Galpin Ford Standardizes on Market Scan's Profitcenter; Cites Increase in Deals and Higher Profits per Transaction
WESTLAKE VILLAGE, Calif.--June 24, 2003--During the past few years the automotive market has seen a shift that has created a stronger balance between leasing and purchasing. This shift has presented an entirely new set of challenges for dealers striving to create the best deals for their customers and the most profitable deals for their business. As with leasing, auto dealers know that their biggest retail challenge is closing the deal. More and more, the primary reason most deals don't close is due to the upside down equation presented by most car buyers -- negative trade-in equity combined with a small down payment.
Galpin Ford, in North Hills, California, faced these same challenges over six years ago when it selected Lease Prophet(TM) from Market Scan Information Systems, the leading provider of financing software solutions for automotive dealers, to help its stores conduct business more efficiently and more profitably. As the market changed and the company's needs in retail financing grew, Galpin Ford decided to conduct a thorough review of automotive financing software solutions since their original Market Scan solution focused solely on leases.
"Lease Prophet from Market Scan has allowed us to make many more deals in the six years we've used the solution, and these include deals we wouldn't have made previously because we didn't have access to enough accurate information," said Andy Graff, leasing manager for Galpin Ford. "More important, it has helped us increase the profit we make on many lease deals. There is no question that their solution has paid for itself many times over."
The Evaluation Process
With more of its business coming from retail, Galpin Ford sought a comprehensive solution that was geared for leasing and purchasing, and that would have an A-B Pencil tool that could quickly compare lease vs. purchase options. While cost was an issue, the overriding factor in their decision was functionality. In seeking a solution, Galpin Ford identified four critical criteria:
1. The system must provide accurate and comprehensive retail
financing information
2. The data on lease financing options must be inclusive and
reliable
3. The software must provide a mechanism to allow sales managers
to quickly switch from lease options to purchase options and
vice versa
4. The solution must upload and integrate with Galpin Ford's
inventory, a time intensive process if done manually
The first step in the process was eliminating vendors whose solutions did not meet these criteria. Galpin Ford narrowed its search to Market Scan Information Systems, Performance Leasing Systems, Inc., and LML Technologies, and invited each company to demonstrate their products on-site using either Galpin Ford's equipment or loaner PCs. A Market Scan sales professional brought in a fully-loaded laptop and spent several hours over two days with the sales managers. LML Technologies sent their sales representative to the dealership numerous times over a 30-day period to review their system with Galpin's sales managers. A Performance Leasing Systems representative set up their product in a conference room for a full day to demonstrate its features and functions. During these presentations, the software was tested, used, and put through its paces by nearly every sales manager at the Galpin stores evaluating the solution. This was a key factor in the process as sales managers had a voice in the decision.
"Every dealer considering an automated financing solution should conduct a head-to-head evaluation designed around their unique needs," said Graff. "By using the system, your sales managers can truly evaluate its impact on the business and whether the software adapts to their processes, rather than having to change your business to match a vendor's software."
The Decision
After an intensive evaluation spanning more than 30 days that involved virtually every sales manager in each of the Galpin dealerships that planned to use the new technology, the company selected Profitcenter(TM) from Market Scan.
"By far, Market Scan has the best functionality of all the systems we evaluated. Their lease/retail options, inventory integration, A-B Pencil, and the quick switch from lease to purchase in their Profitcenter platform are unmatched," said Graff of their decision. "And, Market Scan is the only vendor that truly understands the retail side of the business. Despite their beginnings in leasing, the company clearly anticipated the growth in retail sales and acted to ensure they had the solution dealers needed. I know with Market Scan I have accurate tracking of every factor for all retail programs available on the market -- from rate, to rebate, to advance and more."
Graff added that Market Scan's solution provided enough flexibility to allow dealers to use the system without changing their business processes. With Profitcenter, sales managers can structure and sort deals in virtually any number of ways including a specified profit figure, maximum profit, a specified customer payment, a specific vehicle, and many others.
Galpin Ford standardized on Profitcenter and installed 13 CPUs at each sales manager's desk along with a flat touch screen with OmniView, a general-purpose data viewing/editing utility. Since space was a consideration, the company opted for the slimline CPU. Graff indicated that Galpin Ford is considering adding Market Scan's Quik Sales Kiosk since its functionality and appearance are appealing.
"Profitcenter gives us the tool we need to overcome the number one reason for not closing deals -- how to handle negative trade-in equity with a small down payment," said Graff.
Using Profitcenter, sales managers simply enter the customer's information including the amount they have to put down, the status of the trade-in, and the type of car the customer desires. Within seconds, Profitcenter identifies the exact car on the lot from inventory and structures both lease and purchase options that maximize the dealer's profits while meeting the customer's needs.
About Market Scan Information Systems
Founded in 1988, Market Scan Information Systems, Inc., headquartered in Westlake Village, Calif., is known as an innovation leader in financing software solutions for automotive dealers. Additional information about the company is available through 1.800.MKTSCAN (1.800.658.7226).