JULY/AUGUST 2012 JULY/AUGUST 2012
CIADA INSIDER C O L O R A D O
I N D E P E N D E N T
A U T O M O B I L E
D E A L E R S
A S S O C I A T I O N
Curbstoning What’s Being Done? page 14
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t FORMULA FOR SUMMER SELLING t MARKETING POTHOLES TO AVOID t COMPLIANCE OVERDRIVE
DALLAS, TEXAS Permit No. 2079
PAID PRSRT Standard U.S. Postage
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You Have a Date 2012 Educational and Training Opportunities for IIADA The educational training is hosted by the Illinois Independent Automobile Dealers Association (IIADA) and includes expert trainers in each field, with an opportunity to become a Certified Master Dealer.
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MAGAZINE CONTENTS 04 06 10 12 14 20 22
Formula for Summer Selling Go All In on Service What Customers Really Want Avoid Marketing Potholes Curbstoning: What’s Being Done Mobile Ads a Must for Dealers Compliance Overdrive
WHAT’S NEW Sirius XM Satellite Radio is America’s
satellite radio company. Independent dealerships can now offer a free SiriusXM three-month trial on all pre-owned vehicles with factory-equipped satellite radio. In addition to selling your customers a quality vehicle, you’ll be giving them the opportunity to enjoy satellite radio. And there’s no cost to your customer. Visit www.siriusxm.com/niadaprogram to enroll your dealership today!
NIADA Member Health Plans, administered by JLBG Health, bring you choice and flexibility when designing your personal health plan while providing potential savings of thousands of dollars annually. To review the plan details and receive an instant online rate, visit www. NIADAHealthPlans.com or call 1-888-308-9340.
ADVERTISERS INDEX AFC ......................................................Inside Front Cover Ally ...................................................................... 7 AutoTrader.com .....................................Back Cover Dyer Auto Auction ..............................................18 Insurance Auto Auctions ....................................19 Kelley Blue Book ...............................................13 Lohman Companies ....................Inside Back Cover Manheim.com......................................................9 Manheim Minneapolis.......................................... 5 Nowcom ............................................................11 Protective ..........................................................15 United Acceptance............................................. 17 Voisys ................................................................22
OFFICE FOR INFORMATION ON HOW TO BECOME A MEMBER OF IIADA, PLEASE CONTACT BRUCE EKLUND "5 03 -*-$)&&1&3 !"0- $0.
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 888 /*"%" $0. t 888 /*"%" 57 NIADA HEADQUARTERS: #308/ #-7% t "3-*/(50/ 59 1)0/& FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF 03 530:!/*"%" $0.
The Dealer’s Edge is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 760065203; phone (817)640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of The Dealer’s Edge, the Illinois Independent Automobile Dealers Association, or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of IIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright Š 2012 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com. STATE MAGAZINE MGR./SALES 5SPZ (SBGG r USPZ!OJBEB DPN EDITOR "OEZ 'SJFEMBOEFS r BOEZ!OJBEB DPN ART/PRODUCTION MGR. $ISJTUZ )BZOFT r DISJTUZ!OJBEB DPN PRINTING Nieman Printing
JULY 10 at the Manheim Arena Auto Auction BHPH ROUNDTABLE
NOV. 15 at the St. Louis Auto Auction COMPLIANCE ISSUES
AUG. 14 at the Greater Rockford Auto Auction BHPH ROUNDTABLE
DEC. 10 in Oak Park at the Training Center RE VIE W OF ALL TRAINING
SEPT. 12 at the Morton Auto Auction IS RENTAL FOR YOU?
FOR INFORMATION, VISIT WWW.IL-IADA.ORG.
OCT. 16 at the Manheim Arena Auto Auction DE ALER MANAGEMENT SYSTEMS
We have created an education and training program with a mission to promote, educate and advance the independent dealer. We will make available a core of quality education and training opportunities that responds to current dealership needs.
DEPARTMENT OF THE TREASURY IRS ENTERPRISE COMPUTING CENTER P.O. BOX 33116 DETROIT, MI 48232-0116
Person to Contact: Dail Hughes, ID#02-37367 Tax Law Specialist Telephone Numbers: 1(866)270-0733 option# 3 or (313)2346146 Refer Reply to: SE: S:/FBSA:PO:DCC: CTR SG120487 Date: April 5, 2012
Bank Secrecy Act forms approximately must submit the most current version of a form. Please resubmit the form(s) as soon as possible and no later than 10 business days upon receipt of this letter. Failure to properly penalties. If you need to resubmit this form(s) on paper, please visit FinCEN’s website to obtain and download the most current version of
Dear Sir or Madam, The Financial Crimes Enforcement Network (FinCEN), via the Internal Revenue Service Enterprise Computing Center-Detroit (ECC-D), has received the Form(s) 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, dated February 27, 2012. We are unable to process the Form(s) 8300 because you did not submit the correct form version. FinCEN updates
bsaforms/. Make sure that you mail the and Where to File� section of the particular form. Do not mail the form(s) to the address at the top of this letter. If you have any questions about this letter, please contact Dail Hughes @ 1 (866) 270-0733 option #3. Thank you for your assistance. IRS Form 8300 Rev. Nov. 2011
Board of Directors Chairman Randy Crase Crase Auto Connection 25355 E. Ames St. Channahon, IL 60410 815-467-1807 randy_crase@comcast.net
Treasurer Lori Chignoli-Cora Chignoli Auto Sales 1850 Essington Road Joliet, IL 60485 815-439-2233 lori@chignoli.com
President Gordon Tormohlen Tormohlen’s Good People Automotive 1800 S. Ihm Blvd. Freeport, IL 61032 815-232-5543 cookiebar@mwci.net
Secretary Eric Nelson Nelson Automotive Inc. 1801 S. Busse Mt Prospect, IL 60056 847-439-2277 eric@heycars.com
1st Vice President Anthony Ferraro Payless Motorsport 13449 S. Pulaski Road Robbins, IL 60472 708-388-2300 agfauto@yahoo.com
Directors: Mark Alcorn Carlyle Auto Sales 1708 Broadway Rockford, IL 61104 815-397-5010 carlyle2005@aol.com
Paul Gluchowski Turner Acceptance 4454 N. Western Ave. Chicago, IL 60630 773-290-5002 paul@turneracceptance.com
Janette Peak PJP Auto Enterprise 3100 S. Douglas Springfield, IL 62704 217-793-3552 pjpautosale@comcast.net
Melanie Brown Chicago Car Auction 2731 Belvidere Road Waukegan, IL 60085 847-662-0100 melanie@chicagoauction.com Amy Goodnight Lohman Companies 3901 15th St. Moline, IL 61266 309-764-8331x220 amy@lohman-companies.com
For information on how to become a member of IIADA, please contact Bruce Eklund at 800-987-6627 or lilcheeper5@aol.com.
Alex Tovstanovsky Prestige Motor Works Inc. 8959 Hanslik Court Naperville, IL 60564 630-780-6439 alext@myprestigecar.com 3
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JULY/AUGUST 2012
THE
DEALER’S
EDGE
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B E I N G A B L E T O S E L L I N T H E D O G D AY S I S R E A L LY N O D I F F E R E N T T H A N S E L L I N G I N T H E H E Y D AY S .
Formula for Selling in the Dog Days of Summer The dog days of summer are here. The time to make hay while the sun was shining has come and gone. The typical Buy Here-Pay Here dealer will sell 40-45 percent of his of the year. He will also realize about the same percentage of his annual So if you got off to a slow start in 2012, the dog days of summer could be the only way to salvage your year. Because we all know the last three months are not time to try to make your year. Being able to sell in the dog days is really no different than selling in the heydays. The same four key ingredients to selling are the same. The only difference is the focus has to be there. In the heydays, selling is pretty easy. Customers have money. You have inventory. All is right with the world. But come the dog days, customers have less money. And they seem to be harder
key ingredients to selling in the dog days is training. Well-trained salespeople can sell any time of year. You should always be training your staff, always honing their skills. Both phone training and basic sales skills training should be done weekly, at a minimum. Work with staff on overcoming objections – role-playing is a good way to accomplish that. When it comes to phone training, work on how to set at a premium during the dog days, so your people had better know how to effectively handle it. The second ingredient is appearance. Now, I’m not necessarily talking about your employees’ appearance, which should always be neat and professional, but your overall lot appearance. The No. 1 reason customers list as the reason they come in is “drive by.” So if that is the case, why wouldn’t you want
your lot to look the best in town? The lot should always be neat and orderly, not with vehicles facing all four directions of the compass and then some. Vehicles should be spaced evenly, with a good mix of colors and styles. A lot party or lot rodeo should be done at least once a week, if not more. It will really go a long way to making your lot look fresh. You should consider the vehicles on your lot your mannequins and treat them theirs. Keep them fresh, neat, clean and always ready to sell. That goes for overall lot appearance as well. A fresh coat of paint and some weed killer can do wonders. Marketing is the next key ingredient. this is the time when repeat and referral programs really pay dividends. It’s a good time of year to focus on referrals, not just with your customer base but with outside companies and people as well. If you are not already paying referrals to non-customers, it’s something you should seriously consider. I can assure you some, if not all, of your competitors are. Marketing also extends to your web presence. Make sure your website is up to date, especially if you are displaying inventory. I was on a dealer client’s website the other day and he had pictures of some of his inventory with snow on it. In addition to the inventory, make sure all other aspects of your site are up to date. That includes any advertised specials, about us sections and employee introduction sections. You wouldn’t want someone calling or coming in asking for someone or something that is no longer there. The last key ingredient in the dog days selling formula is advertising. In this very competitive industry, advertising in some form or fashion is
almost a must. The thing that makes advertising effective is reaching the right folks with the right message. The two most popular media are, of course, television and radio. There is a thought people watch less television and listen to more radio in the summer, but that is just not the case. Studies have shown television viewing doesn’t drop off at all during the summer, and the same goes for radio listening. The important thing to remember about advertising on both those media is to remember you are not your customer, so don’t advertise to yourself. Chances are your customers watch different television stations and listen to different radio stations than you do, so make sure the stations you are on are the ones your customers are watching and listening to. Customer surveys from new and existing customers are the best way to gauge their entertainment preferences. Simply put, just ask. As with marketing, your web presence is also a way to advertise. The use of your website, as well as Facebook and even Twitter can be ways to get your message out. I wouldn’t necessarily count on those selling more cars, but they are perfect ways to advertise new inventory or special sales promotions. The formula for selling in the dog days is the same as selling in the heydays. It just takes a little more attention to detail. There are usually fewer opportunities in the dog days, so capitalizing on them is much more important. Remember, the two most important ingredients in the formula are the two most inexpensive. Hopefully, you have the right mix of all the ingredients to keep the dogs at bay.
BY BRENT CARMICHAEL
EXECUTIVE CONFERENCE MODERATOR NCM ASSOCIATES INC. BCARMICHAEL@NCM20.COM
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BACK TO THE BASICS: GO ALL IN
A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment dealerships, often franchise operations, that would pay better wages and I’d
service department isn’t something
that do it should be an integral part of the business, used to give the dealer an opportunity to attract, retain and Joe Lescota, the NIADA’s new director of dealer development, said money in the service department because the money that comes in
Our body man has been with us for we had a hard time getting someone
by specialists, he doesn’t have to bother with the hassle of hiring and training technicians, then replacing
been offering service at his store of time trying to drum up business for
said Lescota, the longtime instructor for years, operating on the theory that selling service when what they’re have less headaches just selling the cars Getting good help was one of has and multiply that number by the tools a service provider must own has it doesn’t matter if the dealer is
His lot has been around for 66 years, and for much of that time, it owners have to invest their own money in the purchase of scanners and other electronic devices used to communicate
and their body man pretty busy, That means doing repairs for
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| A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment |
added, the payoff can be tremendous
BACK TO THE BASICS: GO ALL IN
of seven service bays and 10 people
in a car, a dealer can glean all sorts technical schools and start grooming
are dependable and can be counted
Also, you have to give someone a Usually that means giving them if technicians don’t have enough to do, they’ll go somewhere where their It might also mean giving them
the right people, a dealer can have a service department that drives potential customers to the store,
Does he baby it or does he really run it
customers will wander around the lot
decision on the best vehicle to buy when
new, and if he sees something he
department, a dealer can get a customer used to bringing his vehicle
Elliff estimates his service department the cheap man who pays the most for
will end up having to spend a lot of
Additionally, he sees dealers good relationship with your customers, and they bring their cars to you for service, you can tell that customer
environments and technicians are $100 worth of reconditioning in a
A service department can also mechanics, it can usually be traced
it comes time to price the car, he’ll a rule of that segment of the used car business that when a car stops
demand for technicians and they’ll go Having a service department is a full
into a vehicle using the dealership’s own service department should be
If a dealer has a service department, the customer can bring the car in to
good technicians is a competitive sport the car, that should translate into go to a franchise operation because the boss there promised to send him to an
A customer might not have $300 on him right then and there, but if that $300 is spread out over the money in to develop the infrastructure needed to run a good service
of a dealer who is committed to provides a full variety of services, order to have a service department,
To better service his customers, his dealership can do anything from
Ultimately, having a good service department should mean more than another revenue source, Lescota aimed at serving the public at large and not just his current customer base, Elliff is bringing in new potential
He owns a couple of lots with a total
BY JIM STICKFORD
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L E A R N H O W T O S E L L B A S E D O N VA L U E , N O T P R I C E
What Your Customers Really Want How many times do you hear,
perceives as value, a sales professional
successful:
Most dealers will say they hear it sales professional shares with the prospect when it is presented as the only or Regardless of the industry, product or economy, a company does not need
The more the sales professional learns be able to establish value according to Practice, practice, practice:
with information about what they have to If a company wants to increase sales and margin, it needs to teach the sales
are saying will be of value to a client or
the sales leader does not mandate ongoing practice and get involved himself, it will
that happens, they need to practice doing that will not practice if the coach does not The difference between an amateur and a professional is a professional practices If the prospect cannot truly afford the product being offered, do not lower the
or go on sales calls assuming the sales call
it is learning how to create a real value customer has no choice but to respond, feeding a product or service and losing to have more candy, play all day and not Every customer wants the most for sales professional to truly understand a prospect, not just his service needs so he
once a sales professional learns how to help the prospect understand he really
value offered, those are the most common sure you’re able to sell on true value and That’s no different than a person going on a job interview and telling the interviewer he should be hired because
Those answers are generic and do not
Write down your questions and take them with you: This does not
you to show a client or prospect how important it is to fully understand their
question because it can only be answered after the sales professional understands
To determine what the customer
Help the prospect understand what makes you and your company
BY NATHAN JAMAIL
NATHAN JAMAIL, BEST-SELLING AUTHOR OF THE PLAYBOOK SERIES, IS A MOTIVATIONAL SPEAKER, ENTREPRENEUR AND CORPORATE COACH. THE FORMER EXECUTIVE FOR FORTUNE 500 COMPANIES AND OWNER OF SEVERAL SMALL BUSINESSES, TRAVELS THE COUNTRY HELPING INDIVIDUALS AND ORGANIZATIONS ACHIEVE SUCCESS. FOR MORE INFORMATION, VISIT WWW.NATHANJAMAIL.COM OR CALL (972) 377-0030.
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D O N O T M A K E A N Y M A R K E T I N G D E C I S I O N S W I T H O U T F I R S T U N D E R S TA N D I N G YO U R D ATA .
Avoid These Marketing Potholes It seems as though every day, new
While that provides many new options and opportunities, it can also be
Consumers search in many different ways so you need to build landing pages
Not having a solid media strategy Today, you need to have a social vehicles people want and if you’re On average, you should be getting twice the number of Internet and phone
and the good news is used car dealers have been dealing with it for years,
strategies and technology should deliver more data, telling you more
The bigger problem is using social
or follow you on Twitter, you need
Ignoring Google Places
Research shows the top three reasons people connect with brands on the games, contests and promotions; to learn about new products; and
There are still potholes in the road, but if you steer clear of the four biggest pages, which include business reviews,
information to create an engagement It is all about getting consumers
Not knowing your data your brand through social media, but the free monitoring and data analysis so you can be proactive with any
Don’t get your business caught review card that will give them discounts
calling your dealership or submitting lead forms daily, monthly and Not having a search engine strategy With changes in these four areas, you will see improvement in all service that can show you important information about how people are using
viewers are there and which pages are
BY BRIAN BAKER
BRIAN BAKER IS EXECUTIVE VICE PRESIDENT AND CHIEF CLIENT OFFICER FOR STREAM COMPANIES, HANDLING STRATEGIC PLANNING AND DAY-TO-DAY OPERATIONS FOR THE AUTOMOTIVE SALES AND CLIENT SERVICES TEAMS.
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U N L I C E N S E D O R U N F O R T H C O M I N G D E A L E R S H AV E A G E N T S P O S I N G A S P R I VAT E S E L L E R S I N C L A S S I F I E D A D S .
CARFAX Helps TV Station Take Aim at Curbstoner
Editor’s note: Curbstoning – sales of vehicles by unlicensed dealers – is a national problem that takes advantage of consumers and takes money away from state and local governments as well as legitimate dealers. This report from Memphis television station WMCTV exposing a local curbstoner and explaining the issue to the public is a direct result of the commitment of vehicle history
According to the sales documents, that Auto Connection is not licensed to sell cars, It wasn’t long until Wyatt started having
curbstoning. “We brought the issue to the station’s attention,” CARFAX public relations manager Chris Basso said. “Tennessee is one of the biggest hotbeds for curbstoning, but it’s a nationwide problem. Whenever we hear about curbstoners in a particular area, we work to get the word out about the potential problems with the cars these people are selling and how to avoid them. “Most curbstoners are selling cars reputable dealers won’t touch – cars with hidden damage or rolled-back odometers or such – because they’re trying to make a quick sale. Anyone buying a used car needs to be wary of not only the car but of who they’re buying it from.” Basso said CARFAX has contacted other media outlets, including stations in Nashville and Phoenix, with similar tips, as part of the company’s ongoing efforts to help educate and warn consumers and dealers about emerging issues involving used cars in their area.
The cars the Colemans claimed to have were actually cars they sold on behalf of
pinpointed Deborah Coleman as a curbstoner when the vehicle history or unforthcoming auto dealers have agents posing as private sellers on CraigsList and
If she had run a vehicle history report, she would have discovered The Auto Connection had Deborah Coleman curbstone Wyatt a car that had been in an Neither Coleman nor The Auto Connection disclosed the accident
cried and cried and cried about it, but I had
An undercover producer of The Action sellers who are selling cars that have a lot of Coleman has posted numerous listings for used car sales on CraigsList, all found while running searches based on her
By Andy Wise Action News 5/WMC-TV A police report revealed a car buyer intends to press theft charges against the son of a woman who is fronting used car sales from her home for a dealership, a
the vehicle’s private owner putting it up
admitted she was selling the vehicles for
it just saves all the [document] fees, and it history report or to have the car inspected Deborah Coleman, to purchase to sell automobiles in Tennessee, according When their delivery was delayed,
It’s when Coleman handed Wyatt the C O N T I N U E D O N PA G E 1 6
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C O N T I N U E D F R O M PA G E 1 4
CARFAX Helps TV Station Take Aim at Curbstoner
INDUSTRY CORNER
According to the Tennessee Code person to engage in business … as a motor vehicle dealer [or] motor vehicle salesperson
Pace of Dealers Adding Inventory Slows
Used car dealers have become less aggressive in bidding for inventory at
that law, selling hundreds of cars without getting a dealer’s license, costing the state and local dealers hundreds of thousands Coleman refused to answer questions camera interview, then abruptly canceled the
Report Shows Auto Credit Loosening
Average credit scores for consumers buying a vehicle have dropped to
Germantown police department records revealed another car buyer reported Coleman According to the complaint, the buyer blew the whistle on Coleman after he said he witnessed her and her son altering
percent for used, while the average loan term increased by one month for
Germantown police determined there wasn’t enough evidence to charge Coleman
Coleman’s curbstoning operation may be in violation of a Germantown city
Rising Sales Lift Floorplans
at a residential property for the purpose payment rates are elevated above historical levels, dealer inventory agings are
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BHPH Perspectives
BHPH CERTIFIED MASTER DEALER PROGRAM SET TO KICK OFF
delinquency, average net loss per charge off performance Membership in good standing in NIADA,
jointly announced the details of their
or by obtaining a copy of NIADA’s Used Car Industry Report
training program, scheduled to be held in Though NIADA has been conducting
A complete copy of the most recent
documents and transactional forms have had a positive legal and compliance
retail program for several years, this new
The eligibility criteria were established with an emphasis toward encouraging compliance with all industry laws and
prepared in accordance with generally At a very important time, during
and successful operating performance, and In addition, the dealer’s historical
challenging legal and regulatory issues,
will distinguish graduates to both capital The inaugural session is planned for
in the inaugural training program must meet certain operational standards,
debts, average cash in deal, average gross The program goal is to provide training
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BY KENNETH SHILSON K E N N E T H S H I L S O N , C PA , I S P R E S I D E N T O F S U B P R I M E A N A LY T I C S ( W W W. S U B A N A LY T I C S . C O M ) , A C O N S U LT I N G C O M PA N Y T H AT P R O V I D E S P O R T F O L I O A N A LY S I S S E R V I C E S A N D C U S T O M C R E D I T S C O R I N G S O L U T I O N S , A N D I S P R E S I D E N T A N D F O U N D E R O F T H E N AT I O N A L A L L I A N C E O F B U Y H E R E - PAY H E R E D E A L E R S ( W W W. B H P H I N F O . C O M ) . H E C A N B E R E A C H E D AT K E N @ K E N S H I L S O N . C O M . U P C O M I N G N A B D C O N F E R E N C E S I N C L U D E T H E E A S T C O A S T B H P H C O N F E R E N C E AT T H E G E O R G I A I N T E R N AT I O N A L C O N V E N T I O N C E N T E R I N AT L A N TA O N O C T O B E R 2 1 - 2 3 , 2 0 1 2 . F O R M O R E I N F O R M AT I O N , V I S I T W W W. B H P H I N F O . C O M O R C A L L ( 8 3 2 ) 76 7 - 47 5 9 .
their commitment to ethical practices and high business standards, graduates should
Underwriting best practices Collection best practices
opportunities will be offered throughout
Legal and compliance can be earned by attending the NIADA Dealer is recognition of a dealer’s dedication to the industry and his or her record of proven stability, reliability and ethical The instructors include several
Much, much more It is contemplated that changes will be made to the curriculum in the future The curriculum is designed for graduates training and this program offers advanced sessions focused on achieving operating
curriculum provides interactive training
management, build more positive strive to distinguish themselves from their
trends
Operators interested in participating can obtain an application by calling NIADA Each CMD graduate must subsequently
customers paying
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Making Repairs in the Buy Here-Pay Here World said Richard Chilgreen, a partner
usually in need of reconditioning before
the customer, creating great customer relations and helping save them money that they are then able to use to
effective way to have those cars
owner of Auto Land in Haltom City,
to understand that running a mechanic shop is very different from running shop can save dealers money is better
perhaps you should simply outsource often a good used part can be used at no
repair facilities buy complete new
addition to his two mechanics and
Reduced repair time: customers not only do not want to spend a lot of money on repairs, they also cannot afford to be without their
with customers and outside vendors
your business is by reviewing all the options and weighing the pros, cons and
an international dealer training and
tied to the quality of mechanics In-House Service Department: Pros
the sophistication of cars now,
department, no matter how large,
properly, it can result in lower
acquired units and get them ready for sale, if only by eliminating a trip to an
repair time, better quality control, increased sales and enhanced customer
selling point as well, letting customers faster the car can get out on the lot, the
dealer entering the service business has Lower repair costs: When a car is sent to an outside repair facility, often the price of the repair is calculated
hours and costing $400, that is what will be charged, even if the facility is
team, that offers a lot meaning to your
offering this inspection helps your Quality control (with a great staff): Having control over the quality for the overall customer satisfaction
C O N T I N U E D O N PA G E 2 2
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V I S I T W W W. D I G I TA L A I R S T R I K E . C O M O R W W W. FA C E B O O K . C O M / D I G I TA L A I R S T R I K E .
STUDY: Most Car Buyers Use Social Media Almost 70 percent of car buyers said social media aided their shopping process and a similar number said online reviews affected their choice of dealers according to a new study by the automotive social media and reputation management company Digital Air Strike™. Digital Air Strike said the 2012 Automotive Dealership Social Media and Online Reputation Study, completed study to analyze the use of social media and review sites by car buyers during the dealership selection process while concurrently auditing how car dealerships engage with consumers on these sites. The study measured usage trends on Facebook, Twitter and Google+ while identifying the top four dealership review sites – Edmunds, Cars.com, Yelp and Google Reviews – based on consumer use
The consumer study surveyed 275 car buyers who purchased a vehicle in the last six months and found that 69 percent of consumers said social media sites helped their vehicle purchase decision and 68 percent of car shoppers said dealership reviews impacted which dealership they visited when shopping for a vehicle. Fifty percent said dealership, while 18 percent said they either selected a dealership based on the reviews or changed their choice after reading reviews on multiple dealerships. The dealership audit, which included 600 automotive retailers around the nation, compared engagement levels from 300 dealerships that managed their 300 that used a vendor to manage their social media sites and online reputation. It showed 90 percent of those handling
online reviews, and 95 percent did not respond to positive reviews. In addition, 27 percent of dealers “crowd sourcing” techniques, compared to 87 percent of those with a social media partner, and dealers using outside vendors had more than double the number of followers on the top two social media sites. the importance of social networks and review sites in the car buying Alexi Venneri said. “Dealers who work with a social media partner can gain a in consumer engagement and related For more information, visit www. digitalairstrike.com or www.facebook. com/digitalairstrike.
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C O N T I N U E D F R O M PA G E 2 0
In-House Service Department: Cons
Certain states carry more restrictions
service manager or mechanic and
In addition, some states require auto
a quality shop, I negotiated an hourly rate with them and I never promise any
dealers need to consider the nuts and have to do what they promise or we will go Chilgreen and Rose, as well as many
insurance costs and regulations dealers
is a very high fee for the handling and
repairs are outsourced, Allen said they don’t mind because he still maintains control of the process and the customer
don’t do it right and have the right machinery to do it, you set yourself up for it comes to repairs that we discuss a lot Other considerations that must be made
you have appropriate insurance in place in case an accident happens in the shop or Rose said at Global dealers considering the addition of small dealership, she appreciates another business coming alongside her to share the ability to recruit a master mechanic
also vary from state to state so it is very important for dealers to understand their before I sell a car to someone, it was not
Without the right number of employees, Offering Service – But Outsourcing It If the costs, regulations or other issues
allows us to bring someone else in to
will they have to spend on equipment computer programs to operate this end of the business, as well as insurance and
service department, but you want to offer quality service, partnering with good outside vendors can be the answer for some
costs they will incur and they either don’t
mainly because other dealers in his area
Whether service and repairs are made
free way of accomplishing them is crucial
with internal problems, he decided to other times, at this point anyway, it doesn’t investigation into local facilities, he Liability and other expenses: Depending on the state in which your dealership is located, you also need to
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Quality Dealer of the Year Award Colorado Independent Automobile Dealer Association Official Nominating Form
Please complete this nomination form in as much detail and with as much documentation as possible. Submit all the information requested. Upon completion, return this form to the Executive Director of CIADA. Thank you for your support of this award. Name of sponsor if any: ___________________________________________________________________ Full name of nominee: ____________________________________________________________________ Name of Dealership:______________________________________________________________________ Title of Dealership:_______________________________________________________________________ Address of Dealership:____________________________________________________________________ Business telephone #:_________________________ Home telephone #: _______________________ Dealer’s home address:____________________________________________________________________ BIOGRAPHICAL INFORMATION (Please enclose photograph – 3”x5’ or larger, may be a family photograph) Dealer’s age:_______ Date & place of birth:__________________________________________________________________________ Educational history:_______________________________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ Family: Married:_____ Widowed:______ Divorced:______ Single:______ Spouse’s Name: ______________________________________________________ Children (name & ages): _______________________________________________ ___________________________________________________________________ AUTOMOTIVE CAREER When, where, and how did you started in the automotive business: _________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ Special facts of interest relating to your automotive career:________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ DEALERSHIP HISTORY (Please enclose photograph of lot – 3” x 5” or larger) Your dealership founded:___________________________________________________ History:________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ Are you currently active in your dealership?_______ Full Time ______ Part time _____ If more than one dealership is involved, please attach same information for all dealerships. THE CANDIDATE AS A DEALER Number of used cars sold last year:__________________________________________________ Physical plant (include improvements): _______________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ 24
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V I S I T C A R FA X . C O M
CARFAX Introduces Its Latest TV Ads CARFAX has launched its newest wave of television ads as part of the national “Show Me the CARFAX” campaign. Starring again in all of the ads to deliver the message of smarter used car shopping is the knowledgeable Car Fox. The spots, which humorously depict people buying used cars from various types of sellers, illustrate how CARFAX vehicle history reports can build well as the dealers from whom they’re buying. Car Fox issues a friendly reminder for consumers to make an educated buying decision from a trusted seller by saying, “Show Me the CARFAX.” “Smart used car shoppers make good buying decisions by communications director Larry Gamache said. “An inspection by CARFAX Report is the best one-two punch. “We’ve watched Car Fox help everywhere since he became part of the ‘Show Me the CARFAX’ campaign. We fully expect that success to increase with these latest ads.” The new ads can be viewed on the CARFAX channel on YouTube or the company’s website, carfax.com. “The ads featuring Car Fox have been wildly successful,” said Zevin Auerbach, a creative partner at Zimmerman Advertising. “The new series will give fans something to really look forward to. In essence, they’re mini-TV shows with a car dealer as a recurring character. The imaginative dealer is constantly trying to outfox Car Fox with a series of gimmicks like a ‘seal of approval,’ which is actually a live sea lion. “Of course at the end, the customer says ‘Show me the CARFAX,’ as our dealer makes one last humorous attempt to provide an alternative.” Carfax gives free marketing materials featuring Car Fox to Fox for Carfax Advantage Dealers.
RICH TRADITION 71 Years of Helping Independent Dealers Succeed ! Colorado Independent Automobile Dealers Association Get Both CIADA and NIADA Memberships for only $225 Join Now And Receive All Of The Following Benefits Plus Many More. . . CIADA is nothing new. It was established in 1941, to represent car dealers in Colorado. CIADA has a presence before the state legislature and becomes involved with the regulatory agencies whenever necessary. CIADA is the only trade association in Colorado representing the Independent Used Car Dealer. The association is organized to assure that control of the policies and activities of the industry is in the hands of active dealer members. CIADA is dedicated to combating legislation that is unfavorable to used motor vehicle dealers. Alone, a single dealer has little chance of successfully combating legislation and rules that will be harmful to his/ her business. Dealers who are united under the CIADA banner have a voice that is commanding and powerful. CIADA sends important news and information about the automobile industry to members through the CIADA Insider Magazine, the Used Car Dealer national magazine and email alerts. These publications will keep you informed on issues likely to affect your business. CIADA is recognized throughout Colorado as the official voice of the used car dealer. The association has an established record of accomplishment and fair dealing. Representatives of CIADA are welcomed and respected by officials of every regulatory agency that deals with the used car industry. CIADA proudly includes in its membership dealers of all sizes, from the smallest to the largest. Its strength is in the devotion of its individual members. So whether your business is large or small, you are urged to join the progressive association, an association dedicated to serving you, the Independent Used Car Dealer. CIADA provides an up-to-date and user friendly website packed with information ranging from Business Partners to requirements for obtaining a dealer license and an online store for all your form and business needs. CIADA has numerous educational opportunities including a weekly State approved Pre-Licensing class and regularly scheduled Title and Compliance seminars. CIADA members have free access to NIADA.tv for additional business training and information. CIADA is always looking for programs and services that are beneficial to the Independent Dealer. Membership dues are $225 for 12 months from the date you join and your National IADA are included. Call CIADA 303-239-8000 with questions. CIADA.org 25
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COMPLIANCE OVERDRIVE
Look Before You Lease When I attend industry events, I enjoy
on current challenges and trends facing
Adding leasing to an independent
already arranging loans and payments for
One topic that has come up recently is
Licensing: selling vehicles also allows you to lease
step in growing a business, dealers must consider the differences between selling
Insurance: When you sell a car, the title allowing a customer to use your vehicle for At the end of the lease, the customer returns the vehicle and doesn’t owe you any more money as long as the vehicle has only reasonable wear and tear and was driven no
your documents meet state and federal The federal Consumer Leasing Act and its implementing Regulation M are the lease disclosure equivalents of the Truth in Lending Act and Regulation Z for
require additional disclosures and consumer you will need to create a unique document set Taxes: In a lease you retain ownership,
have property and liability insurance to
purchase the vehicle into your costs and lease calculations, but you might also need
However, when a dealer leases a car, he If there is an option to purchase, the option price bears some relation to the
accident, you might be subject to liability as operation, meet with your legal counsel and
lessee doesn’t have the option to purchase for $1 because that would really be a sale,
Collections: timely retail contract payments, you can
Pricing: Determining the sales price
In a lease, the lessee doesn’t own the car
margins, and sell the vehicle for more than
the lessee to emotionally handle repossession, but it might mean the lessee isn’t afraid of having the car repossessed and isn’t as
With a lease, the calculations are more what the vehicle is worth today, but how the lease is up, say, two or three years from
vehicle, the lessee has even less motivation to If a car is returned with wear or damage beyond what’s agreed on in the lease, it can
many miles it will be driven and how well it
What if gas prices rise drastically and the These are only some issues to consider identify more by simply reading a motor The differences between selling and leasing
might be two or three years into the lease
Documentation and disclosures:
operations and compliance can be affected by the type of transaction, the vehicle and the state in which you are doing
BY CHIP ZYVOLOSKI
CHIP ZYVOLOSKI IS A SENIOR ATTORNEY FOR INDIRECT LENDING AT WOLTERS KLUWER FINANCIAL SERVICES. FOR MORE INFORMATION, VISIT WWW.WOLTERSKLUWERFS. COM/INDIRECT.
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