CARMEL, Ind. — J.D. Byrider watched the fourth quarter become
the largest growth period in the history of the buy-here, pay-here dealership
chain.

To generate $142.6 million in sales from October through
December, the company turned a record number of vehicles during the fourth
quarter, moving 12,054 units to bring the year-end total to 50,634.

By the close of 2012, J.D. Byrider opened six new franchised
locations in six states, relocated one franchised and acquired three franchised
dealerships. In addition, five franchisees — one new-car dealer, two
executive-level managers and two finance professionals — signed on to open new
J.D. Byrider stores starting this year.

All told, J.D. Byrider had opened 14 new stores for a
year-end total of 123 franchised-owned and 23 company-owned stores in 29
states.

"Last year was successful for a number of reasons," J.D.
Byrider chief executive officer Steve Wedding told SubPrime Auto Finance News
in an email message today.

"First, we have the right franchisees and the right store
managers in place. As individuals and as a collectively strong group, we have
worked as a team to develop the nation's largest used-car and finance franchise
organization," Wedding continued. "Our franchisees and store operators
regularly share with each other their best practices and successful methods to uphold
our core business model – selling good cars to people who need credit. To do
that, we're choosing our customers wisely; we won't sell a car to a customer
who can't afford it."

Before signing any contract with a customer, Wedding
explained J.D. Byrider's proprietary DISCOVER Software System's Automated Risk
Evaluator enables BHPH stores in its footprint to determine if the customer can
afford the deal.

"Most importantly, throughout our 24 years in business,
we've kept an eye on sales satisfaction and service satisfaction ratings and
our customers, whom we regularly survey each day, have given us high marks. We
couldn't get those results unless we treated our customers right," said
Wedding, who added that J.D. Byrider attained a three-month cumulative 95.3
percent sales satisfaction and 91.3 percent service satisfaction rating across its
dealership network.

Furthermore, not only are customers satisfied, they're
keeping up with payments, a factor that pushed J.D. Byrider's charge-off rate —
loans that are deemed uncollectible and written off — to the match of an all-time
low.

Wedding reiterated the importance of J.D. Byrider's DISCOVER
Software System that's employed in every store as a primary reason for the
charge-off rate achievement.

"It provides management controls and reports to oversee the
quality and integrity of the business at all times," Wedding said. "By
providing affordable financing, we can enable our customers to advance in life.
Matching our lowest charge-off rate is proof that we actually are providing the
right kinds of cars to the customers who need them."

And those "right kind of cars" are vehicles that can
function for the length of the financing contract and beyond so customers can come
back to J.D. Byrider with some equity for another purchase.

"We look for cars that will pass our rigorous, comprehensive
inspection, and we invest an average of $1,650 into each one to make sure it
meets our standards," Wedding said. "We have many skilled individuals and
advisors that know a perfect match when they see one."

Coming off such a successful close to 2012, Wedding is quite
upbeat about what 2013 holds for J.D. Byrider.

"I'm very optimistic about 2013," Wedding said. "We're
looking forward to another record-setting year for dealership openings – whether
by established J.D. Byrider franchisees or new franchisees who recognize a
great opportunity to control their future."


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Nick Zulovich can be reached at nzulovich@subprimenews.com. Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.