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NVLA LeaseWire
09/26/2020 | Issue 19
   

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President's Message
Will You Be One of The Top 25 in 2025?

We haven’t been here before, but that doesn’t mean we are in a bad place. As horrendous as it is, COVID-19 has also given us some opportunities that one could have only wished for. Now is the time when capable lessors should reach out to their entire customer base. Rarely do organizations have the chance to re-introduce themselves to their market. Wise fleet operators are re-evaluating every aspect of their operation, and no process or procedure should escape scrutiny. New realities are spawning new needs, and our success is tied directly to meeting our customers' requirements.

Your toolbox is now much larger than it was when you started doing business with most of your customers, and today you know better how to use what’s inside. You can approach your customers, and even previous prospects, with a refreshed outlook.

Your vision may be small because you don’t think you have what it takes to become a significant influence or a big player. You aren’t alone. There were some amazing interviews with Mark Zuckerberg in 2005 when, from his dorm room corporate headquarters, he said that his goal was to grow his company to be a useful directory at Harvard and then maybe expand to a few more universities. Along the way, thanks to his ability to adapt and learn from growth challenges, a greater vision was borne.

Have you heard of the Green Mars Oasis Project? The owner planned to hitch a ride for some flora on a Russian rocket. Once they had a picture of their green plants flourishing on Mars, they planned to shut down the company, gain notoriety on the photo re-tweets, and use the buzz as marketing for a sister enterprise. However, in the process, the owner learned so much about space travel that his vision was expanded. Elon Musk rebranded Green Mars Oasis Project to SpaceX, and this month the sister company, Tesla, announced a five-for-one stock split.

These start-ups may not have had the most qualified CEOs, but they both had a CEO who learned how to adapt and expand their original visions. Leadership is about the ability to adapt.

Just as a caterpillar has everything in its chrysalis that it needs to become a butterfly, you already have what it takes to become one of the Top 25. The lessors that will be the icons of 2025 will have to overcome what the economy and marketplace throw at them by embracing every opportunity to become an adaptable learn-it-all.

-Doug
Matt Daus, Esq. to Present "The Future of Leasing in a Post-COVID World"

On Wednesday, October 14 at the virtual 2020 NVLA Annual Conference, Matt Daus, Esq., partner and chairman of Windels Marx Transportation Practice Group in New York, will focus his session around the modal transportation shifts due to the COVID-19 pandemic and the resulting challenges and business opportunities in the vehicle leasing arena.  Daus will provide an overview of how new laws, government executive orders, and official health and safety guidance have impacted and will continue to impact the vehicle leasing business. In addition, Daus will address the effects of the pandemic on new and emerging vehicle-related technologies to help NVLA members assess which modes and services may be implemented more quickly and which technology developments may be decelerated or rendered obsolete. The for-hire vehicle, vehicle rental/leasing, and car sharing markets will be covered, along with the impact of California’s AB5 Anti-Independent Contractor Law, Mobility-as-a-Service (MaaS), electric vehicles (EVs), and automated and connected vehicles (CAVs).  Future predictions will be shared, along with facts, opinions, industry insight, and audience participation.

NVLA President Doug Moore said, "Matt is the first speaker we booked, as he has come to be a much relied on thought leader in the NVLA arena. His access to those in the know gives him unparalleled insight. This is a not-to-be-missed session."

Daus is a prominent figure in the transportation law arena, and regularly speaks about the current and potential effects related to the pandemic. Recently, on the NYC Taxi News Podcast, Daus noted, "Now is the time to innovate. There is an opportunity to integrate more with public transit, providing first-mile/last-mile options and space to experiment with busways, allowing for vertical thru streets and creation of taxi lanes." He added that although the immediate furture of New York's yellow taxicab industry is unclear, the industry is poised to make a strong comeback once the pandemic subsides.                                                                      
Click here to listen to Daus on the NYC Taxi News Podcast and click here to view the recent webinar in which Daus provides his take on how the presidential election in November and the future political climate may impact the regulatory environment for EVs in the United States.
LHPH Industry Update
Nick Markosian, president of Markosian Auto and NVLA board member
Subprime lenders Capital One Auto Finance, West Lake, and others are tightening their underwriting guidelines like time on the job, debt-to-income ratio, and other metrics. This is causing customers to be turned down for loans at traditional dealers and sending them to LHPH and BHPH dealers. Similar to the Great Recession, this is creating great opportunities and another strong period for the in-house finance industry, but only if we are prepared to take advantage.

Another bright spot in the LHPH/BHPH arena is delinquencies. Even after the the unemployment enhancement of $600 per week ended, delinquencies are holding steady at their current rate. Customers we worked with and deferred payments on when the virus started are returning the favor by making their payments. The low delinquency rate speaks to the service we provide our customers, which is more of a "need" item than a "want" item. This period has also caused the industry to improve on and focus on collections more than ever, and these improvements are yielding excellent results.

A main concern moving forward is whether schools will remain open.  If they close, this will create a huge problem for our customers, having to decide if they continue to work or to stay home with their families. Whatever our customers decide, it will be a stress in their lives, likely resulting in more delinquencies and losses. This is something for those in the industry to be prepared for.

Also hanging in the balance: whether we are getting another round of stimulus checks. If we do, it will be boom time for business, but the problem here is that used car prices are at an all-time high. This means that it makes little sense for us to stock up on inventory. However, if we don’t have the inventory, then we will not be able to take advantage of another round of stimulus checks, should Congress approve.

If there is no stimulus and no more unemployment help what will happen with unemployment and our economy?  This is the big question and is creating a lot of uncertainty.  But, uncertainty is what creates wealth and success when it is leveraged properly.  Whatever comes our way, we are a scrappy and resilient industry.  We will get through this, and hopefully with the right attitude and strategy, come out stronger than ever.
Sponsor the 2020 NVLA Virtual Annual Conference
Chris Pontarelli, Vice President of GT Leasing and NVLA Board Member
As an NVLA past president, I have witnessed first-hand the loyalty of our organization's amazing sponsors over the years. In return for this, our members have dedicated their business resources to them. This year, our virtual conference will give our sponsors many avenues to be present with our members, allowing our sponsors a variety of opportunities to go into detail about how they can assist our members in building a robust business by catering specifically and uniquely to our members' needs.

I’m excited to see the new ways our virtual conference will create brand recognition and captivate the attention of all who attend. This will create innovative and meaningful business relationships moving forward. Please see the white page for more details about sponsorship opportunities and benefits and contact Chris Pontarelli at cpontarelli@gtleasing.com for more information.

 
 

National Vehicle Leasing Association
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