BHPH Dealers Gather to Learn at NABD East Coast Conference
ATLANTA — General recommendations about what dealers should
do when a buyer files for bankruptcy, how successful stores keep quality
employees and operators who are starting their tax season before Halloween
comprised the opening day of content at the NABD East Coast Conference.
As dealers and potential investors from as far away as
Colorado and California converged on the Georgia International Convention
Center, the founder of the National Alliance of Buy-Here, Pay-Here
Dealers urged questions and networking to flow.
"We encourage you to maximize your participation by
networking, asking questions and developing an action plan before you leave,"
Ken Shilson said.
Bankruptcy attorney Dennis LeVine told attendees that depending
on state law, dealers might have to return a vehicle they've repossessed if the
buyer has made a Chapter 7 or Chapter 13. But LeVine said dealers should keep
tabs on the specifics of the law in the state they operate, especially when it
comes to the timetables for these legal proceedings.
"Deadlines," LeVine said before pausing for emphasis. "When
you walk away from this presentation, remember this, if you miss it, you're
dead. That's why it's called a deadline. There are lots of deadlines in
bankruptcy, and you have to know what they are."
The Q&A session that included LeVine also included Tom Hudson
and Patty Covington, two partners from Hudson Cook, taking queries from
attendees. The discussion turned to compliance penalties handed out by federal
regulators, a subject the attorney's plan to cover in more detail during a
special session dedicated to the topic on Tuesday.
"The Consumer Financial Protection Bureau and the Federal
Trade Commission have both been very, very active over the course of the last
12 months or so," Hudson said. "What I think I'm seeing is a little bit of a
head-to-head battle between those two agencies for the reputation of being the
toughest cop in Washington. The FTC has done more in the last year than it had
in the last 10 years in terms of dealer enforcement actions and that type of
thing."
In another session on Sunday, successful BHPH dealers Ingram
Walters and Fran Cavanaugh explained where to find the best people and how to
train and develop them.
Walters and Cavanaugh also shared new insights on
structuring pay plans which attract and retain the employees who help you
achieve BHPH store goals.
"Your people are your biggest asset," Walters said.
Yet another Sunday session reiterated how tax refund
customers are vital to BHPH sales. Executives from Tax Refund Services, better
known in the industry as Tax Max, described how their process of determining
what a potential buyer's federal income tax refund for a potential down payment can be a way to extend the
prime sales season beyond the peak weeks in February and March.
For example, J.D. Byrider's Jason Shelton indicated there are stores within the BHPH chain in Ohio with 70 of these deals already on the books. Shelton said there are other J.D. Byrider dealerships in Texas with as many as 80 already with the hope of having 15,000 before the apex of tax season arrives.
"Those customers have that money mentally spent earlier and
earlier. If you can get them before Santa Claus becomes a reality, you have a
better chance. Tax money doesn't save a bad deal. It makes a good deal better,"
Shelton said.
The conference continues today with a full slate of panel discussions
and networking opportunities. Some of the highlights include:
—Payment Device Technology, Now and in the Future: A panel
of experts explains how to utilize disabling and GPS technology more
successfully and what changes dealers can expect in the future.
"These devices are helping collectors maximize cash flow and
increase recoveries," Shilson said. "You need to understand what lies ahead. Do
you invest today or wait for new technology? Which devices are best for your
dealership? Experts will give the answers during this session."
—Capital Contract Purchasers: Shilson insisted the market
for BHPH contracts has never been better.
"Capital is the gas which powers the BHPH engine and selling
contracts is an important capital market alternative," Shilson said. "What
price can you expect to get for your paper, and who are the best buyers? A panel
of contract purchasers will ‘show you the money.'"
—Inventory Acquisition & Reconditioning Panel: Shilson
stressed that finding the best inventory at competitive prices continues to be
one of the biggest challenges in the BHPH space.
"The old ways are not working like they used to," Shilson
said. "In this session a panel of experts will explain all the newest
technology to find the best vehicles, and successful operators will explain how
they implement it."
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