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PRESIDENT’S MESSAGE

Adapting to

the Market:

NOAH MELAMED
PRESIDENT It’s all About
MIDATLANTIC REGIONAL IADA
OWNER, TICKET TO RIDE AUTO
SALES FINANCE &
ACCEL AUTO Perspective
LANCASTER, PA

There continues to be perplexing challenges remained the same. The surges we saw in at $22 an hour, it’s become that much more
that can be appreciated across our industry, down payments and collections have ended expensive to keep good people. This requires
and significant measures that we must take with the expiration of stimulus funding. shifting focus to having a lean operation
to overcome them. In this light, I’d like to Customers are also opting to receive their and giving our employees a pleasant and
provide a little of my own perspective as child tax credit throughout this year. enriching workplace. This will be a key to
a dealer in the current climate. I operate Although many of us are expecting higher success in 2022.
a 100% buy here pay here operation in returns this tax season, they may be reduced
Lancaster, PA. I won’t pretend to have the due to the reduction of this credit. We need Given these factors, will we continue to
same view of the business as some of my to ask ourselves if we’re willing to take on the grow as we have over the last several years
friends who operate retail or wholesale lots additional risk of selling a more expensive (COVID-19 shutdowns aside)? The demand
throughout the tristate area. vehicle, with less up front from the customer, for our services is there as long as we have
and to float that risk for an extended term. the inventory. However, is the additional
Something that we can all relate to is risk and capital necessary to sell in this
driving down our local car row and seeing Beyond inventory and deal risks, we also environment worth the expansion of our
empty lots. have added regulatory pressures with which portfolios? Opinions are split among my
to contend. A strengthening CFPB, FTC friends in the industry. Many say that if you
In a world where everyone’s and state AG are always on our mind. I am have a sound underwriting process and a
a used car dealer, we need thankful these state and federal watchdogs strong collections team the risk is minimal
are open to dialog with our industry and a and they are going all in on these high-priced
to adapt to the market transparent rule making process, but the vehicles. While others have scaled back
to fill our lots. confluence of oversite and market conditions their operations to simply maintain their
is forcing us to be more strategic than ever portfolios, sell enough to stay even while
This means paying more for vehicles, putting in updating our technology, marketing and buying smart and underwriting cautiously.
more money into them in our shops, and overall business model. During times like
buying vehicles that were once outside of these, it’s so important to keep your ear to Regardless of your strategy, if you continue
our comfort zone. For me, that has meant the ground to make sure you are operating to stay informed, focused, and adaptable to
looking at different makes, model years, within the law and to support organizations changing conditions you are going to be OK.
mileage, and avenues to acquiring vehicles. like NIADA and MARIADA, who are in The past two years haven’t been easy, but they
If we don’t adapt to market conditions, and the state and federal capital discussing the have led to great success for many of us. My
instead expect them to adapt to us, we’ll interests or our industry with lawmakers in focus for the year is to continue to provide
soon be out of business. order to prevent legislative overreach. quality vehicles that I stand behind and to
do everything I can to keep my customers
As a buy here pay here dealer, the changes The employment market has had an on the road. In my experience, this is what
in market conditions make us look deeper unprecedented effect on our ability to find and keeps our best customers coming back again
into how we finance these deals. Although keep good team members. With McDonalds and again. Sticking to these core values
our ACVs have gone up, down payments now offering a starting rate of $16 an hour, makes navigating this environment far more
and the credit quality of our customers has and local manufacturers bringing people on manageable. t

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