BHPH Solutions www.dealers411.net

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BHPH Solutions www.dealers411.net

Discuss solutions for dealers getting into BHPH or thinking about it.

Website: http://www.dealers411.net
Location: Crystal Lake, ILL
Members: 126
Latest Activity: Jul 30

Discussion Forum

Using SMS Text Messages for Collections

Started by Dominic McWhorter Aug 23, 2012. 0 Replies

Best practices: collections

Started by Rob Hagen. Last reply by Frank Dec 8, 2011. 7 Replies

How many collectors should we have per # of customers?

Started by Mike "BK" Anthony. Last reply by Brad Sutterfield Apr 29, 2011. 4 Replies

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Comment by Jerry Adcock on October 24, 2009 at 12:30pm
i need to get information on finding ways to report credit to the bureaus on our BHPH Customers Please help! looking for all of the best plans available.
Thanks Jerry
Comment by Dugan Anderson on August 12, 2009 at 12:42pm
C4C

For weeks I have been contemplating the “Cash for Clunkers” program, and wish I would have posted some of my thoughts, as many have now come true. Here are a few of those thoughts.

My greatest concern has been the “Cash Flow” of the program. Many dealers are struggling with their current cash positions and if this program does not pay in a timely manner, cash positions will only get worse. I have heard of but a few dealers being paid, but I understand that the money should start flowing soon. Let’s hope it does, because if a dealership does well with the program, but does not get paid promptly, it could spell disaster.

Another problem of course is getting these folks financed. In many cases there is a reason why these people are driving these cars, THAT’S ALL THEY CAN AFFORD, or they don’t have the credit to qualify for any type of financing. These people have had sources in the past (Sub Prime), but many of those have dried up and it could be some time before that market rebounds to its previous levels (if it ever will).

One item I hadn’t thought about, but have heard about it since is the CSI issue. The C4C system is not CSI friendly, and as a result, CSI will undoubtedly suffer, regardless of how the deal(s) go down. I see little or no remedy for this problem.

Speaking of the Cash for Clunkers program (application, qualification, approval etc.), the program itself is rather cumbersome. Many dealers have complained about not being able to get signed up, the inability to determine unit eligibility and qualifying customers. Most of us in this industry are familiar with many paged, complicated incentive programs, but this may be the champion.

The bottom line however is this; any program that helps this industry “SELL UNITS” is certainly a welcome relief. We need to take enjoy this while we can. But has anyone considered what happens AFTER the program this program is over?

Rebates, 0 % Financing and the other numerous program we’re all familiar with always come to an end, and when that happened, the bulging showrooms and busy lots empty out. Additionally, certain model inventories are depleted, the used market is spinning, sales staffs are worked to the point of exhaustion and NO ONE knows what the next round will bring.

One thing is for sure, IT WILL END, and when that happens everyone will be transported back to “business the way is was before”, whatever that might be. A couple words of caution.

Be careful in replenishing your new inventories. This artificial sales boom may not continue, and if it doesn’t, you don’t want to be stuck with TOO much inventory based on artificially inflated sales. (The factories may not have the same thoughts here)

Be aware of the Used Vehicle Market and its swings. The used market was already in a volatile state, and this program will only add to the volatility. When you take that many units out of circulation, it HAS to have an effect.

MOST IMPORTANTLY, do not forget what your dealerships SHOULD be doing in more “NORMAL” times. Your sales staff has been “retrained” and your processes have been modified by the C4C program. The BAD HABITS your staff has LEARNED during C4C will be ineffective for future sales, once the program ceases. Be ready, start retraining NOW, incorporate your previous sales steps and processes into the current program so your transformation back to reality will be less severe. Make sure your dealership is properly re-structured to succeed, but DO IT NOW, as this will dictate ALL your future successes.
Comment by Gene Daughtry @ Dealers411.net on March 30, 2009 at 11:39am
Any store that dosen't have a turn policy is missing business. How many times have you seen the manager go on a turn and say the exact same thing to a customer the salesman did and the customer agree and hook up?
Comment by Dugan Anderson on March 30, 2009 at 11:02am
Just wanted to pass this on:

At a recent dealership visit, the owner of the Inn where I stay pulled me aside and asked to share a story with me. I am ALWAYS pushing this establishment for her, for its GREAT food, atmosphere and staff. I assumed that was what the story was about and here it is:

A salesperson at my client’s dealership (RV Dealership) was trying to strengthen the relationship between his customer and himself, and offered to take them to lunch. Having heard so much about the Inn where I stay, he decided to take them there.

He and his customers went in, were immediately seated, the waitress took their drink orders and gave them menus to look over. After a few minutes the customers informed the salesperson there was NOTHING on the menu that excited them and wanted to leave. When the waitress came back, the salesperson politely asked for the check. Shocked, the waitress asked if there was a problem and was told the menu was not to their liking (the customers liking), that they had their minds set on a steak and none were offered.

Flustered, the waitress went to get the check, but stopped by to chat with the owner, first, to tell her what was going on. The owner went promptly went in to the kitchen, asked the chef if the grill was hot enough to cook steaks and was informed it was. She then grabbed a couple of dinner menus and presented them to the salesperson and his customers. They selected their steaks, had a nice lunch and then went on their way. By getting someone else involved, they turned a $10 beverage sale into a $120.00 meal ticket. Shouldn’t we ALWAYS get someone else INVOLVED?

Is it POSSIBLE that this, or something like this is happening at your dealership? My point(s) are these;

NO one single individual in a dealership is QUALIFIED to let a customer GO, without a SECOND OPINION.

TWO HEADS are better than ONE.

EVERY customer needs to talk to a manager, BEFORE they leave the dealership, NO EXCEPTIONS.

Or my new favorite, NO ONE LEAVES UNTIL THEY’VE SEEN THE DINNER MENU!
Comment by Gene Daughtry @ Dealers411.net on March 26, 2009 at 8:50am
My experience has been customers being told by other BHPH dealers they cannot get another car while they have ours. The customer will drop our car off or call us to come get it. Reporting does keep the retail stores from selling them without trading. I have had a few customers good enough to buy a second vehicle then start having trouble paying us until we take ours back.
Comment by Tina Faucette on March 26, 2009 at 7:54am
We report to equifax. Wow Tom, I can't believe they would tell dealers to come get their cars. I would think if they take a trade without a title they would have to check to see if there is a lieno n it. I have threatened to pick up my own cars. It usually stops the feet dragging with paying off the trade in a matter of hours. Can they really not pay off the car and tell the dealer to come get it. I think the big dealers try to bully us little guys
Comment by Tom Herald on March 25, 2009 at 7:17pm
We also report to TU and Equifax. It does make a difference, more as a selling point than anything. Lately, it has helped us with getting payoffs as customers trade their cars into another dealer. We've seen many BHPH dealers get stiffed on the payoff and the dealers just call and say "come pick up your car..."
Comment by Gene Daughtry @ Dealers411.net on March 22, 2009 at 7:12pm
We report every month to Trans Union. It's a selling feature at our dealership.
Comment by Brian Sigel on March 22, 2009 at 10:47am
Does any BHPH people report good/bad paying customers to the credit agencies???
Comment by Gene Daughtry @ Dealers411.net on March 14, 2009 at 5:47pm
If my 19 years of experience can help you call me at 479-967-3192.
 

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