Executive Summary
November 1, 2007
CarBiz, Inc. CBZFF (“CarBiz or the Company”) is a part of the “Alternative Financial Services” (AFS) industry providing financing, products, technology and training to the $150 Billion dollar “AFS” market in the United States. Based in Sarasota, Florida, CarBiz operates the 4th largest chain of Buy-here Pay-here auto dealerships in the U.S. as well as being a leading provider of software, training and consulting solutions to the United States automotive industry. CarBiz’s suite of business solutions includes dealer software products focused on the “Buy-here Pay-here”, non-prime automotive finance markets an area that CarBiz is recognized as an expert in. CarBiz also operates its own chain of buy-here pay-here dealerships totaling 26 stores in 7 States. Capitalizing on expertise developed over 10 years of providing software and consulting services to “buy-here pay-here” dealers, Carbiz entered the market in 2004 with its first location in Palmetto Florida. CarBiz has added 25 more dealerships since then. CarBiz manages a portfolio of close to $30,000,000 of its own loans which continues to grow. These auto loans are originated at the 26 company operated stores.
Products and Services
The traditional core business of CarBiz is software and consulting to the automotive dealer industry, particularly buy-here, pay-here dealers. This division has experienced steady growth over the history of the company, generating recurring revenues and providing valuable statistical information and dealership management expertise to support the company’s expansion in automotive finance market.
The software and consulting division, therefore, provides a solid financial foundation, as well as vital infrastructure for the technical, training and analysis needs to support the company’s dealership expansion.
The company’s culture of training and development has provided it with a young, capable, effective and aggressive management team, conducted a major re-write of the flagship MSP product for buy-here pay-here dealers; improved the internet delivery of all of its products, from software to consulting functions; added several new consulting products that offer smaller services to a wider range of clients; and offered several new “add-on” products for software customers. The company’s efforts, in both product development and marketing, are equally committed to not only gaining new customers, but to increasing revenue per existing customer.
CarBiz clients, which number more than 3,000 across 50 states, use one or more of the following products and/or services:
Software (stand-alone, LAN/WAN or ASP versions)
MSP (Management System Plus)- A complete easy-to-use solution for cost effective management of buy-here pay-here automotive dealerships. This integrated software package provides tools to track and manage underwriting and sales, inventory, customers and collections.
VisualCat – Provides a full range of sales tools to locate the right vehicle for customers, help choose appropriate financing and close the sale faster and easier – while controlling dealer costs and maximizing profits.
IDA (Independent Dealer Accounting) – A capable, cost effective dealer financial control system designed to process accounting requirements for the independent auto dealer. Fully-integrated with the MSP and VisualCat products to simplify data entry.
Training and Consulting
CarBiz offers a range of training and consulting packages from a basic, startup operation to high-end consulting and analysis. The company offers training on-site or at the CarBiz training center in Sarasota, Florida and Rockford, Illinois as well as on-line troubleshooting and telephone consultation.
An annual dealer conference, which is open to anyone in the industry, draws dealers from throughout the United States who want to learn more about maximizing profitability and reducing risk associated with the auto finance business. CarBiz recently joined forces with NABD, adding the CarBiz conference program to the Industry’s largest and most prestigious event, the National Alliance of Buy-here Pay-here Dealers conference, held annually in May.
Opportunity
CarBiz management, along with many industry experts, sees the opportunity for consolidation in this “Alternative Financial Services Market” and continues to guide the company in the direction of aggressive growth in this market through consolidation and by organic means. CarBiz is well funded and well positioned with financial partner’s that share the CarBiz vision.
