With the National Alliance of Buy-Here, Pay-Here Dealers (NABD) hosting its Buy-Here, Pay-Here Subprime Conference with the National Independent Automobile Dealers Association this week in Las Vegas, two GPS providers rolled out enhancements to their suite of tools.
Spireon introduced GoldStar Connect, a full-featured connected car mobile application designed to give BHPH dealers and subprime auto finance companies the opportunity to increase customer loyalty and profitability.
Meanwhile, PassTime announced the launch of its ELITE 6 device, the next generation of its award-winning Elite line of GPS solutions.
PassTime and Spireon each had a presence this week as operators from throughout the country are congregating at the MGM Grand in Las Vegas for three days of networking and training.
As the newest addition to the GoldStar GPS solution suite, Spireon highlighted GoldStar Connect can help dealers and finance companies recoup the cost of GPS, while also increasing value, convenience and safety for consumers.
Dealers and finance companies use GoldStar to stay connected to their customers in order to facilitate payment collection, monitor default predictors and streamline recoveries when necessary. With the new GoldStar Connect mobile app, consumers now can have access to all the benefits of connectivity — real-time location access, trip history, vehicle health alerts and recovery solutions for stolen vehicles — as an add-on at the time of purchase.
“In marrying the GoldStar solution with a consumer-facing mobile app, our dealer and lender customers not only improve asset management and protection, but also can offer their consumers a significant value add—modern connected car benefits regardless of the vehicle make, model and year,” said Reggie Ponsford, senior vice president of sales at Spireon.
“We have had a number of larger BHPH dealers piloting the GoldStar Connect solution in the past few months and seeing up to 90 percent consumer sell-through,” Ponsford continued.
With GoldStar Connect, consumers can gain a host of added benefits with their vehicle purchase, including:
— Safety and security: GPS tracking and geofencing capabilities can enable consumers to know the location of the vehicle at all times, helping to ensure the safety of the vehicle and the driver.
— Trip history: Provides visibility to the activity of the vehicle by date, time and duration.
— Smart alerts: Consumers can receive notifications of speeding, geofenced locations and battery condition directly to their mobile devices.
— Stolen vehicle recovery: An in-app recovery guide can provide vehicle location data and instructions to assist in reporting and recovery of a stolen vehicle.
— Insurance discounts: Many carriers provide discounts of up to 15 percent.
“Consumers want connected vehicle features and benefits, and the app helps dealers and lenders build customer loyalty while also driving additional revenue and margin,” Ponsford said. “By bundling the purchase into the vehicle loan, it’s seamless and easy for dealers and buyers.”
GoldStar Connect is available now, according to the company. To learn more, visit www.spireon.com/connect.
“We’re excited to help our customers in the vehicle finance industry evolve their thinking about GPS from solely managing risk to now providing an opportunity to increase consumer loyalty and profitability,” said Brian Deeley, director of product management at Spireon.
“The GoldStar solution is trusted by more BHPH dealers than all of our competitors combined. The addition of GoldStar Connect creates even more distance between Spireon and the rest, maintaining GoldStar as the GPS gold standard for BHPH,” continued Deeley, who will be leading a panel discussion about connecting customers with GPS during Used Car Week 2018, which begins Nov. 12 at the Westin Kierland Resort and Spa in Scottsdale, Ariz.
Early bird discounts are available through Oct. 16 by going to www.usedcarweek.biz/register.
Developments at PassTime
As mentioned, PassTime announced the launch of its ELITE 6 device, the next generation of its award-winning Elite line of GPS solutions.
PassTime highlighted Elite 6 offers the most versatile and advanced installation capabilities of any product in its history. With a unique, installer-configurable starter-interrupt setup option, installers can now easily integrate Elite 6 into a much broader selection of vehicles.
The company noted the highly flexible setup configurations also can allow Elite 6 to more easily address the challenges posed by newer ignition technologies found in push-button start vehicles as well as many advanced stop/start engine systems.
“As automotive technology continues to advance, GPS solutions need to be flexible in the way they can be installed in a vehicle. Over the last several years, the automotive industry has seen vehicle ignition systems evolve far more rapidly than ever before. Quite frankly, any GPS provider that isn’t innovating in this area is falling behind,” said Todd Goodnight, PassTime’s executive vice president of product management.
Elite 6 also features LTE communications for superior network longevity as well as a discrete, precision GPS system for enhanced location pinpointing.
In addition to the advancements in installation flexibility, PassTime went on to point out Elite 6 also boasts a 20-percent size reduction making installation easier than ever before.
Further, Elite 6 contains advanced self-override features that can give consumers multiple options, including a mobile app, to utilize disable override commands.
The company said Elite 6 will begin shipping to PassTime customers in early November.
For more information, contact PassTime at (877) 727-7846 or info@passtimegps.com.
A leading provider that helps buy-here, pay-here dealers track their vehicles as defaults and repossessions arise now is getting involved with a firm that’s been providing another way for buyers to generate down-payment funds.
This week, HyreCar, the carsharing marketplace for ridesharing, through its alliance with DriveItAway and its dealer-focused shared mobility mission, announced a strategic partnership with PassTime, a leading provider of GPS solutions. The companies explained this partnership offers advanced vehicle asset tracking and management to dealers and fleet owners who are leveraging Mobility-as a-Service (MaaS) through the HyreCar platform.
HyreCar can offer retailers a tool allowing dealers to enter and learn the MaaS business. This gives dealers the opportunity to profit from the growing need for vehicles of rideshare drivers, while simultaneously giving rideshare drivers a “Path to Ownership” for a vehicle purchase.
DriveItAway’s “Drive for Your Down Payment” program can provide ridesharing drivers the ability to earn a down payment for their vehicle through driving for ridesharing services like Uber and Lyft, through dealer rentals.
“As we see an increasing demand in the ‘Path to Ownership’ program through our partnership with DriveItAway, it became clear that our dealer partners needed access to a more comprehensive MaaS solution with asset tracking and management,” HyreCar chief executive officer Joe Furnari said.
“As one of the leaders in telematics for over 25 years, PassTime was a natural fit to give our dealers the leveraged advantage that they need to maximize opportunities in this space,” Furnari continued.
PassTime has set up a special-order portal for DriveItAway-HyreCar dealers to procure vehicle telematics units and will be integrating all of the PassTime telematics services within its dealer focused vehicle administration platform for easy vehicle specific applications.
“PassTime is excited to enter the emerging shared mobility market through its strategic partnership with DriveItAway and HyreCar,” said Kevin Carr, vice president of financial services at PassTime.
“We look forward to providing dealers with a turnkey solution, leading the way through the application of our telematics innovations,” Carr continued.
Operators can get some treats ahead of Halloween as the biggest buy-here, pay-here specific event of the year is headed back to Las Vegas.
The NABD Buy-Here, Pay-Here Subprime Conference, powered by the National Independent Automobile Dealers Association, is set for Oct. 8-10 at the MGM Grand in Las Vegas, offering the industry’s best BHPH-specific training for both new operators and BHPH veterans.
The conference features education from the BHPH experts at the National Alliance of Buy-Here, Pay-Here Dealers and NIADA, including Ken Shilson, Ingram Walters and Chuck Bonanno, as well as top names from the subprime sphere.
Attendees will learn about new industry technology, the latest marketing strategies including digital marketing, collections and underwriting, and best practices that work today – and in the future.
There are also opportunities to network with industry experts, explore ways to secure capital to fund your operation, get updates on compliance and legal issues, and check out an exhibit hall filled with the latest products and services to improve any BHPH business.
“NABD continues, bigger and better than ever,” said Shilson, NABD president and founder. “You can't afford to miss this event. Opportunity knocks for BHPH operators who capitalize on it — and this conference will show you how to do it.”
The discounted early registration rate of $495 per person applies through Sept. 22. Group discounts are also available.
For more information or to register, visit www.nabdsubprimeconference.com or call (832) 767-4759.
Auto finance companies and buy-here, pay-here dealers are seeking to adopt more advanced and scalable GPS systems for risk mitigation. But Procon Analytics acknowledged this trend brings the inefficient process of managing both new GPS systems plus old devices that use legacy embedded technology.
On Tuesday, Advantage GPS, a Procon Analytics company that can capture and translate raw data into actionable business intelligence, introduced its latest platform addition, a patent-pending All Access feature, that is designed to eliminate this issue.
The company explained All Access can allow auto finance companies and BHPH operators to view and access all GPS devices in their business portfolio via the Advantage GPS application, regardless of the GPS system provider.
Currently, Procon Analytics pointed out that it can be cumbersome for dealers and finance companies to manage devices from two or more GPS providers. While trying to avoid the hassle of learning yet another system or remembering more passwords, Procon Analytics noted that many operations remain tethered to old GPS providers who are no longer innovating and continue to use outdated technology riddled with issues.
The new patent-pending All Access feature by Advantage GPS is geared to overcome these barriers to advancement. All Access can allow auto finance companies and BHPH dealers to embrace their GPS system of choice by helping them seamlessly manage all of the GPS devices across multiple providers in their risk mitigation portfolio.
And, operations now have more flexibility, more convenience and more control over their device management process, according to David Meyer, chief operating officer of Procon Analytics.
“In a world of multiple apps and passwords, our new patent-pending All Access feature brings unprecedented convenience to customers using GPS tracking technology to manage their highrisk auto loans,” Meyer said.
“All Access allows customers to take advantage of the latest innovations available in our proprietary artificial intelligence-infused dashboard and 4G LTE platform, while simultaneously managing their entire device portfolio — regardless of brand,” he continued. “There’s only one destination for auto lenders to remember now when managing risks. It’s Advantage GPS.”
With patent-pending All Access, auto finance companies and dealerships can view vital information for all GPS provider accounts, including borrower name, address, year, make and model of vehicle purchased, VIN and serial number of devices.
All Access also can allow operations to seamlessly navigate into any vehicle record, on the fly, from the Advantage GPS application view.
“This latest feature, just like everything else we do, is about listening to customers and being nimble to solve their problems with our scalable platform that is not limited or stagnated by old technology,” Meyer said.
“Innovation and service is what customers get when they partner with Procon Analytics, the innovators in automotive telematics,” he went on to say.
Serving nearly 500 auto finance companies with more than 300,000 connections, the intelligent Advantage GPS platform utilizes innovative, connected and AI-infused technology to deliver real-time analytics upon login and the latest All Access feature.
“Advantage GPS is constantly evolving based on the automotive finance industry’s needs, technological advances, and economic drivers and legislative trends,” the company said.
More details can be found at proconanalytics.com.
Along with elaborating a bit about his upcoming retirement, America’s Car-Mart chief executive officer William “Hank” Henderson described how underwriting tightening in other areas of the auto-finance market is benefitting the chain of buy-here, pay-here dealerships.
The market change is improving not only the caliber of customer Car-Mart saw during the first quarter of its 2018 fiscal year that ended on July 31, but also the quality of vehicles the company is able to stock at its 140 stores.
“We’re seeing some customers circle back,” Henderson said during Car-Mart’s quarterly conference call with investors. “They’ve been over there and tried the other side, and now they’re back. And I think that’s evident and actually our sales for peak customers is maybe at an all-time high. It’s very high during this first quarter.
“And then also I think we’re, as we mentioned, doing a little better job with our inventory, seeing some improvements there. And so I think all those things combined help push up the store productivity,” he continued.
Car-Mart posted increased sales volume productivity with 28.2 retail units sold per store per month, up from 27.9 for the prior year quarter.
All told, the company’s stores retailed 11,837 vehicles during the quarter with an average retail price of $10,386.
“We are pleased with our continuing efforts to improve the quality of our inventory and improve inventory turns and efficiencies, and these efforts are having a positive effect and will continue to benefit us as we move forward,” Car-Mart president Jeff Williams said.
“We will remain aggressive with our inventory management, but we will ensure that we have a good selection of quality cars, trucks and SUVs in our dealerships to attract our target customer,” Williams continued.
“As credit gets a little tighter in the markets above us, the flow of product then in our market becomes much better,” he went on to say. “We’ve been in a period for several years now where the flow into our markets has been stuck. It's maybe the new-car dealerships because that financing has been available.
“So as it tightens up, we get a better flow of products, and we get to start cherry-picking a little bit,” Williams added.
A few other metrics of note from Car-Mart’s Q1 performance included:
—Gross profit margin percentage decreased to 41.4 percent from 41.8 percent for the prior-year quarter.
—Net charge-offs as a percent of average finance receivables stood at 6.4 percent, up from 6.2 percent for prior-year quarter.
—Accounts more than 30 days past due increased to 4.6 percent of the portfolio, up from 4.4 percent at close of the previous year’s quarter.
—Provision for credit losses came in at 26.6 percent of sales versus 25.7 percent for prior-year quarter.
More on executive transition
As BHPH Report previously published, Car-Mart also announced Henderson will retire as CEO at the end of the year with Williams replacing him. Henderson discussed the move again during the conference call.
“It has been an incredible fantastic experience to be part of such a great team of people to help and build and grow this company into what is today, and I feel truly blessed to have had this opportunity,” Henderson said.
“Tremendous amount of gratitude to the hard working dedicated people with such high characters that I have been so very fortunate to work with throughout this time,” he continued. “We’ve been through some great times, and we’ve been through some very challenging times all along the way.
“They fought hard to preserve our company culture, and I cannot even begin to ever thank them all enough for their tireless efforts,” Henderson went on to say.
An analyst asked about who might take Williams’ position as chief financial officer and whether it will be a candidate from within the company or if Car-Mart might choose someone from outside its current executive ranks.
“We are in the process, and we’ll have some news for you guys just as soon as we can,” Williams said.
During this week’s National Conference hosted by the National Alliance of Buy-Here, Pay-Here Dealers, Spireon mingled with hundreds of dealers and rolled out the latest version of its GoldStar GPS solution, offering dealers and finance companies that specialize in deep subprime underwriting what the provider says is an easy and efficient approach to mitigate risk while sustaining growth.
The new GoldStar GPS solution includes several key updates and features, including:
—Redesigned user interface: Offers a faster, more intuitive user experience
—Excessive mileage reporting: New reporting feature provides early warning of driver behavior that may accelerate the devaluation of assets
—Easy recovery link: One-step recovery process, enabling faster, more effective recovery workflows
—New mobile app: New GoldStar Connect app offers real-time location tracking, geofencing, speed alerts and other connected vehicle benefits
—Redesigned hardware: Improved GPS unit features a slim, re-engineered form factor and increased durability for extreme temperatures and tamper protection
—LTE Coverage: Additional device option offers more comprehensive service, improved wireless reception and better signal reliability, while future-proofing the investment
The company’s senior vice president of sales for automotive solutions Reggie Ponsford was one of the wide array of experts NABD collected to appear on panel discussions and facilitate question-and-answer segments during the conference that took place at the Wynn|Encore in Las Vegas. Like many of the specialists looking to help BHPH rebound after several years of difficult challenges, Ponsford emphasized what solutions like what Spireon offers can do.
“Buy-here, pay-here dealers must carefully manage cash flow and protect their assets while growing their business during some of the most challenging economic conditions they’ve ever faced,” Ponsford said.
“GoldStar allows dealers and lenders to extend more credit and increase sales volume while efficiently mitigating risk,” he continued. The peace of mind that comes with more predictable revenue is invaluable, which is why more than 15,000 businesses trust GoldStar.”
One of those businesses is run by Michael Harris, who has a J.D. Byrider location in Tuscaloosa, Ala.
“In our business, the most important factor in every decision is making sure the lender has peace of mind. Spireon’s GoldStar allows us to achieve this, making the product truly invaluable,” Harris said.
Spireon offers three different GoldStar packages with varying levels of service, allowing users to scale based on individual needs. The updated GoldStar solution will be available in June.
“GoldStar has always been the gold standard in GPS, and now, with the latest enhancements, it is by far the most versatile, mobile-friendly, workflow-efficient GPS software in the industry,” said Sunil Marolia, vice president of product management at Spireon.
“Plus, it’s built on Spireon’s award-winning NSpire platform that delivers unmatched reliability and performance. No other GPS product comes close to the value that GoldStar delivers to our customers,” Marolia went on to say.
To learn more about GoldStar, go to www.spireon.com/goldstar.
Recent press about subprime auto loan performance has highlighted concerns about this market segment. Some has said, “The Federal Reserve recently expressed concern that delinquencies among auto borrowers with weak credit has been rising.”
A recent article in USA Today entitled, “It’s Tougher to Get a Credit Card, Car Loan,” noted that the number of subprime auto loans (those requiring a FICO score of 600 or lower) that were at least 90 days late on payments hit the highest level since 2010 in the third quarter of 2016 at 6 million, according to the New York Fed. The bulk of bad loans were by auto finance companies rather than banks, officials said.
In February, Wall Street analyst Wolf Richter published an in-depth report and analysis called, “Seriously Delinquent Auto Loan Surge,” which provides some excellent insights into the causes and predicts what may be ahead. Here are some excerpts from his article:
“Auto loan balances in 2016 surged at the fastest pace in the 18-year history of the data series,” the report said, driven by the highest originations of loans ever. Alas what the auto industry has been dreading is now happening. Delinquencies have begun to surge.
At $1.112 trillion (or $1.6 trillion according to the New York Fed) they’re now 35 percent higher than during the crazy peak of the prior bubble. No way is this an auto loan bubble. Not this time. It’s sustainable; Or at least containable when it’s not sustainable. These ballooning loans have made the auto boom possible.
“Seriously delinquent” auto loan balances, composed of all loans 90 days or more past due rose in Q4 of 2016 to 3.8 percent of total auto loan balances. That puts them right between Q1 and Q3 of 2013, as auto credit was recovering from the financial crisis.
Those seriously delinquent auto loans are an indication of what is next, Richter said: “Losses at auto lenders, particularly those specializing in lending to subprime borrowers, but also other lenders, including captives such as Ford Motor Credit, which has already warned in its most recent outlook that ‘we continue to see credit losses begin to exact their pound of flesh from the lenders.’
“Some specialized lenders might keel over. Larger lenders with good quality loan portfolios will bleed but go on while tightening their underwriting standards in order to weather the storm, and that’s precisely what the auto industry is dreading – tightening credit.”
The auto boom over the past few years was funded by historically low interest rates and loosey-goosey underwriting, with loan terms and loan-to-value ratios often over 120 percent. They made everything possible, but they infused $1.1 trillion in auto loans with some very bad risks.
So it’s all there — the ingredients for bigger losses among banks and investors, a few failures of smaller specialized lenders and belated credit tightening, both out of necessity and due to lower competition among lenders as some of the most aggressive ones will be licking their wounds.”
As president of the National Alliance of Buy-Here, Pay-Here Dealers (www.bhphinfo.com) and Subprime Analytics (www.subanalytics.com), I have been tracking and analyzing subprime and deep subprime market performance for the last 20 years and annually publish industry benchmarks. As such, I agree with the aforementioned analysis and the reasons that subprime delinquencies are now increasing. I also agree that we are not headed for another subprime mortgage crisis with subprime auto paper. A new credit loss measurement standard requiring lenders and borrowers to increase bad debt loss reserves, for all receivables in the future will convert the aforementioned delinquencies into bad debts.
However, if you are an independent used car operator who refused to match the “underwriting aggressiveness” in the markets during the last few years, this bad news creates some exceptional new opportunities to regain market share and increase future profits. The pain suffered by the increased level of defaults in subprime auto finance can result in gains for those who capitalize on them.
In order to capitalize on this opportunity operators must avoid making the same mistakes which caused the past performance problems. Specifically, longer loan terms, lower down payments, loose underwriting, higher amounts financed, and too much vehicle for too little customer, are all recipes for failure, not success! Therefore, operators must embrace changing their approach and implement more prudent underwriting strategies in the future to prosper!
At the 19th Annual BHPH Conference on May 23 through 25 at Wynn | Encore in Las Vegas, many of the nation’s most successful operators and experts will provide attendees with information needed to make the right decisions, update them on market and regulatory developments, introduce new technology which provide cost-effective solutions, and new benchmarks to measure performance. Both new and experienced operators are encouraged to participate and discover new ways to prosper in the changing subprime auto finance market of today.
The old ways are not working, so let’s implement some new ones.
Good luck.
Ken Shilson, who can be reached at Ken@kenshilson.com, is president of Subprime Analytics (www.subanalytics.com) and NABD (www.bhphinfo.com). Subprime Analytics uses data mining to perform computerized portfolio analysis for operators and providers. NABD is the nation’s largest BHPH used car special interest group for operators and product providers with more than 13,000 members. NABD will host a National BHPH Conference on May 23-25 at Encore in Las Vegas. For more information call (832) 767-4759 or visit www.bhphinfo.com.
In the latest installment of the annual Best of BHPH issue of BHPH Report, we go behind the scenes with some of the leading companies in the used-car space and their top executives with a few Q&A features.
Next up in this series is Peter Ord, national sales director at DealerSocket.
BHPH Report: How much more critical is a functional DMS to an operator than it was even two or three years ago?
Peter Ord: Today, dealers are required to comply with more regulations than ever before — and this high-scrutiny environment isn’t going away. Some may not want to accept it, but this is the new normal. In light of that realization, DMS is core to the dealership and has become the central source for control of all dealer functions, from evaluation and acquisition of inventory all the way through to sales, collections and analytics. If dealers want to compete and comply in today’s market, they need a DMS.
Regulators like the CFPB aren’t discriminating based on the size of your dealership either. They regularly make examples of both big and small dealers. Enforcement is only becoming more stringent, necessitating documented, automated processes that an effective DMS can provide. Over and over, we observe that if regulators come into your store and see you’re still operating off pen, paper and unlocked filing cabinets, you may be in for a long ride. However, they are much less likely to dig deep into your business if you have defined processes and proven, automated systems in place.
My philosophy is, you just can’t take chances anymore — not when there are this many regulators going from dealer to dealer, looking to sue them for the benefit of the consumer. If you can prove that you make a solid effort though, you are much more likely to be pardoned for a small mistake. We frequently hear from these regulators that they look for dealers who have inadequate infrastructure to support their business, have systematic failures or act with blatant dishonesty.
I would also add that efficiently managing inventory is the life blood of today’s independent dealer, and that is another function a solid DMS can fulfill. Having a prime physical location is no longer the main indicator to success though. As a matter of fact, a dealer’s digital location (i.e., their website) has become more important than their physical store. So it stands to reason that dealers who invest in inventory syndication through their DMS can gain a clear advantage over those who are still running such processes by hand.
BHPH Report: What part of a DMS is still confusing or frustrating for a dealer and why?
Peter Ord: Hands down, I believe the user interface is most confusing. The majority of DMS options focus on features without taking the time to understand how those features should be presented to the user. We admittedly had these same issues with our legacy DMS technology. When we built iDMS, however, we spent a significant amount of time studying design, user interface and user experience. We even dedicated entire teams to each one of those concepts. As a result, many of our iDMS beta users thought we had created a slew of new features that had actually been available to them all along. They just could not benefit from them because they were either too hard to find or were not integrated into the correct workflow.
Along the same lines, many DMS options provide heaps of data, but much of it is not actionable. In order for the data to be helpful to dealers, the software must synthesize and present it in a way that dealers can truly use. In the same way, the processes that a DMS handles can be quite complex, and many DMS options on the market today struggle to address these processes with a streamlined, automated approach that reduces errors and saves time.
The bottom line is that any technology platform should be easy enough and serve up enough valuable information that it becomes impossible for the user not to use it. The intuitiveness of the system is ultimately what should convince an employee to use the software, not the threat of consequences from management.
BHPH Report: What three elements should dealers evaluate when considering which DMS to use?
Peter Ord: First, you should examine a system’s reporting and integration capabilities. I’m referring to real-time, web-based integration, not batch integrations that require more human touch and don’t stay up to date throughout the day. DMS technology with these characteristics enable dealers to do their jobs better, easier and faster. We know a DMS cannot solve all a dealer’s problems, but that’s exactly why it must integrate seamlessly with other products. Much of a DMS’ data is valuable and should translate easily into other software, so it can help dealers manage their customer base more effectively. You want tight integrations between your DMS and CRM so you can get, for example, filtered lists of customers that are nearing finance termination that have not been repo’d or just spent more than $500 in your service lane on a repair. That sort of targeting will prove especially useful when proactively reaching out to previous customers for repeat sales.
Second, you should look at whether a platform is web-based or client-based. Can you use your DMS on any device, anywhere? Seven to 10 years ago, people would have thought you were crazy for using a web-based solution. Now, you’re way behind if you’re still on a client-based platform. Web-based solutions offer more agile integration capabilities than web platforms. It’s extremely difficult to integrate with other products on a client-based system. Of course, users also cannot access the platform at a moment’s notice, optimized on their mobile device. I believe one of the aspects that separates the superior operators from the average is using current, live information to make decisions.
Lastly, a DMS in today’s market should offer a custom user experience based on role. It should focus on how each individual user needs to leverage the DMS and tailor the experience based on their needs. The accounting office, controllers, business owners, GMs, sales managers, inventory managers … they all use the DMS. Yet most DMS technology offers the same user experience to every user, regardless of role. Dealers should look for a DMS that allows you to customize the home screen — and really the entire experience — based on the features each user needs for his or her job. For example, if I’m an inventory manager, I don’t need to wade through functionality to desk deals or even see the collections module. I need to be able to efficiently add inventory, add pictures and descriptions, and post to third-party websites. Those functions should be front and center, easy to access, and simple to execute. I believe dealers are frustrated that it takes them way too long to do basic tasks in their DMS. But you can remove five or six clicks from any given task by using a DMS that allows customization by user role.
BHPH Report: What recent technological advancement has helped DMS function better?
Peter Ord: Cloud-based architecture is becoming more robust, with more enhanced, secure environments and more agile integration capabilities. Five years ago, the only way to integrate with another product was to send batch files in the form of an Excel spreadsheet. Today, we can take advantage of real-time web services to give the experience of using one system instead of two, or three or four. Open APIs help facilitate this data sharing, so information moves two ways instead of just one. None of these benefits are available with a client- or server-based platform.
In addition, user-based customized screens are a game changer. If I’m a collector, I want my workflows and home screen elements to focus only on what I need to do my job most efficiently. This allows for quicker, easier training and ramp-up of new employees. It also helps established employees leverage all the features available to them much faster.
I encourage every dealer to ask their potential DMS provider whether they employ dedicated user experience designers. Most don’t, and you won’t want a DMS with a user interface that has zero study or science behind it. If you have a fantastic feature set with a poor user experience, the features don’t even matter because no one can find them. That’s what leads to frustrating, crowded, and hard-to-use technology. I believe both the feature set and the user experience should be weighted equally.
Additional pieces from this series can be found below:
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.
PassTime recently launched what the wireless GPS telematics products provider called Elite 5, an LTE Category 1-based telematics device serving consumer, dealership, fleet and specialized finance company markets.
The company highlighted The Elite 5 is the first LTE Category 1-based GPS device certified on Verizon’s 4G LTE network to serve the subprime automotive finance market in the U.S.
In addition, PassTime noted the Elite 5 will feature advanced power-saving functionality.
“The Elite 5 is a huge accomplishment for PassTime,” PassTime chief operating officer Chris Macheca said.
Bringing the first LTE Category 1-based device into the payment assurance market will provide our customers with access to the most reliable 4G LTE network and provide for network longevity which is critical to our customers,” Macheca continued.
PassTime has been a valued member of the Verizon Partner Program for nearly two years since launching a CDMA device on Verizon’s wireless network in 2014. The company continues to provide innovative products and access to the latest technologies, helping ensure its customers have the best technology options to fit their needs.
“PassTime is a valued partner that has made several fleet devices available to Verizon customers,” said Chris Schmidt, executive director at Verizon.
“We are pleased to see cost-effective 4G LTE solutions such as PassTime’s Elite 5 Cat 1 device come to market and provide a new solution to serve the subprime auto finance market that connects to Verizon’s 4G network,” Schmidt went on to say.
For more information on PassTime’s new Elite 5 device, contact the company at (877) 727-7846 or info@passtimegps.com.
