America’s Car-Mart expanded its network of buy-here, pay-here dealerships, according to an announcement distributed on Tuesday.
The company said it reopened a store located in Tyler, Texas, lifting its total dealership count to 144. Car-Mart now has 13 dealerships in Texas.
Car-Mart added that bringing the store back in Tyler marked the fifth dealership opening so far in its 2019 fiscal year. The other locations coming into its portfolio included:
— Montgomery, Ala.
— Bixby, Okla.
— Fayetteville, Ark.
— Pryor, Okla.
The Tyler store will be managed by Colin Murphy, “one of our experienced general managers,” Car-Mart said.
Frazer, Wayne Reaves, DealerCenter and now Auto Master Systems (AMS).
All of those dealer management systems (DMS) now have an integration with AGORA, a Texas-based provider of technology solutions for the financial services industry.
Through the integration with AGORA finalized this week, officials explained dealerships and finance companies active on AMS will have their loan information concurrently available on AGORA, where they can securely select loan pools for bidding or financing from a national network of lenders that acquire loan pools or finance them on the AGORA platform.
The entire placement, bidding and acquisition of loan pools are completed inside the AGORA platform, without exposing private customer data, transaction activity and collection notes to outside parties.
“Auto Master is committed to providing best-in-class service to our customers and enabling them to utilize the most up-to-date auto finance technologies,” AMS vice president of sales Mike Downey said in a news release. “Partnering with AGORA aligns perfectly with our focus on adding value for our customers.”
The AMS/AGORA integration can allow the client to remove the need to run excel exports and manually uploading of data on a button push but will now run every night, ensuring the most up-to-date loan information is available.
Since its launch in April 2017, AGORA’s flagship loan exchange platform has quickly evolved within the secondary market for auto loans, allowing buyers and sellers to publish and exchange loan data directly in an efficient and secure environment without the need of intermediaries or brokers.
AGORA founder and chief executive officer Steve Burke highlighted the latest integration coincided with another company achievement.
Burke stated, “This month, we hit an important milestone of $3 billion in principal balance loans placed on AGORA.”
Burke mentioned the Auto Master integration is the fourth DMS integration, with two more planned this month with other leading DMS providers. AGORA management expects that in the next few months, AGORA will be fully integrated with DMS providers, covering more than 90 percent of the dealerships nationwide.
Burke reiterated AGORA was created in response to the many friction points and inefficiencies that exist in the manner that auto loan portfolios currently trade – namely poor and inconsistent data, lack of transparency from the brokers that previously dominated the market and heightened regulatory concerns over unsecured transmission of personal consumer data.
He then emphasized the importance of integrating with AMS.
“Protecting our dealers from exposing loan data when they make their portfolios available for sale and giving dealers more liquidity is the mission of AGORA,” Burke said. “Auto Master is an exceptional dealer management system, and we are excited to have them as one of our key integration partners who enable dealers to seamlessly and securely offer their loans for sale to our large network of member banks, finance companies and credit unions — avoiding unsafe emails of data files.
“The Auto Master integration continues to expand AGORA’s ability to help sellers sell faster, sell more profitably and sell securely,” he continued.
Burke went on to say, “Soon, all dealers will be asking ‘Does my DMS do this?’”
For more details, visit www.agoradata.com or call (877) 592-4672.
Just before the holiday rush climaxed, the National Independent Automobile Dealers Association enhanced its roster of National Member Benefit Partners with two providers that can help dealerships make vehicles more attractive on their lots or to dispose of inventory that just didn’t turn as planned.
The two companies now collaborating with NIADA as partners include auto inspection and reconditioning software provider AutoMobile Technologies (AMT) as well as Remarketing by Element, a provider of timely, cost-efficient asset disposition.
No doubt, buy-here, pay-here operators have seen franchised dealerships in their market with bold signage highlighting certified pre-owned vehicles. Now BHPH dealers can offer similar vehicles to their customers by using AMT’s digital inspection software available to association members and enabling them to designate select vehicles with certified pre-owned status.
AMT’s technology can deliver mobile vehicle inspection and auto reconditioning management services to independent dealers with a powerful, mobile-enabled, innovative, easy to implement, efficient and customer-centric vehicle inspection reporting resource to NIADA Certified dealers, enhancing inventory listing differentiation and customer trust through the digital or physical lot.
AMT’s InspectionNotes software can enable the association’s members to complete the comprehensive 125-point NIADA Certified vehicle inspection electronically and generate digital and paper condition reports for the certification.
That process can allow dealers to integrate CPO inspections into their existing intake and reconditioning operations, and provide the value and security of CPO designation to their customers while increasing margins and decreasing turn time.
“We are proud to join with NIADA in providing its members the ability to offer NIADA Certified vehicles to their customers,” AMT executive vice president of operations Eric Meahan said.
“We have seen the competitive advantage CPO vehicles have given our franchise clients, benefiting them in both revenue and customer satisfaction. The NIADA Certified program allows independent dealers to level the playing field with a similar solution,” Meahan continued.
“We applaud NIADA for adding this valuable program to its member services offerings,” he went on to say.
The InspectionNotes software can allow technicians to scan a VIN on their mobile phone or tablet to begin the process, which takes them through a series of questions, ensuring each required item is inspected and verified. The resulting report is delivered in PDF format that can be loaded to website listings, emailed or printed to share with buyers.
InspectionNotes is a component of AMT’s ReconMonitor software, which can give dealerships visibility, command and control of the entire reconditioning process from acquisition to front line and every step along the way.
“AMT brings an innovative commitment to the best in market technology, ease of use and corresponding profitability for our dealer members on the front and back end of their stores,” NIADA senior vice president of member services Scott Lilja said.
“For our CPO dealers in particular, the mobile inspection solution is a huge enhancement over the current manual process, enhancing productivity, quality and ability to display both on the physical and digital lot,” Lilja continued.
For more information, visit https://amt.company.
Remarketing by Element Partners with NIADA
Remarketing by Element also has joined the National Independent Automobile Dealers Association’s network of National Member Benefit partners.
Remarketing by Element is connected with more than 150,000 used vehicles sold annually at auctions throughout North America, leveraging technology through its national auction network.
“We’re excited to be working closely with NIADA, a highly respected industry association, to provide asset disposition services to qualifying dealer members,” Element executive vice president of asset remarketing Paul Seger said.
Through the partnership, qualifying NIADA dealers can sign up to be represented by Remarketing by Element at wholesale auctions nationwide.
Once approved, NIADA member dealers will receive prime lane placement in Remarketing by Element’s fleet/lease lane, on-site representation of their vehicles at auction and promotions that attract one of the largest buyer groups in the wholesale auto industry, both in-lane and online.
“This new NIADA Member Benefit Partnership with Element Fleet Management is a huge win for our member dealers,” Lilja said.
“Leveraging Element’s scale of vehicle remarketing volume, deep auction partnerships and on-site auction representation, along with ongoing incentive programs, represents tremendous value to our members in an area of their business that has been a major challenge over the past couple of years,” he went on to say.
For more information, visit remarketingbyelement.com/dealers.
A finance company your buy-here, pay-here operation might leverage enhanced its relationship with the National Independent Automobile Dealers Association.
According to an announcement distributed this week, Lobel Financial has improved its longstanding affiliation with NIADA by becoming the association’s most recent Bronze-level National Corporate Partner.
Lobel Financial is a source of full spectrum auto and light truck financing, streamlined for independent, franchised and BHPH dealers. The company said it knows supporting NIADA is helping the used-car industry as a whole, and that’s what it’s here to do.
“NIADA is excited to recognize Lobel Financial’s value to the industry after conducting its due diligence,” NIADA senior vice president of member services Scott Lilja said.
Lobel emphasized that its goal is to assist dealers with the tools needed to run a successful and profitable dealership.
“The assessment of any successful long-term business relationship,” chief executive officer Harvey Lobel said, “is knowing it benefits both partners.”
Lobel Financial is a regional lender with local branch offices in the markets it serves. The company provides capital to dealers for the acquisition and servicing of motor vehicle retail installment sales contracts.
Lobel can issue instant, automated approvals 24/7 and prompt ACH funding. Using its DMS platform can increase dealer efficiency, allowing for sales growth and meeting profit objectives.
“The company is dedicated to providing its dealer-partners with a simple, reliable financing solution that meets their needs,” Lobel business development team lead Joe Torres said.
NIADA members receive priority funding when contracts are received within 48 hours of approval using their NIADA member ID number as the promo code.
For more information, visit www.lobelfinancial.com.
Dealerships are leveraging NextGear Capital for more than just inventory they want running down the auction lanes.
The Cox Automotive company recently highlighted that it has financed more than $1 billion through the first three quarters of the year for non-auction purchases via its funding feature, Rapid Pay.
NextGear Capital insisted the adoption of this feature reflects dealers’ growing use of digital technology to maintain cash flow and enhance business operations.
NextGear Capital introduced Rapid Pay two years ago to streamline the flooring process for vehicles purchased outside the auction, such as customer trade-ins and owned inventory. Since then, the company stressed that it has proven to be the simplest way for clients to secure funds quickly.
“Rapid Pay enhances dealers’ ability to assemble inventory desired by customers without holding costs eating into their profits,” said Sarah Lutey, director of corporate strategy for NextGear Capital. “This online process is just one more way we can help our clients manage and grow their operations.”
In addition to Rapid Pay’s 2018 milestone level of inventory financing, NextGear Capital data revealed more than 70 percent of its clients used the feature at least once, while 58 percent used it to floor half or more of their non-auction purchases.
In fact, the company added that the feature has proved so easy to use that 39 percent of NextGear Capital dealers used it to floor all of their vehicles purchased outside of the auction.
The company reiterated the main capabilities of Rapid Pay, including:
— Faster funding for non-auction purchases: Prioritized Rapid Pay and expedited funding requests can enable dealers to accelerate the non-auction flooring process. Requests are independently initiated through a dealer’s account portal, accessible via computer or mobile device, and don’t require a representative to complete. Once approved, funds are promptly deposited through ACH into a dealer’s account.
— Simple title management: A pre-paid FedEx waybill (provided by NextGear Capital at no cost) to submit title for a non-auction purchases floored through Rapid Pay.
— Additional visibility: A client can immediately view the status of a non-auction vehicle funding request after it is submitted through Rapid Pay.
“The adage ‘time is money’ is more relevant than ever for dealers,” Lutey added.
For more information about Rapid Pay, go to this website.
For the 2017 National Independent Automobile Dealers Association Quality Dealer of the Year, having a way to accept cash safely for payments on retail installment contracts is crucial to operating its store efficiently and safety.
And now a tool that can help buy-here, pay-here dealerships of all sizes has been enhanced.
QuotePro and Fiserv recently announced that they are facilitating faster, next-day availability of funds and helping mitigate security concerns for businesses that accept payments in cash.
QuotePro Kiosks are the latest generation of self-service machines that can provide a complete cashiering solution to businesses that accept payments via cash, check, credit and debit card. QuotePro data from more than 100 kiosks at businesses ranging from dealers to utilities and insurance companies shows that when given a choice between cash, check, credit and debit card, 70 percent of consumers paying at these kiosks are choosing cash.
Providing faster access to the cash deposited in a kiosk is where Fiserv can help. Its CorPoint cash management solution can capture cash transaction data from the kiosk, enabling banks to provide provisional credit for cash deposited at a business location.
“Rather than waiting for cash to be manually deposited at the bank by staff or having an armored car service to empty the kiosk, process and deposit the cash into the business’s bank account, the provisional cash capability enabled by Fiserv technology allows for next-day availability of funds,” QuotePro chief executive officer Marco Freudman said.
“That helps eliminate risk and improves cash flow. Our business clients have been asking for this capability, and we see it as a game-changer,” Freudman continued.
Texas Auto Center is one of the first businesses to roll out the new capability. The operation was the 2017 NIADA Quality Dealer of the Year.
“We love our QuotePro Kiosks because they help eliminate the need for staff to handle cash, reduce errors and security concerns associated with cash payments, and they can make change. Adding provisional cash services makes it a complete solution for us,” Texas Auto Center chief financial officer Mona Rodriguez said.
“It substantially reduces our cash risk and improves availability to next day. We can reduce the frequency of armored car pick-ups and still have access to our cash flow,” Rodriguez contined.
Pat Korb, president of financial and risk management solutions at Fiserv, elaborated about the collaboration.
“For many retail businesses, cash is the dominant form of payment and innovations in self-service and technology help reduce the burden of managing cash payments,” Korb said.
“Faster access to funds, reduced overhead and enhanced security are key benefits for businesses, and consumers appreciate the flexibility and convenience to pay in the way they prefer,” Korb went on to say.
Dealers can visit quotepro.com for more information.
This week, Equifax and the National Independent Automobile Dealers Association shared noteworthy results from their Q3 Auto Business Outlook, which stems from operators participating in a quarterly survey.
Equifax and NIADA highlighted that three general themes surfaced from the latest edition. Those elements included:
— Independent dealers remain optimistic heading into 2019.
— The buy-here, pay-here market shows growth.
— A continued shift is happening from new-vehicle sales and leases to used-car transactions.
Officials shared results from specific survey questions, including:
Overall, does your dealership expect economic conditions to improve, stay the same, or decline in the auto industry over the next quarter?
2018 Q3: 47 percent said they would improve
2017 Q3: 36 percent said they would improve
Does your dealership plan to expand its business over the next quarter? (add new equipment, enhance your building/property)
2018 Q3: 32 percent of dealers said yes
2017 Q3: 30 percent of dealers said yes
What percentage of the following categories makes up your total retail automobile sales?
2018 Q3: 37 percent in prime / 37 percent in BHPH / 26 percent in subprime
2017 Q3: 39 percent in prime / 33 percent in BHPH / 28 percent in subprime
Do you anticipate your dealership’s retail sales to grow, stay the same or decrease over the next quarter?
2018 Q3: 56 percent said they would grow, while 36 percent said the same and 8 percent suspect a decrease
2017 Q3: 55 percent said they would grow,while 34 percent said the same and 11 percent suspect a decrease
When it comes to factors contributing to more difficulty for dealers to secure loans for their customers, operators cited the following:
40 percent: tighter restrictions to qualify buyer loans (credit tiers)
25 percent: less access to number of lenders
25 percent: worsening terms affecting ability to effectively compete with franchised dealers
14 percent: more verification of buyers’ background (employment, income, residence address, etc.)
While 2016 was a record-setting year for new-car sales, Equifax pointed out that at the midway point of 2018, used-vehicle sales are continuing a shift that started last year and are on pace to match a strong 2017.
Analysts indicated the shift to used vehicles is also behind an increase in loans and a decline in the leasing market. Equifax noted that the nearly 2 million auto leases, totaling $32.4 billion, originated through the first half of 2018 reflects a 1.2-percent decrease in accounts and a 2.9-percent decrease in balances from the same period last year.
Equifax added that new-model leases accounted for only 13.8 percent of all auto accounts originated through June and 10.4 percent of balances.
Gunnar Blix, deputy chief economist for Equifax, explained that despite a pace of new sales that is slightly off the record-setting mark of 2016, car shoppers overall are financing more — a clear reflection of the continued increase in the price of cars and trucks and the starting impact of rising interest rates.
“We see the shift from new-vehicle sales activity to more used vehicles continuing, largely because the shopper knows the price of autos is going up, and they realize they can find bargains on slightly used, off-lease vehicles that are readily available,” Blix said. “Interest-free loan and lease incentives are also becoming few and far between.”
The Insurance Research Council (IRC) might have uncovered another market challenge for buy-here, pay-here operators who sell vehicles in Louisiana, which already ranks near the top for deliquencies.
According to a new study from the IRC, Louisiana ranks No. 1 on a list of least affordable states for auto insurance. Study orchestrators found that key cost drivers of the state’s high insurance rates include the frequency of auto accidents and resulting injury claims, as well as the prevalence of attorney involvement and litigation.
IRC calculated that Louisiana’s affordability index (2.64 percent) was the highest in the U.S. from 2011 to 2015. The affordability index is the ratio of average expenditures on auto insurance to median household income.
And also of note, the latest data from Experian Automotive showed Louisiana ranked second nationally for both 30-day and 60-day delinquency. Experian indicated the rate for 30-day delinquency rate in Louisiana during the second quarter was 3.28 percent. The 60-day rate stood at 1.08 percent.
Turning back to the IRC study, the report again showed one factor behind the high cost of insurance in Louisiana is the frequency of auto accidents and resulting insurance claims. In 2017, Louisiana had the highest bodily injury (BI) liability claim frequency in the country (1.75 claims per 100 insured vehicles, almost double the countrywide rate of 0.90 claims per 100 insured vehicles).
IRC went on to mention another important factor is the propensity of Louisiana claimants to hire attorneys and file lawsuits. Among 2017 BI claims, 54 percent of Louisiana claimants hired attorneys, compared with 48 percent of claimants in other states.
Moreover, Louisiana claimants were 60 percent more likely to file lawsuits (16 percent compared with 10 percent countrywide).
“The affordability of auto insurance is an important issue in Louisiana and many other states,” said Elizabeth Sprinkel, senior vice president of the IRC. “As policymakers seek to address this issue, it is vital to have an understanding of the cost drivers that underlie variations in the cost of auto insurance for consumers.”
The report, “Auto Insurance Affordability: Cost Drivers in Louisiana,” combines information from IRC closed-claim research and other sources and is part of IRC’s ongoing research into the factors driving the affordability of auto insurance.
For more information on the study’s methodology and findings, contact David Corum at (484) 831-9046 or at IRC@TheInstitutes.org.
An announcement from the Credit Union National Association (CUNA) detailed how buy-here, pay-here dealers in two states might see more competition from a specific credit union.
The organization indicated the Community Development Financial Institutions (CDFI) Fund orchestrated by the U.S. Department of the Treasury awarded Cutting Edge FCU (CEFCU) a $600,000 in grant funding to expand the credit union’s affordable used-vehicle program for low-income members.
CEFCU has branch offices in Milwaukie, Ore., and Lewiston, Idaho.
Officials indicated CEFCU could impact a projected 921 consumers with its enhanced used-vehicle program through 2022.
Approximately 80 percent of consumers in CEFCU’s area rely on a car to drive to work, according to a news release.
Because many individuals in these particular communities have lower earnings, tighter cash flow and challenged credit, CEFCU indicated these individuals often use BHPH dealers, check cashers and payday lenders when they need credit.
“It’s no secret that reliable transportation provides access to jobs, and allows families to work extra shifts,” CEFCU chief executive officer Brady Howe said. “Unfortunately, many families are disadvantaged because of limited public transportation and the unwillingness of some financial institutions to serve the lower-income, credit-challenged and unbanked.
“This damages the community, considering many families here are minimum-wage workers more likely to fall victim to predatory auto-loan programs,” Howe continued.
“CEFCU is honored to have been selected to receive this important source of funding,” he went on to say. “We’re beyond excited for the opportunity to continue to live the credit union mission to serve the underserved.”
Alongside its increased capacity to serve its low-income members, CEFCU added that it continues to move forward on a new program aimed at improving overall financial wellness. The credit union’s outreach will be performed in conjunction with its community partner, Exceed Enterprises, an organization that works with people of diverse abilities.
The Treasury’s CDFI Fund makes capital grants, equity investments and awards for technical assistance to certified CDFIs. It was funded at $250 million for fiscal year 2018, which CUNA successfully fought for earlier this year.
America’s Car-Mart expanded its buy-here, pay-here store footprint this week.
The chain announced the opening of two new dealerships located in Montgomery, Ala., and Bixby, Okla. The expansion brings the company’s dealership count to 143 with four new dealership openings occurring during its 2019 fiscal year.
Car-Mart indicated the Montgomery dealership will be managed by Pedro Mendez, with the assistance of Bill Bennett, and the Bixby dealership will be managed by Jack Pew, with the assistance of Nate DeGraff.
The company noted this will be the second dealership managed by Mendez and the third dealership managed by Pew “as we look to expand our number of customers served by our top-performing general managers.”
