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Need Some Support? Hyundai Capital Offers Dealers & Customers Worldwide COVID-19 Support Programs

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The COVID-19 pandemic has triggered the worst global economic downturn since the Great Depression in the 1930s. Posting the fiscal deficits larger than those during the 2008 global financial crisis, countries around the world have come up with a series of measures to stimulate the economy. The worst economic downturn is still underway. Some countries are fortunate enough to see relatively quicker recovery, but the COVID-19 pandemic is aggravating in many others, including the United States, Brazil, India, and Russia, further dragging down their economies. The International Monetary Fund has recently forecasted that the 2020 global economic growth rate would be minus 4.9% due to the pandemic. The Federal Reserve announced in July that while the U.S. industrial output increased for the previous two months, the production dropped by an annual rate of 42.6%, the largest quarterly rate decline since World War II. The automotive industry is also going through an unprecedented crisis. Vehicle manufacturers have suspended their factory operation, and dealerships are struggling with their business. Compounding the crisis is that their potential customers have lost their jobs and seen their income shrunk. IHS Markit has forecasted that 88 million cars would be sold this year worldwide, down by 12% from a year ago.  Global automotive companies have been looking for diverse measures to overcome the crisis, including budget cuts, fixed cost reduction, liquidity increase, to name a few. Considering the difficulties that both customers and dealers face, Hyundai Capital’s global entities have come up with various support programs in partnership with Hyundai, Kia and Genesis. And these programs have been well-received in the U.S., Canada, the United Kingdom, Germany, and Brazil. Hyundai Capital operates Hyundai Finance, Kia Finance and Genesis Finance in 11 countries worldwide. Hyundai Capital America, which runs Hyundai Motor Finance, Kia Motors Finance and Genesis Finance in the market, provided first payment deferral programs to 20,000 new retail customers who purchased a vehicle, allowing them to make their first payment 90 to 120 days later between March and May. The three months were when the U.S. was hit hardest by the COVID-19. The American operation also allowed 130,000 existing customers to defer a monthly retail or lease payment up to three times and extending their finance term, easing the financial pressure of more than 200,000 monthly payments. The measures turned out to be successful. Although the U.S. auto market has worsened in the wake of the COVID-19, Hyundai and Kia were able to achieve a combined market share of 8.9% as of June, continuing its winning streak in market share for 23 consecutive months. “Our top priority lies in better supporting customers and dealers according to each market’s conditions as we go through this unprecedented time,” said Paul Skiadas, who heads the Global Business Division at Hyundai Capital. Relief programs for customers suffering from COVID-19 Hyundai Capital entities in the U.S., Canada, and the UK offered payment deferral and waived programs to customers who can’t afford to make a payment due to the COVID-19 pandemic. In Canada, in which the automotive market was hit harder by the pandemic than in the neighboring U.S., Hyundai Capital Canada offered payment deferral programs up-to 180-days to customers who financed the purchase of a new vehicle through Hyundai Motor Finance and Genesis Finance. The company also offered a 6-months payment waiver to customers who financed or a 3-months payment waiver to customers who leased a new vehicle through Kia Motors Finance. Existing customers were offered to defer lease payment up-to one month, finance payment up-to three months. As a result of various customer support programs, “Hyundai Capital Canada was able to support strong sales for OEMs in June when the combined market share of Hyundai and Kia rose to 13.5% in June,” said Mark Di Donato, who heads Sales and Marketing Department at Hyundai Capital Canada. “We achieved the largest monthly sales volume of $200 million in July since the establishment of Hyundai Capital Canada,” he added. Hyundai Capital Bank Europe offered zero-interest loan and payment deferral programs in Germany. Hyundai Capital UK directly contacted customers whose agreements were due to end during lockdown to offer them a 3-month deferral or 12-month refinance of their balloon payment. The measures helped customers preserve future renewal opportunities. They also launched a 0% PCP product with 3-month deferred payments to help customers. All of this was heavily promoted and signposted via dedicated webpages. Banco Hyundai Capital Brasil also decided to extend the customer care program in August. New customers can make their first payment starting from 2021, and existing customers can defer their payment for up to 90 days. Liquidity support for dealers amid sluggish auto market The support from Hyundai Capital is not merely targeted at customers. Dealers also benefited from a chain of aids. Global operations came up with programs to improve cash flow of dealers struggling with financial difficulties amid the downturn of the automotive market. Hyundai Capital America was quick to deploy solutions that spanned their floor plan and commercial financing products in support of their dealer partners. As part of Dealer Cash Flow Assistance Programs, the operation provided 60-day deferral on floor plan interest payments and 60-day waived curtailments on aged units. Also, 90-day deferral on principal payments for existing working capital and real estate loans and 3-year fixed interest-only for new working capital loan applications were offered. Hyundai Capital Bank Europe provided payment deferral programs for 105 days to about 640 Hyundai and Kia dealers in Germany. Similarly, Hyundai Capital UK extended interest-free stocking periods and suspended payments for demonstrators for over 300 dealers on wholesale credit to ease the burden of the lockdown period when they were unable to sell cars. Banco Hyundai Capital Brasil has extended the period for its floor plan payment from 120 days to 210 days. “We are committed to helping dealers stay financially healthy with the dealer fund, raised together with Hyundai Motor Brasil and its dealers,” said Banco Hyundai Capital Brasil CEO Cezar Janikian.
Interview: James Binkley, Founder of Binary Automotive Solutions

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In 2005, James Binkley founded Texas-based Binary Automotive Solutions after gathering knowledge and experience from 25 years of jobs both in and out of automotive retail, including a stint at the Ford Motor Company. His experience gave him unique insight into what automotive dealerships really need to do to be profitable, as well as all the ways dealers regularly lose money and customers. This insight led him to create Binary’s first offering, a dealer-branded certification program. Today, Binary Automotive Solutions offers a slate of custom-designed warranty packages for both new and previously owned vehicles coupled with dealer-branded marketing materials. In this interview, Binkley, a frequent article contributor to Dealer Marketing Magazine , talks about the events in his career that led to his creation of Binary, and discusses his business philosophies and how dealers can provide a win-win dealership culture that creates customers for life. How did you first get started in the automotive profession, and what was your first industry position? Initially, I worked for several dealership service departments during and after college. My big stepping stone into the industry was with Ford Motor Company. That was where I was able to consistently see how dealerships ran and what it takes to make them successful. While working with the Ford dealers, I realized many dealers were not service-focused, and I began encouraging them to sell extended service plans (ESPs). From there I moved on to AON, which was the second-largest insurance brokerage group in the world at that time. AON was the parent company for Pat Ryan and Associates and Virginia Surety, both of which I worked for. Pat Ryan helped usher in the F&I profit model to dealerships, a winning idea, because the company grew to 500 offices in 120 countries and generated more than $7 billion in annual revenue. While there, I created and launched the Q Certified Limited Warranty program with great success, and spent more than five years heading up new product development. I started with a simple approach: dealer-branded certification programs. From there it was warranty programs that were rooted in strong marketing and ensured profitability. I truly believed this direction would increase customer retention, and the dealer money out of pocket to attract customers would decrease significantly. What things have you learned from your dealer clients since founding Binary that have most helped you and your team develop and refine the company’s products and services? Working with our clients over the years has shown me everything a dealership needs to do to be profitable, as well as, unfortunately at times, all the ways a dealer can lose money and customers regularly. I remember one of my largest “a-ha” moments while taking a Dale Carnegie Training course in human relations and public speaking, where I ultimately became an instructor. I realized that for any business or person to be successful, they needed to create an environment where everyone felt like they were a winner — the manufacturer, the dealer, and the consumer. So, I started with a very simple approach to everyone coming out a winner — a dealer-branded certification program. I envisioned a series of programs rooted in strong marketing that would provide a win in the form of ensured profitability for the dealer, and a win for the customer by giving them something extra, above and beyond the car sale. Most marketing and sales initiatives fail for one reason and one reason only — the consumer does not find the environment they expect from the dealer’s advertised message. If the customer shows up and does not see the environment they were promised online, over the phone, or in an ad, you’ve lost them before the sale even gets started. We encourage all our dealers to badge cars and hang banners across the dealership touting the Dealer Branded Lifetime Warranty program. There should be no question that as soon as the guest drives onto the lot, they’re receiving the same message they saw online or in the ads. Of course, marketing alone is not enough. The dealer must get absolute buy-in and make the lifetime warranty message — or other unique offerings from the dealership — a part of every interaction, from the phone, to the parts and service counters, to the dealer website. The value promise should be made early and accessed from every touchpoint. You’ve said a culture change is needed for dealerships to create a win-win environment. How does that work? I like explaining it this way: If you take your child to the circus, you show up with certain expectations. If you don’t see a circus tent, don’t hear the lions, can’t find the ringmaster or any of the death-defying acts you expect to see, you’re not going to part with your hard-earned money, and you’ll likely share the poor experience with others. It’s the same thing with cars. You need buy-in from ownership and management, sales, and finance. We’ve seen time and again the success that comes from an entire dealership committed to its lifetime warranty program. The value culture message is shared at every customer touchpoint and spread across every department. When executed properly, dealerships sell more cars, hold more gross, increase service contract penetration, and begin customer relationships that last a lifetime. But everyone needs to be completely committed. What would you say to an “old school” dealer who still thinks traditional ways of doing business (haggling with customers, price wars, etc.) are the only way to succeed in automotive retail? Dealers in the car business have almost no competitive advantage when it comes to price, product, and financing. All vehicles are made and bought from the same factories, they use the same lenders that use the same criteria — creditworthiness of the borrower, not the dealership — and used cars are coming from the same auctions. So, what does a dealer do? He often hopes to sell at a loss and make some profit in finance or trade. The problem with this approach is it doesn’t build trust or loyalty on behalf of the customer. So, then the question becomes not how much the customer saved, but rather how much value did they receive? This is the area where a dealer can be proactive. What extra services are you going to build into the deal that will offer the most bang for their hard-earned buck? What’s a final parting word of advice for dealers looking to create a competitive advantage in the market? Don’t worry so much about the car deal you’re working on right now with the customer. Worry about creating a culture of value where everyone feels like they “won.” I still haven’t forgotten what it feels like to be poor and working for every penny earned — you want to feel like you weren’t taken for a ride. The salesperson, the finance manager, the dealer, and certainly the customer should all leave the transaction smiling. There should be no loser when it comes to creating a relationship for a lifetime. I will leave dealers with this simple assessment tool. Ask your sales staff, “What is our unique value proposition?” If they answer price , you’ll know why you are winning the Race to the Bottom.
StoneEagle’s SEcureAdmin Platform to Power Toyota Financial Services iBook Dealer Portal

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Dallas — August 21, 2018 — StoneEagle announced today that Toyota Financial Services will use StoneEagle’s SEcureAdmin enterprise administration system to power the iBook e-Rating dealer portal for its North American dealers. The SEcureAdmin platform features a powerful rules engine which simplifies the complexity of business logic and criteria to quickly display the complete suite of rates for Toyota Financial Services F&I products to their dealerships via the iBook dealer portal. The StoneEagle SEcureAdmin platform and iBook dealer portal leverage the best in class cloud services, which optimizes the scalability and uptime of the platforms to meet the needs of Toyota Financial Services and their dealer partners. “StoneEagle’s mission is to connect People and Performance by providing industry-leading technology solutions and legendary customer service to our clients. We are excited to expand our thirteen-year partnership with Toyota Financial Services by bringing these solutions to their dealers; We will continue to collaborate with Toyota Financial Services to deliver additional solutions that transform the retail automotive processes and industry,” said Thomas Elliott, president, StoneEagle. About StoneEagle StoneEagle provides innovative F&I solutions and legendary customer service to the retail automotive industry. Our Metrics, Menu and Admin solutions increase productivity, improve efficiency, and accelerate profitability for dealerships, general agencies, F&I product providers, and OEM’s nationwide. For more information on StoneEagle or to schedule a solution demonstration, call 855-937-8729, email sales@stoneeagle.com , or visit www.stoneeagle.com . Media Contact Jason Gillette, VP of Sales & Marketing, StoneEagle, (972) 934-1751, (214) 354-8396 (m)
Zero Percent Finance Deals Drop to Lowest July Level Since 2005, Says Edmunds

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Santa Monica, CA — August 1, 2018 — Zero percent finance deals were slower to materialize for car shoppers in July, according to the experts at Edmunds. Zero percent finance deals accounted for 6.92% of sales in July 2018, compared to 11.34% in July 2017 and 11.18% in July 2013. Edmunds analysts note that this is the lowest share of zero percent finance deals seen in July since 2005. “Zero percent finance deals typically peak in summer months as a tried-and-true automaker method of spurring outgoing model-year vehicle sales, so this appears to mark the end of a fairly long-lived tradition for the industry,” said Jeremy Acevedo, Edmunds’ manager of industry analysis. “While inventory isn’t at the alarming level it was at this stage last year, how automakers navigate their model-year selldown will be critical through the rest of the year as the market contracts and prices continue to rise.” Edmunds analysts point to the scarcity of zero percent finance deals as the driving force behind interest rates sustaining near-record average highs in July. The annual percentage rate (APR) on new financed vehicles averaged 5.74% in July 2018 compared to 4.77% in July 2017, representing the largest year-over-year jump that Edmunds experts have seen so far in 2018. “Interest rates might be down slightly month-over-month, but they’re still hovering near a nine-year high,” said Acevedo. “With more Fed rate hikes ahead, it’s not likely that APRs will be going down anytime soon.” More insight into recent auto industry trends can be found in the Edmunds Industry Center at www.edmunds.com/industry-center/ . New-Car Finance Data July 2018 July 2017 July 2013 Term 68.75 69.45 65.58 Monthly Payment $533 $509 $462 Amount Financed $30,903 $30,689 $26,869 APR 5.74 4.77 4.02 Down Payment $3,970 $3,621 $3,356 Used-Car Finance Data July 2018 July 2017 July 2013 Term 67.00 66.90 64.35 Monthly Payment $398 $383 $365 Amount Financed $21,574 $21,281 $19,373 APR 8.31 7.46 7.81 Down Payment $2,582 $2,468 $2,149 About Edmunds Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America’s best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter , Facebook and Instagram .
RouteOne Welcomes C&F Finance to Its Growing List Of Available eContracting Finance Sources

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RouteOne announces that C&F Finance Company is now an available eContracting finance source for dealers utilizing the RouteOne platform. eContracting enables the digital exchange of critical contract documents and data between dealers and finance sources to increase efficiency and reduce contracts in transit. RouteOne is the industry leader in eContracting, booking more than 10 million eContracts to date. RouteOne has over 7,200 active eContracting dealers and 50+ finance sources in its rapidly growing eContracting customer base. C&F Finance is a leader in indirect auto financing, headquartered in Richmond, Virginia and providing automobile loans in multiple states throughout the US. C&F benefited from a streamlined technical implementation process due to the eContracting certification that their Loan Origination System (LOS), defiSOLUTIONS, had previously undergone with RouteOne. “We strive to continually deliver our customers solutions that streamline and solve challenges in the auto finance industry,” stated Brad Rogers, RouteOne’s Chief Operating Officer. “eContracting is a solution that benefits all parties involved: dealer, finance source, and consumer. C&F Finance is a welcome addition to our eContracting platform and we are pleased to offer their services to our dealer base.” “We are excited about partnering with RouteOne and offering eContracting to our dealers. Cutting down funding time and gaining efficiencies will greatly add value to our funding processes. We’re certain our best in class service will be further enhanced with this feature,” stated Shawn Moore, Executive Vice President and Chief Credit Officer. Dealers interested in eContracting should contact their RouteOne Business Development Manager at 866.768.8301 or www.routeone.com/salesteam. About RouteOne RouteOne was formed in 2002 by Ally Financial, Ford Motor Credit Company, TD Auto Finance, and Toyota Financial Services to improve the F&I process for automobile dealers and their customers. Connecting thousands of dealers and finance sources in North America for vehicle financing, RouteOne’s platform delivers a comprehensive suite of F&I solutions across multiple channels: in-store, online, mobile, and via third-party solutions. Its product line-up includes digital retail, credit application, eContracting, menu, and compliance solutions. In addition, RouteOne enables dealer choice across a wide variety of best-in-class providers through open integrations with over 170 DSPs. More information is available at www.routeone.com. About C&F Finance C&F Finance Company has been a wholly-owned subsidiary of Citizens and Farmers Bank since 2002 when the bank acquired Richmond-based Moore Loans, founded in 1952. The company serves dealers and customers in Virginia, Maryland, Tennessee, North Carolina, Ohio, Kentucky, West Virginia, Indiana, Georgia, Alabama, Missouri, Texas, Illinois, Florida, New Jersey, and Pennsylvania. More information is available at www.cffc.com. Media Contact Kathy Armstrong, Sr. Marketing Manager, 248.862.7568,  karmstrong@routeone.com
Auto Dealer Financing Gets a New Name and Capitalizes on Parent Company for Expansion

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Fort Lauderdale, FL — June 20, 2018 — A little over two years after being acquired by Mexico City-based Credito Real, AFS Acceptance LLC has announced it will be changing their name to Credito Real USA Finance (CRUSAfin) as Credito Real begins to expand its brand in the United States. “We have been very fortunate to have a parent company like Credito Real. With their unwavering support of our platform and the financial resources to back it up, we are now in a good position for growth and we will be leveraging the Credito Real brand to help us achieve new heights. Competition is fierce, but I am confident we can provide unique opportunities for our growing dealer base and continue to work closely with our customers by helping them improve their credit through our Better Credit is a Better Life initiative”, said CRUSAfin CEO, Scot Seagrave. CRUSAfin offers products for both their Franchise and Independent Partners. “Working to help dealers find solutions for their traditional subprime customers as well as their customers currently in an open bankruptcy has been our focus over the last several years and we will continue to grow these market segments”, said Seagrave. Through a network of dealers across the U.S., consumers can find the car they want and the financing they need. “In the process, they’ll step onto a path designed to improve their financial future by improving their credit”, he added. Additionally, CRUSAfin recently implemented a program focused on helping unbanked customers. “This effort falls right in line with our parent company’s effort to achieve their mission of becoming the largest non-bank financial institution for Latin Americans in the world. We are excited to help them reach this goal”, said Seagrave. In announcing its name change, CRUSAfin also revealed its new branding in line with Credito Real to support its evolution and expansion in the United States as a leading auto finance firm. Credito Real was established over 25 years ago and also owns Credito Real Business Capital and Don Carro. CRUSAfin’s new brand identity reflects the company’s commitment to provide its clients with flexible automotive credit services. Credito Real USA redesigned website amplifies the company’s online presence and opportunities to current and prospective clients. Learn more about Credito Real USA Finance at: www.crealusa.com/finance Media Contact Juan Quintero, Director of Marketing, Juan.Quintero@afsacceptance.com