High Octane Blog

Trust = Transparency

Posted on | by Tom Hampton Agency

Trust, or lack thereof, has been the largest stumbling block our industry has ever faced! Every bit of that mistrust was driven by the almighty dollar and the belief that WE, the dealer, knows better what is best to meet the needs of our client and our business. Those days died in 1995, yet for some reason, the car industry was never fully able to wipe the stain from our reputation. My desire to see our industry prosper at levels we never could have dreamed of is what drives me to shout these convictions from every rooftop!

 

Transparency is the most vital part or regaining trust from the community. Listed on your website, should be your entire purchasing process – beginning with financial qualifications and an application. Like I mentioned last month, I believe the future of Used Car Purchases is going to be recreated in the Home Buying image; Customers will be preapproved and have a verified purchasing amount prior to beginning the buying processes. It makes so much sense in our industry. How many times have you wasted hours going from one car to another with a customer only to find out their credit is shot, and their down payment doesn’t exist? A preapproved amount ensures that both you and your customers don’t waste each other’s time. We deserve transparency from our customers as well.

 

Make sure your website includes resources your prospective customer can use to make an informed decision about whether they want to put in an application or not. This should include information for all customer types, including Credit Challenged, New Credit, Average to Good Credit, and Great Credit. Keep a printable checklist of all the required documentation necessary and require it be uploaded to the secure application before it can be submitted.  

Once you have an approved amount, and an appointment time to meet with your customer (who is also bringing hard copies of those required documents), you can open a dialog to the customers needs and wants in their new vehicle purchase, where the magic starts! I might also add, that nowadays, some customers are much more comfortable communicating via text or email; Both of which you will want to make sure stay totally compliant with TCPA guidelines. (We’ve got a solution for that too!)

 

TRUST = TRANSPARENCY 

 

Now you can coach your customer to leverage their buying power into the best vehicle purchase they have ever made, without the customer feeling like there is a curveball about to hit.  All the transparency has built trust, layer upon layer, for both you and your customer. I leave you with a final question; Who of you, over the next year, will transition into a new way of doing business? The mortgage process in the BHPH industry makes sense. It saves us time, effort, and energy; All which we can never recover.

 

The clock never stops, neither does change. It is time to step up our game and make everyday operations clearer than they’ve ever been!  

 

Create-A-Great-Day  

Tom 

Qualified has a New Meaning.

Posted on | by Tom Hampton Agency
By Tom Hampton

Welcome to September! Please, let me borrow your attention for a moment for a quick side-story.

 

I have a couple of friends looking for a new home in Oklahoma. They flew up there and spent the day driving around to check out some property choices. NOT ONE single listing agent would let them NEAR the property until they could prove bank financing was a done deal! 

 

Now, can you imagine if the car business was run like that? A pending customer walks onto your lot, you welcome them to your dealership, then firmly announce, “Sir/Madam, before we can show you any vehicle here, you must provide proof of your financial ability to purchase.”

 

NOT ONE DEALER I know would do that, yet it is the next logical progression of our business. When this process first began, the real estate world went bonkers; People were angry! What happened next? Their closing ratios exploded because they were now only working with customers possessing the true ABILITY to buy. 

 

The big company dealerships are already on this track, revving up the engine, and starting to journey to using the same process as real estate companies. They encourage their clients to first learn what the true buying power available to them is. Then, with the customer armed with his/her financial abilities clearly listed before them; They begin to feel more a part of, and somewhat in control of, the buying process. You will know exactly how and where to assist your customers to get the most out of what that their financial ability allows.

  

I believe it will eventually all go this way, for all financing-type companies. So, why not start transitioning now? The best way I know how to begin is to make sure your website is transparent enough to explain the entire process of purchasing a vehicle and that financing is the most important key to purchasing their new car from you. This process will require thought, skill, new habits, and lots of patience. Educating your customer will be a crucial part of the process.

 

I recommend letting anyone have a look around (and drool over the units they want), however, we strongly suggest you not allow test drives until they know their financial capabilities. Doing this will shave hours off the process. Make sure to include a list of documents they need (both on your website and at your dealership) with the ability to download or fill them out on your website aside from the purchase process.

 

Okay, that is all for our September food for thought and tracks for success! Big changes are coming our way! As always, we are here for ALL your BHPH needs! We can assist with breaking them down into manageable, success-proven stages.  Schedule your consultation today to get started working towards a healthier business model designed to make your business thrive!

 

Create-A-Great-Day

Tom Hampton

The MOTHERLOAD of Service Products for your Used Car Dealership!

Posted on | by Tom Hampton Agency

Welcome Profilocity!

Hello friends! For 15 years, I have been traveling across Texas doing business with a lot of you during that time. My goal has never changed; Assist to increase your bottom line and help you grow, succeed, and prosper!

Most of us have seen first-hand that the used car business can be one of the toughest places for entrepreneurs. I am here to say, hope is alive and well! You know me… always looking for what’s best going to serve y’all, whether it is now, 6 months in the future, or clear up till your retirement! Let me tell you; I have FOUND IT! Allow me to introduce the most unique group of gentlemen in our business who have formed the serve all your entrepreneur needs line of services, Profilocity.

Mark Peters – One of the most influential money men you’ve never heard about. He has spent years quietly in the background making hundreds of millions of dollars for others and now applying his knowledge to provide everyone with those kinds of opportunities.

Brian Novotny – Brian has spent decades in the field building complex sales organizations. More importantly, he has developed almost a 6th sense for scaling a dealership and works to carefully guide his dealers there.

Jason Barq Johnson – Altogether, a true OPERATOR after having resurrected a struggling dealership into a multimillion-dollar operation – that my friends, is proof in the pudding.

Craig Turner – There is not one asset recovery product he is not familiar with. He comes highly versed and has helped many manufacturers gain market share here in the states. The man is as straight forward as anyone I’ve ever met.

Now… let me provide you with a little bit of information about what Profilocity can do for you.

-If you have a good size portfolio (300+), then apply for a line of credit and eliminate those expensive floorplans.

-Same estimated note level of 300 + 30 new notes a month = CPI (that is some serious profit)

-Warranty Programs with ZERO deductible that protect your clients (pay claims) AND we train you to train your salespeople how to sell them like candy.

-Point Of Sale: these are for deeper than deep subprime

 

Contact Tom Hampton Agency to schedule a 45 Minute Demo. We will get you hooked up asap! Check out our website at https://tomhamptonagency.com/refueling-partners/ for more information.

Thank you, my friends, for all the years of faith and support! As always, Tom Hampton Agency is here for all your BHPH needs! Contact us at 713-481-6712 or [email protected] for more information or to schedule your business consultation and let’s work to get your business thriving!

Create-A-Great-Day!
Tom Hampton

 

The customer that cannot be pleased.

Posted on | by Tom Hampton Agency

By Tom Hampton

Every business owner has had customers that have issues that sometimes make doing business much more complicated. There is, however, a particular type of customer that cannot and will not be reasoned with or compromise their demands. For those of you experienced enough to have been around the mountain a few times during your career, have found these types of challenging clients get resolved by two general types of outcomes:

1. (Most Frequent Outcome) An unpleasant type of compromise is negotiated between both parties for a final resolution.

2. (Not So Frequent Outcome) The situation becomes unpleasantly distasteful and detrimental to both parties, with no resolutions whatsoever, and the loss of a customer (sometimes several by word of mouth, negative reviews & ratings, etc).

 

Losing an especially upset customer can be infuriating and frustrating (to say the least). Our pride has taken a hit, and our insecurities are rattled. So, what do you do when no resolutions can be met by either party?

 

First, if you have not already done so, examine the instance very closely and ask yourself, Did I do my best in the situation? What lessons can I take away from the situation to make me and my business better. 

 

Personally, when I lose a customer in events such as this, even after 40 years in the business, part of me still mourns. The only way I know how to describe it; It is humbling. I not only feel as though I have let my customer down, but I also feel I have let my team down to lose a customer without resolution. We all strive to serve our customers to the best of our abilities.

 

Secondly, remind yourself and your team that in any business, you can have the BEST customer service on the planet, yet the situation will still inevitability occur at some point.  As the owner, I am usually the one having that final conversation with the customer after my team has exhausted all other avenues. Unfortunately, in a lot of dealerships, the collections agent/manager is the one having these front-line battles. It is imperative you trust the people handling the confrontation before it escalates to you. These team members are much in need of your support, guidance, and sometimes, nurturing. Their frustration levels can bleed over into other interactions with detrimental results (they often do not even realize is happening) when becoming overwhelmed and feeling unsupported.

 

A weekly 20-minute one-on-one meeting with these team members just may help them vent, learn, and grow while meeting these challenges and company expectations. When things get heated, or an appropriate time presents itself, a great start is to have them unplug; Get up, walk around, take a breath, or maybe even a lunch break. The important part is they have a few minutes to clear their head and step away from the confrontation. I also suggest having them provide you with an emotion-free (practice makes perfect), brief, and factual statement about the incident.

 

Finally, before you find yourself neck-deep in a domino effect of fires to put out, provide your team with the training (such as courses, experienced management provided, or practice sessions), support, and guidance to be as successful as possible through these types of situations. Every day, as the owner, it would be best for you to be informed of any customer confrontations; What happened, what was attempted to resolve the situation, what the customer was demanding, and whether those demands can be met or not. These statements can become invaluable training tools.

 

You will always come across demanding customers. It is the price of admittance into the used car business. How we prepare ourselves and our team for these storms is what makes our businesses flourish!

 

As always, Car Guys Agency is here for all your Buy Here Pay Here needs! Contact us anytime to assist with solutions for your business! We have partners we have searched high and low for to provide our dealers with the very best available!

 

Create-A-Great-Day!

Tom Hampton 

Olympian or Spectator?

Posted on | by Tom Hampton Agency

Truth time my friends. This may be one of the most challenging pieces I have ever written. In November of 2019, my health took a turn, and painfully begin to control my every effort for these last 22 months.   

 

Short personal history: At 8 years old I was told I would never walk; With great perseverance and determination, the brace, wheelchair, and crutches were gone by 10 years old! I took 6 years of speech therapy as a child because I stuttered severely; I have since then, spoken freely and effortlessly. I have lived with chronic nerve pain ALL my life and put on mass doses of pain killers as a young adult; I have not taken a prescribed pain pill with any kind of regularity for over 30 years. For the past 14 years, 70 + hour work weeks were the norm and I traveled at a minimum of one week a month. For 7 of those years, I successfully managed my family’s business in conjunction with my own, after my dad passed.  

 

I tell you these pieces of my personal history to show you, my friends, that you are not alone. We are all overcoming personal and business hurdles of all varieties. Please, take care of your health. Drink plenty of water. Stay positive. And embrace challenges head-on with strength and determination! Through it all, with much support from my amazing team, I have been able to keep pursuing my goals to grow my business helping to support dealers in their own growth.  

 

Things are changing, both here at Car Guys Agency and with me personally. Most of you are used to having me pop by your lot, check up on you, and dish out some awesome advice while I am there! (Toot, Toot!! 😉)  

 

Those days my friends can sadly be no more. As much as I dislike it, my decreasing mobility has become the reality of my days. So, in the future, I will be reaching out to you via telephone, email, and text. By the way, as always, my team and I are here in any way we can help support our fellow dealers.  

 

I know how hard you are pushing yourselves, especially in this unstable market, just to keep afloat. We are not out of the woods yet. Markets are predicting there are another 6 to 8 more months of retail-priced units rolling across the auction blocks nationwide. It is unnerving to have a 60-car lot with only 14 units on it. I am also betting we will soon see Floor Plan companies start dropping dealers and smaller dealerships with limited financial resources who just cannot buy. Sooner, rather than later, the public will start pushing back at the higher retail prices and sales may just keep tanking.  

 

The nationwide market is constantly readjusting itself. The dealerships that survive and thrive over the next wave of challenges, yet again- must reinvent themselves and how they do business.  A growing dealership will be operating with new resource partners, rely even more on their communities, and embrace & adapt to changing paradigms.   

 

The large dealerships have 20+ groups of high-paid professionals that use their collective knowledge to market the company. So, with my own advice in mind, we too are adapting and redesigning how we grow as a company. To our loyal readers and longtime customers, we want to personally extend a VIP Invitation to be a part of our newest upcoming project! In June/July of 2021, Tom Hampton Agency will be forming a new group focused on bringing together like-minded dealers motivated to be a part of creating Strategic Growth Plans for the benefit of all.  If you are interested in joining and growing with us, email us here! 

 

Change is uncomfortable and often painful. I remind you; Olympians never won a medal because it was easy. They got it because they pushed, shaped, and molded their potential until the dream met reality. You have got to MOVE and DO to accomplish your goals. Repetition WILL create change in you, your salespeople, and your entire organization.   

 

To best survive this next incoming wave of industry evolution, we must grow; Grow new resources, new alliances, and more courage to jump in and start now. Waiting to see how things may go, could leave you left behind to play catch up. With great new products added to their lineup, Tom Hampton Agency is a great place to start finding those new and inventive (additional income bringing) resources! 

 

Here is to YOUR bright and successful future! Let us face this evolving world together to do and create what others say is impossible!   

  

Create-A-Great-Day,   

Tom Hampton 
832-723-3976  
[email protected]