Fall is Fast Approaching: Register Now for NVLA's Annual Conference | |
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By Ken Sopp, NVLA President
As we head into fall, we’re reminded about a number of things: the approach of cooler weather, model year change-over and that NVLA’s Annual Conference is just around the corner.
This year it’s in Austin, Texas, the Music Capital of the World. There are many sights to see, amazing music venues, and fun and quirky bars and restaurants to enjoy, including Austin’s famous Tex-Mex and Barbeque. Austin will be a great city for our conference attendees!
If you haven’t done so already, please register now for the conference, On the Road Again, October 11-13 at the Sheraton Austin at the Capitol. You only have until September 19 to be guaranteed the lowest room rate starting at $199/night plus tax, so don’t delay.
We’ve put together a stellar program filled with top-notch speakers, all experts in their fields, who can address the growing challenges we face in today’s ever-changing economic environment. Take a look at an interview we did for this issue with keynote speaker, Stewart Stropp, who discusses the future of EVs and overcoming consumer concerns. We also have an update on the Ford and GM adoption of Tesla charging networks, as well as a profile from long-time member Mark Van Nest and another LinkedIn Tip of the Month from Tarry Shebesta. We also want to pay tribute to NVLA Past President and Clemens-Pender Award Winner, Fred Palmer, who passed away in July.
Take a moment now to visit the NVLA website and register and don’t forget we have sponsorship opportunities designed to extend all year long. We thank all of our existing sponsors for their ongoing support! I hope to see everyone in October!
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Meet the NVLA 2023 Conference Speakers
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The NVLA 2023 Annual Conference program will feature top-notch speakers and engaging panel discussions on the most important topics in leasing throughout the conference.
We're excited to announce and introduce our confirmed speakers for 2023!
Click here to read about this year's speakers!
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An Interview with Keynote Speaker Stuart Stropp | |
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By Stuart Stropp, Executive Director, EV Intelligence, J.D. Power
How did you first get involved in the EV field and what drew you to it?
When we (J.D. Power) realized the need for more data, analytics and insights in the EV space and started dedicating people and resources to that effort, I raised my hand as fast as possible. The idea of being on the front lines of this generational transformation is very appealing to me. After starting up the EV Consideration (EVC) Study, I now also cover the J.D. Power EV Index and a number of related EV intelligence products and services.
What are the current challenges to EV adoption, both in leasing and in general?
At a high level, the two biggest barriers to EV adoption are charging and cost. There are complex layers underlying each of those topics, and it’s interesting how polarizing both are. That said, leasing can be leveraged to overcome EV shopper reticence in a number of ways, not the least of which is through incentive resources via the Inflation Reduction Act.
What’s the best way to change consumer behavior over time?
Information and experience. EVs are new and enigmatic for a lot of people. Our data point to massive opportunities to improve consumer confidence and interest can be accomplished by 1) increasing the flow of information to shoppers about how EVs really work—how charging works, what total cost of ownership really looks like, etc. and 2) giving them opportunities to experience the products for themselves.
What do you see as the future for leasing EVs 5-10 years down the road?
As things stand now, future prospects for EV leasing are bright. It serves as a great way for shoppers to make the transition from ICE to EV and offers appealing aspects to the car-buying public in general.
Register for the NVLA 2023 Annual Conference to hear more insights from Stewart!
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Ford and GM Adoption of Tesla Charging Network
Addresses Major Consumer Pain Point, Sets Stage for Battle About Fast- Charging Standard
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E-Vision Intelligence Report
June 2023
Key Findings
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Ford and GM Address Biggest Barrier to EV Adoption: The single biggest barrier to consumer adoption of EVs has been concern about the availability and reliability of public chargers. By adopting Tesla’s EV charging network, which is the largest and most reliable network in the country, Ford and GM are clearly focused on alleviating customer concerns about public charging.
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A $7.5 Billion Question on the Future of Fast Charging: The Bipartisan Infrastructure Law introduced $7.5 billion in funding for EV charging infrastructure with a big focus on fast charging, which includes the Combined Charging System (CCS) standard. Tesla does not use this standard. Instead, it developed its own North American Charging Standard (NACS), which Ford and GM vehicles will be adopting beginning in 2024. With over 70% of EV sales soon to be compatible with the Tesla standard, the future of CCS is now in question.
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What About Everyone Else? Tesla has maintained its lead as the most-considered EV brand among consumers for the past year, with a key contributing factor being charging availability. Charging availability is also cited as a key purchase reason among Tesla buyers. How will this move influence consideration for Ford and GM vehicles and what will happen to consideration and valuation on vehicles that do not adopt the Tesla standard?
Executive Summary
Standards. They may not be the most interesting part of peoples’ daily lives, but they are the critical building blocks that keep our light bulbs screwed in, our trains running on the same gauge tracks and our financial markets moving. They can also determine the winners and losers when new technologies are introduced. Perhaps the most famous example of this is the War of the Currents, which pit direct current (DC) versus alternating current (AC) in a quest to become the dominant form of home electricity.
Today, similar battle lines are being drawn around the standards used for the nation’s EV fast-charging network. On one side is the Combined Charging System (CCS), a non-proprietary standard used in public charging stations operated by the likes of Electrify America, EVgo, ChargePoint and others. On the other, there is Tesla and its North American Charging standard (NACS). With their decision to integrate Tesla’s standard into their future EVs, Ford and GM have put two very big fingers on the scale favoring NACS. How will it all play out for consumers?
This E-Vision Intelligence Report dives into key data points trending in each monthly EV Index update, along with other data points gathered from J.D. Power studies and pulse surveys, to spotlight emerging trends and important shifts in EV consumer sentiment.
Addressing Consumer Pain Points
Before getting into the potential ripple effects and ramifications of Ford’s and GM’s decisions to join the Tesla charging network, it is important to note that the move addresses a significant consumer pain point. Lack of public charging infrastructure has been the top consumer barrier to EV adoption for the past 12 months, followed by related issues involving range anxiety; time required to charge; and inability to charge at home or work.
Tesla simply has the largest and most reliable fast charging network. At nearly 19,500 ports nationwide, Tesla added 1,292 Supercharger ports in the first quarter of 2023 alone. The next closest is EVgo, which currently has approximately 2,250 fast charging ports nationwide and added 250 new ports during that same timeframe, according to the Department of Energy Alternative Fuels Data center.
When it comes to reliability, no other provider is even close to Tesla. Through the first quarter of this year, 21.6% of EV drivers visiting non-Telsa public charging stations were unable to charge their vehicle. Among Tesla drivers using the Tesla Supercharger network, that number falls to just 3.9%.
Read more here.
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Mark Van Nest CVLE, CVLP, OCLC
I am Mark Van Nest, managing partner of MidWestern Leasing in Dayton Ohio. I grew up in Dayton, attended elementary and high school here and graduated college, while working full time, all in my hometown.
Married my wife, Bev, of 49 years in 1974. Raised three fantastic children here: Nikki, a physician, her twin brother, Jason, a vice president at Synchrony Financial, and Brian, my boss and business partner at MidWestern. After graduating from Ohio Universities, both Jason and Brian earned their CVLE and OCLC certifications while working in the family business. Those three kids have blessed Bev and I with six beautiful granddaughters. Our whole family still resides in the south suburbs of Dayton.
April 1, 1977, (April Fool’s Day) I embarked on my career in vehicle sales and leasing. It took me no time to realize this is what I was meant to do. I learned quickly that you should never stop learning everything you can about your industry and maintain strong relationships with all your clients. I have a few clients that I leased cars to in 1978 that are still with me today. I remember the first car I ever leased: a fjord blue, 1978 BMW 530i.
August of 1985, I left the dealership and started my own leasing company. Not really having a plan, I just kept working with old clients, providing all makes and models of vehicles, and the company grew to over 20 employees in 20 years. In 1987, I joined the Car and Truck Rental and Leasing Association (CATRALA) of Ohio. One year later, I was on the board and started the idea that leasing should be its own entity, so the Ohio Vehicle Leasing Association (OVLA) grew out of CATRALA. Within a few years, we grew the membership to over 150 leasing company members. I served in many positions on the board, including being president for three terms, and merging the OVLA into the NVLA as the Ohio Chapter.
Now, even with all this activity going on in Ohio, I felt the need to know more, so in 1988 I joined NVLA. Helping my wife raise three active children meant that traveling to a conference or becoming a CVLE was just not in the cards. I continued to work hard for the OVLA and I was just one of a few in Ohio that found value in membership in both organizations.
In 1995, I wrote the entire curriculum and was an instructor for the Ohio Certified Leasing Consultant (OCLC) program. OCLC was a big success and I hold certification #001. In 1997, I was one of only three lessors to ever be awarded the Glockner Award, OVLA’s equivalent of NVLA’s Clemens-Pender Award.
1996…all the kids are off to college, and I attended my first conference…what an eye opener! Accounting, marketing, vendors, supportive leasing colleagues, manufacturers. You name the topic and the NVLA conference had it all! By 1998, I am enrolled in CVLE…GAME CHANGER!! CVLE really opened my eyes to the true value of NVLA membership. The value is in the members. Anyone is willing to help at any time in any way they can. Need a car wholesaled in Oregon…Done. Help with a client in New York…Done.
I still do business on a regular basis with members I have met through CVLE. MidWestern owes a great deal of its success to the NVLA and its members. My thirty-five plus years of NVLA membership is without a doubt the best investment I have made in my vehicle leasing career.
If you have chosen this as your vocation, you must belong and participate in this organization and all it has to offer. I am proud to be a member, but I take the greatest pride in being the chairman of the NVLA education programs. I could go on and on about what membership has done for me and my company, but if you want to hear more, contact me at any time, or better yet, let’s meet in Austin in October.
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Fred M. Palmer, CVLE
Nov 1, 1936 – July 16, 2023
Fred M. Palmer, past President of NVLA, passed away unexpectedly at his home in Tuscaloosa, Alabama on July 16th.
He is survived by his wife Martha, three sons and daughters-in-law, four grandchildren and two great grandchildren.
Fred began his career in the vehicle leasing Industry in 1977 as General Manager of Creative Leasing, Inc., a small privately owned independent vehicle leasing company headquartered in Tuscaloosa. He later became President, CEO and Owner as the company grew to become the largest independent vehicle leasing company in the state of Alabama, with offices in 4 major cities. Upon his retirement in 2003, the company was sold to The Bancorp Bank, headquartered in Wilmington, Delaware.
During his leasing career, he was very active in furthering the interests of the vehicle leasing industry as a long-time member of NVLA and CATRALA of Alabama, holding various leadership positions in each association, up to and including President. Among the various industry awards received during his career, he valued the 1996 NVLA Clemens-Pender Award the most, as this award is based on nominations from his peers in the industry.
Fred was a wonderful husband, father, grandfather, and great grandfather who loved his family dearly…with Alabama football a close second.
He will be greatly missed by all that had the opportunity to know or work with him.
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MidWestern Leasing Acquires Burhill Leasing | |
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MidWestern Leasing is pleased to announce the merger with Burhill Leasing, one of the oldest and most trusted names in commercial and personal vehicle leasing in the tri-state area. The new firm will operate under the MidWestern name and will be servicing all existing accounts. The move broadens MidWestern’s reach in terms of geography and vehicle applications. It especially opens up added opportunities with commercial vehicles. This is already a growing segment of their business.
The Van Nest and Moscowitz families have been serving the vehicle leasing needs of business professionals and consumers of Southwest Ohio for over 100 years combined. Brian Van Nest, CVLE, OCLC is a second-generation lessor and looks forward to growing both customer bases. With this acquisition, MidWestern more than doubles the number of vehicles under management.
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Featured Member Benefit: Dealer Network | |
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Take advantage of the Dealer Network! Members who request to be listed as a dealer are included in a public directory with the opportunity to include the makes and models sold, as well as the geographic area(s) serviced.
Make sure that you are taking advantage of all that NVLA has to offer. Check out the Dealer Network here!
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Why Aren't More Dealers and Lenders Leveraging Credit-First Soft Pulls? | |
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By 700Credit, NVLA Member
Sponsored Content
Shopping for a vehicle comes with all kinds of stressors for a consumer – some of which can affect their relationship with the dealer and lender. The decision to require a shopper to undergo a credit verification can be stressful for many consumers – for different reasons!
Some consumers are worried about the score that will come back on the other end. Some are worried if the score will be high enough to qualify them for the car or truck they’re really hoping to get. Others aren’t so much worried about the score that will come back, but they are worried that the act of running their credit specifically will “ding” their credit a little.
Why are soft pulls so effective today?
These reasons are why soft-pull credit checks are so effective today. A soft pull credit check is similar to a simple background check. It allows the dealer and lender to review a shopper’s credit score and financial standing, but it does not impact their credit score.
Soft pulls are important to dealers and lenders for multiple reasons. Perhaps a shopper is unsure if they can afford a specific car or truck because of reduced cash flow during the pandemic. A soft pull can alert them to their status if they’re pre-approved before moving forward with financing options.
Soft pulls can strengthen consumer confidence and trust in making the right decision, and since they aren’t locked into anything they can resume shopping and even assess varying price ranges. They can also be beneficial to those who may be a little less confident about their credit standing. Perhaps they acknowledge their credit is poor, but their vehicle has broken down and they don’t have to worry about having their credit “dinged” while reviewing exactly what they can afford next.
Credit-first and soft pulls work together
The right credit-first strategy, combined with a soft-pull approach is now enabling more seamless transactions in today’s digitized world of sales. Soft-pulls work in concert with the credit-first approach and do not require a customer’s date-of-birth nor social security number. With just the customers’ name and address, soft-pulls allow an early-stage snapshot of the customers’ credit profile, and insights into their buying power before you start building any deal.
With interest rates changing more frequently right now, establishing the right credit tier and payment options early on in the shopping process will benefit everyone involved and build more trust into the process. There is nothing worse than a customer assuming or estimating the payment in his or her mind throughout the transaction process, only to learn just how much changed interest rates may affect the final deal inside the F&I manager’s office at the end.
Where soft pulls benefit other areas of a dealership
Aside from today’s digital shopping process, soft pulls can also benefit dealers in the service lane. Combined with solutions that include equity calculators, smart dealers are now easily integrating these features into their daily workflows as a way to build additional conquest opportunities.
These additional tools built with soft-pull technology are helping dealers and service managers offer quick valuation calculations to show customers how and where it might make sense to consider a new vehicle on the lot compared to the repair bill. This certainly benefits the customer to make a wise decision, but it also helps dealers conquest a customer that may not originally be theirs, along with additional used and pre-owned inventory.
Trying to build a digital retailing system for your dealership without soft pull technology is like building a car without tires. It might look nice, but you won’t get anywhere anytime soon.
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Thank you Conference Sponsors! | | | | |
