October BHPH conference set for Las Vegas

Operators can get some treats ahead of Halloween as the biggest buy-here, pay-here specific event of the year is headed back to Las Vegas.

The NABD Buy-Here, Pay-Here Subprime Conference, powered by the National Independent Automobile Dealers Association, is set for Oct. 8-10 at the MGM Grand in Las Vegas, offering the industry’s best BHPH-specific training for both new operators and BHPH veterans.

The conference features education from the BHPH experts at the National Alliance of Buy-Here, Pay-Here Dealers and NIADA, including Ken Shilson, Ingram Walters and Chuck Bonanno, as well as top names from the subprime sphere.

Attendees will learn about new industry technology, the latest marketing strategies including digital marketing, collections and underwriting, and best practices that work today – and in the future.

There are also opportunities to network with industry experts, explore ways to secure capital to fund your operation, get updates on compliance and legal issues, and check out an exhibit hall filled with the latest products and services to improve any BHPH business.

“NABD continues, bigger and better than ever,” said Shilson, NABD president and founder. “You can't afford to miss this event. Opportunity knocks for BHPH operators who capitalize on it — and this conference will show you how to do it.”

The discounted early registration rate of $495 per person applies through Sept. 22. Group discounts are also available.

For more information or to register, visit or call (832) 767-4759.

Spireon receives eighth award in last 13 months

Spireon has claimed another accolade for its mantle.

The GPS provider recently was named the IoT Vehicle Telematics Company of the Year in the 2018 Compass Intelligence awards. Voted on by a judging panel of more than 40 industry-leading journalists, editors and analysts covering technology and the IoT, mobile devices and software sectors, Spireon was chosen for its continued innovation in aftermarket telematics, strong market traction and exceptional customer service metrics. 

This is the eighth award earned by Spireon in the past 13 months, including four awards for customer service, and a Silver Stevie award for New Product of the Year from the American Business Awards for the company’s NSpire platform.

Spireon was also named IoT Vehicle Telematics Company of the Year by Compass Intelligence in its 2016 awards program.

“Our team has worked tirelessly to continue delivering the most advanced vehicle intelligence solutions our customers need to make critical business decisions,” said Kevin Weiss, chief executive officer of Spireon.

“The introduction of our NSpire 3.0 platform and the numerous new products and enhancements we brought to market in 2017 are direct results of the passion, commitment and expertise of our people. It’s an honor to be recognized once again by Compass Intelligence, and to add this coveted award to our list of achievements over the past year,” Weiss continued.

Spireon’s NSpire cloud-based IoT platform powers all of the company’s solutions across all markets served, including GoldStar, Kahu, FleetLocate and the FleetLocate Connected by OnStar solution, developed in partnership with General Motors.

In 2017, the company introduced NSpire version 3.0, adding enhancements that dramatically increased scalability, type and volume of data collected, interoperability via open application programming interfaces (APIs) and mobility support. New micro-services were also added to accelerate development and go-to-market velocity across the company’s software applications. As a result, Spireon was able to deliver more new products to market in 2017 than any other year in its history, including six major software applications, five new hardware devices and five new mobile apps.

As a result of technology innovation and outstanding customer service, Spireon achieved significant market traction.

Following the introduction of Kahu in 2017, Spireon increased its device shipment to franchise dealers by 144 percent in the second half of 2017 over the same period in 2016. The company partnered with four of the top 10 dealer groups in the country and added 47 new dealerships that preload their full inventory of vehicles with Kahu to its customer list in 2017.

Furthermore, Spireon added 1,858 new fleet and trailer customers to its roster and grew FleetLocate device shipments to SMB customers by 120 percent compared to 2016.

“Spireon continues to excel, innovate and advance in the IoT industry. Congratulations to Spireon for leading and innovating in this very competitive market,” said Stephanie Atkinson, chief executive officer of Compass Intelligence.

Latest Procon Analytics tool can centrally manage all GPS devices to enhance risk mitigation

Auto finance companies and buy-here, pay-here dealers are seeking to adopt more advanced and scalable GPS systems for risk mitigation. But Procon Analytics acknowledged this trend brings the inefficient process of managing both new GPS systems old devices that use legacy embedded technology.

On Tuesday, Advantage GPS, a Procon Analytics company that can capture and translate raw data into actionable business intelligence, introduced its latest platform addition, a patent-pending All Access feature, that is designed to eliminate this issue.

The company explained All Access can allow auto finance companies and BHPH operators to view and access all GPS devices in their business portfolio via the Advantage GPS application, regardless of the GPS system provider.

Currently, Procon Analytics pointed out that it can be cumbersome for dealers and finance companies to manage devices from two or more GPS providers. While trying to avoid the hassle of learning yet another system or remembering more passwords, Procon Analytics noted that many operations remain tethered to old GPS providers who are no longer innovating and continue to use outdated technology riddled with issues.

The new patent-pending All Access feature by Advantage GPS is geared to overcome these barriers to advancement. All Access can allow auto finance companies and BHPH dealers to embrace their GPS system of choice by helping them seamlessly manage all of the GPS devices across multiple providers in their risk mitigation portfolio.

And, operations now have more flexibility, more convenience and more control over their device management process, according to David Meyer, chief operating officer of Procon Analytics.

“In a world of multiple apps and passwords, our new patent-pending All Access feature brings unprecedented convenience to customers using GPS tracking technology to manage their highrisk auto loans,” Meyer said.

“All Access allows customers to take advantage of the latest innovations available in our proprietary artificial intelligence-infused dashboard and 4G LTE platform, while simultaneously managing their entire device portfolio — regardless of brand,” he continued. “There’s only one destination for auto lenders to remember now when managing risks. It’s Advantage GPS.”

With patent-pending All Access, auto finance companies and dealerships can view vital information for all GPS provider accounts, including borrower name, address, year, make and model of vehicle purchased, VIN and serial number of devices.

All Access also can allow operations to seamlessly navigate into any vehicle record, on the fly, from the Advantage GPS application view.

“This latest feature, just like everything else we do, is about listening to customers and being nimble to solve their problems with our scalable platform that is not limited or stagnated by old technology,” Meyer said.

“Innovation and service is what customers get when they partner with Procon Analytics, the innovators in automotive telematics,” he went on to say.

Serving nearly 500 auto finance companies with more than 300,000 connections, the intelligent Advantage GPS platform utilizes innovative, connected and AI-infused technology to deliver real-time analytics upon login and the latest All Access feature.

“Advantage GPS is constantly evolving based on the automotive finance industry’s needs, technological advances, and economic drivers and legislative trends,” the company said.

More details can be found at .

PassTime highlights LTE Category M GPS device

If lately you’ve noticed faster performance by your smartphone on Verizon’s mobile network, you might also be encouraged if your collateral is monitored by PassTime.

GPS solutions provider PassTime recently highlighted its all-new TRAX 6 device, what the company said is the industry’s first LTE Category M GPS tracking device serving franchised, independent and buy-here, pay-here dealers, finance companies, and fleet and powersports dealers.  

PassTime explained the TRAX 6 — certified on Verizon Wireless — features LTE Cat M (category M) technology that boasts extremely low power consumption from the device as well as network longevity in using some of the newest network technology available. These enhancements will complement the robust feature set already available on TRAX, according to PassTime president and chief operating officer Chris Macheca.

“I am excited to bring another cutting-edge product to the market,” Macheca said. “PassTime continues to shatter expectations in terms of innovation with TRAX 6, the industry’s first LTE Cat M GPS device.”

PassTime, which has been in business for more than 25 years, provides GPS Solutions for customers to connect their vehicles and protect their assets.

The company said TRAX 6 is currently in production and will be commercially available soon.

For more information, PassTime at (877) 727-7846 or [email protected]

3 advantages of automated billing within BHPH

There is, perhaps, no better illustration of the “with great risk, comes great reward” concept than buy-here, pay-here.

However, the advent of automated billing systems has decreased the risks associated with this market while improving cash flow and profits for these dealerships. In short, these systems offer a disciplined approach to billing and collections, tasks that are needed in a sector that lacks sophisticated practices.

First some history. This subprime financing practice took hold in the 1980s in response to the savings and loan crisis and strengthened in 2005 through 2008 with the financial crisis.

This volatile sector has reflected a roller-coaster ride in recent years. In the first quarter of 2011, BHPH dealers held a total of 9.5-percent market share of all used-car financing in the United States. It then dropped to 6.2 percent in late 2015 as traditional finance companies dabbled in this risky market, according to Experian Automotive. This significantly decreased a large revenue stream for used-car dealers since these loan portfolios were a large profit center.

As the economy has improved, traditional financial institutions   have shied away from subprime loans, and now BHPH dealerships have re-gained their position to nearly 12 percent of the total share of used car financing in the United States. This is good news for the dealers who in recent years have seen growth in their loan portfolios.

But with this growth must come more efficient portfolio management through a decrease in default buyers. Many dealers are finding solutions through automated billing systems.  The results are clear:  a reduced number of delinquent payments, with more loans going to term and fewer repossessions, makes for a much more valuable portfolio. 

In an industry that is accustomed to delinquencies, every healthy account contributes to the bottom line. Many independent dealers are increasingly using these systems to automate tasks related to billing and accounts receivable. Once implemented these programs free up finance departments of the tedious and frustrating tasks of collecting outstanding bills and invoices from a distressed demographic whose bank accounts are traditionally oversubscribed.

In this risky sector, the vendors that are the easiest to pay, traditionally get paid first.  Many subprime lenders require customers to mail payments or bring cash or money orders to the dealership. For many, some who typically work multiple jobs, this is too cumbersome.

One of the biggest benefits of automated payment systems is that it enables the borrower to make a payment in a time and method that is most convenient for them, not the dealer. 

Let’s take a look at some of the advantages:

1. Invoices are presented on a timely, professional basis.  There are instructions with how to pay with one click or text, and clear explanations of due dates and penalties (late fees, repossession, etc.) for late payments.

2. These systems can also be programmed to address past-due accounts and delinquencies with customized texts, emails, and phone calls reminding owners of past due amounts and providing a one click or text solution to make an immediate payment. 

3. A major benefit is that these automated payment systems offer a variety of payment methods to make it easy and convenient for the car owner such as credit and debit cards, electronic checks and ACH, and even cash payments. They can also enable automatic billing to a designated account on specific dates or custom schedules to eliminate delinquencies altogether.

Another advantage is that these systems take all of the guesswork out of who paid and who didn’t since they keep accurate logs of each buyer’s payment history.

Consider other advantages:

• Seamless integration with popular DMS, LOS and other accounting systems

• Variety of convenient payment options including credit, debit, ACH and cash

• Payments can be made over the phone, online, via SMS or mobile app, or in person

• Clients can securely pay with one click or text

• Having an automated billing system allows BHPH operators to sell their portfolios at a higher value since lenders that would acquire the portfolio perceive customers that are on self/auto pay as more valuable. Having more data on payment trends and demonstrating preferred communication method also increases value to portfolio buyers.

Independent used car dealers have a unique opportunity as traditional institutions move away from financing purchases by those with poor credit scores. This is a lucrative source of revenue for the BHPH dealerships which have a window to maximize portfolio performance by using sophisticated billing and collections processes offered by these automated systems.

Thomas Aronica is founder and chief executive officer of Miami-based SkyBank Financial (), a full-service merchant services company providing a wide range of payment solutions. He is also the founder of Biller Genie (), an automated billing system that specializes in helping independent dealerships manage their accounts receivable.

First-time attendees rave about NABD’s fall event

Ken Shilson, president of the National Alliance of Buy-Here, Pay-Here Dealers, reported that more than 50 percent of the surveyed attendees who came to the recent Fall BHPH Conference had never been to an NABD event previously.

Evidently, those operators left Orlando, Fla., as quite satisfied customers.

“Attendee evaluations unanimously indicated that the program will help them succeed in 2018 and beyond,” Shilson said. “Our speakers and sponsors did an outstanding job and made the event one of the most popular conferences in our 20-year history.”

At least one of those attendees appears to be ready to come to future NABD conferences, as well.

“It was great. I found out I’ve been operating in the dark for a few years now. I will never miss it anymore,” said Ivan Tello of Irotema Holdings in Land O’Lakes, Fla.

Vincent Lewis of Crown Auto Sales & Finance of Charlotte, N.C., added, “The NABD Conference organizers truly understand the needs of the dealers. The BHPH business is a very diverse business.”

The three-day event with the theme, “Opportunity Knocks – Best Ways to Respond,” began with a session orchestrated by Shilson and NABD’s Ingram Walters that also featured BHPH Hall of Fame inductions of Rick Potter and Stan Schwarz, who made life-long contributions to the BHPH industry and were inducted posthumously.

The conference included 14 different concurrent workshop Sessions covering inventory acquisition and financing, national reconditioning survey results, ways to increase sales, F&I products for success, GPS collection tools, DMS software solutions, capital acquisition, integrated technology solutions, regulatory protection by state dealer associations, an accounting/tax update, maximizing recoveries, best underwriting practices and collection “hot spots” to avoid.

All these workshops were interactive so attendees could ask questions and get answers on these important topics.

“Great training. I came last year, and it is one of the best, more educational conferences I have attended,” said Kim Frederick of Motory Group in Gainesville, Fla.

“Don’t be good, be better. The NABD will help you and your business be better," said Irma Gamboa of Fresh Start Finance in El Paso, Texas.

Thomas Rainey, of McNair McLemore, Middlebrooks & Co., in Macon, Ga., added, “Very educational and informative. Learned a lot and realized there is a lot I need to learn.”

The event also featured a “first timer” reception with more than 150 attendees.

Another highlight was the charity auction of a customized golf cart donated by Manheim. The proceeds from the auction went to the hurricane relief fund established by the National Independent Automobile Dealers Association and the Texas Independent Automobile Dealers Association for the benefit of victims of these recent natural disasters.

NABD announced that a portion of the conference proceeds will be donated to the relief fund, too.

“The NABD Orlando conference continues to bring important information and training to the buy-here pay-here dealer attendees. As the industry continues to mature, the relationship between vendors and dealers becomes more critical. Thanks to NABD and NIADA for making conferences like this possible,” said Bill Murphy of Collateral Protection Insurance and Associates of Huntsville, Texas.

Conference presentations, photos and more are now available on NABD’s website at .

Advice for identifying risk as you build your portfolio

In the current issue of BHPH Report, we discussed what we classified as the “eight risk questions that might keep you up at night.” We spelled out each of .

Well, now let’s try to provide you some answers to those difficult questions so you can rest better. Let’s begin with how can we better identify risk as a buy-here, pay-here dealership?

Every approval model has, as a way of disclaimer, an accuracy percentage attached to it. The likelihood of someone going bad is known before approval, depending on which segment of the approval model they belong. If one decides to dip into the fifth decile of an approval model, which has 35 percent bad rate, versus only the second decile, which has only 10 percent expected bads, they will have also done the profiling to differentiate the bads in the fifth decile.

Therefore, if operators accept them into their books, the dealerships also have to be ready to manage them so that they can act as soon as the account starts to show signs of future misbehavior. This is a passive strategy.

An active strategy goes even further as to “shape” or train the right behaviors of those likely to be bad. Usually, this is the perfect hand off of the accounts from the approval model to the portfolio management models.

Once approved, knowing which accounts under management would most likely go “bad” is critical to managing the good. Early detection warrants immediate action.

What an advantage it would be to stand at the door of credit approval as hundreds of new accounts are scored and on-boarded.

As an account passes through various phases such as approval, activation and management, some go delinquent while others continue to repo or charge-off. From simply an origination score perspective, approvals have a known risk factor. Many origination scores predict the percentage of loss associated with a specific approval score band.

What we see however is fewer and fewer operators are assessing continued correlation between score bands and loss rates. Additionally, we also have to be prepared to ratchet up intensity levels of a work treatment strategy as accounts age based on its risk score.

Not only will we be able to assess portfolio quality this way but also a much more strategic approach to capacity and staffing.

Early risk modeling and performance scoring was a function of past historical payment experience, with some help from credit reporting data. Typically good data for new account approval but what we are talking to here is:

—Analyzing projected risk


—Course adjustments based on risk stratification.

Clustering known elements of risk attributes to deploy pre-established workflow strategies is critical to diverting known high loss potential accounts into unique queues so that they are worked with more efficiency, tracked by results and ultimately provide retrospective back as part of the risk artificial intelligence models.

Greg Shelton is president at Partners Consulting, a management consulting firm specializing in operational assessments, workflow reviews and strategic planning for management teams in the accounts receivable management industry. Maria Singson is president and chief executive officer of, which offers risk and marketing analytics to help companies target profitable segments mitigate risks. Shelton can be reached at (678) 575-1136 or [email protected] Singson can be reached at [email protected] or (908) 499-4037.

NABD’s plans are well in motion for fall conference

The industry just moved past Fourth of July, but the National Alliance of Buy-Here, Pay-Here Dealers (NABD) is already looking toward late October when the organization hosts its next BHPH Conference.

The 14th annual conference — which has the theme Opportunity Knocks – Best Ways to Respond — is set to begin on Oct. 23 at the Rosen Centre in Orlando, Fla.

NABD president and founder Ken Shilson said, “The last 24 months have been extremely challenging for BHPH operators, but better days are ahead.”

Shilson acknowledged that increased competition, higher operating and compliance costs, have combined to reduce profits and BHPH market share. However, he added that competition is declining and former BHPH customers will re-enter the finance market when they default on vehicles they bought from the competition.

This conference will address ways to regain market share, find capital, avoid compliance mistakes and reconnect with the best customers, as well as underwriting and collection best practices that work in the current environment.

The program begins on Oct. 23 with a first-timer reception at 1 p.m. and ends at noon on Oct. 25 to facilitate return travel. Featured speakers are set include:

—Richard Flint
—Steve Siebold
—DJ Harrington
—Ingram Walters

Shilson mentioned that more experts who will provide important tips and insights to help attendees succeed are being added to the conference program.

“Their messages will benefit attendees long after the conference ends,” said Shilson, who noted that NABD will post an agenda online at . More details also are available by calling (832) 767-4759.

The conference will feature an exhibit hall to facilitate networking between experts and attendees. Anyone interested in exhibiting should call (832) 767-4759, as exhibit sales are currently under way and exhibitor space is limited.

Rosen Centre is conveniently located just minutes from Orlando’s airport and was recently voted one of the 75 best meeting hotels in America. Recently renovated, it offers the ideal facilities for this conference.

NABD has negotiated discounted room rates of $179 per night, with no resort fees, to make it affordable for everyone. Conference registration discounts are also available for attendees who make their room reservations and register for the conference before Sept. 22.

Visit or call (832) 767-4759 to register or for more information.

New Nevada law greatly impacts GPS & starter interrupt usage

The industry put up a valiant effort to prevent it from happening, but a new law in Nevada goes into effect on Saturday that greatly impacts how buy-here, pay-here dealerships and other auto finance companies that dive deep into the subprime pool can use GPS and starter interrupt devices.

Along with not being able to activate the starter interrupt until the contract holder is more than 30 days past due, there are several other modifications to how dealers and finance companies can use these devices in Nevada thanks to the passage of SB 350, including:

• Get written consumer disclosure for using starter-interrupt devices.

• Give at least 48-hour actual notice of disablement.

• Provide two 24-hour overrides in event of emergency.

• Cannot charge for installation or use of starter-interrupt technology.

• Restrictions on device data collection and length of data retention.

• Requires certified device installers.

PassTime, Spireon, the National Independent Automobile Dealers Association and J.D. Byrider were among the organizations that pushed back against this legislation for nearly four years as the Legal Aid Center of Southern Nevada championed an effort that won the favor of both of Nevada’s lawmaking chambers as well as Gov. Brian Sandoval.

Depending on how the contract is structured, delinquencies and eventual defaults could spike in Nevada, which already ranked in the Top 10 nationally for 60-day delinquency. The latest data from Experian Automotive put Nevada’s 60-day delinquency rate at 0.73 percent in the first quarter.

The state’s 30-day delinquency rate also was among the nation’s highest at 2.10 percent, according to Experian.

And now dealerships and finance companies who have customers in Nevada cannot activate the device when someone slips a few days past due in an effort to engage with the customers to get them back on track. Corinne Kirkendall is involved with the Telematics Service Providers Association (TSPA) and also is vice president of compliance and public relations at PassTime.

“For a subprime customer that’s not on a 30-day cycle, if their payment schedule based on their job is weekly or biweekly, a consumer who gets 30 days behind, that could be four or five payments behind. A consumer who gets two payments behind typically can’t catch up. So to be four payments behind, it’s virtually impossible,” Kirkendall said during a phone interview with BHPH Report. “It doesn’t provide any cover for the consumer at all in trying to help them stay on track.”

In a message to BHPH Report, Spireon conveyed its reaction to the Nevada law going into effect.

“The use of starter interrupt devices (SIDs) and GPS devices has enabled dealers and lenders to extend credit to consumers who have difficulty obtaining credit, potentially enabling them to repair poor credit ratings,” said Reggie Ponsford, senior vice president of sales for Spireon’s automotive solutions group. “Generally, use of SIDs has been deemed a last step in the process of helping a consumer maintain their payments and stay in the vehicle. However, over the past several years, the industry has started to transition in the ways lenders are interacting with their customers in default, utilizing different forms of payment reminders, such as buzzers, mobile communications and more.

“While the restrictions on SID use will have some effect on a small percentage of dealers and consumers, the end goal of any legislation restricting the use of this technology should be to keep consumers in their vehicles. For years, BHPH industry has been moving toward stricter protocols that continue to enable positive interactions with the consumer. The aggressive nature of this bill toward the use of payment assurance technology may have the adverse effect of reducing credit available to those that are most in need of it,” Ponsford went on to say.

Kirkendall mentioned two other components of the new law that is likely to impact the device’s efficiency for dealers and finance companies.

First, the data that’s collected using the GPS component must be purged on a rolling 180-day timeframe.

“That’s a huge undertaking,” Kirkendall said. “It puts them at a disadvantage when they go to do the repossession. Now if it’s not within that 180 days, they can’t go back and use that data to try to secure the collateral. It really puts the creditor at a disadvantage.”

Furthermore, if a dealer or finance company activates the starter interrupt component, the new law stipulates the action is considered constructive repossession, so the move must be reported to a credit bureau. Kirkendall noted that Hudson’s Cook’s Nikki Munro has led an ongoing effort to argue against that condition since “the creditor doesn’t take any physical possession.”

Kirkendall added, “Now the use of that starter interrupt device is much less effective than it was before. It will push creditors to use just the GPS portion of the device.”

Making the case to lawmakers

Back on March 31, the industry offered one of its strongest arguments against Nevada SB 350. NIADA’s Shaun Petersen testified during a Senate hearing on the measure, along with Brent Newman, who spent more than 20 years at J.D. Byrider, including time as chief operating officer.

Also pleading the industry’s case were Milo Trevizo, director of finance at Chapman Auto Group Acceptance, and Jarl Kongsrud of Smart Auto, a buy-here, pay-here operation in business for more than 15 years.

“There are consumer benefits. Consumers often qualify for a better or more reliable vehicle through the use of the devices,” Petersen said according to the hearing minutes shared by the Nevada legislature. “Creditors are more comfortable with providing consumers greater purchasing power because the risk of being unable to recover collateral is diminished in the event of default.

“Less risk to the creditor often translates to lower interest rates, higher loan-to-value ratios and longer termed notes,” he continued. “After the transaction is consummated, consumers will realize benefits in the event of default that would not be present without the use of such devices. The devices open lines of communication between creditors and consumers. If the vehicle starter is rendered temporarily inoperable because of default, a consumer will often cure the default much quicker.

“Compared to the unavailability of the vehicle due to repossession, the consumer can be on the road much faster through the use of the device,” Petersen went on to say.

Later in the hearing, Newman came right to the point about what the law passage would mean.

“It would be a devastation and a deal breaker to our businesses. It would affect our ability to offer loans,” Newman said. “Las Vegas has a transient feel and the device allows us to do additional business and to provide a better vehicle for the consumer. A GPS device is not intrusive. We definitely disclose it to each of our consumers.

Without the GPS devices, we could go out of business. It is a part of our business and could be a difference in our margin,” he added.

Trevizo also emphasized that doing business without the device’s impact would be nearly impossible. The finance company began to use these devices in 2011, and during a five-year span,  Trevizo indicated CAG was able to provide vehicle installment contracts to 3,200 customers, an increase of more than 1,000 percent compared to the time before the provider used the technology.

“From our experience, the starter interrupt technology has enabled customers to obtain loans who would otherwise be unable to obtain financing,” Trevizo said. “We had been seeing vehicle repossessions in Nevada double, delinquencies triple and our loan volume reduced in the absence of starter interrupt technology.

“If the proposed legislation passes, we envision a sharp decrease in loans, leading to severe reduction in profitability. This will force CAG to cease conducting business in Nevada,” he continued during that March hearing. “This will mean customers of CAG may be left without an avenue to purchase a vehicle.”

And Kongsrud told lawmakers about how his dealership uses the devices.

“When we turn off a vehicle, it is the last resort,” Kongsrud said. “We try every means available to the customer. The GPS devices buzz the customers to notify them to us. We only turn vehicles off during business hours. The customer can us and resolve the issue during this time. We will then turn on the vehicle right away. We locate the vehicle prior to turning it off to know the vehicle is either at the customer’s home or employment. If the vehicle is at another location, we will not activate the device.”

Nonetheless, lawmakers passed the bill, and Sandoval declined to meet with TSPA, NIADA or any other industry representatives; the opposite of what unfolded in New Jersey where Gov. Chris Christie vetoed a similar piece of legislation earlier this year.

“Unlike the governor in New Jersey whose team sat down with us and talked about it, (Sandoval) wouldn’t give us that meeting,” Kirkendall said. “That really put us at a disadvantage in not being able to explain the position of the industry and how this would deeply impact the way they do business in order to extend credit to consumers.”

Now with SB 350 set to become the law in Nevada, the industry is left to wonder what happens next.

“I hope Nevada takes a real good look at this and realizes the repercussions of what’s happened with regard to the availability of credit to consumers,” Kirkendall said. “Maybe in a couple of years, they’ll go back and change this law and make it more consumer and business friendly. This law as it currently stands is just not a good practice in this space.”

Spireon's Ponsford added to the sentiment about the ramifications of the newest law on the Nevada books.

“The provisions of SB 350 in Nevada will lead companies to rethink their lending strategy to the buy-here, pay-here industry, and will also drive new technology initiatives to open other lines of communications for payment reminders and notice of default. Spireon and other tech companies already offer alternative solutions that are beneficial to both lender and borrower,” Ponsford said.

“Without the effective and consistent use of solutions that facilitate communication and compliance, some lenders will vacate the BHPH lending space due to their default rates and loss ratios, and the inability to manage losses,” he continued. “Further, unless the industry adopts mutually beneficial technologies and procedures for managing risk and delinquency, there is a strong possibility that we will see an increase in the number of repossessions in Nevada, which is the worst-case scenario for dealers, lenders and consumers.”

Attendees cheer NABD for latest conference

Stemming from some of the back organizers shared, the National Alliance of Buy-Here, Pay-Here Dealers completed its mission during the 19th annual National BHPH Conference last month in Las Vegas.

John Baughman of Lake Erie Auto Credit said, “I wanted to come away with at least one idea that would help our business. I got that times 10.”

Operators and experts from around the country as well as from international locations gathered to hear more than 65 speakers and panelists discuss “changes in the subprime auto finance market.”

The educational sessions featured 12 different workshops covering:

—Current industry developments
—Accounting/tax update
—Managing reconditioning costs
—Reducing losses and keeping customers paying
—Maximizing tax refunds
—Using the web and social media to gain market share
—Payment devices
—Integrated technology solutions
—DMS technology
—Inventory acquisition and financing.

All these sessions were interactive, so attendees could ask questions and get answers to all these important topics.

“Attendees indicated that the information covered in the workshops was invaluable,” conference chairman Ken Shilson said. “Networking between attendees and experts and their desire to seek out new products and services made the exhibitor sessions exceptional this year.”

Danny Strickland of Young’s Auto Center emphasized Shilson’s point, adding, “Great sessions. Great to meet and learn from another dealer, having questions answered.”

JE Everett of the Ray Skillman Auto Group echoed the sentiment, saying, “NABD consistently does things for our group. Reinforces what we are doing right/well. Reminds us what we need to remember. Ken gives us updates on legal issues.”

NABD also hosted a reception for more than 200 first-time conference attendees. One was Bentley Nolan.

“As a first timer, I found the conference to be very engaging. The broadness of topics covered was exceptional,” Nolan said.

For operators who missed the Las Vegas event, NABD indicated conference presentations have been posted on its website at for downloading free of charge. NABD’s new benchmarks and trends information is available at .

NABD announced that its next event will be a BHPH Conference in Orlando, Fla., at the Rosen Centre Hotel on Oct. 23-25. This facility is one of the 75 best meeting hotels in America, and NABD has arranged discounted room rates with no resort fees while supplies last. For more information, or to register for this upcoming conference, visit or call NABD headquarters at (832) 767-4759 while space is available.

And attendees highly recommend going to conferences orchestrated by NABD.

“It’s a great opportunity to get away from, yet focus, on your business,” said Mike Held of Koehne Car Credit.

And Greg Nippert of Freeland Chevrolet added, “New or old to BHPH, if you’re not attending or sending a key employee, you’re making a huge mistake.”