Carvana Keeps Growing FeaturedSaturday, 10 June 2017 17:25
Four years after selling its first car in Georgia, Carvana is adding another store.
The chain’s latest location serves residents in the Augusta and Macon areas.
Carvana launched in Atlanta in 2013.
To date, Carvana has delivered cars to customers in 48 states. With this launch, Carvana now offers free, as-soon-as-next-day delivery to residents in 29 markets.
Carvana Reports Results FeaturedWednesday, 07 June 2017 23:32
Newly public Carvana Co. announced financial results for its first quarter.
Retail units sold totaled 8,334. Revenue totaled $159.1 million.
Total gross profit was $9.7 million. Total gross profit per unit was $1,169.
Net loss was $38.4 million.
There was a time when buy-here, pay-here dealers wanted to report to the consumer credit agencies and they couldn’t because their volumes were too low.
Now they can, but many are growing unsure if they should.
Regulations created in the past few years aim to allow smaller creditors, such as dealers, to provide information on their customers.
This seemed like a great new opportunity at first, but many buy-here, pay-here dealers are finding it comes with risks for both them and their customers.
Brent Carmichael, a Twenty Group Moderator for NCM Associates, said most his dealers are looking to get away from credit reporting and a few actually have.
There are many reasons to offer credit reporting. John Giamalvo, Equifax’s vice president of dealer service, said millenials are especially aware of credit scores and see them as a reason to do business with a creditor.
The key is making sure the process is done right.
Giamalvo said the Consumer Finance Protection Bureau has published several guidelines on how to properly report consumer credit.
One easy way to get in trouble is by offering more than you can deliver.
“If you promise to repair your customers’ credit, you are inviting in the CFPB,” said Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers.
One risk for dealers is that some dealer management systems automatically forward information to the bureaus, increasing the chance of wrong information winding up in a report.
Dave Brotherton, a Twenty Group moderator with the National Independent Automobile Dealers Association, warned there is also a chance subprime finance companies will use the data supplied to the credit bureaus to poach buy-here, pay-here customers.
Nick Markosian, owner of Markosian Auto Sales in Taylorsville, Utah, said he reports to the bureaus. But he does this because he also offers outside credit and moves customers off his own books when their scores improve.
Car-Mart Board Nominates Director FeaturedTuesday, 06 June 2017 23:57
America's Car-Mart Inc. announced that its Board of Directors nominated Ray C. Dillon for election as a new, independent director at the upcoming 2017 annual meeting of shareholders.
Dillon was nominated to replace Kenny Gunderman, whose term is expiring.
Dillon was the president, chief executive officer and a director of Deltic Timber Corp. from July 2003 until his retirement in October 2016.
Since 2011, Dillon has served as a director on the Little Rock Branch Board of the St. Louis Federal Reserve Bank and currently serves as chairman of the Little Rock Branch Board.
Dillon’s community service includes the Arkansas State Chamber of Commerce, the Associated Industries of Arkansas and the Quapaw Area Council of the Boy Scouts of America, for which he has served as a director and chairman.