THE DAILY RANT!

Today’s Automotive News features an article entitled “Longer loans, rising leases may come at a price” The teaser under the headline reads: “What's driving the gains in U.S. auto sales this year? That's simple: Easy credit, in the form of subprime lending and longer loan terms, plus a rise in leases -- the exact same trends that have a growing number of executives and analysts now raising red flags about whether the current sales boom is sustainable”: Let me start off by saying that anyone who thinks credit is “easy” hasn’t sat in the F&I seat lately. Yes there are some lenders that are loosening up their wallets, and maybe buying some loans they shouldn’t. I just transferred from a store where the new created captive lender was buying subprime customers at lower than expected rates, without any stips! When they started up, I told my other lenders I was going to ride that horse until it broke all four legs, fell apart in the back stretch and they served it up as filet mignon! Well, the race was over around September, and suddenly, those 75 month terms with a LOWER rate that 72 months (they claimed it was a computer error) and no POI loans were gone. No more exceptions, no more over advances, no more outrageous approvals. Yes, they accomplished their goal of capturing a large percentage of loans from the dealer base, but let’s see how the portfolio performs. I think it’s safe to say that most of the players left in the subprime arena learned their lessons the hard way a few years ago. Many of the players left the field bruised and battered (HSBC, Triad, Centrex) never to return. Those that came back re-evaluated their positions (AmeriCredit, Capital One, Santander) and have survived with a smart business model that seems to be working. Customers once again are returning to our showrooms, although lately many are concerned about whether our government will join the ranks of subprime buyers! Many of our customers once had great credit, only to be hammered by declining home values along with declining paychecks or no paycheck at all. I am amazed on a daily basis by some of the hard luck stories I hear. But to think that we are in the midst of “easy credit” is unrealistic at best. I only wish that were the case, because I would have three times the number of vehicles delivered this month! I always say that I can get almost any customer approved for a loan. I think most of us can say that. But the caveat that goes with it is that the customer has to be willing to meet the terms and conditions of that approval. Just because the customer wants no money down, or extended terms on a high mileage unit (maybe it’s the sales desk and not the customer who came up with that idea) doesn’t mean they will get it. If it were easy, anybody could do our job SUCCESSFULLY and PROFITABLY. It ain’t easy by any stretch of the imagination, but let the pundits keep saying it is. They keep bringing customers in and give us the chance to make it happen. Man, it’s good to be where I belong! .

I'M BACK!!!!!!!!!!!!

So, here we are in 2013, and some of you (I hope) have been wondering "What the heck ever happened to this guy?" Well, to make a long story short, I am back in Florida again, and doing what I do best. I am setting up a dedicated Special Finance department in a Nissan/Kia dealership in the West Palm Beach area. I had returned to Florida a few years ago to do something similar for a friend and former boss of mine who became the GM/Partner in a major import dealership, and we had a great run, until the group we worked for decided he was the guy they wanted for a partner.I managed to last a few more months and then, as the saying goes, a new broom sweeps clean. As I was the last person hired by the former GM, I was the first to go. After taking a few months off to lick my wounds, I started looking around again. After all, the $275 a week that Florida unemployment pays can only go so far! I was fortunate enough to find a finance managers position with the Napleton Group at their Chrysler Jeep Dodge store in North Palm Beach, and became the finance director after a week! After burning through two partners, I finally found someone who fit the place perfectly, and together we turned the dealership around. Month after month, our PVR and penetrations rose, from the bottom to being in the top 5 for the company. Recently, the company decided to embrace the sub prime market start up a dedicated department at the Nissan and Kia dealership. They offered me the opportunity and I've been here a week. I've already delivered 14 units from floor traffic alone,so the potential is definitely here. I'll be doing some marketing to bring clients directly to me, and the GM figures there are conservatively 60 deals a month to be done. (I think he's being a little conservative, but that's another story.) So keep tuned for my progress reports. I salute those of you who managed to ride out the storms of the last 5 years. It hasn't been easy for many, and many of my contemporaries here have left the auto business to pursue other interests. Some went to insurance, some back to sales, some just disappeared. But I'm back where i belong, back to my "roots" so to speak. ANd I'm looking forward to another long, profitable, and enjoyable adventure!