J. D. Byrider
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J.D. Byrider is an Indianapolis-based used car dealership franchise started by the late James F. DeVoe in 1989. The company sells used cars to those who do not qualify for financing at a traditional dealership with interest rates that correlate to the high amount of risk being taken by the company.
J.D. Byrider has 136 locations in 30 states and is most heavily centered in Indiana, Ohio, and Florida. The great majority of J.D. Byrider locations are east of the Mississippi River. Although J.D. Byrider is the car lot normally advertised in the media, the company's sister organization—CNAC, which stands for Car Now Acceptance Company—deals with the actual financing and loan collection process. CNAC normally buys 100 percent of the loans that J.D. Byrider originates.
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[edit] Recent Store Openings
Currently there are 136 J.D. Byrider locations, 20 of which are company-owned locations and 116 of which are franchise locations. In 2011, J.D. Byrider has opened 10 new franchise locations – Wood River, Ill.; Dundalk, Md.; North Little Rock, Ark; Morgantown, W.V., Las Vegas; Dayton, Ohio; Independence, Mo.; Tampa, Fla; Greensboro, N.C.; and Houston. The company also opened two company-owned locations in 2011 – Louisville, Ky., and Columbus, Ohio. There are plans to open additional locations in 2012.
[edit] Business model
J.D. Byrider advertises itself as a place where a person can purchase a car if they have bad credit, no credit or poor credit, and to help improve his or her credit score.[1]
[edit] Company history
The foundation of the company was laid in 1979 when Jim DeVoe, Sr., worked at his father’s Chevrolet-Cadillac dealership in Marion, Ind. Interest rates were high, inflation was rampant and car dealers were struggling. Jim decided that if the dealers could provide customers with affordable cars financing with dependable terms, they could grow the business. In 1986, DeVoe started the Auto Credit seminar program to “teach” other dealers his system. It was very successful and, over the years, more than 700 dealers (new- and used-car dealerships) participated.
DeVoe then launched the J.D. Byrider franchise because the business model is very capital intensive and a small dealer would not be able to grow to multiple locations as quickly as with a franchising model. He operated on the theory that he could bring his expertise and experience and the franchisee would provide capital, the management skills and the personnel.
J.D. Byrider uses the "Buy Here Pay Here" financing model.
In May 2011, J.D. Byrider announced its acquisition by Altamont Capital Partners, a private equity firm based near San Francisco. The acquisition injected the capital needed for J.D. Byrider’s continued growth.[2]
[edit] J.D. Byrider Racing Team
Since 1997, J.D. Byrider has sponsored a race team owned by NASCAR driver Tony Stewart.[3] The original sponsorship began with Tony’s late model dirt-track car. Since then, the team has grown to three drivers: Stewart in the dirt late model; Steve Barnett in another dirt late model; and now, 20-time World of Outlaws champ, Steve Kinser in a winged, open-wheel sprint car, all of which are now sponsored by J.D. Byrider.
[edit] Government action
- In 2005 the Ohio Attorney General Jim Petro settled a lawsuit against J.D. Byrider stemming from customer complaints. As part of this settlement, JD Byrider agreed to make more than 20 remedial changes to its business practices in order to operate within compliance of Ohio laws.[4][5]
- In 2006 the Kentucky Attorney General settled a lawsuit against J.D. Byrider stemming from customer complaints. Customers who purchased vehicles from J.D. Byrider of Louisville between January 1, 2000 and December 31, 2004 may be entitled to either a cash refund or a credit of $500 on their loans. On Feb. 1, 2006 the Louisville location ended its association with J.D. Byrider.[6][7][8]
