Howdy Dealers...this is one of those meetings all dealers should have attended, for you don't know what you don't know, until you have to pay the price for not knowing!
That evening we had two special presenters, Special Guest Ken Shilson of NABD and our own Greg Zak, Dixon Motors! The format was that each presenter would ask a question of the other that is relative to what is actually going on in the BHPH Industry today! Neither Ken or Greg held back with their answers, what we got was straight forward questions and answers that are impacting the industry today! You just don't get this kind of information unless you attend a HIADA meeting, or as ken said, "you can fly to Las Vegas for the NABD Conference in May."
I attempted to write down all of the questions and answers so that I might be able to help some of the dealers who could not be there. also intended to have a check list for the dealers who were in attendance.
If there is a "K" before the quote then Ken made the statement or answered the question, same for Greg, we will use a "G".
K-Point of sale market is slowing!
G-Dixon Motors is using Tax Max to their benefit. Helps them get a jump on the Tax Season!
K&G- both feel that within 48 hours of getting their IRS money it is spent!
K&G- Dealers must do front end underwriting! Because of the changes in our customers this is more important than ever! The Dealer can no longer keep on doing the same old thing! The quality of customers is going down! 40% of our former customers have gone to Sub Prime Dealers.
K&G- A Dealer must redevelop his business plan to meet the needs of the marketplace! The plan must meet today’s needs! The dealer must change the business model until he finds ne that will work in today’s business environment!
Must change the business model until you see results!
The dealer must have a three year Business Proforma.
You must review Static Pool of sales results. Tax time notes tend to be the worst performing notes a Dealer takes on.
G-gave indications on how customers are giving Dealers incorrect and or phony information. Examples are 1. Fraudulent Payroll Checks, 2. Misrepresenting the number of miles the vehicle will be driven and who will actually be driving the vehicle! Underwriting correctly is more important than ever!
K&G-Loan Loss reserves are important to your ability as a dealer to be able to maintain the Dealers line of credit! ****This is a Deal Breaker, if you don't understand this, you need to get
Recap of HIADA's Meeting with Ken Shilson