20/Twenty Vision: Gene Koury

This month’s featured dealership is Gene Koury Auto Sales in Leesville, La. Gene Koury is the president of the LLC and the dealer principal. He is a long-standing Twenty Group member who owns and runs the company with his two sons Mark and Matt. Gene started his business 38 years ago in October 1968, and has grown it to become a successful and thriving buy here-pay here business that has more than 600 active accounts with less than 4 percent charge offs. The dealership sells more than 35 vehicles per month. Gene has also spun off a successful consumer loan company from his original concept by staying close to the action, making sound credit decisions and really understanding his customers. He is as passionate for the business as he was 40 years ago and still a true student of the profession. The company is now expanding retail operations to include a special finance department and Gene has just joined his second Twenty Group. He is a down home straight shooter.

DBJ: Gene, you’ve been in business for 38 years now in a small town, what is your secret to success?

Koury: We’ve always treated our customers right. Our goal is to keep them in the car, so we make sure to put them in the right car with the right payments and when they have a problem, I work with them. We’re in a small town and the relationship is everything. We treat them like we’d want to be treated. I want them to feel like they got a good deal, good for both of us.

DBJ: You do buy here-pay here right! Your charge offs are less than 4 percent. How do you keep your customers paying?

Koury: Well, first, you can judge what he’s going to do by what he’s done. We take a close look at his credit. We put him in a good car and make sure he can afford the payment. His net income is very important. We also want to make sure he’s a stable fella. Then, when he has a problem, I talk to him and work with him. I don’t want the car back. If you treat people right, they usually do the right thing.

DBJ: You stayed with it for a lot of years. You must enjoy it. Why are you a car dealer?

Koury: I love it! If the Good Lord ever created a happy man, you’re looking at him. I’m in early and out late. I just love the business. There’s this one family that’s been a customer of mine since 1970. I bet I’ve sold that family more than 200 cars. I’ve sold three generations of family members that includes aunts, uncles and cousins. This is who I am.

DBJ: How many employees do you have in the company?

Koury: Well my wife runs the checkbook. We’ve been married 41 years and she keeps all that straight. My sons Mark, the oldest, and Matt wear all the hats for sales, finance and management. We have two techs and two porters.

DBJ: What is your No. 1 headache with this business, the thing that keeps you up at night?

Koury: Personnel! People have to be off nowadays, all the time, even when we’re busy. People are great, but it’s the work ethic. They just don’t want to work as hard. Maybe it’s just me…

DBJ: What is your biggest obstacle as a car dealer.

Koury: Customers expect a lot more today. They’re harder to please and expect the same car as an “A” credit customer. They just don’t want what they can afford. When I started you could buy a good car for $500 and sell it for $1,995. I still remember the payment. It was $36 to $49 per week. That scenario just doesn’t work today. The ACV of our cars is about $5,500 on average and that’s expensive. But we have less problems, and I just like to sell a good car. We sell our cars from $8,995 to $10,995.

DBJ: What is your biggest success story as a business owner?

Koury: I guess it’s ongoing improvement. We’ve had our highs and lows like everybody. One time we were the dealer of the year for the Louisiana IADA.

DBJ: What advice would you give to other car dealers?

Koury: This is a “full-time, give it all ya got business!” It’s going to take time and a lot of hard work. It’s not easy, so you better love the business. And if you’re going to do buy here-pay here, you better know how to collect your money. Because at the end of the day, it’s not about how many cars you sold. It’s about the amount of money you collected.

DBJ: What is your biggest regret in business?

Koury: I didn’t get my head screwed on straight until about 20 years ago. I wasted a lot of time that I can’t get back. I’d guess you can call me a late bloomer. But, like my wife says, men don’t get any sense until they’re 40.

DBJ: What is your five-year vision for Koury Auto Sales?

Koury: I want to add about 25 sales per month with a special finance department and maintain our buy here-pay here business. I want to work as long as I can. You see, work is my hobby and my hobby is my work. I get my first social security check next month, and I have no plans to quit working. I love the business and I love working with my boys.

DBJ: You are an experienced and seasoned car dealer. Will you share your thoughts on the Twenty Group with us?

Koury: When I first joined up, I thought I was doing a pretty good job. I was amazed at how much the group makes you better. You look at every aspect and really focus on profit and efficiency. Then there are the guys, sharing the highs and lows and all the stories. It’s been a really good experience for my boys and I.