0:00
/
0:00
#416 - From Family Business to Free Agent: A Dealer Succession Story
#416 - From Family Business to Free Agent: A Dealer Succession Story
0:00
0:00
0:00
0:00
About this episode
Navigating the complexities of dealership succession, Nathan shares his journey from working in his father's buy here, pay here dealership to becoming a free agent. He discusses the challenges of not taking over the family business and instead acquiring a new dealership from friends Don and Stephanie Isaacson. The conversation dives into the intricacies of business valuation, the importance of succession planning, and the realities of managing a dealership portfolio, including dealing with unexpected vehicle issues. Nathan's story offers valuable insights for dealers facing similar transitions.
Topics:
grenade
Cars:
Jeep Cherokee
What happens when the first generation won't let go?
In this episode, we sit down with Nathan Smith to unpack one of the most common—and painful—challenges in the Buy Here Pay Here industry: dealership succession planning that goes sideways. Nathan shares his story of working for his father, being ready to take over, and watching it all fall apart when his dad wanted out but refused to structure a deal that actually worked.
Then we flip the script. Nathan found a better path forward by partnering with a seasoned dealer who was ready to exit the right way. We break down how that transition happened, what the first 90 days looked like, the unexpected challenges (like inheriting a portfolio with short warranty terms), and why taking over an existing store with repeat customers changed everything.
We cover:
Why so many boomer-generation dealers can't exit successfully
The real cost of trying to take 100% off the table
How Nathan structured the buyout with a seasoned dealer
Managing inherited customer relationships and portfolio risk
The power of starting with 47% repeat/referral business
Why multiple rooftops aren't always the answer
Collecting 98% of an inherited portfolio (and why that matters)
If you're thinking about succession—whether you're the one trying to exit or the one trying to take over—this episode is required listening.
Support the businesses that support the podcast
Buckeye Risk Services
Reinsurance, tax planning, and long-term wealth strategies built specifically for independent dealers.
BlytzPay
Buy Here Pay Here payment processing with fast funding, text-to-pay, and real dealer-focused support.
Ituran GPS
GPS and payment technology for BHPH and retail dealerships focused on asset protection, recovery tools, and customer management.
Follow & Connect
Website: https://www.theindependentdealer.com
Email: [email protected]
Facebook Group: @independentautogroup
Luke Godwin: @lukegodwin
Jeff Watson: /sendtojeffw
Like, subscribe, and share this episode with another dealer who needs a fresh perspective.
Filter:
|
Technical
Too Afraid to Ask
Car
Jeep Cherokee
"And then there were a lot of Jeep Cherokees out there and you know the four cylinders great the six-cylinder is not there were a bunch of them out there"
The Jeep Cherokee is an SUV known for being good off-road and practical for everyday use. It comes with different engine options, which can change how well it drives.
The Jeep Cherokee is a compact SUV that has been popular for its off-road capabilities and versatility. It is available with various engine options, including four-cylinder and six-cylinder variants, which can affect performance and reliability.
Term
grenade
"Oh my god. He's grenade and it's grenade and it's an extra versus neocadius"
When someone says a car has 'grenaded', it means that something in the engine has broken very badly, causing a lot of damage. It's a way to describe a serious failure.
In automotive slang, 'grenade' refers to an engine or component that has failed catastrophically, often resulting in significant damage. This term is commonly used when discussing performance cars or modified vehicles that push their limits.
Select text to request an explanation
So is he one running your dad's store now?
He is, yeah.
OK, so good boy.
Did that, like, displace and have a succession plan?
Is he getting the dealership?
I don't know.
So that would be crazy, right?
So what?
That would have set me up a little bit.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Oh.
Hello, and welcome to the Enda Penden Dealer podcast.
Luke, have you ever wanted to get in to buy here, pay here?
No.
I was born in, I just fell in, I was born into it,
and I would love to figure out a way out of it.
Actually, I'm getting out.
So there are multiple ways out, Jeff,
and there's multiple ways in, apparently.
And this is a great example from Dayton on how to get in.
And it's a great example from Don and Stephanie
of how to get out.
Yeah.
We joke around about, you know, you had a PhD,
but I guess, just like Nathan, you had a PhD, PhD.
PhD, PhD.
How do you say that?
Papa had a dealership, and then Papa had a dealership,
may have gone wrong.
Papa had a I hear, pay here dealership.
Yeah, that's right.
So very interesting, you'll hear in Nate's story
of how he grew up in a dealership,
won't give away too much, but he ended up not buying
the dealership that he helped grow.
And I think we do have some listeners
that are in that situation where you might be growing
your parents, your dads, your grandpa's dealership,
but it might not be the one for you long run.
It doesn't have to be, right?
So super interesting story here from Nathan.
Yep, stay tuned.
Listen, there's a lot of good information here
brought to you from the BHPH forum.
So a little canned stuff, but it's really good.
So I worked for my father at that time,
and I ran the business for him.
He was kind of like the money guy,
and I ran the business and did that for several years.
And he decided he wanted to retire.
I feel like a deja vu of myself in this situation.
Very similar situation.
My dad says I want to quit,
and he didn't want to pass it on to me.
So I said, okay, I got to have something to do.
So friend of mine, don't hide this.
Yeah, yeah, yeah, yeah.
This is a half hour podcast,
so we're gonna have to dig into that a little bit more.
So at the time, when you were in my 20 group,
you and your dad would come.
You were running everything.
You were the brains, he was the money.
But your dad had a lot of other stuff going on too, right?
The carpets, I think someone was running
a pizza joint at the time.
That you or your dad?
That's Joe Mock, right?
He was running a pizza joint as well.
There was another friend,
we were private investors on that one,
but we did have the,
we had a flooring center that he ran,
and then we had...
Not an auto flooring, but actual flooring.
Floors.
Diamonets, okay, yeah.
That goes with car business.
Yeah, very similar.
Not very well.
You were doing all this stuff, you and your dad, and...
Rental properties,
rental construction companies.
So, and I know you got out of the business,
is that when your dad decided to close down the dealership?
No.
Or you got out full.
You saw the writing on the wall.
He got ready to retire, he straight up with me.
Great guy.
He just said I'm ready to quit,
and I said, oh, I worked there.
Yeah, yeah.
Yeah, so, I mean, like,
that's understandable.
Definitely different than what happened in my situation.
So, when that happens,
I'm sure you had a conversation and said,
well, you know that, Daddy,
I've been working on this thing,
and I'm the one that runs it.
Can I buy you out?
Okay, and at that point, what happens?
Well, at that point, he says,
I really don't want to do that
because I really want to just get all my money, and...
So, again, this sounds exactly like where I was.
It's okay, I just want my money.
I just want my money.
Along with every other guy in that room
we were just in, I was there,
and along with Jeff Watson, you'd like to have your money.
So, Wade, how did he get his money?
He didn't.
God, so, so that is really...
I mean, really, it's still running.
He's still trying to figure out what he's gonna do.
He doesn't know how to exit.
Correct.
So, he told you I want Al,
and no offense to your dad,
he's such a great guy.
He taught me so much in those 20 groups.
Yeah.
But he was like, hey, I want Al,
and you're like, okay, cool, can I do it?
And he's like, no, but I'm gonna do it
some other way, I don't know.
Right, okay.
Hey, guys, just to jump in and talk about
Buckeye risk services.
They've been one of our sponsors forever.
They're great to the industry.
They're one of your sponsors, you don't even know it.
Every time you go to a convention or something like that,
they're there helping out, isn't that right, Jeff?
Yeah, absolutely.
I have not seen a company so willing
to get behind the dealers from an education,
from a support standpoint.
I mean, there's a handful that we see in our sphere
that are very active and always have our back,
but Buckeye really sets the standard.
So when you're looking for a reinsurance company,
if you've decided it's time to get into it,
you've got to call the guys and girls over at Buckeye.
I promise you will not regret it.
Yep, reinsurance, four savings account,
wealth building, tax playing,
all these things go together, so call Buckeye.
And that's where we still are.
Seems crazy.
You know what's so interesting?
Is this is something we hear continually
with, how do we get out?
How do we get out?
I'm gonna die at my desk.
I'm gonna die at my desk, but you know,
your dad and my dad have options of getting out,
but sometimes they're so stubborn,
they don't want to take the option.
Now, my dad convinced me to wind it down with him.
I mean, he wanted his money now,
but he's in the same situation he was, right?
What happens?
I'm not sure.
You're not sure, okay.
I mean, that's simple enough, I mean.
The message for dealers listening is the same advice
we just gave our friend in there at the lunch table was,
don't think you can take it all off the table.
If you are the father listening and you have kids
or you have a manager, you have some sort of secession
or guy you think you're gonna hand this down to,
you can't take it all off the table.
Just know that whether you sell the accounts
or whether you pass it down to somebody,
you're gonna take a haircut.
You're gonna take an architect.
You're not taking 100% on the dollar.
So just accept the fact that
if you gotta take a million dollar portfolio,
sell it for eight.
If you got a 20, sell it for 18.
Like, set your kid or your manager up for success.
We just see so many times when the first generation
thinks they should just take it all,
put it all in the back of their kid
who's gonna pay him out 110% of princia.
It just doesn't happen.
But even over time, be willing to take it over time
because you could have wound him down
as you were building your portfolio up,
which would have been his best exit strategy.
But sometimes it's hard for,
I don't know, it must be this boomer mentality.
Okay, I'm gonna spoil.
It's a boomer, it is definitely a boomer.
I think it is, that is really where my head goes,
is it is a boomer mentality of I can't give up anything.
I can't give up anything.
I gotta get my principal, I gotta get my interest.
If I've got a 10 million dollar portfolio, that's okay.
You gotta stay on the bills.
Did you have a stepmother involved?
I did not.
Okay, you throw that in the mix
and you're really in some situation.
Yeah, so that's what I think is going on.
Can't stand to take that little haircut
and you're going to take a haircut.
If you sell out, you're gonna take a haircut.
Doesn't matter what you're doing.
But I feel like what we did between Don and myself,
so what year is your best way to go?
What year did your dad come to this?
You're gonna say early in 2023.
Okay, so this is recent.
Yeah, it's very recent.
Okay, and so did you stop working for him right then
as soon as that?
I did not.
No, what I did as I was working on the business plan
to buy out the Isaacsons, I was also transitioning
and I took employees that I had within my father's companies
and started moving them around
and positioning them for success as best I could
for my exit, I took the guy that is named Jason,
great, great guy I've been with since 2008
and I taught him everything I could teach him
in six, seven months about what I do on the back.
So is he one running your dad's store now?
He is, yeah.
Okay, so good boy.
Does Jason have a succession plan?
Is he getting the dealership?
I don't know.
So that would be crazy, right?
So what?
That would upset me a little bit.
You hinted at two pieces there.
You said the Isaacsons, you said Don.
So we know Don Isaacson, who's also a friend
and a toy member, great dealer.
You found a dealer who wanted to get out,
did not have someone to pass it down to.
Correct.
Okay, so you got a step.
Yeah, so how does this?
A step inheritance here from the Isaacsons, let's say.
And how you slid in.
How did that, was it just floated around
that you know Don was looking to get out?
Don and I were actually, we were good friends before.
So we had gotten to know each other.
We were both from the Knoxville area
and Knoxville, Tennessee, Govalls.
And we are in Tennessee, it's like a Tennessee theme.
The whole Tennessee thing this week is cold.
We didn't do that on purpose, I apologize.
It's snowing in Saint George as well.
But we knew each other from auctions,
and we became friends.
We went to dinner and went to lunch together
and ate as a family together.
But he was after me for a long time. Hey, you need to buy me out. Hey, you need to buy me out
Hey, you need to buy me out and I was already with my dad's entire
Yeah, thanks. I said, I can't handle one more thing. I'm running five businesses right now. I'm at my max
I can't do anything else. So
My father comes to me and says yeah, this this. Oh, yeah. Hey Don
My I'm a free agent
How far away I'm trying to turn away you little
Yeah, sorry and I owe money all this stuff. Yeah, what um
How far away it was Don store compared to your dad's so 75 miles
So it I mean, it's not the same market, but is it the same market? You know what I mean? Not at all
Okay, I thought it would be it's not at all where where we were both of our other dealerships were in really rural areas
in
middle Tennessee and
So I moved to North Knoxville, which is more urban
So there was a little learning curve for me right there
Yeah, and I came in knowing that but he had a staff already in place who they knew what they were doing
I did a few little tweaks, but man ground right now. Yes, and he's a good operator
He's a very good word staring into a distressed. No, I'm gonna save this piece
I was stepping into an already successful company with fantastic
Staff and play a real quick break to make sure you guys know about blitz pay
It's who I use to take all the payments at my buy here pay here dealership
We've been with them for almost three years now, and it is absolutely amazing. It's great. Yeah
the product is so simple even an idiot like me can use it but
You know when even when my collectors out and I'm just taking a phone call here or there
No matter where I am I can log into blitz pay and I can take that payment
I can see the customer's texting in and say hey, can you run this or whatever's going on?
It's always on top of it and the money's in the bank almost the next day
And that is to me so important and the support is great if we do have a charge back or a dispute
We get an email that says hey there was this dispute and then their team goes to work to help us resolve it
It doesn't they don't just dump it back on your table with some random
Notification or email that you barely ever see like my previous processors. Yeah, it's so helpful
And a lot of times it's because our our customers did something wrong
But when it's not they'll fight to the to the end with you and get that money back in your account
Yeah, so give them a call the guys and girls over at blitz pay great partner to have
Definitely an essential tool to have if you're a buy here pay here dealer
So we're talking about that here because the way I see it Nate you had
Options right you had a ton of options you could continue to work for you dad
Just keep your mouth shut and ride that out and then go yeah, whatever you could jump ship and start your own thing
And go talk to one of these great lenders in here and gain some capital and and spin something up from zero
Or you could do what you did which was you stepped into a high volume, right?
And they were doing what a hundred a month or some how much I'm what they're doing 65 about the 65 a month
large portfolio and your
On the buyouts and 12 billion books. Yeah, so it's a big 1120 counts. Yeah, that's a big nut
Yeah, you had a big old nutcrack there. You're biting off a lot. Yeah, super interesting those options
Yeah, like so, you know, we talked about you and Dahmer friends and then this came up
How long does it take you to iron out the numbers in a situation that that took a minute?
And what was your due diligence? I mean like because you don't just walk in there and someone you know if someone
Came to to to me and said hey Luke. Could you look at this at this dealer?
I'm looking at mine. It it's a ten million dollar portfolio
That that ten million dollar portfolio in one instance could be worth ten million dollars in the other instance
It could be worth six million dollars. Correct. What is that new diligence process?
So like how long did it take to put the we started talking in February and
We came to an agreement in September. So yeah, yeah and seven months
Yeah, and so we didn't sign papers until 1231 of 23 which makes total sense. Yeah break it
It's this year this calendar year. I am yeah, so we did that intentionally
Yeah, we were we were we were pretty well finished by by December. So call it ten months
What we thought we put it together and that's in it. I mean really and truly on a deal on a business deal that size
That's not crazy. I thought it's pretty fast. That's pretty fast
So it makes me ask you and you don't have to answer all the questions because obviously I get some of its private
But how many were there any terms that were kind of sticking for you?
Did you guys have any disagreements on things where you said hey, I'll give you X amount?
I think it's worth this. I'll pay you this percentage of what we collect or here's the carry-back interest
You know do like I would
Don Isaacson is a genius
And he kind of came with the paint this like oh that sounds really high and he'd go but over here
I'm gonna do this. Oh, that sounds really low. I want this okay
The guy just get in his head. He had it kind of figure out how he wanted it. Yeah, and there were not a ton of disagreements because
He
Yeah, it was fair and he's been planning don's always don's always to me seem to be a very fair guy very fair guy
And also very smart Stephanie as well. I mean like both of them. They yeah
They both of us in this podcast. Yeah, but both of them under understood the business and and their numbers
I'm sure we're good because I mean we've seen their numbers in 20 group forever and they they ran a good business in business
Yeah, yeah, so let me ask them our details. Do you come in and you know
So so we can help those that are listening kind of understand that the way these would be structured
You would come in and you would say
Okay, I'm going to now be boots on the ground the day-to-day operator, and I'm gonna get a salary for that
Mm-hmm. Okay. I'm gonna pay you out everything we collect
Up to X amount of dollars or or like that is a way to do it. I don't say how we did okay
That's what I'm here. I started my own company your own finance
Every my own car lock. Okay. Oh, yeah dealer license dealer license. Okay. Not I and his I'm not buying his
I'm not buying his customers. I'm not buying his portfolio. I'm not buying anything of his interesting
Okay, but the real reason that you want to do that
I don't see a lot of liability liability my god come somebody comes to me going near your suit
I'm not I didn't do anything. I didn't do anything. Yeah, I'm the new owner. Okay. You bought the business
You bought the problem. So that's one reason to pay another reason to do it. I
wanted certain vendors that I wanted and
You're contractually stuck with their vendors if you don't do that if you so yeah
In fact one of my one of their vendors tried to sue him. He's like I'm out of business
Come to me. Oh
No, my it is not a business here. I'm this business because a lot of because it because a lot of these contracts if you go out of business
They terminate. Yeah. Yeah, so you started a dealership on January 1. Yeah, let's say
The his existing dealership closed down
Yeah, or phased out the dealership closed down do I know it's a hidden this yeah finance company continued to carry the note
So you popped up a new sign on day one. Hmm. And you you're playing his
Finance company out correct for a fee. Yeah, okay. Yeah, okay
So you're collecting something you now open your new dealership as far as the customers know for all intents and purposes
No, they're saying thing. They're making the time change a little bit. They don't know the snap stayed the same the building stuff
Okay, so when they come in they make their payments or they want to trade in or something like that
They're doing business with you guys in our seven groups same operation. I rare
I'm rarely seen I slink around people in who I don't know you guys you rebook those accounts in your in your new
RFC you need a capital correct. So how does that coming from that's coming from Don and Stephanie Isaacs, okay?
Yeah, so
What he's done and this was his grand plan you collect all my money
I'll finance you so you can keep going and and charge you an interest charge me interest me
Yep, that is competitive to our market. I'm sure it's a little better than market
I'll be honest with you and that's where so there's the things where he said you're gonna have to do this this this
That's it. Yeah, I'm like whoa. No, no, no when I'm giving you weight, but I'm gonna loan you money at this one
Okay, sold with covenants, I'm sure these guy deal agencies keep a track of stuff and and now those
Those are similar to your interest standards. Sure. And I think they should be. Oh, absolutely keep everybody. I think covenants are
Man, that's have covenants. Okay. That is such. I mean, but really that's such a great way to structure about
Oh, yeah, and and the way for Don is Stephanie to continue to make money
Because you're you're collecting out your portfolio and you're getting that money that you put out for so long
But then you just get the loan and back out. Yeah, you know and make the money without the headache
Yeah, so so so so from from a logistical standpoint though
They're collecting are they collecting probably more money than what you're borrowing back for mall in new
Originations, right? No, it makes a yeah. Yeah, I don't say as I would hope so as they were our sin is yeah
Yeah, that's down goes on them all but yeah right now. Yeah, yeah
Yeah, because because if for them to cash out anything they would have to have a little bit of a difference, right?
I say they brought in with that size of accounts. They're bringing in you know a million dollars a month in payments or something
In principle and interest
You're borrowing not that much back every month on your new origination. So right? Yeah, so
All right, did you change the business model at all because you're two years in not much, okay?
So guys that's something else that should be mentioned right now Don and I being friends both of us being
NIA da members both of us being in 20 groups. We ran
Extremely similar operation extremely similar and in fact, that's how we got to know one another is at every auction
We're bidding this we're only two idiots bidding on the same car
Every yeah, and you're just going all right, so that's how we get to know one another
But once we get to talk about wow do we run the same dealers? Yeah, and so I
Would not just come in and try to take somebody over that I that was not an ADA member at a minimum
But um, we just ran our dealership. So said all the way I came in it probably was turd suit
So we're two years in now essentially, right? Mm-hmm. Are you selling the same volume?
That he was selling I'm not okay because of capital
He was selling 65 a month. I lowered mine to 45 a month. Yeah, okay. That's still a lot of cards
Yeah, yeah, it doesn't want to borrow that much. He wants to take a little bit off the table
There's probably so much capital. He wants correct
Yeah, he puts he puts a limit on the capital so I go well
I can't afford to sell 65 a month, but I can sell us a 45 but selling the 40 is a great number like I mean
One location selling 45 a month. You're gonna be you're gonna have a thousand accounts before you know it
That's correct. So you then have a ramp up period, right?
A 40 a month for the next five six years
You're gonna max out at 600 accounts or something probably a thousand probably thousand counts. I for you get there at 45 a month
Yeah, and then you're gonna start paying down principal. Yes at what point does this transition to where you say now?
I need to start exiting
From a deck leverage standpoint, right? That's exactly so you'll ramp up to whatever the you know
Terminal velocity is with those accounts and then you'll start making a large principal reduction or do you have principal reduction now?
I had my plan
Is that I I'm hoping my RFC is big enough at some point to take the debt on
Yeah, if you follow that yes, and so that's kind of my plan there from a debt reduction standpoint
Then then you're worried about taxes stuff. I mean you keep I can't just
Throw every dollar at principal debt, but yeah, then we get Tomahawk's by the IRS
So it's a long long plan that that is and I it's gonna pass quickly
And I'm sure you're using CPI to help with that definitely as well. Oh, yeah
Mm-hmm a lot of people don't think about that the CPI is such a great product for debt reduction. Yeah
and
And I'm sure you have good ways to it's Tennessee friendly to to CPI very friendly. Yeah, yeah
What's so interesting a 30-day you've got the 30-day rule
That would be that I'm not allowed to charge for 30 days. Yeah, so that that park out of so I'm gonna get around to it for 30 days
We don't even know they don't have insurance for 30 days, so we're good
I see it, but I think most states do that you leave without it and maybe all their first payment
Yeah, yeah, yeah, so what are some of the other lessons like what's a what's a what's something that didn't go is planned
Or what was it was there any curve balls that came up where you like I didn't see that
Yeah, there's a couple that if I was if anybody was gonna do this. I'd say hey watch for this
One thing hidden in the portfolio which freaked me out and Don goes
It's fine. It turns out it was he was right
But there was a period of time where he had so lots and lots and lots and lots and lots of kids and Hyundai's
Man, we hear this story
Yeah, oh no, but it turned out okay, you know, it still worked out
And then there were a lot of
Jeep Cherokees out there and you know the four cylinders great the six-cylinder is not there were a bunch of them out there
And so I'm freak out mode one. Oh my god. He's grenade and it's grenade and it's an extra versus neocadius
And the one those granades. So what's funny is you don't know that until you know it
No, no, no, and if you got you've got a thousand accounts on the wrong
1083 is another one I took over you you sit there and look at every single account if you want to hammer down
But you might notice. Oh, you know what there are a bunch of Hyundai's in here
Then you're gonna go back into a study on that man. What happens is a motor blows and you're like, oh
How many of these are in there?
But what was it his service contracts and his reinsurance company that paid for those if they were still at warranty and that that was
You know, there doesn't know the problem. He had a short warranty term
I said and so I was having all of a sudden you got on a policy expense, right? Yeah
So wait wait wait wait wait wait wait, but that's his portfolio in his cars
So how does that affect you if he has a key and I don't know where I need to charge it off is
Sorry, I'll tell you where it affects is
We all have those customers that pay great. They're awesome. They they're just out of warranty the motor blows and you're having to trade
I need to trade them out
Yeah, it makes total self. What do I have to do? I have to buy that contract out
So I'm buying a ten thousand dollar contract on a five hundred dollar car to get the customer
I mean, I have to you know, you don't have to buddy, but I lose the customer and and you say give that back to
See and come buy one for me, but I think doing it the right way you probably
Figure out a way and you know and don probably guess. Yeah, I would have called Don touch
He haven't parked on the sign there. He needs to pick it up. I don't know this person
Never seen him before
So do it the right way you're exactly right Luke that and there again. Yeah, I could have done that
But especially this customer he's had for five years and they're just
450 a month. Oh, whoa, I'll get that customer and you go Duke will I pay
$8,000 for that customer because that customer may stay forever and so you make you make it back
I couldn't help you put an engine in that car and you but the car back out right?
But how scary is that the first three times you do that and you go, oh my yeah, yeah, these own books
Yeah, I could add up and hurry. Yeah, I could be out a few hundred grand before you know it
But and I'm in the hole. Yeah, but but it turned out not to be that big a deal
And that was having it buying from a friend. He goes dude. It's fine. Hey, I can see and I can see dying cuz I'm so relaxed
Yeah, there's no big deal. We got this. It's fine. I wouldn't have been as relaxed
My hair on fire still when you're fine having all that current customer
Relationship and that customer has the bad side which is obviously you're trying to save a deal
You're trying to save a bad car, but it has a good side too, right?
Cuz we think back to those scenarios you had you could have started from zero with a line of credit from a bank
But you wouldn't have had 40 repeat referral customers from day one, right?
And we are I was just telling Jeff at breakfast morning that
47% of our
Sales each month come for either repeat or referral. Wow that is 47% so crap. I'm doing half
25 I'm a start out of the bad. Yeah. Yeah, just come you just imagine me in a startup company the amount of marketing spend
You have to get to that movie the years it takes
That's true. Yeah, I mean it's just it's
That's a long as well 25 20 customers and you're spending $500 and advertising to get each one of homes
Yeah, I don't do public math, but I think that's 10 grand
So that's $10,000 of free advertising. It will I'm like very that's it's all it is
Yeah, and I know they're good customers too. So there's that it's not a crapshoot there
We don't want to continue to take the rest of your afternoon because you're about to put on a session here
Yeah, um
What is the future look like for your store?
Where I'm heading
Hadn't where I'm heading I want this thing where dawn had it before that's my goal
So we're gonna Stephanie took this thing
To you know 11 1100 1200 Cal cell in 65 a month debt-free pow pow pow pow pow
That's where I'm sorry you want to be and I want to be funding that re-insurance company like it's no tomorrow. Yeah. Yeah, and I
Have run multiple rooftops before no, but nobody never again never again not for when I was a hero run three
Yeah, never again. I'm not doing that. So ultimately I want to I want to get this business up
Stephanie had it along with my wife my wife's involved in this too. She's yeah, she's awesome. She helped me so much, but
we want to get it up to there and
We're gonna do something else. Yeah, I don't know what
I know that and I feel that and that
The last question I have Jeff I want you to take over here is
Would you ever go back and approach your dad and say hey?
Let me take these stores. That's a funny thing dawn asked me the same thing one time. I said no no, but don goes
Don't you probably get in the way you go and valuate those stores and yeah, yeah, I'm like, yeah, so
short answer
Baby, maybe it's because I don't want to rooftops. Yeah, yeah
But I'm gonna throw this out is you train the guy to run that store already I did and it's running so now these were pretty good
I said other books so I
Don't know I think I think I think you got a way out
But dad would have to be okay with the structure by Al correct, but he's already seen these you've done it
Yeah, he was I like I like that. Yeah as long as Don and him get together and talk and he's like John
Go you guys go top dad a little bit. All right. Yeah. Yeah, also without getting into too many details
I want to point out that Don and Stephanie are coming out
They at their portfolio from where from when they stopped when I took over their portfolio
We have collected
With principal interest we've collected 98 percent of that portfolio and I said this to Jeff not long ago
I mean with my with Mike like that. I I believe that I could get to 100%
With principal interest and selling the repos on my lot is cashed, right?
I think I can get to 100% right and it's it that's unheard of where we ran into the 2% that we're missing
that is coming from selling Hyundai's and Kia's yeah and just getting Tomahawk to the auction and
You just not going to and then there was in the there was some funky
Underwriting so there's done right before I took over. Yeah, that um
Thank you that could have been better. I'll lose a little easy boys. There. Yeah, it's now
Makes it stuff this portfolio before he takes over. Yeah
So, but I think I think if the Hyundai and Kia and Jeep has to land
I'm dealing with those things right now. So the Hyundai could Hyundai Kia's still anti student. They've Tomahawk to everybody. Yep
they have and so I
Got a new word this week Tomahawk Tomahawk people
So that I say that for still answers to but but yeah, you could collect 100% easily without
Having a bunch of that stuff. Yeah looks anything else. Yeah, David. Do you tape? It's so great man
I'd be great to have you here great to hear the story great to have you back at these conventions. Yes
I gotta meet you. Yeah. Now. I gotta go sit through three hours
You can come to look
Request an explanation for:
1 cars
1 cars featured
Request an Explanation
Heard something you'd like explained? We'll add it to this episode.
Sign in to request explanations for terms you heard.
Want to learn more?
Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.
Help improve this episode
See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.
Report incorrect info
Suggest better explanations
Flag missing cars