The Art of Facilitating Car Ownership

A good credit score has a massive impact on a car loan. On this note, could you shed light on purchasing new vehicles with a less-than-stellar credit score?

When financing anything, credit is crucial. The process is similar to that of buying a house. The process may be tedious for someone with poor credit, although they can still finance a vehicle. The lender may require a higher down payment to approve the loan, and sometimes a cosigner is required. They may only get approved for a smaller amount which determines the vehicle the customer can purchase. For example, we have seen a few customers interested in purchasing a high-end vehicle such as a BMW or Mercedes Benz, but due to poor credit, they may only be approved for a car under $30,000. There are always loopholes to financing, like putting more towards your initial down payment or having a cosigner. Thankfully due to our relationships with multiple banks, we can help many people obtain high-end vehicles even when the credit is not stellar.

Buying a vehicle is one of the biggest financial commitments people make in their lives. What tips do you suggest for purchasing a new vehicle within a price budget?

Budget varies per customer, but when committing to a vehicle loan, there are a few things consumers can do. Number one, I would say to research the vehicle they are interested in. Knowledge is power and knowing its market value can save you a lot of time and money. Focus on what you need from the vehicle rather than buying an expensive car. To prepare for financing and have the best rates, it is always a good idea to work on your credit and have an initial amount for your down payment. Banks will also require proof of income, so it is good to have everything in order before you start shopping around.

“We are living in a revolutionary time, and there will be many upcoming technologies to embrace, from going fully paperless in the dealer process to fully adapt to EVs. Eventually, automotive companies will not have a choice but to embrace it”

Cryptocurrency is hailed as the future of finance. Could you list out some major advantages and disadvantages of crypto when it comes to purchasing a new vehicle?

Once, we had a deal with Bitcoin, and honestly, it was the easiest and fastest transaction we ever made. There is no question that crypto is the future of finance. However, many people are not ready for it yet, and we still have a long way to go before it becomes standard. People still prefer to use traditional payment methods, especially older generations who are not as familiar with cryptocurrency. One of the advantages is that it makes the process faster and easier for both the customer and the dealer. I would say the disadvantage of cryptocurrency is that it is unstable. Think of it as the stock market. The value of crypto may dramatically drop, as we saw happen earlier this year, and you may experience some loss.

How would you describe your role at 26 Motors in leading and transforming the automobile dealer industry?

We have been transforming the industry from the day we started. We saw high demand for luxury cars with people who could not get approved for one, so we focused on helping people with low chances of approval obtain the car of their dreams, prioritizing customer service. We focused on the shopping experience, which is something that no other dealership has done. People want to feel special, and buying a car is one of the biggest commitments anyone can make, so we roll out a red carpet and pop confetti for our customers. I wanted people to have a grand experience and feel at home when they buy a car from us, not because we are better but because we care and treat everyone like family. I may be leading multiple operations and working closely with every department, but I see myself as part of the group. I am no different than my customers or employees. I do not see myself as a CEO, but as a regular guy who is trying to do the best he can with what he has and learning something new every day.

Is there an emerging novel technology in the automotive space that you are optimistic about? How is it going to enable automotive companies to step into the future of mobility?

There are many technologies already in place. For example, going paperless and remote financing, which speed up the process dramatically. We are very optimistic about the upcoming EV technologies, for example, the Ferrari SF90, which is the first Hybrid Ferrari pushing 1,000 hp. We are living in a revolutionary time, and there will be many upcoming technologies to embrace, from going fully paperless in the dealer process to fully adapt to EVs. Eventually, automotive companies will not have a choice but to embrace it. We will still focus on luxury vehicles as they evolve and keep flowing with the changes.

As an ending note, what is your advice for other senior leaders working in the automotive space? How can they extract the full potential of automotive technologies?

I would advise other senior leaders to learn more about new technologies that modern dealers use these days. Using platforms like Dealertrack, going paperless, and accepting easier ways of payment can be more efficient. Small things like using an iPad can speed up the buying process. Staying up to date with the current market and technologies and getting out of your comfort zone.