BHPH AutoMax Acquires Auto Group, Signs Inventory Supply Deal
MARIETTA, Ga. — In early December of 2008, the chief executive officer of AutoMax Group entered into an agreement to acquire the AutoMax trade name and the company, which is now incorporated in Georgia.
On Dec. 12, AutoMax agreed to acquire Kern Automotive Group, headquartered in Atlanta. Since August of 2006, Jacob Kern, AutoMax CEO, has operated an auto business that focused exclusively on wholesale and buy-here, pay-here.
AutoMax said it is presently relocating from its former Kern location at South Marietta Parkway to a new, larger facility to better serve its growing customer base.
Kern noted that the grand opening for the new location will be announced soon and the company's business model focuses on acquiring, selling and financing vehicles through flexible in-house financing options with the consumer's budget in mind.
"We are aggressively positioning AutoMax towards a dominant buy-here, pay-here auto retailer/wholesaler through direct sales and in-house financing of used vehicles to the general public. (The company's catchphrase is) under the banner of "Maximize Your Car … Maximize Your Credit."
AutoMax Group officials said they know that people have difficulties or problems at various stages in their lives and often these difficulties can create financial problems.
Typical new- and used-car dealerships normally shy away from customers with credit challenges, they noted. Therefore, AutoMax Group welcomes the business and helps individuals with troubled credit or no established credit to finance a quality car and simultaneously re-establish credit.
Kern stated, "AutoMax has a specific market niche because we provide in-house financing for our customer, which eliminates the guesswork that other dealers practice by. At AutoMax we are able to make credit decisions in just minutes while the conventional new- and used-car dealers can take days and sometimes even weeks to obtain financing for their customers."
He went on to say that, "AutoMax's goal is to provide consumers with quality, safety inspected vehicles and top notch customer service regardless of their past credit history."
Inventory Supply Agreement
AutoMax Group also recently announced a new strategic alliance with Atlanta Auto Showcase of Marietta, Ga., for the purpose of supplying inventory to Atlanta Auto Showcase.
"We are estimating 40 to 50 units per month to be sold to Atlanta Auto Showcase, which will possibly generate up to $400,000 in additional gross monthly sales. This is a new avenue of generating revenue without increasing overhead, with plans to acquire additional similar allegiances in the future," officials said.
Atlanta Auto Showcase is one of Atlanta's premier luxury used vehicle dealers, specializing in providing luxury vehicles for any budget and averaging approximately 150 units sold per month, officials explained.
Kern said the terms of this deal are a strong and lucrative move for AutoMax Group, in that it utilizes a scaled-down overhead model.
"In our expansion efforts, we have aggressively sought out these allegiances which will provide multiple outlets for our growing inventory channels, while utilizing a minimum overhead approach and providing outstanding service to Atlanta Auto Showcase as well as our customers," Kern said.
As part of AutoMax Group's new expansion efforts, AutoMax has targeted the luxury vehicle segment of the Atlanta Market with this allegiance, officials noted.
Further allegiances are expected to target the domestic and import vehicle segments of the market.
By providing the inventory needs to each of these segments in the Atlanta market, these strong allegiances and multiple additional sources of revenue can form a key part in the expansion plans of AutoMax Group, Kern highlighted.
The company's Web site, www.automaxgroup.net, is currently under construction, but will feature investor relations info, as well as inventory.