Latest OnLine Editon  Read Here

LEGAL UPDATE: Sean Petersen, NIADA senior vice president of legal and governmental affairs, talks about recent legal issues affecting independent dealers.  One change in Nevada regulates the use of starter-interrupt and GPS devices.

NABD Honors CFO

NABD Honors CFO Featured

The National Alliance of Buy-Here, Pay-Here Dealers has inducted several high-profile operators into its

Hall of Fame.

But this year the NABD took the opportunity to honor somebody who played a crucial role in the

background.

Mark Sauder has worked as chief financial officer for DriveTime and its related companies since 1997.

“He’s a guy who likes to move the needle,” said Ingram Walter, owner of iCars in North Carolina, as he

made the induction.

“He’s constantly made a commitment to continuous improvement. Our industry is better because

people like him have been in it for so many years.”

Sauder is a Certified Public

Accountant with a degree from Ball State University. He joined Drive-Time’s family of businesses when he

became the chief financial officer for Cygnet Dealer Finance Inc.

He moved to DriveTime when

elements of that company were folded into the main operation. He served as chief financial officer until

2012 and remains the company’s executive vice president.

Prior to joining DriveTime, Sauder held various senior management positions with auto finance, real

estate development and financial services companies.

Sauder also serves as chief executive officer of BlueShore Insurance Co. and Silver Rock.

Sauder accepted the honor not just for himself, but also for all the finance executives in the buy-here, pay-

here business.

“Without a strong finance executive, no buy-here, pay-here operation can succeed very long,” he said.

“There is no such thing as individual success in this industry.”

Sauder especially thanked

Ernie Garcia, DriveTime’s founder, and Ray Fidel, the company’s

current CEO.

Sauder reflected on the differences at DriveTime since it started in 1992 as Ugly Duckling and today.

The chain began as traditional buy-here, pay-here operation of the time, with commissioned salespeople

selling as-is cars to any

customer who came on the lot. There were no prices on the cars because everything was negotiable.

Today, the salespeople at the more than 100 stores are all salaried and all prices are no-haggle.

DriveTime has provided more than $13 billion in financing. The company will sell its 1 millionth

vehicle later this year.

Last modified on Friday, 22 July 2016 20:31

Related items

  • Loses Look High for Buy-Here, Pay-Here Dealers After Storms

    The buy-here, pay-here business might end up the hardest hit used-car segment from the recent hurricanes.

    Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers said the performance of in-house finance portfolios following other storms shows they take a major hit.

    “The loses on the portfolios in some cases were absolutely horrific,” he said.

    One the biggest challenges will be replacing lost vehicles.

    While the industry is grappling with an excess of late-model units, the older cars buy-here, pay-here dealers specialize in are in short supply.

    “We’re not going to be able to easily replace that inventory,” Shilson said.

    The NABD is doing its part to help those dealers affected by the storms.

    A portion of the proceeds from its upcoming conference in Orlando, Fla, will aid those in need.

  • America’s Car-Mart Names New CEO

    After more than three decades in the buy-here, pay-here business, William H. "Hank" Henderson is retiring.

    Henderson will step down as CEO of America’s Car-Mart on Dec. 31. President Jeff Williams will move up to fill Henderson’s role.

    Henderson spent the last10 years leading the Bentonville, Ark.-based buy-here, pay-here chain. Prior to that, he served the company in several roles, including chief operating officer and President.

    “I feel truly blessed to have had this opportunity,” Henderson said.

    Henderson will remain a member of Car-Mart’s board and have the title of CEO Emeritus.

    Williams joined Car-Mart 12 years ago. He has been President since 2016 and chief financial officer since 2005. I too am very excited about our future and look forward to helping the Company grow as we support our customers by providing a higher level of service than competitive offerings," Williams said.

    Prior to joining the company, Williams spent approximately seven years in public accounting with Arthur Andersen & Co. and Coopers and Lybrand LLC in Tulsa, Okla., and Dallas. His experience also includes approximately five years as chief financial officer and vice president of operations of Wynco LLC, a nationwide distributor of animal health products.

    Williams takes over at a time when America’s Car-Mart has been struggling following years of rapid growth.

    The company is focusing on productivity improvements for existing dealerships to take back some market share. Car-Mart is also investing in general manager recruitment, training and advancement as well as collections support.

    Williams said these investments “will help allow us to confidently grow and leverage our costs over time."

    “We are excited about our future, and we are committed to our continued success,” Williams said.

    Investors seem mixed in their reaction, as Car-Mart’s stock continues to experience large fluctuations.

  • Consulting Group Reflects on Growth After First Year

    A year ago, industry veterans Tom Stewart and Richard Curtis launched  Auction Management Solutions Inc (AMS) to provide consulting services to the automotive industry. 

    This past year AMS has seen explosive growth in its core business, adding independent auto auctions, service providers, and vendors. 

    “Richard and I are humbled by the success we have achieved in such a short period of time”, Stewart said.  “We started this firm to deepen relationships between consignors and our clients, and to illustrate that independent auctions can and will continue to provide all the services consignors have come to expect”.

    AMS currently represents 17 auctions across 14 states, with new locations being added steadily. The latest addition is Rea Brothers’ Mid-South Auction in Pearl, Miss.

    “We are confident that our new working relationship with AMS is going to provide real dividends for our auction,” , John Rea, the auction’s managing partner. 

    The main focus of AMS is to provide strategic business development services, with an emphasis on processes, profitability and exposure that aid in the growth and success of the client/partners.   “It is our intent to keep our clients on the forefront of the automotive remarketing industry by maintaining a comprehensive and competitive suite of services”, Curtis said.

    AMS recently announced the addition of two additions to their staff.   

    Jamye Carpenter was brought on board in April as vice president of business development.

    More recently, Shelly Frank came on board. Frank birngs more than 25 years of experience in the auto finance and wholesale auto auction industry. 

    Frank previously served as loss mitigation operation manager of Fireside Bank, and as vice president of business development with North Bay Auto Auction. She continues to work with North Bay on projects as a consultant.

    Frank has also been active in the Western Chapter of the National Auto Auction Association.

     

    “Both of these women bring years of experience, a wealth of industry knowledge, and contribute diverse areas of expertise to the team, allowing AMS to provide all manners of service to our partners”, Stewart said.

    “AMS looks forward to many successful years of working with our clients and providing services to, and for, the entire industry.”

     

  • Uncertainty Drives Dealers in Different Directions

    The industry is in a state of transition and dealers are uncertain about the best way to move forward.

    Take the issue of whether or not to finance their own sales.

    Michael Darrow, owner, The Auto Traders in Durham, N.C., said about 40 percent of his sales are subprime deals.

    Darrow also “dabbles” in buy-here, pay-here. Lately, he’s been increasing the amount of paper he keeps for himself, doing two or three buy-here, pay-here deals a month out of 38 sales.

    “The lenders have tightened up a little bit, which is where we’ve seen more opportunity for buy-here, pay-here,” Darrow said. “Now a lender says, ‘That’s a $900 fee,’ that’s when we’ll keep it in-house.”

    Rex Echer, owner, The Car Shoppe, Salina, Kan., is acting like one of those finance companies.

    His store used to be evenly split between straight retail and buy-here, pay-here. Now retail sales make up 70 percent of the business.

    “ It’s a little safer,” Echer said.

    A major issue for Echer is a lack of quality inventory.

    “It’s harder to find anything with good mileage,” he said. “For the buy-here, pay-here stuff, I don’t know what good mileage is anymore. Maybe 150,000 or less.”

    This drives up the recon costs.

  • CarMax’s Mix Drives Earnings Higher

    Executives at CarMax Inc. attribute the company’s success to a pretty simple idea: selling what people want.

    They said the mix of vehicles positively impacted their earnings in the company’s latest quarter. CarMax reported net earnings growth of 20.7 percent in its latest quarter.

    The vehicle mix improved compared to last year’s offerings. Their percentage of sales in large and medium SUV’s and trucks rose to 27 percent, which is about three points higher than the prior quarter.

    “So even last year, when we were little bit lower in large SUV’s and trucks, we were still putting what folks wanted to buy and what were also a good deal for them,” said CarMax CEO Bill Nash. “So I think the supply has increased on these vehicles and has driven price down somewhat but again we’re going to buy what the consumers want.”

    The company’s new online appraisal initiative helped CarMax stock the right vehicles. The online system allows customers to receive a value for their vehicle before coming into the store.

    CarMax executives view buying inventory directly from consumers as a better value proposition.

    “It is more profitable than buying it off-site so we’re always trying to drive as much as possible through the line but even given this quarter where we were allowed a little more off-site purchases because the volume, we’re still able to maintain gross profit per unit,” Nash said.

    Even though CarMax is stocking more SUV’s and minivans, the average selling price remains down a bit. Nash said that this could be attributed to the acquisition prices.

    “I think this speaks to the execution that the stores are doing and the great things that are buyers do, making sure that they’re getting the best price and really at the end of the day that’s really where it starts,” Nash said. “You have got to buy the vehicles at the right price so lower acquisition prices more than offsetting the increase that you would normally see from the mix shift.” 

Copart Expands Facility

Copart Expands Facility

Copart Inc. expanded its New Orleans facility.The auction is located at 14600 Old Gentilly Road. The New Orleans expansion marks the twelfth Copart expansion announced this calendar year.

NABD Honors CFO

NABD Honors CFO

The National Alliance of Buy-Here, Pay-Here Dealers has inducted several high-profile operators into its Hall of Fame. But this year the NABD took the opportunity to honor somebody who played...

  • CarMax Moves into New Market
    CarMax Moves into New Market CarMax Inc. celebrated the grand opening of its first store in Michigan, located in Kentwood at 4431 28th Street. The Kentwood store will have the capacity to stock approximately 200…
  • DMS Incorporates Carfax
    DMS Incorporates Carfax Auto/Mate Dealership Systems has integrated its dealership management system with myCarfax Service Shop tools to help their dealer customers increase the success of their fixed operations. This enhancement makes it…
  • CarMax Grows in California
    CarMax Grows in California CarMax Inc. is currently hiring more than 40 associates for the company's third store in the Bay Area of California. The store, scheduled to open in November, will be located…
  • CarMax Reports Higher Sales, Revenue
    CarMax Reports Higher Sales, Revenue CarMax Inc. reported higher sales and revenue for the second quarter ended Aug. 31. Net sales and operating revenues increased 2.9 percent to $4 billion. Used unit sales in comparable…
  • TV Host Takes Cheap Shot at Dealers
    TV Host Takes Cheap Shot at Dealers The latest attack on subprime automobile dealers came in the form of HBO’s satirical news/comedy show “Last Week Tonight with John Oliver” on Aug. 14. The 17–minute segment slammed the…

    Auto Lending: Last Week Tonight with John Oliver (HBO)
  • CarMax Opens Store in Northeast
    CarMax Opens Store in Northeast CarMax Inc. celebrated the grand opening of its new store in Albany, N.Y.The store is located at 1860 Central Ave. The Albany CarMax has the capacity to stock approximately 200…
  • Carvana Moves into Midwest
    Carvana Moves into Midwest Carvana announced its expansion into Columbus, Ohio. This launch marks the company’s first market in the Midwest region and first in the state of Ohio. Columbus marks Carvana’s seventh new…
  • America’s Car-Mart Moves Fewer Units
    America’s Car-Mart Moves Fewer Units America’s Car-Mart Inc. reported net income of $7.1 million in the quarter ended July 31.The buy-here, pay-here chain reported revenues of $146 million compared to $143 million for the prior…
  • Dealers Use In-House CRM to Drive Sales
    Dealers Use In-House CRM to Drive Sales Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have…
  • Carvana Partners with Credit Union
    Carvana Partners with Credit Union Carvana has partnered with LGE Community Credit Union. Through the partnership, LGE members can browse Carvana's online inventory of vehicles and purchase a car and have it delivered to them…