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Charles Teel, a Georgia resident, is the incoming president of the National Independent Automobile Dealers Association. He is currently chief financial officer for Savannah International Motors, Inc. Prior to that, he was a used-car dealer for 16 years, with two stores.
Used Car News: How did you get started in the car business?
Teel: I went to work for a wholesale beverage distributor - right out of Auburn University in 1966. I wound up as an owner of the company and through the years, what had started with two delivery trucks, ended up with a fleet of 43 delivery trucks and 31 automobiles. Having that many units, we operated our own repair facility. You might say that I was in the used car business a long time because I was constantly buying and selling trucks and cars to keep the fleet going. I bought most of the cars and trucks from a franchised GM dealer and when I sold the company in March, 1990, this individual told me to come work for him and he would teach me the car business. I took him up on the job offer and, in 1990, I got into the car business.
In 1991, we opened a related finance company and a used-car operation.
I owned A.C.T. Car Sales with two stores, one in the Savannah area and one in Brunswick, Ga., for 16 years.
UCN: What is your current involvement in the car business?
Teel: I dissolved both companies in June 2007. I’m still in the process of dissolving them. It takes a while to work through those contracts.
I wanted to stay in the area and in the car business. So I contacted a headhunter and in November 2007, I went to work for Ralph and Anna Tolman of Savannah International Motors Inc. as their CFO and controller.
UCN: Leaving out the past six months, how has the industry, in general, changed over the years of your involvement?
Teel: You can leave in the last six months, because operating a used-car dealership (or any type dealership - for that matter) is full of challenges. One that can be the most difficult to face is change. (Change) has caused the dealership body to become more efficient through the education process over the years.
UCN: What prompted you to seek this post as NIADA president?
Teel: I think it is the satisfaction of achieving a personal goal. I am a goal-oriented person. Several years ago, I developed a personal plan for myself to achieve this milestone in my professional career. Second, I am actively engaged in the dealership’s operations – (handling) floor-plan credit issues and consumer credit issues. From my office of president of NIADA, I plan to help dealers any way I can to minimize these credit issues and maximize our profits.
UCN: What are your goals for the coming year as NIADA president?
Teel: My vision for NIADA in the near future includes effective communication as my ongoing commitment to our members and, most importantly, to continue to deliver world-class industry education programs to our members and vendors.
Mike Linn is doing a great job of managing our assets and resources and he should continue to critique and develop cost savings and marketing opportunities to enhance our membership body.
UCN: This coming year, the used car industry in particular, and the auto industry in general, faces a lot of challenges with the bankruptcies of Chrysler and GM, for example. How might this affect the used-car industry and what can NIADA do to help dealers and the industry succeed during these trying times?
Teel: For the past several years, credit was available for all kinds of borrowers. In that situation, we could obtain financing for contracts that a lot of times didn’t make much economic sense. Inevitably, reality sets in. The housing industry showed us that poorly conceived loans failed and the borrower could not service their mortgage. Banks and lenders worry about their existing loans and are becoming very cautious about underwriting new ones. Consumer confidence begins to plunge.
The current disruption in the credit markets has clearly affected our industry and our association. As a result, the banks and lenders have turned very cautious on automobile loans and this has affected our sales. Like any used-car dealer, NIADA is disappointed with this type of occurrence.
We believe that our pre-owned vehicles offer a good economic value and other fun options for consumers. I strongly believe todays banks and lenders are undervaluing the strength of our vehicles and with the correct underwriting guidelines we can produce sound cash flow generation.
I strongly urge dealers to take a look at the NIADA’s TARP Program (“Together Automotive Retailing Prospers”) that NIADA will be unveiling at this year’s annual convention. I think the dealer members will be excited about the innovation that Linn will be introducing at the convention.
UCN: How has a strong state IADA in Georgia helped you in your years as a car dealer?
Teel: I was recently re-reading the story of David and Goliath. In this reading, I thought about David’s choice of five stones. Here is a young man with the confidence of youth, filled with the spirit of God and determination, undergirded by tremendous faith. He told Goliath that God would defeat him. You know, he knew God only needed one stone (if any at all); yet he went to the river and filled his bag with five. It would seem David knew to plan and make sure he had options. How did he know if it would be the first stone, the second or the last that would bring down the giant? His strategy was to have enough ammo. I think this is a message we can use on planning. No matter how confident we may be about our efforts, we have to plan, know our strategy and have contingencies. The IADA taught me how to plan, using projections from experience and activities of other members in order to keep systems current and in good working order. This type of corporate planning ensures that you will stay on a course that will best serve you, and that we adapt to a changing business environment.
UCN: Could you tell us about your family?
Teel: Diane Teel, my wife and best friend, and I have been together 46 years. We have three children. Our oldest daughter, Paige, has two children, Brandon and Taylor. Our second daughter, Robin, has two children, CJ and Joshua. Our son, Jon Charles, is married and all three families live in the Savannah, Ga., area, within ten miles of Diane and me. Dogs and cats have been a part of my family for 46 years and presently we are the guardians of two four-legged girl dachshunds; a black named Daisy, and a red named Sara that are sisters. We also have a cat named Crater and he is 15 years old.
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