Non-Prime Times
NATIONAL AUTOMOTIVE FINANCE ASSOCIATION • 7250 Parkway Drive, Suite 510• Hanover, MD 21076 800/463-8955 • FAX 410-712-4038 • E-MAIL JTracey@nafassociation.com
Spring, 2006
10TH ANNUAL NON-PRIME AUTO FINANCING CONFERENCE
T h e National Automotive Finance Association's 10th Annual Non-Prime Auto Financing Conference will be held June 12 to 14, 2006 at the Renaissance Worthington Hotel Fort Worth The 10th annual conference continues the tradition of presenting sessions of experts who will address issues affecting both dealers and creditors on topics including: lead generation, automotive finance market in Canada, The Hispanic market, Investment banking, rating agency perspectives, safeguarding information and marketing and auction statistics. The NAF Association's legal committee will provide updates of legal issues affecting the non-prime auto market and, as they did last year, will spend one entire session answering questions from those in attendance. BenchMark Consulting International will provide a preview of the Association's Annual Non-Prime Auto Financing Survey. Exhibits of the latest products and services designed especially for the non-prime auto industry, a golf tournament the morning of June 12th and an off-site event presented by State National Companies round out the conference activities. Follow the conference link at www.nafassociation.com for program updates, information on sponsorships and exhibits and for on-line registration for the conference, the golf scramble and to reserve hotel rooms. Make your plans by May 19th for the special conference hotel room rate. Major sponsors are: DealerTrack, Grand Corporate Sponsor; ACS, AppOne, Inc., PassTime and Regional Acceptance Corp., Corporate Sponsors; and ARGO Data Resources Corp. and Bankers Integration Group, Inc., Golf Sponsors.
LEGAL BRIEFS
Steve Levine Ten years ago I made one of my best career decisions when I decided to get involved with the start-up Steve Levine NAF Association. Our early meetings were dedicated to identifying the serious issues affecting our industry, formulating a strategy to bring about stability to a tumultuous environment and become a unified voice for the non-prime segment of the auto finance community. It’s hard to believe that nearly a decade has passed and that this June our association will be sponsoring our 10th Annual Conference. One of our early mottos was “the Association that works,” which symbolized the fact that membership was more than joining a group and having an excuse to attend a boondoggle away from the office. Over the years we’ve tackled many serious issues, such as developing uniform industry metrics, bringing dealers and finance companies together and serving as an informational resource to the Federal Trade Commission. Our conferences have the reputation of being packed with knowledgeable speakers and industry experts. We tend to discourage presentations that are nothing more than “info-mercials” for a particular product or service, and take audience feedback very seriously. Our June Conference, which will take place in Fort Worth Texas from June 12 to 14, promises to be both a celebration of what we’ve accomplished and an ambitious look at where we are and where we’re headed. As Chair of our Legal Committee, I’ve been working with our members to develop a meaningful presentation that will give you tools to impact your business. We plan CONTINUED ON PAGE 3.
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LETTER
I hope this finds everyone well and prosperous after a successful National Automobile Dealers Association convention in Orlando. Our association conPaul Snider tinues to develop solid programs that enhance the overall benefits of being an NAF Association member. The Education Committee strives to develop workshops that will appeal to all members. We concluded 2005 with another successful workshop and are only weeks away from our first one this year, the day before Rick Sly’s World of Special Finance Magazine Conference
FROM THE
PRESIDENT
In closing I encourage everyone to not only attend our workshop March 28 in San Antonio and annual conference in Fort Worth but also to invite non-members in hopes they will see both the benefit of NAF Association and leave more educated about the non-prime finance industry. I am personally proud to be part of an association that accomplishes so much, and I thank everyone for your support of our programs and encourage others to become part of an association that strives year after year to make a difference in an ever changing business! Paul Snider is CEO, CIQ, Inc./VOISYS and president NAF Association.
& Expo begins. Membership continues to grow thanks to the hard work of our members who consistently encourage industry leaders to join NAF Association. We expect Benchmark Consulting International to produce another excellent survey this year and our 10th annual conference will be the best ever, thanks to the dedication of Jack and Mary Ellen Tracey, plus the many members and officers who have helped secure top quality speakers. I want to offer a personal thanks to the finance companies who so generously donated money, flyers and support to increase attendance at the conference in June plus the many vendors who will exhibit.
NEW MEMBER: CHERNEK CONSULTING, INC.
Adages abound regarding how to succeed in life. Perhaps one of the most often quoted is that anything is achievable, if we put our minds to it. Donald Trump certainly believes this is true. He has said that if we’re going to think anything, we might as well think big. Sam Walton, the founder of Wal-Mart, once said that high expectations are the key to everything, and Jon Bon Jovi has said that success is falling nine times and getting up ten. Throughout our school years, any number of teachers espoused the same message: no matter how large or small the challenge, we must tackle it with the firm conviction that we can and will conquer it. Some of us have never taken the implications of this principle to heart. Others of us have and are now reaping the rewards. Becky Chernek is one of the latter. Now, she is teaching others in the automotive industry how to achieve their goals, too, because her methods work. In 1985, Becky began her automotive career selling Mercury cars for a Baltimore dealer, Al Packer. A year later, she took a position at a Ford dealership selling light trucks and both new and used cars and, within a year, she was promoted to finance and insurance. Becky’s philosophy was simple. She would not take NO for an answer! Her goal was to earn a successful career in automotive retail sales, despite being a woman in a once all-male industry. Keeping her eye on that objective, she gave her best to whatever task was handed to her in positions as finance closer, director of finance and general sales manager. In 1995, she was hired by Jim Moran & Associates and soon afterward was promoted to the AutoNation division as a district manager. It was in this last position that Becky put her personal business philosophy to work. She practiced full disclosure menu principles and, when others noticed her amazing success, she was urged to train management on this unique concept and also on how to utilize closes to overcome objections. Full disclosure selling was not a proven technique, until it was kicked off in the AutoNation stores. Menu selling worked for her and she fully believed it would work for others. The system was simple. It allowed dealership personnel to present 100% of their products to every customer 100% of the time . . . and within a matter of minutes. It engaged customers in the presentation, and rather than becoming increasingly resistive to a once forceful pitching of products, they ended up buying products . . . lots of products! Becky decided this sales method was worthy of being shared with others in the automotive industry. In 2001, she founded Chernek Consulting, Inc.—dubbed FYIFI, Inc.—and currently offers two training workshops to dealerships throughout the nation and Canada: Closing Tools & Mastering Menu Sales and Basic F&I. Her company practices the principles of integrity, team work, and trust, and supports a full disclosure selling philosophy and superior work ethic. Both of her training workshops, for sales and finance managers from any size dealership, emphasize proven closing techniques that effectively earn the sale and maintain customer loyal-
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Non-Prime Times, Spring, 2006
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EXECUTIVE DIRECTOR’S
When we get together in June in Fort Worth, we will be marking 10 years of presenting a conference that focuses specifically on nonJack Tracey, CAE prime auto financing. In those years, our conference has grown, not only in attendance, but also in stature within the industry. Each year finance company representatives and auto dealers come together from across the United States and Canada to learn from experts. Topics and speakers are selected by NAF Association members, people who work in the industry. Timely issues, such as Hispanic marketing, internet lead generation and identity theft, are on the conference agenda and, as always, there will be time for questions. Industry updates and trends, now including the growing Canadian market, will be present-
MESSAGE
We ask all of you to spread the word among your dealer colleagues that this conference is an excellent opportunity for them to learn about the burgeoning nonprime market and to make beneficial contacts. We are always grateful for the support of our sponsors and exhibitors in making the conference possible. Plan to spend June 12 to 14 in Fort Worth. Register today at www.nafassociation.com.
ed. A panel of members of the NAF Association Legal Committee will update attendees on legislative and regulatory matters and will host a second session for questions from the floor. In addition to the sessions, you will find exhibits of the latest in industry-specific products and services and ample time at meals and breaks to form valuable contacts. The NAF Association golf scramble is open to all who attend as is a special event at a local comedy club.
NAF Association’s
10th Annual Non-Prime Automotive Conference
June 12-14, 2006 Renaissance Worthington Hotel Fort Worth
LEGAL BRIEFS...FROM PAGE 1 to take a deep dive into the practical implications of the new bankruptcy laws, examine the laws around prescreening and pre-qualified offers and run through the latest legal developments at both the federal and state levels. Back by popular demand, we will once again follow our formal presentation with an hour-long question and answer session that will be completely audience-driven. As we said last year, that’s about $2,500/hr in legal advice for the cost of admission, not to mention the other terrific panels and speakers, vendors and receptions that Jack Tracey and the Association are planning. As we Texas folk like to say, “Everything’s bigger in Texas!” I look forward to seeing y’all in Fort Worth. Steve Levine, National Counsel for Regional Acceptance Corp., is Chair of NAF Association’s Legal Committee.
Attend the 10th Annual Non-Prime Automotive Conference and Hear Speakers Like These...
Amy Martin Director, Structured Finance Ratings Group, Standard & Poor’s Rating agency’s perspectives on non-prime auto financing.
Tom Webb Chief Economist Manheim Auction statistics and what they mean for the health of the industry.
Patty Covington Partner Hudson Cook, LLP Safeguarding information: the why and how.
www.nafassociation.com
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Non-Prime Times, Spring, 2006
NEW MEMBER..FROM PAGE 2.
ty. Managers who have taken the workshops issue glowing accolades after putting Becky’s methods to work. They learned very quickly that unethical finance techniques are not necessary to maximize performance. Becky designed her workshops to teach both finance and sales managers the concept of full disclosure selling without killing profits: compliance doesn’t begin in finance; it begins the very minute customers come onto the lot. Menu selling is a sales process that must be adopted by all retail sales personnel, in order to maximize benefits. Becky shows finance managers how to put all their cards on the table and to quit shooting from the hip. She demonstrates in fun-filled and memorable sessions how to put the principle "KNOWLEDGE IS POWER" to work. She teaches managers how to effectively gather information, how to build a case that will get any transaction quickly approved, and how to qualify a sale to overcome objections. Her goal is to bury the outdated box close mentality, because customers have grown weary of the games dealerships play, and to prove that untold profits can be made with a strictly professional and ethical business perspective. Tom Hudson, a well-known and respected attorney from Hudson & Cook, avers that if finance managers are concealing, hiding, and packing, they are likely doing something wrong, and Becky has Tom on board to share his expertise in compliance issues. The menu selling presentation method CCI teaches is quick and involves no pitch-
ing of products. Finance managers simply review each product and explain features and benefits in a way that engages customers in the discussion. When the presentation is complete, they ask for the sale. If customers say NO . . . CCI teaches that this is when the sale begins! CCI trains managers on sure-fire techniques to overcome objections, including how to utilize visuals that are time-tested, quick, and effective. After persistent urging from satisfied workshop attendees, Becky Chernek is ready to introduce her new Basic F&I workshop in April. Specifically designed to shorten the learning curve for recently hired managers, the workshop will not only teach managers how to reduce errors and earn faster profits, but also how to efficiently deal with the nitty-gritty administration of the office. Funding, product knowledge, leasing, financing, reading a credit report, presentation skills and overcoming objections will cease to be obstacles standing in the way of success, when Becky’s methods are utilized. The workshop is a two-day boot camp with lots of homework. Becky urges attendees to be prepared for hard work . . . and to expect incalculable insight in how to effectively run a finance department that brings in steadily increasing profits. Becky believes that anything is possible, if managers think BIG and acquire the proper know-how in how to make their dreams become reality. She will provide the knowhow, if managers come to her workshop armed with big dreams!
NEW MEMBERS
The NAF Association welcomes new members: AIF/VRP www.vrpcoverage.com Assurant Solutions www.assurant.com Auto Supreme, Inc. www.paylesscarsales.com Autofusion, Inc. www.autofusion.com Chernek Consulting www.chernekconsulting.com Contact 911, Inc. www.contact911.com Detroit Trading Company www.detroittrading.com Fiserv Lending Solutions www.fiservls.com InfoIMAGE, Inc. www.infoimageinc.com Locator Technologies, LLC www.locatortechnologies.com R & R Sales, Inc. www.yeswecanauto.com ReMark Capital Group, LLC 504-799-3520 Vantage ILM www.vantageilm.com VT Inc./Auto Investment Group, Inc. www.vanenterprises.com
REGISTER TODAY! NON-PRIME AUTO FINANCING CONFERENCE JUNE 12-14 IN FORT WORTH WWW.NAFASSOCIATION.COM
Non-Prime Times, Spring, 2006
MAIL: 7250 Parkway Drive, Suite 510 Hanover, MD 21076 PHONE: 800/463-8955 FAX: 410-712-4038 E-MAIL: JTracey@nafassociation.com WEBSITE: www.nafassociation.com If you would like to contribute a newsletter article, contact us for details.
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