Stop Running from Technology

While training and developing special finance departments in dealerships, I have heard every excuse in the world as to why dealers do not need a particular type of software or technology.

I hear justifications like:
• “I have those five cars I sell from, and I know what their book values are.” You never buy anything different?
• “I know all of my inventory in my head.” You might think you do, but it is extremely unlikely that you can recall all of your inventory cost and book values from memory along with the finance company’s program that it matches the best.
• “I can do it faster in my head.” The brain is a wonderful thing, but it cannot work faster than a computer and analyze multiple scenarios at the same time.

ENOUGH! I equate this thought process to the grumbling that occurred when dot matrix printers and software to print our contracts arrived on the scene. Yes, I remember when we had to handwrite contracts, vehicle title work, odometer statements, buyer’s orders and insurance forms. Many dealers were resistant to change, offering a variety of excuses for not updating their process. Prior to that innovation, delivering 20 units would take a couple of days of handwriting. Aren’t you thankful now, that you don’t have to do that anymore? So, if you’re still desking deals by hand (or head), you’re creating more work than necessary. Embrace technology; you’ll have more time to sell vehicles and generate more profit.

I can’t blame this entirely on the dealer. Years ago, the dealer I worked for purchased software that was, according to the software salesman, supposed to “replace me”, the special finance manager. The bank parameters were programmed into the software and, after downloading the inventory, it would do the job of the special finance person—thus eliminating my wages. Pretty cheap replacement, huh?

After several frustrating phone calls to the software company, I gave up using this new “brain child” and worked my deals by hand—deals that never would have been delivered if I had relied solely on the software. I permanently lost my faith in this new tool, after delivering customers, with a gross profit of $3500, that the software program would have denied.

Remember, most things in this business are not black and white; there is plenty of gray in financing. We get deals bought daily that banks or their systems say we can’t, so computers and software programs cannot mimic our thought process or replace us. They can, however, be great tools. We can utilize them to make calculations faster than the speed of light.

By making our living in the “gray area”, we learn to ask for more than the banks’ published guidelines allow. We ask for an advance of 125-percent, when the published amount is 115-percent. We ask for 72 months, when the published term is 60. Basically, we are always asking for exceptions to the banks’ published guidelines. Due to this fact, it is necessary to have software that is flexible, and allows the user to work a deal in any fashion required to sell that next vehicle.

The deal structure is key. The ability to adjust parameters such as a bank fee, or other bank parameters like term, is essential. You will want to be able to sort by days in stock, by payment, by front profit and total profit, by make and by model. The ability to do like invoice calculations is also a plus. Choose software that allows for exceptions, then watch it make you money in increased grosses and more deals delivered.

The key to selecting desking software is to find one that is straightforward, allows you to ignore most of the bank parameters when you need to, and is flexible when working a deal on loan to values, interest rates and bank fees. If you use software that works in the “real world”, that allows for “gray area” negotiation, you will never desk a deal by hand again. Don’t choose one just because it integrates all of your software. It boils down to functionality—not flashy bells and whistles. Don’t fall for glitz and filler add-on’s to your desking software. Instead, make sure you can desk a deal quickly and efficiently. You shouldn’t have to sacrifice functionality for any product.

Good desking software that creates maximum flexibility and maximum profitability is tough to locate, but it is out there. Find it and embrace it!