Auto Dealership Overview Presentation
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Auto Dealer Financial Services
description
An overview of the BBVA Compass services offered specifically to auto dealers
Transcript of Auto Dealership Overview Presentation
Auto DealerFinancial Services
● Financing Programs Page 3● Treasury Management Solutions Page 10● Merchant Services Page 11● Commercial Billing Service Page 13● Managing Risk Page 14● Storytellers– our clients in their own words Page 16
● Partnership Banking for your employees Page 17
● Wealth Management Page 18
● Your Team of Bankers Page 19 ● About BBVA Compass Page 20● About BBVA Page 23
Table of ContentsFor your business
For your employees
For you
About us
Access to capital is critical to operating and
growing a successful dealership.
For over 40 years, BBVA Compass has provided competitive financing programs1 for automobile dealers in:
● Floor Plan Lines of Credit
● Real Estate Term Loans
● Acquisition Financing
● Equipment Financing
Financing Programs
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Dealer Floor Plan Lines of Credit
● Financing available1 for New, Program, and Used Vehicle inventory
● Flexible settlement terms for sold vehicles – cash sales, dealer trades or finance contracts
● Direct access to nationwide network of auctions enabling streamlined payments
● Deferred payment options for Fleet business
● Competitive pricing, independent of retail financing penetration
● Equity Option (short-term cash management account) offsets dealership floor plan costs, enabling a dealer to efficiently invest both business and personal excess liquidity 4
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Real Estate Term Loans
● Available for owner occupied facilities1
● Construction / Purchase financing available
● Refinance / Expansion of existing facilities
● Terms: typically 5 – 10 year terms, with 15 – 20 year amortizations
Acquisition Financing
● Tailored to each deal1, depending on proposed capital structure and projected cash flows
● Franchise rights agreement assignment provides additional flexibility
● Typically amortized over a 3 to 7 year period, enabling cash flow from acquisition to serve as primary debt service source
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Equipment Financing
● Available to support new build or replacement/ additions to existing facilities1
● Short and long term loans available (up to 7 years)
● Interest rate protection options available to manage interest rate risk
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Benefits of experience
BBVA Compass has been offering solutions for Floor Plans and Dealer Indirect solutions since 1970
Collateral— allowing a pool of used vehicle inventory, parts and fixed assets or other collateral to be used as a pledged collateral base against funds which can be advanced
Nationwide auctions— relationships with over 40 auto auctions nationwide, enabling BBVA Compass to pay direct to the auctions with no cash outflow from the dealer
Equity Option— product allowing the dealer to deposit excess personal or dealership funds to offset the vehicle floor plan loan balance, reducing interest charges
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Treasury Management ServicesAuto dealers have unique treasury management needs
Structure accounts and services to individual needs of each dealership; your team includes a TM manager, product support specialists and implementation specialists
These products and services leverage up-to-date technology providing
dealers with direct control over cash flow accounts, minimize idle
balances, increase earnings and manage risk
-Automatic Investment Loan -Compass PaySource® Card -Automatic Investment Vehicle -Compass Remote Deposit -CompassView® Online® -Compass e-Access® Services -Compass e-Access®
Team of Specialists
The latest technology
Special Offerings1
for Auto Dealers
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Dealer Merchant ServicesAuto dealers can have an experienced partner in powerful payment processing solutions
Currently process over 200 merchant accounts for the auto industry and over $107 million in annual purchase volume
Processing credit card transactions for over 25 years
Current portfolio of over 14,000 active merchant accounts, over 42 million transactions and $3.6 billion in processing volume
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Dealer Merchant Services
All cards accepted: MasterCard, Visa, Discover, American Express, Diners, JCB and Fleet Cards: Voyager and Wright Express
Funds availability: MasterCard, Visa and Discover proceeds are deposited via ACH within 24 hours into your BBVA Compass checking account1
Real-time Internet processing
Several products for credit card processing include: terminal based, Pin Pad, Internet solutions and gift cards
E-Connections: a comprehensive on-line information tool that delivers complete review and management of authorized transactions and historical data
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Commercial Billing Service
Put your receivables on the fast track A complete non-recourse accounts receivable service with funding in advance. We manage your accounts receivables , allowing you to focus on more profitable activities— such as growing your business.
How your company How your customers can benefit includes: benefit includes:● Immediate return ● Dedicated customer
service on business-to-business ● Simplified reconcilements
accounts receivable ● No interest charges or late fees
● No bad debt losses ● Focused sales and service
● Expense reduction from attention from you
reduced company workload ● Extra leverage on difficult accounts ● Purchase discount opportunities
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Managing Risk
Customized solutions for exposure to market risks
Risks include: ● Interest rates ● Foreign Exchange ● Commodities
Hedging solutions are developed to meet your risk profile, market view and strategic goals; solutions from both a risk and accounting perspective
Rates Swaps, Forwards, Caps, Floors
Foreign Exchange
Spots, Calls, Puts, Forwards
CommoditiesEnergy - Swaps, Collars, Options
(Caps, Floors)
Teamwork by your Relationship Manager and a risk specialist
Treasury Solutions
Speciali
st
Dealer Client
RM
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Interest Rate Swap Pricing Example* for “Sample” Auto Dealer (AD) Loan pricing is LIBOR + 2.50% 10-year term/ 20-year amortization Current LIBOR = 0.26% Current Floating Rate = 0.26% + 2.50% = 2.76%
Considerations: - By entering into a swap, AD can lock in a fixed rate of 4.81% for the 5-year term
- The Rates, Currencies, Commodities (RCC) group pays AD a floating rate AD then passes the floating rate to their LENDER to satisfy the original loan agreement
-In exchange, AD agrees to pay RCC a fixed rate of 4.81%
-The net effect is AD can lock-in at 4.81% for the 5-year term
Interest rate swaps can be utilized onterm loans as well as floor plan lines of credit
*For additional information, contact your BBVA Compass relationship manager. This example is prepared for informational purposes only , is based on January 2012 market conditions, and is subject to change. Information used in this example is based on sources believed to be reliable. No representation is made that it is accurate or complete or that any returns will be achieved. Changes in assumptions may have material impact on returns. Past performance is not indicative of future results.
LIBOR + 2.50% Floating
LIBOR + 2.50%
Floating
SAD
FRMG
BBVA Compass
$Principal$
4.81% Fixed
AD
RCC
BBVA Compass
Fixed Term 3 Years 5 Years 10 years
1. Immediate Starting Fixed
Swap Rate3.90% 4.63% 5.79%
2. Fixed Swap Rate Beginning in 12 months
4.22% 4.98% 4.22%
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Storytellers – our clients in their own words
An online, interactive web site featuring BBVA Compass clients.Visit this site to hear their stories: www.bbvastorytellers.com
To view Tuscaloosa Toyota, Tuscaloosa, AL click on the image below:
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Partnership BankingThe program includes several banking features to meet the personal financial needs of you and your team
Partnership Banking1,7 includes:
Build to Order Checking® account
Basic Savings account
And special offers for: - mortgages - equity loans and lines of credit - secured loans - simple lines of credit - credit cards
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Wealth Management
Investing, retirement planning, and business transition planning may all play a role in your business’s financial future
● Investing— short-term and long-term investments2,3,4
● 401(k) plans— comprehensive consultative services to design, implement and administer retirement plans
● Transition planning— business transition and succession, plans including family transfers, and external and internal sales2,3
Solutions are offered for a full range of personal investments, trust and estate planning, asset management, and more.2,3,4,5,6
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Jamie ShulmanSVP. Relationship Manager [email protected] Office602-826-1732 CellTeamDavid SmithManagerDealer Commercial [email protected]
Dawn ArmstrongFloorplan [email protected]
Cindi CombsTreasury Management [email protected] 602-285-3653
Matt EdwardsProduct Solutions [email protected]
Your BBVA Compass Team
Karen Engelbardt Indirect Sales [email protected]
Donna Lynn GallowayRelationship Support [email protected]
David LundgrenPrivate [email protected]
Steven CurlAccounts Receivable Financing [email protected]
Jon RuzanPartnership [email protected]
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About BBVA BBVA is a financial services group with more than $660 billion in total assets, 50 million clients, 7,466 branches and approximately 111,306 employees in more than 33 countries. BBVA provides its customers around the world with a full range of financial services, including commercial and wholesale banking, retail banking services, consumer loans, mortgages, credit cards, securities brokerage, wealth management, pension plan management and insurance. The BBVA Group maintains a leadership position in Spain, Mexico, Latin America and the Sunbelt Region of the United States as well as operations in China, France, Germany, Hong Kong, Italy, Japan, Singapore, Switzerland, Turkey and the United Kingdom.
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BBVA – Among the safest banks in the world ● BBVA is the only major bank in the world that has not raised capital or received government assistance due to the financial crisis.
● Harris Interactive Poll: Named BBVA Compass Retail Bank Brand of the Year for 2011
● BBVA is ranked as one of the top 20 financial services companies in the world based on market capitalization.
● BBVA continues to outperform its peers in many measures of credit quality and has a proven track record of outperforming the industry in both good times and challenging environments.
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Summary
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1 All loans subject to approval, including credit approval. All accounts are subject to approval.2 Investments advisory services are available through SEC registered investment advisor affiliates of Compass Bank.3 Securities and investment products offered b BBVA Compass and/or its affiliates are NOT deposits, are NOT FDIC insured, are NOT bank guaranteed, are NOT insured by any other Federal Government Agency and may LOSE value.4 Securities and investment products offered by BBVA Compass Investment Solutions, Inc., member FINRA and SIPC, and a wholly owned subsidiary of Compass Bank are NOT deposits, are NOT FDIC insured, are NOT bank guaranteed, are NOT insured by any other Federal Government Agency and may LOSE value.5 BBVA Compass and its affiliates will work with you and your tax and legal advisors. BBVA Compass and its affiliates do not provide legal and tax advice.6 Insurance products are offered through BBVA Compass Insurance Agency, Inc. Insurance products are NOT FDIC insured, are NOT bank deposits, have no bank guarantee, and are NOT insured by any Federal Government Agency. BBVA Compass Insurance Agency, Inc., is a wholly owned subsidiary of Compass Bank.7 Compass Bank is an Equal Housing Lender. See all product details and disclosures of Partnership Banking on the included Fact Sheets.
BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Member FDIC
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