doing some stuff on the road for us; and now we have back to here and Welcome back to game face Monday, and we got great solutions for you here like always and Becky.
We have a packet we’re so happy.
We have Becky talking about special finance and finance and how important special finance is today to all consumers.
Becky, I’m glad to see you and I’m glad to have you back on the show and I’m so grateful for you being on this show, and I want to talk to you about special finance.
What you’re seeing today versus what tomorrow was and where we headed towards the present? Oh gosh, that’s a heavy question because you know I wonder if dealers realize what’s happening behind the scenes as far as the information that is available to customers and even our subprime customers.
Well before they even make their way into a dealership to purchase a vehicle, and those are customers too, that have some subprime credit, and I think it’s important to point out that many of these customers kind of already know that they’re in vine.
But they don’t want to get dragged through the mud either.
So if there are other providers that are offering a customer, the ability to do some of this heavy lifting before they make their way into a dealership, meaning they’re willing to offer their customer the ability to do some of the stuff desking in advance, then they’re likely Going to go there, meaning that customers likely going to utilize some of those tools to be able to do something.
Soft dusting capability, before they get into the dealership, to determine kind of where they stand based off of what type of vehicle can they likely get approved for what they budget for based on those variables, and they think that that’s really important.
The dealers give consumers the ability to do some of that heavy lifting before they make their way into the dealership.
So that’s that’s, that’s happening right now and but then we still deal with we’re still chilling with dealing with the 1890s mentality that things are always the same.
So forget it.
So many of these dealers don’t even have the digital retailing in place, and so now customers are coming into a dealership and frankly they don’t have their sales staff trained to manage this business in a couple ways: number one and being compliant and number two being more Profitable and if you’re not doing, if you don’t have a training in place, train up your staff to understand a certain process that you really need to put in place to support that business to do a better job and in instead of driving a customer through through The entire day trying to learn the customer on the right car to begin with.
Instead, today’s we know some of these customers are coming into the dealership and put the customer on wild car only to drive them through the mud and eventually try to on the vehicle that actually works for that, and that can take literally all day and the frustrating Part about this whole thing is that it’s affecting it affects the salesperson, and this is why we have massive turnover dealerships.
I think that’s part of it because of the training, but it’s also after a while gets pretty darn frustrating to have to land a cusper on a car and then find out.
The customer doesn’t qualify only to take them off the car or we send the customer into the other night office only to have the profits driving down to the deal, because we can’t get the deal approved because it’s not going to work and the only way to Make the deal work is by cutting the profit.
When you have this, when you have that happening, you can imagine that the salesperson is doing one pointing fingers at the f9 department and or sales management.
This and all I do is put a customer card on.
We do is take the profit out of the deal to make this whole thing come together, so it gets really ugly and I’m glad you brought that up because, as you know, David banners from cars right right.
They have a great solution.
So when I refer him to a dealership right and the dealerships that he’s got, some of them don’t do a great job.
So here’s the thing they gives him a hundred leaks right.
So out of those hundred leads, they say they sell a ton tank cars.
Okay now and he’s got tremendous one of this process with SMS, with all that he makes the appointments show okay, but the biggest problem that I see that there is his customers are okay, with whatever car they get, but LTV in the dealership is so high with A hundred and twenty a hundred and twenty five or so when I go visit, these stores that get these leads.
I see it in black and white.
I see a customer with a little bit of that bad credit, but a little bit of challenge.
Credit, okay – and you want to provide this customer with the right solution for them right.
It benefits them, but their LTV is high, but that’s not the only problem that I see they get a payment call and that because the budget it doesn’t fit with the customers budget and then the finance people what they do is they send it everywhere right, at Least out here and what happens with that process? Is you got a real problem? Your LTV is a hundred and twenty five percent, or one hundred and thirty percent you’re not delivering a car.
Even with great credit.
You have a little bit of a hiccup trying to get that deal.
What are your thoughts on that backing? Well, you know actually it’s kind of ironic I’m working with and it can’t.
I really can’t talk too much about this, but I am working with a platform provider who really has – and it’s a big it’s a big, it’s a big deal, but they have actually created a dashboard of sorts that helps an car dealer to manage those variables and In a very quick and efficient way – and this will help the sales manager, even in some stores, they actually have sales people believe it or not – that are utilizing this tool, this dashboard tool and in an instant it can literally help the dealer to manage the transaction And the and then bases off it bases those variables, the budget, credit that sort of stuff and the advances on the inventory that they have and it’s actually dodging even better than Promax used to be, I mean Promax.
I don’t know permex still out there or not, but this is a it’s even better.
It’s a much better tool and I’m really getting into that because the the ability, first of all, to determine who are you working with and credit.
You were cursed.
Iraq, David Vetter, he’s awesome, he’s terrific.
We had him at the Baltimore epinephrine table, it was great to have them attend and yeah they have the lease.
The thing is, their leads: you’re, fine, it’s what you’re doing with these leads that matter and, like you said, and if you’re not managing that that book of business correctly you’re not going to be effective and if you’re putting the customer on the wrong car and the Advances don’t check out from the bank.
That means the customer doesn’t win because they Canyon of the payment.
Then, of course the last thing.
Don’t you want to be able to do.
Is you still want to be able to sell the customer? I would.
I would want to sure that my customer, especially a customer unless some slope a derogatory credit.
I want them to have a service contract.
I I want to make sure that that customers leaving out protected before they before before they leave the dealership, and you know the last thing I want is that customer having to figure out.
Do I make a car payment or I fix my car right, so we want to reestablish that customer’s credit and we want to put them on better terms three years down the road.
So when they’re back in the dealership right the back end and we have a better business – and we know that we retain that business be backs – are always the best best business.
So we cultivate that.
But to get back to where you get that it starts from the very beginning and every time I go into a dealership.
This is where I start, and some of the guys go start doing that beyond back start enough, and I well, I hear you but it’s like you know.
As I said last night on my other night on the edge show, it is about a restaurant, the state of a restaurant, you get the order coming in and once you have the order coming in, if it’s not correct, guess what it comes out.
write said that, because you that F & I egg show you got it’s amazing, I share it.
I watch it and it’s very informational and I got ta, tell you something.
That’s a great show.
That being said, I’m going to go for a break now and we’ll be back within two minutes.
Just we’ll take a look at this video.
We got up there and we’ll be right back hi, guys back attorney here, president of tourney consulting.
We provide the very best in finance and insurance training for automotive, recreational and allied industry professionals.
Since 2001, I’m announcing my newest Evan, I dealer round table live webinar events.
You got to be here all about all the topics what’s taken place in our industry today, I’m taking it online, it’s a convenient way for our dealers and managers to keep up with, what’s happening in the industry, to stay on top of your game.
I realize your time is valuable, so that’s why I made the live: webinars short, informative, fun and interactive.
I guarantee you’ll get the best out of this one.
Our live event from 1:00 p.
to 2:00 p.
Eastern Standard Time on Friday December.
The 6th I’m inviting the best talent to join in these conversations to discuss what it takes to be a huge success of sales than F & I make sure to register at Evan.
Comm, it’s all about how to boost your service contract sales, learn all the greatest secrets of selling Evan.
I it’s live of an ideal, a roundtable webinar hosted by Becky Chernykh, open to dealer principles, retail management and allied industry professionals.
So with some they know, I have been in the automotive retail industry, my entire life and in the trenches in and out of dealerships throughout the USA in Canada, which means, I know a little something about the business and how to help you be as highly successful.
As you can be, I’m also the host of the Evan.
I Today Show on CBS of so make sure to check out all my episodes.
Let’s face it.
Many think that Evan is easy.
Well, it’s not as easy as it looks, and I’m here to help you to stay relevant and perfect warmth at your highest level.
How are you so I wan na make the introduction.
Would Chris Becky that’s some video Becca? It’s what you say.
Let me tell you something: Becky, you look like you’re, 25 years old on.
Why you’re doing four great job now listen! I want to make the introduction with Chris for the introduction.
Chris was a great finance guy right.
He does special finance so over a decade ago, Chris started a company that helps the consumers.
Now Chris wants to help the consumers.
That’s what he’s about? Okay, you got a care for your people.
First, nobody cares how much you know until you start really caring, and I really analyzed his company in the last months and seen he really cares about customers.
Okay, he wants to.
He wants to repair it and fix it, and he’s got a great solution, because what I see the behavior Becky is like this: the first: when a customer hits his age of 24 or 25, he starts buying a car.
His neighbor gets a car, they go buy.
Another car they become upside down right traditionally.
So what happens? It’s not that they’re bad people is that the situation puts them in a bad state of mind and bad financially.
So then they become a subprime customer by the time, they’re.
So, even though, today this credit, kamar people, don’t bother to remember, inspect, don’t expect so it goes the same thing to your credit into life.
So that’s why chris has a great solution and we have enough data about new car buyers and customers that have a little bit of challenge.
Credit, not really bad, a little bit of challenge credit.
They can get an automobile because they shop at least four or five stores and, as we know, an F and I you know and there’s a Truth in Lending law.
If you get turned down and ABC motors, see de Motors can’t get you approved unless they change the entire structure of the deal, add a cosigner or change the whole structure.
So it just doesn’t.
If a dealer doesn’t have it that dealer don’t shop because you’re just getting your credit back, so that being said, Chris tell us about us Becky first up, first and foremost, pleasure to meet you.
Finally, after a long time, I know we share a lot of things, especially in F and I my backgrounds in finance.
I also teach F and I and I think that you know I was listening to the show prior to getting here and a lot of what you were talking.
I think tie into what we’ve been talking about for some time.
Richie, and that is you, know, retention.
What is the dealer strategy to get these consumers back to the dealership and to a point where they’re, financeable or leasable, or where we could help them with their monthly payments? And I think that it’s a big issue with not just our industry but in the funding industry as a whole, and so I created a company called apex credit fix ten years ago, where I started out just dealing with funding companies.
I had mortgage companies that were referring business just to help them, maybe remove inquiries off a client’s credit bureau or help them with removing collections and stuff like that, and our dealers today spend hundreds of thousands of dollars driving traffic into their business just to have.
Maybe thirty percent of that business turned away due to bad credit, so I said what is the strategy to get those people back in to the dealership or if that customer is going to swallow a higher payment because of their current situation? What is the strategy for three years to get them to a more comfortable standpoint? Also, our finance managers doing the click, click, click, click, click, shotgun that deal to 510 lenders and now that customer stuck with inquiries for two for two years on that credit file, you know what’s the strategy, so I thought it ties in perfectly and I allow you To elaborate on that and give us your opinion.
Well, thank you and it’s it’s nice to meet you as well, and thank you again guys for having me on this afternoon, but I couldn’t agree with you more.
I think the overall picture is we have to do a better job by treating it that subprime customer like a real customer and not feel as if it’s okay to prey on the subprime customer.
And I also believe that by treating this subprime customer right to begin with and getting them on the right vehicle to begin with that they actually qualify for and where they can afford those payments.
You’re gon na get a whole heck of a lot better customer and retain that business.
Nothing is better when you take care of that customer and they’re coming back three years down the road and we can get them into another type vehicle and their financing you know, has you know, they’ve been reestablished and that’s that’s a good thing, and so this is One of the things that I definitely encourage dealers to have a better understanding.
It’s you know: let’s, let’s do the right thing at first right now, so the some we’re retaining more business in the future and we’re only talking two to three years down the road.
When the customer, we can get the customers back, get them out of those vehicles and into another vehicle that they can form and likely with a much better, hopefully with a better interest rate right to go along with it.
But it tastes the entire team to make it work right, Jake from sales that her whole culture has to be.
You have to have a better understanding of how this works and, like you said you know, and I said last night I was on a roll last night when I did my Evan I on the edge frustrated.
You know, I think it’s getting worse.
We have sales managers on the desk, who have never been the f9 school who have never been enough and on many of these guys still – and it’s not everybody, because I work with some very talented – does guys, and I will tell you there’s a lot on that Desk that don’t belong there right there creating a huge problem.
They don’t know how work deals.
They don’t understand, deal structure and, like you said, that’s all they know how to do is shotgun deals to 10 or 15 banks until they get their best approval problem with that is they’re actually costing themselves profit because, as I said last night, a $ 500 seven $ 50, a difference is down game.
It could make a big big freakin difference right if what makes them think you know what you’re talking about doing it right, and you know just that or even knowing something as simple as what what credit bureau that lenders gon na pull, you know, I mean listen.
They don’t all use TransUnion, Experian Equifax.
If you know what scores better you can you know it’s it’s taking a more proactive approach to the deal and I think you hit it on the nail on the head and you know our desks today and for a long time don’t have that F & I Experience so when we talk about path, would you recommend sales finance, then, as a sales manager process? I think it is Richie – and I were talking about thanks for changing in the industry like believe it or not.
Things are actually changing behind the scenes and I think the others need to to get on board with this digital retailing, and I think that we should give customers the ability to do some of the stuff dusting earlier on online.
That’s the first touch point and really be able to an even developer BBC to be able to address us for specific questions when it comes to this, and I think we need to be a lot more proactive when it comes to texting our customers engaging with our Customers earlier on the day, you know where we would say we’re not talking specifics until the customer gets it to be up in my office.
I’m telling right now is gone, and that is even with that subprime customer, because customers do have other options that are available to them through other providers.
Let’s face it.
Third-Party providers they’re in on this whole deal carvanha.
They know how to work a subprime customer Carmack’s knows how to work a subprime customer, believe it or not.
That’s why they do as well as they do so again.
I just think that the sooner that were in involved in an engagement that customer earlier on and training of our BBC training up how we work with our sales staff and answered answering and addressing those questions and even in the desking process, is huge.
So for an example and then a Baltimore Avenue ground table, we had James can’t there, who is an attorney for he also owns mosaic.
Almost Lhasa, that’s a and he’s he’s great he’s been around for a very long time.
Attorney knows his stuff and in fact right now these often several lawsuits with some as an expert witness and for couple car dealers that are going down for this.
But basically, what’s happening is that dealers or pulling credit, even if, when the customers not landed on a car as soon as they almost get out the car that they’re in they pull crime, I could get what they’re doing and why they’re doing it.
But it’s actually not me yeah, so I think it’s actually better.
Maybe you’ve a lot utilize.
Turbo ass, is a great tool to be able to determine.
Who is this customer? Is it real employment and that’s important we’d established earlier phone as soon as you can get to the truth, as you can yeah at that point, it means that we need to list you to the customer.
We need to bring the customer and we need to set the customer down.
We need to determine those backers and we just need to do a better job asking the deal.
Listen it all.
It all revolves around one thing.
Training right systems process is the right training in your store, creating that recipe for success.
You know take that more proactive approach, so listen Becky.
We want to thank you for being here today and we hope our dealers reach out to you.
I know you’re launching your live training soon.
Is that correct? You want to elaborate a little more on that before we close thanks a lot Chris.
I appreciate that I am gon na.
Have my webinar and my first webinar is the ethanol dealer around Tilo webinar, and that is going to be on December 6.
Now this particular one they’re all going to be we’re gon na have webinars throughout the year, but this particular one.
The first one is complimentary to our dealers and it’s all and how to boost your service contract sales, and so I also hope another webinar in the near future with regard to subprime, so, hopefully uh.
If you to be a guest on that, let’s go I’m in I’m in that first, one is when the first one’s gon na be just separate, the six I’m sorry Friday December, the sticks and then 1 to 2 p.
but that’s Eastern Standard, specifically through senior time.
We got you okay, number.
Sixth, what is it joining in? Listen.
We hope our dealers we to reach out to you to get some of your knowledge and experience.
You know: listen the world that I’ve got me easy.
I’ve formed that by the time I get you in that show you’re gon na love this this.
This is a game changer big-time when it gets to helping the dealers other quick dashboard to getting those variables down before they put the customer in the wrong car and on the note of game-changer right, I want to keep.
You said something about.
The business is going through a whole process into changes.
Let me tell you one of the biggest changes and I’m announcing this now.
The marketplace of Facebook has tremendous amount of leads.
The dealers don’t know what to do with them.
They don’t understand the chat.
Six or seven months ago me and my partners have developed using the artificial intelligence and we’re ready to announce this at the probably by February, and I already have a sample using artificial intelligence.
You got ta give me the data of your chat for the last 30 days.
We upload that using artificial intelligence, we set up appointments, we send out a PDF of the vehicle, it’s all a software, no human interaction, okay and it’s all automated and it’s based on the information that your chat on Facebook has in the last 30 days.
So the system learns as it goes like the heating system in the house, right that it’s artificial intelligence, ooh, there’s all kinds of stuff it goes as it.
Let me tell you something: there’s a tremendous opportunity in this marketplace.
Some dealers are saying this is more trouble than it’s worth when they say that to me I listen, I said.
Aha, I see what the problem is.
They don’t understand it, they don’t get it.
They don’t understand even how to reply, because it’s a different customer totally different customer.
It’s not the same and a lot of those customers that I’ve noticed have a little bit of challenge credit and when they ask to chat – and I have all this data guys you’re telling these customers that they don’t qualify for a vehicle.
Oh, my god, I know so many stores in this marketplace that are doing that.
Just keep that in mind.
There’s a new product, that’s gon na, come out with this chat that marketplace.
Take it serious because it’s only gon na get bigger, bigger and bigger, and we have the data of what’s going on there, so just that in my back there, you always have to gate, I’m always looking into new solutions, a new way to increase our productivity in This industry, because let me say this, why I do that? Okay, I do that, for one reason, when a dealership goes out of business, you’re talking about 80 people in your marketplace, minimum that out of a job, it’s killing the local economy, what Amazon’s do wan na stir in the local economy anyway? But I don’t want to add towards a disaster on our local economy, because it’s terrible what’s going on, it’s really really really bad and I’m in another industry that is so important for me, the local economy, it’s the catering, business, okay and lead to the carbons is A $ 35 guess what I’ll lead it: a catering business $ 350.
It’s really bad! So that’s why I’ve always tried to build new solutions to help the local economy, because guys, it’s all about the local economy.
You want where you live to be very well-off and that’s what I pride myself and Becky, I’m so pumped up about your round table.
I am so happy.
I mean you’re always doing these roundtables.
I mean the best of luck and I want to see you very soon.
Hopefully I didn’t jump on an airplane and see you in Georgia within the next few weeks.
I mean I’m looking forward for it over there in about two weeks.
I know you would synergy and Jean Fontana just a week ago, when you guys did something together when they’re ready to make that announcement yet, but soon we will and thanks a lot for being there and now talking about game-changing this kid el patron this kid.
Let me tell you something: kids kid I mean I talk to him all the time.
You know this.
Kid is like so much talent, one human being possesses so much talent he’s doing this game change.
You know he approached me about this a while ago, and I said: hey: okay, yeah sure you know how I am right.
Okay, this kid is amazing.
I mean everything he touches.
This guy really works.
Has the talent and it’s like a firecracker he’s – got tons of energy? I feed off his energy.
You know I call up just to get, as you know, I’m getting old already, I’m 55 years old, I’m done now.
So I need new blood new energy around me.
All the time you know, I definitely wanted to be part of the dead pecker club, not interested.
You know that I can get away with murder.
I always did right away.
Would take a few minutes to hear from our sponsor my good friend, Rudy T aka el patron game, changer conference, part 2 right in Miami 13, 14 and 15.
It’s an event you won’t want to miss.
I was at the last one.
I was one of the panel speakers.
We had an amazing time and talked about training and mindset.
Listen, Wow, an idea put down on paper becomes a plan, a plan executed executed becomes reality, you guys be absolutely amazing and let’s check it out.
We go , what up guys petronia? How are you becoming a billion-dollar GM guys? I wan na congratulate you for joining um, a twenty five thousand giveaway.
What I’m gon na give you guys 20 more chances, okay to win the extra twenty five thousand dollars.
Um, giveaway okay, so if you register now guys getting changed Conference right 2020 is right around the corner and you guys know that is a lot of changes happen in the car business.
So I’m gon na show you exactly how how I took um.
You know my dealership to the next level right.
This is my six dealership that I turn around.
I got the number one motivational speaker in the world Eric Thomas, you guys know him, and I also have Alex better CEO cars comp a keynote of my event.
So I also gon na show you methodologies that I use at the dealership and also for my brand, how to take it to the next level in 2020, and you know new decades, just stays away so sign up today, alright for 2020 and game change, you can’t, Let’s make this happen and see you guys in Miami please so Richie.
What do you throw your thoughts on this conference? I mean Rudy’s pulled in some talents like Eric Thomas who really really likes the audience on fire, Alex Vetter, CEO of cars, calm as a keynote and a full line of promises to make 2020 the next decade a real game-changer for dealers, managers and top performers.
Now, here’s what I got ta say about that.
There’s all these conferences right, there’s a difference between game-changer and all these conferences.
Rudy is day-to-day like you are day-to-day in a dealership.
So when you bring that person to a conference, you got real-life experience versus now.
Everybody knows I can read right, so the content that I have is Rp.
I don’t roleplay it or anything right.
So that’s different! That’s life experience.
Okay, that’s a be testing! Okay, that’s really seeing! Okay! Let me try this that doesn’t work.
I’m gon na try this! You know a trainer goes in, and trains based on the content trained and see if it works.
Brandon Brandon Harrison right, the other guy that was out here this weekend.
He was in the studio for hours, doing, videos, okay, he works as a corporate trainer for the gym, Ella schools so he’s on fire he’s on there.
By the way they go to the game change.
I want to make an announcement Brandon and a few of his team members are going major group, the Jim Ellis, auto group they’re going okay.
So now I’m gon na say this to you.
It’s so important that you’re on hands and you do with it.
That’s what Rudy does yeah when you were at plaza one of the things that I respected from you.
So much is you’re on hand.
You do a meeting you’re on hand, mat working managers, sometimes I’m not working man, yeah he’s completely transparent.
I mean what I see is actually what he’s doing he’s at that store every day he’s interacting with his staff he’s talking to customers so have customers call him.
I mean he’s really really hands-on and that’s what you have to be and that’s what the world and business is demanding a transparent experience Carano and he creates that environment over there.
So my hat goes off to Rudy and this conference.
I hope to see you there before we wrap up today’s show.
We just want to share once again our Christmas party on December 4th at the beach club.
It should be a blast all are invited with their guests right, correct and here’s the thing.
The sites up, Ritchie, Bello, calm, click on it and it says Christmas, ok, Christmas, right, take a look at that site.
Just fill out your form no question asked: I don’t care where you from it.
Don’t matter to me, you can be from not even in Long Island.
You want to fly out here or you got, but let me make a few announcements.
They even bet it from cars direct, it’s gon na, be there ok, Rudy and there’s a bunch of vendors.
Like Barry from that appraisal, company he’s amazing.
Ok, I’m gon na have tremendous vendors there.
It’s all on us guys all on our vendors, and I want to thank the vendors for supporting me with the Institute and let me tell you something especially my good friend, David Bennett from cars direct.
I appreciate him so much and he’s gon na be there, which is with a guy there.
That’s in the area this is coming out and it’s gon na be there and it’s gon na be great.
It’s gon na be a great event out patrols.
Gon na be there Chris Gonzalez is gon na, be there I mean I got so I’m so blessed because you know what, like I said the other day in the post.
Real wealth is not money, real wealth.
You know what it is: it’s resources and tools, because that equals big money, because when you have the resources and the tools now you capture talent and when you capture that talent, you’re maximized and you grow, it’s like a snowball effect.
So you know what I didn’t come up with that post.
I saw somebody post that and it was really really interesting and I put a little twist on it about resources.
They had said something else, but to me I believe that resources is real wealth, because when you have the resources you can get anything talking with Richie.
You know what they say.
You can’t fly like an ego when you’re amongst pigeons right so surround yourself with the right people correct.
Well, that’s it! For today we want to thank once again Becky Chernykh for being with us today and our sponsor Rudy TL patron for sponsoring today’s episode with the game-changer conference – and here we are game face Monday – make sure you keep a game face on I’m your co-host Chris Coons Allas with your host Ritchie Bello, and we look forward to seeing you next Monday keep a game face on you