ON BUSINESS by FELICIA LOWENSTEIN NIVEN

 

Driven

Auto Lenders: An automotive concept that works

Cars are the reflection of our tastes, the practical means by which we get around, and, at times, our way to escape to a better place.

In a tight economy, they also can be an unattainable luxury.

 

Enter Auto Lenders. This innovative business is making it affordable to drive the cars we love. At a time when everyone else is feeling the effects of an impossible economy, Auto Lenders is—unthinkably—thriving.

 

“The automotive industry has clearly taken a hit,” said Auto Lenders CEO and founder Mike Wimmer. “But since October, we’ve actually seen an upturn in business. A customer may have never considered buying a pre-owned vehicle before, but now they’re looking at it as a great value. And once you’re an Auto Lenders customer, our goal is to retain you as an Auto Lenders customer. Our retention rate is roughly 90%.”

 

The concept behind Auto Lenders is unique. The company is the exclusive disposal center for leased cars from fifteen regional banks. That means that Auto Lenders receives thousands of low-mileage, off-lease vehicles each month. The management team culls through these two and three year old vehicles, selecting the ones with the lowest mileage and in top condition. The rest are sold at auctions to other auto dealerships.

 

“We don’t ever buy cars at the auctions,” said Wimmer. “All of our vehicles have just come off lease. They’ve had only one owner, and the cars were under full warranty during the lease. That meant that they were completely maintained.”

 

The majority of vehicles in stock have a remaining new vehicle warranty combined with Auto Lenders exclusive extended warranty program providing each customer with a lifetime engine guarantee.

 

Auto Lenders sales staff are really customer service specialists, trained with expansive product knowledge. They have also been trained to listen and respond to the customer’s needs, according to Wimmer. To keep them focused on the customer, they are compensated the same if they sell a Toyota or a Lexus. And Auto Lenders stocks plenty of both, as well as Honda, Acura, Nissan, Infinity, Jaguar, Volvo, Hyundai, Mazda and Mercedes.

 

The Auto Lenders cars are also low mileage, with odometer readings averaging 25,000 miles. Once the cars pass the initial inspection, Auto Lenders sends them to a state-of-the-art, 40,000 square foot reconditioning center. There, they are put through a 110-point inspection— and those that don’t pass will go to auction. The end result is an inventory that is hard to distinguish from a new fleet of cars, yet it’s priced well below market value to move them fast.

 

“We have ‘no haggle’ pricing,” said Wimmer. “It’s standardized profit margin and the prices are thousands of dollars less than you’d pay anywhere else. There’s no negotiation required. Customers don’t have to be turned over to a sales manager to get a better deal. Everyone gets the same great deal. Plus, since we’re affiliated with a bank, our finance and lease rates are very competitive.”

 

Wimmer is well versed in the financing aspect of automobiles. He spent the bulk of his career before Auto Lenders, owning and managing a $2 billion, privately held auto finance company—one of the largest in the tri-state area.

 

“We competed directly with the banks,” he explained. “But the banks relied on auctions to sell their off-lease vehicles. We saw an opportunity to sell these vehicles through retail locations.”

 

As a result, Wimmer founded Auto Lenders Liquidation Center in 1989. Eleven years later, he sold off the finance arm to a large regional bank to focus solely on selling cars.

 

Wimmer has also since welcomed the next generation of leadership into the company, including his son, Brad.

 

“We have a bunch of experienced guys getting gray, so we’ve assembled a team of young MBAs behind every key manager in this business,” said Wimmer. “It’s a great combination. From an analytical standpoint, the MBAs are brilliant. And they can benefit from the more experienced, ‘streetwise’, managers. It’s very efficient at management meetings; we get both sides of the equation.”

 

Auto Lenders has close to 200 employees who work in any of the six New Jersey locations: Voorhees, Williamstown, Lake­wood, Toms River, most recently Egg Harbor Twp Township, along with the state-of-the-art recondition and certification center in Winslow. Wimmer was careful to grow in contiguous markets so that stores could share advertising expenses.

 

He views his staff as family. “That’s the hard part because we have high expectations for everybody.” But, he explains, it’s a good place to work. “There is very little turnover here. You don’t keep people for over twenty-plus years unless you treat them well and with respect. We want Auto Lenders to be a lifetime career. And it’s easy to manage others if you show by example that you work hard at your job. You get it back in spades and with 120% of effort from them.” 

 

A few employees have come and gone over the years. “There’s no room for mediocrity,” said Wimmer. “There’s no room for anyone who is not happy. To be successful, there has to be an element of passion and vision. And it’s contagious. Auto Lenders is a fun place to work.” 

 

Employees and their families are often the company’s best customers. The majority has purchased their own cars from the business.

 

Customers agree. In an independent survey, the company received an unprecedented 99% approval rating. The staff also follows up with every customer within ten days of a sale to see how they’re doing. “Most say it’s the best buying experience of their lifetime,” said Wimmer.

 

“How do we compare with other dealers offering certified cars?” he asked. “Why should you buy a Toyota from Auto Lenders rather than the Toyota dealer down the street? Our inspection process is more rigorous than any manufacturer. Our tagline, which we’ve been using since inception, still applies. Auto Lenders. It’s a smarter way to buy a car.”