Financing in the fast lane
January 23, 2006 - Newsday - At a time when his industry is struggling, David Jacobson is prospering - which tells you that when it comes to selling cars, his GrooveCar Inc. is the better mousetrap.
"In the past six months, we've gotten a much larger piece of a much smaller pie," Jacobson said about his company, which matches credit union members and dealers in an effort to make car buying a smooth and consumer-friendly process.
How big a piece? Jacobson said GrooveCar processed 40,000 applications last year, up from 15,000 in 2004 and 5,600 in 2003. He estimated GrooveCar will have a hand in more than $2 billion worth of Long Island car sales this year, the company's sixth in business, as it moved from rented quarters in Melville to a larger building it just bought in Hauppauge.
Jacobson is a former automobile salesman, finance manager and dealership owner who also wrote a book, "Non-Confrontational Power Selling," that he says is used as a training manual for car sales representatives around the country. He describes GrooveCar as "a complete automotive resource and buying support program for the credit union community, predominantly, but also valuable to everyone on Long Island ... a one-stop shopping experience" in which customers can shop for a car with no haggling and get financing approval from a credit union without leaving the dealership. And if they don't belong to a credit union, the customers can join one on the spot. GrooveCar's network includes 20 local credit unions and more than 250 car and motorcycle dealerships.
"The buyers like the rate, they like the credit union, they like the simplified process in buying a car," Jacobson said. "The dealers like it because they can give more competitive rates," as well as a somewhat steady stream of customers into their showrooms.
And the credit unions? "For us, it's been tremendous," said Nick Laceterra, president of Hauppauge-based People's Alliance Federal Credit Union. "It's a way for us to get new members. ... We're getting a lot of car loans. It's been quite successful for us."
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