April 2010

Cover Stories

- 3 ratings

New Product Roll Out: AutoZoom Predictive Underwriting System Updated - Must Read

Peter Salinas - page 16

If there’s one word regularly associated with the buy here-pay here business, it’s “risk.” After all, dealers typically finance vehicles for customers who have a history of not fulfilling their financial obligations. Delinquencies and repossessions are the two key factors with which all buy here-pay here dealers grapple daily while attempting to master underwriting processes. Dealers know they will repossess between 20-60 percent of the vehicles they sell, they just don’t know which ones or more importantly the timing of each repossession.

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- 3 ratings

Buy Here-Pay Here Gains Unwanted National Attention - Must Read

Peter Salinas - page 28

The buy here-pay here industry garnered significant international attention in mid-Feburary when a disgruntled ex-employee of Texas Auto Center in Austin, Texas allegedly used the password of a co-worker to gain access to the dealership’s computer system and shut-down nearly 100 vehicles.

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Our Point of View

- 1 rating

Take Heed: Damage Done By Disgruntled ex-Worker Goes Global - Must Read

Peter Salinas - page 8

Last month an apparently disgruntled former employee of an Austin, Texas, buy here-pay here dealership accessed a company computer and disabled nearly a 100 vehicles, ordered more than $100,000 worth of GPS/starter-interrupt devices and generally unleashed havoc on that central Texas city over a long weekend.

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Corner Office

- 1 rating

Armed with Information: Know Your Enemy and Know Your Self ... - Featured

Chris Leedom - page 4

“If you know the enemy and know your self, you need not fear the result of a hundred battles.”

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Financial Insights

- 2 ratings

The Past Doesn’t Predict the Future - Featured

Dr James Garvin - page 14

Benchmarks are odd things. On one hand they help us put targets out there, goals, objectives that we think are important to reach. On the other hand, benchmarks tend to be extensions of our historical past – because this happened last year, this is what will happen this year. Our tendency is to gravitate towards known comfort levels, stay very much inside boxes and boundaries we’re familiar with and not to get too far from the shore.

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Managerial Matters

- 3 ratings

Special Fi 2.0: It’s Time to Reboot the Department - Must Read

A.J. Ager - page 18

Our extra six weeks of Special Finance Winter is just about over. There are lenders starting to peak out of the groundhog holes. I have been reading for months that Special Finance is finally back and the smoke has cleared. I argue that Special Finance is not back the way we knew it. Instead we have a system where if we want to sell our challenged customers cars we have to reboot our departments. Whether you are trying to restart a program, increase a failing program, or just trying to get yourself to the next level, here are some things you should look into.

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Buy Here - Pay Here

- 5 ratings

Industry Benchmarks: Becoming a Benchmark Dealer in Three Easy Steps - Must Read

Chuck Bonanno - page 6

As I was reviewing our 2010 Buy Here-Pay Here Industry Benchmarks, it struck that achieving those results is the ultimate goal of a dealer Twenty Group membership. The best way to know how you are doing is to compare yourself to these industry benchmarks. These benchmark numbers represent the results of the best dealers in the industry. It only takes three steps to become a benchmark dealer. But, before I discuss the three steps to becoming a benchmark dealer, I have to ask you if you are satisfied with your performance. If you are, then you do not need to read further. But if you are not satisfied, please read on and I can show you how to become a benchmark dealer in our industry. It’s really easy. All it takes is time, energy and a good road map.

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Industry Articles

- 1 rating

AutoTec Launches anti-Curbstoning Initiative

Industry Releases - page 25

BIRMINGHAM, Ala. – AutoTec, the company behind

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Vendor Spotlight

- 2 ratings

Dealers Struggle to Locate Capital, Inventory

Industry Releases - page 30

All indications are that 2010 should be a solid year for those in the BHPH industry. That does not mean there won’t be challenges ahead for those dealers. The main challenges dealers need to overcome are maintaining adequate inventory and a solid source of capital.

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- 1 rating

Passtime Offers Security Protection Advice

Industry Releases - page 30

PassTime believes ONE of the most important things we do is protect our customer’s data.

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- 1 rating

Premier Performance Offers Net Profit Improvement

Jay Prassel - page 32

Dealers contact us for several reasons; some are making money, but want to improve overall profitability. Others are losing money and realize that they and their management team need a game plan.

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- 1 rating

Security Auto Loans: Subprime Lending and Much More

Industry Releases - page 32

Everyday customers walk out of auto dealerships without purchasing a vehicle. Why? Because most dealerships lack the ability to help customers who have seriously negative credit.

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- 1 rating

Advice on Securing Capital from CAR Financial

Industry Releases - page 34

Buy here-pay here financing is perceived as one of the most risky investments by major banks and rediscount lending institutions. There is a perception in the marketplace that by avoiding the direct-dealer component of this industry, that a lender is somehow insulated from the reputation risk that is commonly associated with the used car sales process. Combine this with the recent turmoil in the capital lending markets, and it is no surprise that dealers and smaller finance companies alike are having issues with finding capital to manage their operations and support growth. Dealers who are fortunate enough to find capital are seeing lower advance rates, higher audit fees, custodian requirements, etc.

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- 2 ratings

Online Payment System a Requirement, Not a Luxury

Allen Dobbins - page 34

Imagine walking to your office every morning, turning on your computer and noticing that money has been flowing into your dealership during the night. Are you smiling? Hold that thought ...

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- 1 rating

CalAmp Systems Improve Profits, Reduce Risks

Industry Releases - page 36

With today’s economy stretching consumers to the default point, BHPH dealers and auto finance companies need better ways to protect their investments. One method that has proven effective in reducing delinquencies and the costs for loan collection and asset recovery combines automated payment reminders, around-the-clock GPS satellite tracking, starter-disable, and Internet monitoring/control of assets.

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Guest Columnist

- 6 ratings

Open Recalls: How to Track Unrepaired Recalled Vehicles - Featured

Larry Gamache - page 26

Manufacturer recalls are a common occurrence, with hundreds of recalls issued every year affecting millions of cars. In fact, over 10 million cars were recalled in 2008 alone. The problem we need to be concerned about is the sheer number of cars with open recalls that go unfixed by their owners – roughly a third or more of all recalled units. Millions of these cars are bought and sold every day.

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- 1 rating

Web Marketing: What to Consider When Bringing in a Specialist - Must Read

Staci Striegnitz - page 38

The Web is growing and car dealers are taking notice of opportunities to grow their business with the Web. In the past several months I’ve had several dealers asking me about my job, and how they too can drive Internet sales from their dealership’s Web site. The Web continues to bring in new customers, yet your time for building your Web campaign is limited. If you are facing the same dilemma and considering hiring, below are some considerations that I hope will help set apart the right candidate for your dealership’s Web Specialist.

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Hudson Cook, LLP

- 2 ratings

Repo Madness: Not If You Look Closely Enough - Must Read

Thomas Hudson - page 22

There’s an organization in Washington, D.C. called “Public Citizen.” Every once in awhile, Public Citizen will issue a “study” purporting to show how consumers are mistreated by businesses. One such study in the last few years dealt with car dealership F&I practices. Titled “Rip-off Nation,” it was based (as are many such consumer advocate “studies”) on anecdotes. A careful, objective reading of the “study” showed that the number of bad acts by dealers constituted an infinitesimally small percentage of car sale and financing transactions across the country.

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Compliance Corner

- 3 ratings

Fun Times and Furnishers: New Compliance Deadline Arrives July 1 - Featured

Emily Beck - page 24

Summertime is so close, you can almost taste it. You’ll get out the popcorn machine. You’ll roll out the helium tanks. And, what the heck—you’ll fill up that dunk tank (after all, that GSM of yours has got it comin’ and you’ve been practicing).

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Learn to Lead

- 4 ratings

Personal Development: How to Increase the Power of Your People - Featured

Dave Anderson - page 20

There are people in every workplace who have made an unconscious decision to be powerless. They are so distracted by external conditions, consumed with blame and loaded with well-rehearsed excuses to explain away their lack of greater success that they have transformed themselves from high-potential human beings to walking, talking victims.

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Finance and Insurance

- 1 rating

Westlake Unveils Automotive Portfolio Purchasing Services

Industry Releases - page 23

LOS ANGELES — Westlake Financial Services, the national indirect auto finance company, has announced the formation of a new division which will specialize in portfolio acquisition services.

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