New Year - Same Old Insanity

Insanity Defined

While there are certainly many things beyond our control in today’s economy, sitting around and waiting might not be the best way to deal with it. But first, you have to admit that doing things the same way, just isn’t an option any longer. Yet, in dealership after dealership, that seems to be the rule.

Now, if that’s the choice, I’m okay with it. After all, it’s your store. But, logically, it seems to me that you really can’t complain about the market when solutions or potential answers show up at your doorstep every day and you choose to ignore them. Like I said, you can choose when and who you want to do business with. But choosing to do nothing makes the results of the month totally your fault.

It’s an old expression but the definition of insanity is still doing the same thing over and over and expecting different results. If you want the same results, fantastic. Change nothing. But, if you’re looking to get something better going, you’re going to have to make some changes.

As most of you know, I’ve written for many of the auto industry publications over the years. And, I operate a general agency supplying products and services for dealers to sell. One of those services allows dealers (Franchise, Independent, and Power Sport) to add lenders to their operation. That service charges a small monthly fee. But, only if you want lenders to help you deliver more cars.

In nearly 100% of the dealers I’ve talked to, and those my agents are working with, they all wanted to add lenders to help them sell cars. Yet, common sense will tell you that not all of them will sign up with the program. A few really don’t have the right inventory. Some may not qualify. But the number one reason we hear for not signing up just blew me away. The reason most often given – “I never pay for lenders.”

Never is a long time. When I left the retail part of the business, used car financing was virtually non-existent. What if dealers said never? When I started in the business back in the late 70’s, every dealer signed recourse on financing. What if dealers said never? When I was in F&I we never paid for lenders either. But we also didn’t have sub prime lenders. We didn’t have to deal with lenders pulling out of indirect lending.

And, even though an entire year of a service like this costs less than the profits from one delivery, just because dealers had never done anything like this before, means they should ignore it. As with any aspect of a business, there is more to each decision than just cost. There has to be something you get out of it. A return on investment.

Things change. If you want to compete, change is inevitable. Growth is optional. Before you tell someone that you’ve never done something before, take a moment. Maybe you shouldn’t change at all. But, maybe this is exactly the change you need to get through these troubling times and maybe even prosper.

John Fuhrman and his agency have been working with dealers to increase profits as well as reduce liabilities through compliance and Red Flag issues. In addition to world class products, his agency offers lenders to dealers who want to add to their deliveries at a reasonable cost. For information on his products and services, email jfuhrman@dealerprofitsnow.com.