Ugly Duckling Announces Change to DriveTime and Introduction of 0% Financing.Business Editors PHOENIX--(BUSINESS WIRE)--Aug. 28, 2002 Ugly Duckling Ugly Duckling scorned as unsightly, grows to be graceful swan. [Dan. Fairy Tale: Andersen’s Fairy Tales] See : Beauty Ugly Duckling ugly outcast until fully grown. [Fairy Tale: Misc.] See : Ugliness Corporation, the largest used car dealership This article is about car dealerships. For the indie pop band, see Dealership (band). A car dealership or vehicle local distribution is a business that sells new cars and/or used cars at the retail level, based on a dealership contract with an automaker or chain in the country focused exclusively on the sub-prime market, today announced that effective September 1, 2002, it is changing its name to DriveTime(TM). The name change reflects the Company's new direction and a change in the way it does business. DriveTime will be positioned to be the auto dealership and finance company of choice for people with less than perfect credit by providing innovative credit solutions, quality vehicles and outstanding customer service. Innovative credit solutions Under the Company's revolutionary new program, RateAdvantage(TM), DriveTime is offering 0% financing on used cars to sub-prime customers through the end of October. The 0% financing will be offered to all customers who meet the Company's lending requirements, with the minimum down payment varying based on the customer's credit level. In addition to this limited 0% financing offer, RateAdvantage(TM) will offer lower interest rates based on the down payment and credit level of the customer. The RateAdvantage(TM) program also offers lower borrowing rates for repeat customers who have paid timely on their previous loan with the Company. The Company is offering a fresh start to existing customers who have not paid timely in the past, so they can still qualify for lower rates on their next purchase as long as they pay timely from this point forward. The Company also offers lower down payment options for repeat customers as well as lower minimum down payments based on the customer's credit grade. Quality vehicles DriveTime is offering new and higher quality cars that are now DriveTime Certified See certification. . The Company has broadened the cost range of vehicles that it sells, and now offers cars as new as the 2001 model year. All vehicles go through an extensive 52-point inspection at one of the Company's Inspection Centers and come with our new DriveCare(TM) warranty, which covers major mechanical and air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. components for 3 months or 3,000 miles. In addition, DriveTime runs all of its cars through AutoCheck, the industry's most extensive auto history database, to ensure that there are no odometer odometer (ōdŏm`ĭtər), instrument provided in an automotive vehicle to indicate the total number of miles that have been traveled. , title or other vehicle history issues that can be discerned from public records. The Company will even give a copy of the AutoCheck report to all customers, so they can have confidence in their purchase. Customer Service The Company is committed to improving the car buying experience for people with less than perfect credit. The Company believes in treating customers with respect. No games. Just straight talk. The Company has the advantage of not using an outside finance company. With all financing done in house, this means more flexibility and less time to close the sale. As part of the changeover (programming) changeover - The time when a new system has been tested successfully and replaces the old system. to DriveTime, the Company is spending approximately $6 million refurbishing its dealerships to provide a more attractive and comfortable environment for its customers and employees. The Company is introducing a new marketing campaign, highlighted by new television ads that feature the company's enlightened attitude and programs. The tag line tag line also tag·line n. 1. An ending line, as in a play or joke, that makes a point. 2. An often repeated phrase associated with an individual, organization, or commercial product; a slogan. Noun 1. for the new campaign is "DriveTime. Now you've got options." Greg Sullivan, Chief Executive Officer and President of DriveTime, stated, "We are pleased to announce this strategic repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. and new vision for the Company. We believe these changes will uniquely position us in the sub-prime market to sell and finance vehicles to all customers with less than perfect credit. We will continue to serve the lower level of sub-prime traditionally served by the Company, but we also want to attract customers with better credit who may have had some credit issues in the past. "We believe we understand people with credit issues. They come to us frustrated frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: and with few options. We treat them with respect and give them something no one else is offering: options. Options such as industry leading credit solutions -- payment terms, interest rates and down payments; a first class customer experience -- friendly, no games, straight talk; and quality vehicles, DriveTime Certified with DriveCare(TM), our exclusive limited warranty Limited warranty A warranty with certain conditions and limitations on the parts covered, type of damage covered, and/or time period for which the agreement is good. , a 52-point quality and safety inspection, and an Experian AutoCheck history. Everyone wants options, and we give them to people with credit issues. "This is dramatically demonstrated in the new 0% financing program that we are offering as part of introducing DriveTime to our customers. 0% financing has been tremendously successful for new car manufacturers and their dealers. In the past this financing has been only available on new cars and to people with excellent credit. A small percentage of people actually qualify for these programs. At DriveTime, all of our customers that meet our lending requirements will qualify. Some will need larger down payments than others, but all will have the option of participating in 0% financing, an incredible option for people with less than perfect credit. "We are very excited by the change. We believe DriveTime will set a new industry standard and create its own sub-prime market category. We are stepping above `buy here-pay here,' a $40 billion market served by over 30,000 dealers. We are `The Financing Dealership,' a new paradigm New Paradigm In the investing world, a totally new way of doing things that has a huge effect on business. Notes: The word "paradigm" is defined as a pattern or model, and it has been used in science to refer to a theoretical framework. for the sub-prime auto market that we believe will be very attractive to people with less than perfect credit. "The changeover involves a significant capital commitment, as well as lots of work on the part of our employees. We are creating a new brand, with new products and new levels of customer service, an effort that is neither easy nor without risk. But we firmly believe that these changes will benefit our customers and make us a better, more successful company, one that we can all be proud of." Headquartered in Phoenix, Arizona Phoenix /ˈfiːˌnɪks/ (English: Phoenix, Navajo: Hoozdo, lit. "the place is hot", Western Apache: Fiinigis) is the capital and the most populous city of the U.S. , DriveTime's vision is to be the auto dealership and finance company of choice for people with less than perfect credit through offering innovative credit solutions, quality vehicles and outstanding customer service. The Company finances and services sub-prime contracts generated at its 76 DriveTime dealerships, located in 11 metropolitan areas in eight states. For more information on DriveTime or to find the dealership nearest you call 1-800-To-Drive or visit the DriveTime website at www.drivetime.com, effective September 1st. This press release includes statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private and Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. We claim the protection of the safe-harbor for our forward-looking statements. Forward-looking statements are often characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by the words "may," "anticipates," "believes," "estimates," "projects," "expects" or similar expressions and do not reflect historical facts. Forward-looking statements in this press release relate, among other matters, to: the launch and success of DriveTime; customer acceptance of new products and services such as RateAdvantage, DriveCare and DriveTime Certified, the Company's ability to execute this vision, and the impact of higher quality inventory. Forward looking statements are subject to risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward looking statements, some of which we cannot predict or quantify Quantify - A performance analysis tool from Pure Software. . Factors that could affect our results and cause or contribute to differences from these forward-looking statements include, but are not limited to: any decline in consumer acceptance of our car sales strategies or marketing campaigns; any inability to finance our operations in light of a tight credit market for the sub-prime industry and our current financial circumstances; any deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the used car finance industry or increased competition in the used car sales and finance industry; any inability to monitor and improve our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and collection processes; any changes in estimates and assumptions in, and the ongoing adequacy of, our allowance for credit losses; any inability to continue to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of sales; increases in interest rates; generally maintaining liquidity levels and cash flows sufficient to fund our ongoing operations; the failure to efficiently and profitably manage acquisitions and/or new car dealerships; adverse economic conditions; any material litigation against us or material, unexpected developments in existing litigation; and any new or revised accounting, tax or legal guidance that adversely affect used car sales or financing and developments with respect to the going private transaction. Forward-looking statements speak only as of the date the statement was made. Future events and actual results could differ materially from the forward-looking statements. When considering each forward-looking statement, you should keep in mind the risk factors and cautionary statements found throughout this press release as well as those contained in our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and our other filings with the SEC. We are not obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to publicly update or revise any forward looking statements, whether as a result of new information, future events, or for any other reason. |
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