Motor City Chrysler Changes Hands In Unusual Reversal Of Dealer Industry Trend.pdf

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After a decade in the Rafi h Auto Group stable, Pinnacle Chrysler has changed hands, changed names and bucked a trend. Now dubbed Motor City Chrysler, the rooftop is owned by Tom Mayhew and Craig Lanoue. The pair fi nalized the purchase of the dealership and real estate in October. The adjacent property was also included in the sale.

According to Tony Faria of the University of Windsor, dealer consolidation has been the norm for some time. Buying power, volume and economies of scale have helped dealer groups like AutoCanada, Dilawri, Steele and others easily make attractive business cases for purchase of single point dealerships.

If you are in the Buy Here, Pay Here (BHPH) or Lease Here, Pay Here (LHPH) business, then you already know that repossessions and charge-offs are a fact of life in the special fi nance business. The target audiences for a BHPH business are customers who have poor credit, customers who have no credit, customers who are trying to rebuild their credit or customers who are on a fi xed income.

One common mistake made by dealers is thinking the BHPH business targets the worst possible credit-worthy customers, sometimes called “credit criminals.” This is clearly not the case. One of the keys to success in BHPH is being able to tell the criminals from the people who have a genuine intention to repay their car loan and re-establish their credit.

Recognizing the difference is accomplished by sound underwriting and thorough verifi cation of important information on the customer’s loan application. Having noted that, a dealer in the BHPH business must still have an appetite for risk and a tolerance for loss within in their loan portfolio.

Successful BHPH dealers understand they are in the business of helping people rebuild their credit. They are not just in the business of making money, but also in the business of helping people get back on their feet.

LGM launches PowerTrain, a national training program for F&I sales. The program focuses on a mechanical breakdown protection-fi rst sales pitch with an overall customer-centric presentation. The vision stresses an interactive sales interview that offers products to fi t the customer’s driving habits and life cycles.

The program’s main focus is a mechanical breakdown protection-fi rst sales pitch with an overall customer-centric presentation. The vision, repeated many times throughout the morning, stresses an interactive sales interview that offers products to fi t the customer’s driving habits and life cycles.

For LGM, white label provider of mechanical breakdown protection packages for Kia, VW and Audi in Canada, the motivation is obvious. “It’s the best product for the customer, dealer and the fi nancial services manager. It makes the most sense. For the customer, it’s the product they’re likely to use and trust,” he tells the class.

The 10-step F&I process includes: Meet and Greet, Needs Assessment, Related Needs to the Products Off ered, Finance Intentions, Credit Application, Mechanical Breakdown Protection First, Off er All Other Products, Submit Credit Application, Complete Paperwork, and Close the Deal.

Helping set the scene for solid F&I penetration has a physiological and subliminal element. Try some of these clever techniques to keep the mindset positive and the profit bountiful. When asking how long the customer will drive the car, don’t give them the chance to say, “I don’t know.” Give them a range: “Some of our customers finance their vehicles over three to fi ve years while others fi nance for seven to ten years.”