Archive for March, 2009
Indiana Auto Dealer Listed As Oldest in USA
March 30th, 2009 | 
Author: During the recent months of the current economic crisis, many car dealers have had to close their doors. One dealership that has weathered this and several other difficult financial markets is also the country’s longest-lived family-owned vehicle retailer, W. Hare & Son. From the age of Conestoga wagons to the present and hybrid cars, this Indiana-based dealership has survived more than one and a half centuries of the ups and downs of continuous operation.
The saga began in 1847 when Wesley Hare started building wagons, carriages and buggies out of his log cabin in Noblesville, Indiana. His primary market was the steady stream of Americans heading west to California to pan for gold. All his vehicles came with a one-year warranty on his axles, wheels, and springs.
Hare’s business was booming. Within a short time, he added 45 employees and accumulated a small fortune.
Shortly after the Civil War ended in 1865, Hare’s son E.M. took over the business, and the company officially became W. Hare & Son. Operations moved into a four-story building complete with an elevator, a rare commodity for the time. Eventually the business churned out about 700 buggies annually.
Near the turn of the century, however, E.M. realized that the “horseless carriage” might have a future. Against the advice of his employees, Hare signed contracts with Hupmobile, Studebaker and Cadillac to sell a few of these motorized buggies. By 1912, these automobiles comprised most of his business.
Eventually six generations of Hares would manage the dealership. Each manager had his or her own unique challenges of business. For example, during the Great Depression, the dealer had to rely on its towing service to plump up the bottom line. When manufacturers ceased all automobile production during World War II, Hare had no cars to sell for three and a half years. Lube jobs and tune-ups filled in the gap.
Today, visitors to the Hare showroom can view a bit of the company’s history. The walls display a 90-foot long mural depicting the journey. Plus, the showroom also houses two Hare buggies built in the 1870’s.
The current managers, Courtney Cole and Monica Peck, who are the great-great-great granddaughters of Wesley Hare, have to keep up with current marketing trends. Currently Hare offers 50 service stalls, a photo booth for online ads, and about 1000 new Chevrolets in its sales lot. They sell about 300 cars per month and employ 150 people.
Whatever the future may hold, their place in history is secure. They head a list compiled by the National Automobile Dealers of U.S. dealers who have been in continuous business for 100 years or more. The list’s top ten include:
1847, W. Hare & Son, Inc., Noblesville, Indiana
1852, Schaefer & Bierlein, Inc., Frankenmuth, Michigan
1859, Reynolds’ Garage & Marine, Inc., Lyme, Connecticut
1875, Kemmann Chevrolet, Inc., Lowden, Iowa
1875, Normandin Chrysler/Jeep, San Jose, California
1885, Moser Motor Sales, Inc., Berne, Indiana
1895, Ferman Motor Car Co., Inc., Tampa, Florida
1897, Hill International Trucks, LLC, East Liverpool, Ohio
1898, Eich Motor Co., St. Cloud, Minnesota
1900, Diehl Ford, Inc., Bellingham, Washington
Terri Horvath is a freelance writer and editor and enjoys studying automotive history and traveling the country’s back roads. She is the co-author of Indiana Cars: A history of the automobile in Indiana. More information is available at http://www.cruise-in.com
Article Source: http://EzineArticles.com/?expert=Terri_Horvat
Edmunds.com Report: Consumers Turning to Used Cars in Wake of Downturn
SANTA MONICA, California — Edmunds.com is predicting that March car sales will continue to slide, while consumers turn to the used-vehicle market in response.
Edmunds.com says March new-vehicle sales are expected to be 774,000 units, a 42.7 percent decline from March 2008 and a 12.7 percent increase from February 2009.
“This dire report clouds the more encouraging news that underlying demand for new cars continues to climb from October lows,” said Edmunds.com CEO Jeremy Anwyl. “The conundrum for automakers is that currently almost a quarter of the demand is being met with the sale of a used vehicle.”
Edmunds.com says that more than 20 percent of car shoppers who researched new vehicles actually bought a used vehicle. That trend was expected to accelerate in March.
Inside Line says: The auto industry has yet to come out of its swoon, but used-car salespeople are smiling. — Anita Lienert, Correspondent
What is Floor Planning or Floor Plan Financing?
What is Floor Planning? aka Floor Plan Financing
Short-Term Financing Generally speaking, floor planning is a term used for financing inventory in retail operations. Regarding vehicle dealerships, floor planning is specifically involved in the short-term financing of inventory. Lenders typically provide funding for an amount of time (usually 30-90 days) for each vehicle on the dealer’s premises. The vehicle title acts as the primary collateral and the most common practice for floor plan lenders is to be in physical possession of the title until the loan is repaid. Typically, rates and fees applicable in this lending field are high because of transaction costs and collateral risk.
Industry There are a number of national companies that dominate the industry with relatively few lenders offering programs at a local/community level. While banks have engaged in this type of lending in the past, most internal procedures are unsuited for managing collateral on a per entity basis. These banks have traditionally opted for line-of-credit relationships with franchised dealers without the ability or software to track individual titles and collateral items, thus increasing risk. Furthermore, the propensities towards banking consolidation and other industry changes have further distanced banks from this local lending concept.
Local Opportunity We believe Dealers First Affiliates and its TirekickerTM software effectively demonstrates a viable means of entry into this market for great investment returns. Our business model offers a simple and fair way of doing business and encourages strong relationships with local businesses. Our computer software provides both lender and client with concise, pertinent information and can enable you to create a highly competitive profit center.
Posted in Dealership Financing, Floorplan Financing | 
Tags: floor plan financing, Floorplan Financing | 
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Dealers First Affiliates What we offer.
What We Offer
Consulting – Dealers First Affiliates provides start-up and on-going consulting for your operation. The company offers services to train your staff and develop a system of operation tailored to your specific objectives. Such services would include evaluating dealer client prospects and assisting with audits of your on-going operation.
Here are some areas where our support can be valuable:
- Dealer/customer qualification and evaluation
- Establishing relationships with the auto auctions
- Legal agreements with dealers
- Accounting systems, transaction documentation and entry posting guidelines
- Management of titles and checks
- Security safeguards and procedures
- Operational forms and procedures
- Risk management – inventory verifications
Software – TirekickerTM is a software program that has been developed by Dealers First Affiliates, Inc. based in Asheville, NC. This program is designed for vehicle inventory financing operations with the specific objectives of maximizing income and better lending via comprehensive risk management. In addition, the efficient dissemination of information to and from dealers allows lenders to manage their floor planning operations with minimum personnel.
Major aspects of the TirekickerTM program are promoting maximum income, managing business risk and facilitating better dealer inventory management.
TirekickerTM Software provides the following to implement your operations:
- Billing cycles – customizable per your requirements
- Fee and interest management – configurable by company or by dealer client
- Employee access restrictions and tracking activity
- Dealer information tracking
- Manage different investor’s interests – the program allows tracking of separate ownership if different fund sources are employed
- Transaction and information management with reconciliation features for error tracking
- Inventory audit management – cycle counts with exception notation and variance analysis
- Inventory aging management – highly configurable reporting to best suit the needs of each dealer
- Online access for dealers to the client-side version of the program
Potential Users – banks, private finance companies, auctions; existing or start-up operators
Posted in Dealership Financing, Floorplan Financing |
Tags: Dealers First, Dealers First Affiliates, floor plan financing |
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Who is Dealers First
Who is Dealers First?
Dealers First Financial, Inc.
Dealers First Financial was founded in 1998 to provide floor plan financing to independent car dealers in western North Carolina and upstate South Carolina. There was no software that could be purchased to manage the new company, so the company developed proprietary systems to manage its floor plan financing operation. Thus, the system is a culmination of 11 years of development and active use, having completed almost 40,000 vehicle transactions.
Several years ago, we came to the conclusion that there was still no adequate software available. Further enhancements to our system, enabled the software to be web-based and accessible to the floor planner and its individual dealers. This level of accessibility distinguishes this program apart from potential competition. This web interaction minimizes mundane tasks and allows the dealer/customer to access his account information as to best manage its inventory and its relationship with the floor plan company.
Dealers First Affiliates, Inc.
Dealers First Affiliates licenses a software product named Tirekicker ™ but more importantly provides training, education and consulting to floor plan financing operations.
Dealers First Affiliates was created in 2008 in order to make its software product, Tirekicker ™, and consulting services available to other lending institutions and Individual Investors. This entity currently services a profitable business providing a unique and valuable service in its community.
Posted in Dealership Financing, Floorplan Financing |
Tags: floor plan financing, Inventory Financing |
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Jaguar points dealers toward floorplan providers (Automotive News)
Diana Kurylko
Automotive News Europe
March 23, 2009 06:01 CET
MAHWAH, New Jersey — Jaguar and Land Rover executives say they are guiding dealers to alternative sources of floorplan financing, but those who are not approved by Chase Auto Finance ultimately are on their own.
Ford Motor Co., which sold Jaguar and Land Rover last June to Tata Motors for $2.3 billion (about €1.5 billion at the time of the sale), will stop inventory lending to the brands through Ford Motor Credit on June 1.
Since January, Chase has been providing retail financing for Jaguar and Land Rover dealers but is handling floorplan financing with dealers on an individual basis.
Sharon Corrigan, vice president of retail operations for Jaguar Land Rover NA LLC, said dealers must “come to terms with and find their sources” of inventory financing.
Jaguar and Land Rover have 174 franchises each. A company spokesman said that only 80 were relying on Ford Motor Credit for credit.
“Of those, 52 have not yet achieved a new source of finance, and they are all working with other sources, including Chase,” the spokesman said in an e-mail. “We know banks that are lending money, and we are providing [the names of] those banks to dealers.”
In interview last week, top Jaguar and Land Rover executives said “virtually all,” dealers will find inventory financing.
Their optimism isn’t shared by the National Automobile Dealers Association. Last month, NADA asked the government to consider loan guarantees for dealer inventory financing.
“Even creditworthy dealers are having trouble finding access to any floorplan financing, or the financing available to them is being offered on terms that are not competitive and not commensurate with the risk,” according to an NADA fact sheet.
NADA says the average floorplan loan is about $4.9 million.
Posted in Dealer News, Dealership Financing, Floorplan Financing, News |
Tags: floor plan financing, Floorplan Financing |
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In Credit drought, U.S. car dealers battle to survive. (Reuters)
By Nick Carey
LANSING, Mich., March 22 (Reuters) – Deep in the last stronghold of the struggling U.S. auto industry, Rosario Criscuolo says he owes the survival of his business to Toyota Motor Corp (7203.T).
“If it weren’t for Toyota, I’d be gone,” said the owner of Spartan Auto Group, which runs three auto dealerships selling Toyota, Lexus, Infiniti, Volkswagen (VOWG.DE) and Mazda brand cars. “Without them I’d be selling papers on the corner.”
To fund the $25 million worth of gleaming new cars at his showrooms, including here in Michigan’s capital, Criscuolo needs floorplan financing, or inventory loans.
Floorplan financing is the lifeblood of U.S. auto dealers because it allows them to pay for vehicles when they take delivery and carry them until they find a buyers. Full Article at Reuters
Why The Local Dealership?
Here is a great story about a small local dealer beating the odds, it was built in 1933 with a $500.00 loan. Dealers First Financial has the tools and training to assist an investor with providing local merchants with inventory financing.
Look at where the GDP was at that time, Makes you wounder where Mr. Schumacher got his loan…
