There is still time for buy-here, pay-here operators — especially ones who can easily travel to Dallas — to register for the training sessions the National Independent Automobile Dealers Association is organizing for its first BHPH Summit.
The event is set for next Tuesday, Wednesday and Thursday at the Embassy Suites DFW Airport North.
“It’s yet another addition to an NIADA toolbox that continues to expand our level of service to the BHPH industry,” NIADA chief executive officer Steve Jordan said.
Here are some of the agenda highlights of the summit that’s being led by NIADA director of dealer 20 groups Chuck Bonanno as well as the association’s two other 20 group moderators and training consultants — David Brotherton and Mark Dubois:
— 2017 industry trends and opportunities
— Credit reporting
— Remote payment options
— Underwriting in a competitive environment
— Collections best practices
— Network monitoring and cyber security
— Lead management basics
— Future of GPS and starter interrupt technology
Some of the other experts scheduled to be part of the summit include Susan Perlmutter of Sigma Payment Solutions, Steve Levine of Ignite Consulting Partners, Lawrence Pappalardo of Equifax, Robert Wilson of DealerSocket and Bill Neyland of TaxMax.
The association is also assembling a collection of capital providers who will provide their insights into the capital situation facing many of today’s dealers.
NIADA senior vice president of legal and government affairs Shaun Petersen also is on tap to share a regulatory update to summit attendees, as well.
The summit begins with a special welcome reception hosted by Kevin Carr, who is the vice president of financial services at PassTime GPS.
“The entire dealership staff can take something valuable back from this event, and we’re encouraging dealers to bring their managers, salespeople, service staff and collectors by offering discounts for dealerships that bring multiple attendees,” Jordan said.
“While the scope of this event is large, the idea behind it is simple,” he continued. “We want to help every BHPH dealer become stronger, more efficient, more compliant and more profitable. We want to give them the latest information, the best tools and the brightest ideas to make that happen.”
More details about the event can be seen in the video at the top of this page or by going here.
Operators can complete registration for the NIADA’s BHPH Summit by going to this website.
From Kansas to Georgia to across the Atlantic Ocean over to England, attendees evidently received what they wanted when the National Alliance of Buy-Here, Pay-Here Dealers hosted its Best Practices Conference in Orlando, Fla., at the beginning of this month.
President Ken Shilson highlighted that approximately 60 percent of attendees surveyed afterward had never been to an NABD conference previously. What they told Shilson and the NABD team about the three-day event dubbed “Best Practices to Succeed Now” left organizers excited about how the gathering unfolded.
“Attendee evaluations unanimously indicated that the program will help them succeed in 2017 and beyond,” Shilson said. “Our speakers and sponsors did an outstanding job helping attendees achieve their learning objectives.”
One person who gained significant amount of knowledge was Ciara Kimsey of Momentum Motorcars in Marietta, Ga., who might be considered a “green pea” in the BHPH space.
“As a dealer about to convert to BHPH, the information has been beyond helpful,” Kimsey said.
Taryn Meier of Affordable Transportation Co. in Abilene, Kansas, added, “This conference was very informational and helped bring my focus back to what’s most important in BHPH. Loved it!”
Along with attendees from elsewhere in the U.S. as well as Canada, Gavin Leach made the trip to Florida from Berkshire, England.
“I travel 6,000 miles to come to the convention. Need I say more; I always learn something valuable to take back,” Leach said.
The conference opened with 14 different workshop sessions covering vendor compliance, recoveries, millennial marketing, new technology, deal jacket compliance, reconditioning, F&I best practices, tax refunds, payment devices, capital solutions, lease-here, pay-here and the latest accounting and tax developments. All these workshops were interactive so attendees could ask questions and get answers on all these important topics.
General education sessions began with a highly inspirational keynote presentation by Harris Rosen, owner of Rosen Hotels and Resorts in Orlando. His keynote presentation was followed by sessions covering current developments, sourcing and financing inventory using digital channels and a benchmarks and trends update.
The event concluded with sessions on customer communications, an operating best practices dealer panel as well as a collection best practices panel and presentation. The conference also included a first-timer reception with more than 150 attendees and a sold out exhibit hall with more than 70 exhibitors who offered all the latest products and services to make attendees more profitable.
“NABD Orlando did not disappoint as the trend of improved success continued in our exhibitor space,” TaxMax founder Bill Neylan said. “It’s nice to have the ability to get in front of BHPH dealers who are decision makers that are there to take action. We meet new attendees every year who come to NABD with the goal of improving their business.”
NABD also announced that it will hold its 19th annual National BHPH Conference at a new venue — Encore in Las Vegas on May 23-25. Encore is a premier Las Vegas hotel and casino facility, and NABD has arranged unprecedented discounted room rates with no resort fees. The conference will focus on the “changing world of BHPH and of NABD” with an entirely new and exciting program agenda.
“This is a must attend for both new and experienced operators who want to compete successfully in the subprime auto finance market,” Shilson said.
For information or to register, visit www.bhphinfo.com or call (832) 767-4759.
Answer Financial formed a partnership with Verifacto this week in an effort to help buy-here, pay-here dealers monitor whether their contract holders are keeping vehicle insurance policies current.
The companies highlighted Verifacto’s technology is designed to improve the way lienholders can track insurance compliance for its customers. The platform includes an interactive dashboard with built-in email and SMS functionality, enabling dealers and their related finance companies to send payment reminders and insurance notices to customers in the event that they have a lapse in payment or cancel an existing insurance policy without selecting a replacement.
Through the partnership, Verifacto can now introduce an insurance comparison shopping and buying solution with its notifications, to help customers find a new policy quickly and for a competitive price. The insurance platform is branded VeriSurance, a subsidiary of Verifacto, and is powered by Answer Financial’s comparison platform.
“Answer Financial enables us to improve upon our mission of providing secure solutions for our clients to manage and mitigate their lienholder responsibilities, while maximizing their financial and operational efficiencies,” Verifacto chief executive officer Hezi Moore said.
“By partnering together to provide our clients with this particular work flow solution, we’ll improve upon our overall value propositions in what we can offer automotive dealers and auto finance companies,” Moore continued.
In addition to tracking customers’ insurance compliance for dealers and finance companies, Verifacto can enable BHPH dealers to help vehicle buyers obtain immediate quoting and binding of coverage at the point of sale.
Customers can call at any time in the buying process to speak with one of Answer Financial’s expert and U.S.-based insurance agents. The easy-to-use platform allows customers to speed through the insurance purchase and get them into the F&I process.
On his experience as a Verifacto client, Ronnie Ranes, director of sales and marketing for M&S Auto Sales, said: “VeriSurance is a great addition to the Verifacto platform because it enables our customer to purchase insurance when they purchase a car, expediting the sales process. By matching them with the best car insurance companies based on their needs, our customers are sometimes able to qualify for a larger vehicle purchase by reducing their monthly insurance payment.”
Tom Capp, senior vice president of business development for Answer Financial, added, “Verifacto has first-hand and immediate knowledge when a customer defaults on their insurance, and we’re the perfect partner to help these customers find a new policy and get back into compliance on their car loans. We’re excited to team up with lienholders and to protect drivers.”
Buy-here, pay-here operators who need recommendations on improving deal jacket compliance, securing more money from customers’ tax refunds and details of a significant accounting change — and who want all of this information for a discounted price — need to take action before the end of the week.
The National Alliance of Buy-Here, Pay-Here Dealers said early bird discounts on registration and hotel accommodations for its fall conference where experts plan to share best practices about those topics and more will expire on Friday.
Operators can save hundreds of dollars depending on how many attendees from their store come to the BHPH Conference to be held Nov. 1-3 at the Rosen Shingle Creek Resort in Orlando, Fla. Special room rates of $199 per night expire at the close of the week, too.
The program includes several of the nation’s leading attorneys, experts and successful operators who will share their tips and techniques to help attendees succeed in a highly competitive subprime market. The conference opens with a first-time attendee reception at 2 p.m. ET on Nov. 1.
The dual-track workshop, scheduled on the opening afternoon and then the following morning, will feature sessions that showcase new technology, including the latest dealer management software releases, the latest payment device technology and other products and services that increase profits through operating efficiency.
The compliance tracks will include vendor management responsibilities, add-on product compliance and becoming deal documentation compliant.
An accounting and tax "new developments" workshop will discuss new accounting credit loss measurement requirements, which will significantly impact all BHPH operators who carry finance receivables.
Other sessions include lease-here, pay-here as an alternative business model, Internet and social media tips to gain market share, capital solutions and ways to maximize recoveries.
“These workshops will not be infomercials, and will contain important information for operators to compete successfully today,” NABD president and founder Ken Shilson said.
During the second half of the conference, the dual tracks combine into general education sessions featuring a keynote presentation by Harris Rosen, who built a hotel empire with minimal start-up capital. Other general sessions will cover:
—Current developments update discussion
—Benchmarks and trends update
—Improving customer communications and relationships
—Operating best practices for challenging times
—Compliance issues
—Ways to protect your operation
—Avoiding collection mistakes
The exhibit hall will include all the newest products and services that increase profits and cash flow. The receptions, as well as breakfast and a luncheon with the exhibitors, are designed to allow attendees to network with other operators, experts and exhibitors.
The Rosen Shingle Creek Resort is located near Universal Drive and many of the newest attractions. Shuttle service is available to Disney properties and to Universal Studios.
To register, call NABD at (832) 767-4759 or go online to www.bhphinfo.com.
Ken Shilson called it one of the “most significant accounting changes buy-here, pay-here operators will ever encounter.” The founder of the National Alliance of Buy-Here, Pay-Here Dealers referenced how the American Institute of Certified Public Accountants passed new credit loss measurement standards that require operators to estimate future anticipated losses on their receivables.
In light of how this is going to impact operators — especially ones who have a related finance company — Shilson is hosting a free, one-hour webinar so BHPH dealers can be armed with more information to create a strategy with their accounting professionals.
During the session set for 3 p.m. ET on Wednesday, Shilson plans to:
• Explain the change in the required financial statement loss reserve.
• Tell operators how this will impact their financial statements, loan covenants and income tax returns.
• Discuss the best ways to minimize the impact of this change.
• Explain how the new requirements will likely affect borrowing relationships.
• Advise on what operators should do now.
“Don’t get surprised. Get updated on this important development,” said Shilson, who also discussed the topic in an online video available here and at the top of this page.
After registering, operators will receive a confirmation email containing information about joining the webinar.
Registration for the session can be completed here.
This accounting topic is also on tap to be discussed in more detail when NABD hosts its upcoming BHPH Conference during the first days of November.
The conference, whose theme is “Best Practices to Succeed Now,” is designed for both new and experienced operators. The event marks the 13th annual fall conference hosted by NABD.
The conference — to be held Nov. 1-3 at the Rosen Shingle Creek Resort in Orlando, Fla. — features dual-track workshop sessions that will focus on best operating practices, compliance, technology and new developments that operators must learn in order to succeed in today's highly competitive subprime auto finance market.
The program includes several of the nation’s leading attorneys, experts and successful operators who will share their tips and techniques to help attendees succeed in a highly competitive subprime market.
A conference agenda and speaker information is posted and will be updated on the NABD website at www.bhphinfo.com. Attendees and exhibitors are encouraged to register soon while space is still available.
“Successful BHPH operators today must understand and adapt to the competitive subprime market environment. The old ways aren’t working anymore,” Shilson said.
“This conference will definitely help operators compete more successfully while avoiding legal and regulatory pitfalls that can cost them millions,” he added.
The National Independent Automobile Dealers Association highlighted how its members continued to expand their already considerable presence in Washington D.C., coming in record numbers to last week’s National Leadership Conference and Legislative Summit.
NIADA reported that more than 175 dealers and industry leaders came from across the country to the nation's capital — the most since the event returned to Washington in 2013 — to meet with federal legislators and regulators and make the voice of the independent dealer and small business heard.
The event concluded Wednesday with the climactic Day on the Hill, when 14 teams of NIADA dealers and industry partners swarmed Capitol Hill and met with 90 members of the Senate and House of Representatives or their legislative staff. That figure obliterated the previous record of 63 meetings set during last year’s event.
“NIADA’s footprint in Washington today is by far the largest it's ever been,” NIADA senior vice president of legal and government affairs Shaun Petersen said. “In the four years since we began doing this, we’ve seen it grown exponentially.
“When we told people we had 180 dealers in 14 teams on the Hill, it really opened some eyes in Congressional offices. That's because of the commitment of NIADA members to be in Washington and make sure their voice is heard,” Petersen continued.
Among the teams were a record 10 representing NIADA's affiliated state associations. Teams from Georgia, North Carolina, South Carolina, Alabama, Texas, Ohio, Pennsylvania, Colorado, Florida and New Mexico visited all or most of their representatives and senators.
“This was a great opportunity to actually sit down face-to-face with decision-makers and really allow them to understand — not just tell them — our point of view and the issues we’re facing,” said Tamaria Yarbrough of First Class Auto Sales in Pleasant Grove, Ala.
“To actually be able to educate them on how those issues affect our businesses, as well as our customers, is vital,” Yarbrough continued.
Once again, NIADA’s teams focused on the issues of automotive recalls and the Consumer Financial Protection Bureau.
Dealers urged Congress to reject calls for a complete ban on sales of vehicles with open recalls, pointing out that independent dealers by law cannot make recall repairs and grounding those vehicles would have devastating effects on small businesses and consumers.
Operators also expressed support for the Financial CHOICE Act, an alternative to the controversial Dodd-Frank Act that is measure’s author said would make the CFPB more accountable.
In addition, the NIADA contingent pressed senators to act on S. 2663, the companion bill to H.R. 1737, which passed the House overwhelmingly last year. It would rescind the CFPB’s disputed auto financing guidance action regarding dealer discretion on interest rates issued by the CFPB in March 2013 and provide a more transparent and accountable process for dealing with the issue.
Featured speakers at National Leadership Conference events during the week included Sen. Joe Donnelly (D-Ind.) and Reps. Henry Cuellar (D-Texas), Roger Williams (R-Texas), Jeff Denham (R-Calif.), Kevin Yoder (R-Kan.), Bill Posey (R-Fla.), Tom Reed (R-N.Y.) and Steve Pearce (R-N.M.).
In addition to legislators, representatives of several federal regulatory agencies spoke to attendees Tuesday, providing regulatory updates and answering specific compliance questions from dealers. The speakers included John McNamara of the CFPB, Lois Greisman of the Federal Trade Commission, Department of Labor branch chief Derrick Witherspoon and Daniel Mosteller of the Department of Justice.
That afternoon, keynote speaker Ralph Reed of the Faith and Freedom Coalition offered an analysis of the current election season.
And, as always, the event brought together NIADA’s top national leaders as well as those of NIADA’s affiliated state associations to conduct association business, develop their leadership skills and get the latest updates on NIADA legislative, education and business initiatives.
“I'm excited to see this Leadership Conference grow and succeed as it becomes a critical component of NIADA's government affairs initiative,” said NIADA chief executive officer Steve Jordan, who also is among the industry leaders also coming to Used Car Week at the Red Rock Resort and Casino in Las Vegas on Nov. 14-18.
“Shaun Petersen and his team did a phenomenal job this year building on the momentum we’ve created since we brought this event back to D.C. in 2013,” Jordan continued.
“For as much as we’ve succeeded, we still have much more work to do as we continue to advocate on behalf of our dealers and assist our members in telling their stories,” he went on to say.
NIADA-PAC announces contributions
The Political Action Committee of the National Independent Automobile Dealers Association made contributions to Sen. Joe Donnelly (D-Ind.) and Rep. Henry Cuellar (D-Texas) in conjunction with last week’s NIADA National Leadership Conference and Legislative Summit in Washington D.C.
In addition, NIADA-PAC announced contributions to Reps. Roger Williams (R-Texas), Tom Reed (R-N.Y.), Steve Pearce (R-Kan.), Jeff Denham (R-Calif.), Kevin Yoder (R-Kan.), Bill Posey (R-Fla.), who highlighted the inaugural Friends of the Auto Industry Congressional Member Reception last Monday.
Donnelly spoke to the association at Tuesday’s PAC Cup dinner, while Cuellar was the featured speaker at a luncheon Wednesday in the Kennedy Caucus Room of the Russell Senate Building during the NIADA’s Day on the Hill.
“These contributions are crucial as we seek to help officials who are committed to work on behalf of the auto industry and small businesses, both of which are key components to the American economy,” NIADA CEO Steve Jordan said.
Donnelly, Indiana's junior senator, was elected in 2012. Before entering politics he ran a small printing and rubber-stamp business in Indiana, and has been recognized as a strong advocate for small business in the Senate, earning the National Federation of Independent Business' Guardian of Small Business award and the U.S. Chamber of Commerce Spirit of Enterprise award.
Donnelly serves on the Housing, Transportation, and Community Development Subcommittee of the Senate Banking Committee.
In his remarks, Donnelly told independent dealers their job is “to build great opportunities with your customers to take care of their needs — not only this time, but time after time after time. And our job (in government) is to try to stay out of your way as much as we possibly can, to let you make your dream come true, to take care of your customers, to see smiles on their faces and to keep moving our country forward.”
Donnelly expressed concern about the negative impact on small business of the many federal regulatory agencies, particularly the Consumer Financial Protection Bureau.
“I'm an elected representative of Indiana,” he said. “I am not part of a regulatory government agency. If we regulated like some of them, we'd all be thrown out on election day. … That’s where the CFPB has to understand it’s not all academic. It’s not all on a piece of paper. It’s real life.”
Like Donnelly, Cuellar also criticized overregulation by the CFPB and others, telling dealers that Congress must create “legislation to stop the bad regulations that might affect you and try to either change it, modify it or stop it completely.”
Cuellar is considered one of the most bipartisan legislators and has supported numerous pro-small business bills since he began representing south Texas in Congress in 2005. This year he was one of four Democrats to vote for a financial services appropriation bill that included proposals to restructure the CFPB and make it more transparent and accountable.
Cuellar told dealers their annual visit to Washington is important to educate legislators about their industry and how policies set in Washington affect them in the real world. But he added that process must continue when the dealers return home and urged them to invite their Representatives and Senators to visit their businesses.
“You can e-mail, you can send a letter, you can make a phone call, but there is nothing like sitting down with a member of Congress or a Senator or their key staff and explaining how something is positive or something is negative,” he said. "That is why it's very important for you to keep making these trips.
“There's nothing like a show and tell. What does that mean? If you want members to understand your industry better, invite them to your industry. … Whenever you have time, invite them over to come down and sit down with you. … Everybody has a member of Congress. Everybody has two Senators. Invite them over whenever you can. … Go over the rules and regs you have to deal with."
Monday's reception featured Williams, himself a dealer in Weatherford, Texas, who said the used-vehicle industry is “where the rubber meets the road. That’s the community. That’s the Little League team. That’s the Little Miss Texas. That's what we are every single day. We're fighting for that and it's my honor to be able to represent all of you in Congress.”
Yoder — like Williams, a member of the Congressional Auto Caucus — praised the dealers in attendance for their tenacity as well as taking the initiative to make the trip to D.C.
“We know most of the jobs in this country are created by small business owners, entrepreneurs, people getting up every day and putting every ounce of their retirement, everything they've got into their business," he said. And they watch Washington D.C. put more burdens and pressure on them every single day.
“We get that, but you coming up here and reminding us of that is very helpful, because this town is very forgetful. We’re happy to be soldiers in the army for free enterprise and entrepreneurship and opportunity for every American, and it starts with mom and pop companies all across this country.”
NIADA PAC Cup stays in the Southeast region
Region II — the Southeast — won the NIADA PAC Cup fundraising competition for the third consecutive year.
Region II, which includes the Carolinas, Georgia, Florida, Alabama, Tennessee and Kentucky, raised $29,000 in contributions to the National Independent Automobile Dealers Association’s Political Action Committee to again claim the prize, which was awarded last week during the NIADA National Leadership Conference and Legislative Summit in Washington D.C.
The PAC Cup competition, in its third year, pits the association’s four regions in a competition to raise the most money for the NIADA-PAC fund between the NIADA Convention and Expo in June and the National Leadership Conference. The winning region receives the PAC Cup trophy — and, of course, bragging rights.
Between them, the four regions contributed $79,850 to the NIADA-PAC fund, a record for the competition, surpassing last year’s total by more than $23,000.
Region II narrowly defeated Region III (Midwest), which raised $27,350. Region I (Northeast) was third, followed by Region IV (West).
As always, NIADA highlighted the competition came down the final minute, with dealers from all four regions making contributions during the annual PAC Cup dinner Tuesday, trying to push their region over the top. More than $61,000 was contributed during the NLC, which began Monday.
“This is an important event for us because the funds raised will advance our industry and help elect legislators who will work to support our industry and small business,” said NIADA president Billy Threadgill of Van’s Auto Sales in Florence, S.C. “The winners here are all of our dealer members.”
NIADA-PAC was created to enhance the association's mission to promote and protect the interests of the used-vehicle industry and NIADA's dealer members nationwide. NIADA-PAC supports Congressional members and candidates who seek to protect “this vital industry and keep the economic engine of small business running strong,” according to the association.
After more than a year of dedicated development and collaboration with dealers, DealerSocket will officially release iDMS at the company’s User Summit next week in San Antonio. DealerSocket highlighted that iDMS marks the first of several upcoming product launches for the company’s full-scale, integrated technology platform tailored to independent and buy-here, pay-here dealers.
“Our independent platform’s seamless integrations will provide tremendous flexibility for each product suite, including iDMS,” said Jennifer Lee, DealerSocket’s vice president of product strategy. “Once all our independent products have launched on the platform, users will be able to access tools based on their job role, rather than by product line.”
The company explained iDMS is a highly integrated solution including flexible accounting, powerful desking, an integrated lender portal, integrated service shop management, unsurpassed workflow and queuing processes, and robust reporting analytics.
Director of product and engineering Jeff McCurry added, “One of the most useful benefits of iDMS is its scalability for all sizes of success. This platform can help small- to mid-size dealerships get to the next level, as well as allow larger stores to reach maximum efficiency in their operations. iDMS will scale as your dealership grows, so you will not be faced with future software decisions.”
The new solution merges the best features of FEXDMS and AutoStar Solutions — along with adding some original features along the way. DealerSocket highlighted iDMS users can take advantage of 10 features, including:
• Seamless integration with DealerSocket’s other products, including CRM, digital marketing and inventory management platforms
• A streamlined experience, including a single login and highly intuitive user interface
• 100 percent web-based, cross-browser, cross-platform functionality, with a special focus on mobile devices so dealers can access iDMS in the F&I office, on the dealership lot, or while running errands
• Buy-here, pay-here decisioning and integrated lender portal, so dealers can finance a deal without leaving the platform
• Real-time accounting integration with QuickBooks, as well as flexible general ledger (GL) account creation and mapping, which give dealers granular control of GL transaction accounting
• Comprehensive desking solution for both BHPH and independent retail dealers
• Robust collections, such as stacked promise-to-pay and dynamic queuing functionality
• Multitasking capabilities through an extra communication module at the bottom of each screen
• Seamless integration with DealerSocket CRM and other DealerSocket products
• Detailed reporting leveraging the best from AutoStar and FEXDMS, including the ability to reorganize past reports using new criteria
Demos of iDMS will be conducted at DealerSocket User Summit, which runs Monday through Wednesday at the JW Marriott San Antonio Hill Country Resort and Spa. To register, visit usersummit.dealersocket.com/ind.
Independent and buy-here, pay-here dealers from across the U.S. are arriving in the nation's capital today for one of their association's most significant events of the year.
The National Independent Automobile Dealers Association's National Leadership Conference and Legislative Summit convenes in Washington, D.C., for the fourth consecutive year, giving independent dealers the opportunity to meet face-to-face with legislators and regulators and make the voices of independent dealers and small businesses heard.
The conference, which begins today at the Dupont Circle Hotel, will be highlighted by Wednesday’s Day on the Hill, when 14 teams of dealers and industry partners will participate in more than 80 meetings with congressional offices, advocating in support of Rep. Jeb Hensarling's Financial CHOICE Act and against a blanket ban on sales of recalled vehicles by independent dealers.
NIADA indicated both of those numbers will be the most ever for the NLC.
In addition, Sen. Joe Donnelly (D-Ind.) will speak at Tuesday night's PAC Cup Dinner and Rep. Henry Cuellar (D-Texas) is the featured speaker for Wednesday's Power Lunch during the Day on the Hill.
And today, the conference's opening day will be capped by a new event, the Friends of the Auto Industry Congressional Member Reception, a meet-and-greet scheduled to include appearances by nine U.S. Representatives. That group includes:
Rep. Roger Williams (R-Texas)
Rep. Jeff Denham (R-Calif.)
Rep. Kevin Yoder (R-Kan.)
Rep. Ryan Zinke (R-Mont.)
Rep. Bill Posey (R-Fla.)
Rep. Tom Reed (R-N.Y.)
Rep. Dennis Ross (R-Fla.)
Rep. Robert Pittenger (R-N.C.)
Rep. Steve Pearce (R-N.M.)
Tuesday's agenda includes regulatory briefings from the Consumer Financial Protection Bureau, the Federal Trade Commission, the Department of Labor and the Department of Justice.
“The National Leadership Conference and Legislative Summit is one of our association's most important events,” NIADA chief executive officer Steve Jordan said.
“By coming as a group, NIADA shows Congress we are a large, committed force representing an industry that has a huge nationwide impact on America’s economy and its communities — a force that must be taken seriously,” Jordan went on to say.
Geared toward operators who are looking to close 2016 strong, the National Alliance of Buy-Here, Pay-Here Dealers released details of its upcoming BHPH Conference set for the first days of November.
The conference, whose theme is “Best Practices to Succeed Now,” is designed for both new and experienced operators. The event marks the 13th annual fall conference hosted by NABD, which is the largest used-vehicle special interest group for BHPH operators with more than 13,000 members.
The conference — to be held Nov. 1-3 at the Rosen Shingle Creek Resort in Orlando, Fla. — features dual-track workshop sessions that will focus on best operating practices, compliance, technology and new developments that operators must learn in order to succeed in today's highly competitive subprime auto finance market.
The program includes several of the nation’s leading attorneys, experts and successful operators who will share their tips and techniques to help attendees succeed in a highly competitive subprime market. The conference opens with a first-time attendee reception at 2 p.m. ET on Nov. 1.
The dual-track workshop, scheduled on the opening afternoon and then the following morning, will feature sessions that showcase new technology, including the latest dealer management software releases, the latest payment device technology and other products and services that increase profits through operating efficiency.
The compliance tracks will include vendor management responsibilities, add-on product compliance and becoming deal documentation compliant.
An accounting and tax "new developments" workshop will discuss new accounting credit loss measurement requirements, which will significantly impact all BHPH operators who carry finance receivables.
Other sessions include lease-here, pay-here as an alternative business model, Internet and social media tips to gain market share, capital solutions and ways to maximize recoveries.
“These workshops will not be infomercials, and will contain important information for operators to compete successfully today,” NABD president and founder Ken Shilson said.
During the second half of the conference, the dual tracks combine into general education sessions featuring a keynote presentation by Harris Rosen, who built a hotel empire with minimal start-up capital. Other general sessions will cover:
—Current developments update discussion
—Benchmarks and trends update
—Improving customer communications and relationships
—Operating best practices for challenging times
—Compliance issues
—Ways to protect your operation
—Avoiding collection mistakes
The exhibit hall will include all the newest products and services that increase profits and cash flow. The receptions, as well as breakfast and a luncheon with the exhibitors, are designed to allow attendees to network with other operators, experts and exhibitors.
Companies interested in exhibiting may call (832) 767-4759 while space is still available.
The Rosen Shingle Creek Resort is one of Orlando’s finest and is located near Universal Drive and many of the newest attractions. Shuttle service is available to Disney properties and to Universal Studios.
“The Rosen Shingle Creek and Orlando is a very attractive and affordable venue,” Shilson said.
Attendees are encouraged to bring their families and enjoy one of the nation’s most popular destinations. NABD has arranged discounted room rates with no resort fees in an effort to make it affordable for everyone. Early registration and member discounts are available, while supplies last, by calling NABD at (832) 767-4759 or going online to www.bhphinfo.com.
A conference agenda and speaker information is posted and will be updated on the NABD website at www.bhphinfo.com. Attendees and exhibitors are encouraged to register soon while space is still available.
“Successful BHPH operators today must understand and adapt to the competitive subprime market environment. The old ways aren’t working anymore,” Shilson said.
“This conference will definitely help operators compete more successfully while avoiding legal and regulatory pitfalls that can cost them millions,” he added.
Automotive Compliance Consultants president Terry Dortch recapped what he described as “sad and unfortunate” news about employee crimes against dealers. Before going into a few tips for protecting the dealership against such activities, Dortch highlighted a few recent headlines about such occurrences, including:
• Florida couple accused of stealing $2 million from S.C. car dealership, warrants say.
• Kentucky dealership employee arrested and charged with three counts of theft by deception.
• Pennsylvania dealership controller headed to jail after embezzling $10 million.
Dortch acknowledged the criminal activity itself is detrimental, but the breach of trust can be worse. Whether informal or formal, Automotive Compliance Consultants insisted employees make a covenant with their employer when they agree to give their services for compensation.
Said a dealer whose longtime employee was charged with falsifying vendor payables to steal from the dealership, “The crime feels like the betrayal of a family member.”
A survey a few years ago by an accounting firm noted that a third of dealership respondents had “experienced actual or attempted fraud.” Of those, 62 percent of the fraud perpetrators were employees.
“These events can seem to happen out of the blue, but often in retrospect behaviors, practices and outside activities were warnings about such individuals,” Dortch said. “These individuals are often more concerned with what they get from their position than what they can contribute.”
Automotive Compliance Consultants explained that operators can consider these defenses for asset theft:
• Security cameras to watch over parts and materials inventory shelves, supply rooms, parking lots and other outside areas to observe suspicious activities.
• Limit access to areas like the parts department, main office, F&I office, cashier office, materials closets and parts storage.
• Note employees’ lifestyles, habits and behaviors that seem suspicious or otherwise indicate they may live above their visible means.
• Employees hanging around in areas where they have no legitimate reason to do so is a red flag.
• Enforce your internal controls policies.
For back-office defense, Automotive Compliance Consultants shared these suggestions:
• Don’t allow one person to have complete control of bank accounts. Have one individual handle payoffs of trade-in balances and another control license and title activities; have a third person manage the day-to-day bill paying. This would mean having multiple accounts.
• Conduct regular audits of the books; auditing by a third party preferred.
• Daily review the DOC or daily operating control sheet. Look at vendor expenses closely and know each vendor and the service they provide. Look for any abnormalities in the expense, i.e. is it way too high for the service they are providing?
• Investigate anything that looks different or out of place on vehicle values, bank statements, inventory balances or number of ROs.
• Don’t shrug off any swing in profit, revenue or payables — always investigate.
• Pay close attention to used inventory and the water that exists. Market fluctuations will occur, but you don’t want to see large swings that could signal something amiss.
• Pay close attention to your wholesaled vehicles run a report at least monthly to see what is being wholesaled and check the price it was sold at.
• Pay close attention to contracts in transit — again, this could mean something other than just waiting on stips or stipulations, the documents required by a lender to fund a loan, such as proof of income, residence, and proof of insurance.
• Check bank statements personally; randomly look for abnormalities.
• Keep an eye on used car reconditioning; if looks out of place, dig deeper.
• Conduct monthly inventory of all vehicles, used and new, and match to the dollar amount on the books and/or floor plan.
And when it comes to data security, Automotive Compliance Consultants recommended that operators engage a managed security services provider to monitor your store’s network and alert your IT staff when an intrusion occurs so immediate action can be taken. Absent such real-time network monitoring, the dealership will likely remain open to network compromise and perhaps substantial loss.
Finally, Automotive Compliance Consultants stressed that dealerships need to make sure every employee knows that no internal theft of any kind will be tolerated — and be sure they understand violations will cause dismissal, at least, and criminal prosecution often.
“Sometimes having a third party audit the dealership’s exposures will provide the most prevention and peace of mind,” Automotive Compliance Consultants added.
Automotive Compliance Consultants specializes in dealership compliance, providing in-dealership consultations and analysis, compliance audits and training, and offers solutions for all compliance needs. The Automotive Compliance Consultants staff has extensive experience in the automotive retail industry and focuses exclusively on dealership compliance issues.
For information, contact Dortch at terry_dortch@compliantnow.com or visit www.compliantnow.com.
