Rick Wise

The
Credit Report
July 2012
Gosch Ford Lincoln Mercury
Benefiting from the Right Organizational Design
By: Jim Lawson, Market Area Manager
A
s many dealerships know, simply having
the ability to say ‘Yes’ to every customer,
regardless of their credit history, doesn’t
necessarily guarantee success – but, implementing
the right Organizational Design can certainly help
your dealership reach that end. Gosch Ford Lincoln
Mercury (Gosch), located in Hemet, CA, enrolled
with Credit Acceptance in October of 2005 with
the goal of adding incremental sales. Though they
didn’t achieve their goals overnight, they are now
a one rated dealer and average 79 applications and
13 Credit Acceptance contracts per month – a nice
supplement to their new car sales.
Mike Ryan, Director of Special Finance at Gosch,
stresses the importance of setting up a business
plan following Credit Acceptance’s recommended
Organizational Design process. “Putting the right
people, processes and inventory in place from the start is
crucial to the overall success of your Guaranteed Credit
Approval (GCA) Profit Center,” he says.
Ryan started by selecting the Right People with
the right attitude. “It’s important to build a team that
is positive and energetic, with an ear for listening,” he
says. “This approach has worked well for our customers
and has definitely helped our sales.” Ryan explains
that many of their customers have been denied
credit, ‘chased off’ other lots, laughed at or just plain
ignored. A happy, positive and helpful attitude goes
a long way toward building a relationship. “If you
have employees who are rude or condescending merely
because they believe the customer may not have the
means to purchase and are a waste of their time, the sale
is never going to happen! You can’t start any process
with that kind of an attitude,” Ryan concludes.
The Gosch Team (from left): Dennis, Ashley, Mike Gandy,
Tim Moran (General Manager), Mike Ryan (Director of Special
Finance), Billy, Nicholas, and Patrick.
Following the Right Process is just as crucial as
hiring the right people. Implementing a process
and educating your staff about the benefits of
adhering to it is absolutely critical. “Our process is
very conservative,” says Ryan. “We send all stipulations
to Credit Acceptance for approval before any vehicle
leaves the lot. Customers will work very hard to give
you everything before they take delivery. We have
found ‘chasing’ for stipulations after the sale ends in
a loss of profit and increases funding delays and poor
performance on payments. Collecting all stipulations at
closing stops any major funding delays, helps eliminate
fraud, and keeps the process smooth and efficient,”
explains Ryan.
Ryan also believes following the sales process,
and especially giving everyone an ‘Approval’
(Congratulations Sheet) to take home, promotes a
positive image of their dealership to their customers
and in their community at large. “Customers love to
see the Approval Sheet,” he says. “It distinguishes us as a
dealer who can help while other dealers usually just say,
‘Sorry we can’t help you’ or ‘Come back when you have
more money’!”
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Gosch Ford Lincoln Mercury
Ryan believes that following the right processes
positively impacts their dealer rating, initial funding
advance, and collection rate. Every team member
recognizes that their long-term goal is to build a
customer for life, so they stress the importance of ontime payments and the opportunity to improve their
credit. They maintain contact with their customers
after the sale and have many repeat customers, for
both pre-owned and new vehicles the next time
around.
Lastly, the Right Inventory is also vital to the success
of the Credit Acceptance program in any dealership.
A diverse inventory with various price points
following the Credit Acceptance guidelines will help
ensure there is a vehicle for everyone on your lot.
Gosch has created its own Credit Acceptance
service drive to re-condition and service all Credit
Acceptance inventory - pre and post-sale. They
Continued from Page 1
believe having their own service technicians allows
them to do ‘Good Will Repairs,’ when needed, that
may not be covered by a Service Contract. Their
long-term outlook has taught them that keeping
their customers in their vehicles will pay off – both in
continued retail installment contract payments and in
repeat business.
The attention to Organizational Design (People,
Processes and Inventory) has paid off for Gosch Ford
Lincoln Mercury. Through the help and support of
the management team, including Tim Moran (General
Manager), Marc Gosch and Eric Gosch, the dealership
has created a well-organized, successful Credit
Acceptance Profit Center with consistent doubledigit incremental sales. Ryan concludes, “Before
Credit Acceptance, we used to say ‘No’ to customers and
wholesale the cars we could not sell. Now we say ‘Yes’
and we turn our wholesale losses into retail gains!”
Organizational Design
Minimize Your Growing Pains and Maximize Your Success
By: Steve Rinas, Director of Sales
T
o maximize your success with the Credit Acceptance program, we recommend our dealers work with
their Market Area Manager (MAM) to put the right people in place, and use time-tested processes to
acquire and sell the right inventory. Building a Credit Acceptance Profit Center and realizing your goals
almost certainly cannot be achieved unless you understand and execute these critical Organizational Design
elements: Right People, Right Processes, and Right Inventory.
We have all heard the old excuse, “We are just having some growing pains,” - and most of us have even
said it a time or two. The positive side of ‘growing pains’ is that you can’t experience them unless you are
growing, and you can’t make more money without increasing sales. The good news is that they can be
mitigated with a bit of planning and attention to your Organizational Design.
In the automotive industry we tend to think of ourselves as quick to react, innovative and ahead of the curve.
As a result, many dealers tend to be overly aggressive in their quest to increase profits and fail to develop a
comprehensive plan that could make all the difference to their bottom line.
A new Credit Acceptance Profit Center is almost like setting up a new dealership location, but on a smaller
scale. The more time you spend initially planning and preparing for success, the more likely you are to achieve
it. Like a new location, you should first establish what you want your business model to look like, including
your profit goals.
The Credit Report
July 2012
Page 2
Organizational Design
Continued from Page 2
After defining your goals, you have to determine the number of team members required, and hire and train
the Right People to support your expected volume. In addition to hiring the right people, you need to
reward them in a manner that aligns them with your goals (through pay plans), and give them the tools they
will need to accomplish the tasks you expect them to carry out – including technology (the hardware and
software you will need).
The Right Processes are also a key element to the success of any business, including your Credit Acceptance
Profit Center. The processes you put in place should be documented and all team members should be trained
on those that apply to them. These include everything from inventory acquisition and merchandising to
making a sale and completing all the documents necessary for delivery and funding. They should also include
customer follow-up and service. It can seem daunting, but your MAM can guide you through defining and
setting these processes up in your dealership, and training courses are available both at Credit Acceptance
University and online to help you understand and implement them in your dealership.
We separate the Right Inventory as its own Organizational Design category because it is so critical to your
business and success. Without it, you would have no product to sell and subsequently no profits. Acquiring
the right inventory and correctly pricing and merchandising it are all crucial to your success.
The fact is that even though your basic business model can be explained in five minutes, running a successful
profit center of any kind takes planning and diligent attention to consistent execution. Your Market Area
Manager has the experience and tools to help you develop a business plan to meet your needs and reduce
your ‘growing pains’ …and the costs that can go with them. The time you take to develop a solid plan will pay
for itself many times over.
Congratulations!
June 2012
Dealer-Partner Portfolio Profit Milestones
Dealership Name
Total Portfolio Profit
“My total experience from the dealership to Credit
Acceptance's customer service was great. The
process of purchasing a car was easier than getting
a credit card! I am thankful that the dealership
displayed Credit Acceptance's Guaranteed Credit
Approval banners on their lot to let me know being
approved was obtainable. My new car means good
transportation to work and daily traveling. I can't
thank them enough!”
- Elizabeth (Hattiesburg, MS)
Bill Vogel’s Cars, Inc.
Elite Car Company, Inc.
Southfield Quality Cars, Inc.
Loehmann-Blasius Chevrolet, Inc.
Joe Ricci Auto Center
Your Choice Auto LLC
Crowley Ford LLC
Eastern of Woodbridge
South Chicago Dodge Chrysler Jeep, Inc.
Matthews Motors, Inc.
Fresh Start Used Cars LLC
Boss Motor Company, LLC
Kernersville Chrysler Dodge, LLC
Strickland Chevrolet, Inc.
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,515,063
2,033,565
2,013,855
2,004,113
2,002,060
1,506,253
1,505,346
1,502,224
1,005,606
526,027
508,630
505,941
505,445
503,119
* Total Portfolio Profit includes Portfolio Profit Express plus Portfolio Profit.
Milestones are recognized in $500,000 increments each month.
The Credit Report
July 2012
Page 3
Monthly Performance
Portfolio Profit Paid
- June 2012
National Accounts - Volume (Top 5)
Portfolio Profit Paid
Portfolio Profit Express Paid
Total Portfolio Profit Paid
Penske Automotive Group, Inc.
Ancira Enterprises
Holler Automotive Group
Jeff Wyler Automotive Family, Inc.
Serra Automotive Group
$ 8,377,607
2,926,137
$11,303,744
Top 25 Volume*
88
49
44
37
36
Top 25 Auto Pay**
Dealer-Partner
Atlas Automotive
Car Source
Car Zone
Carcreditmd.Com
Lostboyz Unlimited LLC
Kingston Nissan
Aunt Bessie’s Family Car Mart
Barnes Crossing Hyundai / Mazda
D&A Guaranteed Auto Sales, Inc.
Gosset Kia
Blue Ridge Motors
Mt Moriah Auto Sales, Inc.
E-Z Car Credit, Inc.
Zimmerman Motor Cars, LLC
Joseph Sage Auto Sales, Inc.
Auto Finance Center, Inc.
Cities Auto and Finance, Inc.
Valentine Motor Co.
Texas Certified Motors
Jeff Schmitt Chevrolet Ltd
Tommy’s Quality Used Cars
McCluskey Chevrolet, Inc.
Car City of Danbury LLC
Roger Holler Chevrolet Company
Serra Toyota
Melrose Park Auto Mall, Inc.
EAS Finance LLC
Strait-A-Way Auto & Finance
Contracts State
50AZ
47MI
46DE
43AL
42NY
40NY
40PA
40MS
39NY
38TN
36PA
36TN
35FL
34AR
34NY
34MT
34MN
33MD
33TX
33OH
32KY
31OH
31CT
30FL
30AL
30IL
30MS
30MI
* Must be above national average in volume produced.
** Volume of 18 contracts or more per month to qualify.
Dealer-Partner
Insiders Auto Sales
Auto Sales Outlet, Inc.
Barnes Crossing Hyundai / Mazda
Foreign Auto Imports LLC
Pine Belt Enterprises, Inc.
New Castle Motors
Evia Auto Sales, Inc.
Strait-A-Way Auto & Finance
Payday Motor Sales
U-Turn Auto
Royer’s 322 Motors
Car Zone
Blue Ridge Motors
Sina Auto Sales, Inc.
Premier Auto Center
Magic City Motorcars, Inc.
On Trac Auto Sales
Wyoming Auto Group LLC
A1 Motors LLC
Park Auto Mall
CJ’s Car America
Auto Express
Matthews Motors, Inc.
Adam’s Auto Group, Inc.
Goldstar Motor Company
Ashby’s Pre Owned Auto, Inc.
Contracts Auto Pay %
29100.0%
21100.0%
4097.5%
2195.2%
2095.0%
1994.7%
2993.1%
3090.0%
2090.0%
2090.0%
2090.0%
4689.1%
3688.9%
2785.2%
2684.6%
1984.2%
1984.2%
2483.3%
2181.0%
2080.0%
1978.9%
2878.6%
2378.3%
2378.3%
2277.3%
2277.3%
District Volume Leaders
District/ Dealer-Partner
Contracts
District/ Dealer-Partner
Carolinas
Matthews Motors, Inc.
Lexington Automotive & Truck Outlet, Inc.
Boss Motor Company, Inc.
New England
23 Lostboyz Unlimited LLC
22 Kingston Nissan
17 Car City of Danbury LLC
Central
Tommy’s Quality Used Cars
Best Buy Motors
Mattoon Motor Mall, Inc.
Andy Mohr Auto Center LLC
M.T.S. Auto Mall, Inc.
32
20
18
18
18
Great Lakes
Car Source
Strait-A-Way Auto & Finance
Chuck Saad’s On 3 Go Auto Sales
Mid-Atlantic
Car Zone
Valentine Motor Co.
Insiders Auto Sales
Midwest
Cities Auto and Finance, Inc.
Melrose Park Auto Mall, Inc.
Winners Circle Auto Center
Northeast
D&A Guaranteed Auto Sales, Inc.
VIP Auto Outlet, Inc.
Adam’s Auto Group, Inc.
Contracts
District/ Dealer-Partner
Ohio Valley
42 Jeff Schmitt Chevrolet Ltd
40 McCluskey Chevrolet, Inc.
31 Taylor Kia
South
39 Barnes Crossing Hyundai / Mazda
23 Gosset Kia
23 Mt Moriah Auto Sales, Inc.
Northern California / Hawaii
No Credit Check Auto Sales
20
R & R Sales, Inc.
12
47 Auction Direct Auto Sales
10
30 Automotion10
28
Northern Texas
Texas Certified Motors
33
46 Blue Ribbon Chrysler Dodge Jeep, Inc.
18
33 Performance Motors of Amarillo
16
29
Northwest
Auto Finance Center, Inc.
34
34 Wyoming Auto Group LLC
24
30 Guaranteed Credit Approval of Kalispell
12
22 Budget Auto Sales II
12
Quality Auto LLC
12
South Central Florida
E-Z Car Credit, Inc.
Roger Holler Chevrolet Company
Payday Motor Sales
Park Auto Mall
Contracts
District/ Dealer-Partner
Southern Texas
33 Maroney Auto Sales
31 Frank Smith Toyota
25 Ancira Kia
Fairway Auto Company
Ancira Winton Chevrolet, Inc.
40
38 Southwest
36 Atlas Automotive
Premier Auto Center
Mile High Car Company
35
30 Tennessee Valley
20 Automax USA, Inc.
20 Auto Gallery, Inc.
Mitch Simpson Motors
Contracts
22
21
20
20
20
50
26
25
27
19
18
Southeast
Carcreditmd.Com43 Western New York / Pennsylvania
Serra Toyota
30 Aunt Bessie’s Family Car Mart
40
Autoprofessional 2, Inc.
26 Blue Ridge Motors
36
Joseph Sage Auto Sales, Inc.
34
Southern California
Road Motors
23
L.A. Motors, Inc.
22
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