eLEND Solutions Mobile Adoption Survey shows 60% of responding dealers are not considering using tablets in either their Sales or F&I departments.

New Orleans, LA – January 27, 2016 – Mobile devices can speed up a transaction process that the vast majority of dealerships say is too long, yet 60% of dealers not using them say they are not even considering adopting mobile tablets in their dealerships. Why? Cost and staff/management resistance to change, say dealers responding to a recent survey on dealership mobile tablet usage by eLEND Solutions. 

The snapshot survey, conducted among dealerships nationwide in Q4 2016, reveals that tablet usage in the Sales department is more prevalent than in the F&I department which is where, according to recent data, dealers report that the process tends to slow down. While the cost of the average tablet is around $400, the time saved by shaving even just one hour from the sales/transaction process could easily create sales productivity and additional car sales, translating into cost benefits that could likely pay for a tablet in a day.

“This survey reveals yet another ‘perception-versus-action’ disconnect in the journey to improve the customer experience,” said Pete MacInnis, CEO of eLEND Solutions. “Dealers say that mobile tablets offer potential for improvements – even those who aren’t using them, suggest that they will speed up transaction times - yet half of those surveyed are not even considering implementing them in their F&I departments because of cost and staff resistance to change.”

The good news is that the other half of dealerships surveyed are either considering implementing mobile devices, or already using them, in the F&I department. The survey suggests that mobile devices offer a solution to the biggest issues that dealerships say impede customer satisfaction and profits: streamlining data flow and solving time clogs. 

Key highlights from Mobile Adoption Survey:

• 50% of dealerships surveyed are either using (17%), or actively considering (33%) using, mobile tablets in the F&I department
• 24% are using mobile tablets in the Sales department, with another 39% considering using them.
• 60% of respondents not using tablets will not consider using mobile tablets in either Sales or F&I
• 37% will not consider using mobile tablets in Sales department; 50% won’t consider using in F&I
• Of dealers using mobile tablets, the number one realized benefit cited was ‘speeding up the sales process’ (44%), with improved CSI (39%) and efficiency and consistency of processes (50%) second and third.
• Of dealers not using mobile tablets, the top perceived benefit cited was speeding up the sales process, followed by improved CSI, and improved process efficiency/consistency
• Cost, resistance to change, and undefined ROI were the top three reasons dealers cited for not using mobile tablets.

“We believe that mobile technology offers great opportunities to connect the car buying/selling process end-to-end in the dealership and that, as more dealerships adopt the technology, the results will challenge resistance and speak for themselves,” added MacInnis.

About eLEND Solutions
eLEND Solutions is a privately held automotive technology company specializing in online and in-store credit, finance and ‘deal making’ solutions designed to create a more efficient, faster moving Sales and F&I workflow that helps dealers sell more cars in less time, improve profitability and increase customer satisfaction.  For more information, visit www.elendsolutions.com.

Contact: 
Media Relations 
Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com 
Crystal Hartwell, mWEBB Communications, (714) 987-1016, crystal@mwebbcom.com

Tonkin is the third Top 100 Dealership Group sold by Kerrigan Advisors in the last 12 months

Irvine, CA, December 19, 2016 – Kerrigan Advisors, the leading sell-side advisory firm to auto dealers in the US, represented and advised the Ron Tonkin Dealerships, Portland's largest auto dealership group, in its sale to Gee Automotive Companies.  This transaction will create one of the nation’s top 50 dealership groups[1].  The Ron Tonkin Dealership Group, founded by Ron Tonkin in 1960, is ranked #93 on Automotive News’ Top 150 Dealership Group list and is currently led by Ed and Brad Tonkin, co-presidents of the group and sons of Ron Tonkin. 

“Kerrigan Advisors was instrumental to the sale process,” said Brad Tonkin, who will remain with the company and serve as Platform President for Gee Automotive Companies.  “The Kerrigan team identified the right buyer for our family’s business. Kerrigan Advisor’s responsiveness, client service and deep expertise was a key component to the success of this transition.” said Ed Tonkin.

Kerrigan Advisors, headed by Erin and Ryan Kerrigan has now represented three of the top 100 dealership groups in the last 12 months, and is currently engaged to sell two additional top 100 groups. Upon completion of this sale, Kerrigan Advisors will have advised on the sale of 42 dealership transactions since July 2015, representing over $800 million in client proceeds.

“Our job is not simply to enable the best possible financial transactions for our clients, but to identify a buyer who will carry on the legacy of our clients’ dealership business.  This transaction is a perfect example of the fulfillment of those core goals,” said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. 

“We know that Gee Automotive’s commitment to the Tonkin brand and high levels of service, as well as to Tonkin employees, ensures that the Ron Tonkin Dealerships will continue to be a successful and respected part of the Portland business community – as well of the automotive community at large. We are proud to have been part of this significant transaction” said Ryan Kerrigan, Managing Director of Kerrigan Advisors.

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report™ which includes Kerrigan Advisor’s signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. To download the Blue Sky Report, click here. The company also releases the monthly Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market.  The Kerrigan Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index, click here.

Erin Kerrigan (www.kerriganadvisors.com/meet-the-team-2/) is Founder and Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News and the Wall Street Journal.   For a recent video of Erin’s commentary on the market, click here: drivingsalesnews.com/erin-kerrigan-shares-insight-on-the-current-dealership-buysell-market/.

Ryan Kerrigan is Managing Director of Kerrigan Advisors and an expert on US auto retail buy-sell transaction work. Ryan served as Managing Director at Serent Capital, a $250mm private equity fund investing in middle market companies. Prior, he served as General Manager of the family’s auto dealership. Mr. Kerrigan began his career as a management consultant at McKinsey & Company, where he advised Fortune 500 companies on growth strategies, organizational issues, pricing and business valuation.

About Kerrigan Advisors

Kerrigan Advisors is a national dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers. Led by a team of veteran advisors who have represented transactions totaling over $2.5 billion dollars in automotive, private equity and investment banking, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match each seller with the right buyer.

In addition to the monthly Kerrigan Auto Retail Index, each quarter, Kerrigan Advisors publishes The Blue Sky Report™, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director Erin Kerrigan is a recognized industry expert on dealership valuation, real estate and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Her expertise is also featured in a monthly column for Dealer Magazine. 

Kerrigan Advisors Media Contact:
Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 424.603.4340

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Unengaged wait time in the dealership outpaced negotiation as the biggest consumer pain point in the car buying process, according to eLEND Solutions 2016 Dealer Survey

Foothill Ranch, CA –November 29, 2016 – For the third year in a row, a survey of auto dealers, fielded by eLEND Solutions™, shows a distinct disconnect between actual start-to-finish transaction times and what dealers believe is the “ideal” time consumers should spend in a dealership buying a car.

*includes % saying under an hour

While transaction times reported by dealers show a marked improvement over previous years, well over half still have a process that takes over two hours.  The culprits? Dealers cited transition time from Sales to F&I as the biggest slowdown and agreed that the time it takes to complete the F&I portion of the car buying process is the biggest obstacle to CSI success: over half reported that wait time, either in F&I or the dealership, constitutes the number one pain point for consumers. And, while nearly two-thirds cite improvements in the finance process as having the greatest potential positive impact on transaction times (getting F&I involved sooner, better real time data exchange, etc.), over 50% of respondents do not pull credit reports until well into the sales process.

“We are pleased to see that transaction times are improving for some dealerships, but this continues to be a pain point for many dealers, costing them significant dollars in resources and lost opportunities,” said Pete MacInnis, CEO of eLEND Solutions, Inc.

MacInnis cited a recent case study of a dealership that achieved significant transaction time improvements by streamlining sales and F&I as a proof point of the dollar benefits that come from reducing transaction times. By pre-qualifying customers at the start of the transaction, the dealership knocked approximately an hour off the transaction time, which resulted in increased gross profits per car sold of  $300+, while saving as much as $275 on variable labor and other costs, and generating a four point increase in CSI.

Key Survey Highlights:

Transaction times improve, but don’t meet dealer goals

While dealers are still not meeting their ideal goals, transaction times have improved according to the snapshot survey. In 2014, 40% of dealers reported an over three hour process while in 2016, only 25% of dealers surveyed said their process took over three hours.

Over a third of dealers surveyed think the start-to-finish process should take under an hour, but only 11% of dealers overall say they are able to achieve that. For dealers who specify under an hour as an ideal time, the number of those dealers achieving it doubles to 22% (and rises to 55% for those whose ideal time is under two hours), indicating that targeting a shorter transaction time ultimately leads to shorter transaction times.

Wasted time in dealership is biggest consumer pain point

Unengaged wait time in the dealership outpaced negotiation as the biggest consumer pain point at the dealership, according to the dealers surveyed – with time spent in F&I cited as the top pain point by one in four dealers. Nearly 60% of dealers indicate wasted consumer time is potentially their biggest CSI issue.

F&I needs connected process to streamline wait times

Seventy-three percent of those surveyed agree that the greatest obstacle to success in F&I and CSI is the time it takes to complete the F&I portion of the car buying process and 63% cite the transition from Sales to F&I, and time spent in F&I, as the biggest slow downs. “These are symptoms of the ‘silo’d’ sales and F&I process,” continued MacInnis. “If information flow were consistent and uninhibited across departments, a connected car buying process would be facilitated, time in F&I would be reduced, and the overall transaction times would accelerate.”

Are dealers waiting too long to pull credit?

Of dealer respondents who say they pull credit, over half wait to pull credit until well into the purchasing process.

“We believe that pulling credit sooner is a critical – and simple – step to streamlining the process and achieving better CSI and higher closing ratios,” said MacInnis.

Dealers united

The snapshot survey, conducted online among dealerships nationwide in October 2016, also showed that dealerships are united on the idea that increasing CSI means greater sales and profit (91%) and on the goal of connecting the online and in-store process (69%).

About eLEND Solutions
eLEND Solutions is a privately held technology company whose patented platform offers integrated credit, identification and finance solutions that enable a connected buying experience for consumers and a streamlined sales and finance workflow for dealers and lenders that reduces the time to complete a vehicle purchase transaction by hours.  For more information, visit www.elendsolutions.com.

Contact: 
Media Relations 
Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com 
Crystal Hartwell, mWEBB Communications, (714) 987-1016, crystal@mwebbcom.com

New Study: Dealership Purchase Transactions Reduced by 60 Minutes, Likelihood to Buy Increases 56% with New Process

White Paper from eLEND Solutions with Huntington Beach Chrysler Dodge Jeep Ram examines how a simple driver’s license swipe, and a new process can set financing pre-qualification in motion, reduce transaction times and increase closing ratios

Foothill Ranch, CA – August 4, 2016 – The time it takes to complete a purchase transaction in the dealership can be shorted by sixty minutes with the simple swipe of a driver’s license and specific process improvements, according to a new study released today by eLEND Solutions. The study entitled “A 60 Second Process Change Decreases Transaction Time By Over 60 Minutes” conducted with California-based Huntington Beach Chrysler Dodge Jeep Ram, proves that, in addition to streamlining the transaction time, triggering financing pre-qualification at the start of the sales process can increase likelihood to purchase by 56%.

“We knew the only way to cut the time customers spent in the dealership was to start Sales and Finance at the same time,” said Pete Shaver, Managing Partner of HB Chrysler Dodge Jeep Ram. “To us, this meant the minute the customer enters the showroom. We decided to empower our sales team with the ability to combine the driver’s license test-drive scan with a consumer consent soft pull credit application. The results really speak for themselves.”

“Saving time during the car sales transaction has become a kind of holy grail in the auto industry. Both dealers and consumers alike want to shorten a process that is documented as being notoriously long, unwieldy and exhausting – often lasting up to four hours,” said Pete MacInnis, CEO of eLEND Solutions. In fact, a recent Cox Automotive study, said that less than 1% of consumers like the sales process as it is today – with the time spent in the finance department being the biggest issue; while 88% of dealers say significant opportunities exist to improve the sales and finance process in their store.

In the six-month study, HB Chrysler Dodge Jeep Ram’s sales team was required to get a quick driver’s license swipe from consumers and invite them to opt-in for a pre-qualification soft pull credit app – with no SSN required and no impact on their credit score.

Key results included:

• Closing ratios up by 150% from 18-25% to 45%
• Average transaction time went from 3-4 hours to just 2-3 hours
• Gross profit per car sold increased $300+
• Savings of $200-275 per car sold in variable labor and miscellaneous costs
• CSI scores increased 4 points

Not only did HB Chrysler Dodge Jeep Ram report record closing ratios, increased gross profits and shorter than ever transaction times, they also discovered that consumers welcomed this new process – especially because there was no SSN requirement or obligation to purchase. Over 50% of customers opted in for the one-click, soft credit pull and most had better than average credit scores – signaling a “ready-to-buy” buyer.

“Creating a connection between the traditionally silo’d sales and finance departments also helped solve the issue of data disconnects and bottlenecks in the finance department by capturing and de-duping all customer details in the CRM – whether from new walk-in customers or those already in the system,” continued Shaver. “Another improvement was the flagging up of potential fraudulent IDs prior to a test drive – an issue every dealer needs to get to grips with.”

ID Drive is able to authenticate every version of every driver’s license for all 50 states, Canada and Mexico. ID Drive is also able to append validated address and phone information to the lead record, and automatically convert a driver license scan into a consumer consented pre-qualification application.

“HB Chrysler Dodge Jeep Ram’s commitment to, and its sales team 100% compliance of, this new procedure helped cement their success. The results really speak for themselves - proving the case for connecting the sales and financing processes and beginning F&I as early as possible in the selling process,” concluded MacInnis.

To read the full white paper, click here.

ID Drive’s pre-qualification function works hand-in-hand with eLEND’s CreditPlus, a tool that instantly pre-qualifies customers based on dealer-defined credit criteria, giving car buyers direct, upfront access to dealership financing sources and real near-final terms from multiple lenders, all of which are controlled by the auto dealer.

About eLEND Solutions
eLEND Solutions is a privately held technology company whose patented platform offers integrated credit, identification and finance solutions that enable a connected buying experience for consumers and a streamlined sales and finance workflow for dealers and lenders that reduces the time to complete a vehicle purchase transaction by hours.  For more information, visit www.elendsolutions.com.

Contact: 
Media Relations 
Melanie Webber, mWEBB Communications, (424) 603-4340, melanie@mwebbcom.com 
Crystal Hartwell, mWEBB Communications, (714) 987-1016, crystal@mwebbcom.com

Index from Kerrigan Advisors shows high inventory levels, gross margin compression, and weak sales forecasts depressing public auto retailer valuations

Irvine, CA, May 18, 2016 – Kerrigan Advisors today announced that The KAR Index™ (The Kerrigan Auto Retail Index) has dropped 9% - from 496.82 to 452.49 – in just the last two weeks, indicating depressed public auto retailer valuations. The KAR Index™ attributes the sharp drop to higher inventory levels, gross margin compression in new vehicle sales, and weakening retailer sales forecasts.

“This is a continuation of a volatile first quarter” said Erin Kerrigan, Managing Director of Kerrigan Advisors.  “After far outperforming the S&P 500 between 2009 and 2015 by over 700%, gravity is starting to set in. With sales growth slowing, auto retail will be a much more competitive industry going forward, likely resulting in lower earnings growth.”

The latest KAR Index™, which is a monthly index for the auto retail industry covering the seven publicly traded auto retail companies with operations focused on the US market, shows:

• Weakening sales projections and inventory surpluses are having an impact on the publics’ forecasts, contributing to declines in their share prices.
• Five of the seven publics – Asbury Automotive Group, Group 1 Automotive, Lithia Motors, Auto Nation, and CarMax - reporting drops in net income in the first quarter of 2016
• Margins for new car sales are under pressure from high inventory levels, more internet sales channels, and increased consumer awareness.

“Although the publics’ share prices are depressed, there is a silver lining: auto retailers have been taking advantage of the dip by repurchasing stock, allowing them to decrease the number of shares outstanding and increase their EPS,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors.

The KAR Index is designed to help public and private auto retailers understand the true value of their dealerships, while also providing key insights into factors influencing valuations of these public companies, with broader implications for the auto industry as a whole. To access the KAR Index™, click here.

Kerrigan Advisors also releases The Blue Sky Report™ four times a year and includes Kerrigan Advisor’s signature blue sky charts, multiples and analysis for each franchise in the luxury and non-luxury segments. The multiples are based on Kerrigan Advisors’ view of franchise values in the current buy/sell market and can be applied to adjusted pre-tax dealership earnings to estimate blue sky value. To download The Blue Sky Report, click here.

Erin Kerrigan is Managing Director of Kerrigan Advisors, and is a recognized industry expert on dealership valuation, real estate and buy/sells. A sought after commentator on automotive retailing topics ranging from consumer auto buying trends to auto retail consolidation to private equity in auto retail, she has keynoted numerous automotive conferences and her analysis has appeared in publications such as Automotive News and the Wall Street Journal.   For a recent video of Erin’s commentary on the market, click here.

About Kerrigan Advisors

Kerrigan Advisors is a national dealership buy/sell advisory firm focused on providing a high level of client service for dealership sellers. Led by a team of veteran advisors who have represented transactions totaling over $2 billion dollars in automotive, private equity and investment banking, Kerrigan Advisors customizes each sale process to maximize the seller’s transaction proceeds. With the most comprehensive buyer database in the industry, Kerrigan Advisors has the industry context and expertise to match each seller with the right buyer.

Each quarter, Kerrigan Advisors publishes The Blue Sky Report™, a Kerrigan Quarterly, which is the auto industry's most comprehensive and authoritative quarterly report and analysis of dealership buy/sell activity and franchise values.  Kerrigan Advisors’ Managing Director Erin Kerrigan, who authors the report, is a recognized industry expert on dealership valuation, real estate and buy/sells, and is a frequent speaker at leading auto retail events and conferences, including NADA, JD Power Automotive Roundtable, AICPA, NADC and Driving Sales’ President’s Club. She has also been a keynote speaker for events hosted by American Honda Motor Company, Audi of America, US Trust, Ohio Automobile Dealer Association, and SunTrust Bank and has led webinars for NADA and Automotive News.  Her expertise is also featured in a monthly column for Dealer Magazine. 

Kerrigan Advisors Media Contact:
Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 424.603.4340

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