Bulletin | August 2023

BULLETIN CO LO R ADO AU TO M O B I L E D EAL ER S ASSOC IATIO N

I N T HIS ISSU E BEHIND THE DONATIONS: THE REAL ROI OF THE CLEAR THE AIR FOUNDATION VOICES OF IMPACT EMPOWERING COLORADO’S DRIVE TOWARD CLEAN MOBILITY

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AUG U ST 2023 | VO L UM E 2 4 | I S SU E 7

CONTACT US Colorado Automobile Dealers Association 290 East Speer Blvd., Denver, CO 80203 303.831.1722 info@colorado.auto www.colorado.auto

OUR STAFF Matthew Groves CEO matthew.groves@colorado.auto | 303.282.1449 Beth Weir Controller beth.weir@colorado.auto | 303.457.5120 Mark Zeigler Clear the Air Foundation Director mark.zeigler@colorado.auto | 303.457.5105 Khorrie Luther Associate Vice President of Operations khorrie.luther@colorado.auto | 303.457.5122 Dan Allison Member Services Coordinator dan.allison@colorado.auto | 303.831.1722

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BULLETIN | AUGUST 2023

About Our Association Representing the franchised new car dealers of Colorado The Colorado Automobile Dealers Association (CADA) is the voice of the automotive retail industry throughout the state. As the automobile dealer trade association, CADA advocates issues of importance to the auto industry, Colorado auto dealers and Colorado’s driving public.

The Denver Automobile Dealers Association started in 1914 to operate the annual Denver Auto Show which dates to back 1902. Colorado Automobile Dealers Association soon followed and both associations operated together with shared staff and a headquarters building. In 2010, after almost eight decades together, the two associations became one. The history now dates over 108 years of high level automotive and mobility impact.

Today, our dealers range from small family-owned dealerships, to nationally operated, multiple franchise corporations. CADA represents a united front for over 300 new car, truck, motorcycle and RV dealers. From local, state and federal policymakers, to the public and the media, CADA is the voice for Colorado’s auto industry.

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Matthew Groves CEO

Behind the Donations: The Real ROI of the Clear the Air Foundation Over the past decade, you have heard our elevator pitch on the Clear the Air Foundation. Too many times. It’s our subsidiary non-profit committed to removing old, highemitting vehicles from the road and turning the residual money into scholarships for auto tech students. We say it in every meeting, in every publication, and preach it in every legislative hearing. But, since its 2011 inception, the Foundation has provided us with significantly more than the sum of its donations. This issue of the Bulletin will examine “the next ten words” that tell you how we’ve used this accomplishment to establish CADA as a pillar in the community and how that work benefits our standing with the Polis Administration.

The hard metrics are undeniable: 12 years, 6,637 vehicles recycled, and $442,552 in scholarships awarded. Through the remarkable number of vehicles recycled (at an average age of 19.3 years), the Foundation has prevented the release of over 130 million tons of CO2 equivalent from polluting Colorado’s atmosphere. And unlike proposed air quality regulations, that is not a 10-year projection.

It’s done. Today. And the accomplishment belongs to the donating dealers.

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BULLETIN | AUGUST 2023

The financial support and tool-based scholarships that the Clear the Air provides make it one of the largest financial supporters of automotive-based technological education. The Foundation has changed the life of over 127 students with tuition assistance and the provision of starter tool sets with 100 of those working as fulltime auto technicians in franchised dealerships. This is a testament to the Foundation’s comprehensive selection process.

However, a more permanent externality of scholarships is the enduring partnership that Clear the Air has developed with our technical colleges. Executive Director, Mark Zeigler, has been named the Denver Field Manager to the National Institute for Automotive Service Excellence (ASE) Education Foundation. In this capacity, he joined the 2023 Annual Teacher Conference – the principal vehicle for continuing education credits – in Charlotte, North Carolina. At a local level, he has been appointed to the advisory committees for Arapahoe Community College, Aims Community College, Front Range Community College, Emily Griffith Technical College, and the Division 11 School District in Colorado Springs.

Mark also volunteered to serve as Vice President for the Rocky Mountain Automotive Teacher Society (RMATS) and began discussions with the state on how to best amend the curriculum in technical colleges to account for the electrification of transportation.

In contrast to groups who employ fatalist rhetoric and pay-for-play research to support programs that inevitably fall short of their promises, Clear the Air’s decade of accomplishment has opened the door for collaboration with the state. On August 31, 2023, the Colorado Energy Office released the heavily publicized Vehicle Exchange Program (VXC) to provide a tax rebate for those trading in older or higher-emitting vehicles in exchange for a battery electric vehicle. Clear the Air is the program partner that will recycle those traded vehicles and will use the additional revenue to further their scholarship commitments. Additionally, the Energy Office has invited CADA’s participation and partnership in the adoption of the Clean Cars II regulation and invited us into a smaller stakeholder group on the future of greenhouse gas regulation.

It goes without saying that these doors were not opened to us over the previous four years. Our partnership with the state is a welcomed evolution and provides us a substantial opportunity to place our mitigating thumbprints on the future of environmental policy.

We will take full advantage of this opportunity and are communicating this blueprint to our neighboring states, who trail Colorado by two to three years in the policymaking process.

Ultimately, everyone at CADA knows that dealers are making a sacrifice when they donate old vehicles.

You can get more money at auction. Cars that did not have value in 2018, have value in 2023. The best we can offer is a $500 tax deduction, and that comes with an asterisk of your qualification. Still, we remain hopeful that dealers can see the long game and find value in all of the intangible benefits that each donation creates for the industry. We know dealers who have set up recurring donations as a part of their charitable giving plans see it. Consider this Bulletin our first overture in attempting to better articulate the return to the entire dealer body.

Collectively, we are the most effective air quality program that the state of Colorado has.

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Voices of Impact:Testimonials from Clear the Air Foundation Beneficiaries About four years ago I was graduating from Pickens Technical College with an automotive degree. I was told about a scholarship from the Clear the Air Foundation that was given to students. I contacted Mark Zeigler, the Director of the company, and was informed how they take in used, unwanted cars and recycle them. Being part of this was staggering as it would be a great help in my upcoming career as well as being able to join a company that takes care of the environment by helping with pollution reduction. I applied and Mr. Zeigler quickly replied and eventually after some questions and paperwork with school, I fortunately received the scholarship. With it, I was able to purchase nearly $4,000 worth of Snap-On tools to get me started. I have been working for Subaru for the past four years and can say I thank this foundation daily as it gave me a great boost to get me started. I am thankful that I can use that help daily when I use my tools to get my job done. This foundation does great things for starting technicians in their path as well as for the environment.

- Carlos Martinez, AutoNation Subaru and Pickens Tech grad As a recipient of the tool award, I was able to get a head start on having many of the basic tools needed to repair vehicles. Since I was moving into an apprentice position, the master tech I was working under was happy I had everything I needed from the get-go. Because of this scholarship, I could focus more on learning in class and at work, as well as worry less about a huge tool bill every week. Thanks to this opportunity I got a big jump start and can happily say I’m a successful Mercedes-Benz Sprinter technician. Thank you to the Clear the Air Foundation for this opportunity and jump start when starting my career!

- Adrian Lenhart, Mercedes Benz of Westminster

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BULLETIN | AUGUST 2023

Hello, my name is Ling Maung. My family is originally from Burma, and we immigrated to the United States in 2012.

I am beginning my second year at ACC in Automotive Technology. Firstly, I would like to thank Mr. Mark Zeigler for making the Clear the Air Foundation scholarships.

Being the recipient of the scholarship was huge for me.

Receiving the scholarship meant taking loads off of my parents’ shoulders. Being in school Monday through Friday, working is not easy. My parents on the other hand both work full-time jobs and support two other kids. With the help [of the] Clear the Air Foundation scholarship, I was able to pay off my tuition and focus on my schooling. I hope to become a master technician someday; this dream is possible because of the Clear the Air Foundation.

- Ling Maung, Stevinson Toyota East Clear the Air Foundation awarded me with a Snap-On Tool Scholarship while attending community college for Automotive Technology. The tools I chose helped me in both my schooling and my career. Because of the Clear the Air Foundation scholarship, I was able to provide my own tools rather than borrow them which improved my repair time for the jobs I was completing. This scholarship showed me the value of owning quality tools and the responsibility of being prepared as an automotive technician.

- Heather Kilby, Winslow BMW, Pueblo Community College Clear the Air Foundation has positively impacted me by giving me resources to comfortably afford my schooling finances and the materials needed to be successful. It also has given me the ability to acquire the tools and equipment needed to be successful in the automotive field. Clear the Air Foundation is a great scholarship to receive and I am proud to be a recipient.

- Justin Bauer, Dave Solon Nissan, Pueblo Community College

At Arapahoe Community College, we aim to train the best Automotive Service students in the country.

We know to produce the most well-trained students possible, we need them to be able to focus on their future. Of the many worries a student faces that can distract or absolutely ruin their educational journey, money is at the very top of that list. Because our program is focused completely on the automotive trade, we know student scholarship opportunities are somewhat limited. When scholarships are available, they usually are tied to several limiting factors, which make access to those scholarship dollars tricky.

Additionally, unlike most professions, automotive students must invest thousands of dollars in their personal tools before they can even begin plying their trade.

Over more than a decade, the Clear the Air Foundation has assisted our students and automotive students all over Colorado in fulfilling their dream of being manufacturer service technicians. Many of them would simply not have been able to continue their educational journey without Clear the Air Foundation’s generous outside intervention. That I am aware of, no other nonprofit in the state has provided so much direct support to the student than Mark Zeigler and the Clear the Air Foundation. Whenever we have had a specific need for special cases, this organization has always found a way to meet that need.

I couldn’t possibly speak about the more “welladvertised” auto donation programs in the country, because we never see a single dime from them! I can, however, attest that year over year the funds from the Clear the Air Foundation provide several scholarship and automotive competition opportunities by placing those funds directly in the hands of the people who need them the most!

A prime example: This year one of our students qualified to compete in the national automotive championships presented by SkillsUSA. As an institution, we simply didn’t have the money to send our students to the competition. Because of the Clear the Air Foundation’s generous donation, we were able to travel and challenge the country’s best. We achieved a 4th place finish against the 50 best young technicians in the United States. None of that would have happened without the Clear the Air Foundation.

-J acob Tipsword, Professor of Automotive Service Technology, Arapahoe Community College

Having the opportunity to work with and receive a tool award from the Clear the Air Foundation and to work with the Director, Mark has been an honor. The Clear the Air Foundation is taking the initiative of removing unusable vehicles from harming the environment by recycling vehicle components and properly disposing of them and turning the funds over to students like myself, to benefit from tools for automotive work or tuition, so that we may thrive in our careers and reach higher goals. In my experience, with a goal of achieving a Master Diagnostic Technician role in my automotive field, I will be able to use the tools from the award to improve my efficiency and have the ability to properly secure the “verified repair” on work orders. I don’t have to rely on borrowing as many tools from my co-workers and I’ve saved a lot of my income as well as saved the wait for the income to gather more tools, which before the award, had been very stressful and daunting. This was most certainly the most impactful leap forth for me in my early career, as I can now rely on the quality tools that had been awarded to me, to get me closer to achieving my goals. The Clear the Air Foundation and its mission have my utmost sincere gratitude.

- Liam Keller, AutoNation Toyota Arapahoe, Arapahoe Community College Clear the Air Foundation has been a great ongoing opportunity to help the students to achieve their goals in this industry. Without Clear the Air Foundation, a lot of our students here in Colorado at Emily Griffith Technical College would not have made it in this industry. Mark is a great asset for all the young students going into this difficult yet challenging field. Over the past 5 years, I’ve had the privilege to see this foundation really care for our students and go as far as to help us get donated cars. They’ve helped many of our students with scholarships and helped place our students with opportunities to obtain jobs in this industry. I am very grateful to Mark Zeigler and the Foundation for the continued hard work they keep providing for us across the great state of Colorado, he has put smiles and paychecks in many of our students’ lives.

- Steven Garcia, Automotive Services Instructor at the Emily Griffith Technical College

* Some responses have been edited for clarity.

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Building Customer Loyalty with Leasing Leasing provides an attractive alternative for customers who desire a new car without the high price tag. The average American new car buyer paid $48,528 in May 2023, leading many to consider a new car unaffordable. Leasing typically offers lower monthly payments and the flexibility to upgrade more frequently, making it appealing to cost-conscious drivers. Additionally, leasing benefits dealerships by shortening the trade cycle, helping to foster loyalty and customer satisfaction.

Leasing aligns well with the growing adoption of electric vehicles, catering to customers who want to keep up with the latest technology. By leasing, customers know they can upgrade to a newer model at lease end.

To ensure successful leasing, dealerships should train their staff on leasing options and how to present them to customers. Integrating leasing into the sales process by quoting lease options to every eligible customer is crucial. Many customers start their car search online, so keeping the dealership’s website updated with accurate information about inventory and lease options, and offering digital tools like payment calculators, helps customers evaluate leasing easily.

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BULLETIN | AUGUST 2023

Follow-up is essential for leasing success. Dealerships should maintain regular contact with customers in their lease portfolio, connecting with them six to nine months before the lease expiration. Early inspections and discussions about options for their next vehicle can also contribute to customer satisfaction. Treating customers as individuals and tailoring lease terms and mileage to their specific needs further enhances the leasing experience. To satisfy a range of situations, Ally provides flexible options with Ally SmartLease ranging from ultralow mileage leases on select makes/models to high mileage leases with 12-month to 60 month terms.

By offering leasing, dealerships can drive customer satisfaction, loyalty and repeat business. Leasing provides a win-win solution for customers and dealerships alike, offering affordability and flexibility while creating future revenue opportunities.

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Registration & Title Solutions

Technology solutions for all your dealership needs Simplify the complicated

The promise of dealership technology is to make car buying easier and smoother, leaving employees happier and customers satisfied. However, that promise depends on systems working together and strong provider support.

At Dealertrack, we keep that promise every day. Our integrated technology software simplifies the complicated and is backed by unmatched support. From your DMS to F&I through Registration and Titling, here are the ways that Dealertrack solutions deliver a better overall customer and employee experience: Flexible & supported business operations The DMS is a critical part of your business and touches every aspect of your operations. A system that can’t adapt to fit your workflows, is difficult to use, or is not highly supported, will negatively affect employee morale, your profit potential and the customer experience.

A flexible system like the Dealertrack DMS that comes already equipped with dedicated support allows you to run your business how you want with personalized assistance every step of the way. When your dealership runs like a well-oiled machine, employee turnover goes down, customer satisfaction goes up, and you reap the financial rewards.

“ I get a comfort level using the compliance product from Dealertrack… I know I’m being protected.”

Lou Bregou Director of Operations, Driver’s Village Quick & compliant deal workflow Today’s customers demand a quick and accurate deal process from start to finish. However, no dealership can afford to prioritize speed over compliance. A digital workflow with compliance built into every step gives customers a faster process while protecting your customers, your dealership, and your bottom-line.

Dealertrack offers a complete and compliant workflow from pulling credit through contracting and signing, and beyond. With the largest and fastest growing lender network in North America, more than 190 aftermarket provider partners, and complete DMS and CRM integrations, your dealership can handle each step of the deal efficiently, seamlessly, and in record time.

Fast & fluid deal completion A slow or inaccurate manual registration and title process can sour a previously great customer experience, negatively affecting CSI and your dealership reputation.

Dealertrack’s suite of electronic reg and title solutions speed transactions and reduce costs from trade-ins to vehicles sold.

With 20 state association endorsements across the U.S., only Dealertrack solutions allow you to submit in-state transactions in under 4 minutes1, release liens and titles up to 70 percent2 faster to accelerate trade-in turn and simplify cross-border deals with a seamless connection to every DMV across the country. DMS integrations also facilitate direct data import to reduce the need for data re-entry and mitigate inaccurate or incomplete documents.

The Dealertrack difference Backed by the power of Cox Automotive, Dealertrack’s easy-to-use digital solutions integrate seamlessly across departments to speed transactions, reduce costs, and deliver compliance confidence. We are a true partner in your success. From proactive system support to knowing the retail automotive industry and its challenges inside and out, we simplify the complicated so you can focus on what matters most: your customers.

Simplify the complicated today. Schedule a no-obligation call with Brian Ekstrand, regional sales manager for Colorado, to discuss how Dealertrack can meet all your technology needs.

1 Dealertrack User Timing Report through Google Analytics 1/1/21 to 12/31/21.

2 Based on average industry timeframe for vehicle title release and vehicle payoff process of 18+ days, as determined by 2022 Dealertrack data

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Mark Ziegler

Director, Clear the Air Foundation

Empowering Colorado’s Drive Toward Clean Mobility: Introducing the Vehicle Exchange Colorado (VXC) Program Transportation is the largest single source of greenhouse gas pollution in Colorado. It is also a major contributing source of other forms of pollution, including ozone precursors, hazardous air pollutants, nitrogen oxides, and particulate pollution.

An important strategy in reducing transportation emissions is the adoption of low-emitting mobility options, such as electric vehicles (EVs), including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

It is in the interest of the State of Colorado to increase the number of EVs used for transportation in addition to improving the accessibility of EVs for individuals in income-qualified households in Colorado. It is also in the interest of the State of Colorado to remove and dismantle old and/or highemitting vehicles and to replace those vehicles with low-emitting mobility options. To help achieve this goal, the State of Colorado has created the Vehicle Exchange Colorado (VXC) program. VXC is a partnership between the Colorado Energy Office and the Community Access Enterprise.

VXC, which launched on August 31st, is a statewide point-of-sale rebate program for income qualified Coloradans. Qualified participants will receive a rebate to purchase or lease a new or used BEV or PHEV that is $50,000 or less (see website for additional details). The rebate will be valued at $4,000 for used and $6,000 for new electric vehicles. Participants will be required to surrender a qualifying old or high-emitting vehicle to qualify, and all those vehicles will be recycled through the Clear the Air Foundation.

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BULLETIN | AUGUST 2023

At least 35% of all proceeds will go towards auto tech scholarships, which will be an increase over the current budget.

Currently over 100 new and used car dealerships have applied to participate in the VXC program. If you would like to participate in this program, please begin the registration process here.

Secure Your Spot for the 2023 Clear the Air Foundation Annual Golf Tournament - Act Now! Only 50 spots left up for grabs!

Slots are quickly filling up for the annual Clear the Air Foundation golf tournament, held on October 9th at Blackstone Country Club in Aurora. Once registration fills up, we’ll start a waiting list. Don’t miss the boat!

Register up to three golfers here. We’re also looking for a few more sponsors to support this tournament. If you have a vendor who would be interested in getting in front of 100 dealers, please let me know and I will reach out to them. We’re also looking for items we can auction. If you have something you would like to donate I would be happy to come pick it up.

October 9, 2023 | 9:00 am Shotgun Start Blackstone Country Club in Aurora

Clear the Air Foundation 2023 Year-To-Date Vehicle Donations 12 M ike Maroone Chevrolet South

2 Ferrari of Denver

1

10 The Faricy Boys

2 Fort Collins Chrysler Dodge Jeep Ram

Phil Long Glenwood Springs Subaru

1

Phil Long Hyundai of Chapel Hills

9

Dellenbach Motors

8

Alpine Buick GMC South

2 Groove Ford

1

Phil Long Valucar

8

A utoNation Chrysler Jeep Broadway

2 Groove Mazda

1

Stevinson Toyota West

2 Hellman Motor Company

1

Turner Automotive

8

Schomp Ford

2 O’Meara Volkswagen

7

Markley Motors

2 Phil Long Ford of Motor City

7

Mountain States Toyota

2 Schomp Hyundai

7

O’Meara Buick GMC

2 Schomp Mazda

7

Pueblo Dodge Chrysler Jeep Ram

2 Sill-Terhar Motors

6

Schomp Subaru

2 Subaru of Loveland

6

Summit Ford

2 Subaru of Pueblo

5

Groove Toyota

1

Audi Denver

5

Spradley Chevrolet

1

5

Stevinson Toyota East

AutoNation Chrysler Jeep Arapahoe

4

Johnson Auto Plaza

1

Castle Rock Ford

4

O’Meara Ford

1

Dave Solon Nissan

4

Phil Long Ford of Chapel Hill

1

Durango Motor Company

4

Pueblo Toyota

1

Emich Chevrolet

4

Schomp Honda

1

Emich Volkswagen

4

Schomp Nissan

1

Emich Volkswagen of Boulder

4

Steamboat Motors

1

4

The Faricy Boys Ford

Grand Junction Chrysler Dodge Jeep Ram

3

Berthod Motors

1

Groove Subaru

3

Mike Maroone Buick GMC

1

Honda of Greeley

3

Perkins Motors

1

Jaguar Land Rover Flatirons

3

Phil Long Ford of Denver

1

John Elway Chevrolet

3

Phil Long Ford of Raton

1

Mike Shaw Subaru

3

P hil Long Honda of Glenwood Springs

1

Morehart Murphy RAC

1

Peak Kia North

Other Donations 38 Fort Carson 12 Private Donation 4 Pikes Peak State College 2 School of Mines 1

Warren Tech

Dealer Total = 205 Other Total = 57 2023 YTD Donations Total = 262

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1st Annual Presidio Auto Technology Summit Wednesday, November 15, 2023 10:30 AM - 5:30 PM The Denver Art Museum: South Sturm Pavilion Denver, CO Join The Presidio Group, JM Family Enterprises, Holman Growth Ventures at an innovative, one-day event as we connect trailblazers and rainmakers in the auto tech world.

Audience: Technology companies, venture capital, private equity, early-to-late stage innovators Format: Fireside chats, keynotes, Ted talks, panels • Learn from entrepreneurs and strategic investors as they tackle critical issues and opportunities in automotive retail: artificial intelligence, consumer data, vehicle transportation and logistics, and more

• Bill Cariss, President and CEO, Holman Growth Ventures • Ernie Garcia, President and CEO, Carvana • Jameel Ghata, Chief Strategy Officer, PAVE • Mark Queen, Founder, SKAI Automotive Solutions • Rich Sands, CEO, Stella Automotive AI • Rick Ford, Executive Vice President Operations, Sonic Automotive • Atul Patel, Co-Founder and CEO, Orbee • Matt Van Dyke, President, Shift Digital

• Discover the companies that are putting a stamp on auto retail, mobility and the automotive customer journey

• Scot Wingo, Founder and CEO, Spiffy

• Leverage focused networking and connection opportunities in a quick-paced environment, including a unique “Match Game” format with innovators and investors

• Tony Rimas, Venture Partner, Autotech Ventures

• Engage with powerhouse hosts Presidio and Holman Growth Ventures as well as co-lead sponsor JM Family Enterprises • Meet tech visionaries, venture capitalists and private equity leaders 12

Confirmed Speakers:

BULLETIN | AUGUST 2023

• John Trieu, Managing Director, Holman Growth Ventures (moderator) • Kevin Malik, CEO, RunBuggy • Trent Broberg, CEO, ACERTUS • Pearl Percy, GVP, Chief Corporate Development Officer, JM Family Enterprises • John Trieu, Managing Director, Holman Growth Ventures