The State of Automotive with NIADA

You are currently viewing The State of Automotive with NIADA

The State of Automotive with NIADA “Automotive customers are being pushed down the credit funnel. If they could qualify on the retail side with a 650-680, now that paper is being turned away, so they have to go with the Independent or the buy-here-pay-here sector.” -Herb Anderson Collectively, the NIADA moderators — Ben Goodman, Bill Elizondo, and Ed Curry — bring more than 100 years of experience to the table, working on almost every level of the car business.

Join us for an engaging conversation about the great year buy-here-pay-here is anticipating.

Vendor Partners





📞 Connect:


Instagram: @_niada


NIADA Dealer 20 Groups
Visit us for more information
Twitter: @_niada


⏰ Highlights:

00:00 Introduction

13:30 Shifting Your Marketing Strategy

29:30 Delinquency on the Rise

34:30 Comfort Levels

1:13:30 Next Five Years

Subscribe to My YouTube Channel

Follow the podcast here

Send in a voice message
Support this podcast


Herbert Anderson (00:14.382)

welcome to another episode of the dealer talk podcast this is your host herb anderson thank you so much for tuning in today we got a great guest great panel great session great co host what’s going on charity and farmer

Charity (00:33.540)

what is up happy podcast day a little although everybody else has already seen my look because I had my look last week

Herbert Anderson (00:35.502)

new look new day there you go

Herbert Anderson (00:43.122)

how so

Herbert Anderson (00:48.562)

well yeah but I was in n d a so I didn’t see it

Charity (00:48.800)


Charity (00:51.360)

I know

Herbert Anderson (00:53.442)

so it’s new luck for me

Charity (00:56.700)

same for you

Herbert Anderson (00:56.842)

there it is louise edit that part you know like a little thing or you know little sparkle zoom in you know the whole deal

Charity (01:05.400)

let’s just note that you have a new look as well

Herbert Anderson (01:09.062)

I don’t have a new look

Charity (01:12.080)

the lack of facial hair

Herbert Anderson (01:12.082)

other than I gained like thirty pounds while I was on vacation and I can’t seem to shake this weight off no matter what I do other than that pretty good it gets harder to lose weight man like I don’t know like I’ve been eating like five on calories a day I think for like three weeks and it’s like yeah and I feel like I’m getting fatter

Charity (01:29.560)


Charity (01:32.880)

five hundred calories a day that’s probably why

Charity (01:41.100)

what kind of calories

Herbert Anderson (01:41.322)

I don’t know I don’t know what’s going on what

Charity (01:45.900)

I said what kind of calories

Herbert Anderson (01:48.742)

so I started doing this thing this these meals called factor shout out to factor now I’m not getting paid for for this so factor if you want to be a sponsor of the podcast hit me up um no but there’s these meals that they send to you and they’re freaking amazing they’re so good they’re delicious and nutritious and they take about two minutes to cook and they’re portioned and you can pick like between protein if you want to do like a full on protein

Herbert Anderson (02:18.662)

do you want to do a quito diet or whatever and then the men tells you when you’re picking the meals what they’re kind of what they fall with the parameters but the best thing they do that I really enjoy is they do these juices and they’re like pre pre squeeze juice and vegetable mixtures and so they’re just right there and they’re ready and all I do is drink them in the morning as my breakfast and start the day right why are you laughing

Charity (02:44.240)

I’ve done this mark because I’ve done it before and the whole time I was doing the fact or thing I just thought these are like t v dinners we have gone back to t v dinners

Herbert Anderson (02:56.942)

but they’re not t v dinners it’s just a packaging they taste really good and they’re very well prepared meals don’t like down play like the packaging looks like t v dinner but they are freaking awesome

Herbert Anderson (03:11.982)


Charity (03:12.160)

I should do them again because

Charity (03:16.400)

I just eat out too much

Charity (03:20.040)

so I do like there bring up milk shapes

Herbert Anderson (03:21.802)

but see I don’t I don’t that’s what I’m saying like it’s getting harder to lose weight because I don’t need out a whole bunch and I mean look at my face is like huge

Herbert Anderson (03:34.722)

you know I don’t know anyway

Charity (03:35.280)

that’s bout huge

Herbert Anderson (03:39.882)

what it’s true

Charity (03:40.040)

no it’s not no it’s not you look fine it’s funny that I’m the one telling you that you don’t look fat

Herbert Anderson (03:50.462)


Herbert Anderson (03:53.242)

but I’m forty now so I have an excuse

Charity (03:53.540)


Charity (03:56.860)

no you don’t

Herbert Anderson (03:59.562)

yeah you know I’m doing all the right things I’m exercising every day I’m meeting right so I can’t I mean dude there’s only so much you can do right

Charity (04:01.140)

no you don’t

Charity (04:08.580)

okay next time I decide to use any of the normal excuses that I might have and you go that’s just an excuse

Herbert Anderson (04:21.141)

well yeah but that’s you know I can say that because I mentor you so I can say those things you’re the man t you have to be like yes sir no sir

Charity (04:21.760)

then I’m going to tell you oh yeah

Charity (04:33.140)

so I have to be like

Charity (04:39.980)

I can’t give it back because I’m the mentI interesting interesting concept on that one the apprentice

Herbert Anderson (04:42.702)

yeah exactly

Herbert Anderson (04:45.962)

you know you’re the apprentice

Herbert Anderson (04:50.142)

you’re the apprentice

Herbert Anderson (04:53.362)

anyway is this a car is this is this a automotive industry podcast or is this a fashion podcast or a weight lost podcast talking about here

Charity (04:53.960)

can I pause an apprentice from now on

Charity (05:02.660)

fashion I want to talk about we call it apprentice from now on um because that sounds like I’m a little bit I want to be an apprentice from now on because that makes me feel like I’m a wizard

Herbert Anderson (05:07.562)

you want to you want to

Herbert Anderson (05:16.802)


Charity (05:18.180)

I don’t know it has like a very very magical field

Herbert Anderson (05:22.042)

what you’re talking about magical field

Charity (05:26.420)

yeah like harry potter

Herbert Anderson (05:27.982)

you’re funny

Charity (05:33.860)

what a weird way to start our podcast today it is what it is

Herbert Anderson (05:39.282)

our shell that’s the beauty that we can start it off however we want

Charity (05:42.400)

the more

Charity (05:44.880)


Herbert Anderson (05:46.502)

anyways what’s going on dude are we going to talk about anything that’s even remotely related to the automotive industry or not do you have anything for me today

Charity (05:56.780)

do you want to talk about

Charity (06:01.820)


Herbert Anderson (06:05.542)

not really for one I think my prediction that I that I let out a couple of weeks ago is not going to come through so I’m gonta have to eat my words second I don’t really I’ve come to the conclusion that I don’t understand what the hell is going on over there I don’t get it mathematically speaking they should be done but for some reason now the stock is is growing and growing I think it went up

Charity (06:21.200)

uh uh

Herbert Anderson (06:34.822)

twice like they’re in double digits right now I think like thirteen or twelve dollars so um I know there’s some weird I think it’s at twelve dollars right now or thirteen dollars something like that and it was at six just a couple of weeks ago

Charity (06:37.780)

it’s like the battle of Thermopylae            

Charity (06:44.140)

they how much did they how much did they go up

Charity (06:52.420)

yeah it’s like the battle of thermopylae they’re gonna do you know the battle of you do I mean you’ve seen three hundred

Herbert Anderson (06:54.122)


Herbert Anderson (07:01.642)

yes um narrow path yeah narrow path um

Charity (07:04.520)

tooth and nail that’s carboy right now

Charity (07:10.980)

I’ve actually never seen three hundred

Charity (07:14.520)

I just know the historical story so that makes me cool

Herbert Anderson (07:14.922)

okay yeah the historical story okay good good to know

Herbert Anderson (07:21.842)

terry knows the historical history

Charity (07:25.580)

the historical history the historical moving on I think that Carvana is just fighting tooth and nail man like the sure not given up that’s damn

Herbert Anderson (07:28.002)


Herbert Anderson (07:36.822)


Herbert Anderson (07:39.802)

well I don’t know I don’t I don’t think it’s that I just think it’s it’s a product of circumstances

Herbert Anderson (07:46.742)

I don’t know at this point like I want to refrain from comment to because it’s just I don’t get it I don’t I don’t understand it like I said mathematically speaking this should be a done deal but for some reason

Charity (08:03.160)

I know that I’ve said this before but I feel as if being in the motive industry over the last two or three years has been like an on the grounds lesson in economics and business and I learned new things every day Carvana would be one of them been doing a lot of reading like why

Herbert Anderson (08:20.422)


Charity (08:29.880)


Herbert Anderson (08:30.062)

well I mean not to completely shift gears here it’s kind of related to the use car side of the business but things are also on our end they’re a little bit um

Herbert Anderson (08:45.202)

in flux for lack of a better word like a lot of people that I’ve talked to were anticipating january to be away down month and first for a lot of the stores that I’m working with that wasn’t the case they for the most part they were all you know they were in growth in relationship to january of twenty twenty two obviously not on the yeah well over all in general but not obviously not on the gross

Charity (09:07.660)

with you sports

Herbert Anderson (09:14.901)

profit side but unit wise a lot of the stores had sold more units and some of them made more money too I’m not saying that that’s not that that’s not the case but

Herbert Anderson (09:28.442)

just it hasn’t started out started out the way that we had anticipated and then I haven’t really seen I mean I’ve seen some decreases in digital traffic but I haven’t seen stuff that it’s like well okay here it is like no shoppers so um I don’t know

Charity (09:46.520)

so in linked in the other day I saw

Charity (09:51.080)

what if post would you rather so would you rather

Charity (09:59.400)

go back three years knowing what you know now um and do the last three years or

Herbert Anderson (10:05.142)

yes I don’t need to know what else it’s coming I don’t need to know the r yes I would like to go back three years knowing what I know now

Herbert Anderson (10:15.282)

that’d be ideal no i’d go back with what I know now

Charity (10:15.300)

or take ten minors today

Charity (10:20.760)


Herbert Anderson (10:21.922)

because so many different ways to make more than ten million dollars on sports for one

Herbert Anderson (10:29.162)

that’s an easy one three years ago we would anticipate you’d be right at the at the at the brink of well that’s one you’d be right at the brink of the the shift right and people thinking that it was going to be a terrible time for the automotive industry and it ended up being one of the best couple of years um yeah I would go back with what I know now for sure

Charity (10:30.840)

yeah that was that on the world cup

Charity (10:56.840)

see I’m just not the kind of person that would ever go back whenever I get those one if would you go back to your childhood if you know what you know I would not go back I would not go back three years and do those three years over again now no thank you I will take my ten million dollars and I will make that work for me

Herbert Anderson (11:05.282)

well that’s different

Herbert Anderson (11:15.262)


Herbert Anderson (11:21.022)

yeah but that’s not fun

Charity (11:23.200)

that’s not fun

Herbert Anderson (11:24.582)


Charity (11:29.300)

so you would like the time travel I would not

Herbert Anderson (11:30.122)

so you okay so you wake up tomorrow and have ten million dollars great

Herbert Anderson (11:35.502)

then what

Charity (11:36.980)

period end of story

Herbert Anderson (11:38.462)

ah right exactly it’s not fun money is only going to go so far and then it’s like

Charity (11:41.440)

you wake up through

Herbert Anderson (11:49.122)

you know

Charity (11:51.800)

I don’t know I wouldn’t want to wake up three years ago

Herbert Anderson (11:57.722)

anyway anything else

Charity (11:58.200)


Charity (12:01.900)

what do you have

Herbert Anderson (12:05.562)

um I mean i

Charity (12:08.300)

if I’m an apprentice what does that make you a master or an apprentice what what’s the opposite of an apprentice

Herbert Anderson (12:12.262)


Herbert Anderson (12:18.622)

is it a prentI or know that’s the that’s the plural for apprentice apprenticed multiple apprentices I don’t know that’s the teacher I guess I’m the teacher you’re the apprentice

Charity (12:20.920)

I don’t know

Charity (12:27.660)


Herbert Anderson (12:36.362)

so anyway I’ve just been circulated in your head there for for ten minutes

Charity (12:37.480)

anyway what do you have

Charity (12:42.940)

no actually I was thinking is it my job to be the one that always brings the stuff or every week and I didn’t realize until now

Herbert Anderson (12:47.802)

yes of course that is that is literally what your job is like yes

Charity (12:59.200)

oh you don’t think the talent in vol cuisine

Herbert Anderson (13:00.942)

um no I mean for me it’s been look it’s obviously the beginning of a new year I think that there’s a lot of different things that that are in play here um you know my major you know opening comment here is just the like I said how things are in flux and it’s very hard to predict right so if you’re not if you’re not looking at your data consistently right now you’re at a disadvantage like you got to be looking at things and when I talk about that I’m not talking about like

having conversations with venders and they’m telling you how awesome they are in that sort of deal but actually looking at the stuff that that makes a difference for example how many front line units you have right now available to sell how many in relationship to last year do you have more do you have less do you have more new and less to use which is the kind of like the combination that I’m seeing right now and if so are you marketing new because there is a lot of stores still that are stuck in the use cycle and they’re not shifting those dollars to new cars and I’m see

the new cars sitting there and starting to accumulate age so you got to start shifting your strategies um you know it’s not just because you have new cars people are all a sudden going to come by like there has to be a marketing play there um there’s a lot of customers that are still skeptical that they don’t believe that inventory is on the ground even though they see it on your website beause they’ve gotten used to you know seeing it trying to make appointments for it are calling and then you know

if you’re like most dealers that try to get people in the door and then they showed up to test of a car that you didn’t have so all these things you need to start re assessing and and you know using that information using the data to set yourself up with success another another good metric to look at as appointments how many appointments did you have set last this same time period last year in relationship so you have right now are you getting more leads are you getting less leads what about your website traffic

and when I talk about website traffic I’m not just talking about um overall but how much of that traffic is new how much of that traffic it is used and so on and so forth so um you know those are the things we have a metric internally um with the stories that I work with with that that it’s called m b f or money ball factor in that house we anticipate how many sales like if with that percentage

that race show I can anticipate how many cars or dealership is going to sell within a plus or minus ten um um you know um what’s it called plus or minus ten m variance so um you know if you want to learn what was that

Charity (15:48.840)

and where does moneyball factor come from

Charity (15:53.460)

I said where does money ball factor come from

Herbert Anderson (15:56.822)

well I picked it up from jim flint which we’ve had on the show before but he he got it from you know the the movie money ball like the premise there was you know you got to get players that get on base if you get people on base you’re going to score more more runs you score more run you’re gonna win more games so it’s it’s the same premise here we’re trying to get people to the website you get more people to the website that’s goin to lead to more conversions ultimately that’s going to lead to more sales so if you understand that number if you understand that

Charity (15:59.260)


Herbert Anderson (16:26.582)

math then you can’t anticipate you know within a fairly certain degree of a variance how many cards you’re going to sell in a given month um so well what was that

Charity (16:33.500)


Charity (16:38.220)

what’s the mat

Charity (16:42.180)

I said what’s the math for our listener

Herbert Anderson (16:43.982)

well I’m not gonna give my secret away for free here come on now we yeah but okay go look at the block post but come on now um

Charity (16:48.360)

there’s a block post about it I’m pretty sure you did

Charity (16:59.400)

yeah i’ll link the block post

Herbert Anderson (17:01.442)

you know we we do charge here we got to make a living charity

Herbert Anderson (17:09.962)

but anyway so you know those are things that that we have to be looking at right now especially in the beginning of the year looking our website that’s another one like this is the time to do like I do when I call house cleaning with all the stores on january so what does that mean I make sure to go get a inventory of all the tags that are on the website are their tags on there that should be removed right of vendors that we did business with last year that we canceled or whatever and for whatever

and the tag remain on the side all that stuff slows performance so take this opportunity to go in there and clean that up what about your google analytics are you do you have errors there do you have vendors that are not linking back to your g a and that’s causing you to have a lot of not set traffic um are you all set up for g a four what about your pickles make sure that your facebook pickles all those are installed in firing I did an audit on a group the other day and three of

their pickles weren’t working right so keep a list of those things and every corder send these out and be like hey I want to check that that all these things are functioning and firing m do you have your stores on um I always have a hard time sayin this word like google console if you do make sure you have that information readily available to make sure that you can refer back to it and make sure that that’s active I mean there’s all kinds of things that we need to be doing right now to ensure that we’re going to have a success

for you and that we’re starting out the year with everything as clean as possible your g v p is another one make sure you go and check that out or your hours of operation correct do you have all the right m departments linked in there did you post all your are you posting there do you have all your products on there I mean there’s plenty to do right now folks to insure that you get a really good start to the year and everything s clean and your maximizing your your digital print

so your website is another one c t as well I already said websites but I’m talking now about the digital experience but your c t s do you have the right c t a they’re working you know do you have too much you need to clutter I mean um lots of things that you can be doing right now to ensure that you’re going to

Herbert Anderson (19:29.542)

just have the best digital experience for your customers

Charity (19:33.680)

and it’s best to do it now well we’re kind of all just waiting for the next the other shoe to fall instead of scrambling to do it

Herbert Anderson (19:34.202)


Herbert Anderson (19:42.262)

well I mean let’s not be negative I think I think that this year is going to be I think this year is going to be extremely positive I think I really do I think that there’s tons of opportunities still I think there’s going to be inventory shortages that are going to move us in the direction of profitability and I think that um with everything that’s happened in the industry that we there’s still a lot of demand out there and we can’t um we got account for those things but anyway ben

Charity (19:48.860)


Herbert Anderson (20:12.162)

waiting in the lobby let’s get him in here before he um says I waited too long for you guys so without further ado ben goodman what up ben how your doing sir

Charity (20:29.320)

hello ben

Charity (20:32.720)

good how are you

Charity (20:36.320)

um are built

Herbert Anderson (20:36.662)

what is going on sir how are you doing

Herbert Anderson (20:44.542)

yes sir we are we’re alive

Charity (20:47.240)

we’re not live we’re not live I can edit this

Herbert Anderson (20:49.482)


Herbert Anderson (20:53.182)

we’re live

Charity (21:01.060)


Charity (21:08.040)

it records on your computer directly and then at the end you’ll upload it to us it freaks me out when it’s really choppy to so

Herbert Anderson (21:11.622)

and then it sends it to us

Charity (21:21.580)

that’s good

Herbert Anderson (21:23.882)

uh uh

Charity (21:25.020)

he’s always blurry

Herbert Anderson (21:26.822)

I’m always blurry man

Herbert Anderson (21:33.582)

oh let’s let’s

Charity (21:33.940)

no that’s how we like it around here

Charity (21:43.580)

so our beds are built bullied on their way yeah

Herbert Anderson (21:55.522)

I don’t see just a quick note here I don’t see anybody in the lobby charity so

Charity (22:08.560)

I know when I did the whole work

Charity (22:12.240)

her when I did I had to arrow down further on the side bar to get the lamb

Charity (22:27.220)

are you done

Charity (22:30.000)


Charity (22:37.600)

there you go

Herbert Anderson (22:38.862)

oh yeah I know it’s it’s just a drum roll

Charity (22:43.600)

are they yeah did you text them I wasn’t me lempififigrd work

Herbert Anderson (22:51.382)

there it is

Charity (22:53.660)

there they are

Herbert Anderson (22:56.082)

all right

Herbert Anderson (23:03.962)

nothing yet

Charity (23:06.100)

uh uh

Herbert Anderson (23:07.542)

right off

Charity (23:09.000)


Charity (23:14.860)

did you hear me earlier her when I said that when I had there we go he figured it out there’s a head

Herbert Anderson (23:15.162)

there’s an end

Herbert Anderson (23:20.342)

there’s an end

Herbert Anderson (23:24.482)

hI ed welcome doing well how are you sir

Charity (23:25.120)


Ed Curry (23:25.480)

and you thank you to be

Herbert Anderson (23:32.282)

well what was that

Ed Curry (23:34.040)

so I thought you forgot about it

Herbert Anderson (23:36.702)

no no I’m just waiting for people to show up in the lobby so just need one more

Ed Curry (23:43.420)

I’ve been in the lobby for eleven minutes

Herbert Anderson (23:48.742)


Charity (23:50.700)

I can’t see them I’m on the guest

Ed Curry (23:50.960)

well confess the worst that happens to me this weekend I’m a good shot

Charity (23:57.280)

that’s true

Herbert Anderson (23:57.462)

right on

Charity (24:01.780)

I’m on the guest side her but I can’t see anybody in the lobby you’re the only one who can

Herbert Anderson (24:05.902)

no I only had four people in there and all four of us are in so

Herbert Anderson (24:11.682)

if there’s somebody else

Ed Curry (24:11.900)

bill was trying to reach troy

Herbert Anderson (24:28.222)

yeah it’s been super busy just got back from an a d a m I was talking to charity here before we

Charity (24:29.320)


Herbert Anderson (24:37.782)

before we got rolling about house cleaning and making sure that you know we’re doing all the things to kick things off right for the stores and making sure everything is cleaned off their google business profiles or websites their facebook accounts so it’s been busy

Herbert Anderson (25:04.602)

you know what I didn’t think so I live in vega so I always go to the to the once here and they’re always packed and I just didn’t see that same turn out over there and then a lot of people that I know and stuff that I called and were like hey are you going they were like no so I only had two two dealers there that that I know so I don’t think so

Herbert Anderson (25:32.402)

and friday was a little bit busy but by saturday I was seeing people leave with their they were in the elevator already with their suit cases and the floor was like half of the traffic so yeah

Charity (25:48.680)


Herbert Anderson (25:55.282)


Herbert Anderson (26:03.022)

ed where are you from

Ed Curry (26:05.260)

I live just south of atlanta in a small town called noon in georgia

Herbert Anderson (26:11.042)

oh right on very cool

Ed Curry (26:13.640)

that’s convenient to their port they don’t have to drive through atlanta

Herbert Anderson (26:18.102)

yeah that’s still the busiest airport in the world right isn’t it atlanta yeah

Charity (26:18.680)

oh that’s nice

Ed Curry (26:22.380)

I think it is your shame lacking when I’m there

Herbert Anderson (26:26.682)

yeah no kidding

Charity (26:37.580)


Herbert Anderson (26:39.182)

uh uh

Charity (26:41.080)

thank you

Herbert Anderson (26:45.782)


Charity (26:53.300)

so ben where are you at

Charity (26:58.320)


Charity (27:11.680)


Herbert Anderson (27:12.222)

that’s hilarious

Charity (27:15.840)

I have I have young adults and teen agers right now it’s such a fun phase of life

Ed Curry (27:39.800)


Charity (27:40.500)

yeah yeah

Herbert Anderson (27:41.282)


Charity (27:45.000)

uh yeah

Herbert Anderson (27:48.042)

enjoy it man

Herbert Anderson (27:51.662)

so I don’t see anybody else in the lobby

Charity (27:52.260)


Ed Curry (28:16.440)

tell bill to click that tam again

Herbert Anderson (28:16.842)

I don’t have any

Charity (28:16.940)

I literally had to go over herb and then I had to like there I know

Herbert Anderson (28:20.742)

oh there it is now it shows okay there we go

Bill Elizondo(28:22.949)

there you go

Charity (28:29.980)


Herbert Anderson (28:32.082)

oh man that is awesome

Bill Elizondo(28:32.969)


Charity (28:36.400)

uh uh

Herbert Anderson (28:36.622)


Bill Elizondo(28:45.049)


Charity (28:45.500)


Herbert Anderson (28:48.482)

I love it yeah let’s stop very cool

Bill Elizondo(28:51.949)

can you hear me okay

Charity (28:54.380)


Bill Elizondo(28:55.009)

all right wonderful

Herbert Anderson (28:55.922)

yes sir

Bill Elizondo(28:58.189)

I just want I just want to make sure that I was as tall as ben in the the video

Charity (29:06.800)

did he did he freeze

Herbert Anderson (29:08.142)

I think he froze yes

Charity (29:11.600)


Ed Curry (29:16.700)

so when and where was this week showing

Herbert Anderson (29:17.282)


Herbert Anderson (29:24.202)

we’re alive right now

Ed Curry (29:26.320)

okay well I thought it was going to be recorded and showing some other

Charity (29:27.480)

we’re not we’re not lying

Herbert Anderson (29:29.362)

no no no no no we’re recording we’ll be able to add it bill left us

Ed Curry (29:32.280)

so I need to watch what I say don’t i

Charity (29:35.880)


Ed Curry (29:37.580)


Herbert Anderson (29:38.082)

bill bill got in here and said nope

Ed Curry (29:40.780)

on the no of your life

Charity (29:41.340)

ah it all sort of

Charity (29:46.620)

yeah builds in arizona right

Herbert Anderson (29:50.322)

no that was awesome went I wanted to make him the moderator

Ed Curry (29:56.900)


Bill Elizondo(30:11.727)

must be the hat

Charity (30:13.560)


Bill Elizondo(30:18.227)

h is it uploaded yet no not yet

Herbert Anderson (30:21.882)

not yet so I just I just so you can you’re only going to be able to see you guys is self and then will this will allow us to have better um which malI the internet and the stream is going to be better

Bill Elizondo(30:35.187)


Charity (30:35.640)

it will be yeah it will be fun

Bill Elizondo(30:37.967)

yeah it says uploading fifty five so I’m still it says mine is still uploading

Charity (30:42.520)

yeah so it’ll do that because it’s recording on your computer so at the very end you’ll want to keep it open until it finishes uploading yeah just so you know we learned that the hard way

Bill Elizondo(30:49.247)

got it

Bill Elizondo(30:53.687)

oh sure no problem

Herbert Anderson (30:55.222)


Herbert Anderson (30:59.882)

all right

Charity (31:00.100)

m hm

Herbert Anderson (31:02.702)

so first of all thanks everybody for being here we kick things off here at the dealer talk podcast with an intro so tell us about you let’s start with ben

Herbert Anderson (31:42.362)

oh wow

Herbert Anderson (32:40.562)

so yeah I know I know j pretty well I used to work for auto trader and they were always trying to get them to sign up so I used to go to their locations here in vegas like almost every week trying to get them to sign up for the on the platform so ed what about you tell us about you sir

Ed Curry (33:02.520)

well I started a little bit before ben did I’ve been in the business forty three to forty four years I quit counting but these kind of questions keep coming up so I guess I better start keeping up with about the first half of that I spent working in dealer ships in every role from sales person to being a partner in multiple stores after that I went into the consulting business m one of the major clients high

Herbert Anderson (33:10.382)


Ed Curry (33:32.440)

me away from the consulting business and I took over a national role for one of the largest publicly own dealer ship groups stayed there about eight and half years went to another dealer ship group stayed with them in a national role for about four and a half years and then I went to work for a the largest private group that existed at the time and they ultimately sold to burgher half away out of motive and

Ed Curry (34:02.800)

I own I did something for about a year and a half in a consulting role

Herbert Anderson (34:09.462)

was that van tyle

Ed Curry (34:11.400)

yeah the private one was van tyle correct they sold sold the burgher hathaway um so anyway covid rolled around and I had to make a decision whether I was going to keep working around the public as my daughter said or be able to come visit my grandchildren at her house and that was a pretty easy decision so I left and decided I was gonna retire to him

Herbert Anderson (34:14.021)

grand time right on

Ed Curry (34:41.300)

why if I was gonna try it for a year and if I didn’t like it I was gonna find something to do if I had to open up and use car line and wound up at the n d and almost exactly a year to the date that I told my wife I was gonna give it so everything is moving along on my schedule just fine

Herbert Anderson (34:51.602)

very cool

Charity (34:56.700)


Herbert Anderson (34:58.802)


Herbert Anderson (35:02.022)

right on bill how about you sir

Bill Elizondo(35:04.567)

hey well thanks again for having us on the the podcast really appreciate that and mine is I started back in nineteen ninety santonio texas with a company called northwest financial turned into welsh fargo financial and I was there for about almost eighteen years with them and became national counts manager and did business with by her pay here dealers across the country probably moved about five different times just with that

organization but had some great territories I was able to make my way and had business that I did in Hawaii so so that was always a nice little business trip that I was able to make um but then I went on to work for America’s car mark I was a director of collection practices and review had over two hundred people that I used to work with directly these are all the account representatives out there ninety one locations at that time when I first started and then I became

vice present of operations I had twenty nine direct dealerships that I really worked with in Arkansas Texas and also Oklahoma so that was a lot of fun there was there was really a lot of great people you know over two hundred associates that I was able to at least touch talk to and you know have conversations with you know when I I was able to to meet them meet up with them but it was definitely a really good opportunity and then moved on from there to another large by her

here operator in fort ween Indiana which is where I’m at now and had the opportunity to work with superior audio they’ve got about seventy one locations in about four different states here in the Midwest Michigan Ohio Indiana and Kentucky and ran dealerships and I was also the director of sales so went on from there and then has been and ed we all kind of started about the same time with n I n d a about a year and a half ago or so and I just been

fantastic ever since I’ve had done some consulting and training and then of course being a moderator is probably the best part of this job and this opportunity so definitely something fun

Herbert Anderson (37:16.722)

on right on so um you know it’s funny when I was a rap I always asked for Hawaii as a territory but I never got it I was thought it would be fun to go out there and consult

Charity (37:26.600)


Bill Elizondo(37:28.527)

it was it was you know everybody left at about you know it was about one or two o’clock in the afternoon and in Hawaiian they were all gone from the east coast so of course I stayed working you know you know that was always you know

Charity (37:30.400)


Herbert Anderson (37:42.602)

yeah yeah so yeah exactly

Charity (37:43.100)


Charity (37:50.280)


Bill Elizondo(37:50.447)

I was working there you go hey ben knows me well ben knows me well

Herbert Anderson (37:53.342)

work is work man so let’s start with kind of a fifty thousand question maybe ben let’s let’s tea this off to you but what do you see right now is the biggest challenges that we’re going to face on the use car side in twenty twenty three

Herbert Anderson (39:15.582)


Herbert Anderson (40:26.962)

for sure no I agree I wonder are you guys seeing any stats on because you talked about payments and stuff have you seen any stat like negative stands when it comes to that you’ve seen more repos have you seen more people miss payments or or you know not so much

Bill Elizondo(40:46.307)

you know I might jump in on that when yes I have bankruptcies have started to come up delinquencies are starting to rise again and I will echo ben’s com commentary as far as on the collection side of this I just had a collection class that I did virtually and we had over thirty people on that call that were just all of you know whether they were directly in collections or or just kind of some one

Bill Elizondo(41:15.807)

the owners of the businesses they wanted to know more about you know what they could do differently and what they could do to make sure they had a good and a banner collection year so you know as far as that goes that that’s we’re starting to see collections start to kind of creep up a little bit more they’re not at the pre pandemic high that we have seen before but they are definitely getting higher even at this point of time so you know just doing some you know best practices you know little things that you can do a little differently to keep customers in line

and as far as you know keeping them in mind and and building that relationship and I think that you know as far as from the buy here pay her side didn’t even you know from the retail side from ed we always try to build a good relationship we have a good relationship with the customer you’re going to go a lot further with that person and that that individual as far as keep him keeping them in the car and making and helping them make that payment

Herbert Anderson (43:17.682)

yeah well yeah yeah I know for sure you seem to have a lot of experience obviously you were in the retail side work with some some pretty big names what would be your input or I don’t know best practice for for dealers as we navigate the potential situation and going into 2023 with a lot of uncertainty

Ed Curry (43:44.160)

well I guess to answer that I would have to say there there two major things that dealers need to be aware of and and start putting their own best practices in place to to make sure that they protect themselves in these two areas and one of them is simply inventory management for the last couple of years you know we reached a point in the used car side of the business where we can

Bill Elizondo(44:11.767)


Ed Curry (44:14.000)

pretty much pay any thing we had to pay spend as much money as we needed to re condition it and we could still sell it for the highest margins we’ve ever sold vehicles for so that caused us to get a little bit I call it fat and happy but you know little bit lazy in our in our inventory management practices so one of the things that a lot of my dealers are struggling with is what do I do I get rid of these units that about two months ago and paid too much for

Charity (44:24.240)


Herbert Anderson (44:30.142)


Ed Curry (44:44.360)

or do I keep trying to sell them and that’s a difficult discipline to teach so dealers are going to have to be very very aware of what they’re doing from an inventory management side in particularly the guys that are bigger and they have layers of management that are making decisions daily that could affect the know the outcome of that challenge um and another one that’s kind of a um interesting bit of information at ran across and meeting with the

some people that basically insure the receivables for the largest floor planning companies in the country and they told me that in the year of two thousand twenty two that the frequency of dealers going delinquent on them or getting out of trust is another term is up forty nine percent over two thousand twenty one

Herbert Anderson (45:41.522)


Ed Curry (45:44.100)

and the severity of those problems is up fifty six percent so what that really means is there’s goin to be some stress put on the four planning sources because of those losses and I think we’re going to see the know the capital supply the money availability start drying up as a result of what I just mentioned and then another really strange phenomenon is it got so easy

Charity (45:45.060)


Bill Elizondo(46:10.767)


Ed Curry (46:14.100)

sell use cars during the I call it the pandemic years m the sales force and in sales managers um developed a lot of really bad habits and there’s a lot of things that we should be doing to sell cars every day that we no longer feel like we have to do because we had two years of if we had the car we could sell it we could sell it for more money than we ever dreamed of so those are the really the two

Herbert Anderson (46:17.942)


Ed Curry (46:44.020)

allen getting fat and happy and and dealing with the in the discipline of inventory management

Charity (47:06.900)


Herbert Anderson (47:24.162)

yeah this is a question for whoever wants to pick it up but I really feel I’ve been kind of thinking about this topic you know like to all you know to um kind of back up what was saying to his point right but there’s a lot of you know and I’ve said this on the show before this wasn’t two weeks three weeks this was years of that behavior and the industry in itself like just from you know inventory levels to

Charity (47:52.800)


Herbert Anderson (47:54.862)

obviously some of the re precautions of the lack of training I mean I just can’t say it and I can’t find a better word to describe it because yeah we were selling cars and so we we just didn’t pay a whole lot of attention to that

Herbert Anderson (48:10.602)

in the new norm whatever that is because we really don’t know what that is today what’s going to be the thing that’s going to that is it going o be inventory or is it going to be training which of whoever wants to pick this up who if you were running a store and you have that challenge what would you focus on would you focus more on training your people and developing you know building up that salesmanship again or would you focus on trying to find the right car so to speak at the right price you

leverage that

Ed Curry (48:41.940)

I can give you a real quick answer you need to do both

Bill Elizondo(48:42.667)

all right

Herbert Anderson (48:46.802)

for sure

Bill Elizondo(48:47.207)

yeah I would agree you need to do both but you know in my my humble opinion i’d say training is going to be or your most ideal um you know at the end of the day you know I can I can get definitely get someone and train them to do the right thing but you know to edge point as well you know need that inventory but you know I’m always big on training and I think all three of us are you know that’s why we continue to do what we do not just as moderators and consultants but we do training thou

the n I d a as well having educational classes and so on because you know in the bigger scheme of things if you have great training and you have great insight and great information and you can learn from some of the best as far as best practices go that’s going to be you that’s that’s going to help you a bigger portion of the way than anything else

Charity (49:38.960)

so there’s this there’s this weird piece of advice that I got years and years ago when it was like in my twenties that was if you have to choose between making your house payment and your car payment make your car payment because you can live in your car and I think that to connect that back if you have to choose between training your staff to be able to sell what you have on the lot or change what you have on them

Charity (50:08.780)

lot train your staff to sell it like they’re the ones who’re going to be there the long term your car should not the units shouldn’t be their long term the way that employees are so I would say for sure training it’s crucial in any scenario

Herbert Anderson (51:14.382)


Herbert Anderson (51:50.202)

yeah for sure

Charity (51:50.820)

so I have I have a question to go back to and forgive me because I don’t know florine at all

Charity (52:01.680)

but I’m really interested in the fact that the delinquencies are that high and we just came through record record profit years how does that how is that

Bill Elizondo(52:07.367)


Ed Curry (52:16.920)

well it was actually isolated to the smaller dealers and the people who heard about somebody that they knew doing very well over the last couple of years so they decided to stop being a plumber and they gotten to use car business so most of the frequency and the severity is a result of people who really shouldn’t have gotten into the use car business but did because it was so easy it’s kind

hard to believe that that that could happen but this is the largest insure of receivables for floor planning sources that there is so again it was isolated to the little bitty mom and pops more so than the guys that have been doing business for ten or fifteen years

Charity (52:59.060)


Charity (53:08.400)

that should know better

Ed Curry (53:10.380)

well and I think they learned something twelve years ago maybe thirteen years ago and the new guys just didn’t have that base of experience and shouldn’t have a lot of them shouldn’t have been in the business but this company doesn’t decide who their customers are going to lend money to they just insure their receivables

Charity (53:13.780)


Charity (53:32.480)

how many did you see a lot of independent tiny little independent like what was do you guys have a number what was the increase on those over the last couple of years you know

Ed Curry (53:42.740)

I don’t have a number

Bill Elizondo(53:56.127)

yeah I would say that in some cases we’ve actually lost some some some dealers in the last couple of years because of just how things have kind of gone and I think that’s the biggest thing that we’re kind of looking at right now there’s there’s been some big acquisitions and some acquisitions of different buy here pay her operators there’s some large ones you know one of the ones that I worked for one point time is as actually purchased

some of their locations maybe not their their book of business but definitely their locations and you know those are kind of going away but you know I think that you’re you know to ben and you know I don’t know that number either but I do know I think that you know we know of some dealers that have gone and have decided that they’re going to get out of this business because of a lot of things that have happened in the last couple of years

Herbert Anderson (54:50.582)

yeah so you know kind of following up that question do you guys think okay so from my conversations and this is local here to maybe la vegas in salt lake but a lot of the independents had some hard times during covid because of inventory because yeah they could sell what they had but they did have hard times getting inventory because inventory was you know

Herbert Anderson (55:21.002)

such a high commodity right did you does that echo what you guys saw nationally or or is that not the case

Bill Elizondo(55:23.747)


Herbert Anderson (55:32.002)


Bill Elizondo(55:32.087)


Herbert Anderson (55:43.342)


Ed Curry (55:51.360)


Herbert Anderson (56:28.502)


Herbert Anderson (56:39.662)

yeah definitely haven’t hit the floor I was just looking at the at viatle’s report their action the manheim report or whatever and you could see the graph and it’s nowhere near where where it was before this whole thing started so there’s still a lot of room for depreciation right so that’s still something that has to be at the forefront of everybody making decisions especially buying cars

Herbert Anderson (57:40.382)

yeah now for sure the other thing that I want to whoever wants to pick this up on the finance side of things so what do you guys think about the do you think that that’s going to put pressure on the independent dealer consumer in twenty twenty three or not so much because those consumers are typically are not the best financial position and there there you know if you’re paying twenty percent you’re paying fifteen percent

you’re pretty much in that in that bracket anyway what are your thoughts there

Ed Curry (58:13.380)

her address it from the retail side from the retail side it absolutely is and will um and fact our retail sar is down about ten per cent year over year from twenty one to twenty two that’s also one of the reasons that the day supply it looks like it’s leveling out because part of the calculation for day supply is the vehicles sold so bottom line is it is

Bill Elizondo(58:15.187)

go ahead ed

Herbert Anderson (58:36.182)


Ed Curry (58:43.339)

having effect on the retail side i’ll let these guys address to buy here payer

Bill Elizondo(58:49.307)

well and yeah I was actually going to talk a little bit about the finance company so I moderate a finance company group as well and from that standpoint and on that side you know they’re definitely they’re seeing that some of the larger finance compabnies are definitely hurting a little bit and they’re asking for more whether it’s a discount or it’s more you know money that they have to get down or whatever the case may be it’s just just additional opportunities to make

Bill Elizondo(59:19.087)

make the deal better for the finance company but at the end of the day it is definitely a been a little bit more of a struggle for some of these finance companies and I think both ben and I will probably talk to you know that we have some some different members and dealers of our groups that have both by here pay here and retail and from the retail side they’ve seen definitely a little bit of a of a up take on on what they need to kind of get down and information that they need but

the by her pay her side they definitely started to feel that little bit of that crunch because you know the heir there lending arm whoever they borrowing their money from has also started to increase the amount of money and the interest rate that they have that they’re paying back on some of these different loans and our lines of credit so ben

Herbert Anderson (59:59.082)


Herbert Anderson (01:00:47.682)


Herbert Anderson (01:01:45.922)

yeah just to make sure I understand so you’re saying that it’s pushing these customers down the down the credit funnel if they could qualify on the retail side with the six fifty six eight now those that paper is being turned away so they have to go with the independent or the buy here pay here sector

Herbert Anderson (01:02:10.722)


Charity (01:02:14.600)


Herbert Anderson (01:02:29.482)

for sure what about then what about differentiators because you know for all the things that are happening right now these are you know by all intents and purposes these are all um external factors right we can’t the consumer can’t control that the dealer that can control and all we can do is adjust and work in the environment that we have but we could do things differently in the sense of I know you guys have now certification program and i’d like to get your guys us take on that like do you think that that’s something

Bill Elizondo(01:02:30.727)


Herbert Anderson (01:02:59.382)

it could be a differentiator that’s going to push consumers or I don’t know gift consumers more um security in their purchase maybe for lack of a better term

Ed Curry (01:03:10.900)


Ed Curry (01:03:15.260)

I’m sorry

Bill Elizondo(01:03:16.027)

so go ahead ed

Ed Curry (01:03:18.600)

no I was distracted by a non one one call from one of my consulting dealers and I looked away I don’t know if you were addressing me or

Charity (01:03:20.600)


Herbert Anderson (01:03:29.262)

no just in general like whoever wants to pick that up like um so basically because yeah

Herbert Anderson (01:03:42.582)

uh uh

Bill Elizondo(01:03:42.987)

no go ben

Herbert Anderson (01:04:08.162)


Herbert Anderson (01:05:11.482)


Herbert Anderson (01:05:19.102)

right for sure um and what do you think from the retail side how do you think that’s going to impact negatively or positively on the retail side

Ed Curry (01:05:31.320)

positively without a doubt it adds a I guess a new market segment that the retail dealers can can reach out to and certified cars have been around solon now people who are interested in those search for and in their search they’re pretty agnostic about where the cars are located or until they narrow it down to a few and then then the things have been

Charity (01:05:49.900)


Ed Curry (01:06:01.280)

just mentioned you know come into play so without a doubt it will help the dealers the ones who understand that there are people out there that won’t buy anything but a certified pre own vehicle

Herbert Anderson (01:06:15.362)

and in these

Charity (01:06:26.280)


Herbert Anderson (01:06:30.722)

no no that’s fine so the just to kind of understand this a little bit better the franchise dealers can also certify their noncertifyable units through this program

Bill Elizondo(01:06:47.047)

you know I don’t know the answer to that when ben or red do you guys know I believe it’s more just for independent dealers but you know I don’t know if they’ve excluded new car franchises to that so

Ed Curry (01:07:03.040)

her um if I understood your question correctly it was could a franchise dealer who attempted to certify vehicle through their o m program and it failed could they certify through n d s program or some other program I would have to say that depends on who that m was because there’s a few o m certified programs that are really picky

Herbert Anderson (01:07:21.682)

right yes

Ed Curry (01:07:33.280)

as an example um one particular n I’m not gonna name the ms but one of them had a provision that if two panels had had any paint work there was no dollar value no estimate of the damage or what the repairs cost but if it had two panels painted you couldn’t certify well that’s that’s ludicrous um my wife’s explore which I both knew as got more than two panels it would need need a couple

Herbert Anderson (01:07:33.302)


Herbert Anderson (01:07:55.782)


Charity (01:07:57.000)

uh uh

Ed Curry (01:08:02.900)

things done to him so in that case assuming that vehicle meat all of the other requirements of an n d a n d a program were a different program um yeah that could happen um really depends on which manufacture you’re referring to

Herbert Anderson (01:08:04.742)


Ed Curry (01:08:33.880)

it’s not direct certainly not directed at right

Herbert Anderson (01:08:37.281)

yeah so be but but it’s still I mean I think it levels out the plane field right and and it allows for better competition which always that’s always a good thing right so

Bill Elizondo(01:08:37.907)


Bill Elizondo(01:08:48.047)


Herbert Anderson (01:08:51.882)


Herbert Anderson (01:09:59.702)

yeah no I agree yea

Charity (01:09:59.860)

I definitely agree with that I for myself that’s one of the things that you know working in the franchise dealer ships you run into that where customers really like well this used car lot they certify their vehicles to and you’re like what does that mean but when they made a when it’s backed by that there’s just so much value that comes with that that yeah I completely agree with that

Bill Elizondo(01:10:30.187)

yeah you know I think the the other thing to to echo again to bend point is you know every one of these you know consumers that comes on to you know especially by here pay here a lot just you know they’re already nervous and you know at the end of the day because they might have had a bad experience they might he not have had a a very good vehicle at some point time so to have something like that to have that banner you know waving up on your on your flag pole or you know just anywhere on your dealership you know means a lot but then it also

you know there’s a comfort level and you know everyone’s nervous just at least not only just get a proof but just to know that they’re going to have a good running vehicle and that it’s been certified at that point time is a big deal so so to your point and again to to bend you know it’s it’s going to be a game changer in the going forward in the future

Herbert Anderson (01:11:23.882)

right on so the next thing I wanted to talk about here is price because I know that that’s been something that I’m seeing we are having a hard time letting go of and I wanted to get your guys perspective on it what do you think is going on with that or what have you seen on your end um when it comes to pricing and trying to keep those inflated prices despite the fact that the market is telling us that you know that

time has arrived to kind of normalize that

Bill Elizondo(01:11:58.367)

one of the things that I think that you’re going to find out is that well they’ve already purchased the cars before the market start to normalized right so a lot of the vehicles that they’re looking to try and sell at this point time are vehicles that they purchased in the last thirty six or ninety days and they’re trying to at least you know take you know sell to a consumer at that point so those things are our big factor that play into that well I think going forward as the prices kind of come down you’re going to start to see those

Herbert Anderson (01:12:07.242)


Bill Elizondo(01:12:28.227)

same because most people’s model is not to try and and do anything other than just to make a little bit of profit on on some of these vehicles at that point so they weren’t really trying to hurt anybody they were just he is just like anything else you know we don’t have a lot of them so you know we’re going to have to sell what we can to be able to make at least a profit on the ones that we do have and I think this kind of goes to I can’t remember if it was ben or ed talking about you know that you know we’ve been fat and happy for for a period of time and

surely but at the same time we’re not doing the volume that we were you know way back when so i’ll let these other guys kind of chime in a ittle bit on that as well

Herbert Anderson (01:13:11.742)


Herbert Anderson (01:13:30.002)

yes leave

Bill Elizondo(01:14:30.667)


Herbert Anderson (01:14:31.122)

and anything from you on the retail side of it are you seeing

Ed Curry (01:14:33.980)

well yeah pricing is extremely critical over on the retail side and the you know her the rising tide floats all boats so for a couple of years pricing in the wholesale world just kept rising and diggers had no choice but to pay that or buy something that was potentially sub standard and take it back and make it make it a good quality vehicle so they spend a lot of money on it but

Ed Curry (01:15:04.060)

as prices continue to rise on the auction blocks so did they in the you know online world for all of the third party providers out there and as prices have started coming down and dealers are saying what I’m going to do with this old inventory to bench point they are now able to buy vehicles at a much lower price and their problem is they’re going to wind up retailing

um vehicles for less than they paid for him again to ben’s point so an example being I just talked to a dealer day before yesterday very good dealer very successful dealer in a large dealer um he is now paying about ninety percent of the um you know average inventory pricing I don’t want to name too many products but where he was paying a hundred

cent of inventory pricing two months ago so when he was paying a hundred percent and selling it for more he’s now going to wind up selling that inventory that he bought for over a hundred percent and yet if he if he can continue to buy at the ninety percent level he can certainly makes you know in theory he’d make a ten percent margin on it so prices went up so did retail price

holsal prices went up so retail prices wholesale prices are going down they’re going down faster than people are accustomed to and so are the retail prices which is the dilemma that ben was talking about aged inventor

Herbert Anderson (01:16:48.982)

yeah man I don’t know I just feel like we’re still kind of stuck in these I still have dealers that bought cars um and every instead of dropping their price are still raising the price and it’s like dude what are you doing man like I don’t get it like I understand you’re trying to make money but yeah well I bought this car high and now I have this cost and every thirty days I have to pay a premium stuff and I’m like yeah dude but the market is changing you can’t continue to raise the price on the car you’re just digging yourself

Charity (01:16:50.200)


Charity (01:17:06.400)


Herbert Anderson (01:17:18.742)

deeper hole you know like

Bill Elizondo(01:17:20.587)

well I think that you’re I’m sorry go ahead

Bill Elizondo(01:17:24.787)

no ben

Herbert Anderson (01:17:32.342)


Herbert Anderson (01:17:52.602)

make payments he

Herbert Anderson (01:18:12.702)


Bill Elizondo(01:18:18.107)

and I think to your point to your question or your concern her you know I would say that that’s the biggest thing you know right now get him you know sell him get him out of their whole salem if you need to you know but but at the end of the day you know it’s not something that you want to hold on to because every time and ed actually just did a presentation that he added for the florida independent auto dealer association and in that it was he talked about

not if you hold that car for more than fifteen to thirty days here here’s where your your profits are going to be selling the car for the same at same amount of money so if you’re having to continue to raise that price and now prices are starting to go down you’re going to keep holding on to that and all you’re going to do is you’re going to lose money rather than make money so you to that point you know that’s that’s a big thing but you know who else is going to be knocking them down is these finance companies are gonna be buying that kind of stuff they’re there right now looking at some of those things and saying no at that price is

Herbert Anderson (01:19:05.962)


Bill Elizondo(01:19:17.707)

too high so so I think you know from in the bigger spectrum here that’s gonna now determine and play a big role of the prices of some of these vehicles because the finance company isn’t buying them at this amount of money then they’re not going to really be able to sell them in most cases because they’re not going to be financing themselves and if they did the buy here pay here dealers already know a front it’s not my front it’s going a b in my back that I’m goin be collected on that so I’m going to make more money you know on the back side of this deal not the front side

Herbert Anderson (01:19:47.402)

for sure for sure all right guys hey thank you so much for doing this really appreciate it there is one question that we ask everybody that comes on the show but before we get there I want to get your guys as thoughts individually on the car vana situation any predictions what do you guys think is going to happen what do you think is happening because there’s just a lot of weird stuff going on over there many thoughts

Charity (01:20:09.000)


Bill Elizondo(01:20:14.447)

I will go ahead and jump on that one first you know the fact that they let go of a lot a large number of receivables really kind of opened up there there their bank kind a little bit more so that was what that

Herbert Anderson (01:20:27.102)

yeah that’s funny bill was it it was like four billion dollars right

Charity (01:20:29.660)


Charity (01:20:32.100)


Bill Elizondo(01:20:32.247)

I know I know it’s huge it was huge so you know so so you know that that was a big deal and you know from those you know so I used to buy portfolios never that large not even close but you know that that was you know one of the things that when you opened up and you freed up a lot of that cash it gave you a little bit more flexibility and ability but they guarantee they had some expenses they had to be paying down and paying off

Charity (01:20:37.400)


Herbert Anderson (01:20:37.662)

yeah i’d say

Bill Elizondo(01:21:02.067)

um you know what do I see going into the future you know with with the with their purchase of adessa and and having that that capability of having a wholesale market for themselves to be able to you know run cars through and have their own inventory that’s going to be a big positive for them kind of going forward so you know I think there’s going to be some new things that we might be seen coming from them and I don’t think they’re going going away completely yet but they share our kind of slowing down in a lot of different areas especially with the titling issues and some of the other is

that they’re having in some of the states

Ed Curry (01:21:36.640)

well um herb I take my shot at it they’ve been defying gravity for years and start pricing evaluation is just incredible they finally had to pay the piper they freed up four billion dollars worth of dry powder and my prediction is at some point they’ll run out of that dry powder because they still have the inventory

if they had and they’re facing some head winds on on retail sales um and I don’t understand the stock pricing they’re up from in the high trees a week ago at the fourteen dollars a share but all that’s going to do is perpetuate and I think it’s gonna be a long slow death they may come all the way back but I don’t predict it myself

Herbert Anderson (01:22:33.722)

yeah they’re in the short squeeze short squeeze phase right now

Charity (01:22:57.800)


Herbert Anderson (01:24:33.122)

well there it is yeah no I agree I think I can’t I can’t understand how there you know I mean they got the option and stuff so hopefully that that gives them some um some room I think it was the dumbest smartest thing they did was by that but time will tell

Bill Elizondo(01:24:33.747)

I would say that

Charity (01:24:51.300)


Bill Elizondo(01:24:53.987)

good way to put it you know absolutely

Herbert Anderson (01:24:58.522)

so anyway thanks again guys for doing this we really appreciate it there is one question that we ask everybody that comes on the show and that question is where do you see the automotive industry heated in the next five years and why so we’ll start with ben then ed and we’ll end with bill

Herbert Anderson (01:26:24.662)

right on ed

Ed Curry (01:26:26.880)

her I think we’re gonna in the on the use car side I’m not addressing franchise dealers I think we’re going no see seventeen to nineteen million retail car over the next five years and it’ll it’ll float up and down a little bit month to month I don’t see any explosion in electric vehicles there’s a lot of hype and then a lot of things going on in that area but but I think in the use car dealer word

old um there’ll be some growth there but I don’t think it’s going to be an explosion um and I do know that our were stores that are doing their own re conditioning and doing retail service are going to have to invest in people and equipment to deal with all of the new dost items that they re rolling into the cars are started rolling into him at a very high rate about two thousand fourteen in every year

there’s new a dos equipment added to car so so we’ve got to get ready for that and I think in the next five years we’re gonna see a real growth in the service side of the business so we really we’re going to rock back and forth about where we’re at now in volume um and we’re going to see a big tremendous growth and service

Bill Elizondo(01:27:51.847)

so from my so save the best for last is that what it is so yeah ben and I always kind of go back and forth on that one you know I will say that from the next five years especially for the by here pay your side of this business I see some great things you know as ben mentioned technology is going to be so much better and it’s going to give

Herbert Anderson (01:27:51.882)

right on bill

Charity (01:27:56.300)


Herbert Anderson (01:27:57.302)

yeah yeah

Herbert Anderson (01:28:01.282)

uh uh

Charity (01:28:01.980)


Bill Elizondo(01:28:21.627)

so much more opportunity but I think some dealers are really going to kind of go back to that to the old handshake of talking to people and being in front of them and trying to trying to create that that relationship again with them that they might have lost a little bit during the last couple of years so you know I can see that as a big thing kind of going forward and for the next five years you know I see our growth in this section of this business is plentiful and we’re going to start to see some of those guys that might have left

Herbert Anderson (01:28:37.142)


Bill Elizondo(01:28:51.887)

might be coming back because as prices of cars start to kind of soften a little bit I think they’re going to want to get back into the market they really didn’t want the league but they didn’t want to pay some those prices that they had to pay at that point time so that’s kind of what I’m looking at team and going forward as far as the next five years

Herbert Anderson (01:29:09.642)

right on well there you have it folks thank you again so much for joining us that’s all the time that we have for today and as usual we’ll talk later