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DEALER NEWS GET YOUR DEALER EDUCATION CREDITS FROM THIS MONTHLY MAGAZINE
JUNE 2014
magazine
CRM VS BDC Keeping Your Cart Full of Customers
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• Used Cars Getting Cheaper • Insights into Customer Experience • OIADA Convention
DALLAS, TEXAS Permit No. 2079
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PRSRT Standard U.S. Postage
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INDUSTRY
NEWS
2014 NIADA Used Car Industry Report Get a sneak peak of the upcoming 2014 NIADA Used Car Industry Report at this year’s NIADA Convention & Expo. You’ll be able to pick up an advance copy in the NIADA convention exhibit hall. Simply visit the NIADA Dealer Lounge located in the center of the expo hall. Look for your mailed copy the first week of July. Compare your dealership statistics with those nationwide and get the latest facts and statistics on the used vehicle industry based on proprietary research by some of the best known industry analysts. Get an overview of the independent used car dealer and used vehicle marketplace. Included this year is the entire 2014 NAAA Market Report. ASSOCIATION NEWS
INSIDE
06 Buying a Used Car 08 CRM vs. BDC 10 Used Cars Getting Cheaper 10 Insights into Customer Experience 12 Washington Update 15 OIADA Convention
WHAT’S NEW Tire Safety Week
BE TIRE SMART 4
Mark your calendars for the 2014 National Tire Safety Week June 1-7. The event is sponsored by the Rubber Manufacturers Association to raise consumer awareness about tire safety. Help consumers keep their tires safe and demonstrate your commitment to motorist safety. Sign up for free materials at www.rma.org/tire-safety/tire-safety-week.
ADVERTISERS INDEX Ally......................................................................9
Black Book..........................................................5 Brasher’s Northwest AA....... Inside Back Cover Brasher’s Portland AA.................... Back Cover DAA Northwest / Seattle.......Inside Front Cover Lobel Financial...................................................3 Manheim.com.....................................................7 NextGear Capital..............................................11 United Acceptance...........................................18 VAuto.................................................................13
NIADA HEADQUARTERS
National Independent Automobile Dealers Association www.niada.com • www.niada.tv 2521 Brown Blvd. • Arlington, TX 76006-5203 phone (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. OIADA Dealer News is published 12 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; 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 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of OIADA Insider or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2013 by NIADA Services, Inc. State Magazine MGR./Sales Troy Graff • troy@niada.com Editors Andy Friedlander • andy@niada.com Jacinda Timmerman • jacinda@niada.com Magazine Layout & Graphic Artist Chantae Arrington • chantae@niada.com Art Director Christy Haynes • christy@niada.com Printing Nieman Printing
OIADA DEALER NEWS
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Priorities CHAIRMAN OF THE BOARD LETTER As car dealers, we are constantly balancing our life’s priorities of family and business. Some of us add a volunteer component, which can sometimes tip the delicate balance and cause us to refocus life’s priorities. Recently some of our OIADA executive committee members found themselves faced with a balance decision and stepped down independently to focus on family and business. As OIADA chairman of the board and NIADA vice president for Region 4, I want to thank these board members for their dedication and continued support. Though these board members will be sincerely missed, I assure my fellow dealers and associate members that the Oregon Independent Automobile Dealers Association’s mission and commitment of support to all Oregon dealers has not wavered. An OIADA dealer member recently asked me who OVDA is and whether they are affiliated with OIADA’s membership and continued education classes/reading material. He was confused by different materials being presented and his renewal of membership with OIADA. Sounds confusing right? Well, OIADA sounds like OVDA if you say it fast enough. Given this identity confusion, I think that it’s time for some Q&A regarding OIADA. Question: Who is OVDA and are they associated with OIADA?
Moving Forward
As we move forward in 2014, OIADA has had some growing pains. The structure of our leadership has had a change of face. We remain strong and continue to move forward with the support of NIADA, NIADA’s Region IV and our local leaders. OIADA continues with the same quality of service, programs and attention we provide to the dealers of Oregon. We continue to develop new programs with the Oregon dealer in mind. We at
Answer: NO. OVDA is a for-profit business with membership and a dealer education provider. OIADA, on the other hand, is a nonprofit dealer association providing dealer education as well as representing all Oregon dealers statewide and at the national level since 1948. Question: Is OVDA recognized by the National Independent Automobile Dealers Association? Answer: NO. OIADA is the only Oregon independent dealer association recognized by NIADA as representing all Oregon dealers statewide and nationally. Members of OIADA are automatically members of NIADA, giving its members access to all education, leadership, conventions, benefits and hundreds of products provided by our member associates. Go to NIADA. com to view everything offered and available to our members. Question: Is my OIADA membership tax deductible? Answer: Yes, as a business expense. I hope I have addressed and put to rest any concerns, as well as cleared up some identity questions. GARY SARGENT SARGENT’S MOTORSPORTS OIADA CHAIRMAN OF THE BOARD REGION IV NIADA
OIADA would love to hear from you, what would help advance your dealership and your business. Times are changing and so will OIADA, so that we can be on the forefront of the dealer’s needs. Please watch for updates on education, regional meetings, quality dealer of the year, annual convention and much, much more. If you have any questions, please feel free to call OIADA at 503-362-6839.
OIADA Office
Oregon Independent Auto Dealers Association • 1475 Capitol St. NE • Salem, OR 97301 800-447-0302 JUNE 2014
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ASSOCIATION NEWS
OIADA Forms Store YOU CAN EASILY ATTAIN FORMS NEEDED FOR EVERYDAY BUSINESS Don’t let yourself run out of the forms you need to do business every day. OIADA has four ways for you to get forms: 1. You can order forms any time of the day online at OIADA. com. However, you do need to have a username and password. Call OIADA at 503-362-6839 to get your access to the online store. 2. You can stop by one of three locations within the Oregon auction houses during auction day. 3. You can pick up forms at the OIADA office, located at 1475 Capitol Street NE in Salem. 4. You can call the OIADA Office Monday-Friday. We will ship your order that day. In most cases, it will be delivered to you
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PRODUCTS
overnight by UPS. Don’t be caught without a Secure Odometer Form or Secure Power of Attorney. These forms are DMV forms and each has a registered number assigned to the dealer who purchased them, so don’t lend yours out and do not borrow from your neighboring dealer. When you purchase these forms, it’s a good idea to pull them out of the packet and slip a reminder near the bottom to call OIADA and order more. You can even add the phone number (503362-6839) on the note. Did you know that our members get a discount on most state forms? OIADA members save an average of $100 or more every year.
Our most common ordered forms include: • Secure Odometer Reassignment • Secure Power of Attorney • OADA Purchase Agreements • OADA Retail Installment Contract • F TC Buyers Guide • Dealer Inventory Folder/ Jacket • As Is Disclaimer, State of Oregon • D isclosure Regarding Consignment Sale • Test Drive/Loaner/Rental Agreement • Goodwill Service Form (customer repair)
& SERVICES
Buying a Used Car NEW TECHNOLOGY TO AVOID CARS THAT HAVE BEEN WRECKED Buying a used car is almost always a roll of the dice. People have said, “You are just buying someone else’s problems.” The truth is there are plenty of good used cars out there. Most cars reach the used car market because of expiring leases or simply because owners are getting something newer, but there are exceptions. Some used cars are unloaded by their owners because of a problematic past. When considering a used car, we always recommend getting it inspected by a qualified mechanic and obtaining a vehicle history report from an agency such as Carfax.com or AutoCheck.com. Unreported Damage Even taking these precautions is not guaranteed to uncover a vehicle’s every accident, however. Without taking a car apart, even an accomplished mechanic can miss signs of accident repairs. Moreover, vehicle histories only contain reported accident information. If an owner crashes his car into a OIADA DEALER NEWS
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tree, manages to get his car to a repair facility without alerting law enforcement and doesn’t file an insurance claim to fix the damage, the accident probably won’t show up in a vehicle history report. So, is there a foolproof method for identifying cars that have been in unreported accidents and evaluating the extent of any resulting damage? Yes, and it’s currently being used by accident investigators and law enforcement to aid in reconstructing accidents. Not Exactly a Black Box Since 2010, most new cars are equipped with an event data recorder. Although it has very little in common with the black box we hear so much about after a plane crash, that’s the term most people understand when talking about the EDR. An airplane’s black box continuously records data – often including sound – while the plane is in operation, but the EDR is more of a snapshot of a car’s data from a few seconds before an
BY RUSS HEAPS
accident to a few seconds after. During the course of an accident investigation, investigators use the crash data retrieval tool to download EDR data to determine what the car was doing in the seconds leading up to the crash. Was it speeding, swerving or braking? Was there an airbag deployment? Were the occupants wearing seat belts? CDR is also able to access other components that store data, such as the powertrain module, rollover sensor and airbag control module. The ACM is a virtual storehouse of crash data gathered through crashsensing systems such as seatbelt related sensors and occupant detection systems.
into the vehicle’s universal data port, the user can have a printed report in three or four minutes. This can happen at the dealer’s lot before accepting a used car as a trade-in, or at auctions, where dealers acquire 80 percent of the used cars they sell. Once they’ve won the bid on a vehicle at an auction, dealers have opportunity to inspect it before any money changes hands. If the CDR report uncovers a serious event, the dealer can opt out of the deal. So far, used car dealers haven’t embraced CDR as a sales tool, but the day may come when used car shoppers demand a CDR report just as they do service history records and vehicle history reports.
So, What Does It Mean? How might all of this translate into helping the typical shopper avoid damaged vehicles when buying a used car? When purchasing a used car for resale, the used car dealer can make a CDR report part of the evaluation process. By plugging the CDR tool
RUSS HEAPS BEGAN COVERING THE AUTOMOTIVE INDUSTRY IN 1986. HE HAS SERVED AS MANAGING EDITOR OF AMI AUTO WEEK AND NOPI STREET PERFORMANCE COMPACT MAGAZINES. RUSS CURRENTLY FREELANCES HIS AUTO REVIEWS AND INDUSTRY ANALYSIS TO THE WASHINGTON TIMES, HISPANIC MAGAZINE, JOURNAL-REGISTER NEWSPAPERS, BANKRATE. COM, MYCARDATA.COM, INTEREST.COM, AND OTHERS. HE RESIDES IN GREENVILLE, SC.
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BHPH
PERSPECTIVES
CRM VS BDC EITHER, NEITHER OR BOTH
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Is a CRM right for you? Maybe a BDC is what you need. Whether they realize it or not, every Buy Here-Pay Here dealer has some form of both. Or at least they better if they want to survive. Let’s start by defining each of these to clear things up a little. I wouldn’t want anyone running out and spending money on something they already have and just don’t realize it. CRM, or customer relationship management, by definition is simply a strategy for managing and nurturing a company’s interactions with customers and sales prospects. Technology is usually involved in the form of a software package that helps organize, automate and synchronize sales related activities as well as marketing and customer service activities. A CRM’s goals are to find, attract and win new customers; nurture and retain those you already have; entice former customers to not be former customers and help reduce the cost of marketing and customer service. Sounds a whole lot like a repeat and referral program, doesn’t it? Something every BHPH dealer should already have. Using some sort of a software package to help manage your CRM is a necessity. That doesn’t mean you need to go out and purchase one specifically for a CRM. The software that you currently use for your day to day BHPH operations should be able to produce reports of customers with low balances and customer paid out reports. All you need to do is make sure you have in place a process for working those low balance customers and customers that have recently paid off in addition to the potential customers given as referrals from current customers or other sources. It needs to be
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a simple follow up plan that a manager is responsible for instituting and can be as simple as a call log that the salesperson has to turn in. As your business grows, it may be necessary to seek professional help, so to speak, and invest in a software package that can better manage these tasks. Handwritten logs are fine when you’re talking about 10-20 contacts. When that number gets to 100-200, it’s time to get a little more sophisticated. A truly effective CRM will cover not only sales but a service center as well. Both need new customer development, current customer retention and previous customer renewals. And since they are an integral part of customer service, both can have an effect on collections, both positive and negative. A poorly managed CRM means poor customer service. Poor customer service from the sales or service departments to current customers can make it difficult to collect from them much less resale them. Poor customer service to previous sales or service customers means no return business from them and pretty much ensures no referral business. You know the old adage: “A satisfied customer will tell five people about their experience. A dissatisfied customer will tell 20.” But that’s another article entirely. BDC, or business development center, is exactly what the name implies – a center to develop business. This is usually a department within an organization whose sole purpose is to get prospective customers through your doors. Their goal is to set as many appointments as possible. This is done through calling referrals given by customers and Internet
be truly successful, dealers are going to have to become more efficient at maximizing repeat business and holding on to customers, and turning new leads into sales. OIADA DEALER NEWS
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BY BRENT CARMICHAEL
leads, and handling incoming calls to the dealership. Hopefully a fair amount of those appointments will show. Then it’s up to your sales staff to close the deal. A BDC can be as simple as your current sales staff or as in depth as including business development representatives, team leaders and business development managers. The level of staffing depends on the number of leads you have. As with a CRM, a BDC can be used for both sales and service. It too can have a positive and negative effect on collections for all the same reasons. A specific software package is not a necessity for an effective BDC. A simple process for routing incoming calls and Internet leads to a salesperson, along with a process for when and how to work referrals, is all you really need. As your lead volume grows, so must your ability to effectively manage them. That will be the time to call in the professionals and find good BDC software to help manage all those leads. As with a poorly managed CRM, a poorly managed BDC can not only cost you sales and service business, but can cause collections issues. By definition, every BHPH dealer has, or should have, both of these systems in some form. If they have a process for generating repeat business or have a referral program, they have a CRM. If their salespeople are taking incoming sales calls or working Internet leads, they have BDC. I shudder to think there might be a BHPH dealer out there that doesn’t have both of these. The biggest question is whether they are managing them as such. And by that I mean, do they have a process and procedure in place for these, do they have goals and expectations for each and do they have follow up and accountability in place? The successful dealers, I can assure you, do. To be truly successful, dealers are going to have to become more efficient at maximizing repeat business holding on to customers, and turning new leads into sales. Both of these can only be accomplished through a CRM and BDC in some form. With the current state of the economy, there are more customers in the BHPH arena than ever before. There is also more competition for those customers, so accomplishing the aforementioned has gotten a lot more difficult. To ensure long term survival, dealers have to manage both their CRMs and BDCs. BRENT CARMICHAEL IS ONE OF THE INDUSTRY’S MOST WELL RESPECTED BUY HERE-PAY HERE EXPERTS. HE IS EXECUTIVE CONFERENCE MODERATOR FOR NCM ASSOCIATES, INC. PRIOR TO JOINING NCM, BRENT WORKED 17-PLUS YEARS IN SUB-PRIME FINANCE AND COLLECTIONS.
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MARKET
WATCH
Used Cars Are Going to Keep Getting Cheaper and Cheaper ONE AFTEREFFECT OF THE GREAT RECESSION IS ON DISPLAY NOW AT CAR DEALERSHIPS, WHERE THERE ARE MORE AND MORE USED CARS FOR SALE AT INCREASINGLY LOWER PRICES.
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The used car market has gone a bit haywire over the last half-dozen years. During the height of the Great Recession, new auto sales of all shapes, sizes and variations tanked. As a result of relatively few new cars being purchased, there were fewer used cars on the market during the years that followed – years when the economy was still struggling, when demand for cheap vehicles was understandably high and when used car prices soared because there weren’t enough preowned vehicles for sale to keep up with demand. Signs of a softening in used car prices began appearing around 2012 and now consumers can expect better pricing and a more robust selection of most models. In particular, a trend that’s stretched for several years in SALES
the lease market will soon result in a “used-car flood” at auto dealerships, as Automotive News put it. Leasing, which slumped during the peak recession years, has rebounded considerably lately. In 2009, according to Edmunds. com, consumers scooped up only 1.5 million or so new cars via three-year lease, down from nearly 2 million the year before. Fast-forward three years after that low for leasing, and in 2012 there were only about 1.5 million offlease used cars hitting the market – an exceptionally small number compared to the high of 3.4 million in 2002, per the Manheim Used Car Market report. Because the pace of used-car leases has picked up each year after 2009, so too have the ranks of used cars going up for sale three years later, when the lease terms are
up. This year, roughly 2.1 million off-lease vehicles will be back on the market, up from 1.7 million in 2013. Next year, the number of off-lease used cars for sale should swell to 2.5 million, and in 2016 and for the foreseeable future, Manheim predicts that there will be more than 3 million off-lease vehicles returning to the market annually. Add in the fact that cars have increasingly longer life spans, and we’re seeing an across-the-board rise in supply of used cars – and the increasing supply is projected to translate to lower prices. Earlier this year, Edmunds.com forecast that used-car prices would slide 2 percent in 2014, and perhaps further down the road as a result of leasing trends. “Many car shoppers might not realize how much the new- and
used-car markets feed off each other,” explained Edmunds.com senior consumer advice editor Philip Reed. “The boom in new car leases, for example, is leading to a higher number of lease returns, which adds to the growing inventory of used cars, forcing their prices down.” The news isn’t all good for consumers, however. A decrease in used-car prices also means that drivers will get less for used vehicles they’re trading in or selling. That shiny new car you purchase is likely to lose its value more quickly than it would have in the recent past. Individual car buyers also tend to simultaneously be sellers of their older cars, and from the looks of things, it’ll be a buyer’s market for quite some time. TIME.COM
MATTERS
Insights into Customer Experience IT’S A RELATIONSHIP-DRIVEN BUSINESS We are all consumers. As a consumer, what is it that you truly desire when doing business with a company? Sure, you expect to pay a fair price for whatever product or service you purchase. Moreover, you should perceive value for the money you are spending. Isn’t there a lot to be said about the overall customer experience? Your basic expectation is a successful transaction, but shouldn’t you expect more? If the answer to this question is yes, then you should take into account your overall customer experience with the individuals and companies you do business with. Everyone wants to feel like they matter, and most people seek a certain degree of satisfaction that inspires repeat business. What do you do to create a positive customer experience? Most people like it when someone genuinely cares about their best interests. However, how many people like it when someone tries to sell them something? OIADA DEALER NEWS
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Essentially, people love to buy, but hate to be sold. This holds true for the car buying experience, which is consistently ranked as one of the most stressful purchases someone will make. Customers don’t want to feel like they are being pressured into buying a certain vehicle or add-ons. In general, most of them know what kind of car they want and what they want to pay. If they have contacted you about a car or come to your lot, the hardest part – getting them onto your lot – is done. Now the key is to provide the experience that enables you to close the deal. Two weeks ago, I decided to get a new car. I found the dealership that had the best selection of the car I wanted. I set clear expectations with the salesperson of what they could expect from me. I told them exactly what I wanted from them and I asked if they would like to proceed. I was assured that they would work with me under those terms. While I may be in the industry, on
BY GARRETT JOREWICZ
this day I was a consumer seeking a hassle-free experience at a fair price. In reality, they just wanted to get me in the door, upon which they then proceeded to change their initial agreement. Unable to resolve the issue, I walked out of the dealership. This experience sums up how important a good customer experience is to me as a consumer. Had they upheld their initial agreement, they would have gotten my business. Instead, not only did they lose a sale, but they also lost the potential for a loyal customer. Ultimately, I was able to get the same deal from the dealer down the street I had purchased my last four cars from. In retrospect, I should have gone to them first due to my past positive customer experience with them. There are some very basic principles to enhance the overall customer experience. Following these guidelines will help earn repeat business and referrals!
• Put yourself in the shoes of your customer. • Be empathetic to the process. • Educate your customer and be consultative. • Care. Understand that this is a relationship-driven business and providing a good customer experience can help you stand out from your competition, leading to loyal, repeat customers. GARRETT JOREWICZ IS THE REGIONAL DIRECTOR OF NEXTGEAR CAPITAL, INC. W W W. O I A D A . C O M
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WASHINGTON
UPDATE
NIADA Government Report HERE’S A RUNDOWN OF SOME OF THE LATEST GOVERNMENTAL ISSUES AND ACTIVITY AFFECTING THE USED CAR INDUSTRY FROM NIADA REGULATORY COUNSEL SHAUN PETERSEN AND NIADA LOBBYIST SANTE ESPOSITO. National Independent Automobile Dealers Association
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LEGISLATIVE REPORT H.R. 749, Eliminate Privacy Notice Confusion Act; S. 635, Privacy Notice Modernization Act of 2013 NIADA has been monitoring these bills, which would eliminate a costly and duplicative requirement of the Gramm-Leach-Bliley Act that all financial institutions mail their customers a copy of their privacy notice each year even if there has been no change in the privacy policy. While NIADA supports both bills in concept, our preference is the alreadypassed House bill because of concerns over an addition included in the pending Senate bill. Both would remove the annual privacy notice requirement if an institution has not changed its privacy policies or procedures. The bills do not exempt any institution from an initial privacy notice, nor do they allow a loophole for an institution to avoid issuing an updated notice. The Senate bill adds a qualifying condition for exemption – that customers be provided “access to such most recent disclosure in electronic or other form permitted by regulations prescribed under section 504.” The Senate bill envisions financial institutions posting their privacy policy on their website or transmitting it via email. While that might work for traditional financial institutions, some small dealers do not have websites, and email transmittals can be costly, cumbersome and speculative at best. And email transmittal assumes customers have the capability to receive them, which is not always the case. In addition, the reference to “section 504” creates significant uncertainty – that section, in part, gives the Consumer Financial Protection Bureau and Federal Trade Commission broad authority to issue regulations on an ongoing basis, leaving
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in doubt what “other form permitted by regulations” might take. Because of that, NIADA’s position is that subparagraph (3) not be included in the final version of S. 635. On April 23, we met with staff of the House and Senate Banking Committee to discuss the bills, expressing NIADA’s support and raising questions about the Senate’s “add-on language,” and submitted a formal comment letter. MAP-21 Reauthorization The Moving Ahead for Progress in the 21st Century Act (MAP-21), a transportation bill enacted in 2012, expires Sept. 30. While Congress and the industry realize transportation bills are rarely passed on time and short-term policy extensions are usually required, this time extending the authorizing language will not be enough because the Highway Trust Fund will not have the funds to pay for the extensions. Congress must decide not only what policy provisions to include in the next reauthorization bill, but how to fund it. There is strong support from the industry for a gas tax increase from stakeholders who might be expected to oppose it, such as the American Trucking Associations and the U.S. Chamber of Commerce, but Congress does not appear to have the will to take on such a politically charged issue prior to the November mid-term elections. As a result, Congress will have to pass a short-term funding bill before its August recess. It’s estimated that $10 billion is needed through the end of the year, on top of the $53 billion already transferred from the general fund over the past few years. That’s a problem because the committees charged with drafting MAP21 reauthorization bills and short-term extensions do not have authority to add
There is strong support from the industry for a gas tax increase from stakeholders who might be expected to oppose it, such as the American Trucking Associations and the U.S. Chamber of Commerce, but Congress does not appear to have the will to take on such a politically charged issue prior to the November mid-term elections.
OIADA DEALER NEWS
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revenue to the trust fund. The committees that do have not indicated how or when they will deal with the situation. Meanwhile, Transportation Secretary Anthony Foxx unveiled the President’s longterm transportation bill, the Grow America Act, a four-year surface transportation reauthorization bill that includes more than $300 billion for highway repair and construction, public transportation, railroads and a multi-modal freight program. REGULATORY REPORT Consumer Financial Protection Bureau BMO Harris to pay flat fee: In response to the CFPB’s scrutiny over dealer markup in indirect lending, Chicagobased BMO Harris Bank announced it will pay dealers a flat percentage of the loan as compensation and eliminate dealer markup. CFPB director Richard Cordray applauded the move. Arbitration study: The CFPB is charged with studying the impact of arbitration clauses in consumer financial transactions. The study’s director indicated the bureau is looking at the outcomes of lawsuits involving consumer financial products (including class actions) and arbitrations, the costs and benefits to consumers of class actions, the impact of class actions and arbitrations on prices for goods and services, and the relationship between private and public enforcement of consumer financial services laws. The study is scheduled to be completed by the end of the year. FEDERAL TRADE COMMISSION Review of Fuel Economy Guide: The FTC is seeking comments on potential updates to Environmental Protection Agency fuel economy labeling rules. The FTC is updating the “miles per gallon” rating system and including a measurement for alternative fuel vehicles. The FTC is asking for industry input on useful information that is helpful to consumers and helps marketers avoid unfair and deceptive claims. New FTC commissioner: On April 28, Terrell McSweeny began her term as FTC commissioner, which ends in September. McSweeny previously served as chief counsel for competition policy and intergovernmental relations for the Department of Justice. She has served as a policy advisor to President Obama and Vice President Joe Biden.
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AUCTION
NEWS
DAA Northwest Helps Toyota Raise Funds EFFORTS BENEFIT BOYS & GIRLS CLUBS
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DAA Northwest recently teamed up with fellow independent Norwalk Auto Auction, ADESA and Manheim auctions in support of Toyota Financial Services’ Boys & Girls Clubs fundraising drive. With an emphasis on reducing the national high school dropout rate, Boys & Girls Clubs provide youth with the academic, behavioral and social skills needed to graduate. In a recent survey conducted at local clubs, 28 percent of club alumni said they would have dropped out without the club’s influence. With DAA Northwest and additional auction contributors, TFS presented a check for $500,000 to 35 Boys & Girls Clubs during the March 17 “diplomas 2 Degrees” event. “We’re honored to support TFS in this effort,” said DAA president Bob McConkey. “These funds will have a direct, positive impact on young people who might otherwise lose hope and drop out of school.” Toyota’s recent contribution surpasses last year’s and provides funding for 19 additional new clubs. Toyota Financial Services collaborates with The Darden Restaurants, Inc. Foundation to support d2D, a college-readiness program. The $500,000 raised will help fund d2D as it offers support for club operations and increases each club’s ability to serve more youth. DAA Northwest offers TFS consignment in the lanes and online via EDGE Simulcast and Toyota Financial Services’ Weekend Events. Together with KCI Kansas City, EPI El Paso and DAA Seattle, it is a member of the McConkey Auction Group and ServNet, North America’s premier independent auto auction association. The McConkey Auction Group is powered by Auction Edge. OIADA DEALER NEWS
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OIADA DEALER NEWS
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PRODUCTS
Oregon Independent OIADA ~ Oregon Independent Auto Dealers Association Auto Dealers Association Your only nationally recognized association since 1948. OIADA, here to help, support, educate and promote quality dealers in Oregon.
Here are the great benefits of OIADA membership: • Oregon Dealer News is delivered to our dealers monthly, filled with quality up to date business articles. • Included in each Dealer News Magazine is 30 minutes towards continued education, free to OIADA members, which now means returning eight answer sheets a year. This is a savings of $75 annually. • OIADA Auction Punch Card: Our valued auction houses in Oregon, Washington and California are offering $50 savings on your buy and sell fees, a value of $1,100. • OIADA offers members discounts on all meetings, educational programs and conventions, with an annual savings of over $200. • OIADA members receive a discount on most forms, a savings of up to $100 or more annually. • Quarterly regional dinner meetings, an outreach to bring programs, education and conversation to all areas within Oregon. • Annual convention will host a variety of programs including eight or more hours of continued education. Quality Dealer of the Year Awards and Banquet. At a savings of $100 for OIADA members. • Opportunities for OIADA members to be awarded Oregon’s Quality Dealer of the Year and to compete for the National Quality Dealer of the Year at our national convention. • National education opportunities, becoming a Certified Master Dealer and more. • National access to Dealers 20 Groups . • OIADA has on contract a lobbyist to bring forth interests and to protect our dealers at the state level. • OIADA hosts a required certified 8-hour Pre-License Class. Upon completion dealers will receive the DMV required 8-hour certificate. • Title and registration classes, savings of $35 for OIADA members. • Help and support with your issues is just a phone call away. • Automatic membership with NIADA and the NIADA Used Car Dealer Magazine. • Access to NIADA’s annual convention. • Opportunities for scholarships, both state and national. • NIADA offers OIADA members a wide variety of discounts to members, from education to everyday business expenses.
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Contact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a member of OIADA. Annual Savings $1100 Auction Punch Card $ 100 Forms $ 75 Education $ 100 OIADA Convention $ 50 Driven to Learn & Regional Meetings $ 1425 Bottom Line Savings $325 Cost of Membership ~ OIADA helping you succeed.
OIADA DEALER NEWS
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& SERVICES
Carfax Adds Vehicle History Search UNIQUE VEHICLE LISTINGS SITE HELPS CONSUMERS FIND THE RIGHT CAR WITH THE RIGHT HISTORY FROM DEALERS Carfax has unveiled a new online car shopping tool that helps consumers find the right car with the right history. At carfax.com, online shoppers now can search for used cars with specific vehicle history details – such as no accidents reported to Carfax, service records and Carfax 1-Owner. Used cars for sale from thousands of dealers on the new listings site all come with free Carfax vehicle history reports. Plus, vehicles are shown based on the history attributes shoppers want, making the shopping process for carfax. com visitors easier and faster.
“I found a great car on Carfax,” said used car shopper Nathan Walker from Washington. “I called the dealer immediately and he said the car was not listed in their inventory yet because it was still in detail and undergoing inspection. I already knew from the information in the Carfax listing that I wanted to see it. I drove forty miles to the dealership and bought the car.” Key vehicle history details seen in every vehicle listing help save time while sifting through search results. At carfax.com, visitors begin their search of more than one million used cars by selecting the vehicle history attributes they want. Listings from Carfax Advantage Dealers also include price, photos and a detailed description of the vehicle. Once potential buyers find the car they want, they easily connect with the dealer directly from the vehicle listing. “We’ve made sure our inventory is included on carfax.com for years,” said Jeff Best, vice president of used cars for Brown’s Car Stores. “It’s an easy way for us to get in front of readyto-buy shoppers. Consumers trust Carfax, which helps build their trust in the cars we list on Carfax.”
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ASSOCIATE MEMBERS ACCOUNTING SERVICES Delap, CPA Adam Puckett Lake Oswego, OR 97035 503-697-4118 ADVERTISING Affiliated Media LLC Aaron Jarvis 503-683-2574 Carsforsale.com Aaron Oestretch 605-306-3302 AutoTrader.com Ed Merrick 503-747-9162 Carjohnny.com Thomas Garza 888-435-3000 Cars.com James Lynch 312-601-5052 The Oregonian Rich Fryback 503-221-8486 UsedCars.com by Dealix Tamara Garris 847-397-1700 AUTO SERVICES & ACCESSORIES Auto Marketing Specialist Gary Palaniuk 503-519-7725 AUTO DETAILER Show Room New Mike Barthe P O Box 822073 Vancouver, WA 98682 360-882-8162
Northwest Auto Accessories Craig Lessard 503-288-5700
DAA Northwest Mitzi Vanvoorhis 509-244-4500
Credit Concepts Jason Moon 541-342-8545
NextGear Robert Torbet 503-358-3911
SHOWROOM/BUSINESS JANITORIAL JaniKing Morgan Thomas 1500 Valley River Dr., STE # 205 Eugene, OR 97401 503-535-9758
DAA Seattle Dave Blake Auburn, WA 98002 253-737-2200
JP Morgan Chase Auto Finance Jeff DeGarmo 503-201-4370
Manheim Seattle Auto Auction Ray Priest 206-762-1600
Lobel Financial Tom McConkey 503-653-8000
INSURANCE & BONDING Hecht & Hecht Insurance Agency Evelyn Hecht 503-542-1131
Show Room New Mike Barthe 360-882-8162 COMMERCIAL CLEANING JaniKing Morgan Thomas 541-868-8080 PRIVATE AUCTIONS Brasher’s Northwest Auto Auction Mark Melton 541-689-3901 Brasher’s Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 Manheim Portland Auto Auction Ray Priest 503-286-3000 OUT-OF-STATE AUCTIONS ADESA Seattle Auto Auction Jason Arcaro 253-735-1600 x 213
PUBLIC AUCTIONS & AUCTIONEERS Commercial Industrial Auctioneers Ray Beal 503-760-0499 Insurance Auto Auctions, Inc. Ryan Hall 503-253-1500 Petersen Auction Group of Oregon Curt Davis 541-689-6824
Shepard & Shepard Business Solutions Todd Shepard 509-396-0488
Nationwide Insurance Mark Tischer 503-339-4165
The Summit Group of Oregon John Petrie 503-581-2825
Oregon Auto Finance Gary Veum 541-868-0472
LEASING Oregon Roads, Inc. Joseph McKinney 541-683-2277
Oregon Community Credit Union Rich Black 541-681-6311
SERVICE CONTRACTS A.U.L./D.P.C. Jim Bangert 360-834-3333
Reliable Credit Association David Marx 503-462-3022
Rick Leathers Auctioneers Rick Leathers 503-668-5326
Smartway Auto Advisors Sheldon Harris 503-795-7700
Automotive Business Developers Shannon Meany 541-944-9186
Woodburn Auto Auction Steve Morin 503-981-8185
The Equitable Finance Co. Brandon Fox 503-808-7939
Auto Services Company Susan Williams 800-442-7116
DEALER SOFTWARE Frazer Computing Michael Frazer 888-963-5369
United Finance Todd May 503-238-6488
Protective Life Insurance Dylan Doran 818-836-1455
FLOORPLAN FINANCING Floorplan Xpress Josh Chandler 503-621-9260
TRAINING OIADA/NIADA Certified Pauline Sill 503-362-6839
FINANCING Credit Acceptance John Bragg 360-980-2214
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MEMBER BENEFITS There is not another association that works harder than we do to provide its vendors with exposure, leads and other lucrative opportunities. Please review some of the following programs and areas that we help promote those businesses that support OIADA. Marketing: Opportunity to give coupons to dealer members, included in all dealer packets. Ad space on inside pages all presentation folders sent throughout the year. Meal sponsorships available for Pre-License classes, Title & Registration classes. Databases: Access to all OIADA membership databases for mailings. We require a review of the info that you will be sending to our members. Associates may have a list quarterly or 4 times a year. Each time you get a list you may use it only once for a mailing. Just send us an e-mail request for current database and we’ll be glad to send to you once we review your marketing page.
OIADA Magazine & Service Provider Listing: Your company and contact information will be listed in OIADA’s Dealer Service Provider Directory in our magazine that is distributed to around 2000 dealers every month of the year. We also have great rates for those companies interested in additional exposure in OIADA’s popular and well read “Oregon Dealer News” Website Listing and Link: If your company has a website, we will add your company link to our company website as well as listed in Oregon Dealer News. Regional Meetings (7) and Membership Drives: Many of OIADA’s Associate Members like to get involved in helping with OIADA’s regional meetings. Also our auction hosted membership drives. Those vendors who agree to participate get the benefit of meeting larger groups of dealers in one location while being able to establish a relaxed relationship with future potential prospects.
Special Speaking and Sponsorship Opportunities: OIADA is always having events going on where the environment is ideal for sponsors to participate. Some examples of this are regional meetings, golf tournaments, auction membership drives and of course our annual convention and trade show. Developing Strategic Relationships: Network with other companies who associate themselves with our association. Either during our regional meetings, membership drives or board meetings. Annual Convention and Trade Show: Participate in our once a year convention and trade show for maximum exposure and opportunities. Call for information on Reception, Tradeshow, Meal and Golf Tournament sponsor levels.
OIADA EDUCATION SCHEDULE June The CERTIFIED MASTER DEALER® program was developed in 2001, in collaboration with Northwood University, to help dealers manage and grow their businesses. Since then, it has grown into one of the industry’s most respected training programs. Dealers who attend this training are committed to the industry, support ethical business standards and practices, and are leaders in their communities. They bring a wide range of experience to each class, and leave with new strategies for analyzing their business practices and increasing their bottom line. Instruction is provided by Joe Lescota, NIADA Director of Dealer Development and former retail automotive executive with more than 25 years of frontline dealership, selling management and training experience. For more information, please contact Georgia Brown at (800) 472-8101.
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2 Pre-Licensing Class, Salem 20 Title and Registration, Manheim Portland
25 Pre-Licensing Class, Salem
JUNE 2014
OIADA DEALER NEWS
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P R O G R A M E D U C A T I O N C O N T I N U I N G
Complete this test and certify below that you have read the articles for JUNE 2014
“Buying a Used Car”
True/False: A vehicle history report is guaranteed to uncover a vehicle’s every accident. What kind of report can give you additional insight into a vehicle’s history? a) Credit report. b) CDR report. c) Damage report.
“CRM vs. BDC”
For what does CRM stand? a) Customer Relationship Management. b) Credit Report Management. c) Car Repossession Management. True/False: A CRM’s goals are to find, attract and win new customers; nurture and retain those you already have; entice former customers to not be former customers and help reduce the cost of marketing and customer service. What is the goal of a BDC? a) To monitor compliance/regulatory matters. b) To help you manage the dealership. c) To set as many appointments as possible.
OIADA DEALER NEWS
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“Insights into Customer Experience” True/False: A car is consistently ranked as one of the most stressful purchases someone will make. What should you do to enhance customer experience? a) Put yourself in the shoes of your customer. b) Be empathetic to the process. c) Educate your customer and be consultative. d) Care. e) All of the above.
I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for JUNE 2014. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.
My Name _______________________________________________ Dealership Name _________________________________________ Dealership # _____________________________________________ Dealer License Expiration Date: (Month)__________________________ (Year)__________________
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Read & Respond and Certify Below
Signed: ___________________Date___________________________
FAX TO: 503-364-7331 or mail to OIADA, 1475 Capitol St NE, Salem, Oregon 97301
JUNE 2014
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