Spireon highlighted on Monday that it has achieved its 20th consecutive quarter of year-over-year revenue growth. The record revenue growth arises as the company added more than 1 million new connected devices in the past year across all major vehicle telematics segments, including buy-here, pay-here dealers, finance companies, small- and medium-size fleets, transportation, trailer and rental car companies as well as consumer markets.
Spireon reported that its revenue jumped 20 percent year-over-year for the first half of 2016 as the company more than doubled its profitability. Spireon chief executive officer Kevin Weiss insisted this consistent growth in active subscribers extends what he believes is the company’s “leadership position” as the industry’s largest aftermarket vehicle telematics solutions provider.
“Our record revenue and profitability reflects our market leadership, increasing demand for innovative and reliable vehicle telematics solutions, as well as our deep focus on our customers' success,” Weiss said.
“The Spireon team is unmatched in our extensive industry experience and expertise and we expect to continue this historic run as we place customers at the heart of everything we do,” he continued.
Spireon indicated more than 14,000 dealership already use its solutions, and the company is making inroads into the franchised store space.
Through the first six months of 2016, Spireon tracked a 15-percent increase in year-over-year sales for its automotive technology solutions group.
Demand for Spireon’s GoldStar GPS vehicle tracking and collateral management solutions increased as auto finance professionals and BHPH dealers saw loan delinquencies hitting their highest rates this year since 2010, according to the company. Spireon GoldStar GPS solutions now connect and protect more than $21 billion in vehicle assets for BHPH operators and automotive finance companies.
Momentum for GoldStar GPS sales and active subscribers derives from the introduction of innovative new products and capabilities for the BHPH and vehicle finance markets. With the addition of the PositionPlus GPS product, Spireon now offers a full suite of GPS-based solutions that can meet the diverse needs of BHPH dealers with varying GPS tracking and collateral management requirements and budgets.
Additionally, Spireon momentum among the franchised dealer segment experienced rapid growth in the first half of 2016 with a 26 percent increase in unit sales.
Bolstered by the recent addition of the SkyLink and Kahu product offerings, franchised dealers now have comprehensive tools to manage their inventory as well as add a new revenue source for their business by offering car buyers connected car services such as stolen vehicle recovery.
With Spireon’s FleetLocate solution delivering significant customer benefits of improved business productivity, operating efficiency and customer service, Spireon experienced dramatic growth among fleet businesses during the first half of 2016. Revenue grew 27 percent in the first half while total contract value for this segment increased 70 percent.
Spireon’s enterprise fleet, trailer and transportation segment growth was fueled by new solution offerings including Spireon’s FleetLocate Temperature Monitoring product and Spireon’s Driver Performance Program, as well as Spireon’s unique model of customer engagement focused on delivering outstanding customer service and support.
Additionally, Spireon’s Local Fleet business segment revenue increased 14 percent year over year. Through Spireon’s VehiclePath channel program, Spireon partners with local and national resellers to provide small- and medium-size businesses GPS-based telematics solutions that help lower their overhead and increase revenue.
GPS-based technology provider PassTime announced that it completed a software integration project with Verifacto, a cloud-powered risk management system for independent and buy-here, pay-here dealers as well as other auto finance companies.
Customers utilizing both Verifacto software and PassTime GPS solutions now can perform a variety of device management functions directly within Verifacto as well as use custom insurance status features.
“Verifacto has built an innovative product solution that is unique to this market. Adding them as an integrated software partner will be a great benefit to our customers,” PassTime executive vice president of development Jerry Morgan said.
PassTime’s BHPH and finance company customers have been using its GPS and automated collection technology solutions to enhance collection processes and reduce delinquencies and repossessions. PassTime, which has been in business for over 20 years, prides itself on offering high-quality and reliable products to the subprime vehicle financing industry along with 24/7 live customer care for its customers and end users.
Verifacto is a technology company focused on improving the way lienholders and borrowers connect with information. Verifacto makes data accessible and useful to customers by organizing information obtained from finance companies, borrowers and insurers.
Verifacto’s risk management system can track insurance status and compliance for lienholders and additional insured, combined with loan payment reminders and payment processing.
“The integration with asset recovery technology is a very strategic and valuable partnership. Verifacto analytics identifies the highest-risk customers while the GPS technology enables efficient asset recovery,” Verifacto co-founder and chief executive officer Hezi Moore said.
The companies mentioned that the integration is complete and is commercially available.
For more information, contact PassTime at (877) 727-7846 or info@passtimegps.com.
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.”
Ken Shilson and Dustin Kerr spent weeks going over performance data from buy-here, pay-here dealerships nationwide along with portfolios from their related finance companies. Now the industry experts have finalized the new Benchmarks and Trends Report that will be shared during next month’s National Conference for BHPH hosted by the National Alliance of Buy-Here, Pay-Here Dealers.
Shilson, NABD’s president and founder, highlighted the latest report contains numerous graphs and charts together with a summary analysis so operators can understand both market and performance changes during last year. The summary also includes a forward-looking forecast of what’s ahead in 2016.
This year, Shilson worked on the project with Kerr, the newest BHPH moderator at NCM Associates. Both experts will be on stage at the Wynn in Las Vegas for NABD’s event that runs from May 24 to May 26.
“This report is the most comprehensive look at the subprime auto finance market we have ever done,” Shilson said. “I thank NCM, SGC Certified Public Accountants, and Subprime Analytics who contributed financial and operating data for the development of the report.
This is the 18th consecutive year we have compiled and issued a report containing financial, operating, and loss metric information which can be used by operators, capital providers, investors and others to evaluate performance and, where applicable, to compare their own results,” he continued.
“We carefully scrutinized the policies and practices used to generate the data to assure that all the information is credible. Although different accounting and operating practices are used in the industry, this report considers and adjusts for the major differences,” Shilson went on to say.
Past benchmark reports can be downloaded free of charge from the Subprime Analytics website at www.subanalytics.com. The archive covers the past five years. The most recent report will be posted in May prior to the NABD National Conference for BHPH.
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.
Two major service providers for buy-here, pay-here dealers — PassTime and Frazer — each finalized enhancements to their technological offerings.
First at PassTime, the company introduced the fourth version of its popular GPS tracking system TRAX 4, which boasts an all new design and a smaller form factor.
PassTime highlighted TRAX was first introduced in late 2010 as an easy to use GPS tracking solution. Now in its fourth version, the platform continues to be a widely successful piece of PassTime’s product offering that are used by finance companies and BHPH dealers to help assist with timely payment involving consumers with subprime credit. The solution also can help consumers to locate their vehicle with GPS in the event of a theft.
“PassTime continually works to bring our customers new and innovative products. TRAX 4 is an update to an already great product, with a smaller size and some new features. We think our customers are really going to like it,” said Stan Schwarz, founder and chief executive officer of PassTime, which has been in business for more than 20 years, manufacturing and selling GPS devices
Schwarz highlighted TRAX 4 is available and shipping now.
For more information about TRAX 4 or PassTime, call (877) 727-7846 or email info@passtimeusa.com.
Frazer and Fetch offer integrated insurance solution
Frazer Dealer Management Software recently finalized an integration with Fetch’s electronic auto insurance service. Fetch's integration with Frazer will allow vehicle-buying consumers to obtain multiple insurance quotes within seconds and purchase a policy online in four minutes or less.
By working with Fetch, Frazer expands its portfolio of service providers to include a single-click automobile insurance solution. Currently, Frazer has more than 14,600 dealership clients.
“At Frazer, we provide used-car dealers with software designed to make it easier and more profitable to run their dealerships, Frazer Computing president Michael Frazer said.
“The Fetch integration adds tremendous value for our users, helping their customers attain insurance quickly and easily,” Frazer continued. “Partnering with an exceptional company like Fetch is a great opportunity for Frazer and our dealers.”
Fetch president Joseph Kindley acknowledged some customers who arrive at BHPH dealerships have auto insurance that’s expensive if the individual has any at all.
“Using Fetch to shop for and purchase affordable automobile insurance from nationally recognized insurance carriers can now be done in under four minutes,” Kindley said. “The insurance quotes are directly from the insurance carriers' websites, giving the customer the ability to purchase auto insurance and print insurance cards right at the dealership.
“Historically, the process of calling local insurance agents or shopping online for insurance took an hour or more,” he continued. “There are no agent commissions added so the insurance is naturally less expensive than agent-based auto insurance. These insurance savings are making more car deals by giving the consumer more purchasing power at the dealership.
“Frazer's integration of Fetch will usher in a new way for customers and salespeople to negotiate car deals. We are ecstatic to be working with an industry leader like Frazer,” Kindley went on to say.
Visit Frazer.com for more information.
Perhaps the most recent quarterly performance by America’s Car-Mart shows that GPS technology cannot singlehandedly improve charge-offs and credit losses for buy-here, pay-here operators.
During a quarter where retail sales and revenue improved, Car-Mart executives said they were “very disappointed” with net charge-offs as a percent of average finance receivables rising 7.8 percent in the first quarter of their 2016 fiscal year. That reading is up from 6.3 percent for the prior year quarter.
Also frustrating Car-Mart leadership was the Q1 provision for credit losses coming in at 27.7 percent of sales versus 24.6 percent for the same quarter a year earlier.
Elsewhere on the performance side, the company indicated collections as a percentage of average finance receivables remained relatively flat at 14.0 percent from 14.1 percent for the prior year quarter. Furthermore, Car-Mart highlighted that its accounts more than 30 days past due dropped to 3.8 percent from 5.8 percent as of April 30, a move that represented a decrease of $7.7 million.
Car-Mart president and chief executive officer William “Hank” Henderson tried to explain what happened as the company opened its fiscal year.
“We certainly anticipated some elevated loss levels as we started the quarter with a high 5.8 percent of our finance receivables being 30-plus days past due,” Henderson said. “Also, as we had mentioned, we were somewhat disappointed in our collections for the fourth quarter and knew that we were facing some challenges heading into this year.
“Operational inconsistencies among dealerships, including issues with the effective utilization of our GPS technology in our collection practices, as well as other distractions related to policy changes and our software implementation, contributed to the poor results,” he continued.
“Additionally, the competitive landscape remains intense, but we feel that our issues are more attributable to our own lack of consistent blocking and tackling,” Henderson went on to say.
Earlier this calendar year, Car-Mart indicated that it had about 80 percent of its inventory equipped with GPS technology with plans to have devices installed on all of its retail units within six months. That process along with several other operational and technology changes appear to be impacting the company’s performance.
“We have spent several years now building an infrastructure to support a larger customer base,” Car-Mart chief financial officer Jeff Williams said before rattling off eight specific areas, including:
— Information technology
— Compliance
— Associate support and training
— GPS technology
— Centralization of non-core lot level administrative functions
— Manager-in-training program
— Customer payment technology
— Credit reporting
“These investments were made to provide better service to our customers and our field associates and to allow for productivity improvements for existing dealerships as well as to support growth from new dealership openings,” Williams continued. “While we are disappointed with the current quarter's results, we are always looking long-term and do expect that we will see benefit from these investments in the future
“The competitive landscape remains challenging, but as Hank mentioned, we know that we can do so much better at helping our customers succeed,” Williams went on to say. “Our bottom line results are always dependent on our customers succeeding on their individual contracts with us.”
As of the close of Q1, Car-Mart reported its active accounts base stood at approximately 65,600, pushed in part by a retail unit sales increase of 6.6 percent to 12,244 units. Company dealerships turned an average of 28.9 units per month in the first quarter, up slightly from 28.4 units a year earlier and 28.1 units in the previous quarter.
The sales performance lifted company revenue 8.9 percent to $143 million, leaving Car-Mart with $4.6 million in net income or 52 cents per diluted share.
Car-Mart now has 143 dealerships in its network after bringing aboard a store in Rolla, Mo., on Aug. 14. The company’s footprint is on track to expand to 11 states as its growth pipeline eight new locations, including one in Iowa.
As the company irons out its processes — including improved underwriting and leveraging of GPS technology, Henderson is confident in what Car-Mart can accomplish going forward.
“We are disappointed with our results for the quarter, but we are not deterred. We have opened almost 50 stores in the past five years and the majority of which of have done very well, and you can’t have that level of growth without a few bumps in the road,” Henderson said.
"We have great shared vision of the company,” he continued. “We are building an extremely capable and dedicated team to get us here. We have a solid plan in place to correct our shortcomings and we will work it intensely.
“When we fall short and make a mistake, we gained valuable experience that makes us better provided the course that we learned from it,” Henderson went on to say. “This recent quarter has gotten our attention drawn to exactly where it needs to be and I fully expect we will better for it.”
GPS tracking solutions provider Skypatrol released what it’s calling a time-saving solution for batch communications to customers in your related finance company portfolio who are behind on making their installment payments.
Skypatrol highlighted its AutoBatch for DMS can give buy-here, pay-here dealers and vehicle finance companies the capability to automate DMS-driven “machine to machine” (M2M) commands to contract holders in default. Now, operators can leverage the power of their existing DMS to output a list of defaulting customers and the type of action that is required.
This list is automatically emailed M2M, and Skypatrol’s secure servers communicate with the borrower’s GPS turning on a piezo, sending location information or deactivating the vehicle if parked.
Officials explained this process is completed fully independent of any system integration or application program interface (API) exchange, making it easy for Skypatrol customers to implement the solution across all popular DMS platforms without specialized technical support.
Each time commands are distributed, a detailed report is sent confirming the action took place. If for some reason the vehicle can’t be reached, the system automatically retries to establish contact — which is reported as well.
Depending on how much of your portfolio is in some level of default, Skypatrol insisted it’s vital that BHPH dealers and finance companies have an efficient methodology for asset protection.
Skypatrol’s product and service solution combines proprietary GPS devices with innovative software systems that can help boost portfolio performance, increase operational efficiencies and reduce risk in the vehicle finance industry.
The AutoBatch for DMS system can combine with Skypatrol’s other finance industry products for a complete end-to-end solution. Its one-click Repo Mode Tool can gives time-limited secure smartphone access to recovery teams of a vehicle’s current location.
“Auto Batch for DMS will save lenders and dealers the manual and labor intensive task of individually creating actions one at a time when no integration is possible,” Skypatrol chief operating officer Larry Jones said.
“There are some DMS systems that don’t allow integration due to the lack of an API, there is a deficient API or it is a legacy system,” Jones continued. “Either way, finding a way to work outside of an API is just what our customers need to remain efficient and competitive.”
Furthermore, Jones mentioned Skypatrol's Data Verification Tool can qualify applicants and help locate them if they skip. Its Virtual Collector module can send automated email and text reminders, increasing cash flow and reducing defaults.
“I am a very strong proponent of products that automate communications and actions around the default process,” said Jim Rhoads, a consultant to the BHPH industry.
“By removing the potential for human error, reaction to delinquency is timely and consistent,” Rhoads continued. “It also depersonalizes part of the process, allowing collectors to effectively blame ‘the system’ for early and persistent reminders.
“Automated communication also reduces the level of frustration that builds in collectors when they are unable to reach the debtor/customer and it frees collectors up to do the more important work of solving problems,” Rhoads went on to say.
