Actions to define the right risks and rewards

Our series continues now that we’ve identified “eight risk questions that might keep you up at night,” as well as how can we better identify risk as a buy-here, pay-here dealership.

An important aspect of lending is not only which accounts to watch but how to monitor them and develop a well-defined proactive workflow strategy.

Many investors use a risk/reward ratio to compare expected returns of an investment to the amount of risk undertaken to capture these returns.

Fundamentally, the concept is the same in consumer finance. How much risk is acceptable in order to realize a certain level of reward? Securitization lending is predicated on assessing risk. In theory securitizations permit lenders to accept more known business risk. There is a premium associated with higher risk factors. Facilitating this shift are more robust risk assessment models which provide analytical overview for those willing to accept elevated risk within a portfolio.

Examples are plentiful with respect to insurance industry and its approach to connecting aspects of risk to individual insurance policies.

As recently reported in The Economist: “Michal Kosinski of Stanford University and colleagues at Cambridge University recently found that computers which are fed a person’s Facebook ‘likes’ are better than a human analyst at predicting whether they smoke or take drugs. Such prying is just the beginning: Insurers speak with straight faces about a time when sensors in customers’ homes will alert plumbers to weak pipes before they burst, and glucose meters in contact lenses will keep a record of how healthily they are eating.”

Data mining and monitoring not only allow insurers to price policies more accurately, but also enable them to modify customers’ behavior. “I think of us as Big Mother,” says Brian Vannoni of Guidewire, a firm that analyses data for insurers.

Within the lending community measuring risk reward has similar yet different characteristics. Essentially, lenders from all segments of business want to understand what the elements of risk are associated with a particular decision to extend credit. Basic ground rules still apply within that process.

Extending credit means evaluating the 5 C’ which still apply:

The five C's of credit is a system used by lenders to gauge the creditworthiness of potential borrowers. The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default. The five C's of credit are character, capacity, capital, collateral and conditions. The difference today is that a review of a potential borrower with respect to the five C’s is analytically compiled and is light years more predictable than what it was before  using alternative data. 

Risk reward analysis in consumer credit portfolios attempt to quantify elements of risk associated with the most likely outcome of a consumer behavior. The coordinated outcome of using analytical scoring models to approve or decline credit is first step. Having insight to the likelihood an account will default permits a lender to prepare for such an outcome.

The obvious next question is once approved which account represents the greatest risk of loss. If identified sooner can the behavior be modified to alter the projected course of events i.e. charge-off. But what if we could identify not only the individual element of risk but the degree of associated risk?

Specifically, as we discussed previously, identification of risk through the approval process permits an analytical segmentation of accounts which are stratified to the degree of severity. Thirty day delinquency cured with normal treatment strategies is much less troublesome than 90-day delinquency that is non- responsive.

If we could profile behavior before it occurs just as Mr. Kosinski at Stanford accomplished by predicting a certain behavior before it happens then we could use data segmentation to predict a financial loss to the institution?

Essentially, in a generic sense a correlation analysis provides a distribution of scores where above a certain score the applicant is approved and below it is declined. When approved at a certain scoring band there is correlated loss rate. If the score is raised the loss rate should decline. If the rate is lowered expected losses would increase. That is in theory.

The question is how frequently should these scores be recalibrated?

How often are they analyzed and compared to expected value models.  And finally, are embedded scores working as projected?

Most companies use outside consultants to confirm those questions. Why bring engage consultants? Prevailing mindset is to ensure independent assessment and to minimize any unintended internal bias.

Greg Shelton is president at Partners Consulting, a management consulting firm specializing in operational assessments, workflow reviews and strategic planning for management teams in the accounts receivable management industry. Maria Singson is president and chief executive officer of, which offers risk and marketing analytics to help companies target profitable segments mitigate risks. Shelton can be reached at (678) 575-1136 or Singson can be reached at or (908) 499-4037.

2 ways tighter credit helped Car-Mart

Along with elaborating a bit about his upcoming retirement, America’s Car-Mart chief executive officer William “Hank” Henderson described how underwriting tightening in other areas of the auto-finance market is benefitting the chain of buy-here, pay-here dealerships.

The market change is improving not only the caliber of customer Car-Mart saw during the first quarter of its 2018 fiscal year that ended on July 31, but also the quality of vehicles the company is able to stock at its 140 stores.

“We’re seeing some customers circle back,” Henderson said during Car-Mart’s quarterly conference call with investors. “They’ve been over there and tried the other side, and now they’re back. And I think that’s evident and actually our sales for peak customers is maybe at an all-time high. It’s very high during this first quarter.

“And then also I think we’re, as we mentioned, doing a little better job with our inventory, seeing some improvements there. And so I think all those things combined help push up the store productivity,” he continued.

Car-Mart posted increased sales volume productivity with 28.2 retail units sold per store per month, up from 27.9 for the prior year quarter.

All told, the company’s stores retailed 11,837 vehicles during the quarter with an average retail price of $10,386.

“We are pleased with our continuing efforts to improve the quality of our inventory and improve inventory turns and efficiencies, and these efforts are having a positive effect and will continue to benefit us as we move forward,” Car-Mart president Jeff Williams said.

“We will remain aggressive with our inventory management, but we will ensure that we have a good selection of quality cars, trucks and SUVs in our dealerships to attract our target customer,” Williams continued.

“As credit gets a little tighter in the markets above us, the flow of product then in our market becomes much better,” he went on to say. “We’ve been in a period for several years now where the flow into our markets has been stuck. It's maybe the new-car dealerships because that financing has been available.

“So as it tightens up, we get a better flow of products, and we get to start cherry-picking a little bit,” Williams added.

A few other metrics of note from Car-Mart’s Q1 performance included:

—Gross profit margin percentage decreased to 41.4 percent from 41.8 percent for the prior-year quarter.

—Net charge-offs as a percent of average finance receivables stood at 6.4 percent, up from 6.2 percent for prior-year quarter.

—Accounts more than 30 days past due increased to 4.6 percent of the portfolio, up from 4.4 percent at close of the previous year’s quarter.

—Provision for credit losses came in at 26.6 percent of sales versus 25.7 percent for prior-year quarter.

More on executive transition

As BHPH Report previously published, Car-Mart also announced Henderson will retire as CEO at the end of the year with Williams replacing him. Henderson discussed the move again during the conference call.

“It has been an incredible fantastic experience to be part of such a great team of people to help and build and grow this company into what is today, and I feel truly blessed to have had this opportunity,” Henderson said.

“Tremendous amount of gratitude to the hard working dedicated people with such high characters that I have been so very fortunate to work with throughout this time,” he continued. “We’ve been through some great times, and we’ve been through some very challenging times all along the way.

“They fought hard to preserve our company culture, and I cannot even begin to ever thank them all enough for their tireless efforts,” Henderson went on to say.

An analyst asked about who might take Williams’ position as chief financial officer and whether it will be a candidate from within the company or if Car-Mart might choose someone from outside its current executive ranks.

“We are in the process, and we’ll have some news for you guys just as soon as we can,” Williams said.

Henderson stepping away as Car-Mart’s CEO at year's end

While sharing results from the first quarter of its 2018 fiscal year, America’s Car-Mart announced a major change in leadership will be coming at the end of the calendar year.

Car-Mart said in a news release posted late on Thursday that current chief executive officer William “Hank” Henderson would be moving into a role as CEO emeritus and board member of the 140-store chain of buy-here, pay-here dealerships. The change will come on Dec. 31.

Rising into the CEO post will be Jeff Williams, who has been Car-Mart’s president since last March.

“I have been with the company for over 30 years now and could not be more proud of what we have built and the position the company is in to be able to continue to prosper into the future,” Henderson said in the news release. “We have a great team in place, and the time is right for me to take a step back from the day-to-day operations.”

Henderson will continue to be involved in Car-Mart’s activities as an adviser to Williams and senior management.

“I am greatly looking forward to contributing in my new capacity, and I am very excited about the future of our business and the opportunities that lay before us,” he said.

Williams has served Car-Mart in a variety of roles, including chief financial officer, vice president finance and secretary of the company since coming aboard in October 2005.

Williams also is a certified public accountant. Prior to joining Car-Mart, his experience included approximately seven years in public accounting with Arthur Andersen & Co. and Coopers and Lybrand in Tulsa, Okla., and Dallas.

Williams’ experience also includes approximately five years as chief financial officer and vice president of operations of Wynco, a nationwide distributor of animal health products.

“Jeff has been with the company for 12 years now and has proven himself very capable of leading our efforts,” Henderson said.

Williams added, “I, too, am very excited about our future and look forward to helping the company grow as we support our customers by providing a higher level of service than competitive offerings.”

Editor’s note: More details about Car-Mart’s results and executive transition will be coming in a future story from BHPH Report.

Advice for identifying risk as you build your portfolio

In the current issue of BHPH Report, we discussed what we classified as the “eight risk questions that might keep you up at night.” We spelled out each of those questions here.

Well, now let’s try to provide you some answers to those difficult questions so you can rest better. Let’s begin with how can we better identify risk as a buy-here, pay-here dealership?

Every approval model has, as a way of disclaimer, an accuracy percentage attached to it. The likelihood of someone going bad is known before approval, depending on which segment of the approval model they belong. If one decides to dip into the fifth decile of an approval model, which has 35 percent bad rate, versus only the second decile, which has only 10 percent expected bads, they will have also done the profiling to differentiate the bads in the fifth decile.

Therefore, if operators accept them into their books, the dealerships also have to be ready to manage them so that they can act as soon as the account starts to show signs of future misbehavior. This is a passive strategy.

An active strategy goes even further as to “shape” or train the right behaviors of those likely to be bad. Usually, this is the perfect hand off of the accounts from the approval model to the portfolio management models.

Once approved, knowing which accounts under management would most likely go “bad” is critical to managing the good. Early detection warrants immediate action.

What an advantage it would be to stand at the door of credit approval as hundreds of new accounts are scored and on-boarded.

As an account passes through various phases such as approval, activation and management, some go delinquent while others continue to repo or charge-off. From simply an origination score perspective, approvals have a known risk factor. Many origination scores predict the percentage of loss associated with a specific approval score band.

What we see however is fewer and fewer operators are assessing continued correlation between score bands and loss rates. Additionally, we also have to be prepared to ratchet up intensity levels of a work treatment strategy as accounts age based on its risk score.

Not only will we be able to assess portfolio quality this way but also a much more strategic approach to capacity and staffing.

Early risk modeling and performance scoring was a function of past historical payment experience, with some help from credit reporting data. Typically good data for new account approval but what we are talking to here is:

—Analyzing projected risk


—Course adjustments based on risk stratification.

Clustering known elements of risk attributes to deploy pre-established workflow strategies is critical to diverting known high loss potential accounts into unique queues so that they are worked with more efficiency, tracked by results and ultimately provide retrospective feedback as part of the risk artificial intelligence models.

Greg Shelton is president at Partners Consulting, a management consulting firm specializing in operational assessments, workflow reviews and strategic planning for management teams in the accounts receivable management industry. Maria Singson is president and chief executive officer of, which offers risk and marketing analytics to help companies target profitable segments mitigate risks. Shelton can be reached at (678) 575-1136 or Singson can be reached at or (908) 499-4037.

5 findings from FactorTrust’s latest auto index

On Tuesday, FactorTrust released the most recent research findings in its series of underbanked indices, the Underbanked Index – Auto, which is designed to provide insights into the earning and living trends of credit-challenged consumers seeking a vehicle.

Such insights can help auto financing companies to better know their customers and make more informed decisions on extending credit.

The Underbanked Index – Auto identified at least five key insights of credit-challenged consumers buying and financing a vehicle, including:

1. Age and gender

Average age – applicant: 38
Average age – borrower: 39
Average loan amount trends up to age 46 ($2,260)
Males and females: 50 percent/50 percent (applicants) and 55 percent/45 percent (borrowers)

2. Income

Applicant: $2,926/month ($35,112 annualized)
Borrowers: $3,000/month ($36,000 annualized)
National average comparison: Fifty percent of American workers make less than $30,000 per year, according to the Social Security Administration.

3. Employment

Nearly 60 percent are employed in two primary areas: retail (41 percent) and quick serve restaurants (16 percent).
The retail employment sector has historically been the largest employer in both the non-prime auto and consumer finance segments.

4. Education

Forty-four percent who graduated high school went on to earn a bachelor’s degree or higher
Fifty-five percent hold only a high school diploma
One percent has attended a vocational or technical school or program
National average comparison: Forty percent of the U.S. population holds a high school diploma, according to 2016 U.S. Census Bureau information. 

5. Housing

Length of residence: 2 years
National average comparison: The average American lives in one residence for 11 to 13 years, according to the National Association of Home Builders)

“This index, specific to the auto industry, analyzes the proprietary performance and behavioral data we have on non-prime consumers that auto financing companies can’t get from the Big 3 bureaus,” said FactorTrust chief executive officer Greg Rable. “By pairing this data with traditional data, these companies can see the complete credit profile and creditworthiness of consumers.”

Data is based on analysis from FactorTrust’s proprietary database of 250 million records related to underbanked consumers collected by the company each quarter. The findings of the index assist financial institutions, associations, analysts and media interested in tracking, benchmarking or understanding the needs of underbanked consumers.

AGORA’s mission to revolutionize bulk purchasing

Steve Burke spent more than three decades making bulk portfolio purchases during his career that includes leadership positions with Center Street Finance, SFG Finance, Regional Acceptance and FSB Financial. Burke highlighted how technology changed the auto finance business with solutions such as sophisticated credit decisioning models, improved collection tools and GPS devices.

“However, one thing that seems stuck in time and never changed was the way dealers and finance companies sold their loans in bulk in the secondary market,” Burke said.

As a result, Burke leveraged that industry experience with a highly successful Silicon Valley private equity and venture capital investment fund to create AGORA; what he describes as “a true marketplace for buyers and sellers of auto loans.”

AGORA officially opened for business back in April. Along with support from the technology sector, the company also landed partnerships with a quartet of industry-leading loan brokers, generated more $300 million of loans listed and collected hundreds of registered users.

“Before AGORA, businesses relied on brokers and internal sales people/advertising to put buyers and sellers together,” said Burke, who is AGORA’s founder and chief executive officer. “Though I ran businesses that were the largest and most active buyers of bulk pools of loans, I felt constrained and frustrated that we were not seeing all that was potentially available in the market.  

“In addition, over the years, through the thousands of purchase and sale transactions my businesses executed with a wide range of sellers — from small mom and pop dealers to large, national finance companies and banks. Rarely were any two alike,” he continued. “The biggest friction point (for both the buyer and the seller) was the inability to transmit and receive loan-level data in a consistent, secure and reliable format.

That’s where AGORA steps in with its technological platform that is meant to read the portfolio offering the same way; whether it’s $1 million or $100 million. The platform is designed to allow buyers and sellers to publish and exchange loan data directly in an efficient and secure environment without the need of intermediaries or brokers.

“The single biggest hurdle has been ensuring we develop AGORA in a manner such that it remains agnostic to all the different dealer management systems and loan servicing systems that are currently in use,” Burke said. “It would have been relatively simple to design a system that maps on a one-to-one basis with just a single system — to operate almost as a plug-in to existing system. 

“While that would great for those users of that single DMS, it would leave the rest of the industry out in the cold,” he continued. “What’s truly made AGORA transformative is the massive amount IP we have invested in the front end to position AGORA as a common carrier platform for the industry rather than a feature only to be enjoyed by a select few.”

And more than just Burke believes in what AGORA can do. In June partnerships became effective with Domenick Chiappareli of Henderson, Nev., William Campbell of Boynton Beach, Fla., James Coates III of Dallas and Russell Bryant III of Denver.

Chiappareli, Campbell, Coates and Bryant collectively bring several decades of experience in marketing and business development across a wide range of consumer asset classes. Each has deep relationships across the entire country and will be a powerful resource towards driving ever-growing volume to the AGORA platform.

“Once I saw the power of AGORA, I instantly wanted to get in on the action. The platform will transform the way business is conducted and completely disrupt the old-school broker way of doing things,” Chiapparelli said.

AGORA also reached a partnership with Auto Loan Technologies, which does business as AutoZoom, to expand the suite of services available to the buy-here, pay-here dealer community. AutoZoom is a web-based scoring and predictive underwriting SaaS provider designed to meet the underwriting and analysis challenges of the BHPH industry through its unique ability to build custom-fit scoring models for dealerships.

“I have been facilitating the origination efforts of the buy-here, pay-here dealer and finance company communities for decades. Having the ability to partner with AGORA and provide those same clients with exit and liquidity solutions helps complete the value chain we offer the industry,” AutoZoom founder Scott Carlson said. “We could not be happier to have a partner like AGORA.”

With AGORA only a few months into its journey, Burke acknowledged the company is looking to improve.

“We have come a long way but still have a long way to go, and we are constantly upgrading our interfaces and mapping technology to stay one step ahead,” he said. “The challenge of anticipating what lies around curve in the road ahead and ensuring AGORA is positioned to handle that — that remains our biggest hurdle. 

“Additionally, as more and more millennials start or take over dealerships and finance companies, those millennials are used to technology and are not familiar with the old way of buying and selling,” Burke went on to say.

All told, AGORA is aiming to smooth out one of the most important segments in auto finance; similar to how individuals can complete investment activities by themselves.

“It’s difficult to ‘rate’ how frustrated sellers (or buyers for that matter) have been with the bulk buying process pre-AGORA. As a buyer, I was frustrated because I knew there was a lot more paper out there that I just wasn’t seeing through the broker community or my internal sales teams,” Burke said. “I know BHPH dealers have had similar frustrations — that they simply are not getting the volume of bids they want or need for their paper. The source for both of those frustrations is that today (pre-AGORA) buyers and sellers rarely interact on a direct basis initially. Instead, there are brokers and other intermediaries who control the information flow, control who sees what paper.

“More important, the brokers have an adverse impact on pricing. By virtue of brokers commanding commissions of 1 percent to 4 percent, buyers are either overpaying, or sellers losing out on incremental economics,” Burke continued. “We have all seen what has happened over the years in the retail equity markets with discount and no commission stock trading. AGORA will bring to the secondary market for consumer loans what we all as individuals have been enjoying for years in our personal investment activities.

“At our one-year anniversary, I hope to be say the word ‘AGORA’ to a room full of BHPH dealers and finance companies and have them all know our business and be active users,” Burke concluded.

For more details, go to

First Choice Car Care rolls out high-mileage VSC program

Here’s another way to generate revenue at your buy-here, pay-here operation with the units that might have some of the highest odometer readings in your inventory.

First Choice Car Care recently announced its five-year, 100,000-mile vehicle service contract (VSC) plans for vehicles up to 20 model years old and already having up to 150,000 miles on their odometers.

First Choice Car Care highlighted that its service agreements appeal to buyers of older vehicles who desire investment protection at a reasonable cost, and it encourages dealers to retail units profitably they otherwise would wholesale for a loss.

“These plans help us sell an additional 50 to 75 high-mileage units a year, and because of their competitive pricing they also help me close more subprime deals,” said Angela Barrett, lead finance manager for Jenkins Nissan, Leesburg, Fla. The dealership retails about 150 new and used vehicles a month.

Barrett pointed out the plan costs give the dealership more wiggle room for trades. “That can make the difference for a prime deal because now we have a retail outlet for these cars. That makes us a reasonable front and back profit on units we’d otherwise have to wholesale at a loss.”

Part of the Consator Group of Companies, First Choice Car Care:

• Covers eligible vehicles 20 years and newer, having under 150,000 on the odometer when sold.

• Offers five years investment and budget protection

• Provides 50,000-, 75,000-, and 100,000-mile coverage options.

The First Choice Car Care VSC covers most domestic brands, including orphans, and most luxury and import models. For either vehicle class, consumers can choose either a basic plan for powertrain, turbo/supercharger and four wheel drive and all wheel drive transfer case components or the enhanced plan that also provides drive axle, A/C, electrical, and fuel system protection.

All programs include wear and coverage, towing, rental, roadside assistance, and trip interruption.

Coverages may be transferrable to a new owner should the original purchaser sell the covered vehicle.

The First Choice Vehicle Service Contract program is administered by Allegiance Administrators. First Choice Vehicle Service Contracts are backed by Assurant. With more than $30 billion in assets, Assurant is an A-Rated carrier with A.M. Best.

Tale of the tape: Q1 deep subprime originations at independent versus franchised stores

It’s not news that independent and buy-here, pay-here dealers more often will complete vehicle deliveries with consumers with softer credit than their franchised store contemporaries.

What is noteworthy is how Experian Automotive detailed the extra risk being facilitated through franchised dealerships to complete financing when looking at the lowest credit tier tracked on a quarterly basis.

According to Experian’s State of the Automotive Finance Market Report, the average amount financed during the first quarter for deep subprime customers — individuals with credit scores between 300 and 500 — making purchases at independent dealerships jumped by $654 year-over-year to $13,707.

And the term of the contract for those purchases grew by more than a month to nearly 55 months.

Breaking the independent store data even further, the average monthly payments for deep subprime customers who bought a vehicle in Q1 ticked up by $12 to $385.

When it comes to annual percentage rate on the contracts, the average APR for deep subprime buyers ticked up just 2 basis points during the first quarter to 20.55 percent.

Now let’s compare those figures to what happened at franchised dealerships that sold a used vehicle to a deep subprime customer during the first quarter.

Perhaps reflecting the network of finance companies franchised dealers can tap to get a deal with a deep subprime customer “bought,” the average amount financed for buyers in Experian’s lowest credit tier for used-vehicle transactions at new-car stores reached $16,151, up by $336 year-over-year.

Those finance providers working with franchised dealerships who will move metal with deep subprime customers also were willing to stretch terms much longer than contracts finalized at independent stores. The average term for a deep subprime buyer who took delivery of a used vehicle at a franchised dealership in Q1 came in at almost 66 months, nearly a year longer than what was booked on average at the independent lot.

And when it comes to rate and monthly payment, those deep subprime customers also finalized a little better deal on that used vehicle as the Q1 average APR dropped 9 basis points year-over-year to 18.37 percent with the monthly payment coming in $381.

NIADA Convention marks next stop in DealerSocket’s 4-show itinerary

After participating in this year’s National BHPH Conference hosted by the National Alliance of Buy-Here, Pay-Here Dealers, technology provider DealerSocket is continuing to hit the trade show circuit with its comprehensive independent dealer platform.

The company said its team has been hard at work rebuilding its technology solutions to ultimately produce a fully integrated, seamless platform through which independent dealers can run their entire operation. DealerSocket’s latest integrations reduce data entry, increase efficiencies and maximize profitability for dealers.

Attendees at this week’s Convention & Expo, orchestrated by the National Independent Automobile Dealers Association, in Las Vegas can drop by booth No. 300 to see demos of the following deep integrations within DealerSocket’s platform:

• Crossfire: The Crossfire integration can identify and link website visitors to customers in the CRM. Dealers can learn what customers are really looking for based on web activity, then enhance their marketing efforts with personalized, custom communication.

• Inventory Sync: When dealers make updates in their inventory management system, changes are seamlessly applied to their website to ensure reliable inventory information at all times to increase solid leads.

• Precise Price: Dealers can now invite consumers to start an accurate deal in real time from anywhere. Once the customer arrives in store, he or she has already completed some or most of the deal online, including reviewing F&I products at their leisure and locking in an exact price for the vehicle.

• iDMS: The hub of the independent dealership is fully integrated with CRM, so data only needs to be entered once. In addition, iDMS’ real-time integration with QuickBooks greatly simplifies accounting tasks.

• Service: DealerSocket’s integrated service solution can keep dealers connected with customers through intelligent resource scheduling, mobile check-in, recommended service reminders and more.

• Revenue Radar: By mining DMS data for customers who are ready to buy again, dealers can eliminate the competition before they even enter the picture. Real-time equity information, bank programs, incentives and vehicle evaluations are all analyzed, with results pushed to the CRM for tailored marketing.

DealerSocket is actively integrating outside partners into its platform for even bigger efficiencies. From CBC Credit Services to Sigma Payment Solutions, dealers can now easily access more than 70 trusted providers through the platform.

Attendees at NIADA’s Convention & Expo can catch DealerSocket’s Blaine Morgan, who will participate in “The Future of DMS” panel discussion on Thursday from 2:15 to 3 p.m. Learn more at

Next month at the Texas IADA Conference & Expo, DealerSocket’s sales director for the independent market, Neale O’Bannion, will lead a breakout session titled “Modern Day Business Processes” on July 25 from 1:30 to 2:20 p.m. Learn more at

The company will also exhibit at the following shows this summer:

• Georgia IADA Convention & Expo: July 13-15 in Atlanta

• MARIADA (Mid-Atlantic Regional Independent Automobile Dealers Association) Conference: Aug. 6-8 in Bethlehem, Pa.

• Florida IADA Convention & Expo: Oct. 5-7 in ChampionsGate

For more details and to demo DealerSocket’s integrated platform for independent dealers, visit NIADA booth No. 300, call (866) 813-1429 or visit

J.D. Byrider names new CEO

J.D. Byrider announced a major change in leadership on Tuesday as the franchise network of buy-here, pay-here dealerships recently appointed Craig Peters as chief executive officer, replacing Steve Wedding, who served the company for 25 years.

The company indicated Wedding will support the transition as an advisor to the J.D. Byrider board of directors.

Most recently serving as chief operations and technology officer of Barclaycard US, a top-10 U.S. card issuer and division of Barclays, Peters was responsible for delivering a new technology platform to support the launch of a new consumer lending business while driving efficiencies and improving quality at the company.

Peters brings more than 20 years of leadership experience in consumer finance to J.D. Byrider with a broad base of global experience across operations, collections, risk management and technology. He has successfully transformed many businesses and operations during his tenure at HSBC, Capital One and Barclays.

“We are thrilled to bring someone with Craig’s experience and track record to J.D. Byrider,” J.D. Byrider executive chairman Aaron Tankersley said.

“Craig’s leadership will be instrumental in the continued development of new services and systems for our current franchisees, as well as the successful growth of additional company-owned and franchised locations,” Tankersley went on to say.