Jerrel Richards' decision to send more deals to Agora pays off after Hurricane Beryl forces impacted his business
There was no way for Jerrel Richards to know the impact of his decision. From how he sourced inventory to his meeting with his finance manager, the owner of Houston-based Space City Auto Center was committed to directing more deals to Agora Data.
That was before his dealership became one of the 2.2 million homes, schools, and businesses to lose power after Hurricane Beryl slammed into the Texas coast on July 8 — the storm’s 80 mph winds sending a car-port awning from a neighboring tire shop through Space City’s roof. Richards says his business lost power between July 8 and July 14.
“We were blessed. It could have been a whole lot worse,” he says. “But then the power outage put us out of business without cash flow for a week. Thankfully, Agora had just launched the Agora Guaranteed Funds program, and we had already made the adjustments needed to participate.”
A Chance to Grow
Richards says he learned of Agora years ago through a commercial he saw on Facebook featuring CEO Steve Burke. That was before the current iteration of the Agora program, which allows dealers to earn the Additional Loan Profit on the lifetime of every loan the Arlington, Texas-based fintech funds.
“Our business wasn’t a mesh at the time because we weren’t doing a lot of buy-here, pay-her deals,” he says. “Then I got a call from an Agora rep in 2023. The program had changed, and she got me signed up.”
That was in February 2023. Since then, Richards’ loan portfolio has grown to more than $4 million on 186-and-growing Agora-funded car deals. Richards admits there’s plenty he can do with the Additional Loan Profit he stands to earn when his portfolio matures.
“Sometimes I feel like I work for my floorplan company,” he deadpans. “So, any help there would go a long way. Of course, we’re always looking to grow, so getting access to that Additional Loan Profit would help in many ways.”
Buying
Richards says 2024 hasn’t been a bad year. Still, it hasn’t been without its challenges — the cost of carrying inventory due to high floorplan rates, tightening credit availability, and rising lender fees limiting front-end profitability.
It’s why he’s kept tabs on how Agora scores vehicles. “We’ve really focused on getting newer inventory because Agora seems to like those 2022 and 2023 units. You score those pretty well for us,” Richards says, noting that affordability also drives what he puts on his lot.
“Having Agora has been huge. They are a great partner to have in your corner,” he says. “But make sure you understand the program and use it to your benefit. In other words, do the deals that make sense and operate as though you were lending your own money.”
For Richards, that means sending Agora deals involving repeat customers with solid loan repayment histories — that’s unless there’s a better callback that benefits the customer. According to Richards, such scenarios are rare.
"Having Agora has been huge. They are a great partner to have in your corner," he says.
Perfectly Timed
Just as Hurricane Beryl was preparing to barrel through Houston’s Harris County, where Richard’s dealership operates, Agora was rolling out Agora Guaranteed Funds — a program designed to accelerate a dealer’s realization of the lifetime profit of every loan Agora funds by allowing them to earn 2% of the unpaid balance of the next 10, 25, 50, and 100 contracts.
Space City Auto Center crossed the 10-contract payout milestone on July 24, 10 days after Richards reopened following the post-Beryl power outage. “I knew we were going to hit it, and the timing was perfect,” he says. “We had no cash flow for a week, so it helped cover some operational expenses so I could make payroll. Now I’m closing on 25 contracts.”
Richards, however, saves his highest praise for Agora’s support teams. “My rep is always there whenever I need him — lets me know what’s going on with my portfolio,” he says. “And the funding team headed by Kelli Smith is stout. They are great at helping me get deals done. And if something’s holding up my deal, I’ll get a call directly from Kelli. You don’t get that from other finance sources.”