Sales leader says the fintech firm funds 32% of the independent operation’s monthly deals and has it on the path to expansion and debt elimination.
With an amount financed of more than $17,000, the Agora-placed deal crossed the finish line on July 23, 2024 — pushing Cavender’s Auto Sales and Leasing across its first payout milestone in the Agora Guaranteed Funds program. Launched the same month, the drive offered partner dealers the opportunity to earn 2% of the unpaid principal balance of the next 10, 25, 50, and 100 auto loans funded by Agora and still have material Additional Loan Profit remaining.
Matthew Struble, who heads up sales and F&I for the independent store, doesn’t remember much about the customer and admits to being unaware of the deal’s significance. “I didn’t even realize we hit it until I got the call,” Struble says. “I appreciate the recognition, but for me, it’s about growing our loan portfolio with Agora so we can get to where we want to be.
“Besides, it’s not my place to tell customers where to finance their purchase. We submit the deal, get the approval, and, from there, try to meet the buyer’s needs.”
Birth of an Agora Champion
Struble entered the car business in 2009, spending much of his career in sales leadership roles at franchised stores throughout south-central Oklahoma. His experience includes teaming with the youngest owner as the youngest general sales manager to win the Toyota President’s Award while at Gulf States Toyota. He also got schooled in memorable catchphrases from big-name car people like Big Red Kia’s Brad McRae — his understanding of how to operate a successful dealership for the long run growing with each stop.
“I understand long-term — looking at the number that makes sense,” he says. “It’s a matter of how many units we’re going to win, lose, and break even on. At Cavender’s, we know we’re going to break even on 20% of our cars. Most dealers who don’t look at it that way struggle.
“What we’re looking to do in the next two years is cross the point where we can reinvest in the business and eliminate floorplan and other expenses that eat into our bottom line.”
It’s a vision that came to him three years ago when he reached out to an industry contact while serving as sales director at another independent store in Ardmore, Okla. He was looking for another subprime finance source, and his industry contact connected him to Agora. He was immediately sold on the program and took his vision with him when the owners of Cavender’s Auto Sales and Leasing, Tod and Jennifer Cavender, hired him to manage deals.
“I sent an email to [Agora CEO Steve Burke] that read, ‘I’m going to be your best client,’ and he and his team made sure we had everything we’ve needed since,” Struble says.
Getting with the Program
Cavender’s signed with Agora in June 2023 — Agora funded the operation’s first loan 15 days later. Agora has financed nearly 250 auto loans since, with the operation directing about 32% of its monthly business to the Arlington, Texas-based fintech. Struble says the Additional Loan Profit from his operation’s multimillion-dollar portfolio has it about two years from eliminating its largest expense, a $250,000-a-year floorplan.
“What we’re doing with Agora represents our new absorption rate,” he notes, adding that the operation, which includes a second location opened in early 2024, retails and wholesales about 200 units per month.
The sales leader offers advice to dealers considering a similar relationship with Agora, noting the program isn’t for everyone. “If you’re looking at Agora as just a place to park cars, you’re probably not going to be successful long-term,” he says.
"If you're looking for a consistent way to grow the business and get better at what you do, I think Agora is perfect. But you have to be willing to follow the guidelines."
That’s especially true when sourcing inventory, he adds. For Agora, that means vehicles under 10 years of age with no more than 135,000 miles on the clock. For Cavender’s, it’s simply vehicles with a low cost of ownership, like Honda Civics, Nissan and Chevrolet vehicles, and Dodge Journeys. That profile fits perfectly with the dealership’s medium-income customer base in Durant — known as the Magnolia Capital of Oklahoma, the headquarters of the Choctaw Nation, and home of the second-largest casino in the state, Choctaw Casino & Resort.
“For us, it was about getting funds at a reasonable cost, and we looked at many different methods and avenues,” Struble says. “Everybody wants to make that 21% interest. The ROI looks great on paper, but there’s more involved. We needed a partner who understood the business — someone willing to grow and work with us. We found that in Agora.”