.
“Then you have to hold it at the top of the lift until they tell you to rack it.”
In 2010, he qualified to compete at an event in Trnava, Slovakia.
“I went with two other
arated by weight class.
Graham has competed in the 220-pound weight class and the 242-pound weight class. He weighed 232 pounds when he competed at the 242-pound weight class.
When he started out, Graham said he could only lift in the low- to mid-300s.
Not anymore.
“I bench 500 pounds,” he said.
Graham usually trains 60 to 90 minutes two to three
“It was a once in a lifetime experience.”
Graham walked away with an award, too.
“I ended up getting a bronze medal in the open class, which is against all ages. The guy that won the event was in his 20s.
“It was a nice.”
guys and we represented the United States of America in the event,” Graham said. “We flew in to Vienna, Austria, and took the train over to Slovakia.
“It was so interesting. We went to a supermarket and there were some younger girls there. We found out they had never seen Americans before,” Graham said.
“We also met the mayor who visited us to see if we were being taken care of and being treated fairly.
Graham’s achievements in powerlifting are even more impressive since he has battled cancer over the years.
Graham was diagnosed with transitional cell carcinoma, beginning years back when it was found in his tear duct sac.
“They did radiation, but it came back,” Graham, said. “They did another surgery and it came back again.”
He found out shortly after the Slovakia event that doctors had to take a more drastic approach.
“So they had to get radical to (fight it) and they removed my eye.”
Doctors ended up taking a skin graft from his thigh to put it where his eye was removed.
The 2011 surgery was done at Thomas Jefferson University Scott Memorial Hospital in Philadelphia.
“The toughest part for me was the mental part, not the physical part,” Graham said.
But the health professionals said Graham’s fitness was a big help to his recovery.
“They told me when I was in the ICU that they were not accustomed to having somebody in there who’s so physically fit,” Graham said.
His health has since rebounded.
“I’m doing great,” he said. “I got remarried last April to the love of my life and everything’s awesome.”
Graham started out at a Lexus dealership, but eventually saw more advantages to being an independent.
“Being a second-generation dealer,” he said, “I saw my dad spend all his time at the dealership and he didn’t really see his kids grow up.
“I didn’t want to make the same mistake. I wanted
to see my kids grow up.”
So in 1993, Graham opened up Graham Auto Sales in Loganville, Ga., just outside Atlanta. He built and ran a large wholesale operation, but
has since changed his focus to the retail side.
Graham won the Georgia Independent Automobile Dealers Association’s Quality Dealer of the Year last year.
He was recognized for his award during the National Independent Automobile Dealers Association conference in Las Vegas last June.
Graham also served as president of the Georgia IADA in 2013 and is currently president-elect of the group. Like a lot of independents, he participates in many charities and charitable events, including St. Jude’s Children’s Hospital.
Graham carries about 50 cars on his lot where he does straight retail and a lot of subprime deals.
Paul John, Executive Director of the Georgia IADA, praised Graham.
“I’ve known Billy Graham now for 22 years and I consider him to be one of my best friends,” John said.
“Billy has served on countless committees with the Georgia IADA and Billy continues to give his time to serve Georgia IADA because he really believes that he can help make Georgia a better place to be a licensed car dealer.
“Billy is a man of integrity, and conducts his retail car business in his special way, so his customers come back and buy over and over
Billy Graham was the Georgia Independent Automobile Dealers Association state quality dealer and compewted in the Nationl Quality Dealer competition last June during the National Independent Automobile Dealers Association’s annual convention last June.
Sports Cars, SUVs Top ‘Crisis’ List
Inc. published a survey on midlife crisis car trends, and the results may be surprising: sedans and SUVs are gaining in popularity.
While one in five potential buyers (20 percent) would still go for a sports car first, 17 percent would purchase an SUV and 15 percent would pick a sedan. When asked about a specific make and model, the Ford Mustang and Chevrolet Corvette were the favorites.
This survey comes at a time when the concept of “midlife” and middle age are evolving in America. Increasingly, this life stage represents an exciting new chapter of possibility and freedom. According to the recent CarMax survey, one in four American adults consider it likely they would buy a car associated with a midlife crisis.
Today’s midlife crisis car doesn’t have to be red. The most popular color for respondents’ hypothetical midlife crisis car was black (20 percent), with silver/gray (19 percent), blue (17 percent) and, yes, red (17 percent) close behind. Yellow came in at the very bottom of the list with just 2 percent.
Thirty percent of men said that they would be very or somewhat likely to buy a car associated with a midlife crisis, while 21 percent of women said the same. But the type of car each gender would buy could not be more diferent.
For men, sports cars still reign supreme, and black is the color of choice, both coming in at 24 percent. Women went with SUVs (19 percent), and red won out as the preferred color (21 percent).
According to the survey, residents of the South are most likely to purchase a midlife crisis car, with more than 30 percent of respondents indicating that they were very or somewhat likely to buy one. Midwesterners were the least likely to spring for a midlife crisis car overall, with almost 80 percent of respondents saying that they were not very likely or not at all likely to buy one.
Of the 18 percent of Midwesterners who would purchase a midlife crisis car, the most popular make was an SUV - the only region where the sports car did not come out on top.
Hundreds File Claims Against GM
DETROIT (AP) _ More than 1,100 claims were filed in the week before the Jan. 31 deadline to seek payments from the General Motors ignition switch compensation fund. So far, 51 death and 77 injury claims have been granted.
But the fund’s deputy administrator says the grants are very likely to rise as she and her boss, compensation expert Kenneth Feinberg, sort through at least 4,180 claims that came before the deadline passed.
The last-minute flurry of activity is common in compensation cases, said Deputy Administrator Camille
Biros, who has worked with Feinberg on funds for the 9/11 terrorist attacks and the BP oil spill. Although most of the claims were filed electronically, some will ``trickle in’’ in the coming days because they were postmarked by the Jan. 31 deadline, she said.
GM was aware of faulty ignition switches on Chevrolet Cobalts and other small cars for more than a decade, but it didn’t recall them until 2014.
On 2.6 million of them worldwide, the switches can slip out of the ``on’’ position.
CarMax
Auto Finance - Continued from page 3
and Cadillac, accounted for 12.7 percent of Ally’s $41 billion in total originations in 2014. Fitch believes Ally’s remaining GM subvented products, which include leasing for Chevy vehicles and loans on GM vehicles, remain at risk.
Combined, these remaining products accounted for $8.1 billion or 20 percent of Ally’s total 2014 originations.
Despite the loss of GM subvented lease volume, Ally executives remain confident that the company will achieve origination volume in the high $30 billion range in 2015. Fitch believes the target is potentially achievable, but reaching it will pose challenges and may lead to growth in potentially higher risk areas to meet shareholder expectations.
GM Financial recently reported flat growth in its latest quarter.
The firm reported that consumer loan originations were $4 billion for the quarter ended Dec. 31, 2014, compared to $4.1 billion for the quarter ended Sept. 30, 2014, and $3.3 billion for the quarter ended Dec. 31, 2013.
Consumer loan originations for the year ended Dec. 31, 2014 were $15.1 billion, compared to $9.6 billion for the year ended December 31, 2013. The outstanding balance of consumer finance receivables totaled $25.7 billion at Dec. 31, 2014.
Santander Consumer USA Holdings Inc., another major subprime player, announced net income for fourth quarter 2014 of $247 million, up from the third quarter net income of $191.4 million and up from fourth quarter 2013 net.
Total originations were $6.1 billion, down from $7.4 billion in prior quarter and up from $5.8 billion in prior year fourth quarter.
Managed assets were $41.2 billion, up from $40.4 billion as of prior quarter-end and $30 billion as of prior year-end.
Net charge-of ratio of 8.6 percent, was seasonally up from 8.4 percent in prior quarter and up from 8.1 percent in prior year fourth quarter.
Provision for credit losses was $560 million, down from $770 million in the prior quarter and $629 million in prior year fourth quarter.
These results follow the overall trend of auto finance in the fourth quarter.
The total balance of auto loans in December was $975 billion, representing 33 percent of total outstanding non-mortgage consumer debt, according to Equifax. The total is an all-time high. In addition, the total number of auto loans outstanding is nearly 71 million.
Serious delinquencies on auto loans represent 1.10 percent of total outstanding balances in December, a slight increase over the previous month, but a decrease of 6 percent from December 2013.
However, annualized write-ofs represent 2.64 percent of total outstanding balances, a 5.3 percent increase over December 2013.
All this news again raises the question of whether auto finance is another bubble like the mortgage market a decade ago.
Some even worry about another financial crisis when the bubble bursts.
A panel of executives at the American Financial Services Association’s vehicle conference said the market is robust, but not overheated.
“Competition seems very rational,” said Jason Kulas, president of Santander Consumer USA Inc.
This wasn’t the case just before the recession, said Dan Chait, president of World Omni Financial Corp.
“Before the economic downturn, it was a race to the bottom with everybody fighting for share,” Chait said.
Still, there are negative outcomes short of a full-scale financial meltdown.
Attorney Mark Kenney told AFSA attendees this isn’t a bubble like 2007. But there are a lot of similarities with 1995.
At that time, low interest rates, new computer models and a flood of cash drove the sector to new highs. A few years later it crashed and numerous finance companies went out of business.
“Are we that much more sophisticated today?” Kenney said.
The diference now is when auto finance crashes, regulators and lawyers will look through the wreckage for somebody to hold accountable.
AAA - Continued from page 1
cars come from members who are looking to trade in a car or sell one outright, McIntyre said.
Even if the member isn’t interested in buying a car, “they can come to us and check to see just what the value of their car is,” McIntyre said.
In setting up its sales lot, the MidAtlantic club got some advice from AAA Carolinas and AAA Arizona, two regional clubs that had previ-
ously opened used-car sales lots and had success with them.
Because of the way the AAA organization is structured, the regional clubs are all separate entities, so McIntyre said he can’t predict whether more AAA clubs around the United States will get into used auto sales.
“They have the autonomy to do what their members are looking for,” McIntyre said.
RETAIL MARKETS
OREGON
Siamak Lotfi, owner, Siamak’s Car Co., Salem, Ore.:
“We’ve been at this location since May 2014. We’ve moved three times during the last fives years. We’ve gotten bigger and bigger, so we had run out of room.
“I’ve been in business by myself since 1999, when I did wholesale. I’ve been in the retail business since 2008.
“On average, we keep a little more than 150 on the lot.
“Last year, we averaged out 82 cars a month.
“Most of our inventory is five years and newer, though we will go up to 10 years old. We’re mostly newer cars.
“Mileage on the cars is in the 60,000s.
“We’re like a new-car store without a new-car store badge.
“So we sell to new-car type customers who have (financing) from credit unions, Wells Fargo and good banks.
“We do some subprime, but no buy-here, pay-here.
“We get cars from local
auctions and local new-car store trades. I don’t go outside of (the area).
While it’s gotten a little more difcult to get cars, I’m able to do it because of the relationships I’ve built (with new-car stores) over the years.
“In the winter time we’ll carry more trucks and SUVs, during the spring and summer we’ll shift more to cars.
“We are more of a domestic store than import.
Domestics have just been a better value for the money.
“We have our reconditioning center and service center. Last year, our average recon costs were $940 a car. We make the cars look good.
“We also do outside work – service and parts. We have 14 bays. It helps with the cash flow.
“We have our website to advertise. We do the third parties, like AutoTrader. com, Cars.com, Cargurus. com, etc. We also market in the schools, the local papers and we do mailers.
“We recently had a 30-car weekend. We sold a 2011 Dodge Charger with around
60,000 miles. It sold for $13,000.
“Last year, we were 50 percent better than the year before and we’re expecting a 50 percent increase this year.”
TEXAS
Jerry Smith, co-owner, H. J. Smith Automobiles, Hurst, Texas:
“My dad and I own this together. He’s the ‘H J.’ He’s had a dealer’s license since 1959. We’ve been at this location since 1971.
“I keep a little over 100 vehicles on the lot. That’s typical. We probably sell 300 cars a year.
“We sell buy-here, pay-here.
“The income tax money is spotty at this point (Feb. 9). We mostly have lookers at this point. There are some who have spent big money to get a refund anticipation loan.
“I buy my inventory from the new-car stores.
“The average retail price is $7,000. Last year it was probably $6,000. The prices continue to go up, but I’m also trying to buy a little newer inventory.
“I structure my deals based on a formula I came up with a long time ago. Our formula is 18 months and no interest.
“I have structured down payments based on the cost of the car. So a $5,000 car is $910 down, a $6,000 car is $1,075 (and so on). But they are all structured to pay of in 18 months.
“The payments start of at $65 a week on the cheaper stuf and we top out at about $110 a week.
“All car businesses have a diferent model. Some go for a (low) down payment, get as many cars out as possible and work on volume. They have a (lower) success rate.
“I go for a bigger down payment so I have someone who is at least invested in the car. That’s a reason for them to continue to make the payments. Plus it’s short term and no interest payments.
“I want to sell that family more than one car and 70 percent of my business is repeat. With our customers, we’re working on second-
and third-generation customers.
“What I’m looking for is a local (buyer), who has a family and is established.
“The average model year is 2004. The average mileage is probably around 140,000 to 160,000.
“I used to carry a lot more trucks and SUVs, but right now it’s probably about 60 percent trucks/ SUVs. When gas prices went up, they decided they had to buy something more economical. Then as gas prices went back down, they were hopping for trucks again.
“Average reconditioning is $500. I’m probably spending more this year than last. We do our own work.
“We don’t do any advertising. I have a web page just because everyone else has one. But as far as the applications I get of the web site, I haven’t had a good one yet. Most of the time it’s outof-town people who have burned all their bridges.
“I recently sold a 1999 Volkswagen Jetta with 142,000 miles. I got $4,995.”
ADESA Boston March 13, 20, 27
508-626-7000
ADESA Charlotte March 5, 19
704-587-7653
ADESA Cincinnati/Dayton March 17
937-746-4000
ADESA Golden Gate March 3, 17, 31 209-839-8000
ADESA Houston March 4, 18 281-580-1800
ADESA Indianapolis March 3, 17, 31 800-925-1210
ADESA Kansas City March 3, 17, 31 816-525-1100
ADESA Lexington March 5 859-263-5163
ADESA Tulsa March 13 918-437-9044
America’s AA-Chicago March 18
708-389-4488
Brasher’s Salt Lake AA March 24
801-322-1234
Columbus Fair AA March 18, 25 614-497-2000
Manheim Atlanta March 4, 5, 19
404-762-9211
Manheim BaltimoreWashington March 10 410-796-8899
Manheim Dallas March 11, 25 877-860-1651
Manheim Denver March 11 800-822-1177
Manheim Detroit March 5, 12, 19 734-654-7100
Manheim Fredericksburg March 12, 26 540-368-3400
Manheim Milwaukee March 11, 25 262-835-4436
Manheim Minneapolis March 4 763-425-7653
Manheim Nashville March 18, 24, 25 877-386-5004
Manheim Nevada March 20 702-361-1000
Manheim New Jersey March 4, 11, 25 609-298-3400
Manheim New Orleans March 25 985-643-2061
Manheim Ohio March 24
800-477-6446
Manheim Orlando March 3, 10, 17, 24, 31 800-337-8491
Manheim Pennsylvania March 5, 6, 19, 20 800-777-2053
Manheim Phoenix March 5, 12, 19, 26 623-907-7000
Manheim Pittsburgh March 11
724-452-5555
Manheim Riverside March 10, 12
909-689-6000
Manheim Seattle March 4 206-762-1600
Manheim Southern California March 19 909-822-2261
Southern AA March 11
860-292-7500
ADESA Boston March 20
508-626-7000
ADESA Golden Gate March 3, 31 209-839-8000
Manheim Atlanta March 4 404-762-9211
Manheim Dallas March 11 877-860-1651
Manheim Milwaukee March 11 262-835-4436
Manheim Nashville March 18 877-386-5004
Manheim Ohio March 24 800-477-6446
Manheim Orlando March 10 800-337-8491
Mazda Capital Services
ADESA Boston March 13, 27
508-626-7000
ADESA Golden Gate March 17 209-839-8000
ADESA Kansas City March 3, 31 816-525-1100
Columbus Fair AA March 25 614-497-2000
Manheim Atlanta March 5 404-762-9211
Manheim Detroit March 5, 19 734-654-7100
Manheim Fredericksburg March 26 540-368-3400
Manheim Milwaukee March 25 262-835-4436
Manheim Nashville March 25 877-386-5004
Manheim New Jersey March 11, 25 609-298-3400
Manheim Pennsylvania *March 5, 19 800-777-2053
Manheim Riverside March 12 909-689-6000
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
ADESA Boston March 27
508-626-7000
Brasher’s Salt Lake March 24 801-322-1234
Columbus Fair AA March 18 614-497-2000
Manheim Dallas March 25 877-860-1651
Manheim Denver March 11 800-822-1177
Manheim Detroit March 5, 19 734-654-7100
Manheim Fredericksburg March 12 540-368-3400
Manheim Milwaukee March 11 262-835-4436
Manheim New Jersey March 25 609-298-3400
Manheim Orlando March 10 800-337-8491
Manheim Orlando March 3, 17, 31 800-337-8491
Manheim Pennsylvania March 6, 20 800-777-2053
Manheim Pittsburgh March 11 724-452-5555
Manheim Riverside March 10 909-689-6000
Manheim Seattle March 4 206-762-1600
Manheim Pennsylvania March 20 800-777-2053
Manheim Pittsburgh March 11 724-452-5555
Manheim Seattle March 4 206-762-1600
Manheim Southern CA March 19 909-822-2261
Southern AA March 11 860-292-7500
WHOLESALE MARKETS
COLORADO
Matt Read, general manager, Loveland Auto Auction Inc., Johnstown, Colo.:
“We’ve been in business 28 years. The auction has four lanes and we’re running four.
“Recently, volumes have been really good. I think we average 460 cars a week.
“Last year was our best year and volumes have been very consistent with this time last year.
“Sales percentages are about 65 to 68 percent.
“We get a boost in sales during tax times. I think (as of Feb. 6) it’s started. It’s just the beginning of it, but it’s tough to say.
“Last year, it seemed tax season started later than normal.
“I would say we’re drawing 300 to 350 dealers into the lanes (on sale day).
“How they are doing depends on who you talk to. It seems like some of their tax money is starting to flow in recently. I think they are optimistic.
“The majority of our buy-
ers are coming from Colorado. But we also get some from Wyoming, Nebraska and some really good buyers out of New Mexico. So those are where the majority of our dealers come from.
“The prices in the lanes are pretty high right now, but you expect that this time of the year.
“I would say 90 percent of our volumes are dealer consignment.
“The rest is just a few bank repossessions. Those are local bank repos. It’s about the same as this time last year because we don’t have a lot of those.
“We don’t have any salvage sales or other special sales. We do not have online sales.
“I haven’t looked recently at our average price coming through the lanes, but I think it’s around $6,000.
“We have a detail shop, but do very little recon. It’s about the same amount as last year.
“(In terms of what’s selling) everything is doing pretty well.
“Trucks and SUVs are always hot in Colorado.
“I’m positive about this year. But it’s going to be tough to follow last year. In the front range of Colorado we’ve had a big oil boom, so that’s helped contribute to the market.”
NORTH CAROLINA
Jerry Barker, general manager, Greensboro Auto Auction, Greensboro, N.C.:
“Volumes are up. We’re running about 3,000 cars a week. We have 16 lanes.
“I would say volumes are probably up 15 percent from last year. There are a lot of lease cars coming back. There are also a lot of program cars out there and we’re running a lot of those in our open sales.
“Sales percentages are about the same as this time last year, about 64 to 65 percent.
“About 40 percent of what we have is program cars, another 25 percent is of-lease, 20 percent is repos and the rest is general cars.
“Volumes of of-lease cars and a lot of the guaranteed buyback cars from manu-
facturers are up.
“We’re also probably running about 90 cars a day through our paint-and-body shop and about 30 through our reconditioning shop. It’s a big increase in our paint-and-body shop over the last two or three years. A lot of the consignors for the of-lease cars like to (recondition) them up to a highergrade car. All of the vehicles going into the closed sale have to meet certain criteria, so we do a lot more repairs on them.
“We have simulcast available on every car we run.
This past week (Feb. 7) we had a record number sold online
“We have closed sales for GM, Ford, Chrysler and Subaru. The numbers are up for those, too.
“Our average price through the lanes is above $15,000 this year. That’s probably up $2,000. I think a lot of that (increase) has to do with the of-lease vehicles coming back and we’re running more of the program cars through the open sale.
“This time of the year it’s
tax-time cars that do well – the $10,000- and-under cars. They’ve probably made the biggest movement in price. The four-wheeldrive vehicles have also seen a little rise.
“The number of online and in-lane bidders is around 800 to 1,000.
“We’re doing a special sale in March, a sports car/ convertible-type sale for the spring. We’re going to try and get a couple of hundred cars to dedicate to that. That’s March 25.
“We also do three classic car sales per year. That’s coming up March 5 through March 7.
“Mid-sized, four-door cars are weak, compared to previous years. I think it’s because there are so many of them coming back through the rental companies. I think the market is just oversaturated. There are also some good incentives for those models.
“I think the auction houses are positioned to have one of our betters years of the past four or five years because the volumes are back up.”
We can ease your pain.
• 23 year of collection experience
• FDCPA compliant / Quality assurance department
• Less overhead and time spent chasing customers
• More time dedicated to selling cars
• 9 convenient payment options for customers
Certified Pre-Owned Retail Sales
TRUE COST OF INCENTIVES (TCI)
8.23%
$12,951 2.44%
-1.23%
$10,623 $10,359 -2.49%
$8,262 $8,647 4.66% 5 $7,000 $7,143 2.04% Subcompact Car
Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES
FEBRUARY 2015 SOURCE: BLACK BOOK
2013 MODELS
Acura
Lexus ES 350 4D Luxury Sedan $31700 $31800 $28400 $23050 $19775
Mercedes-Benz E Class E350 4D Luxury Sedan $37800 $34600 $31200 $25250 $21425
Mitsubishi Lancer ES 4D Sedan
Nissan Altima base 4D Sedan
Nissan Altima S 4D Sedan 3.5 $17250 $16300 $15050
2012 MODELS
Ford Mustang base 2D Coupe
Ford Taurus SEL 4D Sedan
2011 MODELS
Lincoln Town Car Signature Limited 4D Sedan
Import Cars
Acura TL base 4D Sedan $19600 $18900 $17000 $14000 $11975
BMW 3-Series 328i 4D Sedan $19750 $19100 $16900 $13275 $11175
BMW 7-Series 750Li 4D Sedan $44600 $39300 $34550 $29750 $25100
Honda Accord LX 4D Sedan $12750 $12150 $10700 $9025 $7950
Lexus ES 350 4D Luxury Sedan $23100 $21250 $19000 $16400 $14425
Mercedes-Benz E Class E350 4D Luxury Sedan $28200 $25900 $23200 $17850 $14700
Mitsubishi Lancer ES 4D Sedan $9850 $8750 $7950 $6400 $5350
Nissan Altima base 4D Sedan
Nissan Altima S 4D Sedan $11250 $11200 $9600 $8175 $6975
Nissan Sentra base 4D Sedan $9050 $9750 $7950 $6400
2010 MODELS
Disconnected Jottings From Tony Moorby...
This is a busy year to observe some anniversaries, especially for a Brit. The Magna Carta, essentially an Englishman’s guarantee of freedom, was signed 800 years ago by King John at Runnymede near Windsor
and still, today, forms the basis of English legal statutes.
Six-hundred years ago, Henry V beat the French at the Battle of Agincourt and Napoleon was defeated at Waterloo 200 years since. January 24 marked the 50th anniversary of the death of Sir Winston Churchill. He was buried on the 30th, a bitterly cold Saturday, to unrivalled ceremony for a commoner – a State Funeral – the service was held at St. Paul’s Cathedral after he had been lying in state for three
days at Westminster Hall. Four members of each of the armed services took turns to stand at the corners of his cofn with heads solemnly bowed. Unusually, even the Queen attended along with countless other representa-
regiments played laments. The cofn was then taken by locomotive called The Winston Churchill to the village of Bladon in Oxfordshire where he was finally laid to rest, almost in the shadow of Blenheim Palace, the place of his birth.
A poll was taken in 2002 to vote for who was the greatest Briton – hardly surprisingly, Churchill came out on top. In fact Dwight D. Eisenhower had said, “Churchill is Britain.”
Although he was elected Prime Minister twice and served in a profusion of political ofces, he was not a man for all seasons; in the thirties he was virtually a political outcast – he called them ‘The Wilderness Years’ and devoted his time to writing, painting and gardening.
His mother was American and he always saw the two countries as friends and allies – “We are two great countries, divided only by a common language!”
ing grounds. We shall fight in the fields and in the streets; we shall fight in the hills. We shall never surrender.” He loved to use similar sounding words or phrases; “To jaw-jaw is better than to warwar” or emphatic repetition; “…. never give in, never give in, never, never, never, never”.
tives of foreign nations. The whole event was televised to 350 million viewers worldwide in all its black and white fuzziness.
As his cofn was taken by naval gun carriage to Tower Pier on the Thames, hundreds of thousands of onlookers stood in silence. A naval launch, the Havengore, took the cofn and family mourners to Festival Pier while the RAF flew 16 Lightning fighter jets in box formation in a breath-taking fly-past as pipers from sixteen Scottish
Apart from his leadership skills, he was so accomplished in many other fields. He could build and had an appreciation of architecture and made many alterations to the house he bought at Chartwell in Kent. The views from this house inspired many of his paintings – he was a wonderful watercolorist and oil painter. He wrote – prodigiously and with exacting grammar. He didn’t just write speeches but many, many volumes of history as well as documenting his own experiences in, for instance, the Sudan and Africa. He won the Nobel Prize for Literature.
CR R O O S S W D Sponsored
By Miles Mellor
He loved to play with language and is one of the mostquoted people of all time. He studied rhetoric and used it to stir the very blood of nations. Anaphora is the use of repeated words at the beginning of each sentence – “We shall fight on the beaches. We shall fight on the land-
Then, of course, there was his dexterity with wit and comebacks, stridently wringing out every sense of a word like a shammy leather and withering his verbal opponents in the speaking.
Some of his observations ring as true today as they did then; “Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.”
1. Buick model
4. Luxury sedan (2 words)
8. Companies, for short 10. Porsches
12. Toyota minivan
13. Russia’s internet symbol
14. Yearly interest rate (abbr.)
16. Interior decor of a car
18. GT-R makers
20. Spotted 21. Comment you might make when driving a Rolls (2 words)
22. VW sedan
26. It means nothing
Civics, e.g.
Tons of time
Pro ____, proportionately
British sports car
Its price is determined by oil prices
Chevy economy car
Nissan compact
Popular
Makes better
1. Shaking motion- not good in a car
Acura letters 3. After-tax amount 4. Start of a west coast city 5. Lexus letters
6. Beginning for “lateral”
7. Hyundai coupe 8. FJ or Land 9. Wood used in some luxury car trim
Make a mistake
____beam Talbot
15. Not the frst transaction 16. Mazda CX-5 _____ 17. It’s under the driver’s feet
19. All __ day’s work (2 words)
Regrettable
Braking system
Dodge 4 door
Tie breaker, for short
by
INSURANCE AUTO AUCTION S
A Toyota
Saturn car model
Hybrid bike
Green car from Chevy
Road sign
Honda’s economy class
Gun the engine
Crash into
Decade count Across
27. Licenses, for example
Oil measurement device
Ambassador or Statesman, once
Tony Moorby
March
March
Compiled By Jeffrey Bellant
Sale Spotlights Technology
Dealers Auto Auction of the Southwest recently celebrated its 12th anniversary and used the occasion to spotlight its improved technology for dealers.
The auction staf reviewed many innovations and tools that DAASW has developed over its 12-year history to enhance the buying and selling process. Auction General Manager Stephanie Gingras said one innovation has brought improved mobile technology to the operational side of the industry, with seamless one-person wireless uploads via iPad of all CRs, images, and videos to both DAASW.com and its industry-leading .MX sites. The auction has combined its 360 Customer Service Program with its Mexico-ready and Transparent Transactions programs, all in conjunction with Carfax.
The auction is now uploading CRs on dealer consignment to provide additional information to Internet buyers during the auction’s 100-percent simulcast Wednesday sale.
“We have developed these enhancements to our 360 Service to supply the tools our customers need to make informed and confident purchases both in the lane and online,” Gingras said.
“Add to this DAASW’s APP based bidder badge system, and its lane leader, iPad-driven email system allowing every consignor to get real time updates on their units, and you have the leading mobile technology driven auction in the Southwest with even more to come in 2015.”
Manheim Sells $100,000 Cars
Manheim Riverside sold more than 50 cars during its One Hundred Grander Sale on Jan. 28.
The sales event began with a reception for customers featuring appetizers, sushi and beverages.
The sale feature more than 100 vehicles listing for $100,000 or more. The list of vehicles included many luxury brands including: Aston Martin, Bentley, Ferrari, Jaguar, Lamborghini, Maybach, Porsche and Rolls Royce.
Following the sale, Manheim Riverside hosted a dinner for customers at the historic Mission Inn’s Music Room in downtown Riverside.
SUPER STAFF: The staff of Dealers Auto Auction of the Southwest celebrated its 12th anniversary by spotlighting the auction’s technological innovations.
Grow Your Business Through Additional Sales and Profits
TECHNOLOGY Spotlight
Dealers succeed in this business by selling more cars and making more money, yet many consistently lose profitable business.
integrates with CarsforSale.com®, AutoClick®, ProMax® and many other dealer and inventory management systems.
Credit Acceptance, a publicly traded finance company founded in 1972, gives independent and franchise dealers the ability to provide an approval to every customer on nearly any vehicle.
With their Portfolio and Purchase programs, dealers can maximize every deal and choose which to use on a deal-by-deal basis.
Designed to capture lost customer opportunities, the Portfolio program enables dealers to make money now, and with residuals on the Portfolio contracts, well into the future.
The Purchase program gives dealers all of their money up-front, similar to traditional financing. These programs can work in any market and align with existing staf, sales management and F&I protocol in a manner that complies with the policies governing your business.
Recently, Credit Acceptance has made enhancements that make it even easier, faster and more profitable to do business. Their patented Credit Approval Processing System (CAPS®) makes it easy to receive approvals (in 30 seconds or less) and structure compliant deals. CAPS
The easy, 5-step process guides dealers through submitting an optimally structured approval, prints contracts, and keeps track of inventory, approvals and funding – allowing dealers to control the sale from start to finish. Reporting capabilities help dealers monitor their business, portfolios and customers.
The Credit Acceptance Dealer Service Center provides the tools and guidance needed to achieve fast funding and long-term profitability. Currently, 62% of contracts are funded in 1 day or less, with the average deal funded in under four days!
In 2014, Credit Acceptance paid dealers over $1,576,642,550 in Advances, over $41,707,140 in accelerated Portfolio Profit Express (Portfolio Profit money), and over $138,854,420 in Portfolio Profit.
Visit creditacceptance.com to find out how you can sell more cars and make more money.
Improving ROI Through Quality: the Low Price Fallacy
You just negotiated a few dollars of your GPS unit order, but did you make a good business decision?
The answer might be no. As price drops, the quality of your solution may also drop. The ROI on your entire GPS program will be afected. To gain significant improvements in the financial return on your GPS investment, even
each month, saving you time and money. Plus, your monthly recovery savings could easily pay for the high-quality solution.
SkySmart™ technology, part of a valuable solution provided by CalAmp, provides proprietary features including advanced, over-the-air device management, remote trouble shooting and sup -
CalAmp is the only US-based provider of GPS collateral assurance solutions that also makes their own devices.
small diferences in quality matter.
There is a direct relationship between the quality of your GPS solution and your ability to successfully locate and recover assets.
When your GPS fails to locate vehicles, you risk much higher recovery and write-of costs.
These costs include extra efforts of collections staf, the need for skip tracers, more expensive repossessions, and higher damage from delayed recovery or even complete loss of the asset. Those costs could quickly add up.
However, if you purchase a high-quality GPS solution that can deliver better performance, you could locate more assets
port, unique dual-processor design and standard back-up battery on each device.
Widely regarded as the highest quality provider of collateral assurance solutions, CalAmp is the only US-based provider of GPS collateral assurance solutions that also makes their own devices.
As one of the top GPS device manufacturers in the world, CalAmp controls their solution from the device, through the network, to their cloud-based platform and the LenderOutlook™ vehicle finance application.
CalAmp’s unmatched quality means reliably and quickly locating assets and lowering recovery costs. Now that’s a deal.
Look Beyond Cost and Features
GPS units are fabulous tools! With Lease’T’Own® vehicles, we highly recommend that each be equipped with a GPS unit.
GPS units come in all sizes, with many diferent features, at various costs, so be sure you know what your end purpose is for using the GPS unit before choosing a manufacturer.
When it comes to technology, finding the lowest cost item doesn’t always deliver the results you want!
For Lease’T’Own® dealers, the main purpose for using a GPS is to aid in the locating of your property if a customer defaults on payments or drops insurance coverage.
Some dealers also use it as a tool for ensuring on-time payments with the starter disconnect feature. In our experience, we figure it’s about a 50/50 split on dealers that simply want to track where the vehicle is vs. those that enable the starter/ disconnect feature for payment leverage.
You’ll want to check the laws in your state to ensure compliance but in most states if you are using the GPS as a tracking device only, you do not need to tell the customer the GPS unit has been installed.
If you enable the Starter/Disconnect feature however, there is
a Federal Law that requires you to disclose that fact to the customer.
We include the required disclosure statement with each GPS unit we sell. If the manufacturer you’ve chosen does not, you might want to consider that a red flag and choose another brand.
Features are pretty standard with GPS units on the market today – size, internal antennas, starter/interrupt, etc.
We encourage you to look beyond the basic features and investigate these two points through word of mouth recommendations from actual users:
you’ll be receiving if something goes wrong
Northland is not only a distributor of PassTime GPS units, we use the same GPS units on our own fleet of Lease’T’Own® Cars.
We’d love to give you our feedback on the units we’re using today and the ones we’ve used in previous years.
Call us at 800-879-3433 or visit www.NorthlandDealers.com
subprime lending program puts you in control.
an end-to-end solution that provides up-front profit and future cash flow streams.
Missed Payments: When GPS Is Not Enough
While GPS is the newest, sexiest technology, it is not foolproof. Unfortunately, you can still lose cars with it. So what’s a dealer to do?
First, understand that GPS is a “reactive” answer to the problem after things are already out of control. Now you have to say, “We’ve had enough. Go get the car.” Obviously, most dealers would rather get paid than go through a repo.
Second, consider using a twopronged approach that adds a proactive component to the reactive GPS component. Add our PT2000 as a proactive behavior-modification device that encourages your customers to pay
as agreed.
The PT2000 can be used as an “active decoy” (ask us). Mounted right there on the dashboard, it is a visible daily reminder to your customers that they must make their payment by the due date. Having a PT2000 is like having your own proactive collector in each and every car so that you can modify bad behavior before an account becomes delinquent. Contact PayTeck at 1-800-880-3081 or www.payteck.com
Time-saving Technology Helps Dealers Sell More Cars
Today’s modern consumer barely has time to do laundry or grocery shop. Spending an entire Saturday shopping for a car? It simply isn’t an option for anyone.
GWC Warranty, a leading provider of vehicle service contracts and related finance and insurance products for the past 20 years, is committed to helping dealers sell more cars.
One way the company does this is by ofering technology that allows dealers to spend less time rating and writing contracts, getting them back to selling cars faster than ever before.
GWC recently launched a Dealer Portal that features a rating engine built to help dealers quickly and easily rate and write vehicle service contracts with just a few clicks of a mouse.
– all ways the company is working to help dealers save time.
“At GWC, we help dealers sell more cars by giving car shoppers the confidence to become car buyers,” notes CEO and President Rob Glander.
“In today’s technological world, that equates to giving our dealers more tools to conduct business electronically.
“Streamlining processes using technology allows our dealers to spend less time thumbing through paperwork and more time moving inventory.”
The company is planning to add more tools to the portal in the near future and continues to develop others to put technology at work for dealers, their customers and their businesses.
The portal, which is iPad compatible, also allows dealers to remit payment and ofers GWC Elite dealers the ability to initiate claims online
For more information about GWC Warranty and the technology dealers can use to sell more cars, visit GWCWarranty.com or call 1-800-482-7357 x767.
In the GPS device industry there is information – and perhaps misinformation – about 2G, 3G, this carrier and that. Regardless of which carrier or which technology – there are three points to consider: coverage, longevity, and cost.
First, know your device:
1. Which Carrier
2. Which cellular technology.
ASK YOUR PROVIDER and be sure to get a straight answer.
Coverage
Obviously, coverage (the carrier’s footprint) is important because if you cannot communicate with the device, what’s the point of having one? You can typically find detailed maps on the carrier Web site of your area’s coverage and should consider a device provider with coverage where you need it. To ensure constant coverage over time, partner with a provider which has direct carrier agreements.
Longevity
How long will the device work on the carrier’s network?
2G is on its way out. AT&T is actively shutting down its 2G network and it will be gone by the end of 2016. While, T-Mobile hasn’t announced plans to shut down their 2G, roaming coverage will be impacted without AT&T.
3G – Many GPS devices are moving to 3G, available on Verizon, AT&T, T-Mobile, and Sprint. 3G networks should be around for at least another five years, however, 3G footprints are not equal among carriers – so make sure you know which carrier you are on.
LTE – great for your cell phone but too expensive for this market don’t pay the additional cost.
Cost
As with televisions and tablets, newer technology costs more.
Weigh the cost against the other two points: coverage and longevity.
With decent T-Mobile coverage, 2G might still be an option.
If you’re dealing with long-term loans in a rural area you’ll likely need to move to a 3G Verizon device.
PassTime, a leading provider of GPS tracking and Automated Collection Technology has a device to fit all business models.
As a direct Verizon Partner Program-Member, PassTime devices running on Verizon may have the best coverage footprint, 3G longevity, and at an afordable price.
For more information about PassTime’s oferings, visit www. passtimeusa.com or call us at 877727-7846.
GO’s Program Turns More Leads into Sales
GO Financial has a unique subprime lending program that gives dealers the best of both worlds: up-front profit at the point of sale and a share of the finance profits earned over the life of the loan.
Considering that over a third of today’s car buyers have subprime credit; GO’s program enables participating dealers to turn more of their subprime customers from leads to sales each and every month.
GO Financial has developed a proprietary web based portal that is easy to use and speeds up the sales process by providing the dealer with immediate approvals.
GO’s portal also provides additional flexibility versus typical indirect lending programs, helping dealers maximize profits by optimizing their deal structure and providing choices for dealers to best match the right vehicle for each unique customer’s situation. Simply put, the GO Portal allows a dealer to focus on selling more cars while partnering with GO to build a portfolio of loans to provide long term income over time.
GO Financial is owned by two auto industry powerhouses servicing independent and franchise dealers across the country.
This ownership background provides access to products and expertise in all facets of the auto industry including retail sales and finance, wholesale and auction markets, floorplan lines of credit, advertising and everything in between.
These roots with 20+ years of experience allows GO to look at the business from the eyes of a dealer which is diferent than any other finance company in the industry.
GO Financial is licensed in 46 states and actively enrolling franchise and independent dealers.
GO has no sign-up fees, no-recourse, monthly system fees and can also be accessed through DealerTrack.
To learn more about the advantages of GO’s program or for a quick demonstration of the power of the GO Portal, please contact us at 888-GOFinancial (888-463-4626) or visit www.gofinancial.com.
No-brainer.
FEX DMS is the only web-based, integrated and comprehensive dealer management solution your dealership will ever need. You get the idea?
Inventory Management, Internet Marketing, Contract Generation…
Lender Integration including RouteOne, loan servicing with intuitive communication console, including texting…
FEX DMS integrates all aspects of vehicle management and marketing including CRM, mobile solutions and lead management and is priced to accomodate any size dealership FEX DMS does not demand a long term contract and all agreements are month-to-month
Visit fexdms com/imagine to discover all the features that make FEX DMS your solution
E-Credit Express Announces Patented Credit Sale Platform
E-Credit Express (ECE) is pleased to announce final approval from the United States Patent Ofce for their credit sale platform, (No: 8,909,551) which is full-service, compliant and completely automated.
This new credit sale platform takes the deal from application to maturity, thereby eliminating the need for additional and often time-consuming steps for dealers to secure financing for their customers.
E-Credit Express now connects dealers to 1,300 lenders instantly and delivers easy, 24/7 credit decisions in five minutes or less.
This patent establishes ECE as the industry leader in designing and developing a truly innovative credit sale platform.
“When dealers utilize the ECE platform, the industry is aforded the opportunity to protect the dealer’s profits and keep them in compliance,” said Paul Pawlusiak, President. E-Credit Express.
ECE is the only patented credit sale platform in the auto industry. A proprietary pre-screening process analyzes debt-to-income ratios prior to pulling a credit report, thereby eliminating steps and potentially thousands of dollars in unnecessary credit processing costs.
The patented platform filters, scores, and applies all creditdecision rules electronically for all credit applications.
Electronic contracting and electronic signature requires no additional costly equipment to purchase and eliminates the need for overnight mail costs.
Industry compliant safeguards and platform controls assure that all workflow is completed in one platform that maintains the latest compliance and security certifications with auto redundancy.
“E-Credit Express gives your customers a credit decision while simultaneously contracting the deal. By removing timeconsuming steps from the process, dealers will spend less time tracking down the status of their deals and more time selling cars,” Pawlusiak continued.
Headquartered in Detroit, E-Credit Express provides the only patented, full-service, completely automated, turnkey credit sale platform.
For more information contact E-Credit Express at 855-5258555.
National Payment Processor Offers Customized Solutions
Award winning PayMaxx Pro, the leading payment processor dedicated to the auto finance industry, has announced new additions to its full suite of payment processing solutions.
“Today, dealers must offer customers multiple payment channels and, more than anything – convenience.
We have been developing these technology solutions since 2005 and offer the most customized, integrated suite of options available” said Chris Leedom, President of PayMaxx Pro, LLC of Sarasota, Florida.
PayMaxx Pro has a unique approach in that the goal is to give the customer multiple payment options available 24/7 so they are more likely to be able to pay for a auto loan or repair.
The options offered include pay-by-web, text-to-pay and pay by phone in additon to traditional point-of-sale processing.
All options are available
for ACH and credit card based on the consumer’s preferred method of payment.
In a blind study the firm found that dealers offering this suite of payment solutions have a lower delinquency rate by an average of 5.3 percent.
“We understand the business and our products are custom designed for dealers and finance companies.
You will not find this combination of payment solutions anywhere else” added Leedom.
Based on misleading stories in the national media includ-
on loans are now via ACH or card.
This is a dramatic shift from as recent as 10 years ago when most payments were cash or check.
This natural evolution is as a result of technology and innovation brought to market by companies like
simply respond to authorize a payment from a preentered account.
This is significant when you consider the cash flow demands of the business.
“We have observed that providing an array of payment options simply assists the customer in delivering the payment from point A, their account or card to point B, the dealership or finance company” said Leedom.
ing the LA Times as well as the NY Times, there is a misconception that dealers insist on cash, particularly for buy-here, pay-here loan payments.
These claims are patently false and misleading.
In a Leedom and Associates, LLC Study they found that 57 percent of all payments
PayMaxx Pro.
This also helps dealers avoid the accumulation of cash in the dealership during peak payment time.
Many customers are using the PayMaxx Pro proprietary text-to-pay platform to make payments.
The customer receives a text with a code and can
Many consumers love the convenience of being able to pay via text message. The result is improved efficiency in payment processing. Leedom also noted that the PayMaxx Pro payment solutions are now integrated with 14 national software providers to provide seamless integration with the DMS platform used by the dealer. PayMaxx Pro will process over $1 billion in payments this year.
You can learn more about PayMaxx Pro at the 21st Annual Buy-Here, Pay-Here World Convention held in New Orleans April 12-14, 2015.
PayMaxx Pro is a Platinum sponsor of the event and will host a special demo day on Sunday, April 12th.
To schedule your attendance or for more information please contact us at 877.527.5658.
Spireon’s GoldStar CMS Drives Tax Season Sales
The IRS has sent over $100 billion in tax refunds so far this year. And a study by GOBankingRates shows that about 25% of Americans use their refunds to purchase a car.
It’s time to get ready for customers rushing to your dealership –especially those with credit challenges.
Spireon’s GoldStar CMS is here to help you sell more cars while protecting yourself from the risk that comes with subprime and deep subprime financing.
Here are five reasons why you need GoldStar CMS before the tax buying season arrives:
1. The 11th generation Talon is the industry’s best-performing GPS tracking device. Its proven, road-tested hardware takes advantage of CDMA wireless technology, which ofers more expansive nationwide coverage and reliable connections, even in rural areas.
2. To streamline GPS device installation, the GoldStar CMS mobile app includes a VIN scanner that decodes and auto-populates vehicle information directly into your account. It’s the easy way to reduce errors from deciphering handwritten notes and manually entering numbers and details.
3. Save time (and money) verifying all loan STIPs and give customers a friendlier experience where calls won’t be made to an employer or landlord. Reference Genie™ electronically conducts each customer’s background analysis and automatically notifies you of the results.
4. Keep up with demand by relying on a company that ofers same day shipping. Our warehouse is able to ship over 2,500 devices a day, more than enough to meet your tax-season needs.
5. Transfer vehicles with a GoldStar CMS device to a lender with just a few clicks using the Device Transfer feature. With no need for additional phone calls or forms, it’s a hassle-free way to work with your finance partners.
Bottom line? GoldStar CMS goes beyond GPS tracking to help you easily track and manage your vehicle collateral. And by automating a number of time-consuming tasks, our simple solution saves you time, keeps you selling and increases cash flow. If you want to drive tax season sales, get GoldStar CMS.
Learn more at GoldStarGPS.com or call 1-866-655-8825 to schedule a free demo.
Technology Customizable to Your Unique Needs
In today’s dealership environment, solutions need to be compliance-driven. FEX DMS identifies the best technologies to efectively increase a dealership’s control and productivity, ensuring they will accommodate future growth, allowing dealers to concentrate on generating revenue and spend less time managing their software.
FEX DMS is a state-of-the-art, web-based independent dealer software solution used for collections management, inventory control and lender connectivity.
This highly integrated, modular and scalable, stand-alone solution is comprised of feature rich inventory management, sales, customer and lead tracking tools, along with powerful custom reporting and data exporting capabilities.
ules are each priced separately.
This allows the small dealer, wholesaler, or the largest buyhere, pay-here dealer to customize FEX DMS to modules best suited for their dealership. Modules include: DMS, lender portal, Buyhere, Pay-here with accounting, loan servicing and a marketing communications gateway that includes FEX TEXT and automated dialing systems, Shop Management, CRM Solutions, real time website management, and inventory syndication to paid and free listing sites – can be added to the dealer’s account as needed.
FEX DMS can be your standalone solution, or the powerful foundation to which one or more of our additional core products can be added: FEX BHPH, FEX Lenders and/or Accounting Integration.
FEX DMS is the result of over 20 years of research and testing in a wide variety of dealerships. The system is continually evolving to meet the ever-growing demands of industry regulation and dealership efciency requirements.
FEX DMS also ofers a wide array of integration solutions ranging from vehicle valuations to credit card/ACH payment processing – all of which can be added to the dealers account as needed.
FEX DMS users will never have to install any updates and are guaranteed to always be using the latest version. FEX DMS data is continuously archived – eliminating any need for manual backups.
The uniquely integrated and cross-platform compatible mod-
FEX DMS is the perfect solution for buy-here, pay-here or special finance dealerships. Call FEX DMS at (949) 635-5892 or log on to www.FEXDMS.com/imagine to discover all the features that make FEX DMS your preferred solution.
NextGear Capital: Continually Evolving
Technology continues to grow by leaps and bounds, and 2015 should be no different.
As a result, NextGear Capital Chief Technology Officer Bryan Everly asserts it’s more imperative than ever that companies continue identifying ways to remain innovative in their technology offerings.
“The level of technical sophistication in our customer base continues to expand, and mobile technology has played a significant part in that,” said Everly.
“My niece is 25 years old and doesn’t even own a laptop because her phone is her computer.
“Likewise, our customers are continually seeking tools that better arm them in the lanes, specifically when it comes to mobile offerings. If you’re not being innovative, you’re going to be left behind.”
Technology and innovation have been at the forefront of the company since NextGear Capital hit the ground running as Dealer Services Corporation in 2005.
These issues have continued being priority one since becoming a member of the Cox Automotive Group.
Today, NextGear Capital is known as an industry pioneer when it comes to providing technological solutions for its customers.
In 2014, NextGear Capital continued to build off its
“One addition that I’m most proud of is the inclusion of more evaluation tools for our dealers.”
NextGear Capital added Black Book and MMR evaluation tools to its online and mobile solutions in 2014 and plans on adding Kelley Blue Book evaluation capabilities in the first quarter of this year.
applications by making these offerings available in both Spanish and French.
“Providing our mobile and online tools in multiple languages presents us with the opportunity to reach a new targeted set of demographics, specifically in Canada and southern parts of the United States where English might
opposed to one per quarter.
“Before, if there was a bug that needed fixed or a capability we wanted to get in the hands of our customers, we were limited in the time it would take us to do so,” said Everly. “Now, we can take care of that in two weeks as opposed to waiting three months.”
Security will be a key area of national interest in 2015 due to the numerous cyber hacks that occurred last year.
momentum from the previous year, which included a revamping of its mobile app and online account management solution.
According to Everly, the company has more in store for 2015.
“Last year, we added some great capabilities for our customers that we will continue to expand upon in 2015,” said Everly.
With these tools, dealers have the capability of looking up different values of a vehicle they’re interested in purchasing or selling, allowing them to make more informed decisions from either the comfort of their office or from their mobile device while on the go.
Additionally, NextGear Capital plans to further expand its online and mobile
not be their native language,” said Everly.
Another area of focus in 2014 for NextGear Capital included bringing its software engineering team in-house, resulting in 79 software and QA engineers being hired.
With this transition, the company significantly increased its capacity and now has the capability to make 26 mobile updates per year, as
Keeping its customers’ data safe is a top priority for NextGear Capital, and the company has taken steps to ensure data remains protected, including encrypting all customer data when it’s at rest and moving into a secure data center.
“It’s important to remember that great technological power comes with great responsibility,” said Everly.
“While everyone wants to create powerful tools to assist dealers in their day-to-day, those tools need to be incredibly secure so that dealers are protected both financially and personally.”
It’s true. The people at IMETRIK are extra supportive. Great folks all around. Extremely helpful. In the ofce and on-the-road. We only conduct business one way: fairly, honestly and ethically. Well, that’s three ways but it all really comes down to the same thing. Everyone at IMETRIK aims to deliver the most satisfying customer experience with integrity. They’re easy to work with and have a flexible approach.
But those IMETRIK GPS devices? Well, that’s a whole other story. They’re tough! In fact, they are the most robust pieces of fully loaded super high tech 3.5G equipment known in the whole buy-here, pay-here industry. Lenders in the subprime automotive world who partner up with IMETRIK know that the people are really accommodating, but the products are tougher than nails.
Those devices just keep on working. They won’t give out, give up, or give in. Bring on the dust-storms, summer heat, salt-water sea air, sti-
fling humidity, bumpy backroads, freezing snowstorms and wind gusts so strong that they’ll shake a car and rattle its GPS like a rag doll.
The IMETRIK Locate and Recover devices are made so well that it’s all just in a day’s work. So pretty much the only time they have to be uninstalled is to put them on the next car. Those stubbornly robust IMETRIK devices mean great value and superb return on investment.
Why are IMETRIK’s devices the best on the market?
The fact is they’re the only ones that are designed using industrial grade materials; never commercial grade used by others.
The president and owner of IMETRIK was formally trained as an electrical and software engineer, and was responsible for the robotics and automation group in the technology center of a high profile public company. He even worked on an elite robotics space station program.
His passion involves real-time embedded wireless computer systems and mission critical application software.
So when it comes to quality, he does not know what it means to cut corners.
For example, the vast majority of GPS devices use plastic SIM cards. They’ve been known to warp -and even melt- in the summer.
That’s why IMETRIK doesn’t use plastic. It uses silicon SIM chips for ultimate product reliability. It is not an accident that IMETRIK has the reputation for ultimate product durability and the longest length of life in the marketplace.
IMETRIK devices are also tested and retested before they “go out the door.” It’s called rigorous quality control.
What makes IMETRIK’s people so accommodating?
IMETRIK employs the best customer service representatives. No junior staf
members answering the phone and not understanding the business. These are senior, tenured, knowledgeable, friendly and efcient customer service agents who take their jobs seriously. They know you take yours the same way. You want answers fast, resolution to be efcient, and you like a positive and helpful attitude. With IMETRIK, that’s what you get. Every time.
Our sales agents? They know the business because they’re from the business. They understand the products and their features, and they listen to your needs. They’ve been trained on all the product features. They enjoy their jobs, and it shows. Briefly, we did have a few people who, we found out, weren’t doing business the IMETRIK way. So of course, we traded them all in for others who now do represent our way of conducting business; with the highest level of integrity. It feels great when that rust is rubbed of and the chrome finds its shine again.
What about the IMETRIK online application?
IMETRIK ofers superior navigation and ease of use. It facilitates work by ofering dashboard views and drilldown capabilities. By employing top dedicated in-house software development architects and working closely with user requirements, the online application becomes your strategic advantage.
So why select IMETRIK?
IMETRIK is the payment technology assurance partner to the subprime financing lender community that delivers the best value due to: rugged and robust devices for exceptional extended reliability, and;edgeable and accommodating people who provide unbelievably great service so every interaction with them leads to a smooth solution.
That’s why.
21st Century Word of Mouth
By Gary Tucker, CEO, DealerRater
True story: Recently, a used car dealer hit the big time on the internet with a video on his dealership going viral.
Millions learned about his store – but for all the wrong reasons.
His sales staf stifed a pizza delivery guy of his tip and humiliated him. It was captured on video and posted to YouTube.
His used car dealership’s reputation is forever muddied and sales will surely sufer.
Welcome to the 21st century’s version of word of mouth, where online reputation can make or break your business. We all know how important customer service is, but with today’s internet-savvy consumers, a positive or negative online review can either drive them to your store – or steer them away.
In this hyper-connected age, all it takes is one click of a button.
According to a 2014 Dataium study, consumers are 90 percent more likely to visit a dealer’s website and 5.3 times more likely to convert to a lead after reading positive reviews or seeing an above average rating for that dealer online.
Many other sales- and service-
oriented industries – hotel and restaurant immediately come to mind – have adopted “reviewcentric” mentalities.
It’s definitely time for used car dealers to embrace this technology to generate positive reviews to increase sales.
Bottom line: If you’re not paying attention to what is being said about your store online, you’re not doing everything you can to succeed in today’s business environment.
Don’t you owe it to yourself and your employees to stay current, manage your reputation and watch your business grow?
We stress to dealers the need to recognize that consumer buying trends are always evolving and you should have all the tools available to give your business every advantage available to succeed.
Whatever you do, please tip the pizza delivery guy.
Readers can contact Dealer Rater for more information at www.dealerrater.com.
Copart Tops Exceptional 100 List
Copart, Inc. (NASDAQ:CPRT), a leading online vehicle auction company, has topped “The Exceptional 100” list by Deloitte.
Performance and ranking were measured by Deloitte’s new proprietary method that examines a company’s overall economic performance including profitability, growth and shareholder value. A list of 100 U.S.-based, publicly traded companies were identified as top performers.
“Copart is excited and honored to be at the top of The Exceptional 100 list,” said Jay Adair, Copart’s chief executive ofcer. “It was our founder Willis Johnson’s vision that set the framework for the company we have become, as well as our 4,000 employees worldwide who continue to innovate and lead our business each day.”
The Exceptional 100 is based on three features of financial performance that are often overlooked:
Financial performance is multi-dimensional: The approach embraces the idea that profitability, growth and value all matter. It evaluates company performance across all three dimensions.
Deloitte compares any company against the full population of publicly-traded companies, adjusting for industry and size. This is a
more robust approach to performance benchmarking.
from skill: A single year’s results rarely reveals much about a company’s sustained performance.
The Exceptional 100 uses advanced statistical analyses and modeling techniques to determine how well a company needs to perform, and for how long, to be quantifiably “better than lucky.”
Copart topped the list with exceptional performance on all seven measures and an average exceptional streak of 16 years. Its average probability across all measures is over 96 percent.
“When I look back at starting the company more than 30 years ago, failure was never an option,” said Willis Johnson, Copart’s founder and chairman of the board of directors. “What I was doing wasn’t work. It was a labor of love. I surrounded myself with other people that felt the same way. The vision was always to make this company more than what it was when we started out. To see that come to light and be recognized for our performance and growth over the years is truly humbling.”
Copart-UsedCarNews-Ad.pdf 1 1/30/15 3:55 PM
To view the list visit www.exceptional.dupress.com. For more information on Copart, visit www.Copart.com.
Special Order Opportunities
Jonathan Neubauer, President & CEO, Vehicle Acceptance
Corporation
With the internet creating a well-informed consumer base, do you have more special order opportunities? Can you add customer specific units every month for quick turnover?
While this market may result in lower gross margins, it ofers a higher utilization of your buying, delivery and F&I expertise; and can add cash flow and profit.
You need to know your transaction cost independent of the
vehicle cost. VAC ofers a $49 fee on any unit under $15,000 for 15 days. This allows you to ofer a very competitive “buyer fee” service without the risk of unknown floorplan fees.
This special rate is available on every unit purchased through VAC. Combined with the VAC No Curtailment Floorplan Program, you have the ability to purchase what a customer wants and maintain the proper level of inventory to maximize profits.
Visit VACorp.com/SignUp or call 1-888-571-7092 for information.
2G Is Here to Stay
By Garrett Jacoby Partner, SVR Tracking
There are a lot rumors floating around regarding 2G. Verizon, Sprint and T-Mobile have privately and sometimes publicly stated they are committed to ‘21 and ‘23, when they will “assess the situation.”
They are laughing all the way to the bank with the January ‘17 2G exit by AT&T as 2G customers are flocking to them.
2G towers have already been built.
The largest M2M customer in
NY recently dumped AT&T for T-Mobile!
Motivation for this misinformation is simple – get the rumor out there that ALL 2G is going away and charge buy-here, pay-here dealers an extra $20 or $30 to pad the GPS company bottom line. One GPS company is preparing for an IPO – how convenient. If you are considering switching to 3G, remember that in remote rural areas the 3G device will roam on to 2G to continue communication! So, why pay for 3G in the first place? Case closed!
Risk Mitigation Begins Before You Hand Over the Keys
Obviously, it’s important to work with as many verifiable facts as possible to ensure you’re dealing with the person you think you’re dealing with.
Once you’ve asked all the questions you legally can and gone to great lengths to ensure the answers are accurate, you’re still left with a significant data gap.
Until recently, having reams of data was the only way to even partially protect yourself.
Dependency on Pre-Sale Data Is Dangerous
Certain questions are off-limits on loan applications. Red-lining geographic areas can cause trouble, as well. Worse, the people who most need subprime paper are the same people who don’t have access to solid proof of their answers.
Short time on the job, uncooperative landlords who won’t return an address verification call, credit references of questionable character who might even say something negative for personal reasons all cause issues with confirming the information provided.
Certain types of landlords aren’t willing to provide
receipts. You’re left with a pile of information that can’t be verified through any means, and forced to depend on it. That’s not an acceptable situation.
Skypatrol’s DVT
The DVT (Data Verification Tool) developed by Skypatrol, is available to all auto dealers.
Skypatrol wants to make sure this breakthrough technology in advanced database lookup techniques is available to every dealer who needs it, even those dealers that use competitor’s GPS devices. With DVT, dealers can quickly gather and sort critical information about a prospective borrower or an existing customer.
DVT reports improve lending decisions and can be used in conjunction with credit reports.
In fact, DVT reports provide enough valuable data to stand on their own. This powerful tool was integrated into Skypatrol’s award winning
GPS vehicle finance platform - Defender 2.0 – to give their users immediate access.
“We worked closely with our customers to design these DVT reports and capabilities.
“We invested many hours to understand the needs and requirements of independent auto dealers and vehicle lenders.
“Then, with the help of the best data compilers in the world, our development team built this comprehensive and reliable data verification tool.
“This means that now all auto dealers will have a way to quickly and inexpensively verify key information and put together a comprehensive risk assessment of prospective or existing borrowers,” said Robert Rubin, Skypatrol CEO.
Skypatrol’s DVT, with three levels of reports: Basic; Comprehensive; and Skip Detail, is sometimes more helpful than a traditional credit report when it comes to evaluating a subprime bor-
PO WERED BY
rower’s likelihood to repay.
Verifying data, like a steady job and a stable residence is often a more telling indicator than a FICO score.
Better Payment Habits, Better Cash Flow
“Most consumers want to do the right thing,” said Mark Peters, SVP of sales at Skypatrol.
“They often just need a little help building habits that keep them in good stead with car dealers and lenders.
“The Skypatrol Defender 2.0 Virtual Payment Collector tool sends real payment reminders with email notifications, but more importantly via SMS/text.
“Everyone has a smart phone, and text messaging is a natural way to stay in touch with borrowers.
“Our Virtual Payment Collector allows lenders to work on changing the habits of their borrowers. Better outcomes all around.”
Time to Resale –
Every Minute Costs Money
When all else fails, you need to get the car back fast. The faster you get the vehicle, the less time and money you have to spend doing repairs and readying it for resale, and the less likely the debtor will be able to disappear entirely with the vehicle.
Skypatrol’s Defender 2.0 makes the repo process run a lot smoother, and that is in everybody’s best interest.
The Repossession Mode (patent pending) is only available to Skypatrol’s Defender 2.0 users.
The ‘One-click Repo’ mode lets users securely send critical information about a vehicle’s whereabouts to the agents in the field along with the ability to use the Defender 2.0 Platform.
That ensures that the agents receive an accurate VIN and the right address.
Key Defender 2.0 platform capabilities like real time vehicle locates, geo-fencing, and split screen map views are made available when they need it.
§ Longer terms
§ Broader funding policies
§ Newer vehicles
§ Higher advances § Compliance checking
“I opened my business in 1998 with about 15 diferent lenders and selling around 30 cars a month. In 2004 most of the lenders dried up and so did my volume and cash fow. My frst Portfolio Proft Express check was $47,000.
Credit Acceptance not only saved my dealership, it’s allowed me to increase my sales. The program has been life-changing for me and my customers.”
