When dealers come to Las Vegas for the National Conference for BHPH hosted by the National Alliance of Buy- Here, Pay-Here Dealers, Autotrader’s solution for this slice of the dealership space will hit its second anniversary. At this same event in 2014, Autotrader unveiled an online tool specifically designed to match BHPH dealers with customers who need the financing they provide.
Thomas Wadley, product manager for Autotrader’s BHPH Center, has been involved with the project since its inception and reflected with BHPH Report on the journey the company team has traveled with nearly 2,000 dealers from almost all 50 states who have tried the tool.
“One of the things we’ve been able to validate is that when we launched this initiative, we identified a market segment that wasn’t being catered to and we created a solution specifically for that market segment,” Wadley said. “Over the course of time, we were able to get on board those buy-here, pay-here dealers starting back at the NABD Conference in May 2014. Since then our number of registrations has continued to increase. We’ve seen this solution does work. We’ve gotten dealers on board who are getting shopper traffic, and this shopper traffic is generating the leads for those dealers.
“The problem that’s uncovered in the past is that these dealers and shoppers have had difficulty connecting with each other,” he continued. “This environment is the perfect solution for them, the dealer, to focus on financing and merchandising their vehicles with a financing model. It also allows the shopper to be more confident that they are connecting with dealers that will approve them to get a vehicle.”
One of the attributes of the Autotrader BHPH Center that propels it to have such an impact in this space is how potential buyers most oft en find the site and look over dealership inventory. “What we’ve observed is over 70 percent of the consumer traffic comes from mobile devices. That’s been a pattern we’ve seen for the last year and a half,” Wadley said. “We’re excited about that because the site is built in responsive design fashion so that it renders to the device it’s being viewed with.”
Wadley also touched on the other attributes the solution can deliver.
“Another key feature that we’re excited to release is the back-end reporting that dealers are able to view,” he said. “They can see the performance of their vehicles on the site. They’re able to see what the shoppers are interested in in terms of the payment information, the most sought-after vehicles within their local search market, and the number of times their vehicles are viewed.”
In the past two years, the Autotrader BHPH Center team has demonstrated the solution to a wide array of industry experts and has gone to independent dealership gatherings to highlight the product. Collecting assessments of users has also been crucial to development.
“We’re confident with the feedback we’ve gotten at dealer conferences as well as some of our other testers that the solution is quite user friendly,” Wadley said. “We’re still interested in getting more feedback from our dealer base. As we continue to promote this product to this market, we’ll adjust the whole experience as needed.”
Now with the Autotrader BHPH Center about to embark on its third year, Marcus Dame, senior director within product management for independent dealers, described how the company is making plans to place additional resources on the project so the solution can be an even sharper tool in a BHPH operator’s toolbox.
“In getting to know the team and the platform, the dealers who are subscribing to it and the shoppers who are using it, what we’ve been able to do over the last two years is really validate that we can be effective in attracting qualified buyers, and we’ve been effective in attracting qualified sellers and engaging those two in almost like a match-making environment where then we’re delivering value to both,” Dame said. “They have validated to us through their activities that we’re getting the product optimized in a way that aligns with the original vision.
“We’ve taken it beyond proof of concept that it’s working and working very well,” he continued. “What that has done is positioned us to take that investment pivot. How do we really integrate into our business outside of a concept or test and make it part of the fabric of our enterprise and organization so we can support it in a way with dedicated efforts, sales and support and not just a couple of people who are running day and night to make it happen; rather, a portfolio of resources around it so we can really serve those shoppers and sellers optimally the way we do for our core businesses.”
DealerSocket rolled out a major upgrade to its mobile CRM technology for buy-here, pay-here and independent dealers. The latest software features a mobile driver’s license scanner, push alerts for website visits (when using a DealerSocket website) and support for attaching images and videos on outgoing emails within the mobile application.
Dealers attending the National Conference for BHPH hosted by the National Alliance of Buy-Here, Pay-Here Dealers next week in Las Vegas will have the opportunity to see the company’s latest mobile technology in action.
DealerSocket’s mobile CRM app can help dealers capture and leverage customer information on the lot, on the showroom floor, or even away from the dealership. Since they are not restricted to recording customer information while behind a desk, app users see an average increase in data collected of at least 30 percent, which translates to more sales.
The company’s mobile CRM also offers BHPH operators nine other features, including:
• Real-time push alerts when customers open emails, click on links, submit a web lead, visit the dealership website and more
• Call tracking integration with the time, date, duration and employee name logged to the customer work notes
• Immediate access to the dealer’s entire inventory library
• The ability to send e-brochures containing specific calls to action, all with a single click
• A VIN scanner that pushes trade information to third-party appraisal tools
• Customized automated processes based on multiple lost resolution codes, so dealers can handle a prospect who bought from another store differently than a prospect who simply had bad credit
• “Smart vehicle reply” email functionality, which adds up to four new/used cars from inventory based on the customer’s chosen vehicle
• Daily work plan, which lets dealers know the right time to reach out to the right person with the right message so no activity slips through the cracks
• Optional modules like SocketTalk texting functionality
“For years, DealerSocket has led the way in mobile innovation, from websites and online lead generation to mobile platforms for CRM and DMS. We are committed to giving buy here, pay here and independent dealers access to the latest flexible functionality, both in terms of customer experience and dealer usability,” said Peter Ord, national sales director at DealerSocket.
“It’s truly needed in today’s marketplace because, according to our Independent Dealership Action Report, these shoppers are high-frequency users of mobile devices. Not to mention, we believe that increasing flexibility and convenience for dealership staff correlates with improved productivity and, therefore, results,” Ord continued.
After close to a year of development, DealerSocket is also nearing the third-quarter launch of iDMS, the debut product in its full-scale, integrated technology suite made specifically for BHPH and independent dealers.
The comprehensive platform will include newly tailored solutions for CRM, inventory management and digital marketing, with even more options to be added in the future. iDMS users can benefit from robust collections and accounting functionality to help BHPH dealers run their businesses with maximum profits and efficiency.
Key features include:
• Dynamic queueing processes
• Stacked promise-to-pay functionality
• Buy-here, pay-here decisioning
• Real-time accounting integration with QuickBooks
• Flexible general ledger (GL) account creation and mapping, giving dealers granular control of GL transaction accounting
“We are thrilled to launch our new independent platform to provide dealers with increased flexibility and streamline the use of DealerSocket products,” Ord said. “We will no longer be constrained by product line, so users can easily access all the tools they need to do their jobs, not by product but by role.”
Dealers can schedule a free demo of any DealerSocket product at the NABD’s event by visiting www.dealersocket.com/nabd.
If operators cannot attend the entire conference, NABD is offering day passes. More details can be found at bhphinfo.com or by calling (832) 767-4759.
Two technology platforms buy-here, pay-here operators might already use now can communicate with each other.
The Skywerks dealer management system is now integrated with the Selly Automotive customer relationship management platform, allowing the two systems to share information with a new bi-directional integration.
The companies explained the integration between Selly Automotive and Skywerks allows the two services to exchange information, eliminating redundancies while increasing efficiency for dealers.
“This integration reinforces our commitment to providing seamless solutions for independent and BHPH dealerships,” Selly Automotive founder and chief executive officer Zach Klempf said.
“As technology evolves in this segment of the market, independent and BHPH dealership software solutions will only communicate with each other more,” Klempf continued.
The new integration allows existing and new Skywerks dealers to take advantage of the Selly Automotive platform.
For more information on the integration between Selly Automotive and Skywerks, visit sellyautomotive.com or skywerks.com.
J.D. Byrider broadened its network footprint of buy-here, pay-here dealerships in Arkansas by bringing aboard its third store in the state.
The second dealership for franchisee Matt Enderlin is located at 3301 South Zero St. in Fort Smith, Ark. Enderlin also operates another location in Arkansas about 160 miles away in Sherwood.
The Fort Smith location totaling 9,000 square-feet not only has a sales showroom, but also six service bays. The dealership will also create approximately 15 new jobs.
“Fort Smith is a great community and an excellent area to expand the J.D. Byrider brand,” Enderlin said. “My staff and I are dedicated to bringing the same level of service and affordable financing to this new dealership as we do in Sherwood.”
This addition is the third J.D. Byrider dealership to open in 2016. The company now has 169 locations in 36 states.
“Matt is an exceptional operator and will serve our customers well with his expansion in Fort Smith,” said Tom Welter, vice president of franchising for J.D. Byrider. “He understands the value of our business model and operational support, both of which are driving the unprecedented unit growth we are experiencing.”
For more details, go to www.jdbyrider.com.
Editor's Note: BHPH Report received notification that the opening of J.D. Byrider's store in Fort Smith was delayed until May 9 because of hailstorm damage.
With one of the most important elements to a successful buy-here, pay-here transaction being a vehicle that remains operational, RepairPal recently broadened its offering with a financing opportunity for individuals who are unable to pay for their repairs with other methods.
This new finance company associated with RepairPal is One Road Lending, which executives say has an innovative consumer financing structure designed to fit the needs of underserved auto shop customers.
With more than 4 million unique monthly visitors, RepairPal is a leading auto repair website and one of the largest independent networks of trusted, certified shops focused on high quality and fair pricing.
If BHPH operators don’t have their own shops to make repairs, sending their contract holders to find the resources through One Road Lending could be way to get the vehicle back up and running. With a vehicle still in operation, payments can keep arriving to keep dealership cash flow positive.
“We aim to help as many creditworthy customers get back on the road as possible,” said Dusty Wunderlich, chief executive officer and founder of One Road Lending.
“A majority of Americans aren’t qualifying for traditional financing so services like ours are becoming increasingly essential for a quality customer service package,” Wunderlich continued. “RepairPal’s strict certification standards are the best in the industry and we are thrilled to offer support to its loyal users.”
One Road Lending’s flexible lease structure provides personalized financing for RepairPal users who may not have the available funds to pay for necessary auto repairs.
“We know that an unexpected or large repair can be a challenge to budget for any consumer,” RepairPal chief executive officer Art Shaw said. “We are leveraging our network to provide even more great services and we are proud to offer One Road Lending. They have deep, nationwide coverage and provide options for RepairPal consumers.
One Road Lending’s innovative underwriting evaluates more than just an individual’s credit score, reviewing hundreds of distinct personal data sets to extend individualized costs and terms to consumers based on their unique likelihood and willingness to pay.
“The broad data sets and lease structure often empower customers to gain access to financing who cannot access traditional financing,” the company said.
For more information, visit OneRoadLending.com.
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.
Demonstrating what executives involved are calling leadership and commitment to independent dealers and buy-here, pay-here operators, Cox Automotive expanded its partnership with the National Independent Automobile Dealers Association on Thursday through NIADA’s National Corporate Partner program.
Seven Cox Automotive brands — including for the first time, Manheim— have been designated as National Corporate Partners for 2016. Six of the brands are Diamond-level NCPs, the highest partnership level.
“NIADA is beyond thrilled about expanding our relationship with Cox Automotive and strengthening our ongoing efforts to better serve the independent automotive industry through the several Cox Automotive brands," NIADA chief executive officer Steve Jordan said.
“NIADA dealers and members are committed to providing a better buying experience for their customers and offering top-tier service, much like the Cox Automotive philosophy,” Jordan continued. “This evolving partnership gives our members and the industry strategic access to the world-class suite of Cox Automotive products, services and brands and will allow our dealers to continue to lead their communities as best-in-class business operators. And that is really exciting."
Autotrader, NextGear Capital and vAuto renewed as Diamond-level partners and have been joined by new Diamond partners Manheim, Alliance Inspection Management and Dealertrack.
In addition, GO Financial has teamed with NIADA for the first time as a Bronze-level NCP.
“Independent dealers represent the backbone of the used vehicle industry," Manheim North America president Janet Barnard said.
“Through this partnership, Cox Automotive will broaden its support of independent dealers through training, education and consulting services, helping to further their business success,” Barnard went on to say.
With more entrepreneurs and franchised dealerships taking an interest in J.D. Byrider’s business model, the buy-here, pay-here chain recently promoted two of its employees to be franchise consultants.
Ascending into this role are Lewis Scott and Tim Bullock. This move aims to help J.D. Byrider continue in its growth mode, which included the opening of 12 locations last year and the anticipation of a dozen more joining the network this year.
“These two hires allow us more contact, more touches, more impact with our franchisees,” J.D. Byrider vice president of franchise sales and finance Jack Humbert said in a message to BHPH Report.
“Both Lewis and Tim are able and excited to provide operational value out of the gate,” Humbert continued. “We are thrilled to bring their capability and energy to the franchise system.”
Bullock is no stranger to J.D. Byrider, having served with the company for 11 years in positions such as branch sales representative, finance manager, managing partner, regional credit analyst, credit manager and most recently as general manager of the Beechmont branch in Cincinnati.
“Tim is a highly motivated and ambitious business leader with a strong track record of delivering strong results within highly competitive markets,” Humbert said.
Scott isn’t unfamiliar with J.D. Byrider, either, boasting six years of experience with the company as consumer credit analyst, branch underwriter, branch team lead and currently as general manager of the Greenwood branch in Indiana. He also spent a total of 13 years in various industry positions with Chrysler Financial, Wells Fargo Financial and AccuQuote.
Humbert also mentioned Scott is an ethics teacher certified by the state of Illinois as well as a certified American Sports Education program coach.
Along with highlighting its latest Bronze-level National Corporate Partner, the National Independent Automobile Dealers Association described how Dennis Pope of People's Financial Corp. in Mableton, Ga., “carried the ball across the goal line” to claim the top prize in the second quarter of NIADA's Membership Drive Challenge.
Pope led the association's football-themed membership campaign, which ran from November to January, by sponsoring 82 new members.
Other prize winners include Jayne Harris and Jenny Myrick of the Carolinas IADA, who brought in 44 and 40 new memberships, respectively. Julie Colgate of Independent Dealers Advantage in Suwanee, Ga., contributed 39 new members as Ohio IADA executive director Wendy Rinehart added 34 members and Debbie Braswell of the Carolinas ushered in 25 members.
The association indicated the winners will select from a group of prizes that includes
—Complimentary full registration for the winner and a guest to the NIADA Convention and Expo, coming up June 13 to 16 at the Mirage in Las Vegas
—An Apple Watch
—A GoPro 4 camera
—Autographed sports memorabilia from a team of the winner's choice
—A free subscription to NIADA's online dealer compliance training
NIADA mentioned the football membership campaign — part of a year-long membership initiative that began with a baseball theme — accounted for 380 sponsored new memberships, bringing the total from the first two phases to 614 new members.
The football promotion was followed by a basketball campaign that wraps up on Thursday. The membership drive’s last lap — an auto racing-themed promotion — begins in April and runs through May 15.
“NIADA’s membership initiative has been a tremendous success so far, but it is far from over,” NIADA president Frank Fuzy said. “Once again, I urge every member, every auction and every vendor to get involved so we can finish strong.”
AutoRaptor now a NIADA National Corporate Partner
In other association news, AutoRaptor, a provider of Web-based customer relationship management, Internet lead management, sales and marketing applications for independent dealers, teamed with NIADA to become its latest Bronze-level National Corporate Partner.
“Our partnership with NIADA has been an exciting way to give even more independent dealers of all sizes access to the most intuitive CRM platform in the market,” AutoRaptor director of business development Isaiah Osofisan said.
“Keeping pace with the needs of independent dealers has been our primary focus, and we're excited to be able to reach NIADA member dealers who are invested in technology for the continued success of their dealerships,” Osofisan continued.
“Too often dealers are left with ineffective options for their business and AutoRaptor's philosophy of simplicity coupled with a suite of powerful features, provides dealerships with a dynamic tool to capitalize on every opportunity and see a direct increase in profits,” he went on to say.
With a focus on leading edge technology for customer data management and through its partnership with NIADA, AutoRaptor is offering special setup and integration pricing for its full suite of CRM capabilities, including
—Lead assignment and sales workflow
—Texting
—Push and pull integration with many dealer management systems
—Inventory and website integration
—Mobile apps
—Email marketing
“AutoRaptor is a leading independent auto dealer CRM provider, with easy-to-implement, cost-effective, high-impact solutions," NIADA senior vice president of member services Scott Lilja said.
“AutoRaptor has been a longtime supporter of our industry and NIADA and I am pleased to announce their endorsement as our newest National Corporate Partner,” Lilja added.
For more information, including special NIADA member pricing, visit autoraptor.com or call (888) 421-6533.
Cox Automotive chief economist Tom Webb playfully pointed out via social media how much tax refunds are down year-to-date, according to the latest update from the Internal Revenue Service.
The IRS indicated that the agency has processed 65,441,000 refunds through March 18. That figure is off by 1 percent compared to where the IRS stood a year ago.
Thus far, the IRS has distributed $189.896 billion in refund money, a figure 0.7 percent lower than at the same point last year.
In a tweet, Webb said, “Hoping my refund — still waiting — will make up that $1.3 billion gap.”
If Webb’s refund is in fact that much, the sum would be incredibly higher than the average the IRS reported. The agency’s data put the average amount received by taxpayers at $2,902.
Also of note, the average refund for taxpayers who have direct deposit was slightly higher, according to the IRS’ year-to-date information. That figure stood at $3,045 as the IRS reported that it has sent $175.850 billion back to taxpayers so far this year through this method.
