A little more than a month after Wayne Reaves Software rolled out an enhancement to its current platform that can provide the capability for buy-here, pay-here dealers to furnish credit data to Equifax, the DMS provider completed an integration with F&I Express, a digital solution that can allow operators to electronically secure customer signatures and transmit contracts and other required data directly to participating sources.
Officials explained the incorporation of F&I Express eContracting within the Wayne Reaves DMS is designed to generate a streamlined process for dealers. Within the DMS, dealers can digitally send the customer’s deal information directly over to F&I Express to complete the contract. F&I managers are ensured of 100 percent accuracy and error-free contracts with a few clicks, sending the contract digitally to the customer for signatures.
Once completed, the digital contract can be easily tracked and submitted.
“This new integration with Wayne Reaves will now further simplify the electronic contracting process — eliminating the need for dealers to re-enter contract data into the DMS,” said Brian Reed, president and chief executive officer of F&I Express.
“The integration with Wayne Reaves allows us to serve a wider range of dealers and provides them with new functionality that streamlines the total process. Dealers who use eContracting with Wayne Reaves DMS integration will find the process to be error-free and even more efficient,” Reed continued.
Reed went on to mention that eContracting can allow operators to significantly modernize their processes. It can automate critical checkpoints by ensuring that required fields and signatures are entered and contract requirements are met during the review process.
In addition, dealers now have access to more than 120 providers through the connection with F&I Express.
The companies added that the integration between Wayne Reaves and F&I Express significantly improves the process for independent dealers and BHPH operators. All Web-based, customers can be met where they choose and the contracts can be completed instantly.
Wayne Reaves president Jason Reaves insisted independent dealers now have more options than ever to serve their customers.
“Wayne Reaves’ car dealer management software provides an easy way to manage every aspect of the business,” Reaves said. “Now with our integration with F&I Express, our customers are able to easily pull accurate rates for providers and submit contracts electronically, 100 percent error-free.”
Before the 2016 NIADA Convention and Expo had begun, it was already a record-breaker.
Now that the final numbers are in, the extent by which that record was broken is clear – and the National Independent Automobile Dealers Association says it’s impressive.
Officials highlighted on Thursday that NIADA’s 70th annual gathering, held earlier this month at The Mirage in Las Vegas, obliterated the attendance mark by a staggering 24 percent. The previous record was set at the 2006 Convention and Expo at the Las Vegas Hilton.
NIADA indicated overall attendance was up for the fourth consecutive year, with the number of dealer attendees rising 32 percent from the 2015 convention and first-time attendees up by 30 percent. Almost 20 percent of attendees were first-timers.
The association mentioned reviews from attendees of all types were overwhelmingly positive. Here are a few samples:
“The people of NIADA make it feel like family. … This is the Cadillac of events,” said Joe Mok of G Motor Cars in Arlington Heights, Ill.
“I got what I came for. I wanted to learn new ways to take my business to the next level, and I'll be spending the next several months implementing what I learned at my dealership. It was the most informative convention I have attended,” said Sean Schuetz of Klass Motors in Santa Ana, Calif.
“The dealers who attend the NIADA Convention have an unfair advantage over the competition, and I love that,” said Alex Tovstanovsky of Prestige Motor Works in Naperville, Ill.
Among attendees who responded to NIADA's post-convention survey, 91.5 percent said they were satisfied with the event — and none selected “dissatisfied.”
In addition, 92 percent said the information presented was “extremely useful” or “quite useful,” and 94.5 percent said the convention achieved their objectives. Another 96.4 percent said they are likely to attend future NIADA events and 94.7 percent said they are likely to recommend NIADA events to others.
“I can honestly say my experience was far above and beyond my expectations,” said Daniel Johnson of LiteHouse Auto in Lakewood, N.Y., a first-time attendee. “We will not miss a convention from here on out.”
The exhibitor survey yielded similar results — a 91 percent satisfaction rating and 87 percent saying they met their objectives and are likely to exhibit at the 2017 Convention and Expo.
“The NIADA Convention’s ROI to us is significant,” said Jenny Rappaport of EFG Companies, “and you will see us there again next year.”
The 2016 Convention's theme of "Success By Reinvention" was appropriate, as NIADA reinvented its premier event with a new venue — the recently renovated Mirage — a sold-out 60,000-square foot Expo Hall with more than 170 exhibitors and the most extensive dealer education agenda in its 70-year history, featuring more sessions on more topics than ever before.
Part of that increase was a result of NIADA's December acquisition of the assets of Leedom and Associates, including the BHPH World Convention. Some components of that conference were added to the NIADA Convention’s already robust training, allowing NIADA to significantly expand its Buy Here-Pay Here and subprime education.
Among the featured speakers were NIADA director of dealer development Joe Lescota, NIADA national director of 20 Groups Chuck Bonanno and NIADA senior vice president for legal and government affairs Shaun Petersen, part of a used vehicle industry who's who that also included TrueCar chief executive officer Chip Perry, Autotrader’s Howard Polirer, Equifax’s Angelica Jeffreys, AutoZone's Ray Curry, NABD president Ken Shilson, Cox Automotive economist Tom Webb and more.
The 2017 NIADA Convention and Expo will be back at The Mirage and is scheduled for June 12-15, 2017.
“This year’s NIADA Convention may have been my first, but it most definitely won't be my last,” vAuto founder Dale Pollak said.
Four of the operators who attended the 18th annual National BHPH Conference hosted by the National Alliance of Buy-Here, Pay-Here Dealers last week offered glowing assessments of what they took away from the Wynn Resort & Casino in Las Vegas.
More than 70 speakers and panelists discussed important subjects collected under the theme of “Navigating the Road to BHPH Success.” Three days of material might seem overwhelming, but Owen Gorman of the Gene Gorman Automotive Group said he enjoyed it very much.
“The sessions were just long enough to be informative and not drawn out,” said Gorman, who operates dealerships in the Florida cities of Port Charlotte and Punta Gorda. “The session moderators are a must, and they did a good job.”
The educational sessions featured 14 different workshops covering:
—Current industry developments
—Accounting and tax updates
—Lowering reconditioning costs
—Add-on products that add value
—Maximizing tax refunds
—Using the web and social media to gain market share
—Payment devices
—Technology solutions for success
—Turning charge-offs into cash
—Capital
—Deal jacket reviews
—Inventory acquisition, disposition and financing.
All sessions were interactive, allowing attendees to ask questions and get answers on these important topics.
“The NABD gives me a front-row seat to all of our industry’s hot-button topics,” said David Bearly, who operates Dave’s Greenlight Auto Sales in Greenville, Ill.
“Now that I know what I don’t know, I can direct my efforts to help improve my customers’ experience while protecting my bottom line,” Bearly added.
Lloyd Robertson called this year’s NABD event a “win-win.” Robertson runs Lloyd’s Auto Sales in Hot Springs, Ark.
“Not only did I learn practices that will make me a better, more efficient operator, I will be much more profitable because I learned what not to do,” Robertson said.
Some of what Robertson and other attendees learned about what not to do likely stemmed from the presentation by Malini Mithal, a director at the Federal Trade Commission. Mithal discussed FTC’s jurisdiction and enforcement authority over the BHPH industry and her presentation included examples of current FTC initiatives involving deceptive practices, fair credit reporting and other violations including the furnisher rule, risk based pricing, privacy and data security and other violations.
Mithal also provided helpful guidance to a jam-packed audience on compliance reference materials.
“This session will help attendees avoid regulatory mistakes that can cost them millions,” said NABD president Ken Shilson. “We are deeply grateful to Milani and to the FTC for their candor and insights.”
Other general education sessions included a presentation by Cox Automotive leaders on “simplifying how vehicles are acquired and sold,” a benchmarks and trends update, and the Hall of Fame induction of Mark Sauder, former chief financial officer of DriveTime.
The program concluded with interactive sessions covering collections best practices, phone skills for success, succession planning and a discussion on how regulators are changing the BHPH business.
“Attendees who stayed to the end derived significant information and value from the Thursday morning sessions,” Shilson said.
John Linnehan Jr. and Tim Byrd of DealerRe conducted a motivational session on the final day that got the attendees in compliance spiritually.
“NABD is extremely grateful for their participation and contribution to the success of this event,” Shilson said.
The conference began with a first-timers reception that had more than 200 attendees.
Donnie Cochran wasn’t a first-time attendee; he has come to NABD’s national conference 11 times.
“Enjoy it every year,” said Cochran, who operates Bayou Auto Sales in New Iberia, La.
NABD sold out its exhibit hall as vendors and service providers enjoyed their time at the Wynn, as well.
“This was the best conference that I have attended in my 21 years in business,” Tax Refund Services and TaxMax founder Bill Neylan said.
“We had a record number of dealers come to our booth to learn about our products, and we even had proactive dealers sign up for our service right in our booth,” Neylan continued. “Dealers at the NABD Conference were dealers who were serious about their businesses and were ready to act on products that can better their dealerships. Congrats on such a great show, NABD!”
CAR Financial president Rick Potter offered this assessment for operators who did not make to Las Vegas this year.
“NABD promised it to be one of the greatest BHPH events in history, and it did not fail to meet this objective,” Potter said. “I witnessed standing-room-only crowds in some of the sessions due to the very robust attendance, and talked to a large number of new and prospective dealers during the vendor showcase periods.
“The seminars and speaker panels were fantastic, and focused on the most influential aspects of our industry today. If you did not attend this event this year, don’t make the same mistake in 2017,” Potter added.
For operators who couldn’t make the trip, conference presentations have been posted on the NABD website at www.bhphinfo.com and can be downloaded for free.
“2016 NABD was the single best presentation of events that I have experienced in my 10 years in this industry,” Cal Amp’s Bill Caan said. “Record attendance and a dynamic lineup of speakers and topics made for an outstanding three days.
“Ken and Ingram (Walters) continue to build on previous shows and their hard work has paid dividends. Future NABD events are a can’t-miss for industry participants and vendors,” Caan went on to say.
NABD announced that its next event will be a BHPH conference Nov. 1-3 at the Rosen Shingle Creek Resort in Orlando, Fla. “This facility is the nicest resort in Orlando and NABD offers discounted room rates with no resort fees while supplies last,” Shilson said.
More information about that conference is available on the NABD website or by calling its headquarters at (832) 767-4759.
“It’s always exciting to see a diverse group of dealers come together with a focus on improving their business and the industry as a whole. I’m already looking forward to the next NABD event,” NextGear Capital’s Lori Kahre said.
NABD also is considering offering BHPH Master Dealer Certification training. A brief survey is available on the NABD website and survey responses are requested.
Spireon, a provider of mobile resource management and business intelligence solutions for independent stores and buy-here, pay-here operators, has teamed with the National Independent Automobile Dealers Association as its newest Diamond-level National Corporate Partner.
The news came through an announcement from NIADA on Tuesday.
“Spireon has always been a big supporter of dealer business growth through the use of technology systems,” Spireon director of product marketing Kristy Demarco said. “We will continue to work with NIADA to advocate for the continued use of GPS devices and solutions in cars and provide members with special tools and programs for their business.”
Spireon is best known for its Goldstar GPS collateral management system, designed to help dealers and finance companies mitigate portfolio risk and protect their assets.
NIADA members will be the first to know about new Spireon GPS solutions and special promotions, and will receive information on how to stay in compliance with laws and regulations.
Spireon has been an innovator with features like automated reference checks and location predictors, and with Kahu, a stolen vehicle recovery app available for dealers to market to vehicle buyers.
“The partnership speaks to Spireon's position as an industry leader in connected vehicles, in addition to its full commitment to NIADA’s mission in helping members grow their businesses, protect their assets and enhance profitability," NIADA senior vice president of member services Scott Lilja said. “NIADA members will now benefit from Spireon’s growing suite of product offerings.”
Leading into the 18th annual National Conference for BHPH hosted by the National Alliance of Buy- Here, Pay-Here Dealers, we spoke with Ken Shilson, the president and founder of NABD, about a host of issues impacting operators.
BHPH Report asked Shilson about the diminishing market presence BHPH dealers possess nowadays, how moves made by investment leaders on Wall Street are impacting dealers on Main Street, as well as some tidbits that dealerships can leverage during the second half of the year.
How are BHPH operators surviving the storm from subprime finance companies that seems to have been going on for several years now?
Based on numbers that Experian has provided through December 2015, it appears that buy-here, pay-here has lost about 40 percent of its market share to subprime finance companies, credit unions and franchised dealers. That’s a pretty big slice out of the market, and therefore it has to result in some adjustments. One of the big adjustments is in order to survive today you have to have financial flexibility and capital availability. You have to get your financial house in order to be able to weather the Storm, so to speak, where all this competition is going on. If you to sell a car today to pay the bills tomorrow you’re in deep trouble because it’s going to take time for us to regain our market share. It’s not going to come back automatically.
You must have a compliance focus today. That’s because in the past the industry has not been scrutinized the way it is now. You cannot ignore that big brother is looking. You can’t ignore it. Whether you’re big or small, or in between, you better get your compliance management system in place.
You have to have consistent underwriting. Trying to match what Wall Street is doing, what franchised dealers are doing and what credit unions have done is not smart. What is smart is to keep a consistent underwriting approach and follow your business model. I have a saying: Never match underwriting with stupidity. If you try to do it, you’ll end up with disastrous results. You need to be consistent and disciplined in your underwriting.
You need to get efficient by embracing technology. With the loss in market share, you have to reduce your costs. You have to operate more efficiently in order to operate more profitably. In other words, you need to be able to do more with less. Th e good news is that once the industry rebounds you’ll make that much more money because you’ve already streamlined things to be more profitable.
No need for specific numbers, but what’s your assessment as to how many good operators have departed the business in the last couple of years? What void is it leaving?
I think that’s a great question and no one has asked me that question before. It’s a very valid question. My answer is none. No good operators have left the business because good operators understand that it’s a marathon, not a 100- yard dash. They’re prepared to stay the course. Operators. What we’ve lost is people who were over-leveraged, who didn’t discipline themselves properly, who tried to match underwriting with stupidity, who didn’t get compliant, who didn’t do any of the things that I just said.
They continue to fail. They will continue to fail as long as they don’t have a long-term plan. I know these guys. I know who the good operators are, not based on subjectivity but based on performance. They’re all still there.
Both Fitch Ratings and Moody’s have shared reports this year about the deterioration of subprime auto ABS. What’s your reaction to the concern shown by Wall Street?
I have been tracking this for two years now. I talk with Wall Street people who are both investors and securitizers. I have said for the last year, maybe the last 18 months, that there are some deep subprime securitizations that were poorly put together and poorly structured. To that end, they are starting to fail. What I mean by that is the securitizers who had no experience in the underwriting or collection of this kind of paper, those who did not structure deals where they matched the right vehicle with the right customer, are failing and will continue to fail. Not all securitizations are bad. Th ere are many that are performing well. Those people who structured them right and those people who did do the right matching process, that paper continues to perform. But I think in the months ahead more of these poorly structured ABS transactions are going to surface. Th is is going to create an enormous opportunity for the buy-here, pay-here industry to get the customers and those vehicles back from the defaults that come out of these poorly structured deep subprime deals.
At the federal level, how informed — or misinformed — are regulators and lawmakers when it comes to how BHPH dealerships operate? What can be done to improve the situation?
There are some regulators that I would consider to be fairly well informed and others who are not. I don’t think it’s fair to generalize one way or the other. What I would say is the key To this is a continuing communication, which needs to exist between the industry leaders and the regulators to try to help more of them to have a clearer understanding of the importance of subprime auto finance industry in America today. How important of a source of transportation it is? Now at the end of the day as the leaders step up to do that — and I want to applaud NIADA’s efforts through their leadership conferences that NABD totally supports — it’s not going to be what NIADA does or what NABD does, it’s what the individual operators do. We’re going to be judged by their actions. If the industry is waiting for us to make all of the problems go away, that’s not going to happen. They’ve got to take compliance seriously. They’ve got to operate properly within regulatory constraints to do the right things or suffer the consequences.
The NABD is approaching 20 years of hosting the National Conference. What’s your assessment of the journey not only for the organization but for the BHPH industry during that span?
We want to thank the tremendous support from the many operators in the industry and other, our sponsors, people who are involved in the industry who have embraced and supported us over that journey. To them I say this: Buy-here, pay-here is a vital source of transportation in America. Without the buy-here, pay-here industry, millions and millions of Americans would not have any transportation at all and would have difficulty working and living. Buy-here, pay-here is a critical component of the American transportation system. Our consumers are car dependent.
Now NABD has championed the cause for the self-financed, buy-here, pay-here operators throughout its entire existence. We believe that the industry continues to need that type of representation. At the end of the day, we believe that the education and the training that we’re providing and offering have never been more important in this journey. The journey is not over. The journey continues.
What pearls of knowledge and wisdom would you like to leave with BHPH operators going into the second half of 2016?
I urge operators to stay the course, to get their capital and financial flexibility in order to continue in the highly competitive environment of today. I urge them to reconnect with their customers, which will help them regain market share. I urge them to take compliance very seriously and to get a compliance management system in place.
I would also say to them if they are not willing to get the education and training necessary to help them do those things, they need to expect the worst results. We’re at a time where you have to have more skill and more knowledge to navigate the course successfully than ever before. That cannot be attained by doing the same old things every day and expecting a different result.
DMS provider Wayne Reaves Software rolled out an enhancement to its current platform that can provide the capability for buy-here, pay-here dealers to furnish credit data to Equifax.
The companies highlighted on Monday that the technology enhancement allows for a streamlined reporting process, using a program provided by Equifax together with the National Independent Automotive Dealership Association and the National Alliance of Buy-Here, Pay-Here Dealers.
“Reporting credit data can benefit both dealers and their customers,” Wayne Reaves president Jason Reaves said. “On one hand, you have dealers who will be armed with a more comprehensive view of a customer’s loan payment history, improving their ability to assess risk. And on the other, dealers who report credit data can provide a compelling value proposition for their customers, as timely payments could help them build their credit.”
Reaves added the latest version of the tool will help to support compliance efforts with consistent and seamless reporting of trade line data.
The company mentioned the enhancement will also offer access to Automated Data View, an Equifax solution that can allow dealers to quickly view the accuracy of reported payment and collection information, in support of the consumer dispute process.
“Traditionally, many independent and buy-here, pay-here dealers have faced obstacles in reporting their customers' auto loans and payments,” said Ryan Guthrie, vice president enterprise alliances of Equifax. “Previously, dealers had to hold a minimum number of accounts, which can be difficult for smaller operations to meet.
To help overcome these barriers, we started a program last year to enable NIADA and NABD dealer members to report their loan payment data to Equifax, regardless of how many accounts they hold, and Wayne Reaves has now successfully automated the process,” Guthrie added.
Wayne Reaves will be at the 18th annual National Conference for BHPH this week in Las Vegas to train customers on how to utilize the platform and report auto loan payment data to Equifax.
With the discounted room block at the Wynn in Las Vegas set to expire on Sunday, Ken Shilson highlighted 10 reasons to attend the National Conference for BHPH hosted by the National Alliance of Buy-Here, Pay-Here Dealers.
Shilson, NABD’s president and founder, shared this list with BHPH Report on Thursday — less than three weeks before operators, accounting and legal experts as well as capital and service providers are set to gather during the 18th annual conference May 24-26. Without further ado, here are those 10 reasons Shilson pinpointed:
1. New regulatory developments they need to know.
2. Capital hour to find the funding they need.
3. Largest exhibit hall with all the latest products and services.
4. Several new sessions added this year.
5. The Wynn for $199 per night with no resort fees — an unprecedented discount.
6. First-timer reception with food and drinks.
7. Updated benchmarks/trend information.
8. Compliance moves to protect your operation now.
9. The only show exclusively for BHPH.
10. Best practices to regain market share.
More information about the conference — including the agenda, registration and links to discounted accommodations — is available at www.bhphinfo.com or by calling NABD at (832) 767-4759.
Shilson reiterated that NABD is a special industry group organized for the betterment of the BHPH industry nationwide, and has more than 13,000 members. Membership is obtained by attending NABD training and conferences, and members pay no annual dues.
“Our services are designed to complement and work with other automotive industry groups on matters pertaining to this segment of the automotive finance industry,” Shilson said.
The National Independent Automobile Dealers Association bolsters its stable of advisors who can help buy-here, pay-here operators.
On Tuesday, long-time auto industry veteran Mark Dubois joined NIADA’s recently expanded Dealer 20 Groups as its newest 20 group moderator.
Dubois has more than 35 years of experience in the automotive business, including sales, management, recruiting and training, e-business, marketing and BHPH management. Most recently, he was president of Dealer Performance and Consulting and moderator of its BHPH 20 Groups.
“We are excited to have Mark join the team of Dealer 20 Groups moderators," NIADA chief executive officer Steve Jordan said. “Mark’s addition allows NIADA to continue to offer something for every dealer, regardless of number of sales or time in business.”
Dubois will work with BHPH dealer groups as part of the NIADA 20 Groups operation acquired from Leedom and Associates late last year, joining national director of 20 Groups Chuck Bonanno and moderator David Brotherton.
“I am extremely pleased that Mark Dubois has decided to join our team at NIADA,” Bonanno said. "I've known Mark for some time and know he will bring great value to our current members and help grow our dealer base as he trains and educates independent dealers across the country through our Dealer 20 Groups program, training workshops and private consultations.”
A graduate of Northwood University, Dubois is a frequent speaker on BHPH issues at independent dealer association conventions and writes for industry publications on business analysis, operations, training and industry trends.
“I am honored to join the NIADA team,” Dubois said. “I look forward to working with Chuck, David and the entire NIADA staff to take the 20 Groups program to the next level.”
Ken Shilson, president and founder of the National Alliance of Buy-Here, Pay-Here Dealers is giving operators a free preview of some of the data, information and recommendations that will be highlighted during the organization’s National BHPH Conference that’s set for May in Las Vegas.
In this special webinar presentation, NABD will discuss five specific points during a session titled, “Navigating the Road to BHPH Success.” The one-hour event is set for March 30 beginning at 3 p.m. EDT.
The topics Shilson plans to cover include:
1. Changes and competition in the subprime auto finance industry today and what’s ahead.
2. How successful operators are competing to gain market share.
3. Your business model dictates your success.
4. Recent regulatory developments impacting BHPH operators.
5. How to protect your own operation from regulatory attacks.
After going through agenda, Shilson plans to have a Q&A segment so operators can pose their questions.
“This webinar will provide new insights into how to succeed in BHPH today,” Shilson said.
NABD also highlighted that webinar attendees will obtain special discounts to NABD’s 18th annual National BHPH Conference in Las Vegas. The event runs from May 24 to May 26 at the Wynn.
Webinar registration is limited and can be made by going to this website.
Here’s some good news for buy-here, pay-here operators who have interests in Wisconsin.
PassTime, Hudson Cook and Minneapolis-based law firm Reinhart Boerner Van Deuren recently met with the Wisconsin Department of Financial Institutions (DFI) to discuss how GPS and payment assurance technology functions as well as how the technology protects creditors and benefits consumers.
At that meeting, Passtime urged DFI to consider clarifying its position to allow the responsible use of the technology.
PassTime announced this week that DFI issued a new interpretive opinion, which states:
“Installation of a GPS and/or a device that is designed to remotely disable a vehicle is not illegal. However, use of this technology must comply with the Wisconsin Consumer Act in addition to any other laws that may govern the usage in a particular situation.
“This statement supersedes and replaces any previous statements or positions by the department on this issue.”
PassTime vice president of compliance and public relations Corinne Kirkendall described the impact this development could mean for BHPH operators in Wisconsin.
“As this technology enters the Wisconsin marketplace, we look forward to fostering the positive relationship with Wisconsin regulators that we have been able to establish,” Kirkendall said.
“When used in compliance with the Wisconsin Consumer Act (including complying with notice of default and cure requirements) and other applicable laws (including providing proper disclosures and obtaining consumer consent), we believe GPS and payment assurance technology will present a positive benefit for consumers and the automotive industry in Wisconsin,” she went on to say.
