Auto Dealership Overview Presentation

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An overview of the BBVA Compass services offered specifically to auto dealers

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Auto Dealership Overview Presentation

  1. 1. Auto DealerFinancialServices
  2. 2. Table of ContentsFor your business ● 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 16For your employees ● Partnership Banking for your employees Page 17For you ● Wealth Management Page 18About us ● Your Team of Bankers Page 19 ● About BBVA Compass Page 20 ● About BBVA Page 23
  3. 3. Financing Access to capital is critical to operating and growing a successful dealership.Programs 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 3
  4. 4. 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
  5. 5. 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 5
  6. 6. 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 6
  7. 7. 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 7
  8. 8. Benefits of experienceBBVA Compass has been offering solutions for Floor Plans andDealer Indirect solutions since 1970 Collateral— allowing a pool of used vehicle inventory, parts andfixed assets or other collateral to be used as a pledged collateral baseagainst funds which can be advanced Nationwide auctions— relationships with over 40 auto auctions nationwide, enabling BBVA Compass to pay direct to the auctionswith no cash outflow from the dealer Equity Option— product allowing the dealer to deposit excesspersonal or dealership funds to offset the vehicle floor plan loan balance, reducing interest charges 8
  9. 9. Treasury Management ServicesAuto dealers have unique treasury management needs Structure accounts and services to individual needs of Team of each dealership; your team includes a TM manager, Specialistsproduct support specialists and implementation specialists These products and services leverage up-to-date technology providing The latest dealers with direct control over cash technology flow accounts, minimize idle balances, increase earnings and manage risk -Automatic Investment Loan -Compass SpecialPaySource® Card Offerings1 for -Automatic Investment Vehicle -Compass Remote Auto DealersDeposit -CompassView® Online® -Compass e-Access® Services -Compass e-Access® 10
  10. 10. Dealer Merchant ServicesAuto dealers can have an experienced partner inpowerful payment processing solutions Currently process over 200 merchant accounts for the autoindustry 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, over42 million transactions and $3.6 billion in processing volume 11
  11. 11. 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 12
  12. 12. Commercial Billing ServicePut your receivables on the fast trackA complete non-recourse accounts receivable service with funding inadvance. We manage your accounts receivables , allowing you to focuson more profitable activities— such as growing your business. How your company How your customers 1 2 2 can benefit includes: benefit includes: ● Immediate return ● Dedicated customerservice 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 13 ● Extra leverage on difficult accounts
  13. 13. Managing RiskCustomized solutions for exposure to market risksRisks include: ● Interest rates ● Foreign Exchange ● CommoditiesHedging solutions are developed to meet your risk profile, market view andstrategic goals; solutions from both a risk and accounting perspective Rates Swaps, Forwards, Caps, Floors Teamwork by your Relationship Manager and a risk specialist Foreign Spots, Calls, Puts, Forwards Exchange Dealer Client Energy - Swaps, Collars, Options Commodities (Caps, Floors) Treasury Speciali RM Solutions st 14
  14. 14. 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% Fixed Term 3 Years 5 Years 10 years Current Floating Rate = 0.26% + 2.50% = 2.76%Considerations: 1. Immediate Starting Fixed 3.90% 4.63% 5.79%- By entering into a swap, AD can lock in Swap Rate a fixed rate of 4.81% for the 5-year term 2. Fixed Swap- The Rates, Currencies, Commodities (RCC) Rate Beginning 4.22% 4.98% 4.22% in 12 months group pays AD a floating rate AD then passes the floating rate to their LENDER to satisfy the original loan agreement $Principal$-In exchange, AD agrees to pay RCC SAD BBVA BBVA a fixed rate of 4.81% AD Compass LIBOR + 2.50% Floating Compass-The net effect is AD can lock-in at 4.81% 4.81% Fixed LIBOR + 2.50% Floating for the 5-year termInterest rate swaps can be utilized on FRMGterm loans as well as floor plan lines of credit RCC *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. 15
  15. 15. Storytellers – our clients in their own wordsAn online, interactive web site featuring BBVA Compass clients.Visit this site to hear their stories: www.bbvastorytellers.comTo view Tuscaloosa Toyota, Tuscaloosa, AL click on the image below: 16
  16. 16. Partnership BankingThe program includes several banking features to meet thepersonal financial needs of you and your teamPartnership 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 17
  17. 17. Wealth ManagementInvesting, retirement planning, and businesstransition planning may all play a role inyour business’s financial future● Investing— short-term and long-term investments2,3,4● 401(k) plans— comprehensiveconsultative services to design, implement and administer retirement plans● Transition planning— business transitionand succession, plans including familytransfers, and external and internal sales2,3Solutions are offered for a full range ofpersonal investments, trust and estateplanning, asset management, and 18more.2,3,4,5,6
  18. 18. Your BBVA Compass TeamJamie ShulmanSVP. RelationshipManagerjamie.shulman@bbvacompass.com602-522-6896 Office Cindi Combs Team602-826-1732 Cell Treasury ManagementDavid Smith cindi.combs@bbvacompass.com Steven Curl 602-285-3653 Accounts Receivable Financing GroupManagerDealer Commercial Services arfinancing@compassbank.comdavid.smith@bbvacompass.com 915-485-9274205-238-2274 Matt Edwards Product Solutions SpecialistDawn Armstrong matthew.edwards@bbvacompass.com Jon RuzanFloorplan Auditor 602-778-0788 Partnership Bankingdawn.armstrong@bbvacompass.com jon.ruzan@bbvacompass.com205-238-2262 602-565-8531Karen Engelbardt David LundgrenIndirect Sales Manager Private BankerKaren.engelbardt@bbvacompass.com david.lundgren@bbvacompass.com480-213-7670 480-368-1142Donna Lynn GallowayRelationship Support Specialistdonnalynn.galloway@bbvacompass.com602-778-7063 19
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  22. 22. About BBVABBVA 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 itscustomers around the world with a full range of financial services, including commercial andwholesale banking, retail banking services, consumer loans, mortgages, credit cards, securitiesbrokerage, wealth management, pension plan management and insurance. The BBVA Groupmaintains a leadership position in Spain, Mexico, Latin America and the Sunbelt Region of theUnited States as well as operations in China, France, Germany, Hong Kong, Italy, Japan, Singapore,Switzerland, Turkey and the United Kingdom. 23
  23. 23. BBVA – Among the safest banks in the world BBVA is the only major bank in the world that has not raised capital or receivedgovernment 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 aproven track record of outperforming the industry in both good times and challengingenvironments. 24
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  26. 26. Summary 27
  27. 27. 1 Allloans 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 28

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