F&I and Showroom, June 2019

www fi magazine com 10 F I and Showroom June 2019 DEVELOPMENTS BROWN BROWN ACQUIRES UDS B rown Brown of Kentucky Inc has acquired substantially all of the assets of United Development Systems Inc Since its founding by Crisorio in 1982 UDS has been a leader in the F I performance and compliance management segment particularly among auto dealers in Florida and the Southeast Crisorio and the UDS team have earned perennial recognition from the F I industry including a record long stretch of top honors in the F I Training category in the annual Dealers Choice Awards The UDS team which includes vice presidents Jeff Crisorio and Brian Crisorio will become part of Brown Brown Dealer Services DOWC PARTNERS WITH ALLSTATE DS D ealer Owned Warranty Company a national provider and administrator of F I products and services has partnered with the Allstate Corporation In a statement Michael LaMotta a sales and training executive with DOWC noted that effective for the 2018 tax year the Federal Tax Cuts and Jobs Act has many car dealers looking to transition to the domestic C corporation structure of a dealer owned warranty company and away from the uncertain future tax implications of operating as a foreign corporation LaMotta added that DOWCs unique expertise in this area paired with the financial strength of Allstate offers dealers an exciting new opportunity SALES DOWN 23 IN APRIL U S dealers sold 1328649 new cars and light trucks in April a 23 year over year decline and a full 3 loss to start the year compared with the first four months of 2018 according to reports and estimates compiled by Automotive News The unexpectedly slow start to 2019 knocked the seasonally adjusted annualized selling rate down to 164 million Thats the lowest SAAR since February 2014 and a weak start to the traditionally reliable spring sales season Experts blamed escalating prices higher interest rates and rapidly declining interest in cars which were down 79 year over year TESLA DRIVERS HAVE BEST CREDIT L ending Tree released a study ranking car brands by their buyers average credit score The study which was based on an analysis of more than 35000 used auto loans found luxury marques occupied each of the top three spots Tesla buyers scored highest with an average of 740 followed by Porsche 727 and Lexus 699 Chrysler buyers have the lowest scores with an average of 656 analysts noted this still falls in the fair range Its also right around the average credit score for all used car purchases For most automotive brands a credit score in the good range 670 739 was enough to be approved for an auto loan Of the 30 different makes analyzed 22 had an average approved credit score fall into that range The analysis excluded makes that failed to register enough purchases to create reliable estimates LITHIA BUYS UNDERPERFORMING NJ HONDA STORE L ithia Motors Inc the nations third largest auto group announced the acquisition of Hamilton Honda of Hamilton Township N J The store ranks 23rd among Honda dealerships nationwide and No 8 in the New York metropolitan area generating 160 million in revenue in 2018 In a statement Lithias directors said the acquisition fits the groups strategy of buying high volume stores they believe are underperforming The store was owned by Michael Saporito and Jessie Armstead a former NFL linebacker partners in a group that once included eight dealerships but has now dwindled to two Five of the groups Michigan and Pennsylvania stores were sued by Nissan Motor Acceptance Corp and Hyundai Capital America last year The captives alleged the dealerships had sold hundreds of vehicles out of trust Saporito is expected to remain as dealer principal NEW CAR PRICES HIT NEW HIGH R ising prices and tightened credit conditions continued to place pressure on the newvehicle market in April according to Edmunds The average price of a new car reached 36718 the highest level seen so far in 2019 April also marked the fourth straight month that interest rates hovered above 6 The APR on financed new vehicles was 63 compared with 56 last year and 44 five years ago Zero percent finance offers continued to be tough to come by in April constituting only 32 of financed transactions in 2019 compared to 76 in 2018 and 74 five years ago 100 DEALERS AND GMS TO ATTEND INDUSTRY SUMMIT FOR FREE O rganizers of the annual Industry Summit announced the first 100 auto dealers and dealership general managers who register online will receive their full show pass for no charge The event is scheduled for Nov 4 6 2019 at the New Orleans Marriott with registration expected to open in mid June Show chair David Gesualdo said the move is generating buzz around the event which began as the F I Conference in 2004 and has grown to offer compliance training and certification reinsurance and new and emerging dealer technology among other tracks in addition to its core F I training slate We thought the move to New Orleans would be the big news but the feedback on dealer attendance has been even stronger said Gesualdo publisher of the Bobit Business Media group of dealer magazines which includes F I and Showroom and Auto Dealer Today We were excited to make the offer and we look forward to seeing everyone in November The first 100 dealers and GMs who register for Industry Summit 2019 will attend for free The event will be held Nov 4 6 at the New Orleans Marriott PHOTO BY PDPHOTOS VIA PIXABAY