Featured Articles - August 2013

• - 2 ratings

  5 Common Collection Mistakes

  

  David Brotherton

  Collections is the single most important activity performed in our organizations. That is a bold statement but I don’t think very many dealers will disagree. Without collections, we can’t operate; repossessions are a part of collections. The most important assets in our industry are our paying customers. Unfortunately, customers don’t always stay paying customers and then our decision making swings from the customer to the collateral. I’d like to focus on some commonly made mistakes that can lead to taking losses earlier than we should have.

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• - 3 ratings

  Avoiding Repos

  

  Peter Salinas

  Start with a quality vehicle and recondition until it will last the life the loan. Put a warranty on the vehicle — something beefy — that insures the customer is covered if the vehicle suffers a mechanical issue. Pay for service work even after the warranty expires or work with the customer to pay for repairs over time. Be a life coach to help a customer through a divorce, loss of job or unexpected medical expenses. This is recipe to avoid repos. Unfortunately the recipe doesn’t always come out right.

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• - 1 rating

  Credit Card Fraud: How to Protect Your Business

  

  John Krivacsy

  Every day we hear warnings about the threat of identity theft and how we need to guard our personal data including our credit cards. Yet, we remain a mostly plastic-based society where many people no longer carry any cash in their wallets. Swiping a card is part of the new skill set we acquire at a very young age and has replaced the piggy bank as a way to manage our financial affairs. Businesses that do not accept credit cards are definitely minimizing their customer base and many businesses have expanded their business through internet sales. Even businesses like fast food restaurants with 99 cent menus have recognized this new way of conducting business. In the past, credit cards were only used for major purchases, now they are widely used for a package of gum.

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• - 2 ratings

  Managing Repossessions: What the BHPH ‘Professor’ Does

  

  Tim Byrd

  This is a subject near and dear to the buy here-pay here dealer’s heart and a fitting subject for this month’s Dealer Business Journal. One can only imagine how wonderful life would be if all your customers made their payments on time. There was no need for debt collectors, no tow truck or had no repo man or need for skip trace.

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• - 3 ratings

  ABBRoad Rolls Out Online Classified Solution Nationally

  

  Peter Salinas

  Online automotive classifieds has to be one of the noisiest marketplaces in the world with 100,000 dealers vying for the attention of 45 million consumers who purchase a vehicle each year.

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• - 2 ratings

  Leadership: How to Earn Trust

  

  Dave Anderson

  An entire organization suffers when even a single leader isn’t trustworthy, and it’s not a one-time penalty; its misery on the installment plan. For starters:

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• - 1 rating

  Recovery Veteran Talks Compliance

  

  Peter Salinas

  The most frequent consumer complaints regarding vehicle repossessions made to the Consumer Financial Protection Bureau and other state and federal law enforcement agencies involve personal property left in or on the vehicle.

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• - 1 rating

  CFPB Bulletin: Anticipate Regulation of Add-On Products

  

  Christopher J. Willis

  By Christopher Willis and

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  CFPB Puts Companies on Collections, Repo Notice

  

  Eric Johnson

  Just when you thought you might be able to come up for air from the deluge of federal regulations and requirements, the hits just keep on coming from the Consumer Financial Protection Bureau (CFPB).

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• - 4 ratings

  Collect the Cash; Avoid Collecting the Car

  

  Candace Bennett

  I am not a buy here-pay here dealer and it’s all Gene Koury’s fault! Mr. Koury is a star performer in the BHPH world in our town, and I wisely chose not to compete against such a star performer.

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• - 3 ratings

  Repos and Reality: They Will Occur and Here’s Why

  

  Chuck Bonanno

  Many in the media and even in our own industry believe, we buy here-pay here dealers, charge high prices with hefty finance charges because we want to encourage loan defaults (aka repossessions). Nothing, let me repeat that, nothing, could be further from the truth.

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• - 1 rating

  Top Five Collections Questions

  

  Steve Peterson

  In my travels around the country, I have been fortunate to train collection personnel for 200 or more buy here-pay here companies. During those visits, I’m usually asked the same questions over and over again. These are the top five questions I consistently hear.

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  Welcome to the Party! Compliance and Best Practices

  

  Alex Price

  Greetings from the great state of Alabama: ROLL TIDE!

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• - 3 ratings

  Contingency Repos: A Risk You Can No Longer Afford

  

  Millard Land

  There are key catch words in any industry that are used in a negative connotation. In the buy here-pay here industry one such phrase would be “Curb Stoning.” The thought or mention of this practice causes a sick stomach experience to any auto sales professional. After all you — the BHPH professional — are required to conform to hundreds of rules, regulations, license requirements and reams of paperwork including monthly reports to state, city, and now federal watch dog organizations.

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  Inventory Management: It’s More Important than Ever

  

  Dave Wiggins

  A great deal of time is spent with regard to the importance of inventory management of new vehicle inventory at new vehicle dealerships, however, it is probably more important for used vehicles departments, dealers and buy here-pay here dealers.

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  Who Does Your Repos? Yes, It Does Matter!

  

  Les McCook

  With the Consumer Financial Protection Bureau (CFPB) now involved in the non-bank area of the auto lending business, it is more important than ever to choose your recovery agent wisely. The CFPB has joined with states to promote their services to consumers, actively soliciting consumers for complaints about their auto lender. The fact is, the buy here-pay here (BHPH) business has been slow to adopt the business practice of utilizing trained and certified professionals for their recovery needs.

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• - 1 rating

  Rabbit Disaster Recovery Plans

  

  Thomas Hudson

  I couldn’t make this stuff up if I tried.

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