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One on One with Tricolor Founder and CEO Daniel Chu by TIADA Staff
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uring TIADA’s recent Virtual Conference and Expo participants had an opportunity to listen to the wisdom of Daniel Chu, Founder and CEO of Tricolor, the nation’s largest used vehicle retailer focusing on the integrated sale and financing of vehicles to Hispanic consumers. This breakout session had the highest number of attendees during the live presentation when dealers also had an opportunity to ask Chu their own questions. Here’s an excerpt from that interview conducted by Kenny Atcheson from Dealer Profit Pros.
What is a mission driven company and why is it so important at Tricolor?
At our company we talk about building a business that is sustainable, not a business that is designed to maximize profits on any given year but a business that over time is sustainable — and when we talk about sustainability, we talk about being able to deliver value to the consumer. There is also an underlying belief that, to the extent we can deliver value to the consumer, the economic outcome will take care of itself. And so, being mission driven to us is all about aspiring to a purpose that is more overarching, it’s not about how many cars did we sell or how many locations do we have. It’s really about a view around how can we really enhance the customer’s life by providing some value that ultimately enables them to build a path to mainstream financing.
How are you using data analytics and technology to attract the right customer?
We finance a customer who oftentimes doesn’t have a history of credit bureau data. In most cases they don’t exist in the credit bureau. We begin by gathering as much data as we can, as a BHPH operator we have the advantage of actually interacting with the consumer. If you look at the large lenders in sub-prime auto, like Santander, Wells Fargo, September 2020
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