Wake up, Buy Here, Pay Here people. It's a beautiful day. Go grab yourself another cup of joe and say hello to Jim and Michelle Rhodes on the Buy Here, Pay Here morning show. Take it away, you two. Yes, good morning. Welcome. Happy Friday. Yeah. Looking forward to the weekend. Today's the last day of the LHPH Capital Summit in San Diego. Yes, can't wait to hear how it went. Yeah. I bet the weather was nice. Oh, my goodness. The weather's been great here, too. Yeah, it really has. This morning, we were outside. We turned on a couple of patio heaters, and we do coffee. It's like sacred. We do coffee time every morning and had the patio heaters on. It was like, it's getting too warm, and turned them off. It was like, oh, my gosh, it's nice out. Yeah, it's just really, really nice. It's that time of year where colors are... Coming in on the trees and the air is cool. And yard projects on the calendar for us this weekend. I've got a big bottle of ibuprofen. I've already taken a couple of Tylenol because I hit it as soon as we're done. It's a labor of love. We're having fun doing it. Well, we like to be outside and we like to, you know, entertain family and friends. And so really looking forward to it. We're expanding our patio so that we have, it's almost doubling the size. So I'm pretty excited about it. More usable space. That's right. Yep. All right. So other announcements, FIADA is tomorrow, Saturday. I believe it's the fifth. I think that's right. If you folks in Florida verify and get down there. Yeah. The next thing coming up too is the dealer summit. No, the round table thing. November. That's in November. Yeah. Yeah, we also have Steve Levine's webinar. We need to get that date. Oh, yeah, yeah, yeah. I think he said second Tuesday, but we'll verify. Yeah, we were going to talk about bankruptcy. So those of you who paid attention to some of the stuff that was going through some of the private Facebook groups around bankruptcy, and then we talked about it on the morning show a couple weeks ago. Right. It might be third Tuesday. Yeah. Anyway, find out and get yourself there for that. Steve's, you know, uploading lots of great information. We're going to upload some great information today too. You know, you were talking to, cause Jim, those of you listening a lot know that Jim loves, he's a spreadsheet nerd and he loves a spreadsheet and he loves to be able to calculate different things and, and, And to give insight into performance and all sorts of things to the dealers that he works with, or that we work with. And this is either through our personal consulting, the coaching side, or V-Aid. Right. And it's been really, really fun to, to, with V-A-T now that there's some data being collected that we can just kind of chop and analyze and, you know, figure out what, what are drivers or what, you know, what are trends or, you know, and compare. We all know, buy here, pay here. For as many buy here, pay here dealers as there are in the industry, there are business models. Yeah. I mean, people do business differently. I think what we tried to do here today was to, this is what I'm always trying to do. I'm always trying to find ways to present the numbers the way that I would have wanted to see it when I was a dealer so that I could be more informed and make a better decision. Educated decisions. Yeah. Yeah. So that's what I'm always trying to do. I'm always looking at numbers and trying to figure out how can I present the information in a way that will be meaningful and you know last night we were in the middle of a conversation and had a light bulb yeah and then he disappeared he's like uh we were doing an evening on the patio because we spend a lot of time out there and he's thinking about something he goes um um I'm gonna disappear for a little while and went into his office and was there for about a half an hour and put together this, it may be a little bit longer, but, um, and put together this table. Yeah. So what our folks are going to see is a simple little spreadsheet with calculations that are from actual dealers that are V eight members. So I picked five just because they were all in the same group and their numbers were readily available. should we talk before we bring it up? Let's talk about what it was that we were discussing and, you know, why this, because we were, we were, we were kind of talking about some of our clients and, and, you know, the data coming from V eight and about like the, cost of car and, um, the, uh, the amount down needed because one of the, one of the clients that we're working with, um, they're really wanting to boost sales and they're just not seeing it happen. And what were, what, uh, we were just like, Oh, you know, if, if you did this, you could potentially have a trajectory that's much larger than what it is you're experiencing right now, so. Yeah, and so we started with that particular client. We started with analyzing aged inventory and just saying, okay, so we talked about this in the prior podcast where By analyzing that inventory and taking the typical deal structure, we said, you don't have very many of your applicants that could afford these cars that are in an aged bucket. Yeah. And so that kind of first off comes to question, why are you choosing this company? type of vehicle um you know and so sometimes it's uh there's lots of different reasons and one of the one of the things um you know they talk about well if it's a newer car it's not going to break down as much we won't have as much repairs we won't have as many repos or they look prettier it's my my lot is is something that I have more pride in um because I've got pretty cars out front and you know the both of them valid for your reasons too yeah but we got to be careful because I think everything you just said if I'm hearing that from a dealer I'm thinking can you prove the things that you just said like do the math bear that out because you know it's like that's what I'm kind of focused on here today is the numbers are the numbers the portfolio performance is the portfolio performance and the cash deal is the cash deal like we can't hide from these numbers it's just everyone has to go through them Everyone, every business model has to go through these things. It's like, let's chart it out. What does it look like? Everybody can have a different strategy. It's just that I think sometimes if we're married to a strategy that we have, and look, we're not advocating for a bad breakup over here with a business model or business pricing. It's like we never advocate for anything too disruptive. I think in this context, it's more question of, You know, could dealers, one, should we re-examine our own business model? Of course we should. That's what happens at B-Aid a lot of times. People are looking at how somebody does business and why and, you know, what's the benefit of each and so on. And then I think beyond that, it's like we, sometimes we fall into a trap of, This is our business model because so-and-so told us years ago this was the right business model. And so they've just kind of stuck in that lane, and that's where they're comfortable. That's what they know, the value of cars and where to buy this and that. So there's all kinds of reasons people choose and stay in a lane with their business model. I think what I was hoping to advocate for here today is – The idea that maybe a second tier of financing makes sense in some situations. I think the math today kind of supports that idea. Good morning, Karen. Hi, Karen Barnett. So, yeah, it's just a matter of figuring out what are the drivers and what's the hard math? Well, and what I really appreciate about what you do, because, I mean, you all know, all of the listeners out there, it's like I'm Jim's favorite. I'm his biggest fan. Yeah. is that by putting them, putting different business models, like we said, just about as many dealers out there, there are business models. This is actually one of the closest ways to compare apples to apples, not apples to tangerines. So this is apples to apples on key things that every dealer has to do in their business model. But they get to choose. Mm-hmm. where those key numbers lie. Yeah. And, and obviously everybody's trying to satisfy a certain market. In some case, they're trying to satisfy an underwriting scoring, you know, approach or whatever the case may be. I think those who have listened to more than five minutes of the podcast know that I'm, I'm a cashflow first kind of person. Like I want to see the money in the bank. You can coach through and you have coached through equity models. Yeah. But this is, it can be done I just always take a point even with those folks who have equity in mind I always take a pump a moment to illustrate to them on the front end make sure we understand the difference between this and this and now if you still want to proceed with this then you know and that's that that whole business model comparison tool that I built years ago you know people still ask for that because they find the thing on youtube and and so it's just meant to do that it's meant to say Here's how much cash you would invest, you know, or if you invest this much cash, this would be the yield on that cash. This would be the phantom profit yield. This would be the receivables yield. But the actual cash yield is really what we're focusing on here today is the cash. So I've got this in both a PDF and on spreadsheet form. Why don't we try it in the spreadsheet form here first and see if it's going to be well. Okay. Very good. Right there. So I think I can manage the size of the thing better. So again, those of you who are in listener land on any of our syndicated podcast stations, Spotify, iHeartRadio, Apple, whatever, go to YouTube if you want to see the charts. yes so again what I've done is I've taken actually five dealers and I did that because that all five dealers had enough history and had um they're in the same groups or similar similar size of portfolios etc and um and I just started to break down what I wanted to do here so one of the first things I need to clarify is I'm not using um I'm not using amortization on this dealer's amount of finance at a certain payment in a certain term to arrive at how much P&I we're going to collect. Instead, I'm using the actual historical portfolio performance. So regardless of what the amortization table might say you're supposed to collect, this is based more on what the dealers are actually collecting based on at least three months of portfolio history. Yeah. And I'm, I'm seeing that you added the thing we talked about this morning at coffee time, because I think it's pretty dang powerful to see too. So, you know, when Jim and I started looking at this, it was just the upper part, dealer one through five. You know, your, your, what I was looking at was original amount financed, I wasn't paying as much attention to the opening principle stuff, but the amount financed, original cash in deal, what's collected in twenty four months and um what's collected collected via the cash and deal and the other ones I wasn't paying as much attention to but I was just looking at cash you know what is it that where where do we stand in in um in in regards to cash and um yeah you go ahead and I'll I'll add in my Jim Collison, Yeah. So when I showed this to Michelle this morning, I just, you know, obviously, she's very bright, and I wanted to have her perspective and see if I was presenting the right information that would be useful. And as she reviewed it, she zeroed in on something that I think is quite interesting. And so this is why, let me kind of explain the elements first, and then we can go into the details. And then, and those of you who are just listening, we're, we're comparing numbers for five different dealers with five different business models. They're similar. Where they change or where they differ is primarily at the very beginning is the cost of car that they're buying. Yeah. But if you look at, regardless of their costs, if you look at the note amount, you know, four of the five dealers are between about eleven thousand and thirteen five roughly is their note amount. So those are pretty similar business models right there. Then the one dealer is, you know, significantly different at about eighteen five on their note amount. And and they condition their cars more. So you can see that in the next column, which is cash and deal. So the original cash and deal. And I know when you're looking at. cash flow earnings, you would often want to include down payment. You can do that or not do it. I didn't do it here because the down payment, we're not taking any risk with the down payment. That's granted it's cash and it goes in the bank account, but I'm looking at that, what we're putting at risk and what we yield against that risk. Okay. Okay. So, um, so this is why I'm looking at just measuring, you know, once the down payment is in the bank and we're now we've got a note out there on the street, then how does that look? You know, one of the other things that I'm noticing here too is the markup. Yeah. From original amount financed and original cash in deal. And because the original cash in deal, that's like that's what you bought the car for and what you reconditioned the car for. And then you jump back to the original amount of finance. And it's like there are some that I see it's double. Yeah. You've got to be careful about that, though, because the the the amount finance is not necessarily representative of the markup. That's the note, not the selling price. So in other words, it could be. Well, with a big down payment or whatever. That's the part we don't know here is like we're just looking at the note that is created. OK, so now the next column we did was so again, those amount finance for those not seeing the screen runs from about they run from about ten six note up to about eighteen five. Then on the cash and deal that dealer that's eighteen five dealer one on the eighteen five on the amount finance is about twelve one on cash and deal. Where the rest of the group is seventy three hundred. No, there's one there for eighty. There's about four thousand difference to the next closest is about four thousand. So it's a pretty significant amount of risk more that the dealer is taking. And so when you look at the. The cash and deal, you know, you can see that those numbers run. There's one there at eighty-two. The others are more like five, fifty-five to seventy-three. Yeah, I'm looking at three and five, and their cash and deal is about the same. Yeah, it's a little over five grand. Yep, and you can see that their note is a couple thousand difference, but... Now let's look at how much is collected in twenty four months. So now the deal's done. Underwriting's done. Deal is done. So up to original cash in deal, original amount of finance, there's like a line that just kind of comes through. Deal is done. Now let's see how these models perform. Yep. Yep. And so let's and so when I say how they perform, this is something every time I use the word perform, Brent Carmichael always perks up like perform based on what? Thank you. You're right. It's like, but in this case, I'm just looking at cash. I'm looking at cash yield. So that next column is how much would we collect? Again, using that first column over there, I didn't explain. That's a three-month rolling average, and that's a principal and interest collected as a percentage of the opening note. I feel like I've explained that a dozen times on the morning show, but basically what we're doing is we're measuring how much money did we collect in a given month as a comparison of how much total principal was in the portfolio at the start of the month. You always just kind of like, I think my eyes glaze over. I call them conversion rates, but it's basically, it's really just measuring, you know, if a dealer's got a million dollar portfolio and in the course of a month, they brought in fifty thousand dollars of principal and interest and that would be this number here. That would be the net. Would that be the net collected or that would be the which? No, that's just the P&I collected. It's sometimes called a liquidation rate or I call them conversion rates just because it's the rate at which your portfolio is converting to cash. Okay. So this is why we can't hide behind those numbers. Okay. So that's that first number, the four, seven, four, six, four, seven, five, five. Correct. Okay. Gotcha. That's the actual portfolio. Gotcha. Principal and interest. Okay. So, you know, you can see, and we didn't explain those numbers, but most of the dealers are in the fours. There's one dealer number four is at five point five, but most of them are in that four point zero to four point seven percent. So they all kind of collect about at the same rate. They do. So. All right. So, again, I'm throwing out the amortization table. It doesn't matter what the customer is supposed to pay. This is just saying traditionally, historically, in recent months, this is the the. the way your portfolio has performed. So now if I apply that same portfolio performance, the typical yield from the portfolio to a single contract, then the cash collected in column f there would be those numbers and you can see dealer one collects the most at fifteen two uh and then the numbers are more like let's see there's one down there at eighty six hundred to about twelve thousand for the other one but you know you'd want to see the screen here to kind of see how they compare but Now we go to the next one and say, OK, let's look at what we collected in twenty four months versus our original cash and deal. OK, because now we're getting down to real cash. Like a customer took delivery. I deposit. They've been making their payments for twenty four months. I have this amount of risk. And based on historical rate at which the dealer has collected, that is how much cash would go into the bank accounts across twenty four months. OK, so now if you compare that, you can see the numbers now. start to, you know, you've got one dealer there at four grand dealer. Number three has collected four grand more than their cash and deal. Okay. So dealer number one with that higher cash and deal has collected three grand. And the others are also around three grand, thirty eight hundred, you know, is the positive cash across twenty four months. So does that also indicate like the the payment is about the same? Not necessarily. No? Not necessarily because, again, this is not using a payment. This is using portfolio performance. Okay. Okay? So it's the rate at which we collect on our portfolio. Okay. So if you think about how much is outstanding at the beginning of the month, and we typically collect about four and a half percent. Like for dealer number one, we typically collect about four and a half percent of what's on the books, right, on a given month. Oh, my goodness. A lot of comments have been exploding. And I had my screen enlarged, so I wasn't able to. So while you're talking, I'm going to read a little bit. Yeah, let me kind of finish through the numbers so I can help our viewers that are in the numbers kind of stay with me on what's there. But so collected versus cash and deal. Now, the next column we did was let's look at net collected then. The, that column G, which is, you know, what we collected in excess of cash and deal. And now let's look at that as a percentage of our cash and deal. So dealer one with a high amount finance, high cash and deal, they've collected, they've netted in cash about twenty five percent of what their original risk is. Mm hmm. Dealer number two is at forty percent. Dealer three seventy four point nine. Dealer four forty five point six and dealer five is at fifty five point two. So this is where you start to look at. okay so we know there's still a note over there and this last column I've got is the the remaining note outstanding so we know there's more note to collect but you know without rehashing a bunch of old stuff I have asked dealers and I think we're going to continue through the morning show to really focus on twenty four months okay I asked dealers to really look at that because that way we're all kind of speaking apples to apples and and same timeframe and think about what's the yield. We had experts come on our B eight plus meetings last month that said, or maybe it was a month before, but basically said very few dealers in our experience, very few customers are paying past twenty four months. And they're either trading in or repossessing or whatever. So the point is, and I can give other reasons for why we like twenty four months here. But but basically for today, I'm just saying if you look at that twenty four months, then across twenty four months, the dealers have have enjoyed that much cash back in their pocket against their risk. So So we can get kind of hung up on the note about, yeah, but my portfolio is ten million and yours is seven million or whatever. We get kind of hung up on those kind of numbers. But what I'm saying is just cash yield. This is why we want to look at portfolio performance. This is why we want to look at collection rates and see what are we squeezing out of the portfolio. Yeah. And how much risk are we taking to create that cash? And so this is why, you know, I think when you saw it, the reason dealer one and dealer five are both in bold here is we kind of wanted to feature those two because you pointed out. Okay. Well, before we move down to that other part, I want to go through some of these comments. Okay, sure. First, Mark Anderson. Hi, Mark. All plans show focus on maximum return on investment. It's a learning curve per each dealer or demographic, but cash flow is always the leading, I think, dictator, regardless of line of credit or self-funded. Unless you are operating like a traditional bank, we all swim in the subprime and deep subprime market. And then Rudy, is that Enriquez? Okay. Rudy, both of them out of Texas, aren't they? No. I'm sorry. Sorry, Mark. Rudy is like, how long are these loan terms? Dealer five should collect a higher percent of CID than dealer one, whom I assume is on a forty eight to sixty month term. And then he pipes in again. He says, oh, I see now. Very fascinating and useful data. And then Tyler says, Simmons. Hi, Tyler. Piped in from Texas. That net collected percentage is a great number to look at. Really like that approach because when comparing to others like you have here, it can be a tale of underwriting and collection departments. Yeah, and obviously underwriting would drive that first column over there as much as anything, the rate at which we collect. Tyler's right, and so is Rudy, in that term is a factor. But what I'm really suggesting is, let's say dealer one has a four-year term and the rest of the dealers have a three-year term. mm-hmm I'm simply saying at twenty four months this is where we're at okay yeah I'm simply saying regardless of what those terms look like the term of loan I'm simply saying in twenty four months time this is how much we collected against our risk And the capital experts, I mean, I think that you were talking about when we did a V-Eight Plus, which is the V-Eight members and we do some supplemental meetings. And this was on this kind of topic where we had Brent Carmichael was one of the ones, Jimmy Rambo was another one, and so was Steve Burke. And they were talking, we were talking about how they look at these things as they flow. And so go ahead. Yeah. So I think, well, there were the ones that were like twenty four months. That's where twenty four months is, is most people don't last beyond that. Well, yeah, the customer doesn't mean it's been a bad outcome. The customer could have traded into another car or they might have had a wreck and we put them in something else or whatever. Doesn't mean it had necessarily a terrible outcome. So but this this number and I want to kind of clarify one thing on the thing that Tyler said, the net collected. We do look often at net collected. I think what what Tyler may be thinking of is the net collection efficiency. And that's a little different number than what we're doing here. This is this is based on a month over month portfolio performance like the yield. So it's more like a gross collections. It's it's all principal and interest collected versus the opening principal balance for that month. So, all right. So let's, let's move on to that bottom part there. And so when we were looking at just the top part, I, and I observed that dealer five and dealer one, dealer five, it's about if you double what his original cash in deal is, it'll equate to dealer one. Yeah, but before you go there, let's point out that the reason that you clued in on Dealer One and Dealer Five is because they both had virtually the same amount of cash collected versus cash in deals. Yes. They both had right at three grand. Right at three thousand. Yeah, exactly. And so I said, oh, well, you know, that spoke to me quite a bit. And I said, well, what if Dealer Five did two cars for the same amount of money that Dealer One is doing for one car? Now you're thinking like Jim. No, this is part of why I created that business model tool. Because this just is really super interesting to me. So we took dealer five and we said, okay, what would the, if we doubled everything. And so you did two cars instead of one and the same amount of money in. So it's basically, you know, we don't know for sure how much the, we aren't showing how much the down payment was. But cash out for a dealer. So if we're going to take dealer five and dealer one, and they've got the same amount of, of, of risk you know that I've got this much money and they have two cars instead of one car what is the amount that's collected um and well you just effectively double it now now you're at six thousand dollars of cash that you've collected against your risk against that amount of money that you invested so you know said another way would be If that dealer five were to take the same amount of money at risk. So let me just for those not seeing the screen dealer one's cash and deal is twelve one dealer five's cash and deal is fifty six hundred. So obviously dealer five could within that cash and deal could afford to finance two cars inside that same structure. Yeah. And create two contracts, which means two car payments, which means, you know, the cash yield across twenty four months becomes now six thousand dollars against that. The yield on the risk is the same because we have both. Right. But and then the dealer at the end of that period, we haven't talked about the notes remaining yet. But that dealer now at the end of the period actually still has more notes. Not that. You know, I always just say, and this is just me being a smart aleck is like, the reason we have to focus on cashflow is because when it's time for me to meet payroll with one of my technicians, it's not like I can go back there and say, Hey, Joe, I'm a little short on cash this month. Can I pay you with Wally Smith's contract? I'll give you a And you do that so well, honey. But it's like the receivables are, yes, the receivables are what drives the interest and what drives the payments, right? Yes. We need the portfolio. So, okay, I'm going to poke some holes. And this is reminiscent, too, of some conversations that have been had. So, obviously, a vehicle that you're buying for half of what you would buy a dealer one, dealer five, are not going to be as pretty. OK, sure. So they're going to be older. They're not going to be as pretty. I'm going to stop you right there. Dealer one is collecting at four point seven percent. Dealer five is collecting four point five percent. OK, it's exactly so. No, but what I'm saying is, is that your lot, if you shifted business models and, you know, did something, your lot's going to look different. Okay. Okay. So the next thing is your bank account. Yes. So repairs. A lot of times people is like, I have a higher price car because I'm going to have to repair it less. Okay. So where does that factor in? Show me that that really works better for this particular dealer. It's not working better. So where is that? Is that that? Yeah. Where are repairs in here? Well, it's not. I mean, it's in cash and deal because your cost, your cash and deal is really the cost of vehicle with reconditioning minus down payment. So we're working on cash and deal here. So the fact that that dealer's got a heavy cash and deal doesn't matter if it's five dollars recon or five thousand dollars recon. That's the risk in the contract at the time of delivery. Okay. And then the next question is, would repo, I mean, if you're throwing in their rate, repo rate. It's in there. It's in there. So it's built in how? It's built in because what I'm doing is obviously we're assuming that none of them charge off. So what we're doing is we're driving the portfolio performance and saying, if we continue to yield, if we continue to collect payments at the rate that we have and the customer does not charge off. But I can tell you that that dealer one who's at four point seven percent. That is factoring in charge-offs. That is factoring in because what is it saying? It's saying the dealer only collected this much principal and interest in the month as a percentage of the start of the month. Why would they, why wouldn't it be six percent? Well, because they had charge-offs and repos and some customers didn't pay and what have you. So that's why I wanted to go to the real collection rate and not some amortization data. So Rudy piped in again, and I put it up on the screen. It says the cash flow may double, but how does that drive our overhead and labor costs, commissions, and also the pressure of dropping underwriting criteria in order to double your volume? Give me a break, Rudy. I just thought of this at eight o'clock last night. No, it's like he's, I look forward to being able to map that into the curves because we'll ultimately be able to create this for our V eight group so they could see the curves. And I want to be able to do collection costs, but we don't, we don't currently have expenses in VA, right? So we're starting to work toward collecting them in a certain structure. But, um, but that, that's true. You do have additional costs associated with running that. But I think You know, what this really illustrates, though, is that if we can create double the cash against, you know, your costs aren't going to double. You know, at some point, yes, if I had a five hundred account portfolio and I acquired another five hundred account portfolio, my expenses might double overnight. But generally speaking, dealers aren't going to see, you know, it's it's it's it's a small ratio. Right. But but we do want to be able to illustrate that. And I look forward to doing that because I think. The cost associated with all of those things we'd like to be able to include in the risk element because the dealer does have operating costs associated with that. You've certainly got collection and servicing costs associated with collecting those costs. Mark, another comment, which I really appreciate. You guys break this down so good and what I've been preaching and what we've been doing, again, ROI. So many people make this personal. Thank you, Mark. And want to be like high-end retailers or franchise. We don't want to offer junk, but be selective on purchases. Zone in on your buy list. And, and so I, I, there's a piece of that, that I just, that there's, there is what, what do I want my lot to look like to that? That is, that's huge. And, you know, we talk frequently about and I'm just going to say ego that it's just like, well, I love driving by my lot because I see these beautiful shiny cars and And so it's shifting your mindset and you're driving by this lot that's full of cars that you see, oh, my goodness, this is going to just really bring in a lot of cash flow. Yeah. And listen, I'm not sitting over here advocating that we start putting junk on our lot. No, not what I'm saying. But I am saying we need to really look at our business model and ask ourselves if we could. If we could adopt another model, one of the things you mentioned, that client, I'm going to be suggesting that they look at adding another tier of financing. Yes. And measure it. Just measure it. See how it does. Test it out. You're going to have less risk. Yeah, yeah, yeah, yeah. If they don't sell, they don't sell. You don't have any risk. But if they sell, then we've got to measure the risk. The reason behind it is we've been working with this client about how do I want to grow? and I'm not seeing the growth that I'd wanted. And so they were looking through all of the, the leads that were coming in. And it's like, if you changed your business model, like X, you would be opening up your portfolio. And quite a bit of terminology. They're like, I don't know that they have to change their business model as much as they have to change their approval process. Like it's an underwriting question. They could choose to put this, this customer in the same car that they have and take on that risk, you know, relative to down payment or, customers income and payment amount whatever they could keep carrying the same cars and adjust because because if I'm a customer in a poor credit situation and I've got fifteen hundred down and you offer me the choice between a nice car or an older car with some miles I'm probably gonna choose the nice car right so so of course given the choice that's what I'm likely to choose I'm simply saying let's put aside these ideas that we do it because if you can't back up in your numbers, what, you know, your theory is, then let's just, just go back to the hard math and just say that, what does it produce relative to the risk? Pure and simple. Like, so there's still some receivables out there, but it's like, what does the portfolio produce relative to the risk that we're taking? Isn't that the business that we're in? It absolutely is. And it's just, I, I, um, yeah, Jim's so level and just always looks at these things in the same way. And, you know, we're always preaching, um, you can't that until you can measure and back it up, then it is just a theory. It's and, and we've, you know, we've had conversations with a lot of really well-known dealers where it's like, I had this theory and then I started running the numbers and realized my theory was wrong, which changes how I do certain things in my business. And so, and it's, it's an interesting thing because what we've, what we've, when you can start to back it up with numbers and those theories get challenged because now you have numbers. It's like, do you choose to stay with your theory or do you choose to shift? Your theory so that I don't want to let dealers decide at the end of the day, it's their name on the building. It's their business and how they want to do business. And if it makes them feel good to have shiny cars and that's what they want to do, that's that's their prerogative, right? I just want to make sure that we put information in front of dealers, especially these early stage dealers. And there's a lot of our listeners on the podcast. These early stage folks, we want to make sure that they're familiar with the impact of their decisions. So this is kind of why we just, we're laying out the numbers and it's like we can, I just, you've heard me say in recent weeks, like, I just want us to move past opinions. And that's kind of true about politics, too, right? There's a lot of opinions out there, too. boils down to math. And math is universal and math does not lie. But as long as you've got the right numbers and you're driving the right drivers, it does not lie. And so, yeah, math. Numbers never lie. Yeah. And, you know, Mark talked about ROI and I would take it a step further because a lot of times when you're talking ROI, you're talking profit return on investment. And I'm just talking cash on cash return, which I think I said in the description of the podcast. It's like we're going to focus on cash on cash return. What could I put in the bank? And so Rudy's right to say, well, you know. take the next step and look at after my operating expenses, what did I really put in the bank? But it's irrespective of that, Rudy. This is just saying the cash yield on the contract, the gross cash yield on the contract looks like this for these five dealers. So I posted numbers never lie from Mark. Rudy, hard agree. Return on investment is so much more important than the nominal unit of measure. And then he also piped in and he's like, math also doesn't care. Yeah. you're right or you're broke. Yeah. Yeah. It just, math has zero skin in the game. Yeah. And, and it has zero ego and it has zero, it has, it has no emotion. It's money has no emotion. And so math has no emotion. It's just, it's a tool. Yep. No, it is. I feel like we covered it. I really enjoyed this conversation. I think that this is a really great example of what your driving motivators and factors are. It's like, let's really get down to what is going to help dealers. And so I'm going to do a plug. Um, V eight is really such a great opportunity for dealers to be able to look at numbers this way. Um, and also to compare with other people and have the conversations in a confidential, um, room, uh, about what is it that you are doing and why are you doing it this way? And what have been the things that you have experienced? you know, what have been your, your hard part, hard parts and what have been, you know, uh, and, and so the conversation is, is very, very rich. And so if you, um, haven't looked into joining a V eight group, super, super inexpensive, um, it's, you know, right now for the balance of, I think for the balance of twenty, twenty four, um, It's one hundred twenty nine to get into your home base group. And then starting in January, we're going to be adding like a prime level, which is V eight plus, which we'll have. That's where we bring in the experts. That's where we have like the really in-depth conversations based on what questions are being asked in our V eight groups. bring together the, the, um, the experts and have a very in-depth conversation, not about the stuff that your, your composites that you're bringing in, but about the things that matter. So really should hurry and get in because they're getting that stuff for free in twenty. They're getting it for free in twenty, twenty four. So, um, There are rooms in groups. There is room in groups, all different sizes. We have beginners. We have ones that up to a hundred accounts or a hundred beginners up to a hundred, five hundred to or a hundred to five hundred and then five hundred plus. and um there's always room we've got we just are bringing on a moderator to start that is just absolutely phenomenal yeah it's great and you know looking forward to to just expanding um that program because it's really is proving to be very beneficial to the dealers that are in there yeah so um and you know like you can come to your meeting while you're at a baseball game with your kid because that's what's that happens um all righty everybody thank you so much for joining us today we really really do appreciate uh um you tuning in and and being a part of the conversation chiming in um you know we're here now every wednesday friday uh we'll be back on wednesday with a white hat topic which is about where we're applying squiggly lines to the business and so intangibles things that are that are about how do you want to be known liked trust all right you know it is known liked and trusted in your community so again thank you so much for joining us um if you got any questions you uh reach out reach out reach out we would love to answer them all right have a great day everybody again we'll see you on wednesday
