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com car guys and cardio welcome back to the car guy coffee podcast.
This is lou ramirez, the car guys.
This is frelin arts, the subprime hero and i have just completed the five liner with fred and richie bello, yes, sir, which basically means that i already got through this entire cup of coffee.
I got a little bit of energy and we’re really excited to keep ruining a little bit.
So while we are here – and we are talking with richie bello, the incredible get yourselves ready for some fresh news – oh fresh – make sure that you’re ready to do what it is that you’re supposed to do and get ready to.
Forgive focus fly with us right now, as you listen to the fresh news coming out of the mouth of richie, bello richie go ahead and you’re over here there we go they’re jumping there.
We go jump into the screen here, yeah.
What is going on with richie? Freddy i mean you know: richie always has something going on.
You know from from his cable show that he had up in new york to everything he’s doing from helping other people to going across the country and being gone and in the dark for a little bit.
I know he was over in california for a little while having having a little uh business meetings and stuff.
So i’m excited to hear exactly the details that have been going on richie.
We know you’re excited.
I know you’re excited right now right, so i know you’re excited about.
What’s coming out, you have a lot of stuff building up you’re building a team.
Currently you just talked about that in between the break, which was a lot of fun.
I know you have you just founded this company last year october.
I believe right right, yeah shop, smart, auto folks.
Now this is innovative.
It’s the future.
He’s super passionate about it.
So am i lou, and i we’ve heard a lot of details about what’s going on and i can listen to him.
Explain it a hundred times it’s amazing because of how effective right.
I believe that this they got a little taste of it during the five-liner.
He talked about it.
Some then you know so, but i want to hear about the moves and the shaking that you’ve been doing to make this happen.
So, let’s, let’s get with that, what’s what’s been happening since october, okay, so we first, i mean one of my partners uh reached out to a company and the company does a wordpress site which it wasn’t good to my standard, so we’re converting it into a technology.
We had a stream in over six million cars in inventory, so we build this.
This whole platform right with uh me and one of my partners, which is michael on which he’s a computer engineer.
That being said, then we we did the build.
You know it was really hard to coronavirus.
Actually he was uh staying in my uh home out in the port jefferson area, long island and he stayed there for three weeks.
So then the build happened.
Then we decided to uh partner up with a dealer track and kelly blue book because, as we know, when you have a site like that, you need tools to convert right.
So we got all the tools of kelly blue book for conversion right and also uh dealer tracks tools for conversion.
We’re gon na have the finance driver.
They call it where you’re gon na have the calculator there and the rebate also there on the new car side.
And now, when you fill in the application, when it says delivery to home you’re, going to be able to fill that out.
And it’s going to go right to your dealerships.
Dealer track right, so that was like a partnership that took us quite some time.
Uh to develop.
It took us really been a year plus uh communicating with them, so it finally happened and uh.
There’s a press release out and all that and we’re gon na be sending out a quarterly press release and what they liked about.
It is we’re a little bit different than older trader and we sell the leads right.
So that’s what they like, because, obviously their competitors, you know my competitor is all the traders.
They they own the company.
So that’s, basically it we we sell leads and that’s it and that’s all we do.
We sell leads period and the lead side is we go on google adwords and we go on social media and we have conversion, so it takes us anywhere from 14 to 15 days to come up with your 100 leads.
Now we have three products right.
We have the new car leads and the used colleagues from your inventory unique to your inventory, but we also came up with concourse sales right so for a new car dealership.
Concourse sales is very important because the factory gives you a bonus on that.
So if you’re selling honda’s and you convert at a percentage of what you’re selling toyota customers you’re gon na win, so we also came up with that because we have the inventory right.
So we get the consumers that are looking for toyotas and shipping to honda right.
So that’s what we do so we have the conquest, sales thing right so let’s say you’re a new car dealership.
I want a hundred uh concourse sales a hundred years and a hundred years we supply them.
Dealers really are buying right now.
Car leads right: big increase in uh new car leads right now.
The concourse sales are not buying as much.
Some of them are testing that market out and it’s working pretty good for them, and the other thing that’s really really important is i’ve noticed that the gross profit of the cars are going up.
Yes tremendously supply in demand.
Coronavirus came out.
Eighteen thousand cars were on track to do dropped down to twelve thousand retooling.
One like this, the oems pushed back now, there’s not enough inventory out there gross is on a spike way up.
Your average gross is hitting the roof.
Oh yeah, absolutely national figures.
You know so your analysis on that is key.
That’s that’s right on the point.
That’s exactly what’s going on yeah they just they’re hitting numbers.
I see the reports, you know and everything and i see a lot of stuff go through the desk.
You know what it’s crazy: the numbers man supply in demand numbers are high, and that being said, here’s where, where the problem is with that that the the banks now are taking what they want, i don’t know if you notice the banks are not buying as deep As they were before coronavirus they’re, not it’s getting a little bit.
You know spotty there with that.
You know, and you know a lot of people tabled their mortgages.
So i’m curious if the experian numbers right are coming back with these credit scores.
If the people that table their mortgages, if that’s gon na hurt the car business in the next six months, you know and that’s i think that when you’re talking about for sure it’s going to do something to the car business, i think it’s going to definitely make A shift happen so um, that’s something that i’ve been preaching since you know i’m the subprime hero right and i’ve been definitely excuse.
I’ve been preaching that, since this whole thing happened, people who were at the near prime or just above prime credit, those people they’re going to have a little slight struggle.
So this is going to happen.
What’s going to drop them all right into that subprime market now, so, what’s going to happen, is that these dealers out there that never did subprime all of a sudden are going to have all these customers come in that are now subprimed that were their prior customers? That have private buying habits, so they want to make sure that these customers are retained, which is your you know, it’s smart to do that? Retain your client base right, if you can’t retain them, because you don’t have the market or the right banks in place.
For that you’re going to fall apart, you’re going to lose customers they’re going to be going to the dealer up the street, who deals with subprime like me and you’re going to lose a lot, that’s already happening before covid.
Now it’s going to happen even more, because that market share has completely raised it’s going to raise even more we’re, not even done with kovid.
Yet folks, we haven’t even seen the effects, because those things don’t report to months later right, you know, imagine being 90 days behind on something and i’m not even talking about you talking about tabling those loans, a lot of those banks, they were cooperative, they helped out.
So will it affect it will but not quite like it would be for the people who could have loans that could not be tabled.
Other loans outside of the you know those mortgages and other other places or people who just didn’t realize, due to ignorance and no offense to anybody out there who had this happen to you, because it’s not ignorance, it’s not a bad word.
It’s just you just didn’t know: it’s lack of the knowledge and the lack of the knowledge of knowing that you could go.
Do that right.
So some of these people are going to really have bad bad things happen or they’re, just going to say, forget about it because the whole world’s going through it right.
So now your subprime market is way bigger huge.
So, if you’re not ready for that, just like you weren’t ready for home deliveries, just like you weren’t ready for you know doing uh no touch delete.
You know sell sells to people it’s going to really affect you, um, so yeah i mean 100.
It’s going to make a huge shift and you have to be ready for that shift.
Well next month, i got ta.
Tell you something experience.
You know that experience of data company right yes before they sell your data right, so i said really, you could call them up and get the credit scores for the last quarter.
So next month is going to be a quarter of of reporting.
I saw some numbers you’d be surprised that the credit scores have dropped a lot down since coving.
Now, that being said, customers come in thinking they can get out of their trade that now the ltv i mean you know all these banks will they get tightened up.
All the ltv’s got to be right.
The time with the residency got to be right old, the job.
If they say on the app it’s 52 000 i’d stick.
I mean this starts they’re going to start stipping people, because you know what, as a bank, you look at this right.
Oh wait! A minute he’s coming in off the train and he’s maxed out on his credit, he’s dumping detroit to get another trade to go bankrupt.
So and that’s what’s happening, oh that’s happening, the credits are maxed out.
The credit scores didn’t drop because of slow pace.
The credit score dropped because, on the revolving credit, it’s so so high maxed out yeah everyone’s trying to doubt 100.
What’s going to happen, is that analyst is going to look and what you’re saying to deal a trap? They have that scoring system.
Oh well, it’s maxed out! Ah, i don’t want it because that’s on track to go bankrupt and that’s what happened if people didn’t have that income coming in they’re out of a job or they’re working from home and they’ve cut them back now, they’re using their credit cards to get ahead, and It’s going to catch up and now the revolving credit is off the deep end, you’re hitting that’s all right and speaking of bankruptcy.
That’s that’s another thing: if you’re, not, if you don’t have bankruptcy, programs and banks and lenders that allow that you’re going to have problems too, that’s something bankruptcies are going to be on a rise.
I guarantee you’re going to see the courts flooded with them, and it’s going to people do utilize bankruptcy uh to the best of their family.
You got to remember that we’re we are all an american people that are trying to find a way to live out.
The dream – and so many people need to have a car right, and so many people need to have a house, and so many people need to have the commodities that we deal in right right.
So the the way the banking system is is worked.
You kind of pick your customer and then you pick the bank that matches them, but your customers are changing.
There’s things that are changing about your customer on paper, not the person, not the people themselves, the circumstances, the circumstance, but the customer themself is adjusting and just exactly like fred just said earlier.
You know those people are part of your database and you still want to farm them.
You still want to talk to your sales person and say how come you haven’t called mr jones from two years ago.
It’s time for him to come trade in oh well, uh.
We we don’t, we don’t help five 500 credit scores.
We don’t do that here.
You know what i mean.
Well, mr jones is going to go down the street and and he’s going to pay top dollar with somebody that he doesn’t really know or he’s going to get caught.
Inside of you know the same situation.
You just lost that piece of what was going to feed you for the long haul as a salesman, because their credit will adjust and they will fix it.
They’ll get back to normal now, but they they need an opportunity to, and you know and that’s why you know – and i know richie’s the same way and i know that you’re the same way you treat every customer that walks on your lot.
Exactly the same, if you do that, and you give everybody a fair chance and you make sure that you have a program for every type of customer that can walk on, i promise you, your grosses will go up.
Your numbers will go up your sales.
People will be happier because they’re making more money because more cars are going out the door.
Your owners will be happy.
Everyone’s happy vendors banks, your lenders and you build these relationships and you have fun.
You know i.
I’ve had a lot of fun building subprime relationships, which i think a lot of a lot of uh.
Prime, you know f, you know, managers that you know, i’m just an f i manager i deal with prime and subprime.
I don’t believe that there should be two different departments.
I think that you should be up well verse on everything.
Prime, is very simple, good credit, okay, good interest rate.
I i’m gon na get all max terms i’ll be able to get every back-end product.
I want some prime’s a little tricky.
You have to do a little work, so i give more credit to the subprime guys because they do a really heck of a job of making sure they have the processes and if they’re doing it right, you know um of making sure they get their tips.
Making sure they do this, you know i’m, i do 75 plus, probably a month subprime deals, and i deal with that.
You know sitting sitting around a hundred cars a month.
At least you know, and when you do, that 75 cars that you’re touching the job and i’m gon na tell you 75.
If i, if we have 75 74, are going to fund 74 are going to have all their stips in within the first two days of purchasing the car, if not the very first day before they take delivery because most time i won’t let them take delivery without Steps, but my guys know that they understand that, so they make sure that for success, so they understand the process, it’s all about, putting that in there implementing the right process for your customers and explaining that and being transparent with them hey.
This is why i need it: it’s not because i’m picking on you, but you know, banks require it and once we have all this stuff, we send it to them.
We’re fine, you know so.
Everything’s good has changed, though right and so man that’s going to take professionals to make that nice and easy and streamlined for them.
You know, and richie is, is plugging in tools that are doing that for um, for dealers, um sales, people and then, most importantly, how his tools are.
The consumer is getting what they’re looking for, which, where she’s got them, batman’s belt, you know he’s got a utility belt ready for everybody.
That’s what this whole shop smarter is.
I’m showing you guys.
It’s got a little bit of everything in there for you, you’re, going to find a solution for what you need, if you’re a dealer out there and you’re just trying to get a little edge, you need to get a hold of richie bello as soon as possible.
Richie, how do they get a hold of you? Tell them yeah tell them.
Where do they need to go? Oh all they got to do is call me 631-578-9018 or email me at richie at shopsmart otos.
com, i’m going to scroll your number down at the bottom.
So, while we’re talking for the next few minutes, everybody can see that that is correct.
There we go all right so we’ll have that down here.
Folks, that is his line.
Give him a call hello he’s happy to help you out with that richie.
Is there anything else that you want to talk about? That’s fresh, maybe something personal.
What’s going on, you just made a move where what what’s going on with that yeah? Well, you know i’m very happy uh.
You know i always wanted to come out here.
Just let you know my whole family, brothers and sisters and cousins everybody’s out here.
I never liked it out here.
I came for an opportunity, so i was i came because i have to be out here until the month of june, the last week of june or the middle of the last week of june and the first week of july.
So i’m going to be out here this full year, i’m looking to have fun, i’m looking to work hard, but i also play hard.
You know you know, like you guys know that i like to pull a lot and stuff like that, because i’m a big guy, so the thing with the pool is a good place for me to work out.
You know yeah, so you know.
So that’s what i like, so i’m gon na have a nice time and i’m gon na work a lot and i’m gon na spin a lot of different solutions.
You know, and i’m thinking about a really good solution, because really really the local economy is really driving me crazy, because the local economy is going away.
A lot nobody’s going out, buying anything everybody’s with amazon and all that.
So i really want to have something for our local businesses, because you know what the local economy is key.
You know people say local seo or dealerships local seo.
I understand that right.
Just imagine if the local economy is getting it’s going away from us going away from us and people are not seeing it.
It’s really going away so really in this next year.
I want to.
I want to put something together with you know: some good people that fund me all the time on a solution for the local economy and we’re thinking about it.
Our team is consistently thinking about it.
You know wow, that’s.
That is something that’s folks.
That’s aside the car business, but yet it’s not so i love it.
I think that he’s you’ve got that’s a great great ball to start something with i like that.
I think that that ball is going to turn into a giant giant snowball.
You know it’s just going to keep growing with the more you push it, you keep rolling it around and you get more people involved next thing.
You know it’s going to be just a huge thing.
So that’s a great idea.
I think that’s it’s genius.
In a sense, because i think he’s 100 right he’s got his thumb on it right now, guys that the local economy is not doing well because no one’s putting money in there.
I understand it’s, not just the local businesses, mom and pop stores.
It’s everything it’s just! It’s your taxes going to your local economy.
It’s fixing your streets, all that type of stuff, there’s so much involved with doing things local make sure you do that, make sure you support it folks, if you’re out there at a business.
I want you to make sure you put you go to their facebook page and you give them a like you check in there you let them know that you shop there, you let you give them their your rating.
Your reviews do all that stuff.
You guys what you guys won’t go somewhere unless there’s a review so put a review.
If you find something nice make sure it happens, you know do all the little things and richie.
I hope that if there’s anything we could ever do to help you with that.
You know i’m you know.
Obviously i’m my my mind is um yeah we’re we’re so inspired yeah.
So i mean there’s so much that we want to just keep speaking about, but folks, there’s so much fresh news that you could just go back and consume a little bit more of.
But the heart of demand that we’re speaking with right here is to make sure that we take care of a key piece of the ecosystem of our economy and that’s the dealerships and the families that are attached to the employees.
Inside of that i mean, we’ve spoke about between 50 to 100 employees, but now multiply that and their families.
You know i’m saying times three four people per you know what i mean: that’s a that’s such a spread of people and personnel and and all these things, and he really values that it’s really at his heart.
You want to know more about that.
Go back! Listen to the five-liner uh, but folks.
This has been some great fresh news about.
What’s going on with richie bellow and all of the adventures that are uh going on today and in the future folks, we can’t wait to have them back for a little bit more.
We’re gon na be back in a few minutes.
We’re gon na take a quick break, get another little sip of a little more car guy coffee we’ve been having fun brewing solutions with fresh news, richie bellow.
Thank you so much.
You thank you.
You’re! The man guys i’ll be right back .