A new report finds that consumers are almost twice as likely to be swayed by autofocused digital marketing than the general population (21 percent vs. 12 percent). Moreover, automotive shoppers are 71 percent more likely to be influenced by digital advertising across multiple retail categories than the average consumer.
Dealership Experience Drives Purchases
A recent study by AutoTrader. com identified the “Dealership Experience,” and particularly “Customer Handling,” as one of the leading factors that determines where consumers make their purchases.
Money Motivates Car Salespeople
The majority of car salespeople decided to sell cars because of the income potential.
A poll by Joe Verde found 28 percent of respondents said the income potential led to them becoming car salesmen.
Off-Lease Vehicles Fill Used Pipeline
By Ted Craig
Several analysts are raising concerns that a flood of of-lease vehicles will drive down used-car prices. Industry experts, however, remain cautiously optimistic that the market will absorb this extra inventory.
The latest warning
comes from credit ratings agency Fitch. Fitch reports that increased “supplies of oflease vehicles, coupled with rising inventories and new vehicle production, could hurt the wholesale market and auto ABS performance metrics over the long term.”
A surge in of-lease ve-
hicles did cause prices to drop in the past. But industry experts say this time is diferent.
A main reason is today’s lessors are more invested in maintaining residual values. Lessors during the last decade’s great deluge of of-lease units consisted of a mix of manu-
facturers, banks and other finance companies.
Most cars these days are leased either through a manufacturer’s captive finance arm or through a manufacturer’s private label program run by a bank. Either way they need to maintain a brand’s resale value.
Continued on page 8
Report Claims Minorities Pay Higher Finance Rates
By Ted Craig
A consumer advocacy group released a report that attempts to support the federal government’s recent crackdown on discrimination in auto lending.
The survey from the Center for Responsible Lending finds that African Americans and Latinos attempt to negotiate loan pricing with car dealers more often than white consumers: 39 percent of Latinos and 32 percent of African Americans reported negotiating their interest rate, compared to only 22 percent of white respondents. Yet white
car buyers reported receiving lower interest rates - even those who didn’t try to negotiate at all, the report states. The report does not indicate if the minority consumers received lower rates than initially ofered.
Attorney Tom Hudson called the report an “advocacy piece that relies on other advocacy pieces.”
Hudson said existing state and federal laws address some of what is in the report.
Other criticisms already have an industry solution.
“Menu sales accomplish much of what these folks say they want to accomplish,” Hudson said.
File photo HERE THEY COME: Experts say the market absorb a surge in vehicles because today’s lessors want to
City Kicks Dealers Off One of Nation’s ‘Best Streets’
By Sheila McGrath
For nearly two decades, Behrooz Raiszadeh has been serving generations of buyers at his used-car store on King Street in Alexandria, Va.
But now that he’s being forced to move due to a change in the city’s zoning laws, he’s hoping those longtime customers will keep track of him.
King Street is part of Alexandria’s historic Old Town, and was originally platted by George Washington in 1749. In 2011, the American Planning Association named King Street a “Great Place in America” in its Great Streets category.
But despite the fact that car dealers have been part of the landscape on the “Great Street” for the last century, city planners decided they would have to go.
In 2006, they adopted a King Street Retail Strategy calling for continuous retail uses on the street to enhance the pedestrian experience. They’re aiming for upscale retailers, restaurants, bistros and clubs.
Dealers were given seven years to find a new location, and in November, that time ran out for Raiszadeh, owner of A&B Auto Finance Co., and another dealer, Vafa Zarineh, owner of King’s Auto.
On Jan. 7, the city Planning Commission granted them two extra months to look for new locations. But in
March, commissioners said, they plan to deny the dealers’ applications for permits that would let them stay any longer.
Planning Commission member Eric Wagner said the businesses had plenty of notice that they’d have to leave.
“You never want to evict an operating business, but
when people are given actual notice for seven years … it’s hard to understand why the business owner didn’t relocate.”
But it’s not so simple, according to Raiszadeh. The city’s zoning code is making it impossible to find a good site.
“They don’t want any used car businesses in the city of
Alexandria,” Raiszadeh said. He’s seeking help from the city’s Economic Development Partnership, and he hopes with their help he’ll be able to stay in Alexandria. Despite his current predicament, he said he has a good relationship with the city. But if he can’t find a good site in town, he’ll have to look elsewhere, he said.
LACKING CURB APPEAL : Dealer Behrooz Raiszadeh, on right, says he has a small lot, but he turns his cars quickly. The Virginia city his business has called home for more than 20 years now prefers bistros to used-car stores.
NEWS BRIEFS
GM Financial Reports Growth
General Motors Financial Company Inc. reported higher earnings in 2013.
GM Financial announced earnings of $121 million for the fourth quarter, compared to $91 million for the fourth quarter of 2012.
Earnings for the year were $566 million, compared to $463 million for 2012.
Consumer loan originations were $3.3 billion for the quarter, compared to $2.5 billion for the third quarter and $1.2 billion for the fourth quarter of 2012.
Consumer loan originations for the year were $9.6 billion, compared to $5.6 billion for 2012. The outstanding balance of consumer finance receivables totaled $23.3 billion at Dec. 31.
Consumer loan originations in North America for the quarter and year were $1.1 billion and $5.1 billion, respectively.
Consumer finance receivables 31to-60 days delinquent were 4.1 percent of the portfolio at Dec. 31, compared to 6.1 percent at Dec. 31, 2012.
America’s Car-Mart Adds Store
America’s Car-Mart Inc. announced the opening of its 130th dealership. The dealership is located in Altus, Okla. Altus is the the company’s 23rd dealership in Oklahoma.
Carfax Announces Pacts
Carfax announced the renewal of its nine-year partnership with Cars. com that allows dealers to include Carfax Vehicle History Reports on their Cars.com listings.
Since 2005, Carfax Reports have been available for the used vehicle listings of subscribing dealers on Cars.com.
Carfax also announced an agreement with Nowcom to ofer access to Carfax Vehicle History Reports through its DealerCenter dealer management system.
Carfax-subscribing dealers can run and view Carfax Reports for any used car in inventory from within DealerCenter’s inventory management system.
In addition, dealers can share the Carfax Reports they run with potential buyers on DealerCenter’s Dealer Website product.
Manheim Enhances Solution
Manheim has announced several enhancements to its transportation
solution, including changes to full service transportation quotes, management of full service transportation orders and 1Dispatch registration for self-managed orders.
Customers can now receive a transportation quote on the vehicle details page, Workbook and My Purchases on manheim.com.
They can also receive the full service transportation quote after scanning a VIN with their Manheim Mobile app. Through 1Dispatch registration, customers will now have the ability to start the registration process from Manheim.com, including Vehicle Display Page, Workbook and My Purchases.
Getting it Straight
Published By General Media LLC
USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080
Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400
www.usedcarnews.com
Charles M. Thomas
Founder (1947-2002)
Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager
Editorial:
Ted Craig, Managing Editor
Jefrey Bellant, Staf Writer
Gabriel E. Camero, Intern
Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath
Columnist: Tony Moorby
Advertising: Shannon Colby, Account Manager
Megan Frump, Account Manager
Marie Hingst, Account Manager
Circulation: Helen Thomas
Production:
Josie Godlewski, Media Manager
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Used Car News is published the first and third Monday of each month.
Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.
Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
Feds See Future of Cars Talking to Each Other
WASHINGTON (AP) _ Your car might see a deadly crash coming even if you don’t, the government says, indicating it will require automakers to equip new vehicles with technology that lets cars warn each other if they’re plunging toward peril.
The action, still some years of, has ``game-changing potential’’ to cut collisions, deaths and injuries, federal transportation ofcials said at a news conference on Monday.
A radio signal would continually transmit a vehicle’s position, heading, speed and other information. Cars and light trucks would receive the same information back from other cars, and a vehicle’s computer would alert its driver to an impending collision. Alerts could be a flashing message, an audible warning, or a driver’s seat that rumbles. Some systems might even automatically brake to avoid an accident if manufacturers choose to include that option.
Your car would ``see’’ when another car or truck
equipped with the same technology was about to run a red light, even if that vehicle was hidden around a corner. Your car would also know when a car several vehicles ahead in a line of trafc had made a sudden stop and alert you even before you saw brake lights
The technology works up to about 300 yards.
If communities choose to invest in the technology, roadways and trafc lights could start talking to cars, too, sending warnings of trafc congestion or road hazards ahead in time for drivers to take a detour.
The technology is separate from automated safety features using sensors and radar that are already being built into some high-end vehicles today and which are seen as the basis for future self-driving cars. But government and industry ofcials see the two technologies as compatible. If continuous conversations between cars make driving safer, then self-driving cars will become safer as well.
The National Highway
Trafc Safety Administration, which has been working with automakers on the technology for the past decade, estimates vehicleto-vehicle communications could prevent up to 80 percent of accidents that don’t involve drunken drivers or mechanical failure.
Crashes involving a driver with a blood alcohol content of .08 or higher accounted for nearly a third of the 33,500 trafc fatalities in the U.S. in 2012, according to the safety agency.
The technology represents the start of a new era in automotive safety in which the focus is ``to prevent crashes in the first place,’’ as compared with previous eforts to ensure accidents are survivable, said David Friedman, the head of the agency.
No orders to automakers are imminent, ofcials said.
After an agency report, the public and carmakers will have 90 days to comment, then regulators will begin drafting a proposal, and that process could take months
to years. But Transportation Secretary Anthony Foxx said it is his intention to issue the proposal before President Barack Obama leaves ofce.
“It will change driving as we know it over time,’’ said Scott Belcher, president and CEO of the Intelligent Transportation Society of America. “Automobile makers will rethink how they design and construct cars because they will no longer be constructing cars to survive a crash, but building them to avoid a crash.’’
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Group Launches Compliance Program
By Gabriel E. Camero
Any firm providing auto finance today faces an array of ever-growing laws and regulations.
That’s why the National Auto Finance Association launched its consumer compliance certification program. The first training session took place Jan. 15 and 16 in Dallas.
NAF Association Executive Director Jack Tracey said this program difers from other compliance training because it “is granular it gets down into the particulars in each of the modules.”
The program consists of four modules, two in a classroom setting and two online, which take about 35 hours to finish.
The introductory module is set in a classroom while modules two and three, which cover Equal Credit Opportunity acts on the federal and state levels, are online. The fourth module, on the Consumer Financial Protection Bureau, will start once the first students are finished with
modules two and three, probably in the fall.
To pass a module, students need to score at least a 75 percent on a test that is comprised of, according to Tracy, 80 to 90 questions. The online modules are divided into 26 sessions followed by a test for each and are estimated to take 20 to 25 hours to complete.
Certificates last for two years, but the association will ofer continuing education classes frequently with evolving content.
“It’s our experience, at least for the last couple of years, that the CFPB has been doing so much that there’s going to be new stuf,” Tracey said.
Students will have access to the course materials online once they’ve completed each module.
“So if they’re bumping into something that they don’t normally bump into and they want a little refresher they can just go back into the course content and take it,” Tracey said.
The Hudson Cook Law Firm provided the content and most of the services for the program, including attorneys Patty Covington and Eric Johnson as classroom teachers. Kat Messenger, who trains dealers in the Carolinas, provided the voiceover work for the online classes.
Continued on page 10
Jack Tracey
– Bret L. Buike Operations Manager J.D. Byrider OH-105
Industry Ready to Absorb Off-Lease
Another cause for optimism is slack in the used market.
Both new and used sales remain far below their pre-recession levels when adjusted for population growth. That’s due in part to a lack of household formation among young people as they fail to find work and put of getting married or even moving out of their parents’ homes.
“Eventually, these people will buy something,” said Steven Szakaly, chief economist for the National Automobile Dealers Association.
Traditionally, franchise and independent dealers sold about an equal number of vehicles. Franchise dealers this past year, however, outsold independents.
Many dealers have said a lack of inventory has held them back.
“The pipeline of the used-car market is now almost full,” said Black Book editorial director Ricky Beggs.
Franchise dealers also want more of-lease inventory for their certified pre-owned programs. CPO sales topped 21 million in 2013, a number Jonathon Banks of the NADA Used
Car Guide said “will be blown away” this year.
Certified sales already set a record in the first month. The 166,311 units sold in January were a record for the month.
Another way of handling an increase in of-lease volumes is increasing used-car leasing.
Mike Gof, CEO of Toyota Financial Services, said that’s a tough sell to both dealers and consumers.
“The dealers have just not latched on to used leasing,” Gof said.
Toyota tried a program last year with special rates for used leases. There was some response among luxury buyers, but not the mainstream consumers.
Manheim chief economist Tom Webb said everybody worries about the wrong year, any way. The really huge increases in of-lease vehicles will come in 2015 and 2016, Webb said.
Even then he expects no dramatic collapse in wholesale prices as consignors come up with “remedies for residual risk.”
Compliance
The first class was in such high demand despite little marketing that the NAF Association turned away registrants after taking 86 applications rather than the expected 35 to 40.
Tuition for the program is $2,000 for NAF Association members and $2,600 for non-members. Tracy expects the prices to stay level given the high demand and cost for the program.
Although the teaching method of the first module – a lecture with
– Continued from page 6
PowerPoint slides – was a success Tracy is aware of the tediousness of a 15-hour lecture.
“There will probably be refinements to the way it’s delivered so the units will be more engaging and interesting going forward,” he said. Tracy plans to set up modules in several locations to better suit students.
The next introductory class will be held at the Omni Hotel in Fort Worth, Texas, in conjunction with the NAF conference in May.
City Mulls Allowing More Dealers
HORN LAKE, Miss. (AP) – A Mississippi city might allow an increase in used-car dealers as a way to boost business.
Horn Lake’s current zoning ordinances ``strongly discourage’’ usedcar dealerships, ofcials said, by only allowing them in conjunction with a new-car dealership.
Some existing used car lots were grandfathered in before current regulations.
Over the past few months, The Commercial Appeal reports Mayor Allen Latimer has said the city has received numerous inquiries about such used-car dealerships. Latimer
suggests to the board of aldermen that as part of the city’s push to attract new business, it would consider changes to strict regulations governing used car dealerships.
City Planner Austin Cardosi will look at ordinances in surrounding cities and possibly ofer something to the city’s planning commission to consider before it comes back to aldermen.
The subject is a delicate matter for city leaders, some of whom have been burned by past experiences with used-car dealerships that went out of business without contributing anything to the city’s tax base.
PEOPLE IN THE NEWS
VinSolutions Names VP
Jennifer Lee has been promoted to vice president of product for VinSolutions. Lee will continue to oversee the company’s mobile platforms, CRM tools, campaign MGT tools and Haystak websites for VinSolutions, an AutoTrader Group company. Lee joined VinSolutions in February 2013 as senior director of product. In that role, Lee worked directly with dealers and product development teams to integrate and streamline exiting dealership solutions, including the seamless integration of data and technology with AutoTrader Group.
A veteran of more than 16 years in the automobile industry, Lee is a proven leader with a passion for building innovative and leading software products for dealers.
Prior to joining VinSolutions, Lee served in dealer product development and leadership roles with DealerTrack, JM Family Enterprises and Reynolds and Reynolds.
She began her automotive career following four years of distinguished service with the United States Air
Force, and is a Desert Storm veteran. She earned a bachelor’s degree in business administration from Indiana University.
Manheim Promotes Managers
Manheim has named Chad Ruffin as general manager for Manheim Southern California, and has promoted Donny Cohen to auction manager for Manheim Daytona Beach and Manheim Jacksonville. Rufn has spent more than 16 years in the automotive wholesale industry.
During his career Rufn has worked for Manheim, HSBC, Arcadia/Citi Financial and others. Rufn spent five years at Manheim earlier in his career in various roles, including dealer sales manager, Ford account manager, recon manager and assistant recon manager. He is a graduate of Saddleback College in Mission Viejo, Calif.
Cohen is responsible for the dayto-day management and oversight of both locations, and will be supported by managers and supervisors focused on specific functional areas. Cohen has more than 21 years of automotive wholesale experience, including seven with Manheim. He was named assistant general manager at Manheim St. Pete in early 2012. Prior to that role, Cohen worked at Manheim Fort Myers.
Cars.com Hires Analyst
Cars.com has named Jesse Toprak as chief analyst.
Toprak will be the spokesperson for the company’s market intelligence and communication initiatives.
Prior to joining Cars.com, Toprak served as vice president of market intelligence at TrueCar.com where he was responsible for analyzing and reporting on a range of automotive topics, trends and insights for the industry, media and consumers. Toprak also served as the executive director of industry analysis at Edmunds.com.
Toprak has more than 18 years of industry experience, including roles at franchise dealerships and with major automotive manufacturers.
Aftermarket Firm Taps President
SKF has announced the appointment of Tom O’Brien as president of SKF Vehicle Service Market (VSM), North America Business Unit, efective immediately.
O’Brien previously served as the interim president for SKF VSM North America following the death of Mike McGrath in October. He also has served as the vice president of automotive sales for SKF VSM, North America since joining SKF in 2007.
In his new role, O’Brien will over-
see all sales and marketing initiatives for the SKF VSM automotive and heavy duty aftermarkets in North America and will report to Christer Cedervall, director, SKF, Vehicle Service Market Global. He will continue to be based at SKF’s Elgin, Ill., ofce.
Auction Owner Adds Sales
David Andrews, CEO of City Enterprises, LLC, announced the acquisition of Chattanooga Auto Auction.
The auction joins the company’s sister Dealer’s Auto Auctions in Memphis, Tenn.; Mobile, Ala.; Huntsville, Ala.; and Murfreesboro, Tenn. Dealer’s Auto Auction Chattanooga is located at 2120 Stein Drive in Chattanooga, Tenn.
The 6-lane auction facility holds weekly dealer sales on Thursday mornings at 9:45 am and dealer and public sales on Tuesday evenings at 6:30 pm. DAA Chattanooga hosts monthly sale events featuring Tennessee Valley Authority vehicles. David Andrews
Jennifer Lee
ADESA Boston March 14, 21, 28
508-626-7000
ADESA Charlotte March 6, 20
704-587-7653
ADESA Cincinnati/Dayton March 18 937-746-4000
ADESA Golden Gate March 4, 18 209-839-8000
ADESA Houston March 5, 19 281-580-1800
ADESA Indianapolis March 4, 18 800-925-1210
ADESA Kansas City March 4, 18 816-525-1100
ADESA Lexington March 6 859-263-5163
ADESA New Jersey March 6, 20 908-725-2200
ADESA San Diego March 6 619-661-5565
ADESA Tulsa March 14 918-437-9044
America’s AA-Chicago March 19 708-389-4488
Brasher’s Salt Lake AA March 25
801-322-1234
Columbus Fair AA March 19, 26 614-497-2000
Manheim Atlanta March 5, 6, 20 404-762-9211
Manheim BaltimoreWashington March 11 410-796-8899
Manheim Dallas March 12, 26 877-860-1651
Manheim Denver March 12 800-822-1177
Manheim Detroit March 6, 13, 20 734-654-7100
Manheim Fredericksburg March 13, 27 540-368-3400
Manheim Milwaukee March 12, 26 262-835-4436
Manheim Minneapolis March 5 763-425-7653
Manheim Nashville March 19, 26 877-386-5004
Manheim Nevada March 21 702-361-1000
Manheim New Jersey March 12, 26
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Manheim New Orleans March 12 985-643-2061
Manheim Orlando March 4, 11, 17, 18, 25
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Manheim Pennsylvania March 6, 7, 20, 21 800-777-2053
Manheim Phoenix March 6, 13, 20, 27 623-907-7000
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Manheim Seattle March 5 206-762-1600
Manheim Southern California March 20 909-822-2261
Southern AA March 12 860-292-7500
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
“I don’t have much in inventory now; I’m down quite a bit. I only have about 25.
“Last month I sold six, the weather’s been terrible here with the cold and snow so it stops people from shopping.
“Not too many people are out looking for cars when it’s zero degrees.
“When it’s warm we sell about eight or ten a month.
“I get my cars from a couple of auctions. I generally go to the Nebraska Auto Auction in Lincoln and Salina Auto Auction in Salina, Kan.
“I’m real close to Kansas so it’s the same distance to either place.
“Once in a while I do buy some off the streets and I’ve had steady customers for years and a lot of them trade in.
“I don’t do any financing. I do no-interest, no
carrying charge, and one easy payment.
“A lot of the people I usually deal with have their own banks that they go through. That’s why I don’t sell as many either.
“A lot of people need financing but I’m just a small operation and I don’t get into the financing.
“I have about half cars and half trucks/SUVs right now, about 90 percent domestic.
“It seems like I get foreign vehicles and people will go to Lincoln, a hundred miles away, to buy them but they don’t buy them locally.
“We’re just a small town in a rural area and a lot of the people stick with domestic.
“Our average model year is probably ‘08, ‘09, and I try to stay under 100,000 miles, but it’s getting harder all the time.
“But it’s not because of the economy. Actually the economy didn’t hurt us as bad out here in the rural area.
“The farm economy has
been good out here, it’s kind of let up now but there were four or five years of good grain prices; they’ve fallen now, so that hurts.
“Our average retail price is around the $10,000 range.
“I hire most of the recon work out, I probably spend $400 or $500 per vehicle.
“If you don’t do it before you sell them you get in trouble with them and I don’t like to sell junk.
“I’m on the website Wheels For You and I used to advertise in their magazine but I get good coverage on the Internet.
“I’ve also got a good location on a main four-lane highway and I get a lot of exposure with the driveby traffic, which helps a lot.
“One of the last ones I sold was an ‘03 Ford F-150 Supercrew.
“I had it in the detail shop and some people saw it sitting there. So I picked it up and dropped it off to show it to them on the way home and they bought it.
Compiled by Gabriel E. Camero
“It was a trade-in, had 115,000 miles on it and I got $11,500.
“It doesn’t happen that way all that often but it did on this one: I never even got it on the lot.”
TEXAS
Butch Cornelius, president and owner, Cornelius Motor Sales, Fort Worth, Texas
“We’ve been open for 67 years.
“My dad opened it in 1946 because the war was over and he needed a job.
“We have a single location with about 45 units on the lot and sell an average of 20 retail cars and 10 wholesale pieces a month.
“We do some in-house financing and some subprime financing, most of it’s bank or credit unions.
“When we do buy-here, pay-here we have an average $1,500 down payment with an average payment of $325 a month for about 24 months.
“We have about 66 percent trucks and 33 percent cars and SUVs. Of those, we have 80 percent do -
mestic and 20 percent import, maybe.
“Our average model year is about ‘06.
“Our average mileage is around 100,000 – some more, some less.
“The average retail price is about $12,000.
“I’ve got a couple of new car auctions that I go to source cars from and we take some trade-ins, not many.
“We recon our vehicles for probably an average of $600 to $700.
“Body and mechanical work we send out, but we do cleaning and light work here.
“We have a shop with two lifts that we service our own cars with.
“We use electronic marketing mostly. You know your website, search engines, Craigslist, eBay, cars.com, that stuff.
“The last car we sold was an ‘06 Dodge Dakota fourdoor pickup with about 65,000 miles.
“It brought $9,600 on the street so about $9,000 cash, plus the tax.”
Fast Track Your Cash
WHOLESALE MARKETS
FLORIDA
Doug Rodriguez, general manager, Tallahassee Auto Auction, Tallahassee, Fla.:
“The auction will turn 30 years old this June. We will have a huge anniversary sale that fourth week in June.
“We have three lanes and we run all three. We run between 400 and 500 vehicles every week.
“Last year was recordbreaking for us. We significantly increased both dealer consignment and fleet/ lease/repo consignment for a 35-percent increase in business.
“For this year, we certainly expect – and we’re already seeing – additional growth.
“We generally have a 50 to 55 percent sale. I expect that to go up as we enter tax season. We should run anywhere in the mid-60s I should think. I’m looking forward to some very strong sales.
“We get between 300 to 400 dealers each week. Out of those, we get a good 80 to 100 that are simulcast dealers each week. So we do a significant business on the
simulcast side.
“We draw dealers from three states. They come from southern Alabama, the panhandle of Florida and we pull them from southern Georgia.
“The mood has been good in the lanes. The mood has been strong.
“Most dealers who have labored through the recession feel that it has passed them and they are stronger for it.
“Our volumes are about 80 percent dealer consignment and 20 percent fleetlease and repos.
“We gained a big part of that fleet/lease/repo market share last year. We expect to grow that again this year.
“We do business with ARI, PHH, Emkay, SRG Remarketing and local banks and credit unions.
“We have a salvage sale the first and the last week of each month. Generally speaking, we run anywhere between 80 and 100 units.
“At the end of our sale on the second Friday of each month we hold a power sports sale. That struggled a
little bit but it has increased recently. I’ll get anywhere from 50 to 60 units.
“We may see that grow a little more this year. We primarily get RVs and fishing boats. On the RVs, we get a few Class As, but mainly we’ll get fifth wheels and bumper pushers.
“We also have a Five-Day Frontline sale on the third week of each month. The dealers bring us late-model (2004 and newer) and low mileage (75,000 and under) vehicles and the dealer guarantees the vehicle for five days. That sale has been successful and we’ll get 50 or 60 units in that sale.
“Our average sale price overall coming through the lanes is anywhere from $8,000 to $12,000. That’s probably $1,000 higher. Our quality of consignment product is higher.
“Trucks are really in low volume around here, so they are a hot commodity right now.
“They’re looking for the Ford F-150s and the Chevy S-10s and Silverados.
“As quickly as I get trucks in, they are flying out.”
IOWA
Compiled by Jeffrey Bellant
Mark Greb, owner, Plaza Auto Auction, Mt. Vernon, Iowa:
“We’re in our 51st year. I’ve owned Plaza for 10 years.
“We have a total of five lanes and we’re running four lanes.
“Due to the weather recent volumes have been way down. It’s not so much the cold. It’s been the snow.
“(In early February) last year we were running about 350 cars, maybe 325. We were down to 275 (at a recent sale).
“Sales percentages at our (last two sales in January) were 67 and 75 percent. So sales percentages were high.
“Last year, we averaged 232 dealers per sale. One recent sale was about 200.
“Fleet/lease business has been getting bigger. Right now, we’re about 75 percent dealer consignment and 25 percent fleet/lease. Regional and local banks are delving into indirect lending or going a little bit deeper, so we’re seeing a little trickledown efect from that.
“PHH has been one of
our largest consignors. Others are Emkay, Flexco Fleet Services and Harris Bank.
“We also do a salvage sale twice a month. We usually have about 20 cars at that sale.
“Our power sports sale has seen some really nice growth. We were quarterly. But we’re going to go to every other month for that sale this year. By next year, our plan is to even go monthly as we slowly ramp it up.
“We run a lot of motorcycles and of-road vehicles. We’ll run between 110 and 125 per (power sports) sale. On a good day we’ll sell 60 percent, on an of day we’ll sell 40 percent.
“Our average car sold on the block is about $4,800. I think that’s up a little bit, but not a large amount.
“I think dealer consignment will continue to improve.
“Last year, I think we sold 800 more cars than we did the year before. That was a 5 percent increase. I expect that to go up again this year.”
FEBRUARY 2014
2012 MODEL S
750Li 4D Sedan 64200 58500 56500 45900 38850
Honda Accord LX 4D Sedan 15300 15100 14300 12525 11100
Lexus ES 350 4D Luxury Sedan 30400 28900 27000 23275 20450
Mercedes-Benz
Mitsubishi Galant ES 4D Sedan 11750 12000 11000 9450 8075
Nissan Altima Base 4D Sedan 12900 12500 11200 9675 8425
Nissan
Nissan
Toyota Camry LE 4D Sedan 16450 15200
2010 MODEL S
Buick LaCrosse CX 4D Sedan 14500 14400 11950 10550 8900
Cadillac DTS 4D Sedan 17900 18550 16650 12900 10725
Chevrolet Cobalt LS 4D Sedan 8200 7650 6350 5625 4875
Chevrolet Impala LS 4D Sedan 9800 9400 7450 6675 5750
Chrysler 300 Touring 4D Sedan 13500 13500 11450 9775 8250
Chrysler Sebring Touring 4D Sedan 10300 9200 7950 5350 4225
Ford Mustang 2D Coupe 13200 12500 11700 9925 8675
Ford Taurus SEL 4D Sedan 14400 14250 12850 9975 8300
Lincoln Town Car Signature Limited 4D Sedan 18200 17500 17750 13425 10950
Ford Focus SE 4D Sedan 9400 9150 7700 6650 5325
Import Cars Feb-13 Aug-13 Feb-14 Feb-15 Feb-16
Acura TL 4D Sedan 20600 20400 17600 14450 11925
BMW 3-Series 328i 4D Sedan 20800 19800 16550 13925 11600
BMW 7-Series 750Li 4D Sedan 46600 40200 37850 31225 26125
Honda Accord LX 4D Sedan 12500 12200 11300 9675 8350
Hyundai Sonata GLS 4D Sedan 9650 9050 8150 6925 5725
Lexus ES 350 4D Luxury Sedan 23300 21900 19800 17300 14675
Mercedes-Benz E Class E350 4D Luxury Sedan 30000 28600 24800 19200 15450
Mitsubishi Galant ES 4D Sedan 9350 8550 7900 6575 5475
Nissan Altima 4D Sedan 10550 9950 8800 7225 6150
Nissan Altima S 4D Sedan 11850 11250 10100 8075 6875
Nissan Sentra 4D Sedan 9650 9150 8500 6925 5850
Toyota Camry LE 4D Sedan 12650 11850 10400 9200 8050
Toyota
2011 MODEL S
2009 MODEL S
SCAROLA WINS MANHEIM HONOR
Manheim and AutoTrader Group presented its ninth annual Barbara Cox Anthony Automotive Woman of the Year Award to Susan Scarola, vice chairman of DCH Auto Group.
This honor is awarded to women who have demonstrated business leadership, community advocacy and a commitment to furthering the automotive industry. Manheim and AutoTrader Group President Sandy Schwartz presented the award during the National Automobile Dealers Association convention.
“Susan is an exceptional business leader, innovative thinker and has the passion for delivering an excellent customer experience,” Schwartz said. “She has played a key role in positively influencing the industry, while continuing to shape DCH as one of the leading dealership groups in the country.”
Scarola said she was “extremely honored” by the award.
“I am especially proud of the ongoing commitment by Manheim and AutoTrader Group to encourage more women to consider careers in this rapidly evolving sector,” she said.
ADESA Donates to NADA Foundation
For the second consecutive year, Joe Verde, president of the Joe Verde Group in San Juan Capistrano, Calif., was the top bidder on a HarleyDavidson motorcycle auctioned by ADESA at the National Automobile Dealers Association Convention.
Verde’s winning bid of $27,000 for the 2013 Heritage Softail Classic Anniversary Edition will be added to a $10,000 grant from the National Automobile Dealers Charitable Foundation, which was presented to the Wounded Veterans Initiative of Canine Companions for Independence (CCI). CCI trains companion dogs for wounded veterans, a cause long supported by the nation’s new-car and -truck dealers.
The motorcycle was donated by ADESA.
Proceeds from the auction and the grant go to the NADA Foundation’s Frank E. McCarthy Memorial Fund.
The ADESA auctions have raised $71,000 for the NADA Foundation and CCI.
Woman of the Year: Susan Scarola, vice chairwoman of DCH Auto Group, receives the Barbara Cox Anthony Automotive Woman of the Year Award from Manheim’s Sandy Schwartz.
Compiled By Jeffrey Bellant
Disconnected Jottings From Tony Moorby...
If you believe, like me, that President Obama is more a Socialist than a Democrat, then he is having considerable success in his administration. He is managing to get more and more people
dependent on a nanny-state government than we have seen in all this country’s wonderful history, short as it has been.
As he pronounced during his recent State of the Union address he’s going to push through his policies without regard to other elected officials’ input or objection, by executive order.
Now, I don’t profess to know anything about the intricacies of parliamentary process but it seems to me that our leader is prepared
to fly in the face of the population just because, in his opinion, it’s right to do so. Is that constitutionally correct? Did the (amazingly) wise founding fathers deem this to be acceptable?
I’ve said before that a wealthy and well-to-do nation should provide a safety net for those who really need one but should we be making it more worthwhile not to work than to work?
The old sense of responsibility that the head of the family would provide for the well being of his or her ofspring is evaporating into thin air. All the while, the political public relations machinery in Washington is trying to convince us that the economy is getting better
– compared to what? 2009 or 2010? Let’s compare it to the mid-eighties or nineties. I know you’re going to say that those years were buoyed by a free-flowing, untethered or regulated environment but using the vice grip of this extended recession is no reason to alter what, elementally, put this country where it is in world standing. Let the bankers take some risk, bearing in mind the lessons of the recent past but with the knowledge that there would be no bailouts. At the moment, we have bankers more worried about complying with restrictive regulations and dealing with a myriad of government agencies, than providing the financial fans to turn the embers of a recovery into an inferno of growth. I’ve had first-hand encounters with big banks and the Small Business Administration recently and if a proposal to improve, buy or expand a business doesn’t fall within their formula, then you’ve got more chance of being struck by lightning than making of with a bag of business-building cash.
CR R O O S S W D Sponsored by
By Miles Mellor
Down
1. A Cadillac
2. It’s offered as a freebie by some dealers (2 words)
3. Metal corrosion 5. Promo
6. Turn over, of an engine
Instead of paying people to stay out of work, why not incentivize industry to increase minimum wages through tax rebates or some other mechanism and put real money into the pockets of folks who deserve it? They would spend it and growth could start again – from the bottom up. This is not taking money from the rich to give to the poor – a cure-all that is the belief of our president. The uneven wealth distribution in this country is being fostered by unemployment, not industry barons padding their back pockets.
Looking forward, it seems like we’ll have more of the same in the next election cycle. The American conscience will, once again be given that feel-good sense by saying we’re ready to elect a woman
as president. Not that there’s anything wrong with that – I was (and still am) a “Thatcherite.” It’s just that Hilary Clinton is the wrong side of the aisle for me. It doesn’t look like the Republican Party has much to ofer as an alternative in any up-coming elections. I know, they’re two years away but the hustings are already up and running. I certainly hope someone comes out of the woodwork to successfully embrace an appeal to right-thinking (pun intended) American families.
This administration is starting to look like Vladimir Putin running the Winter Olympics – painting a thin glaze of success over a very shaky construction. If we wanted to flush this lot down the toilet, it probably wouldn’t work.
INSURANCE AUTO AUCTION S
Across
1. Buick luxury crossover
4. Mercury model
10. Hollywood’s home
11. Crossfre or Pacifca
12. Requests after auto accidents
15. Nissan compact
16. Ford model
17. 18-wheeler
18. Inside prefx
19. Fast-moving (in sales)
21. Four door car
23. 60s Chevy
25. Large family car from VW
28. Recently produced for the frst time
29. Philosopher’s study
32. Southwestern state, for short
33. Cube material
34. MDX maker
36. Black or white. for example
37. Alternative to own
38. Mazda model 40. Amanti is one 41. Perform as expected 43. In the direction of 44. VW seven seater
45. Former German luxury care ___bach 46. First word of the Constitution
7. Lotus car model
8. “Guts, glory” truck
9. Kia minivan
13. Toyota brand 14. Hynudai model
16. Santa ___ 17. Car pronoun 20. Electric car making waves
21. Checked out 22. He produced the frst high speed internal combustion engine 24. First letter the C70’s brand 26. Hyundai model
F150 and Toyota Tundra 30. Nissan SUV
Slang for a BMW
Defnite denials 35. Safety system in a car
Popular Toyota
It’s next to GA
Type of truck
Tony Moorby
MONTHLY DEALER CONSIGNMENT AVERAGES
COMPACT CAR
Jan 2013
$5,919 97,240
Feb 2013 $5,972 98,127
Mar 2013 $6,277 97,157
Apr 2013 $6,127 98,399
May 2013 $6,031 98,817
Jun 2013 $5,955 98,629
Jul 2013 $5,884 99,036
Aug 2013 $5,731 99,188
Sep 2013 $5,490 101,854
Oct 2013 $5,382 102,375
Nov 2013 $5,510 100,375
Dec 2013 $5,572 100,049 YTD AVG: $5,837 99,207
FULLSIZE CAR
Jan 2013 $4,594 106,652
Feb 2013 $4,534 107,620
Mar 2013 $4,930 107,912
Apr 2013 $4,810 110,372
May 2013 $4,678 109,517
Jun 2013 $4,525 108,634
Jul 2013 $4,592 108,592
Aug 2013 $4,568 106,227
Sep 2013 $4,477 107,029
Oct 2013 $4,269 108,755
Nov 2013 $4,499 105,485
Dec 2013 $4,644 104,796 YTD AVG: $4,594 107,759
L UXURY CAR
Jan 2013 $4,594 106,652
Feb 2013 $4,534 107,620
Mar 2013 $4,930 107,912
Apr 2013 $4,810 110,372
May 2013 $4,678 109,517
Jun 2013 $4,525 108,634
Jul 2013 $4,592 108,592
Aug 2013 $4,568 106,227
Sep 2013 $4,477 107,029
Oct 2013 $4,269 108,755
Nov 2013 $4,499 105,485
Dec 2013 $4,644 104,796 YTD AVG: $4,594 107,759
MIDSIZE CAR
Jan 2013 $4,594 106,652
Feb 2013 $4,534 107,620
Mar 2013 $4,930 107,912
Apr 2013 $4,810 110,372
May 2013 $4,678 109,517
Jun 2013 $4,525 108,634
Jul 2013 $4,592 108,592
Aug 2013 $4,568 106,227
Sep 2013 $4,477 107,029
Oct 2013 $4,269 108,755
Nov 2013 $4,499 105,485
Dec 2013 $4,644 104,796 YTD AVG: $4,594 107,759
PICKUP
Jan 2013 $4,594 106,652
Feb 2013 $4,534 107,620
Mar 2013 $4,930 107,912
Apr 2013 $4,810 110,372
May 2013 $4,678 109,517
Jun 2013 $4,525 108,634
Jul 2013 $4,592 108,592
Aug 2013 $4,568 106,227
Sep 2013 $4,477 107,029
Oct 2013 $4,269 108,755
Nov 2013 $4,499 105,485
Dec 2013 $4,644 104,796 YTD AVG: $4,594 107,759
SPORTS CAR
Jan 2013 $4,594 106,652
Feb 2013 $4,534 107,620
Mar 2013 $4,930 107,912
Apr 2013 $4,810 110,372
May 2013 $4,678 109,517
Jun 2013 $4,525 108,634 Jul 2013 $4,592 108,592
Aug 2013 $4,568 106,227 Sep 2013 $4,477 107,029 Oct 2013 $4,269 108,755 Nov 2013
Kelley Blue Book 5-Year Cost to Own Awards
SUBCOMPACT CAR: Chevrolet Spark
COMPACT SUV/CROSSOVER: Jeep Patriot
COMPACT CAR: Toyota Corolla
MID-SIZE SUV/CROSSOVER: Mitsubishi Outlander
SPORTY COMPACT CAR: Hyundai Veloster Turbo
FULL-SIZE SUV/CROSSOVER: Ford Explorer
MID-SIZE CAR: Honda Accord
LUXURY COMPACT SUV/CROSSOVER: Buick Encore
FULL-SIZE CAR: Chevrolet Impala
LUXURY MID-SIZE SUV/CROSSOVER: Lincoln MKX
ENTRY-LEVEL LUXURY CAR: Buick Verano
LUXURY FULL-SIZE SUV/CROSSOVER: Buick Enclave
LUXURY CAR: Audi A5
MID-SIZE PICKUP TRUCK: Toyota Tacoma Double Cab
HIGH-END LUXURY CAR: Lexus LS
FULL-SIZE PICKUP TRUCK: GMC Sierra 1500 Regular Cab
SPORTS CAR: Ford Mustang
MINIVAN/VAN: Dodge Grand Caravan Passenger
HIGH-PERFORMANCE CAR: Chevrolet Camaro SS/ZL1
HYBRID SUV/CROSSOVER: Lexus RX
HYBRID/ALTERNATIVE ENERGY CAR: Toyota Prius c
PLUG-IN VEHICLE: Chevrolet Spark EV
Fixya Test of Time Report
The Fixya Test of Time Report covers the Toyota Camry, Honda Civic, Honda Accord, Toyota Corolla, and Ford Focus car lines, with the Toyota Camry proving itself the most reliable car by having the lowest problem-to-cars sold ratio. The Test of Time rankings for this report are as follows, along with the most standout issue, from best to worst:
These are the top five problems for each line of sedans in the Fixya Test of Time Report, as well the number of troubleshooting requests attributed to that specific problem.
Top 5 Toyota Camry Issues:
1. Gas Pedal/Acceleration — 43,000
2. Brake lights — 30,500
3. Power Steering — 24,000
4. Electrical System — 18,250
5. Windows — 18,000
Top 5 Ford Focus Issues:
1. Power Steering — 73,500
2. Headlights — 34,500
3. Door Issues — 33,750
4. Electrical System — 33,000
5. Break Lights — 11,000
Top 5 Honda Accord Issues:
1. Transmission — 74,000
2. Headlights — 37,250
3. Power Steering — 36,750
4. Fuel Pump — 28,250
5. Electrical System — 18,500
Top 5 Honda Civic Issues:
1. Brake lights — 35,750
2. Brakes — 23,500
3. Electrical System — 16,750
4. Dashboard — 13,250
5. Headlights — 10,500
Top 5 Toyota Corolla Issues
1. Gas Pedal/Acceleration — 63,250
2. Brakes — 42,500
3. Engine — 41,000
4. Electrical System — 33,000
5. Power Steering — 31,750
determine trade-in prices, the more likely they are to transact and walk away happy. To learn more, just visit TIMfordealers.AutoTrader.com
2 1/2 acres & 2 story home on property. Call Virgil, 214-823-3321 or 214-823-4830 FACILITIES FOR SALE/LEASE
CALIF. USED CAR LOT & REPAIR FACILITY. Near Sacramento in the Sierras. Sell or lease. Robin, 530-333-0491
Used Car Store, 3 service bays, Sales
FRUSTRATED?
TECHNOLOGY Spotlight
Use the Internet to Level the Playing Field
There’s a misconception that dealers “of a certain size” can’t compete against large dealer operations on the Internet, especially on third-party sites. The truth of the matter is that shoppers don’t discriminate online between large-, mid- or small-size dealers, or whether they’re a franchise or independent. Shoppers are looking for the best value.
bombarded with advertising messages everywhere they go. To make the biggest impact, your message needs to be consistent across all media –on radio and TV, newspaper, direct mail, on your lot.
Site statistics on AutoTrader.com show that dealers with small amounts of inventory see the same shopper activity on their listings as large dealers.1 If you want to compete with big dealers, know that you don’t need a big budget. You just need to act like them.To get an idea of what you need to do make your online presence more competitive, use these tried-and-true tactics from top-performing dealers who generate the most activity on their listings on AutoTrader.com.
Remember, to compete you don’t have to be big – you just have to level the playing field.
7 Ways You Can Use the Internet to Level the Playing Field
1. Find out what your competitors are doing by performing weekly searches on AutoTrader.com and other sites to understand the competitive landscape.
2. Understand what kinds of cars are in demand in your local market and make adjustments. If you’re heavy in pickups but your market wants minivans, do what you need to do to make it work for your market. The longer you hold on to inventory that’s not in demand, the more it costs you. There are stocking tools available to help you.
3. Make sure your marketing message is consistent in all of your advertising. Consumers are
4. Details, details, details In addition to the year, make, model, trim level, mileage and body type you should always include in your listings, take another 15 minutes to write comments that a shopper can relate to in terms of their lifestyle and personality. For example, “You’ll love how little it costs to run this fuel-sipper, plus the trunk holds a week’s worth of luggage.”
5. Make sure the price is right –listings with a price and photos get 52% more vehicle details page views than listings without a price.
It’s one of the most important pieces of merchandising. If your price is too high, you risk alienating shoppers altogether; too low, your profitability is at stake. There are tools available to help you price your inventory so that it’s competitive in your market.
6. Promote specials – three-quarters of shoppers consider special ofers when choosing to buy a car from a dealer.2 Make sure your specials are loud and clear. Promote financing options (if you ofer them), “no haggle” sales, and any special ofers that you are running.
7. Use ACTUAL photos and more photos both exterior and interior. Listings with multiple photos of the actual car increase Vehicle Details Pages views by 442%!1 For more tips that will take you from “competitive” to “leader of the pack,” visit we workforyou.com/sarah.
1 Source: AutoTrader.com Site Statistics, Jan-Aug 2012
2Source: Automotive News
TECHNOLOGY Spotlight
Use the Internet to Level the Playing Field
There’s a misconception that dealers “of a certain size” can’t compete against large dealer operations on the Internet, especially on third-party sites.
The truth of the matter is that shoppers don’t discriminate online between large-, mid- or small-size dealers, or whether they’re a franchise or independent. Shoppers are looking for the best value.
bombarded with advertising messages everywhere they go. To make the biggest impact, your message needs to be consistent across all media –on radio and TV, newspaper, direct mail, on your lot.
Site statistics on AutoTrader.com show that dealers with small amounts of inventory see the same shopper activity on their listings as large dealers.1 If you want to compete with big dealers, know that you don’t need a big budget. You just need to act like them. To get an idea of what you need to do to make your online presence more competitive, use these tried-and-true tactics from top-performing dealers who generate the most activity on their listings on AutoTrader.com.
Remember, to compete you don’t have to be big – you just have to level the playing field.
7 Ways You Can Use the Internet to Level the Playing Field
1. Find out what your competitors are doing by performing weekly searches on AutoTrader.com and other sites to understand the competitive landscape.
2. Understand what kinds of cars are in demand in your local market and make adjustments. If you’re heavy in pickups but your market wants minivans, do what you need to do to make it work for your market. The longer you hold on to inventory that’s not in demand, the more it costs you. There are stocking tools available to help you.
3. Make sure your marketing message is consistent in all of your advertising. Consumers are
4. Details, details, details In addition to the year, make, model, trim level, mileage and body type you should always include in your listings, take another 15 minutes to write comments that a shopper can relate to in terms of their lifestyle and personality. For example, “You’ll love how little it costs to run this fuel-sipper, plus the trunk holds a week’s worth of luggage.”
5. Make sure the price is right –listings with a price and photos get 52% more vehicle details page views than listings without a price. It’s one of the most important pieces of merchandising. If your price is too high, you risk alienating shoppers altogether; too low, your profitability is at stake. There are tools available to help you price your inventory so that it’s competitive in your market.
6. Promote specials – three-quarters of shoppers consider special ofers when choosing to buy a car from a dealer.2 Make sure your specials are loud and clear. Promote financing options (if you ofer them), “no haggle” sales, and any special ofers that you are running.
7. Use ACTUAL photos and more photos both exterior and interior. Listings with multiple photos of the actual car increase Vehicle Details Pages views by 442%!1 For more tips that will take you from “competitive” to “leader of the pack,” visit we workforyou.com/sarah.
1 Source: AutoTrader.com Site Statistics, Jan-Aug 2012
2Source: Automotive News
Trade-In Marketplace Tool Improves the Trade-In Process
Sales are up in the automotive industry. As more shoppers turn into buyers, dealers will need to pay particularly close attention to trade-ins.
AutoTrader.com® has released a white paper entitled “Maximizing the Trade-In Process,” detailing how dealers can align valuation tools and in-store processes to reduce risk, enhance the customer experience, improve overall margins and facilitate transactional conversations.
“In an industry with tight profit margins, every element of the transaction is important, but the trade-in is arguably one of the most tenuous portions for dealers,” said Juan Flores, director of operations for AutoTrader. com’s Trade-In Marketplace.
“As sales continue to pick up, dealers can expect more trade-ins, making it critical to mitigate risk and improve their processes.”
The white paper is based on research conducted with dealers and consumers who have
taken advantage of AutoTrader. com’s Trade-In Marketplace, which enables consumers to get an instant ofer on their used cars, sight unseen. Consumers can generate an ofer on their vehicle online via AutoTrader. com, KBB.com®, on participating dealer websites, or in-store at a participating dealership. To be a participating dealer in the Trade-In Marketplace program, dealers pay a monthly subscription that gives them access to consumers who generate an instant cash ofer through the tool.
The ofer is valid for 72 hours, and takes into account an extensive set of parameters, including VIN-specific information, details about the condition of the car and the impact of the specific vehicle’s history and after-market equipment. If the vehicle’s condition is accurately represented, the consumer can walk away with a check or use it toward the purchase of another vehicle.
AutoTrader.com research shows that only 37 percent of consumers are satisfied with the trade-in process. 1 However, as information in the white paper shows, the Trade-In Marketplace
can increase consumer satisfaction. According to a survey of Trade-In Marketplace users, 77 percent of ofer redeemers are willing to recommend the tool and use it again in the future. 2 Two out of three felt the tool was valuable in helping them negotiate and improved their interactions at the dealership.2
In addition to improving the consumer experience, the TradeIn Marketplace helps dealers improve their store’s overall margins and mitigate inventory risk, according to focus group research. With its realtime market view and valuation process, the tool takes the guesswork out by providing an ofer that is specific to the particular vehicle and its condition. Because of this, dealers are able to acquire inventory at a price point that allows for sufcient investment in the reconditioning and marketing needed to successfully retail the vehicle. If the the dealer chooses not to retail it, they can liquidate it through traditional auctions or through AutoTrader.com’s third-party vendor for the full amount of the ofer, or sell it to a wholesaler, which helps reduce inventory risk.
To access the full white paper, visit the Dealer Learning Center, an online educational site, at www.DealerLearningCenter.com.
Frazer Reaches Milestone
Frazer Computing reached yet another milestone in January as the number of dealers using the Frazer Dealer Management Software (DMS) rose above the 11,000 mark.
Frazer provides a full featured DMS to used car dealers in all 50 states.
“Frazer Computing has a rather unique formula for our industry. We combine a powerful product with outstanding service at an exceptional price,” said Michael Frazer, president.
“It’s a business philosophy that has worked extremely well for us over the years, and dealers around
the country continue to respond amazingly well to it.”
Over 3,000 dealers purchased the Frazer DMS in 2013.
“We just programmed our fifty thousandth form. We integrate with 12 finance companies. Our software provides automatic vehicle and photo uploading to 106 different online inventory management and marketing systems. That number continues to climb.
“It’s all very exciting around here.”
For more information on Frazer Dealer Management Software go to www.Frazer.com
Capital and Customer Service Industry Professionals
All dealers know that the biggest hurdle to entry into the buy-here, pay-here industry is the need for capital.
Whether for the purchase of inventory, the financing of customers, or for operational cash flow, capital is number one on every dealers list.
While access to capital remains more difficult for the buy-here, pay-here industry, CAR Financial Services continues to support dealers’ short and long term capital needs by maintaining a focus specific to the buy-here, pay-here marketplace using a comprehensive suite of services designed to support dealers through the infusion of capital.
Whether you are new to the buy-here, pay-here business or you are looking to expand your current buy-here, pay-here operations, CAR Financial Services can design a program to meet your needs. These programs include:
lease receivables
meet short term cash needs
and finance companies
industry, including a seamless
floorplan to retail program
here dealers using CAR’s capital to establish your portfolio.
CAR Financial has a proven track record
and can help you survive these difficult economic times by customizing a purchase/service program that meets your needs while providing quality service through a single dealer point of contact that is located near your dealership.
CAR Financial strives to understand your day to day business so that they can structure a program designed to meet your long term goals and objectives.
Whether purchasing a stream of payments, purchasing all or part of your accounts outright, or simply servicing your buy-here, pay-here portfolio, the trusted professionals at CAR Financial are interested in working with you to meet your dealership needs.
CAR Financial operates in 45 States and is continually evolving its programs to meet the ever changing needs the buyhere, pay-here market.
Interested in more information on CAR Financial Services’ programs and services?
Go to www.carfinancial.com or call 877-570-8857.
Autosave and E-Credit Express Products Add to Your Bottom Line
Autosave, the Original 5 year/100,000 Mile Warranty Company, has over 180 agents throughout the U.S. and Canada that represent and sell our industry leading programs and platforms to dealers.
Autosave has added 1- and 3-year warranty terms with additional coverage for air conditioning, electrical, seals and gaskets, which make a larger profit center for the dealer.
sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis.
Autosave’s sister company E-CreditExpress (www.ecreditexpress. com) has products that make all dealers red flag and OFAC compliant.
E-CreditExpress GUARANTEES electronic forms compliance in all 50 states with state specific e-forms
The competitive pricing structure of these warranty products, e-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market.
Claims payments are made electronically to the repair facility. All Autosave warranty programs include e-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.
that include all required initials and signatures – without the costly need for electronic pads or pens.
E-CreditExpress’s electronic forms are 100% compliant in every jurisdiction – with a million dollar guarantee! E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender – no more deals kicked back – INCREASE YOUR SALES IMMEDIATLEY!
Autosave is the industry leader in dealer sales rewards with the “Dealer Cash Back Program” where enrolled
Autosave supports our dealers in all facets of the industry with warranty product training, program training, claims and customer relations. Call 800-684-1175 for more information on these programs.
Capital and Customer Service Industry Professionals
All dealers know that the biggest hurdle to entry into the buy-here, pay-here industry is the need for capital.
Whether for the purchase of inventory, the financing of customers, or for operational cash flow, capital is number one on every dealers list.
While access to capital remains more difficult for the buy-here, pay-here industry, CAR Financial Services continues to support dealers’ short and long term capital needs by maintaining a focus specific to the buy-here, pay-here marketplace using a comprehensive suite of services designed to support dealers through the infusion of capital.
Whether you are new to the buy-here, pay-here business or you are looking to expand your current buy-here, pay-here operations, CAR Financial Services can design a program to meet your needs. These programs include:
lease receivables
meet short term cash needs
and finance companies
industry, including a seamless
floorplan to retail program
here dealers using CAR’s capital to establish your portfolio.
CAR Financial has a proven track record
and can help you survive these difficult economic times by customizing a purchase/service program that meets your needs while providing quality service through a single dealer point of contact that is located near your dealership.
CAR Financial strives to understand your day to day business so that they can structure a program designed to meet your long term goals and objectives.
Whether purchasing a stream of payments, purchasing all or part of your accounts outright, or simply servicing your buy-here, pay-here portfolio, the trusted professionals at CAR Financial are interested in working with you to meet your dealership needs.
CAR Financial operates in 45 States and is continually evolving its programs to meet the ever changing needs the buyhere, pay-here market.
Interested in more information on CAR Financial Services’ programs and services?
Go to www.carfinancial.com or call 877-570-8857.
Autosave and E-Credit Express Products Add to Your Bottom Line
Autosave, the Original 5 year/100,000 Mile Warranty Company, has over 180 agents throughout the U.S. and Canada that represent and sell our industry leading programs and platforms to dealers.
Autosave has added 1- and 3-year warranty terms with additional coverage for air conditioning, electrical, seals and gaskets, which make a larger profit center for the dealer.
sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis.
Autosave’s sister company E-CreditExpress (www.ecreditexpress. com) has products that make all dealers red flag and OFAC compliant.
E-CreditExpress GUARANTEES electronic forms compliance in all 50 states with state specific e-forms
The competitive pricing structure of these warranty products, e-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market.
Claims payments are made electronically to the repair facility. All Autosave warranty programs include e-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.
that include all required initials and signatures – without the costly need for electronic pads or pens.
E-CreditExpress’s electronic forms are 100% compliant in every jurisdiction – with a million dollar guarantee! E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender – no more deals kicked back – INCREASE YOUR SALES IMMEDIATELY!
Autosave is the industry leader in dealer sales rewards with the “Dealer Cash Back Program” where enrolled
Autosave supports our dealers in all facets of the industry with warranty product training, program training, claims and customer relations. Call 800-684-1175 for more information on these programs.
Grow Your Business
The SAFCo Way
Turn Your Customers’ Credit Into Funded Deals Now and Even More Down The Road!
SAFCo is a national leader in special finance because we do sub-prime differently. Consider our Credit Builder program – it’s an innovative way to grow your business today, and build your customers’ credit for even more business tomorrow.
Every deal you fund with SAFCo earns your dealership SAFCo Bucks. These can be redeemed for term extensions, rate buydowns and lower payoffs, dramatically improving your closing ratio.
Plus, since SAFCo works with your customers to rebuild their credit, we send them back to your dealership – and your dealership only – with more purchasing power than ever.
Call us today or visit us online to learn more about what SAFCo’s Credit Builder program can do to grow your business.
Now accepting applications from
In today’s dealership environment, solutions to issues are crucial and need to be compliance-driven. FEX DMS identifies the best technologies to effectively increase a dealership’s control and productivity. They continually ensure those technologies will work well into the future, allowing dealers to concentrate on producing revenue— not maintaining software.
FEX DMS is the state-of-the-industry used car dealer software solution— comprised of feature rich inventory management, sales, customer and lead tracking tools, along with powerful custom reporting and data exporting capabilities. The uniquely integrated and cross-platform compatible modules are each priced separately, accommodating both the small dealer or wholesaler—and the largest buyhere-pay-here dealer. Modules include: DMS, lender portal, BHPH with accounting, real time website management, and inventory syndication to paid and free listing sites.
When a dealer signs up, they have immediate access to the FEX DMS package. From there, the dealer has the freedom to add one of our other powerful modules: FEX BHPH, FEX Lenders and/or Accounting Integration.
FEX DMS also o f ers 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.
Dealers who switch to FEX DMS quickly discover the convenience of the first 100% Internet-based DMS on the market. There are no disks to install, no hardware to buy…all updates are made in real time. The platform makes it easy and intuitive to manage your dealership, not your software. Integration with well-known, Tier 1 forms vendors allows the dealer to print all required contracts, documents and forms to plain paper.
FEX DMS maintains the industry standard for collections management, inventory control and compliance. Since each module is tightly integrated, the queue technology extends inventory description and distribution to comprehensive portfolio management. The queue feature allows dealers to configure which reporting and data elements are important to review at a dashboard level, in real time.
MY FEX ACCOUNT extends the EPS payment functionality to allow customers the ability to make payments online in a secure environment. Customers can view and print receipts as well as review balances. The FEX DMS EPS solution is a full-service automated debit and credit system Originally Finance Express, the application connected lenders and dealers. The lender portal is still a component of the FEX DMS and is integrated with many lenders, including Route
One. The FEX DMS system is built to seamlessly interact with most web service applications, including CRM and service department management.
FEX DMS has a robust inventory management engine, including Internet Lead Management. Leads from Auto Boing and others are filtered directly through the management system, including follow-up leads and customer communications.
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.
FEX DMS users will never have to install any updates and is guaranteed to be using the latest version at all times. FEX DMS data is continuously archived eliminating any need for manual backups.
Key Features
month agreement
multiple locations, sales and receivables – online, real-time to quickly and accurately add and describe inventory
stickers with categorized technical specs and equipment
reports
sheets per applicant applications and receive instant notification via email or alert all incoming leads and sources you to establish login restrictions the system vehicles directly into system
taught by subject matter experts requires no additional hardware purchases.
FEX DMS is the perfect solution for Finance dealerships. Call FEX DMS
FEXDMS.com to discover feature rich inventory management, sales, customer and lead tracking tools, along with powerful reporting.
GoldStar GPS has long been the choice for dealers trying to lower their risks in subprime lending. More than a GPS tracking system, GoldStar GPS is a complete collateral management solution. And now, just in time for tax season, we’re introducing fexible new GoldStar GPS packages designed to ft your needs including:
• The industry’s highest performing Talon GPS tracking device — ready to ship now
• Gold Standard Service you’ve come to depend on and more
Take advantage of tax season risk-free with GoldStar GPS.
Schedule a free demo today at GoldStarGPS.com/gps-riskfree or call 1-866-655-8825
Spireon captures the Automotive – Buy Here Pay Here Finance and Specialty Solution A-list in M2M award! – 2014 Compass Intelligence Mobility Awards
Mitigate Your Risk this Tax Season with Collateral Management
With tax season quickly approaching, dealerships are busy building up inventory of quality used cars, and increasing staf as they prepare for the influx of business during tax season. However, industry trends show that an increasing number of car buyers are coming into dealerships with credit challenges — an after-e f ect of the economic recession, foreclosures, loss of jobs and homes, and bankruptcies.
Unfortunately, these folks can’t qualify for traditional auto loans.
To meet the demand, dealers and lenders are going increasingly deeper by ofering subprime auto loans — the deeper the loan, the higher the risk.
One way to meet the needs of creditchallenged buyers, while still protecting your investment, is by adding an automotive collateral management platform into the loan process.
Collateral management not only helps dealers and lenders mitigate risks — it enables them to ofer even more value add-on services.
GPS-based Collateral Management System (CMS): A Secure Strategy Collateral Management Systems (CMS) may be a new solution for many in the automotive finance industry. It presents long-term advantages for dealers and lenders who integrate CMS into their overall financial strategy, with successful results.
As its name implies, GPS-based CMS
uses global positioning system technology to improve the way lenders and their collection departments manage collateral.
GPS units embedded in vehicles capture information about that vehicle’s location, movement and status. collection managers and staf access this data to track and locate vehicle assets on-demand — allowing for quicker, more efcient and cost-efective recovery of assets should the need arise.
When the finance metrics begin to erode, their collateral recovery process is ready to go and their profits remain stable — even in a down-turn.
Dealers and lenders who have implemented a CMS have experienced a performance edge, even in today’s highly competitive automotive finance climate. Several dealers and lenders using CMS have experienced:
delinquencies
customers with lower credit customers with smaller down payments
of customer credit ratings
This translates into lower risk, fewer losses and lower costs with benefits for the customer as well.
An automotive collateral management platform, such as Spireon’s GoldStar GPS is more than a vehicle tracking system; it’s an award-winning platform servicing automotive lenders and fleet services.
In fact, Spireon was recently named Best in Class by Compass Intelligence for its automotive collateral managein Las Vegas.
GoldStar’s automotive collateral management platform solution provides real-time tracking of vehicle location and movement and hosts a range of powerful features and functionality that help automotive lenders manage their collateral with greater efciency, productivity and profitability.
This includes a robust suite of reports and exception-based alerts that instantly notify dealers and lenders the instant an event happens — i.e, a vehicle is driven o f the lot after business hours.
Dealers and lenders can easily access these tools using a computer, tablet or smartphone.
A key feature of GoldStar’s platform that customers find very useful is the Geo-Zone feature. A geographic boundary can be set up around a specific area, and then be alerted when a vehicle enters or leaves that boundary.
This feature is useful for seeing when any vehicle gets towed to an
impound lot.
With Geo-Zone, customers know about it sooner so they can recover the vehicle before accruing hefty fees. At the heart of GoldStar’s Automotive Collateral Management System is the 10th generation Talon tracking device — the industry’s best selling and highest performing. Talon features a host of industry-first innovations including a sleek profile and tamperresistant features; rugged design built to withstand harsh environmental conditions; simple installation; a resettable internal fuse; and extended battery life.
The collateral management system performance relies on ensuring proper installation, Spireon’s turnkey solution ofers full on site, certified installation services options as well.
GoldStar’s platform is available in diferent flexible packages, so automotive lenders can pick just the features and functionality they need and want. Don’t let tax season slip by without the added protection of collateral management as part of the loan approval process.
or visit GoldStarGPS.com
SUBPRIME LOANS REPRESENT OVER 33% OF VEHICLES SOLD TODAY.
How much of that very lucrative slice of the sales pie are you getting?
Go Financial has created a subprime lending program that puts you in control. It’s an end-to-end solution that provides up-front profit and future cash flow streams. And best of all, every loan is purchased non-recourse and there are absolutely no sign-up fees. Take the headaches out of making your subprime finance deals work. Sell more cars. Make more money.
Visit gofinancial.com/news for the whole story or call us at 888-GOFINANCIAL for a quick demo.
“FEX
Carstens, CPA SGC Accounting Houston, TX
Steven
NextGear Capital Embraces Technology
Technology has rapidly changed the face of automotive remarketing in recent years. With all the gizmos and gadgets available in the industry these days, it is hard to believe that only 12 years ago a dealer had to be physically present to purchase a vehicle at an auction. Today, they can buy from the comfort of their ofce or their home from anywhere in the world.
What is astonishing is how fast technology has changed the way dealers not only work but think as well. Due to the rise in usage of smartphones and tablets, dealers are becoming increasingly tech savvy. As a result, they want someone who not only understands the need for quick technology solutions, but embraces it as well.
No one has embraced this growing need like NextGear Capital, the floor plan financing company headquartered in Carmel, Ind. According to President Brian Geitner, technology has been a hallmark of the company from day one.
“We made the decision from the very beginning to be tech-oriented because we could foresee that was the direction the industry was heading,”
said Geitner. “Over the years, we have continually gone to our customers and asked ‘What is important to you?’ What we have found is that there has been an increased demand for faster, better technology.”
The tools that NextGear Capital has provided to its customers over the years, from document imaging of titles to a web portal for its dealers, has allowed it to stay on the cutting edge.
In more recent years, the company has developed a mobile app to provide its customers the ability to handle their account on the go.
Ten years ago, the thought of conducting business on one’s phone seemed far-fetched. Not so much anymore.
According to NextGear Capital, approximately 30 percent of their customers routinely use the NextGear Capital mobile app to manage their accounts.
“Technology advancements have made all of this possible,” stated Bryan Everly,
chief technology ofcer at NextGear Capital. “Five years ago, the most that dealers could do was make payments online. Now, they have the ability to buy cars, floor plan them, view their inventory, run custom reports and make payments, all conveniently right from their smartphone or tablet.”
The swift changes in the technology landscape have benefited the wholesale auction industry as well, with advancements that continue to improve bringing buyers and sellers closer from all over the country and the world.
This increase in technology solutions for auctions has fueled the success of many internet-based auction oferings.
These sales channels have grown by leaps and bounds and are living proof that online continues to show promise for the wholesale industry.
The retail side of the business is also recognizing growth online, with multiple success stories from Auto-
Trader.com and Cars.com to smaller channels across the landscape.
According to Geitner, NextGear Capital’s success can be attributed to the company’s entrepreneurial leadership.
“Our executive team has always maintained a start-up like mindset when it comes to exploring new ideas,” said Geitner. “That spirit of entrepreneurialism has allowed us to stay on top in technology because it is recognition that in order to compete for tomorrow, we have to prepare for it today.”
Looking ahead, NextGear Capital has formed an internal software development team. This team is tasked with exploring more in terms of cloud-based solutions, improving online tools and better reporting oferings to harness large amounts of data at a customer’s fingertips.
“As technology continues to evolve, we want to make sure we are staying ahead of the curve,” said Everly. “We are continually pushing the technological envelope and seeking ways to improve every aspect of the remarketing cycle for our customers and simplifying the process for all involved.”
Partner with us!
• Second to none in customer service
• No pre-verification without dealer approval
• No bait and switch on price
• No Limits to Portfolio size
• Will purchase all makes in models
• All terms considered
Finding Capital Difficult in Hard Times
By Doug Pitcher; Director of Sales United Acceptance, Inc.
The struggles in operating a buyhere, pay-here dealership continue to incease.
The most recent struggle has been an increase in delinquency and bad debt as the top tier of buy-here, payhere customers get loans with other dealerships through deep subprime point of sale companies.
Many of these customers are abandoning their cars and their notes. Approvals are getting as aggressive as they were back in ‘06 and ‘07 before the bust. After the bust, buy here pay here was strong once again.
Selling your notes can be an excellent strategy in getting capital, but not if you lose your customers in the process.
Here are a few of the most important things too look for when seeking a partner to sell your notes to:
1. A low buy back percentage. If an account turns out to be a buy back the chances of losing that customer increases substantially. If a customer has a problem you want to know before the purchase is completed. Some good ways to determine how many buy backs a company normally has is to ask other dealers that have done business with them. Many companies pride themselves on getting through the purchase process quickly.
If it increases your buy backs or depletes your customer base it’s not worth it. Partner with a company that is willing to spend their resources to make sure it is done right.
2. Partner with a company that can back up what they say. If they tell you they have excellent customer service, make sure they do. Do they record phone calls, what type of training do they have for their employees, visit their call center or speak to another dealer that has.
3. Make sure they have been in business a long time and have a goodBetter Business Bureau rating.
4. Make sure that they have a good transition process for your customers.
The customer’s account should be loaded before the purchase. They should already have an account number assigned. They should have a welcome letter that goes out right after the purchase.
These are just a few things to consider when selecting a good note buyer. Price is a factor, but if you lose your customers in the process, you can seldom make up for it.
Do yourself a favor and do a little due diligence before you sell your notes. It can be a very rewarding experience.
United Acceptance, Inc. provides all these services and more. For more information call 404-839-1227
Technology Vital in VSC Partner Selection
In the fast-paced auto sales industry, it’s critical that you partner with companies using technologies that add value to you, your staff and most importantly to your customers. Technology should play an important role when selecting a vehicle service contract provider.
In addition to financial strength with an exceptional history of paying claims, your VSC provider should offer access to the best e-contracting services available.
An e-contracting program needs to provide an intuitive, easy to use tool that allows you to get up and running quickly. You want to make sure the technology being deployed and utilized by your staff is efficient and simple to use.
E-contracting also makes it easier to rate and write contracts, allowing your F&I team to spend less time processing paperwork and more time focusing on your customers’ needs.
Another important aspect of e-contracting is the reporting tool. You need a tool that allows you to quickly view your service performance.
It’s no secret that technology plays a key role in streamlining processes, allowing you and your staff to be efficient and effective, making your customer’s
experience quick and uncomplicated. Working with vehicle service contract providers that offer e-contracting allows you and your team to spend less time worrying about reports, rating and writing service contracts and more time selling cars.
About GWC Warranty:
A leading provider of vehicle service contracts, GWC Warranty is committed to providing dealers superior products that are simple and straightforward to use along with valuable services that make it easier to do business with us.
GWC partners with industry leader OptionSoft Technologies to provide e-contracting services for our dealers. A trusted partner of over 20,000 dealers nationwide, to date GWC has paid over $300 million in claims, allowing you to give your customer the confidence they need when purchasing a vehicle.
To learn more about the benefits of GWC Warranty, visit us at www.GWCwarranty.com.
Make the Most of Tax Season
By George Fussell; CEO Southern Auto Finance Company
Used auto dealers, particularly those who serve a large number of creditchallenged customers, recognize tax season as one of the year’s great sales opportunities.
Many buyers treat their refunds like found money, and they want to put it to good use.
This is also often the only time of year when many shoppers have enough cash on hand to contribute towards a major purchase, so they are highly motivated to strike a deal.
Smart dealers don’t simply wait for these customers to come through their doors, and they recognize that there are some consistent needs that these shoppers express. By tailoring a sales presentation around these needs, dealers can increase the number of sales they close.
Southern Auto Finance Company (SAFCo), focuses solely on sub-prime financing, so we’ve seen some of the best operators in the business when it comes to taking advantage of tax time opportunities.
Here’s what we’ve learned:
Make it easy for those who need it easy – many shoppers with credit chal-
lenges do not have a sophisticated sense of the auto purchase process or financial matters in general.
They may be younger buyers who are just starting out, people who have made poor decisions with their money or people with a limited financial education.
Regardless of where they’re coming from, all of these prospects can be excellent customers, and it’s worth your while to court them – after all, a $2,000 profit from a sub-prime customer is worth just as much as a $2,000 profit from a luxury buyer.
To their own detriment, though, many dealers treat these buyers with a diminished degree of respect.
Show them that you value their business and you will be rewarded with a trusting, loyal customer who will return to you for future purchases even after their credit has been established or rehabilitated.
Find the Right Lender - Hand-inhand with this approach is the choice of the right lender – there are some finance providers who offer value-added services that allow you to leverage your sub-prime customers’ loyalty and turn it into repeat business.
What you want to look for is a company that goes beyond the
immediate sale and has in place programs that establish and continue a relationship with the customer through the life of the loan.
At SAFCo we like to say that we ‘borrow’ your customers and work with them to rebuild their credit.
While most lenders report poor repayment behavior to the credit bureaus, we report our customers’ good payment practices, and that makes a big diference in their credit scores.
Plus, we regularly send credit report cards to our customers – letting them know how they’re doing. These report cards also ofer tips to keep their credit clean.
Better still, once their credit has improved to the point that they’re eligible for a new purchase, we send them back to the original dealer – and the original dealer only – incentivized to make their next purchase.
We give dealers quarterly lists of former customers who have reached at least 30% of their original terms so they can reach out to them directly about new purchases.
Spif your customers – in addition to all the standard ofers that dealers make during tax time – bring in your refund check, show us that you filed, double your down payment, and so on
– lenders may have additional promotional opportunities that few dealers take advantage of or even know exist. These can ofer a dealership a real competitive advantage over another, and make a big di f erence when it comes to getting special finance customers approved.
SAFCo has introduced what we call our Credit Builder program – participating dealers earn credits for every contract we fund, and these credits can be put toward term extensions, rate buydowns and lower payofs. Those bonuses can be all it takes to turn a marginal buyer into an approved one, which in turn can be all it takes to turn a moderate month into a great one.
Of course, diferent lenders may have diferent incentives, so it pays to look around at what may be on ofer – just make sure that the company you work with makes it worth your business –and your customers’ business, too.
Dealers
GO Offers the Best of Both Worlds
Go Financial has created a unique subprime lending program that gives dealers the best of both worlds: up-front profit at the time the car is sold and a share of the payment stream over the life of the loan.
Over a third of today’s car buyers have subprime credit. Dealers can easily pick up incremental sales each month with the right opportunities to offer those customers.
By handling every step of the financing process from underwriting through collections, Go Dealer Partners have the ability to build a subprime portfolio without the headaches and heavy capital requirements that often stand in their way.
To be able to succeed at subprime finance, you have to be able to understand and predict risk, and know when to balance it with reward.
Go Financial created a proprietary grading system based on its experience financing hundreds of thousands of subprime loans.
That credit scoring model became the basis of the GO Portal – an online site that delivers approvals to all customers.
The Portal instantly updates advance rates as the dealer adjusts the APR, term, price and down payment to best meet their customer’s needs and the dealership’s profit goals.
After receiving the initial advance, each dealer’s loans are pooled together to create a unique portfolio, which GO services at their national call centers.
Dealers share in the future revenue from the pool as the payments are collected. What if a dealer doesn’t want to wait for the payments to be collected?
The dealer has the option to tap into pool equity early through GO’s exclusive Cash Out Now option, offering flexibility with instant liquidity once their pool is closed.
With a financing program that can approve all customers in an easy to use online Portal, GO is creating a pathway to selling more cars.
All loans are non-recourse and GO has no sign-up fees.
Go Financial is licensed in 44 states and currently enrolling franchise and independent dealers.
For a demonstration, call 888GO-Financial (888-463-4626) or visit www.gofinancial.com.
TRAX Auto Protection: A New Profit Center for Dealerships
PassTime has a new program that can save you time and money plus create a profit center for your dealership.
The TRAX Auto Protection system is built around PassTime’s TRAX device, an in-vehicle GPS designed to protect and recover stolen vehicles.
Unlike some systems, customers can utilize the TRAX Auto Protection system from the day they purchase the vehicle.
Customers can take advantage of:
• Low battery voltage monitoring
• Up to 6 simultaneous geo-fence boundaries
• Customizable Speed Alerts
• Real time alerts via email or text message
• Pinpoint GPS for vehicle recovery in the event of a theft.
Customers can use these great features on any of their vehicles with a TRAX system installed.
Monitoring vehicle battery voltage notifies users when it is time to replace their battery.
Parents of new drivers can set up speed alerts to notify them if the vehicle exceeds the specified MPH. Geo-fence boundaries can be set to text or email the customer if the vehicle enters or leaves the boundary.
This is great way to monitor the vehicle and keep track of driver usage. While some systems have little or no value unless
the vehicle is actually stolen, PassTime’s TRAX Auto Protection provides benefits from the day of purchase.
TRAX Auto Protection provides amazing benefits for the dealership too. Dealers can create an additional F& I profit center. Just as TRAX Auto Protection gives customers immediate benefits, dealerships can also utilize the devices.
You can use the TRAX system for lot-control and inventory management for floor planning. Keep track of test drives and inventory leaving your lot.
Use the GPS to locate a vehicle within your lot. Monitor loaner cars and shop vehicles.
The service alert feature within the device notify the dealership when the vehicle may need to come in for an oil change, etc. Dealer benefits for the TRAX Auto Protection system include:
• GPS-powered lot and inventory management
• F&I profit center
• Increased staff productivity
• Service alert features
• Monitor vehicles
The TRAX Auto Protection system from PassTime is a great new program that provides benefits to dealers and customers alike. To learn more about PassTime’s TRAX Auto Protection system, PassTime at 877-727-7846 or visit us at http://trax.passtimeusa.com
Tax Season Delay Affects Buy-Here, Pay-Here Dealers
Last year buy-here, pay-here dealers were affected when the IRS delayed income tax refunds – and it’s happening again. In 2012, $40 billion in refunds were paid out in January, and in 2013 zero refunds were paid out in January. 2014 is another year of zero refunds being paid out in January.
This time the IRS is blaming it on the 16-day government shutdown in October. The IRS started accepting federal income tax returns for individuals electronically on January 31 – which is about 10 days later than normal.
Buy-here, pay-here dealers will expect to start seeing down payment money in the form of tax returns by mid to late February.
Not only do buy-here, pay-here dealers utilize tax refunds for down payments – but more and more buy-here, payhere dealers are offering incentives to customers to use their refunds to catch up on payments and even pay their accounts in advance. Tax season is to buy-here, pay-here dealers as Christmas is to the retail industry.
This is often the only time of the year where buy-here, pay-here customers will have disposable cash for a down payment on a vehicle.
With this delay, many dealers are
experiencing unexpected cash fow issues. Floor plan curtailments and other fxed expenses are hitting dealers’ bank accounts – while the expected tax time sales are not there yet.
In addition, collections are always a little diffcult around the holidays, further compounding a dealer’s cash fow problems.
Small Dealers Assistance (SDA) can help dealers experiencing this cash fow crunch. Dealers can utilize their accounts receivable to raise the capital from SDA to make the most of this years’ tax season.
SDA purchases accounts and allows the dealers to continue collecting and building their loyal customer base.
Many dealers across the country have utilized SDA’s Income Stream Program to help make the most of their tax season.
For over 23 years SDA has been a trusted capital source for hundreds of dealers across the country. These dealers rely on SDA not only during tax season but year round for their capital needs. Join the SDA family of dealers, call 800-467-5172 or visit www.sdainc.net.
Maximize the Value of Your CRM
By Howard Leavitt, AutoRaptor CRM
Each segment of the automobile retail industry – franchise dealers, independent dealers, and buy-here, pay-here dealers – has unique operating practices and processes.
While the systems and culture may vary, the fundamental practice of building customer relationships remains the same. When it comes to most effectively utilizing your dealership’s most valuable asset – your customers – dealers across the board face the same challenges: how do we effectively and efficiently maintain all the information we have about our customers, and what is the best way to then use that information to help us sell more cars?
Regardless of what size dealership you operate, having a good system for managing your customer data for continued follow-up and relationship building is important.
AutoRaptor CRM is an easy-to-use application to manage leads and keep your sales team on track with daily work plans and assigned follow-up tasks.
AutoRaptor CRM gives you the tools you need to manage data efficiently so you can respond quickly to all new leads, and have automated action plans in place for aggressive follow-up with a personal touch.
Mobile capabilities allow you to respond to incoming leads on any web-enabled device or to assign leads to a sales person in seconds. With customized work
plans, individual dashboards, lead source reporting, and scheduling, AutoRaptor CRM gets you closer to winning the deal each step of the way.
To maximize the value of a digital CRM you must setup some basic rules.
Collection of all contact information: name, address, phone, and email address are not optional
interested vehicle information and trade information. This is valuable to you for long-term follow up even if you don’t make the sale
Compile detailed notes, remembering that details are often what will help you win the deal
specific follow-up steps
AutoRaptor CRM gives you the power to look ahead to finding more business and winning more deals. Getting the most out of every prospect, every new internet lead, and every customer that you touch is the most efficient way to boost profits.
Work smarter and add value to your sales process and see how much your business can grow!
Let us show you how AutoRaptor CRM can help you convert more leads, sell more cars, and boost profits.
Get a free business analysis today! To request a demo visit www.autoraptor.com or call (888) 421-6533.
2014: The Year of Leasing
In the buy-here, pay-here industry there is a repeat cycle of loss. Loss for the customers, the dealers, and the finance companies. The typical loss process goes like this:
Industry report, the average default rate for buy-here, pay-here has reached
In today’s credit marketplace, financing is available for almost everyone. Sales are at record levels and it is a great time to be a dealer. Those that are having the greatest success have well stocked lots.
lose on average $4,000 for each repossession. credibility.
the insanity of losing money on over 2014 is the year of USED CAR LEASING! No repossessions – leverage over delinquencies – more profit – tax advantages – turnkey business model. To learn more about used car leasing and the many benefits it can bring to your dealership, please contact
To meet this demand, Vehicle Acceptance is expanding its Floorplan lending product to more Independent used car dealers thru-out the United States. For 25 years, VAC has supported the Buy-Here-Pay-Here and Independent used car dealership with capital and exceptional service.
Accepted at auctions nationwide, VAC provides same-day funding and local service thru their seven regional
ofces. There are many advantages to doing business with VAC- they are competitively priced, their staf is easy to contact, and they have the experience to help any type of Independent dealer. Vehicle Acceptance is truly a onestop shop for dealer’s financing needs. Inventory financing, note servicing and receivable factoring are valuable tools to help any dealer manage their cash flow and get more cars on their lot. There is still time to get a floorplan in place and benefit from this year’s tax selling season which is looking very good for Independent dealers.
Learn more at VACorp.com/UCN or call 1-888-573-4248 for more information.
Focused on the Dealer
Missed Payments: When GPS Is Not Enough
DEALER SUPPLY
SSW Dealer Supply carries a wide range of products including (but not limited to) die cut window numbers, message flags, dealer signage and service department supplies.
We are located in Bridgeton, Missouri where we feature a showroom full of our products. Showroom hours are Monday – Friday 7:00am-5:30pm and Saturday 8:00am-12:00pm.
Our warehouse is located at the same place so your order can be filled and received within a few minutes.
We ship all merchandise ordered by 3:00pm CST the same day.
We also ofer a vast variety of custom products. SSW Dealer Supply maintains a sharp focus on the always growing, ever changing auto dealership industry.
Please give any of our friendly customer service representatives a call at 800-269-9704 or visit us online at www.sswdealersupply.com.
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
