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FROM THE PRESIDENT

drive into the future My all-time favorite restaurant was a little place near where I grew up on the west side of Boone called Nancy’s Cafe. Nancy served standard fare, what we’d call comfort food today. It likely would not get too many stars from Zagat or Yelp. Nancy’s was the Anderson family’s go-to spot, especially when Dad was in charge of the meal because Mom was working late or for those occasional Saturday restaurant breakfasts. There was always a special, and it was usually either meatloaf or fried chicken. The menu was rounded out with cheeseburgers, tenderloins (fried pork fritter sandwiches to any non-Iowans reading this), and hot beef sandwiches (again for the non-Iowans, that’s a plate with two slices of white bread, two slabs of roast beef, and a scoop of mashed potatoes all covered in brown gravy). There was a glass rack on the counter filled with cinnamon rolls in the morning and plated slices of fruit pie the rest of the day. You may be wondering why in the world I’m reminiscing about a restaurant that has been closed for years and meals that I enjoyed decades ago in my Iowa Auto Dealer column. Hang with me here because I’m coming to a point that involves both the magazine you’re reading and, more importantly, the automobile dealership where you make your living. While I still enjoy and crave the calorie-dense, high-fat comfort food that Nancy served, my diet has really changed since those days. And it continues to evolve. I love pad thai and pho. I am as likely to order fish tacos or pozole rojo when I am at a restaurant than anything Nancy ever served. I have even developed a taste for some of the plant-based meat substitutes out there. Nancy would not approve. But then again, Nancy is no longer in business.

You can see where I’m going here. Just as there have been changes in dietary preferences and restaurant menus, automotive offerings and motorist expectations have evolved, too. More changes are coming fast, especially in automated driver assistance and electrification. I won’t torture the metaphor much further, but I will note that even though Nancy’s Cafe has long since closed, there is no shortage of wonderful restaurants with varied menus that feature both the basics and healthy, innovative, and new options. The same is true in our industry. The best dealers—the ones that are surviving and thriving—are those that adapt, grow, innovate, and, most importantly, anticipate and meet customer demands and needs. That is just what you do. It is what automobile dealers have done for over a century. You keep up with and are even ahead of the latest technology, and you introduce car and truck buyers to new concepts and advancements with every new model year. There are “disruptors” and other doubters out there saying that dealers are not equipped, prepared, nor even willing to sell the new technology. History shows that is simply ridiculous. The day the first models with fuel injection technology showed up in your showrooms most of your technicians were carburetor specialists, but that changed. Unlike the cook at Nancy’s Cafe (who happened to be named Nancy), you have and will adapt in order to sell and service what your customers want. That is where Iowa Automobile Dealers Association and Iowa Auto Dealer magazine can help. The one constant thing in automotive retailing is change. This edition of your association magazine recognizes and addresses that fact. From the feature on social media marketing to the tips on modernizing the titling and registration process and even advice on being more inclusive, we are hoping to help you push the envelope as automotive retailing roars into the future.

Bruce Anderson IADA President

SPRING/SUMMER 2021 1

LOWER LEFT PHOTO COURTESY OF O’HALLORAN INTERNATIONAL; LOWER RIGHT PHOTO COURTESY OF KEN CHESTER

in this issue

1111 Office Park Road West Des Moines, Iowa 50265 Phone: 800.869.1900 CHAIRMAN Matt Brown VICE CHAIRMAN Jon McCoy PRESIDENT Bruce Anderson SECRETARY Dave Wright TREASURER Jim O’Halloran IMMEDIATE PAST CHAIRMAN

John Gookin

DIRECTORS AT LARGE

Tim Godfrey, Danny Wilson

HEAVY DUTY TRUCK DIRECTOR

departments

INDEPENDENT DIRECTOR

Fred Grask J Olesen

DISTRICT ONE DIRECTOR

Lindsay McGrath

DISTRICT TWO DIRECTOR

Josh VanNess

DISTRICT THREE DIRECTOR

Jason Willis

DISTRICT FOUR DIRECTOR

Carey Kemna

NADA DIRECTOR Jeff Weber EDITOR Brittany Bungert Iowa Auto Dealer (ISSN 2472-2634) is a bi-annual magazine produced for members of the Iowa Automobile Dealers Association. © 2021 Iowa Automobile Dealers Association Cover Art: Social media can be an effective tool for dealerships. Learn how to make it work for you in “Rules of Engagement,” page 16.

2 IOWA AUTO DEALER

from the president Driving your dealership into the future.

show & tell Dealerships support schools and the students they serve.

noteworthy News of note from IADA.

five things How to make your workplace more inclusive.

q&a What to do when it’s time to sell.

pro tip Modernizing the registration and titling process.

odds & ends Automotive radio, brought to you from Iowa.

features

rules of engagement Boost your social media marketing with these best practices.

forms 101 Take your paperwork knowledge to the next level.

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4 IOWA AUTO DEALER

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Q&A

selling the business

Experts give advice on what to do when you’re considering moving on from your dealership.

“I’m thinking about selling my dealership. What should I consider?”

ERIN KERRIGAN Founder & Managing Director Kerrigan Advisors kerriganadvisors.com

6 IOWA AUTO DEALER

When considering a sale of your dealership, there are several important considerations. First, it is imperative to have a thorough understanding of your personal financial profile, including the annual cash flow you receive from the dealership and the sale proceeds you will require to replace dealership cash flow. Understanding your personal finances and estate goals is key to making the right decision to sell your dealership. Many dealers engage experienced buy/sell brokers, accountants, and attorneys to determine the potential proceeds from a sale and work with these individuals to calculate the after tax proceeds they can expect. If you determine a sale makes financial sense for you and your family, the next step is preparing your business for sale. This process includes appraising real estate to be sold, accurately summarizing add backs to your historical dealership earnings, identifying outstanding loans/leases that will need to be paid off at closing, listing contracts to be assumed by a buyer, tabulating the reserves required for contingent liabilities associated with any existing or historical marketing programs (tires for life, oil changes, etc.), and notating any material legal/regulatory/OEM disclosures. Because this information will need to be shared with a buyer as part of the buy/sell, it is best practice to collect this data in advance of starting the sale process. In essence, doing your own due diligence on your business before the buyer does. Finally, at the end of the day, the decision to sell a business is a very personal one. You need to consider how a sale will affect your personal and professional life. The more you mentally prepare yourself for life after the sale, the more confident you will be about your decision. Preparation, both financial and personal, ultimately improves sale execution and increases the odds of a successful outcome.

A: DAMON LESTER President National Association of Minority Automobile Dealers namad.org

Q&A

The first thing you need to consider is the why. Are you exiting because of a lack of succession? Are you exiting because of franchise valuation? Are you exiting because of the fact that the auto industry or the car business isn’t fun anymore? If you answer yes to one of those three questions, you should proceed. When looking for a buyer, search outside your network or the existing dealer body. When you look outside the box, you get new ideas, new ways to penetrate the market, and new ways stir up the market with fresh eyes, a new perspective, and a whole different level of energy. One way to look beyond your network is to look for a minority buyer. You can contact the manufacturer and ask who the minority dealer network representative is. You can provide them with a buyer’s assist letter, which specifies that you are looking for a minority buyer. From there, the manufacturer will look at its existing dealer network or contact me. We will look and see if there would be any interest in that particular opportunity. Expanding your buyer search provides the opportunity for someone new, someone fresh, someone who may be more innovative or creative to put a jolt in the market and pass the business you built on to someone who will work hard to continue its success.

Your one-stop shop. Promotional Items Finance Forms Office Supplies Plastic Covers Service Supplies Windshield Advertising

Visit www.iada.com SPRING/SUMMER 2021 7

Q&A

When you prepare to sell your dealership, we recommend taking the following six steps to evaluate and prepare for a dealership sale: Step 1: Keep it a secret. Maintain strict confidentiality by keeping the circle of people who know that you are considering a sale to a minimum (even from family) to prevent rumors from circulating that could disrupt your operations, upset your community, and delay the sale process.

MICHELLE ARENSON, JIM ARENSON, JOHN HOFMEYER IV Arenson Law Group arensonlaw.com

Step 2: Prepare yourself for the sale. Review your existing ownership, management, and operational agreements to determine when it is best for you to sell and whether you can shift some daily management and operational control to support a smooth transition. Step 3: Consult with professional advisors. Discuss your goals and the tax implications of a sale with experienced attorneys, CPAs, and other professionals in order to develop a marketing plan and valuation of the dealership assets including its value as a going concern dealership (i.e. blue sky). Step 4: Continue dealership operations as usual, with few exceptions. Continue to work to grow the business and avoid shifting income off-statement. Avoid increasing dealership obligations such as expenses, facilities, in-house programs, vendor (e.g. DMS) and employment agreements. Step 5: Understand and streamline your operations. Identify dealership weaknesses, including any unnecessary expenses. Review dealership inventories, contracts, accounts and records, off-statement income/assets, departmental operations, fixed assets, compensation plans (including dealer and family), and working capital. Step 6: “Detail” the dealership. Potential purchasers want a turn-key operation. Clean and organize the facilities, making necessary low-cost repairs. Evaluate the dealership’s image in the community and online, making necessary adjustments. The sale of your dealership is an important decision that impacts your life, your family, your employees, and your community. Proactive planning helps ensure the best transition and potential outcome for all.

8 IOWA AUTO DEALER

SHOW & TELL

school spirit

Dealerships dedicate time and resources to benefit students in their communities.

On your marks! Program participants get ready to race at a finale event for the Get Up & Move program run by the Brown’s Hometown Victory Foundation. PHOTO COURTESY OF VICTORY FORD

Classroom volunteer. Scholarship provider. Meeting host. Iowa dealerships do more than just sell and service cars in their local communities. In many cases, they are a key supporter of the area schools, developing programs, volunteering their time, and providing financial support to help the next generation. “They are the heartbeat of our community and our future,” said Kaleann Waterman, public relations and events coordinator for Victory Ford in Dyersville and Brown’s West Branch, of the students she helps through her role coordinating programs for the Brown’s Hometown Victory Foundation. One of those programs is Get Up & Move, which launched in 2018 with a goal of improving children’s imaginations and independence. The program incentivizes students to play outside or at a rec center, embracing free play as opposed to organized activities. It started with a conversation between Waterman and a school principal. While lamenting the fact that her kids constantly wanted to be entertained, Waterman learned that was a struggle for many students at the school. “We need to make sure kids continue to read,” Waterman said, “but what they’re noticing is the lack of free play being done at home.” Children have countless opportunities to participate in

organized sports and activities, where adults take charge and tell them what to do. There are fewer opportunities for the next generation to figure it out on their own and go play. Waterman went to work brainstorming how the dealership’s foundation could tackle that problem. The result was Get Up & Move, which is available through five schools twice a year. For the 65 days of the program, participants play outside or at the rec center without their parents or electronics. Parents sign off that the child did indeed play independently, and at the end of the program the students turn in their logs for prizes, which are awarded based on the number of days the child was active. Past prizes include slip and slides, tents, snowball slingshots, and various other sports equipment, depending on the season and what fits in the program budget. “Get Up & Move has rather large prizes,” Waterman said. “I try to do it during the times that aren’t the most conducive to play. October to December was our last one, where it’s starting to

“They are the heartbeat of our community and our future.” Kaleann Waterman SPRING/SUMMER 2021 9

SHOW & TELL

get cold outside, to give them that extra push to get out of their comfort zone and play.” Get Up & Move has made a difference not only for the students, but also for their parents. Waterman has heard from parents whose children do their Get Up & Move time right when they get home each evening, giving the parents an opportunity to unpack bags and prep dinner. And looking down the road, there are benefits that will pay off for the dealership in years to come. “With free play they get the social and emotional growth. They learn how to deal with frustration if another kid takes their toy. How to problem solve, how to just be independent,” said Waterman. “As we continue to look at the next generation coming in and applying for jobs, these are the skills we want to make sure kids maintain. The ability to problem solve and think independently.” Just as Get Up & Move is helping Dyersville-area students gain skills for future employment, O’Halloran International in Cherokee is educating students about the transportation industry through the Cherokee Community Schools Partner in Excellence program. “Our involvement is extremely important to our business in many ways, one being educating the children at such an impressionable age about the transportation industry while offering an opportunity to keep talent local,” said Abbi AgnitschRiggs, service advisor for O’Halloran International in Cherokee. “It is an industry so many don’t know much about or don’t even realize the value to the community. Planting that seed at a young age will prove very valuable in the future years to come as they grow and begin a career and potentially move back to the city with their family.” The Cherokee Community Schools Partner in Excellence program was created by the Cherokee Chamber of Commerce, which invited businesses to volunteer to partner with a classroom. Each year, O’Halloran International visits the classroom, reads a story about kindness, and challenges the students to perform 150 random acts of kindness with premade cards. Students who complete the challenge receive prizes ranging from ice cream or pizza parties to a dealership tour. “Our first visit of the year for the past three years has been a ‘Touch a Truck’ where the students get to climb up in the truck and see where a driver may have to live while he delivers much needed supplies to the world,” said Agnitsch-Riggs. “The students love that and most often make the connection between the trucking industry and their everyday lives.” Although the COVID-19 pandemic made the program a mostly virtual experience, the dealership and students have continued to find it rewarding. “Our classroom views us as heroes,” AgnitschRiggs said. “They truly love the experiences we have provided, the lessons we have taught them, and overall learning about a business in their hometown.” Vollmar Motors in Holstein has also focused on classroom support, although their efforts centered around the construction of the classroom. In 2018, the Holstein community was preparing to vote on whether to build an addition to Ridge View High School, which

10 IOWA AUTO DEALER

Jim O’Halloran of O’Halloran International takes Cherokee students on a tour of his dealership as part of the Cherokee Community Schools Partner in Excellence program. A dealership tour was a favorite part of their classroom relationship before the pandemic necessitated social distancing. PHOTO COURTESY OF O’HALLORAN INTERNATIONAL

“Our classroom views us as heroes. They truly love the experiences we have provided, the lessons we have taught them, and overall learning about a business in their hometown.” Abbi Agnitsch-Riggs

TURNING MASSIVE CHALLENGES INTO MEANINGFUL CHANGE

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SHOW & TELL

To help generate support for building an addition to Ridge View High School, Kathy Vollmar of Vollmar Motors designed and distributed t-shirts. PHOTO COURTESY OF VOLLMAR MOTORS

“We have a program where they can come work at either dealership or the collision center as an intern, and hopefully they’ll fall in love with the program, fall in love with the industry, and come work for me.” Brad Deery

12 IOWA AUTO DEALER

would include space for an automotive education area. Kathy Vollmar knew she needed to help generate support, so the dealership hosted a dinner before an informational meeting. “Free dinner was served to those attending the meeting,” Vollmar said. “T-shirts were also given out to attendees, promoting the project.” Vollmar designed the t-shirts herself, and displayed them on a table with information promoting the Iowa Automobile Dealers Foundation for Education scholarships. The $12-million bond gained the approval of 79% of voters in December 2018 and construction will be completed in August 2021. “We needed to have the building addition because it will include an auto technician training area,” Vollmar said. “The classroom currently is a spare room at the bus barn.” Vollmar hopes that the renewed auto tech program at the high school will generate interest in pursuing a career at the dealership. “Like most dealerships, our need for mechanics has been a struggle,” she said. On the other side of the state, the struggle for mechanics spurred an innovative way for a dealership group to help students that doubles as a recruiting tool. Brad Deery launched

SHOW & TELL

a scholarship program for two dealerships and a collision center, which is administered through the local community college. The program helps students afford school and creates a pipeline for future employees. “We have a program where they can come work at either dealership or the collision center as an intern, and hopefully they’ll fall in love with the program, fall in love with the industry, and come work for me,” Deery said. The program is just a few years old and is the result of Deery rethinking his recruiting strategy. “We used to go after seniors in high school,” Deery said. “Now we’ve re-examined our recruiting efforts and we need to start in eighth and ninth grade. By the time they’re a senior, it’s too late.” The scholarship program works as a marketing tool for Deery’s businesses, but it benefits more than just the dealerships. “We want the local college to support auto programs,” Deery said. “We’re trying to find a common ground for everybody: the students, the teachers, and the dealership.” Finding that common ground generates community-wide goodwill for dealerships all across the state. It’s something Waterman said she’s seen first-hand. “I’ve had customers say that they won’t shop anywhere else because of what you do for our kids in the community.”

Driving School Fundraising The Drive 4 UR School program is one of the most popular ways for dealerships to give back to their communities. In Iowa, the program has resulted in massive funds raised for schools across the state. Between 2015 and 2019, 76 Ford dealerships in Iowa participated in the program and held a total of 281 events. The 57,034 test drives resulted in $1,070,860 raised for their communities. “We like the Drive 4 UR School program because it’s a fun, low-pressure way for us to interact with the community,” said Whitney Johnson, marketing and business development director at Bill Colwell Ford in Hudson. “The booster club can make up to $6,000 in one day and we get to promote our products and business. It’s a win for both organizations.”

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SPRING/SUMMER 2021 13

FIVE THINGS

five things from one iowa

Create an inclusive environment for employees and customers. BY MADELINE ROCHA SMITH

One Iowa is the state’s leading lesbian, gay, bisexual, transgender, and queer/ questioning (LGBTQ) organization working to preserve and advance equality through grassroots efforts, advocacy, and education. Our priorities include improving workplace environments, increasing access to healthcare, advocating for transgender Iowans, providing training and

Madeline Rocha Smith is the communications and events coordinator for One Iowa.

mentorship to aspiring leaders, and serving as a connector and capacity builder for community resources. We hope to

Never assume someone’s gender identity or sexual orientation. It’s universal that nobody likes to have assumptions

someday create an Iowa where equality for all LGBTQ people is a reality. Here are five

made about them without an effort to get to know them first. The same goes for those in the LGBTQ

community. Never assume a customer’s gender

quick ways to be more inclusive to LGBTQ folks in your workplace!

14 IOWA AUTO DEALER

identity or sexual orientation based on their physical appearance.

FIVE THINGS

Include your pronouns in your introduction and on your nametag.

Use gender-neutral language. When addressing a group of people, using

First introductions are everything. When out on the sales floor, include your pronouns in your introduction to potential customers. You are immediately creating a safe space for folks who may use different pronouns to open up and feel comfortable sharing theirs. While it may seem foreign to you at first if you’ve never

gender-neutral language such as “folks” or “y’all” is a better alternative to the commonly used “guys” in conversation. Also, skip the gendered honorifics of “sir” and “ma’am” and simply use their first

name instead.

done it before, with some practice it will become second nature.

Pronouns He/Him/His They/Them/Theirs She/Her/Hers

Make sure your office reflects inclusivity. There are subtle yet powerful ways to show LGBTQ folks you value inclusivity in your workplace. Adding

If you mess up, apologize and move on. Everyone makes mistakes! If you misgender someone or use the wrong pronouns, make sure to apologize right away, move on, and commit to doing better. Don’t go on about how bad you feel because that puts the person affected in an awkward position to now have to comfort and assure you. Let’s say a coworker comes up and asks you “Do you want me to get keys for her to test drive a car?”

pronouns to your business cards, having a diverse

You would simply say, “Yes, that would be great, and

representation of people in your collateral materials,

Madeline actually uses they/them pronouns” and

and gender-neutral bathrooms are great (and free!)

move on. It is simple, to the point, and

ways to make your dealership or office more inclusive.

shows the customer you care about getting their pronouns right.

Resources Want to learn more? One Iowa provides inclusivity training and policy guidance. Visit oneiowa.org for more information.

SPRING/SUMMER 2021 15

RULES OF ENGAGEMENT

rules of engagement

Implementing social media best practices is a vital step in attracting new customers and engaging existing buyers. BY ASHLEY FLAWS 16 IOWA AUTO DEALER

RULES OF ENGAGEMENT

The average person scrolls the equivalent of 1,454 feet— the height of the Empire State Building—each day on social media, according to SocialDealer, a social media agency dedicated to serving the automobile industry. Keeping customers mobile is the driving force behind every automobile dealership, but these days, keeping up with customers on mobile devices is an essential part of the business, as well. Boosting your social media presence attracts new customers, keeps recent buyers engaged, and is as simple as following a few best practices from

Facebook employees. When in doubt, identifying your target audience can help shape your social strategy. Facebook is more popular amongst adults, while Snapchat, TikTok, and Instagram may appeal to a younger audience. “If you’re a luxury brand with a target market of customers age 35 plus, then TikTok probably isn’t the best platform to put energy into,” said Allison Reinert, senior marketing partner at Cardinal Digital Marketing. “Your customers and potential customers are more likely active on Facebook.” In fact, 74% of high-income earners are Facebook users, according to the Pew Research Center, and 79% of adults aged 30–49 use the platform. Whichever platforms you decide to use, Reinert stresses the importance of remaining active. It goes back to that crawl-to-walk approach. Don’t bite off more than you can chew, and place your energy into quality content on a couple key platforms. Chris Snider, an associate professor at the Drake University School of Journalism and Mass Communication, echoes this sentiment, stressing social media platforms today make it easier than ever to be successful with key information about how their algorithms work. For example,

801 Grand, Des Moines

Implementing a Social Strategy Success on social media is best found with the quality over quantity approach. While it may seem like maximum reach is best obtained through populating pages across multiple social media platforms, Nick Westergaard, chief strategist at Brand Driven Digital, recommends adopting a “crawl-to-walk” mindset. “Work on doing a few things—a social network, a form of content— really well,” Westergaard said. “And use it strategically. What business objective is this supporting? Building your brand? Generating leads and sales? With those questions answered, you can focus your work, the resources you commit to it, and effectively measure success.” Westergaard recommends focusing on developing your Facebook and Instagram presence first, before branching out to other platforms such as Snapchat and TikTok. Facebook and Instagram share a content suite, so it’s easy to manage content and track engagement for both platforms at the same time. Further, Facebook and Instagram are hot spots for the automobile consumer. Eighty-seven percent of consumers turn to Facebook or Instagram on the hunt for their next vehicle, said Andrew Street, CEO of Dealer OMG, an automotive digital marketing firm founded by former

Empire State Building, New York

industry experts.

If you scroll the equivalent of the Empire State Building each day, you’re swiping more than two times the height of Iowa’s tallest building. SPRING/SUMMER 2021 17

RULES OF ENGAGEMENT

Types of Content

Benefit your community • •

Community news Local events

Generate curiosity • •

New technology Customer photos

Educate people about your products and services • • •

Car videos Maintenance tips Trivia

Call to action • •

Vehicle inventory Service specials

Instagram rewards consistent use of all of its features. “If you’re going to be on Instagram, you need to do it right,” Snider said. “That means consistently creating posts, stories, Reels, and IGTV posts. Instagram rewards consistently using all of its features, so start to build a strategy that includes them all.” Creating Content The medium is just the first step in capturing a social audience. Snider said there are four main types of content every business should capitalize on: • Content that benefits your persona/community (not just you) and is in-line with your brand • Content that generates curiosity about your products • Content that educates people about your products and services • Content that asks to take action (i.e., a sale) Eighty-six percent of automobile consumers want to stay engaged with dealerships post purchase, and 49% have shared auto-related content on their own social media pages, according to a Facebook-commissioned auto customer journey study by Accenture. Consumers want to see your content, so give it to them. Ask yourself what a real person would expect to see in their social media feed. Go to Instagram and Facebook and search #cars to see what people are posting and interested in the automotive community, Snider suggests. The goal is to create native content that looks like what a real person would post, rather than selfserving content that does not offer value to the consumer. “Cars are cool,” Snider said. “Show me cool cars and cool features in cars. Test my ability to guess the year of a car. Build some great community and content

“One of the least tapped into resources that dealers have is really maximizing their own database. A dealer is sitting on a goldmine of data.” Andrew Street

18 IOWA AUTO DEALER

around the fact that many people out there love cars.” Westergaard recommends considering what customers may be struggling with seasonally. Can your dealership be a resource for winter weather driving? How can you help with inevitable summer vacation packing struggles for those with heavy loads? If executed correctly, such content may benefit your community, generate curiosity about your products, educate about what you have to offer, and lead to action on the consumer’s part. Check, check, check, and check. A staple of your existing social media strategy may be the standard photo of the salesperson beside a happy customer and their shiny new car. While there are other ways to share value with customers, don’t underestimate the power of people. “People love people,” Westergaard said. “We consistently see solid engagement from small businesses sharing stories about their people. Part of this is because people know these employees and there’s some natural virality to this content.” Ask the smiling customer if you can tag them in the post, Reinert advises. Doing so expands your audience to those the customer is connected with. If a customer tags your dealership in their own post or shares your post, send a reply in the comments section to generate an interaction, rather than simply sharing or liking the post. Comments are more meaningful and a great way to engage followers. Look for opportunities to move beyond photos and share video content, as well. Video posts continue to increase in popularity (with more than 4 billion views taking place on Facebook daily) and often do not even need a sound component, as most people scrolling through Facebook have their sound turned off, Reinert said. Consider creating a YouTube account

RULES OF ENGAGEMENT

to post video content and share on your other social media platforms. YouTube may have its own draw, as 87% of adults aged 30–49 and 70% of adults aged 50–64 are on the platform, according to the Pew Research Center. Utilizing Your Data Organic content, or content you have created that is not paid, is an investment in and of itself—an investment in time, which, if well spent, can maximize your return on that investment through high engagement and increased social following. However, there are also paid avenues to explore to maximize your return. Unfortunately, Facebook’s algorithm is based on likes, comments, and shares, and organic posts are not always prominent in the newsfeed, Dealer OMG’s Andrew Street said. That’s where targeted advertising comes in. Facebook and Instagram share an advertising platform, so ads can seamlessly integrate across both platforms. To get started, dealers need look no further than their very own data. “One of the least tapped into resources that dealers have is really maximizing their own database,” Street said. “A dealer

is sitting on a goldmine of data. All it is is their CRM information, their customer lists, and their website traffic.” For example, take a list of anyone who has purchased a pickup truck from your dealership. Facebook’s own data can narrow it down to anyone on that list who is still within a 100-mile radius of your dealership. A targeted ad about new F-150s in stock will reach this audience in their newsfeed and direct them straight to your inventory. Want to draw business to the service department? Pull a list of all recent vehicle purchasers who live close to the dealership and have yet to visit the service department for routine maintenance and use paid advertising to promote your services. Paid advertising also allows you to connect with shoppers who are currently in the market. Using your website data to identify those who have visited your site and targeting them on Facebook removes the guesswork. They are already familiar with your dealership and may only need that extra nudge to go through with the purchase. “Boosting content and paid ads on

SPRING/SUMMER 2021 19

RULES OF ENGAGEMENT

social media can be a cost-effective way to increase your social presence and promote your dealership,” Reinert said. “If you are going to run ads, be sure to set up tracking pixels so you can determine effectiveness and ROI. Also, make sure you have Google Analytics on your website so you can determine referral traffic from your social media channels.” Putting It into Practice Consistency is key with the content you are sharing, especially across multiple platforms. The best way to put a social media strategy into practice is to have one person in charge of social media, Reinert said. It isn’t uncommon for salespeople to have their own social pages, as well, and there is still room for them in your strategy. “Think about how a major league baseball team operates on social media,” Reinert said. “The team posts branded content related to the team and the sport.

Many players have their own social channels. If the team wants to share the players’ content, they will. But, the players aren’t posting as the team.” Dealership staff, including the sales team, can be managed in much the same way. Content they are posting to their own accounts can be shared on the dealership’s page as relevant, but multiple people should not all be posting directly under the name of the dealership. It is actually beneficial for salespeople to have their own Facebook pages for cross-promotion of dealership content. “I personally have seen a lot of success from dealers, whether it’s huge new car dealers or really small pre-owned lots, get success from their salespeople managing their own social media profiles and putting stuff out there just reminding their network where they work and posting things like unique trades that have come in or vehicles that are going to sell quickly,

Work It Out

getting those out there before it’s listed on the website,” Street said. Drake University’s Chris Snider agrees and said the social media manager can go as far as to provide guidance and support to individuals running their own accounts to create quality posts. “I’d also start to think about how [the dealership] can share more content from real people and not just their page,” Snider said. “That could mean influencers and it could mean their individual salespeople becoming at the heart of the social media strategy.” Integrating staff as an integral part of the dealership’s social media strategy pays off because, again, people love people. Staff are an important part of the dealership’s brand and have their own ties to the community that can benefit the dealership. “A lot of times, individual team members are working on cool things in

Make sure to have written guidance in place for anyone representing the dealership on social media. This is especially important when an employee establishes a social media presence separate from the official dealership account. The dealership and employee need to be on the same page regarding: • Who owns the page. • What happens to the page if the employee leaves the dealership. Does the dealership maintain control of it or does the now former employee? • When an employee can and should be managing that social media account. There are potential overtime and minimum wage issues if the employee is posting and responding to social media during nonwork hours. Dealership employees creating social media content on behalf of the dealership also need to be aware of automotive advertising laws, especially including trigger terms. For more information about automotive advertising visit iada.com/legal-library/ or download NADA’s Dealer Guide to Federal Advertising Requirements from nada.org.

20 IOWA AUTO DEALER

RULES OF ENGAGEMENT

the community that would be great for the dealership to share but often aren’t in the loop,” Westergaard said. “Build moments for sharing like this into your regular status, sales, and update meetings.” If you do not have anyone who is social savvy already on your team, hiring a marketing firm in the area is another option, though ideally one person in-house with a better understanding of the dealership inventory and services would be able to help coordinate relevant

and timely social media content.

utilizing social media, now is the time to get started. “It’s a great time to be on social media,” Snider said. “These networks are being more open about how their algorithms work, they all have great analytics tools, and they all have great resources for creating quality content.” Everything you need to get started is at your fingertips. Just scroll with it.

Ready to Scroll D e a l e r s h ave a l wa y s p rov i d e d customers the means to get from Point A to Point B. In the current digital landscape, Point A may very well be a cell phone, Point B the dealership itself, and the means to get from one to the other social media marketing. Social media is a vital tool to connect your products and services with the consumer. If you are not already

Get Social Maximize your marketing by focusing on networks with demographics you want to meet.

Facebook

Instagram

67% of 18–29 year olds are on Instagram

430 million users 23% of 25–29 year olds are on Reddit

2 billion users

2.2 billion users

79% of 30–49 year olds use Facebook

1.2 billion users

YouTube

2.7 billion users

42% of Hispanic adults use WhatsApp

91% of 18–29 year olds are on YouTube

740 million users 51% of college grads are on LinkedIn

Twitter

353 million users 32% of college grads are on Twitter

Snapchat

498 million users 62% of 18–29 year olds use Snapchat

Yelp

142 million users 54% of Yelp users earn $100,000+

442 million users 42% of adult women are on Pinterest

Twitch

30 million users Nearly 50% of Twitch users are 18-34

SPRING/SUMMER 2021 21

FORMS 101 Go back to basics with this paperwork primer. Buying a car involves a lot of paperwork. From the purchase agreement to the odometer disclosure, each part of the process requires documentation and signatures. But do you know what each form used in the sales process actually does? The most effective forms protect both the dealership and the customer, clearly laying out what each party is agreeing to. And the most effective dealership employees fully understand the forms and are able to talk through them with the customers, answering questions in a way that is comprehensible and concise. The following guide to commonly used dealership forms explains the purpose of the forms and offers tips for using them more effectively. Want to know more? IADA and IADA Printing & Promotions staff experts can provide guidance and clarity on the forms that are essential to your business.

The forms shown on the following pages are available at store.iada.com.

22 IOWA AUTO DEALER

FORMS 101

IOWA VEHICLE RETAIL INSTALLMENT CONTRACT

DATE:

Dealer’s (Creditor-Seller) Name and Address

Description of Purchased Vehicle Year

New

Used

Make

Primary Use for Which Purchased (check one):

ANNUAL PERCENTAGE RATE The cost of your credit as a yearly rate.

CONTRACT NO.

Buyer (and Co-Buyer) Name and Address

Demo Model

Car

Truck V.I.N.

Body Type

Personal, Household or Family

Business

Agricultural

Other

FEDERAL TRUTH-IN-LENDING DISCLOSURES

FINANCE CHARGE The dollar amount the credit will cost you.

Total of Payments The amount you will have paid after you have made all payments as scheduled. $

YOUR PAYMENT SCHEDULE WILL BE: Number of Payments

Amount Financed The amount of credit provided to you or on your behalf.

Amount of Payments

Total Sale Price The total cost of your purchase on credit, including your down payment of $ $

What It Does

When Payments Are Due

Security: You are giving a security interest in the vehicle being purchased. Late Charge: If any payment is not paid in full within 10 days after it is due, you will be charged a maximum of $30.00 or an amount not exceeding 5% of the part of the payment which is late, whichever is less. Prepayment: If you pay off your debt early, you will not have to pay a penalty. See the other side of this contract for additional terms including information about nonpayment, default, any required repayment in full before the scheduled date, prepayment refunds and security interest.

INSURANCE COVERAGE ITEMIZATION OF AMOUNT FINANCED Physical Damage Insurance is required. Price You may obtain it from anyone who is 1. Cash (including a documentary fee of $ ) acceptable to us or you may provide it 2. Down Payment through a policy you already have. If Trade-In (Year, Make, Model) you get the insurance from us, the a. Gross Trade-In Allowance $ cost is shown on line 4e at right. b. Less Payoff Made by Seller $ INSURANCE OBTAINED FROM US DOES NOT INCLUDE LIABILITY FOR c. Equals Net Trade-In (a minus b) $ INJURY TO PERSONS OR DAMAGE d. Cash $ TO PROPERTY OF OTHERS. e. Other $ Term: months Total Downpayment (c + d + e) (If negative, enter “0” and see line 4h, below) Insurance Company Name

Collision ($ deductible) Comprehensive ($ deductible) Other than collision Credit life insurance and credi t disability insurance are not required to obtain credit and your decision to buy or not buy credit life insurance or credit disability insurance will not be a factor in the credit approval process. They will not be provided unless you agree to pay the extra cost by checking the coverage and signing below. The cost of the coverage is shown in item 4 of the Itemization of Amount Financed. Check the coverage desired: Life ( Buyer Co-Buyer) Disability ( Buyer Co-Buyer) Insurance Company Name

You want to buy coverage checked above for the term of the contract and at the cost listed in item 4 at right.

X X

Buyer Signature

Date

Co-Buyer Signature

Date

3. Unpaid Balance of Cash Price (1 minus 2) 4. Paid to Others on Your Behalf To Public Officials for: a. Title & Registration Fees b. Lien Filing Fee c. Taxes (not in Cash Price) d. *To Insurance Companies for: e. Physical Damage Insurance f. Credit Life Insurance g. Credit Disability Insurance To Others: for prior credit or lease balance h. To for optional GAP Contract *i. To for *j. To for *k. To for *l. To *m. To for *n. To for *o. To for *p. To for Total Paid to Others (Add 4a through 4p) 5. Amount Financed (3 + 4) *We may be retaining a portion of these amounts.

(1)

$ $

(2) (3)

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

(4) (5)

$ $

Name of GAP Company______________________________________ Buyer Signature X

HOW THIS CONTRACT CAN BE CHANGED: IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT. Buyer Signature

Co-Buyer Signature

NOTICE TO CONSUMER (BUYER): (1) Do not sign this paper before you read it. (2) You are entitled to a copy of this paper. (3) You may prepay the unpaid balance at any time without penalty, and may be entitled to receive a refund of unearned charges in accordance with law.

The Annual Percentage Rate may be negotiable with the Dealer. The Dealer may assign this contract and retain its right to receive a part of the Finance Charge. Do not sign this Contract on a Sunday.

You are certifying that you are at least 18 years old, that you have read this contract, front and back, and agree to its terms, and that you received a completely filled-in copy when you signed it. You confirm that before you signed this contract, we gave it to you, and you were free to take it and review it.

Date

Buyer Signature

Signature of Co-Owner Not Obligated on Debt Consenting to and Granting Security Interest

FOR DEALER’S USE ONLY: DEALER’S ASSIGNMENT Dealer assigns its interest in this contract to: Check one: Assigned without recourse Dealership Name

Date

X X

Co-Buyer Signature

Date

Dealer’s Authorized Representative

Date

Assigned with limited recourse Dealer’s Authorized Representative

The retail installment contract is an agreement between a customer and the dealership that the customer will pay for their new vehicle over a set period of time at cost plus interest. The dealership then typically sells that contract to a lender, unless it is a buy here, pay here dealership.

Did You Know?

The IADA-copyrighted Iowa Vehicle Retail Installment Contract was revised in 2017 to include updates requested by both dealerships and lending institutions. It’s available in both e-form (left) and paper versions. In addition to IADA staff experts, national law firm Hudson Cook reviews the IADA retail installment contract and motor vehicle purchase agreement.

A GAP CONTRACT (debt cancellation contract) is optional and is not required to obtain credit and will not be provided unless you sign below and agree to pay the extra charge. If you choose to buy a gap contract, the charge is shown on line 4i in the Itemization of Amount Financed section. See your gap contract for details on the terms and conditions it provides. It is a part of this contract. I want to buy a GAP Contract: Term_______Months

Retail Installment Contract

IADA Printing & Promotions sells more than 200,000 retail installment contracts each year.

(Assignee) under the terms of the Dealer’s agreement(s) with Assignee. Assigned with recourse Dealer Representative’s Title

e-RIC17 (Rev. 10/17) © IADA Services, Inc.

SPRING/SUMMER 2021 23

FORMS 101

Motor Vehicle Purchase Agreement What It Does

The motor vehicle purchase agreement is a legally binding contract signed by both the customer and the dealership.

IADA SERVICES, INC. - WEST DES MOINES, IA 50265

300001

• To Order Forms Call 800-869-1966 •

iada.com 31417924

MAC-6

MOTOR VEHICLE PURCHASE AGREEMENT

No. Customer No.

DATE

BUYER CO-BUYER ADDRESS ADDRESS LINE 2 CITY

STATE

ZIP

EMAIL ADDRESS

RES. PHONE

DESCRIPTION OF PURCHASED VEHICLE: STOCK NO.

CELL

BUYER’S REGISTRATION MONTH

SALESPERSON

YEAR

NEW

USED

MAKE

WORK COUNTY

DEMO

CAR

TRUCK

VAN

MODEL

OTHER

BODY TYPE TRIM

V.I.N.

COLOR

TO BE DELIVERED ON OR ABOUT

PRICE OF VEHICLE ACCESSORIES:

TRADE-IN ALLOWANCE AND OTHER CREDITS: YEAR

MAKE

MODEL

BODY TYPE

MODEL

BODY TYPE

V.I.N. BALANCE OWED TO

Did You Know?

IADA’s copyrighted motor vehicle purchase agreement (CPO) was reworked in 2019, with the end result a more user-friendly design. The new design makes disclosing documentary and electronic registration and titling fees easier and includes 10 blank lines for listing products not physically added to the vehicle, like service contracts or credit insurance.

YEAR

MAKE

V.I.N. BALANCE OWED TO

TRADE-IN GROSS ALLOWANCE

LESS AMOUNT OWING

NET TRADE-IN ALLOWANCE OR REMAINING TRADE-IN DEBT

CASH DOWN PAYMENT OR CREDIT BALANCE

MANUFACTURER’S REBATE (IF ANY)

TOTAL DOWN PAYMENT or AMOUNT OWED $

DOCUMENTARY FEE

CASH PRICE

If you are trading in a vehicle, you certify the following: 1. That there is no salvage, repair or other history on the vehicle title that would affect the value of the vehicle. If there is salvage, repair or other history on the title, you agree that the dealer may cancel this sale. That to the best of your knowledge, the vehicle was never on or required to be on a salvage, rebuilt, flood or branded title in this or any other state.

LESS DOCUMENTARY FEE

LESS TRADE-IN ALLOWANCE

LESS MANUFACTURER’S REBATE

$ $

BUYER’S TRADE-IN CERTIFICATION

2. That the air bags are intact and in working order.

AMOUNT SUBJECT TO FEE FOR NEW REGISTRATION

FEE FOR NEW REGISTRATION

TITLE FEE

LICENSE FEE

LIEN FILING FEE [credit sale only see (1) on page 2]

ELECTRONIC REGISTRATION & TITLING FEE

TOTAL CASH DELIVERED PRICE

LESS TOTAL DOWN PAYMENT or PLUS AMOUNT OWED

UNPAID CASH BALANCE DUE ON DELIVERY

3. That while you have owned the trade-in, its odometer has not been repaired, replaced, tampered with or altered in any way. That the odometer statement, damage disclosure statement and prior vehicle history which you provided us for your trade-in is true and correct. 4. That the original emission control system (including the catalytic converter) is intact. That the engine and transmission have not been changed from the manufacturer’s original specifications. That the trade-in does not have a cracked or defective head, block, powertrain or frame.

You can add postage fees of $1 or $3 to the license fee field if postage is charged by the county treasurer.

OTHER INFORMATION OR TERMS OF SALE: Documentary Fee. A documentary fee is not an official fee. A documentary fee is not required by law, but may be charged to a buyer for the preparation of documents and the performance of related services. The maximum amount that may be charged for a documentary fee is determined by Iowa Code Section 322.19A. This notice is required by law.

You understand that this agreement (including the terms on page 2) is an offer to purchase the vehicle described which will become a binding contract once the dealer has signed it. This document represents the complete agreement between you and the dealer regardless of any other oral, written or prior agreements or representations. However, if you are buying a used vehicle, the information you see on the window form for this vehicle is part of the contract and the information on the window form overrides any contrary provision in this contract. [La informacion que aparece en la ventanilla de este vehiculo forma parte de este contrato. La informacion contenida en el formulario de la ventanilla anula cualquier prevision que establezca lo contrario y que aparezca en el contrato de venta.] Iowa law requires us to give you the following notice: You understand that liability insurance coverage which would protect you under the Iowa Motor Vehicle and Safety Responsibility Act IS NOT INCLUDED in your purchase of this motor vehicle. By signing this contract, you are certifying that you are at least 18 years old (if there are two buyers, that at least one of you is 18 years old), that you have read this contract, pages 1 and 2, and agree to its terms, and that you have received a copy of it.

X Buyer’s Signature

Date of Birth

Buyer’s Driver’s License or F.I.D. No.

X Co-Buyer’s Signature Accepted By:

24 IOWA AUTO DEALER

Co-Buyer’s Driver’s License or F.I.D. No.

Dealer’s Authorized Representative

Page 1 of 2

Date of Birth

FORMS 101

Spot Delivery Form What It Does

The Spot Delivery Form can be used when you want to deliver a vehicle before the financing source has unconditionally approved the credit and agreed to accept assignment of the retail installment contract.

Did You Know?

IADA Printing & Promotions might sell this form, but that doesn’t mean you should use it. Using this form is inherently risky, and you need to make sure you do everything the form says you will do—including getting back to the customer within three days. Make sure to refer to the spot delivery form on the retail installment contract, by writing “The Spot Delivery Form dated today is incorporated into this contract” immediately above the buyer’s signature line before the customer signs.

SPRING/SUMMER 2021 25

FORMS 101

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11/2/12

12:51 PM

Page 1

Secure Power of Attorney What It Does

The Secure Power of Attorney (also called an SPOA) authorizes a designated third party, including a dealership employee, to sign on behalf of the buyer or seller in certain limited situations.

Did You Know?

An SPOA can be used to sign the odometer statement, but only in limited circumstances. If the title is present or if the title is not present for any reason other than it is lost or with the lien holder an SPOA cannot be used for the odometer statement. IADA Printing & Promotions sells two versions of the SPOA: a one-part form for laser printers and a four-part form for impact printers. IADA-SPOA1 (Rev. 06/95)

Dealer’s Authorization Regarding Trade-In Vehicle

Dealer’s Authorization Regarding Trade-In Vehicle What It Does

This form authorizes the lender to release payoff information and deliver the title to the dealership. Customers also can give the dealership permission to release their name and phone number to a prospective buyer of the trade-in vehicle. Authorization to Release Payoff Information to the Dealer

Notice to Deliver a Title Certificate to the Dealer

Authorization to Release Owner’s Name and Phone Number

iada.com

26 IOWA AUTO DEALER

1-800-869-1966

Did You Know?

The lender will only provide the dealer with a payoff number if the customer permits them to do so. The payoff number provided by the lender is binding, but a payoff number provided by a customer who took a screenshot of their online account is not. Dealers need to make sure to get a payoff number provided by the bank—and the only way to do so is with the customer’s permission, which this form provides.

FORMS 101

ODOMETER DISCLOSURE STATEMENT Federal law and State law require that you state the mileage upon transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment. I,

, state that the

TRANSFEROR’S (SELLER’S) NAME - PRINT

odometer now reads (no tenths) miles and to the best of my knowledge that it reflects the actual mileage of the vehicle described below, unless one of the following statements is checked.

V E H I C L E

(1)

I hereby certify that to the best of my knowledge the odometer reading reflects the amount of mileage in excess of its mechanical limits.

(2)

I hereby certify that the odometer reading is NOT the actual mileage. WARNING-ODOMETER DISCREPANCY.

YEAR

MAKE

MODEL

BODY TYPE

VEHICLE IDENTIFICATION NUMBER TRANSFEROR’S (SELLER’S) SIGNATURE

S E L L E R

PRINTED NAME OF SIGNER TRANSFEROR’S NAME TRANSFEROR’S ADDRESS

STREET CITY

STATE

ZIP CODE

STATE

ZIP CODE

DATE OF STATEMENT TRANSFEREE’S (BUYER’S) SIGNATURE

B U Y E R

PRINTED NAME OF SIGNER TRANSFEREE’S NAME TRANSFEREE’S ADDRESS

STREET CITY

White-Treasurer’s Copy

Yellow-Seller’s Copy

Pink-Buyer’s Copy

Odometer Disclosure Statement What It Does

The odometer disclosure statement certifies the mileage on a vehicle as part of the sales process. It is still required to have an ink signature, unlike most other paperwork used in the car buying process. New vehicle dealers can use the odometer disclosure statement or the odometer section on the MCO when certifying mileage.

Did You Know?

Although the odometer disclosure statement says “printed name” the name can be printed by a computer or hand printed.

SPRING/SUMMER 2021 27

PRO TIP

embracing electronic

The eTitle system allows dealerships to process registration and titling paperwork more efficiently.

Before the statewide system for submitting new vehicle registration and titling was implemented, Iowans had largely been registering vehicles the same way for decades. But a brave new world began in August 2020 when, for the first time, all new car dealers in Iowa had the option to begin processing registration and titling paperwork electronically. “It is the future. That’s where it’s going to go,” said Jessi White, IADA Director of Dealer Services. White has led IADA’s involvement with the electronic registration and titling (ERT) program since 2018, working with dealers, counties, and the Iowa Department of Transportation to develop and improve the program.

28 IOWA AUTO DEALER

As of March 2021, 87 dealers have put more than 21,080 new vehicle transactions through the ERT system. Development has begun on a program that will eventually allow used vehicle transactions to go through the system, as well. Embracing ERT does mean change. “Is it more work at first? Yes,” said White. “It’s change. It changes how the title clerk has been doing it for so long. This is going to be different, but you’re going to find your time efficiencies in the system. You’ll find ways it’s better for you.” The Iowa Department of Transportation, which is the statewide authority for motor vehicle titling and registration, is pleased with the progress

of the ERT program so far. “We’re very much committed to working with IADA and with individual dealers and the counties to continue to enhance the system,” said Daniel Yeh, vehicle services manager at the DOT. Although the idea of an electronic registration and titling system has been in the works for more than a decade, it wasn’t always eagerly anticipated by all of the involved parties. But the launched product, which coincided with more socially distant and remote work due to the COVID-19 pandemic, has garnered praise from dealers and county treasurers alike. “The ease of using ERT is the best,” said Allison Hunt, a title clerk at Hummel’s

PRO TIP

Nissan in Urbandale. “Processing deals has been a breeze since we have started using electronic titles. Customers are getting their plates and registrations much quicker with less issues at the county level.” Heather Sherwood, a title clerk at C & S Car Co. in Waterloo agreed. “I love the new ERT system. The best part for me is the time it saves.” Dealerships should use ERT whenever possible, said Tracy Houdeshell, the motor vehicle deputy treasurer in the Linn County Treasurer’s office. “Electronic submission is utilized for business transactions across many industries and it’s exciting to be part of this movement in the motor vehicle world,” Houdeshell said. “I’m looking forward to the day when used cars will be remitted via ERT as well as new.” As ERT transactions become the norm for many dealers and with used car transactions due to come online once programming and testing is completed, it’s time to embrace best practices that will make full adoption of ERT easier.

Keep an open mind. Yes, switching to an electronic process means change. But change doesn’t have to be hard. “Learning the process wasn’t as hard as it may seem,” Hunt said. “The transition from paper to electronic was pretty much seamless.” And while your dealership may have honed the paper titling and registration processes over the years, now is the opportunity to establish efficient processes for electronic. “Electronic submission is becoming the norm, so my advice is to embrace the change,” said Houdeshell. Remember processing speeds will vary from county to county. While ERT standardizes much of the titling and registration process, different counties may have slightly different approaches to handling the work. “I believe it’s fair to mention that while ERT deals are faster to process, there are 99 counties of varying sizes/ populations, each with their own way of

managing workflow,” said Houdeshell. “Some counties may do ERT deals daily, some weekly, or some prioritize all title work based on the date received no matter how it was remitted... All of that to say that while an ERT deal can be processed faster, an ERT deal may or may not get processed before a paper deal. Dealers should still be setting the expectation to customers that it could take up to 45 days to receive plates or registration.” Be precise. Data must be carefully entered in order for the system to work. “It’s really not that different from putting together a deal on paper,” Yeh said. “But [dealers] need to remember that the system is going to want them to be precise and to really look at what they’re putting in.” For example, a dealership employee might accidentally enter in the invoice number from the top of the MCO instead of the MCO number. “Dealers should understand that when they’re looking at something and they’re considering

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SPRING/SUMMER 2021 29

PRO TIP

Advantages of ERT Speed It Up ERT is faster and more efficient than submitting paper deals, both for the dealership and for the county treasurers. Timely Perfection The lien is perfected when the title clerk clicks “Submit.” Direct Contact The plate and registration information is mailed directly to the customer, not the dealership— something many customers appreciate. Keep It With You Paperwork stays at the dealership, instead of being sent in the mail where it could be lost or damaged. No More Checks Save the cost of printing paper checks. ERT payments are processed by ACH. Quick Corrections Instead of mailing paperwork back and forth between the dealership and the county treasurer, errors can be corrected in the system, saving time and postage.

Learn More Contact IADA Director of Dealer Services Jessi White at jwhite@iada.com or 515.440.7611.

30 IOWA AUTO DEALER

why didn’t this deal go through, there are times when a human eye is going to be more forgiving on something than the computer. When the human processing it said ‘Oh, I understand, dealer, what you meant,’ the ERT system doesn’t have that kind of judgment capability,” Yeh said. But even if there are errors, those errors are easier to correct. “The entering of the vehicle and customer data that a county does for paper deals has already been done by the time it reaches the county’s queue, which saves time for county staff. When reviewing the deal, if/when any correction is needed, the time it takes a county to deny a deal, the dealer to correct the issue and remit back to the county, and the county to complete the transaction is much faster than returning by snail mail (which can be unpredictable) or for a dealer’s runner to take the work back to the office, get it corrected, bring it back, etc,” said Houdeshell. Include a fee estimator. “One request I’d make to dealers is to try and remember to include a fee estimator with ERT deals, whether that be from ARTS or hand-calculated. If there is a fee discrepancy, it’s easier to identify the itemized fees from what the dealer

collected and compare them to the motor vehicle system,” said Houdeshell. Watch for updates. As dealers, county treasurers, and the DOT have worked together on implementing ERT, opportunities to streamline processes have been discovered. Instead of 99 different answers to the same questions, the DOT and county treasurers are developing a single, consistent process. “Having been involved in partnership meetings among several counties, IADA, and the DOT, it seems ERT as a whole has uncovered some procedural inconsistencies and so I believe ERT has been a catalyst to streamline those across the state,” said Houdeshell. As processes are streamlined, dealers are being asked to comply with new procedures. IADA is working with the DOT and counties to develop and communicate these changes in procedure. Make sure you are on the distribution list for IADA’s Action Update newsletter in order to be kept up to date. (To add an email address to the distribution list, email bbungert@iada.com.)

PROUD SPONSOR OF THE

Iowa Automobile Dealers Association

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ODDS & ENDS

on the air

Roadworthy Drive brings an Iowa perspective to a national audience. The day Ken Chester’s dad bought a 1964 Mercury Comet is burned in his memory. He can see the brand new four door, with a turquoise exterior and white interior, like it was yesterday. He vividly recalls walking through the dealership to get to the car. It was one of the big moments in his life, the start of a lifelong love affair with the auto industry. “I’ve loved cars since I was a little boy,” Chester said. “I was getting thrown out of Chrysler lots because they didn’t want my bike scraping up the brand new ’70 models.” Today, that love has transformed into a nationally syndicated radio show, recorded in the state Chester has called home for more than two decades: Iowa. Chester has a long history as an automotive journalist in the Hawkeye State. Before he found his home in radio, he reviewed cars for the Des Moines Register. His reviews became nationally syndicated in 1995 and by 2000 were appearing in one of every ten daily papers in the country. The decline of the newspaper industry sparked an evolution for Chester as he looked for other ways to continue the work that he loved. In 2015, Chester launched his own local automotive radio show. It was on the air only ten months but paved the way for Roadworthy Drive, Chester’s current show, which launched in January 2017. Although it hasn’t always been easy, the program has grown, with two formats, a one-minute update and a two-hour program, available to stations. Today, approximately 25 stations

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carry the long-form program while 50 air the short updates. As his medium has evolved, so too has the focus of Chester’s journalism. Although Chester started his career simply reviewing cars, Roadworthy Drive is not just a car show. Instead, Chester considers it to be a mobility show. “We cover everything from walking to outer space,” Chester said. “If it moves or it moves you, we talk about it.” Car reviews remain part of Chester’s show, along with playing vintage car commercials. But other topics range from privacy and security issues (“Because honestly the motor vehicle most people own today is a rolling computer,” Chester said) to automotive history to energy. “You don’t have to be a gear nut, you don’t have to be a tech nut,” Chester said, noting Roadworthy Drive contains something for anyone interested in technology. “This technology is impacting what you do in the day, and it’s going to impact your future.” Chester hopes to continue building his show to become a premier destination for people interested in mobility and technology. “We want to let people know what’s coming, what they need to be aware of,” Chester said, “Introduce them to the technological trends that impact them directly. It’s not 20 years from now, it’s two to five years from now.”

Woodward & Associates, Inc.

1707 Clearwater Avenue ·P.O. Box 1584 ·Bloomington, IL 61702 (309) 662-8797 ·Fax (309) 662-9438 ·Email woodwardassoc@cpaauto.com ·http://www.cpaauto.com Providing service to Iowa dealerships and their related entities. We specialize in automobile dealers in the following areas:        

Certified Public Accountants

Memberships in:

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Dealership valuations Automobile dealer legal support Buy-Sells for dealerships LIFO inventory computations Financial statement analysis Corporation Income Tax returns Personal Income Tax returns CPA prepared financial statements Dealer estate planning Employee theft consulting Internal control studies and audits Profit consulting Training office managers/CFO’s 401K Audits

AUTOCPA Group The American Institute of Certified Public Accountants Licensed to practice in Iowa

Serving more than 250 Automobile Dealers throughout the United States

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