Page 11 - GIADA Nov-Dec 2020

Things at our dealerships still look pretty I really wish I could predict the future. But, auto finance operations of Anderson
different than they did a year ago. Walking if I were a pilot and our business was an Brothers Bank, and occasionally we
around the store, you will see plexiglass airplane, I'd be telling my passengers to put actually talk business. I thought it might
dividers, masks, hand sanitation stations, on their seatbelts because I see turbulence be interesting to get his take from the
signs, and lots of social distancing. coming. Our management team will do its vantage point of a finance source with his
Virginia imposes some fairly strict and best to avoid the bumps, but we can't avoid finger on the pulses of a large number of
detailed requirements on businesses like all the clouds. I hope that any future stimulus dealerships. Here's what Micky had to say.
ours, and we've committed quite a few packages will take into consideration some of
resources to complying and fighting the the unintended consequences of the earlier The most surprising thing we
spread of the virus within our doors. packages. I know that our business has have experienced is consumers
learned a lot through this pandemic, and
By now, we are highly fluent in the digital sales it would be a shame if we didn't take those are buying cars like they aren't
processes that allow us to service our customers lessons with us. My hope is that it would be going to make another one —
while limiting the actual time in the dealership. similar with the government, but, alas, one our originations are up 25%
The biggest challenge in our sales department never knows....
has been inventory issues caused by the YTD. I thought the car business
pandemic. Our parts and service business I also reconnected with Ingram Walters, would dry up. In fact, our 3rd
has been steady, but I have concerns about who has a Hyundai store outside of quarter originations were the
the long-term effects of less driving on these Charlotte, North Carolina. He's one of the
departments. After all, less driving means less most consistently upbeat people I know, so largest ever.
mileage and less service. It's notable that our I was taken aback a bit by his reply. Here
more rural stores have been affected less than is my paraphrase of his main points. We have seen very little fraud in the income
the stores close to metro markets. verification process.
While business was good as long as the
The processing of tags, titles, and all the $1,200 checks were being issued, October Our underwriters already worked from
other stuff that happens after the customer was like "someone cut the spigot off." I home, so we had no adjustments to make
drives off the lot remains labor intensive, think customers are likely waiting for the in that process. I think that helped us
cumbersome, and sluggish across the board. election to make car-buying decisions, and tremendously.
With some state DMVs being closed to the October was "scary bad" for both sales, new
public, and many companies encouraging and used, and for service. Uneasy with my Past-dues and repos have normalized,
remote work, things that once took a day or own numbers, I conducted an unscientific maybe even trending lower than normal for
two may now take much, much longer. After poll of other dealers and determined this time of year.
all, the routines that once supported efficiency that I was not alone—other dealers were
and accuracy for years were quickly altered suffering, too. My biggest concern has been that most
back in March and April. That being said, I DMVs are running 90-120 days behind in
believe everyone is starting to settle into the As long as the PPP money flowed, I was titling, so we could have dealer problems we
new normal here as best as possible. able to keep all of my people working, won't see until it's too late.
but very recently I had to let my service
The two biggest challenges manager go, shifting those responsibilities Three dealers and a banker don't constitute
we struggle with daily are to another employee. I've heard of other a valid survey sample, I'll admit, but maybe
dealers closing temporarily when employees the frontline reports will make up, in part,
COVID battle fatigue and the contracted the virus, but, so far, no one at for the sample deficiency. n
difficulty in predicting what is my dealership has gotten sick, although
coming down the pike. We are one employee quarantined herself for two Thomas B. Hudson was a founding partner
of Hudson Cook, LLP, and is now of counsel
weeks after her mother tested positive.
increasingly trying to provide in the firm's Maryland office and the Senior
resources to build morale and As some of you know, my wife and I spend Editor of Spot Delivery. Tom can be reached
keep employees focused. After the cold months away from Maryland's at 410.865.5411 or by email at thudson@
occasionally frigid weather and snow hudco.com.
all, many of our employees are shoveling. We retreat to South Carolina's
also managing the challenges Low Country — Pawleys Island — and Copyright © 2020 CounselorLibrary.com
of online education for their stay until the spring thaw. A friend and LLC. All rights reserved. This article
client, Micky Watts, lives 12 miles from appeared in Spot Delivery®. Reprinted with
children and keeping their Pawleys in nearby Georgetown. Micky express permission from CounselorLibrary.
families safe. The anxiety level and I meet most Fridays for lunch at a com.
in the typical American family nearby barbeque joint and lie to each
other about the fish we didn't catch and
is high right now. other matters of import. Micky runs the

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