According to the National Automotive Dealer’s Association (NADA), a record 17.5 million new vehicles were purchased by customers through 16,708 authorized dealerships in 2016. In Canada, new vehicle sales reached record numbers for the fifth consecutive year in 2017, and Canada saw its first 2 million vehicle year.
These numbers are staggering and demonstrate the health, and growth potential, of the automotive sector in North America.
“The auto sector is experiencing immense growth, as evidenced by dealer revenues exceeding $120 billion last year alone,” said John white, President and Chief Executive Office of CADA (Canadian Automotive Dealer’s Association).
The franchised dealers model is the cornerstone of expansion and this involves both existing businesses looking at dealer development to open in additional locations, and individuals’ eager to take on the challenge of owning an automotive franchise. NADA regards the automotive franchised dealer model as being highly beneficial to consumers and communities.
New automotive dealerships employ on average 60 people per location and contribute to local economies. Writing in Small Business Trends, Joshua Sophy said, “Car dealerships and auto parts franchising opportunities are some of the most up and coming business niches available today. According to a recent ADP report, auto parts and dealers were second only to restaurants as the top job creating franchises in the nation.”
An automotive dealership is a top-end franchise opportunity, requiring considerable capital to qualify. In addition to new owners, employees selected to manage automotive dealerships as operators must be up for the job, and ready to represent the brand. More than ever it is imperative for candidates to be moved through a rigorous screening in order for the best individual to be selected.
With the market in an expansion and growth phase, there is no shortage of applicants for dealer development programs. But how do you ensure that only top candidates are selected to represent the brand?
Quality Credit Reporting has over 25 years of experience in credit reporting and the use of investigative-style approaches. We specialize in OEM Dealer development reports for the automotive sector and provide enhanced screening to support the selection process.
“Accurate and timely background reports are paramount to Toyota’s screening process of new operator applications and changes in ownership. We received this immediately upon switching to Quality Credit Services in addition to significant savings over our previous supplier. As a result, we’ve expanded our screening process in an effort to reduce our risk and conduct a more thorough due diligence in our candidate review process.
- Dave Nichols, Toyota Canada Incorporated, National Manager, Dealer Development
A Quality Credit Report to assist in the selection of the best dealer or operator includes:
- Confirmation of Liabilities including credit card balances, mortgages, term loans, lines of credit and leases
- Confirmation of Personal Background Details
- Disclosure of Derogatory Credit Information including late payments, NSFs, collection claims, legal actions, judgments and bankruptcies/consumer proposals
- Disclosure of Criminal Activity or Negative Media Exposure
- Verification of Current Employment and Income
- Confirmation of Education Credentials
- Verification of Professional Accreditation Status
- Identification of False Information provided on application
- Confirmation of Motor Vehicle convictions and suspensions
If you are selecting candidates for dealer development, be sure tospeak with us about incorporating vital information into the review process.
Tags: Franchising
