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AUTO DEALER NEWS CAR O LINA S IND E PE ND E NT AUT O M O B ILE D E ALE R S A S S O CIATI O N

JUNE/JULY 2013

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F E AT U R E S T O R Y

CRASH DATA RETRIEVAL (CDR) INSIDE u

• BENEFITS FOR MEMBERS • THE FOUNTAIN OF YOUTH • COMPLIANCE OVERDRIVE

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INSIDE u

04 State Executive’s Message 08 Data Speaks for Itself 10 The Fountain of Youth 16 Affordable Care Act Roadmap 22 Quality Data for Quality Leads 26 Washington Update 28 Compliance Overdrive

WHAT’S NEW

Thursday, June 27, starting at 6 p.m. PDT

LIVE BROADCAST FROM CAESARS PALACE

COUPON BOOKS ARE HERE! JOIN TODAY FOR $285.00 AND RECEIVE $11,000.00 IN AUCTION CASH. THESE COUPONS ARE GOOD AT ...

OVER 60 PARTICIPATING AUCTIONS The Carolinas Independent Automobile Dealers Association was organized in

1955 to CALL assist members in enhancing their reputation in the marketplace, gain JOIN TODAY.

political influence and provide opportunities to interact with and meet other dealersAutomobile for the purpose of sharing business and marketing The Carolinas Independent Dealers Association was organized in ideas. CIADA IS PUTTING in MONEY IN YOUR POCKET!!! 1955 to assist members enhancing their reputation in the marketplace, gain political influence and opportunities to interact with and we meet As provide a mature and long-standing Association, areother proud to maintain the ideWatch from any device and cheer for your state’s top dealer. dealers for the sharing business marketing ideas. als of and principles set and by the founders. But today, offer more…far more. Thepurpose Carolinas Independent Automobile Dealers Association waswe organized in With a fulltime inprofessional staff,reputation modern in technology and world 1955 to assist members enhancing their the marketplace, gain class educaAs a maturepolitical and long-standing Association, we become are proud maintain ideADVERTISERS INDEX tional programs, we have a to strong, effective and organizainfluence and provide opportunities to interact withthe and meetinfluential other The Carolinas Independent Automobile Dealers als and principles by the founders. today, weand offer more…far more.the independent, dealersset for thethat purpose of sharing marketing ideas. tion exists for But onebusiness reason only: To represent nonADESA...................................................21 Association was organized With a fulltime professional staff, modern technology and world class educafranchised automobile dealer! Alliance Inspection Management .......... 29 The Carolinas Independent Automobile Dealers Association was organized in in 1955 to assist tional programs, we haveand become a strong, effective and influential As amembers mature long-standing proud organizatoDIRECTOR maintain ide- in enhancing Ally........................................................19. PRESIDENT EXECUTIVE 1955 to assist in enhancing theirAssociation, reputation inwe theare marketplace, gain themembers als and principles set by the founders. But today, we offer more…far more. tion that exists for one reason only: To represent the independent, nontheir reputation in the Auto Use................................................24. MALCOLM SHEALOR JOHN BROWN political influence and provide opportunities to interact with and meet other ASHLEY PREFERRED AUTO staff, modern technology EXT 105 marketplace, gain political With a fulltime AutoManager...........................................7. franchised dealer! dealers forautomobile the purpose of professional sharing business and marketing ideas. and world class educaINC. influence and provide Carolina Auto Auction..... Inside Front Cover tionalGROUP programs, we MT. PLEASANT, SChave become a strong, effective and influential organizaopportunities to interact Charleston Auto Auction........... Back Cover tion that exists for one reason only: To represent the independent, non-and meet other with andPRESIDENT long-standing Association, we are proud to maintain the ideELECT dealer! Chase................................................... 26As a mature ANGEL LONG franchised automobile dealers for the purpose als and principles set by the founders. But today, we offer more…far more. MICHAEL DARROW DRIS ASSISTANT Computerized Vehicle Reg......................32 of sharing business and THE AUTO EXT 109 staff, modern technology and world class educamarketing ideas. DealerCenter.........................................14With a fulltime professional FINDERS INC. we haveNC become a strong, effective and influential organizaDealix....................................................13.tional programs,DURHAM, As a mature and longGoldStar GPS........................................ 23tion that exists for one reason only: To represent the independent, nonstanding Association, we NC VICE PRESIDENT dealer! Manheim.com........................................17franchised automobile CATHERINE NEELY are proud to maintain WILL DAVIS ADMINISTRATIVE Manheim Pennsylvania.............................5 the ideals and principles G & B AUTO SALES OF Carl Mischinski DIRECTOR John Brown Catherine Neely NextGear Capital......................................9 set by the founders. But LOUISBURG INC. Ext 109 Executive EXT Director 102 Ext 102 today, we offer more… Protective..............................................15 Ext 105 far more. With a fulltime STARS GPS............................................27 Carl VICE Mischinski SC PRESIDENTJohn Brown professional staff, modern Catherine Neely Sterling Credit Corporation.................... 11 LISA KLUTTZ Ext GODWIN 109 Executive Director Ext 102 LUKE technology and world class Ext 105 CUSTOMER SERVICE United Acceptance.................................25 GODWIN MOTORS INC. educational programs, we EXT 103 COLUMBIA, SCCarl Mischinski VAuto............................ Inside Back Cover have become a strong, John Brown Catherine Neely Ext 109 Executive Director Ext 102 Wolters Kluwer.......................................28 effective and influential Ext 105 National Quality Dealer of the Year Award

TUNE IN TO WWW.NIADA.TV OR WWW.NIADA.COM

(800) 432-4232

CIADA STAFF

EXECUTIVE COMMITTEE

Meet Our Professional Staff

Meet Our Professional Staff

Meet Our Professional Staff

Meet Our Professional Staff

OFFICE

P.O. BOX 1088 • HARRISBURG, NC 28075 PHONE: 704-455-2117 OR 1-800-432-4232 FAX: 704-455-6810 WWW.THECIADA.COM CIADA is a non-profit 501(c)6

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 2521 BROWN BLVD. ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM. The Carolinas Independent Automobile Dealers Association is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of CIADA or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2013 by NIADA Services, Inc. All rights reserved.

TREASURER DARLA BOOHER DEAL DEPOT, INC. GREER, SC Carl Mischinski

Krista Simmons Ext 109 Ext 103

Krista Simmons Ext 103

John Brown Jayne Harris Lisa Kluttz Executive Director Ext 111 Ext 107 Ext 105

SECRETARY Krista Simmons KIM BRADSHAW Ext 103 1ST NATIONS AUTO SALES BURLINGTON, N.C.

Lisa Kluttz Ext 107

Lisa Kluttz Ext 107 Catherine Neely Leslie Waslo Ext Ext102 110 Jayne Harris Ext 111

Jayne Harris

Leslie Waslo

Ext 111 JAYNE HARRIS Ext 110 CUSTOMER SERVICE EXT 110

organization that exists for one reason only: To represent the independent, non-franchised automobile dealer!

Leslie Waslo

Ext 110WASLO LESLIE DRIS ACCOUNTS MANAGER EXT 108

CHAIRMAN OF Jayne Harris Leslie Waslo Krista Simmons Kluttz THE BOARD Lisa Ext 111 Ext 110P.O. Box 1088 Ext 103 Ext 107 JULIA ROGERS TRACY MYERS Harrisburg, NC 28075 FRANK MYERS AUTO MAXX INC. Phone: 704-455-2117ACCOUNTING or 1-800-432-4232 EXT 101 WINSTON SALEM, NC P.O. Box 1088 Fax: 704-455-6810

CIADA is the only not for profit association that represents the independent automobile dealer in the Carolinas with a National affiliation.

Harrisburg, NC 28075 www.theciada.com Phone: 704-455-2117 or 1-800-432-4232 1088 Fax: 704-455-6810P.O. Box CIADA is a non-profit 501(c)6 Harrisburg, NC 28075 www.theciada.com Phone: 704-455-2117 or 1-800-432-4232 704-455-6810 CIADA is a non-profitFax: 501(c)6 www.theciada.com CIADA P.O. Box 1088 is a non-profit 501(c)6 Harrisburg, NC 28075 Phone: 704-455-2117 or 1-800-432-4232 Fax: 704-455-6810 www.theciada.com CIADA is a non-profit 501(c)6

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com

EDITORS

J ennifer Carman • jenniferc@niada.com Andy Friedlander • andy@niada.com

ART DIRECTOR

Christy Haynes • christy@niada.com

PRINTING Nieman Printing

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In addition to on-site classes, CIADA offers CETV on DVD and CE On-Line. Call 1-800-432-4232 for additional information or visit us at www.theciada.com. JUNE/JULY 2013

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ASSOCIATION

NEWS

More Value and Benefits for Members WORKING TO PROMOTE, EDUCATE AND HELP ADVANCE YOUR DEALERSHIP

Even though it seems the warm spring weather took forever to get to the Carolinas, the year also feels as though it’s flying by. Everyone at CIADA has been very busy, working to bring you more value for your membership dollar, including: u Record Savings with Auctions. New and renewing members will now get more than $11,000 in savings from member auctions. That’s right - the VIP Card valued at $1600 is now a thing of the past. Even if you attend only one auction, you will make money off your membership. u Savings at the Annual Convention. Bring a first-time attendee with you to the CIADA annual convention and you’ll both get a 30 percent discount on your hotel rooms at the Homestead. (First-time attendee must be a dealer. Discount only valid with the standard CIADA room rate of $180 and a minimum of two paid convention registrations and two 3-night reservations at The Homestead. Discount does not apply to taxes or the mandatory additional Resort Fee.)

leading recruiting and training organization. u Is Your Job Worth Going to Prison For? Presented by Jim Radgona, president of Dealer Compliance Consultants, Inc. u The Consummate Fixed Operations Expert Reveals What Works. Presented by Jim Bernardi, founder/president & CEO at The Bernardi Group. u Unfair Advantage: No turkeys, basketballs, keys, socket wrench sets, or gift cards – my job is to put people on your lot that want to buy cars. Presented by Troy “Turbo” Spring, president of Dealer World. u Give Them What They Want. Presented by Chris Costner, vice president of training at Phone Ninjas. u What Economy Are You Talking About? Presented by Tom Kontos, executive vice president of customer strategies and analytics at ADESA. u ObamaCare for the Independent Dealer. Presented by Anita Baker, managing partner for employee benefit plans at CliftonLarsonAllen.

u The 2013 Annual Meeting and Expo promises to be a landmark event, combining world-class education with the amenities of the historic Homestead Hotel. Annual Meeting and Expo Speaking of the 2013 Annual Convention and Expo, this year promises to be a landmark event, combining world-class education with the amenities of the historic Homestead Hotel. This year’s all-star lineup includes: u R U Doing BHPH Right? Presented by Chris Leedom, president of the Florida IADA and the Leedom Group – the premier consultancy organization specializing in used vehicle sales, special finance and Buy Here-Pay Here business. u Did You Hire Them Dead or Kill Them After You Got Them? Presented by Craig Lockard, founder and CEO of AutoMax – a

u No More Lines at the DMV. Title, registration and paperwork classes presented by DMV officials. All of this and more, including Ingram Walters, one of the most recognized names in the industry; NIADA president and North Carolina dealer Chris Martin; Amazon bestselling author and North Carolina dealer Tracy Myers; and “A Walkin’ Man’s Friend,” Steve Mathews. In addition, a host of other very successful dealers will be there to help you become a better and more profitable dealer. Top vendors will also be there, including our presenting sponsor Preferred Warranty, as well as CARFAX, STARS GPS, Wayne Reaves Software DMS and AutoUse. Speaking of

finance companies, we will assemble one of the largest groups of lenders to ever attend the CIADA Annual Expo, so stop worrying about how to get the next deal funded and learn from the experts. Quality Dealer of the Year Award Nominees The CIADA is seeking nominations for the Quality Dealer for the Carolinas, CIADA’s most prestigious award. Nomination and selection brings high honor to the individual and to the dealership the winner represents. Nominees serve as an inspiration and model for other independent dealers in the association. CIADA will spotlight several of our nominees in emails in the coming months. The winner will be showcased in a future issue of the CIADA magazine. Dealers who accept the nomination are asked to commit to attending the CIADA Annual Convention and Trade Show in August 2013 in order to be recognized. The winner of the Carolinas’ Quality Dealer of the Year must also be able to attend the NIADA Quality Dealer Awards banquet at NIADA’s Annual Convention & Expo in June 2014. (CIADA will fund a portion of the expenses associated with attending the national convention.) Deadline for nominations is fast approaching so call the CIADA office @ 704455-2117 to get the nomination form. Good luck! Annual Scholarship Nominations Each year CIADA has the opportunity to award a scholarship to a student in both North and South Carolina. Scholarship applicants must be a child or grandchild of a CIADA dealer member in good standing. Applicants must be full-time students enrolling or enrolled in a college, university, or business or trade school, and should submit a CIADA application form along with their appropriate transcript (high school or college), SAT or equivalent test scores, information on special interest and activities, and three letters of recommendation. The application form can be found on the CIADA website or by calling the office. Recalls As another member benefit, we are sending out recall notices from the NHTSA’s Office of Defects Investigation when we receive them. Don’t forget to check your inventory against the recall list prior to sale. Get Involved As your executive director I take every C O N T I N U E D O N PA G E 6

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ASSOCIATION

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opportunity to speak about how CIADA works to improve the reputation of the independent dealer and help members sell more cars and make more money. As the only non-profit organization focused solely on representing the independent automobile dealer in the Carolinas, we will continue to promote, educate and help advance your dealership by providing information relevant to your business and the industry; encourage a better understanding of your business within the Carolina economy and with legislators, regulators and policy makers; and protect, defend and promote the free enterprise system and your ability to make a profit. As a group, we should all be more comfortable talking about being successful business leaders; we don’t have to apologize for being successful. While I will

continue to do everything I can do as the executive director of CIADA to help make you successful, I also need you to continue investing in CIADA. By becoming a member or renewing your membership annually with CIADA, you have the opportunity to actually make money off your membership. CIADA does everything possible to help you be more profitable, including the ability for you to more than triple your membership investment with the new CIADA Auction Coupon Book. Members also have access to additional discounts, including discounted group or individual medical, dental, vision, life, auto and home insurance. Members and employees can select their own criteria and requirements, and approximately 40 insurance companies will present their best rates for the coverage requested. On behalf of CIADA, I thank you for your support and membership. If you are not a member, I invite you to join. Customers want to do business with those who are invested in their communities and who belong to local civic organizations and industry related trade groups. Join today and be part of our

NEWS

growing influence in the Carolinas. I’d like to close with a final reminder and invitation to come to The Homestead and be part of a fun weekend that will also help build your business. We kick things off at Thursday evening’s reception with North Carolina’s reality TV stars Ronnie and Amy from Lizard Lick. Be sure to bring your best lizard tall tales, which will be taped and presented to Ronnie. Who knows? Maybe we can get him to give one to his producers. There will be plenty to do with your family, too, including the thrills and spills of Mountain Rush, the outdoor pool with three 100-foot water slides and a 400-foot lazy river. The Homestead is also a hot spot for golfers, with three courses including the awardwinning Cascades Course and the historic Old Course, which boasts the nation’s oldest tee in continuous use. Now the resort is further broadening its appeal with the introduction of MiniCascades – an 18-hole miniature golf course. I look forward to seeing you all in August. Keeping you informed, JB

GIVING BACK

NIADA’s 2013 Convention & Expo offers the industry’s biggest and most diverse educational opportunity under one roof.

Charleston Auto Auction & Dealers Help Support The Ronald McDonald House CHARLESTON AUTO AUCTION HAS BEEN A PROUD SUPPORTER OF THE RONALD MCDONALD HOUSE FOR THE PAS T 10 YEARS.

On Friday, May 3, 2013, Charleston Auto Auction presented a check to the Ronald McDonald House of Charleston. For three straight weeks, Charleston Auto Auction held a 50/50 drawing to raise funds for this worthwhile foundation that helps seriously ill children and their families. “Some of the kindest and most generous dealers in the country attend our auction. This is confirmed anytime we raise money for the sick or less fortunate,” said Laura Taylor, general manager of Charleston Auto Auction. At the end of the promotion, Charleston Auto Auction matched all contributions collected for a grand total of $5,000. Charleston Auto Auction has been a proud supporter of the Ronald McDonald House for the past 10 years.

With our dynamic mixed panel format, you’ll hear advice and best practices from industry experts, as well as real-world perspectives from dealers who are in the trenches every day - just like you. Find out what’s happening in the regulatory landscape, explore new marketing opportunities, learn how to refocus your sales and operations, discover new avenues for dealer capital...and more. NIADA’s Convention & Expo is not only the largest event of its kind in the used car industry - it’s also the only one to offer live entertainment and a variety of fun networking opportunities.

RELAX POOLSIDE.

Traveling can be stressful and tiring. After check-in, relax with us poolside for the Cigars & Martinis mixer. Enjoy music, mixed beverages and a light bite to eat in a lush, tropical wonderland.

KICK THINGS OFF VEGAS STYLE.

Kick things off right at Monday’s Opening Gala...where a delicious array of food and a full bar await you. You won’t be able to stay in your seat as we pay tribute to rock legends Elton John, Billy Joel and Tina Turner in true Vegas style!

WIN BIG ON THE EXPO FLOOR.

Participate in our daily Expo scavenger hunt for a chance to win $500 or even $1000! Plus, check out the car we’ll be auctioning off at the end of the week.

MINGLE WITH THE BEST OF THE BEST.

Dine with us as we honor and celebrate the National Leadership and National Quality Dealer Award winners. And don’t forget to tell your friends back home to tune in for the live broadcast on NIADA.tv! All this and more….for a registration rate that’s lower than most other national conventions. We even offer discounted registration rates for spouses and children, plus discounts on hotel, airfare and ground transportation. For more information or to register online, visit www.niada.com and click on Events.

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COVER STORY

Data Speaks for Itself

C R A S H DATA R E T R I E VA L P R OV I D E S A C R U C I A L T O O L F O R T H E V E H I C L E R E M A R K E T I N G C O M M U N I T Y.

Crash data retrieval (CDR) is a proven tool that allows users the ability to image a vehicle’s airbag control module (ACM) and evaluate any “events” that might have been recorded. Those “events” include a list of data parameters that allow the user to determine if the vehicle has been in a crash or incurred some type of force to record data. The data can be used to make informed decisions on the quality and structural integrity of a vehicle being purchased or sold. All that is interesting. But what exactly is CDR? Most vehicles that have an airbag also have event data recorder (EDR) functionality. There is already an EDR in most production vehicles today. It is not something you need to install and is not an aftermarket product.

ARC-CSI Crash Conference: Visit www.arccsi.com to watch a video by Insurance Claims TV, filmed at the annual ARC-CSI Crash Conference in Las Vegas, showing real-world crash testing and data collection using the Crash Data Retrieval tool.

More than 115 million registered vehicles on the road today can be accessed and imaged using the Bosch CDR tool. Simply connect the CDR tool to the universal data port (diagnostic link connector or DLC) of the vehicle and run the CDR software program. The CDR tool then images any data stored and creates a PDF report of the findings. It’s the same tool used by auto manufacturers – the CDR tool currently supports select General Motors, Ford, Chrysler, Toyota/Lexus, Honda, Mazda, Suzuki, Fiat, Volvo and BMW vehicles. And thanks to a ruling by the National Highway Transportation Safety Administration, many more manufacturers are expected to be supported before long. In August 2006, the NHTSA published a final rule specifying uniform requirements for the accuracy, collection, storage, survivability and retrievability of onboard crash event data in passenger cars and other light vehicles equipped with EDRs.

The final rule was intended to standardize the data collected through EDRs so it could be put to the most effective future use. Vehicles manufactured on or after Sept. 1, 2012, that are equipped with an EDR and manufacturers of those vehicles must comply with the rule. Vehicles that are manufactured in two or more stages or are altered are not required to comply with the rule until Sept. 1, 2013. The airbag control module is where most EDR data is stored. However, EDR data or crash data can also be stored in the powertrain control module (PCM) or the rollover sensor module (ROS). The primary job of the ACM, PCM and ROS is to detect sudden changes in direction and/or rotation and, when appropriate, deploy restraint devices like airbags. The ACM and other modules use certain bits of information, including those from crash-sensing systems, seat beltrelated sensors and occupant detection systems, to decide whether and when to deploy airbags and other restraint system devices. When certain conditions are met, those modules can record the data associated with the sudden changes in direction and/ or rotation in a crash, which can later be imaged by the CDR tool. Data available to be collected depends on the year, make and model of the involved vehicle. The CDR tool is used by law enforcement, insurance companies, collision reconstructionists, fleet managers, auto manufacturers and government researchers. The next logical question is: How does the auto remarketer benefit from using the technology? Auto remarketers need to gather all the pertinent information available in their evaluation of the vehicles they are considering for purchase or resale. The CDR tool provides an easy way to determine if there are any existing events stored in the vehicle, providing greater confidence for the buyer and seller. It can also help determine if some repairs were performed correctly. “In today’s digital age, it is best to let the data speak for itself and not rely solely on seller statements, assumed to be true,” Crash Data Group president Scott Baker said. “This tool will help make quick, accurate, decisions on the vehicle in question.” For example, a vehicle owner presents a vehicle for sale and says it was in a crash and the airbags deployed, but the vehicle

has been repaired and the airbags replaced. Using the CDR tool, the vehicle can be imaged. If the report shows a “deployment event,” it means while the airbags were reported to be replaced, the airbag control module was not and is locked. And that means the airbags will not deploy again. If that is the case, you have to question whether the airbags were actually replaced or if there is just an empty reservoir. We have all heard stories of airbags that really weren’t replaced. In addition, since the data is still there the report will also show information such as how fast the vehicle was going prior to impact and the severity of the crash. You might even be able to assess potential frame damage. Of course, if you image the vehicle and there are no events and everything checks out fine, you’ll have greater confidence that a lawsuit won’t come back to haunt you. Diagnostic Link Connector

Auto remarketers depend heavily on sellers to verify damage-free vehicles at end of lease or for sale. To properly investigate and assess potential damage to a vehicle, the buyer needs to have the peace of mind that the vehicle was not involved in an accident. It also provides a great service to the remarketer and ultimate end buyer, who depend on a fair assessment of the vehicle’s history to avoid significant loss. “Industry adoption of the technology will be critical as we move further into the digital future of vehicle due diligence,” Baker said. “CDR technology is here to stay, and vehicle remarketers should be aware that the technology will help them achieve their goals while maintaining a higher level of integrity.” For more information about CDR, call Crash Data Group at 1-800-280-7940 or visit www.cdr-system.com.

BY CLIFFORD J. SMITH

CLIFFORD J. SMITH IS CDR NATIONAL SALES AND EDUCATION DIRECTOR FOR CRASH DATA GROUP, THE EXCLUSIVE DISTRIBUTOR OF THE BOSCH CRASH DATA RETRIEVAL PRODUCT LINE IN THE UNITED STATES. HE CAN BE REACHED AT CSMITH@ CRASHDATAGROUP.COM OR 1-800-280-7940, EXT.105.

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MARKETING MATTERS

The Fountain of Youth E M B R AC I N G T E C H N O LO GY CA N A D D L I F E T O YO U R D E A L E R S H I P A S T H E M I L L E N N I A L G E N E R AT I O N B E C O M E S A F O R C E I N T H E M A R K E T

Over the past few years, there’s been a profound change in the way people communicate. With the advent of easy-to-use personal computers, smartphones, tablets and laptops, people now get their news differently. The “millennial” generation, which came of age during this time of communication change, has been most affected. They keep in touch with their friends differently. And they shop for cars differently. So the question for dealers is how to reach out to that new generation and sell them cars. A Growing Market Millennial buyers represent 15 percent of the market, and rising. Ignore them at your peril. Jon Osborn, research director for J.D. Power and Associates, said millennial buyers – those between the ages of 18 and 35 – are entering the prime carbuying age range. And in one way they’re not that different from buyers in the same age range 20 years ago. “They’re similar in that buying a car is a big purchase for them in terms of money,” Osborn said. “It might be the biggest purchase they’ve made in their lives up to that time. “What’s different is that the millennials grew up in the digital age. Now everyone uses computers or tablets or smartphones.” Sure it’s basic, but dealers sometimes forget that to get the attention of millennial buyers, dealers must have an Internet presence. That means having a website and an app for smartphones, as well as being on third-party sites like AutoTrader.com or Cars.com. In fact, just having a website is no longer enough. An increasing number of people – especially young people – are accessing the web with a mobile device rather than a computer. Looking up information on a web page using a tablet or a smartphone is different than using a computer. The computer screen is bigger and web pages tend to be designed to take advantage of that size. To reach smartphone or tablet users, dealers might think of creating an app or a mobile site designed to fit on smartphones and tablets. “If you create a mobile site, remember people will expect the same

kind of information you have on your website,” Osborn said. “So how people use the Internet has to be taken into consideration when designing pages. Dealers should be using the same technology as consumers. Having a tablet helps dealers, too.” Tablets are portable and can be used to look up information while a salesperson is with a customer at a car. Now the salesperson doesn’t have to keep walking back to the showroom to look up information. The younger generation is used to shopping and buying with the click of a button, Osborn said. They don’t believe buying a car should be different than any other kind of shopping. And they want the experience to be fun. Osborn noted it’s important to provide buyers with as much information as possible up front, so customers won’t have to spend five hours in a dealership learning about F&I options. What They’re Looking For Despite numerous reports to the contrary, yes, young people are buying cars, said Scott Painter, CEO and founder of TrueCar. But if you want to sell them one, you’ll have to do it on their terms. “They are buying cars,” Painter said, “but they are doing it differently. There’s been a definite shift with millennial buyers. And it’s different from 20 years ago. Millennials are rewriting the rules. What used to work even as recently as five years ago, doesn’t work now.” Dealers looking to sell to millennials have to recognize certain truths, Painter said. First, shoppers are used to getting a lot of information and want to be in control of the sales process. That’s very different from the way dealers used to operate. In the old days, some dealers hesitated even to give the price of a vehicle. Instead, they would talk about payments and schedules. That tactic doesn’t work anymore. “Today’s millennial buyers have access to information and expect the cars they buy to work,” Painter said. “A ‘lemon’ of a car is something they see in old movies.” That means dealers have to buy vehicles that will “intrigue” the millennial buyer, Painter said. Reliability is just assumed, so it’s not much of selling point anymore. Dealers looking to sell to younger buyers have to pay attention to

things like design. And that isn’t all that’s changed. Conventional wisdom used to be that buyers entered the car market 30 to 60 days before entering a dealership’s showroom. Because buyers now are more social over the Internet, they might start asking advice or reading blogs up to a year before they hit a dealership. “When we launched Cars Direct in 1998,” Painter said, “only five percent of consumers were using the Internet to help buy a car. That meant when someone did go on the Internet, they were definitely in the market. Now everyone looks at cars online, and a lot of people just do it for fun. Visiting a site doesn’t mean someone is in the market for a car at that particular moment.” Still, there are ways dealers can tell if someone visiting their website is serious about buying a car now, Painter said. The first is if that person asks about financing. The second is if that person has totaled his car in an accident – usually that person has an insurance check and needs to buy right away. A third is if the person checking the site starts asking questions about price instead of features and product information. “Millennial buyers want to know prices before they will show up at your lot,” Painter said. “But when they visit your store, they are much more likely to buy. They’ve done their homework and like what they saw on their smartphone or tablet or computer.” The fear of millennial buyers is that they will get ripped off by a slick dealer. So dealers must be up front about their prices without giving away the store, Painter said. “You have to have a competitive price for your vehicles, but dealers also have to be able to make money,” Painter said. “That means dealers must believe in data. Data is what differentiates one used vehicle from another. If a dealer can show, through data, why one Chevy Tahoe costs $500 more than another, that assures the customer. The motto of the millennial buyer is, ‘In data we trust.’ ” Painter said his company quantifies how many of a particular model are for sale. TrueCar goes online, finds all the data on Tahoes for sale and finds out what the mileage ranges and prices are. Now the dealer can demonstrate with data collected by a neutral party what the price range of a particular vehicle is. The C O N T I N U E D O N PA G E 1 2

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MARKETING MATTERS

C O N T I N U E D F R O M PA G E 1 0

customer sees he is being treated fairly and feels better about the sale. Painter warned dealers, though, that having national pricing information shouldn’t be a race to the bottom. Dealers have to make money, and constantly undercutting each other’s prices means no one can make money. “We used to have an ‘easy’ button on our pages,” Painter said. “Dealers used it to get the lowest prices so they could price lower. No one was making money so we disabled it. But through that process we learned buyers aren’t looking for the absolute lowest prices. They just want a fair deal. By showing data transparently, you don’t have to give away the store.” The trick, Painter said, is to engage the millennial buyer with transparent data to earn trust. Once a dealer earns trust, making a sale becomes much easier. Socializing Social media can be a tool for marketing and not just a place to write about what you had for dinner. “Today’s buyer visits all the pages,” Osborn explained. “They are very big on things like ratings and reviews. They are big on referrals. “Millennials are often first-time buyers and are nervous about buying a car, so word of mouth is very important, and that’s outside a dealer’s advertising plan. So dealers should try to subtly encourage people who enjoyed buying a car from their lot to share their experiences on their Facebook page or to write a review on a site like Yelp.” Rand Stone, sales manager of Next Gen Motors in Clear Lake, Wis., said his dealership just started its own Facebook page. “We finally decided it was a tool that could be used for marketing,” Stone said. “I don’t know if I can say someone bought a car here as a direct result of something they saw on Facebook, but it’s exposure and telling people who you are.” Stone believes Facebook is part of a conversation that gives young people the sense they have their own dealership. He is not afraid of social media and what people will say about the business. “There are always people who want to tear you down,” Stone said. “On the Internet they are known as trolls. But I am confident that our customers are smart enough sift through the nonsense and see what are genuine reviews and what are not.” Robert Stewart, co-owner of Stewart Auto Group in Pataskala, Ohio, has some advice for dealers: Don’t be afraid of social media. Embrace it. Use it and encourage employees to use it.

Stewart and his brother and father, both named Don, operate two usedcar lots. In addition, Stewart is owner of Social Media Chapter.com, which specializes in helping car dealerships and other small businesses use social media. “Social media is not just Facebook,” Stewart said. “If you’re going to use social media you have to have people on hand to respond to comments. That’s where we come in.” What’s important to remember, Stewart said, is that social media is active and interactive. It’s a conversation using new technology. So if someone comments about your dealership on Facebook or another site, you have to be ready to engage in a conversation. And if you’re using social media to reach out to people, make sure your staff knows what you’re saying. It does no one any good to promise a $15.99 oil change on Facebook and not tell the sales staff. If they don’t know about something, they can’t answer questions about the promotion, such as whether it applies to synthetic oil. “The biggest problem I see with dealers is that they don’t use social media themselves and actually see it as a distraction,” Stewart said. “They don’t see it as a tool. So they won’t let salespeople visit their Facebook page or make tweets during business hours.” That’s a mistake, Stewart said. As long as salespeople are following some simple rules, being on a social media site during the day can pay off. “I say let them go on their social media page,” Stewart said. “As long as they list where they work and what they do, they should be allowed to communicate with people. If someone is looking for a car and is ‘friends’ with a salesperson, that salesperson’s social media page can be very helpful.” Of course, salespeople must realize their pages are a business tool as well as a personal page, so they shouldn’t post anything that would reflect badly on the dealership. “Dealers tell me they worry about that,” Stewart said. “I say if they don’t trust the judgment of their staff, then maybe those people shouldn’t be working for them. I also point out that when someone walks into a showroom, usually they find half the sales staff just sitting around.” Those people could, instead, be online looking for leads. Stewart said dealers have to realize that while many social media sites are available to users at little to no cost, using social media isn’t free. Someone has to update the pages, read the comments and generally stay on top of things. That person should have some expertise in social media, and dealers should expect to pay for that expertise.

“The biggest mistake I see is that dealers aren’t everywhere that matters,” Stewart said. “Everywhere includes the Internet, but it also includes print and radio and billboards and fliers. Dealers need to create an omnipresence. “The biggest mistake I see is that dealers aren’t everywhere that matters,” Stewart said. “Everywhere includes the Internet, but it also includes print and radio and billboards and fliers. Dealers need to create an omnipresence. “Social media isn’t just Facebook, either. There’s Google listings, Yahoo listings, Bing. These are the new yellow pages and dealers need to understand how they work.” For example, Stewart said, it’s possible to give a verbal command to a smartphone asking to find a local car dealership. If the dealer is listed right on the search engine and the consumer has the right map app, directions to the dealership will pop right up. “You must register your business with search engines,” Stewart said. “And don’t be afraid of technology. It’s now possible for people with webcams to converse via the Internet. Looking at someone while you’re talking to them is very effective and builds trust. So check out Skype or Google Live Chat.” Ultimately, a dealer must lead from the front. If the dealership’s owner doesn’t use or understand social media, it can discourage his employees from using it. And that can ultimately cost him when it comes to attracting young buyers. Millennials Have Arrived The millennial generation is here, and technology is its language. Young buyers expect information, and they have more ways to get it than ever before. To turn those young consumers into buyers, dealers have to make that work for them. Provide the information they want on all platforms, become a part of the conversation – give those potential buyers a reason to trust you. The millennials are just beginning to get into the market, and they’re bringing their smartphones and Facebook pages with them. Dealerships that fail to embrace technology risk missing out on tools that will help them reach out to that growing category of consumers who came of age in the digital era.

BY JIM STICKFORD

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INDUSTRY NEWS

Honda Accord Most Stolen Car of 2012

The Honda Accord ranked as the most stolen – and most recovered – vehicle in 2012, according to an annual report compiled by theft recovery system provider LoJack. The Accord edged out the Honda Civic and the Toyota Camry for the “honor” of being stolen the most, according to the report, which tracks vehicles equipped with LoJack systems. The report also cited FBI statistics showing a car is stolen every 44 seconds on average, and said the national recovery rate hit a 30-year low of 52 percent – LoJack boasts a 94 percent recovery rate. The report said the most commonly stolen car color was black and the least common was blue. California, Texas, Florida, New York and New Jersey were the states with the most thefts. The report is available at www.autotheftblog.com.

LEGAL UPDATE

CPO Sales Are Up CONSUMERS RESPOND TO RELIABILIT Y AND E XTENDED WARRANTIES

Certified pre-owned (CPO) vehicles are more popular than ever, according to a new report from Edmunds.com. The report, which evaluates the landscape of America’s used car market through the first quarter of 2013, found that CPO sales were up 6.2 percent over the first three months of 2012, and that the segment’s 21 percent share of all used car sales by franchise dealers in the first quarter of 2013 was the highest it has ever been. “Car manufacturers love certified pre-owned programs because they attract new customers, strengthen loyalty and help to move off-lease inventory,” commented Edmunds.com Director of Used Car Analysis Joe Spina. “We can expect even higher levels of CPO sales later this year as dealers absorb a growing influx of lease returns.” While certified pre-owned cars are generally priced higher than other used cars, they appeal to shoppers because they’re often deemed as more reliable and they come with an extended warranty, which alleviates the buyer’s fear of inheriting someone else’s problems. Other highlights in the report include: • There were 9.7 million used vehicle sales in the U.S. in the first quarter, down 6.2 percent from the first quarter of 2012. • Used car retail prices at franchise dealerships ($15,793, on average) remained relatively flat, up 0.5% year over year. • Subaru vehicles sold faster at franchise dealerships than any other used car brand in the first quarter; Volvo’s used sales were the slowest. Edmunds.com expects a typical seasonal price pattern for used cars this year: an increase in the spring, stability through early summer months, and then a decrease thereafter. To view Edmunds.com’s 2013 1Q Used Car Market report, visit http://www.edmunds.com/ industry-center/data/used-carmarket-quarterly-report.html. For information about NIADA’s certified pre-owned program, visit www.niadacertified.com.

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F E AT U R E S T O R Y

THE AFFORDABLE CARE ACT ROADMAP:

W H AT T O E X P E C T F O R Y O U R S M A L L B U S I N E S S

A S W I T H A N Y M A J O R C H A N G E I N P O L I C Y, T H E P R O S P E C T O F W H AT T H E A C A E N TA I L S C A N B E O V E R W H E L M I N G F O R S M A L L B U S I N E S S OWNERS WITH LIMITED RESOURCES.

The Patient Protection and Affordable Care Act (ACA), dubbed “Obamacare” by many, was signed into law on March 23, 2010, with the intent to reform the health care industry and provide affordable health coverage for more than 40 million uninsured Americans. Under the ACA, every legal resident of the United States who is not already covered by Medicare or an employerprovided health care plan will be eligible to purchase coverage through an online health insurance exchange. Today, smaller businesses are much less likely to offer health coverage to their employees than larger companies. In 2011, according to the Kaiser Family Foundation, 57 percent of small businesses with 50 or fewer workers offered health benefits to employees, compared to 92 percent of businesses with 51 to 100 workers, and 97 percent of businesses with 101 or more workers. Because of that, some provisions of the ACA will have a larger effect on small businesses, and their employees and families. Expectations of the impact on small businesses are mixed. Some anticipate employees’ hours being cut, costs being passed on to consumers or shareholders, a reduction in hiring and more out-of-pocket costs for larger businesses. Others see benefits for small businesses and their employees. For example, the ACA rewards employees at small companies by subsidizing their purchase of health insurance. According to Casey B. Mulligan, economics professor at the University of Chicago, since those employees can’t take the subsidies with them if they move to a large company, they are “in effect, subsidies to the small businesses themselves, helping them compete more cheaply in the market for employees.” Some provisions of the ACA are already in effect. Others will begin in 2014 and beyond. As with any major change in policy, the prospect of what the ACA entails can be overwhelming for small business owners

with limited resources. So what does the ACA mean for your business? PLANNING YOUR ROUTE: DETERMINE THE SIZE OF YOUR ORGANIZATION The ACA specifically exempts small businesses with fewer than 50 fulltime equivalent (FTE) employees. By some estimates, that means more than 90 percent of businesses will be not be subject to the Employer Shared Responsibility provisions of the ACA. Before you can begin to assess the impact on your business you must determine the size of your organization. Sounds simple, right? Well, not entirely. The ACA defines a full-time employee as an individual working at least 30 hours per week on average. However, for the purposes of calculating your organization’s size, you can’t simply count the number of full-time employees – part-time employees are also factored into the equation. In essence, you have to add up the hours of part-time employees. So, for example, 100 half-time employees equates to 50 FTEs. Similarly, 40 full-time and 20 half-time employees would also be considered equivalent to 50 FTEs. If you own more than one company, in most cases, that will also be taken into account. It’s a bit like an umbrella: If an entrepreneur owns five businesses and each business has 10 FTEs, together they are considered a large business with 50 FTEs, and all five businesses are subject to the Employer Shared Responsibility provisions – even though individually they would be exempt. Obviously, determining FTE counts will be more complex for some businesses than for others. Any businesses that fall close to the 50-employee threshold would be best served by working closely with their accountants to ensure counts are accurate rather than risk penalties for inadvertently being over the threshold. While the Employer Shared Responsibility provisions do not take effect until 2014, the provisions will be applied based on employee counts from 2013, so it’s important for businesses to start planning now.

OUTSIDE YOUR FRONT DOOR: WHAT’S ALREADY IN PLACE FOR 2013 Several provisions of the ACA are already in place, or will become effective in 2013. Those of most importance to small businesses include: Grandfathered group plans: Small businesses with insurance plans that were in place prior to March 23, 2010 may keep their current plan. According to the Kaiser Family Foundation, approximately 72 percent of businesses with 100 or fewer workers had at least one plan grandfathered under the ACA in 2011. Those plans are subject to fewer requirements when it comes to coverage levels and access. Under the grandfather provision, companies are even able to change insurance carriers, provided employee costs and benefits remain mostly the same. Grants for wellness programs: Certain small businesses that did not have a workplace wellness program in effect as of March 2010 are eligible for grants to start one. Additional Medicare tax: The additional medicare tax is a 0.9 percent tax increase that applies to an individual’s wages, Railroad Retirement Tax Act compensation and self-employment income above a threshold amount based on the individual’s filing status. Small businesses making less than $250,000 in taxable profit are exempt from the tax increase. Small Business Health Care Tax Credit, phase one: The Small Business Health Care Tax Credit helps certain small businesses and small tax-exempt organizations – particularly those with lowto moderate-income employees – afford the cost of covering their employees. From 2010 through 2013, if your company has fewer than 25 FTEs with average annual wages of less than $50,000 and you purchase health insurance for your employees, you might be eligible to receive a credit of up to 35 percent of your contribution toward employee health insurance premiums. Note: In March 2013, as a result of sequestration provisions, the refundable C O N T I N U E D O N PA G E 1 8

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FEATURE STORY

C O N T I N U E D F R O M PA G E 1 6

2014

portion of the Small Business Health Care Tax Credit for certain organizations was decreased by 8.7 percent pending the end of the fiscal year or intervening Congressional action. Flexible spending account (FSA) limits: While most small businesses don’t provide FSAs for their employees, those that do should note the new employee contribution cap of $2,500, effective in 2013. W-2 reporting: The ACA requires employers to report the cost of coverage under an employer-sponsored group health plan on an employee’s Form W-2. Many employers are eligible for transition relief for tax year 2012 and beyond, until the IRS issues final guidance for that reporting requirement. The amount reported does not affect tax liability, as the value of the employer-excludible contribution to health coverage continues to be excludible from an employee’s income and is not taxable. The reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers.

Businesses with less than 50 FTEs are exempt from the Employer Shared Responsibility provisions of the ACA. If you have more than 50 FTEs, here’s a quick checklist for 2014. •Keep track of full-time and full-time equivalent employee counts. •Offer health coverage to at least 95 percent of full-time employees no later than 90 days after start of employment. •Ensure employee health coverage meets affordability standards. For employee-only coverage, premiums that are no more than 9.5 percent of total wages as stated on the employee’s W-2. •Ensure employee health coverage meets the minimum coverage threshold. It must cover at least 60 percent of an employee’s medical costs; the balance can be made up of deductibles, co-pays, etc. •Provide verification of health coverage.

AROUND THE CORNER: WHAT TO EXPECT IN 2014 Insurance market changes: The health insurance market will undergo several reforms in 2014. • Plans must guarantee availability and renewal of coverage regardless of health status. • Young adults may remain on their parents’ insurance until age 26.

• Premium rating based on health status will be prohibited. • Adults may not be excluded from a plan because of a pre-existing condition. • Plans with a medical loss ratio of less than 80 percent will be required to give rebates to enrollees. Open enrollment for small business health insurance exchanges: Businesses with fewer than 50 FTEs (or 100 FTEs, in select states) will be able to purchase insurance through the Small Business Health Options Program (SHOP) exchange, which is designed to provide an easier way to compare prices and purchase plans. Employers can also purchase insurance outside of the exchange. Employer Shared Responsibility: Employers with more than 50 FTEs will be required to offer health coverage to their full-time employees and are subject to the Employer Shared Responsibility provisions. Those employers will likely be liable for financial penalties if any of their fulltime employees receives a tax credit to help pay for coverage on an exchange because: • The employer doesn’t offer health coverage. • The employer offers health coverage to less than 95 percent of its full-time employees, and as such a full-time employee wasn’t offered coverage. • The health coverage offered by the employer isn’t affordable. • The health coverage offered by the employer isn’t adequate. Remember, if you’re a small business with less than 50 FTEs or an employer who offers adequate and affordable health coverage, you will not be subject to the Employer Shared Responsibility provisions. Small Business Health Care Tax Credit, phase two: Small businesses with fewer than 25 FTEs that purchase insurance through the SHOP exchange can receive a tax credit for up to 50 percent of their contribution toward insurance premiums. Tax-exempt small businesses can receive a credit of 35 percent. THE LONG HAUL: 2015 AND BEYOND Employer Shared Responsibility payments: Employer Shared Responsibility liability for 2014 will begin being assessed in 2015. The IRS will contact employers to inform them of any potential liability and provide them an opportunity to respond before liability is assessed or notice and demand for payment is made. It is important to note that while part-time employees factor into the

determination of employer size, there is no penalty for not offering coverage to part-time employees. So if an employer with 40 full-time and 20 half-time employees fails to provide health coverage and is assessed the Employer Shared Responsibility payment, the amount due would be $2,000 times 10 employees – 40 full-time employees minus the 30-employee exclusion – or $20,000. Additional ACA provisions scheduled for 2015 and beyond include: • E xpanding the parameters of employer-provided health care to include dependents. • Auto-enrollment for companies with more than 200 employees. • Implementation of antidiscrimination provisions, which would prevent employers from offering different packages to employees based on seniority, job title/classification, compensation level or race/gender. • Choice of health plans for small business employees. • Ability for all businesses with 100 or fewer FTEs to purchase insurance through the SHOP exchange (effective in 2016). • Ability for businesses with more than 100 FTEs to purchase insurance through the SHOP exchange (effective in 2017). LOST? WHEN IN DOUBT, ASK FOR DIRECTIONS The ACA represents a major change in the way many businesses operate, and there are more than a few gray areas, so small businesses might find themselves with more questions than answers. Your best bet is to maintain a healthy relationship with your advisors: bankers, accountants, lawyers and association executives and partners. They’ll help keep you in the loop on any major changes that take effect and help you adjust your course as needed to ensure you don’t encounter any hazards along the way. Auctions and dealers looking for additional information regarding the ACA can view an online presentation developed by NAAA and the National Federation for Independent Business. Visit http://www. naaa.com/pages/naaa_events/events.html for more. Through December, National Independent Automobile Dealers Association (NIADA) members can also purchase a health insurance plan and lock in the plan and rate until the end of 2014. By locking in your plan today, you could save thousands in 2014. Visit NIADAHealthPlans.com or call 888308-9340 for additional information. Not a member? Visit www.niada.com today!

BY NIADA STAFF FROM INFORMATION PROVIDED BY NAAA

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INDUSTRY NEWS

JOIN US!

Five Win Twice in Dealers Choice Awards Manheim auctions, AutoTrader.com, CNA National, Dealer.com and eBizAutos each earned top honors in two categories as Auto Dealer Monthly announced its annual Dealer Choice Awards. The winners are selected from a nationwide survey of dealers judging industry providers in 27 categories, six of which were new in 2013. Dealers rated providers on their products or services, customer support and service, value and whether they would recommend the provider to others. Manheim was named the top traditional auction and online auction, AutoTrader took first among new and used vehicle Internet lead providers, CNA National was voted best in the service contract provider and service contract reinsurance categories, Dealer. com led the way in website design and digital marketing, and eBizAutos won for online inventory management and mobile media. Other winners included vAuto, which won for the third consecutive year for inventory management; Reynolds and Reynolds, which edged out Dealertrack Technologies in the DMS category; and Digital Air Strike in the new reputation management category.

INDUSTRY NEWS

NIADA CERTIFIED MASTER DEALER® CERTIFIED MASTER DEALER® (CMD) training positions you to take your success to the next level. The CMD designation serves as recognition of your dedication to the industry, and of your proven record for stability, reliability, and ethical business practices. THE CERTIFIED MASTER DEALER® program was developed in 2001, in collaboration with Northwood University, to help dealers manage and grow their businesses. Since then, it has grown into one of the industry’s most respected training programs. Dealers who attend this training are committed to the industry, support ethical business standards and practices, and are leaders in their communities. They bring a wide range of experience to each class, and leave with new strategies for analyzing their business practices and increasing their bottom line. Instruction is provided by Joe Lescota, NIADA Director of Dealer Development and former retail automotive executive with more than 25 years of frontline dealership, selling management and training experience.

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MARKETING MATTERS

A Case Study for Success WHEN LOOKING AT QUALIT Y OF LEADS, DEALERS NEED TO FIRS T LOOK AT THE QUALIT Y OF THEIR PROCESSES TO HANDLE THEM

One look around today’s automotive retail marketplace reveals some fascinating changes that have taken place over the last five to seven years. There are fewer franchise dealerships, and some former franchises have transitioned to become independent dealers. Consumers are more educated than ever, conducting hours of research online before ever stepping into a dealership. More consumers are keeping the vehicles longer, which is contributing to greater competition for pre-owned vehicles in many markets. So how do you compete? For independent dealers, the Internet is the ultimate equalizer to compete with larger franchise dealers. So having a strategic plan for how you showcase vehicles, connect with consumers and uncover more sales opportunities needs to be top priority. Where you showcase your vehicles is just as important as how. That can be a confusing decision as you look at various third-party sites and advertisers. Most dealers have embraced the concept of generating exposure and interest on the Internet via solo third-party car-shopping sites and larger third-party network sites, or even driving traffic to their own websites via SEO and SEM programs. All of those achieve the goal of generating leads. But when it comes to really “working” the leads, they fall short. A 2013 Pied Piper Management study discovered dealers are doing a better, more effective job of handling Internet leads, but there is still more to be done. According to the study, mishandling a lead happens when dealerships send generic responses to customers via email that do not answer their specific questions. Another issue is dealers being understaffed, making it difficult to get back to online customers quickly. Not responding is a major snub to your customer. As more car shoppers become online shoppers, the study shows dealerships with effective strategies to respond quickly and send personalized responses that answer customers’ specific inquiries ultimately sell more cars – well, duh! While it’s easy to say, “Respond better and answer questions faster,” the reality is it’s not that simple to attract online shoppers and entice them to complete the contact forms on various websites,

including your own. Winning more online customers actually begins much earlier in the sales and marketing process. When done effectively, using the Internet not only helps you compete, it can actually become the core of your business. Case Study: How Internet Leads Help a Pennsylvania Dealership Succeed in Today’s Market Devy Auto Park is a fixture in its Freeport, Pa., community. Since opening in 1923 – it moved to its present location in 1953 – Devy Auto Park has seen its share of evolution and revolution in the automotive retail industry. To compete in 2013, Devy Auto Park transformed from a longtime Chevy franchise dealership to a premier independent dealership. Most of Devy’s customers are Internetbased, and many travel from several hours away to do business with the dealership. A few key strategies have helped Devy attract and retain so many online customers, particularly those who see the value in traveling to buy a car from Devy. Best practice 1: Effective online merchandising. Imagine your physical showroom. Attractive, well-placed vehicles tempt shoppers to stop in, have a look and “kick the tires.” Now imagine your online showroom. The first key to effectively winning online customers is to tempt them into your online showroom. Plenty of photographs, sizzling descriptions and virtual tours all mimic a physical showroom and go a long way toward attracting customers. But your physical showroom doesn’t stand on its own. You advertise in a variety of media to let potential customers know not only what vehicles you have, but where they can find you and how they can contact you. The same approach applies to your online showroom. Effective online merchandising is definitely about having a great website to showcase your vehicles, but it’s equally important to draw customers from a strategic online marketing mix that includes a variety of third-party websites. Today’s online shoppers spend a significant amount of time researching to find the perfect vehicle across many websites. Shoppers’ searches are rather organic, looking at dozens of vehicles, arriving at dealers’ websites and then

sorting through the vehicles there. Great merchandising on both your website and your third-party sites is absolutely critical. Best practice 2: Great vehicles backed up with a warranty and vehicle history report. Whereas traditional car shoppers can literally kick the tires in your physical showroom, online customers don’t have that same luxury. But the advice is the same for both groups of shoppers. Dealerships should work hard to recondition vehicles really well, warranty them and provide vehicle history reports. The vehicle history report actually benefits both the customer and the dealership. Online shoppers are savvy enough to demand the reports. They want the opportunity to know whether the vehicle is right for them or not. And by providing the reports up front, the dealership saves a lot of time on the back end. That is, the dealership’s Internet manager would devote a lot of time to answering inquiries that can be resolved with a history report. Additionally, the reports can boost the confidence in and the credibility of the vehicle and your dealership. Best practice 3: Establish a process for responding to and following up with customers. Anyone who’s coaching you on handling Internet leads will tell you to respond to customer inquiries quickly. What’s more important than a quick response, however, is the quality of the response. The Pied Piper researchers used mystery shoppers to measure how quickly and how well Internet managers responded to customer inquiries. The mystery shoppers provided a phone number and asked a question about a vehicle, then waited. For the purposes of the study, it wasn’t enough to receive a generic auto-response. Researchers would “only stop the clock if [the dealerships] answer our question or send a second response,” Pied Piper president Fran O’Hagen explained. Devy Auto Park takes that level of response one step further. All Internet leads go into the dealership’s customer relationship management (CRM) tool, which generates automatic but customizable email responses for customer inquiries. Devy can customize the email responder with the customer’s name, and the CRM will populate vehicle information, such as which vehicle the customer asked about and whether it’s still available. C O N T I N U E D O N PA G E 2 4

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THE KEY

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tempt them into your online showroom.

MARKETING MATTERS

If a customer asks a specific question, Devy employees answer it in the first paragraph of the email. After that, the email tells the Devy story and asks for an appointment. Devy’s CRM lets managers track email responses, ensuring effective follow up as well as open rates. It’s an interesting twist that helps the dealership be more effective at responding to and following up with customers. The CRM also reminds Devy salespeople to continue to follow up with the customer. For Devy, that means daily attempts for the first four days after receiving the lead, then again on day seven, 14, and 30. The automatic reminders are integrated into the dealership’s process, and lead to 100 percent response rates from Devy employees to Internet leads. Do you respond by phone or email? There’s really no right answer. Devy’s online form asks customers to indicate a preference for contact method, but if there’s no response through one channel, they’ll try the other option. An additional benefit to relying on a CRM is the ability to track where leads come from. That is, if you’re merchandising your vehicles through a variety of third-party websites, you want

An additional benefit to relying on a CRM is the ability to track where leads come from. That is, if you’re merchandising your vehicles through a variety of thirdparty websites, you want to know if those investments are paying off. Which site delivers the most leads? Which sites offer the most exposure? What’s the cost per lead? Cost per sale? to know if those investments are paying off. Which site delivers the most leads? Which sites offer the most exposure? What’s the cost per lead? Cost per sale? Third-party websites have a range of pricing structures and CRM analysis lets dealers like Devy Auto Park determine which sites offer the most exposure for the lowest cost per lead/sale so they can devote their marketing expenses profitably.

Effective Merchandising, High-Quality Vehicles and Tried-and-True Customer Responses Get Results According to Pied Piper’s O’Hagen, “Dealers who handle Internet leads effectively sell a lot more vehicles than dealers who do not.” Getting good, quality Internet leads is important, but how the dealership’s staff responds to and engages customers is more important. Effective merchandising, highquality vehicles and tried-and true customer response processes are critical to handling leads effectively and ultimately winning more customers. Finding the right partner to showcase your vehicles is really a matter of ROI. Look for partners who understand your local market and can provide you with the most exposure for the best price. But also look for the right partner who knows what it means to be a “partner” – someone who will work to help you with your follow-up strategy and help you sell more cars.

BY KIM JENNETT AND STEVE DEVEREAUX

KIM JENNETT IS AN AWARD WINNING CREATIVE DIRECTOR AND DIRECTOR OF MARKETING AND BRAND STRATEGY FOR DEALIX, A DIVISION OF ADP DEALER SERVICES. SHE CAN BE REACHED AT KIM.JENNETT@ADP.COM OR 408-375-4758. STEVE DEVEREAUX, VICE PRESIDENT OF SALES FOR DEVY AUTO PARK, CAN BE REACHED AT (724) 295-2171.

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INDUSTRY

NEWS

Consumer Demand Fuels Steady Recovery

A S A LW AY S , T H E U S E D C A R I N D U S T R Y R E P O R T I S PA C K E D W I T H I N - D E P T H I N F O R M A T I O N .

They call this the Information Age, in part because there are more ways now than ever to obtain and share information, but also because the value of information becomes more evident every day. In business, especially, information is gold. Which makes the NIADA’s 2013 Used Car Industry Report worth its weight in… well, you know. The latest edition of the report, which is free to all NIADA members, will be released at this month’s NIADA Convention and Expo in Las Vegas. It is also available for purchase by non-members at www.niada. com. As always, the Used Car Industry Report is packed with in-depth information – the results of the NIADA member survey, statistics from CNW Marketing Research that provide an accurate look at the state of the industry, Buy Here-Pay Here benchmarks and data from the National Alliance of Buy Here-Pay Here Dealers, auction information from the National Auto Auction Association and, for the first time a look ahead with a market forecast from the National Automobile Dealers Association.

And this year’s report adds four new sections to provide an even more detailed and accurate snapshot of the business of selling pre-owned cars and all the activity that surrounds it. Section Four, for example, reveals the results of an Autotrader.com Independent Dealer Profile and Media Usage and Value study, which showed, among many other findings, that 85 percent of independent dealers use the Internet for advertising and 67 percent of Internet users advertise on third-party sites. In Section Six, Experian Automotive’s Recession and Recovery Report takes a look at the fall and rise of the economy and the evolution of the automotive financing market. The NADA Automotive Market Report: 2012 Analysis and 2013 Used Price Forecast, the focus of Section Nine, notes that used vehicle pricing rose again in 2012, with prices for up to eight model years in age increasing by 2.6 percent to an average of $14,445 per vehicle. And in Section Eight, NABD analyzes the findings of three national surveys regarding the use of payment assurance devices – GPD and starter-interrupt technology – and

how they affect Buy Here-Pay Here sales, collections and the perceptions of both dealers and customers. The report provides numbers and insight from all facets of the industry. In addition to the NIADA, CNW, NABD and NAAA sections already mentioned, there are sections detailing everything from auto transport to advertising to finance and inventory data and comparisons. Some highlights from the report: • While independent dealer income was up for 2012, so too were total expenses, resulting in an average retail gross profit of $345.74 per vehicle, down slightly from 2011. • According to NABD’s BHPH benchmarks, the yearly average BHPH units sold per dealer fell by 5 percent to an average of 653, but average gross profits per BHPH deal rose by 6 percent from the previous year. • ShipCarsNow’s report noted auto transport carriers responded swiftly to the 2012 resurgence in new vehicle production with renewed investment in their fleets. • Dealers saw slightly lower prices at auction at the end of 2012 and early in 2013, a trend evidenced by numbers tracked by Manheim Consulting.

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WASHINGTON UPDATE

NIADA Government Report KEEPING YOU INFORMED WITH THE LATES T GOVERNMENTAL ISSUES AND ACTIVIT Y IN THE USED CAR INDUS TRY

Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA lobbyist Sante Esposito and NIADA regulatory counsel Shaun Petersen. LEGISLATIVE REPORT H.R. 749, Eliminate Privacy Notice Confusion Act This bill, known as H.R. 5817 when it was introduced by Rep. Blaine Luetkemeyer (R-Mo.) during the last Congress, was passed by the House without amendment on March 12 and has been referred to the Senate Committee on Banking, Housing and Urban Affairs to begin its journey through the Senate. The bill amends the Gramm-Leach-Bliley Act to exempt from its annual privacy policy notice requirement any financial institution that provides nonpublic personal information only in accordance with specified requirements, and has not

changed its policies and practices with regard to disclosing nonpublic personal information from those noted in the most recent disclosure sent to consumers. On March 21, Sen. Sherrod Brown (D-Ohio) introduced companion bill S.635, the Privacy Notice Modernization Act of 2013, with 11 cosponsors, that bill was also referred to the Committee on Banking, Housing, and Urban Affairs. REGULATORY REPORT Consumer Financial Protection Bureau Rule on Administration of Civil Penalty Fund (CPF): The CFPB issued a final rule and proposed revisions to the rule governing the bureau’s CPF. The DoddFrank Act established the fund for the CFPB to deposit civil penalties collected in enforcement actions. The penalties collected are to be used for payments to the victims of activities for which the penalty was imposed. In certain circumstances, the CFPB can use the

funds for education and financial literacy programs. The fund cannot be used for general operating expenses. The CFPB said because the rule is “interpretative and procedural and relates to benefits,” it becomes effective when it is filed in the Federal Register. But the bureau also said it “believes public input on the final rule would be valuable,” so it is accepting comments, which are due within 60 days of publishing the rule in the Federal Register. Office of Financial Institutions and Business Liaison: The CFPB announced the creation of a new office to enhance communication and collaboration between bank and nonbank trade associations, businesses and financial institutions. Dan Smith, the former director for industry and state relations for Freddie Mac, has been named the assistant director in charge of the new office. Supreme Court review: Though the CFPB is not a party to the case, the government C O N T I N U E D O N N E X T PA G E

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WASHINGTON UPDATE

has sought review by the Supreme Court of the decision in Noel Canning v. NLRB, in which the D.C. Circuit Court of Appeals declared the President’s appointments of members to the National Labor Relations Board to be unconstitutional because the Senate was in session. That is significant because Richard Cordray was appointed director of the CFPB at the same time the NLRB members were appointed. If the Supreme Court affirms the Canning decision, it could have impact on Cordray’s appointment. Internal Revenue Service Emergency extensions: The tax filing deadline for residents of Suffolk County, Mass., was extended by three months after the Boston Marathon bombing. Residents automatically receive the extension, and taxpayer outside Suffolk County whose tax preparer lives in Suffolk can also qualify for an extension by calling 1-866-562-5277. In addition, taxpayers in the South and Midwest affected by a severe storm near the April 15 filing deadline can qualify for late payment penalty relief if they can show reasonable cause why they were unable to file their taxes by the deadline. Taxpayers in the affected areas who

In addition, taxpayers in the South and Midwest affected by a severe storm near the April 15 filing deadline can qualify for late payment penalty relief if they can show reasonable cause why they were unable to file their taxes by the deadline. receive penalty notices should contact the IRS. Department of Justice The Department of Justice brought charges against an individual in North Carolina for odometer tampering. The DOJ claims the defendant bought vehicles though online advertisements and replaced the odometers with odometers reading a lower mileage. One of the vehicles subject to the investigation is claimed to have been “rolled back” more than 100,000 miles. Pending State Legislation Ohio: HB 128 would amend portions of the salvage motor vehicle laws, specifically

allowing salvage vehicles to persons other than motor vehicle salvage dealers. California: SB 686 would prohibit dealers from selling, renting, loaning or leasing for a term of less than four months any vehicle subject to an open safety recall. AB 964 would prohibit dealers from advertising a vehicle as certified if there is an open safety recall. The bill would also require dealers to provide a written disclosure document informing the consumer if any of nine specific facts exist, and would require dealers to conduct a vehicle inspection and provide an inspection report of the components inspected. AB 501 would change the definition of a tire broker to exclude a vehicle dealer or other retailer primarily engaged in the retail sale, service and installation of tires. Case Law Updates A California appeals court upheld a preprinted arbitration provision in a sales contract. The consumer claimed he had not read nor was he aware of the arbitration provision, thus making the provision unconscionable. The court rejected the claim, highlighting the fact that there was a provision, in all caps, above his signature that alerted him to the arbitration provision along with the fact that preprinted arbitration provisions are standard in the industry.

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COMPLIANCE OVERDRIVE

Is it Time to Review Your Dealership’s Compliance Practices? T H E W O R L D M O V E S F A S T E R E V E R Y D AY. A R E Y O U R E A D Y F O R W H A T T O M O R R O W B R I N G S ?

As many state legislative sessions wrap up at midyear, lenders and dealers must begin watching for legislative summaries – and maybe new legislation and requirements that will be taking effect soon. Facing a regulatory landscape that continually seems to move faster and grow in complexity, dealers must be even more vigilant in making sure laws and regulations are being embedded within their business. In some cases, the laws and regulations tell us exactly what needs to be done. For example, a disclosure using specific words in a specific type size must be given to consumers at a specific time. But in other areas, the laws and regulations require dealers to create and follow reasonable practices based on their unique business conditions. Those types of requirements can be challenging to meet because they evolve as your business and the industry

changes. Certain areas, though, deserve continual focus, including regular reviews of policies, procedures and processes. Information/Data Security Some of the most obvious risks for dealerships are related to information and data security. Dealers must view identity theft as an accident that’s always waiting to happen because of to the various types of personal and financial information they manage for their customers. Hundreds of people can walk through dealers’ sales floors, which in many cases are open, with some sales desks located in the showroom. Is your staff diligent about making sure sensitive customer information isn’t left sitting out on a desk or up on a computer screen so anyone walking by can view it? Is anyone within earshot when a potential customer is verbally providing personal information? That includes not only dealership visitors, but also employees who should not have access to specific data.

In short, your information security program needs to start on the sales lot and in the showroom. Your Red Flags program should already address potential security risks, at least as they relate to potential identify theft. The Red Flags Rule requires each dealer to have a program designed to detect, prevent and mitigate identity theft in connection with opening or maintaining an account involving an extension of credit. Reasonable program activities will evolve as technology and business practices change and as identity theft techniques and vulnerabilities change. So compliance with the Red Flags Rule will always be an evolving standard. Make sure you have data security and ID theft programs and policies. Make sure you follow them. And make sure you regularly review and update them – even if there isn’t a law or regulation change reminding you to do so. C O N T I N U E D O N N E X T PA G E

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COMPLIANCE OVERDRIVE Employee Security Along those same lines, dealers need to be mindful of processes related to employee security. It must be clearly defined which employees have access to what. In your dealership, are F&I files password-protected so only certain employees can access them? Sales team members might need limited access to information to determine a potential buyer’s creditworthiness, but does the receptionist really need access to the same information and tools? Are there clear parameters for who has access to different types of information? Are those policies communicated and understood among employees? Employee security also involves background checks and other operational issues related to hiring and firing employees. Dealerships should use background checks in their hiring process in addition to checking references and other representations a candidate provides. Be thorough. For example, instead of just doing a criminal record check for the county where the applicant lives or the dealership is located, consider expanding it to the entire state. You should also review states of prior residence for the past several years. Remember to re-run background

checks (or at least the criminal background check) periodically to note any changes. If an employee is arrested after employment begins, he or she might not tell you about it. If you don’t re-run criminal background checks, how will you find out an existing employee was convicted of misdemeanor shoplifting or DWI (with suspension of driver’s license)? Depending on the employee’s role, that might be critical employment-related information. Content Security While the risks mentioned so far might seem somewhat obvious, other risks are more subtle, such as access to template documentation. Though blank standard documentation might not contain personal information about customers, they could present opportunities for criminals. For example, even without access to customer personal data, a thief might be able to create fraudulent transactions if he or she has access to preprinted retail sales contracts or the software that generates them. Dealers should consider restricting access to blank standard documents even though they don’t contain personal customer data. Information Retention A critical area of focus for customer

personal information is protecting it at the time it’s provided by credit applicants and the points the information is transmitted to others as part of the credit analysis process. But dealers also need to focus on their retention of that information during the credit processing period and afterward. Red Flags programs should include procedures to protect personal information during and after the credit process and transaction closing. Protecting that information long after the sale requires as much vigilance as the protection you provide during the credit processing phase. All of this reminds us some compliance requirements evolve with changing business practices and technologies. It’s important to regularly review compliance efforts for these kinds of requirements even if they aren’t revised by law or regulation changes this year. The theme of this year’s NIADA Convention and Expo is “New Strategies for Tomorrow.” The world moves faster every day. Are you ready for what tomorrow brings? Knowing your dealership is continually working to mitigate business and compliance risks can bring peace of mind when considering your own preparedness.

BY CHIP ZYVOLOSKI

CHIP ZYVOLOSKI IS A SENIOR ATTORNEY FOR INDIRECT LENDING AT WOLTERS KLUWER FINANCIAL SERVICES. FOR MORE INFORMATION, VISIT WWW.WOLTERSKLUWERFS.COM/INDIRECT.

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Why Join CIADA? CIADA is the only non-profit organization in the Carolinas with a national affiliation representing independent used car dealers. Have you been thinking about joining CIADA? Take a look at just some of the benefits we have to offer our members and we think you’ll agree the $285 annual fee may be the smartest investment you can make for your business: Representation: CIADA meets regularly with DMV representatives from North and South Carolina to discuss issues that directly impact dealers. We monitor the General Assembly in both states, and act as an ongoing advocate for used car dealers, fighting on your behalf against potential legislation that could negatively impact our dealers or the used car industry as a whole. We make sure your voice is heard by government officials and regulators. Compliance and Education: CIADA is dedicated to helping you achieve your Continuing Education requirements. In addition to educational opportunities, we also provide workshops, seminars and compliance updates. Industry Information: In addition to 24/7 access to our continuously updated website, we also distribute a bi-monthly magazine with the latest industry news, regulatory updates and other key information from a variety of experts and guest columnists. And don’t forget to join us at our Annual Convention and Expo the first weekend of August; it’s a great opportunity to stay informed and talk with other dealers. Savings: CIADA provides members with a wide variety of forms at a discounted price and our Coupon Book provides more than $11,000 in direct savings from many auctions. Additionally, CIADA can potentially help you save on dealer bond and insurance costs; just ask us for a quote. We can also put you in touch with a variety of business partners, from attorneys and accountants to warranty and financial services providers. Individual Help: CIADA knows it’s not easy to run a dealership successfully, but you don’t have to go it alone or suffer in silence. Our qualified and experienced staff can help find answers to your questions. Looking for some mentoring, or real-world tips for success? We can connect you to some of the best dealers in the industry, including more than 15 Certified Master Dealers in the Carolinas. Remember, CIADA serves vendors, as well. As a vendor member, you help support an association that keeps dealers educated, motivated and compliant – all of which helps them maintain a profitable business. Benefits of being a vendor member include: • Solid business referrals and sponsorship opportunities • Website link listing on the CIADA website • Trade show exposure • Advertising opportunities in the CIADA magazine • Exposure to new “first time” dealers • Networking opportunities In this ever-changing and challenging industry, you need someone on your side. You really can’t afford not to belong! For more about the association and its benefits, visit www. theciada.com. If you have additional questions or need more information about membership, simply take a moment to speak with our executive director and friendly staff at 704-455-2117.

Education Update 2013 PRE-LICENSING EDUCATION CLASS SCHEDULE

SCHEDULE IS SUBJECT TO CHANGE. ** SUBJECT TO CONVENTION RATES. CALL FOR DETAILS. PLEASE NOTE: OUR CLASSES ARE TAUGHT BY PROFESSIONAL INDUSTRY TRAINER, MARTY COATES AND CIADA IS NOT AFFILIATED WITH ANY OTHER DEALER TRAINING ENTITY IN THE CAROLINAS.

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NIADA DEALER 20 GROUPS

DO YOU FEEL LIKE YOU’RE CONSTANTLY TRYING TO REINVENT THE WHEEL? Does it seem like you’ve tried everything you can think of to take your dealership to the next level? Maybe it’s time for a different approach. With NIADA Dealer 20 Groups, you can share successful business ideas and best business practices with CIADA 58th Annual C other dealers from across the country. August 1 While some Dealer 20 Groups focus on resort locations and exotic travel, NIADA CIADA 58th Annual Convention & Expo 20 Groups aren’t about location. Rather, they’re a cost-effective investment in August 1-4, 2013 The Homestead yourself and your dealership. Whether your dealership is large or small, retail or Buy The Homestead Resort & Spa Hot Springs th th Here-Pay Here, NIADA 20 Groups are committed to guiding you to serious solutions CIADA 5858 Annual Convention && Expo CIADA Annual Convention Expo Hot Springs, Virginia for greater dealership profitability. August 1-4, 2013 August 1-4, 2013 NIADA 20 Groups aren’t static classroom sessions. They’re not about lectures, CIADA 58th Annual Convention & Expo seminars or boring power point presentations. Rather, the power of our 20 Groups Homestead && SpaSpa comes from the dealers themselves, working together and sharing ideas The andThe real Homestead Resort August Resort 1-4, 2013 world experience with each other. You’ll be matched with dealers of like size and HotHot Springs, Virginia Springs, Virginia sales volume from non-competing markets; dealers, working together with one Thegoal Homestead Resort & Spath in mind: increase success and improve net profitability. Together, you’ll help each CIADA 58 Annual Convention & th Expo CIADA 58 Annual C other improve day-to-day operations, increase sales, manage expenses, control Hot Springs, Virginia August 1-4, 2013 inventory, and more. Sessions are moderated by Joe Lescota, NIADA Director of August 1 Dealer Development and former retail automotive executive with more than 25 The Homestead Resort & Spa years of frontline dealership, selling, management and training experience. The Homestead Hot Springs, Virginia NIADA Dealer 20 Groups traditionally meet on weekends, to minimize time away Hot Springs from the pressing day-to-day business needs of your dealership, and are held at various locations across the country. Being part of a 20 Group takes only 12 hours of your time, three times a year, and provides a rare opportunity to share ideas THE HOMESTEAD RESORT & SPA and evaluate your dealership’s performance with people who truly understand your HOT SPRINGS, VIRGINIA business – because they’re just like you. Take the next step toward achieving, and maybe even exceeding, your business Cabanas Front Porch goals by signing up for an NIADA Dealer 20 Group today. For more information, visit www.niada.com or contact georgia@niada.com.

JOIN US

CONVENTION & EXPO

CIADA 58TH ANNUAL CONVENTION & EXPO AUGUST 1-4, 2013

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CIADA 58th ANNUAL CONVENTION AND EXPO The Homestead, Hot Springs, Virginia August 1-4, 2013

REGISTRATION FORM

ˆ FIRST TIMER

ˆ DEALER

COMPANY INFORMATION:

ˆ VENDOR

ˆ OTHER

DEALER NO.

Company

Mailing Address

Telephone

City/State/Zip

Fax

Lot Address

Email

City/State/Zip

Website

REGISTRATION INFORMATION:

n All Events

‰$250 each

Quantity

Item Total $

______

_________

Badge Name(s):_____________________________________, _____________________________________

o All Events except Educational Sessions

‰$210 each ‰Child $85 each (7-14 yr)

______ ______

_________ _________

Badge Name(s):_____________________________________, _____________________________________ Badge Name(s): Child ‰______________________________, Child ‰_______________________________

p Friday Only (Educational Sessions & Expo)

‰$210 each

______

_________

q Friday Night Expo Only

‰$115 each ‰Child $50 each (7-14 yr)

______ ______

_________ _________

Badge Name(s):_____________________________________, _____________________________________ Badge Name(s): Child ‰_______________________________, Child ‰______________________________

r Saturday Night Banquet Only

‰$115 each

______

_________

Badge Name(s):_____________________________________, _____________________________________

s Kid’s Only Party

Name(s):____________________________Age______, _________________________Age______ (Age 2-12, Saturday, August 4th, 6:30-9:30pm)

PAYMENT INFORMATION:

FULL

PAYMENT MUST ACCOMPANY REGISTRATION FORMS

TOTAL $ AMOUNT

‰ Check Enclosed (Please make payable to CIADA)

Credit Card #

‰ VISA

‰ Mastercard

Expires ____________________ V-Code __________________

Credit Card Billing Street Address _______________ ________________________ City,State,Zip_______________________ ___________________ Name on card_________________________________________________ Email (for receipt)_____________________________________________ Signature_____________________________________________________ IN THE EVENT OF CANCELLATION, NOTICE MUST BE POSTMARKED BY JUNE 30TH FOR A REFUND MINUS A $25.00 CANCELLATION FEE PER PERSON. NO REFUND WILL BE GIVEN FOR CANCELLATIONS POSTMARKED AFTER JUNE 30, 2013.

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CIADA P.O. Box 1088 Harrisburg, NC 28075 Fax: 800-992-4232

HOTEL INFORMATION:

RATES:

Reservations: The Homestead Hot Springs, VA (540) 839-1766

Group: CIADA Room rate: $180 per night Rate cut-off June 30, 2013

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INDUSTRY NEWS

FTC Releases Dot-Com Disclosure Guidelines

Surprise! Gas Cost Less in First Quarter 2013

Study: 4 of 5 Mobile Calls Lead to Sales

NIADA Committee Recommends Bylaw Change

The FTC released revised dot-com disclosure guidelines to assist companies in making clear and conspicuous disclosures in online or mobile advertising. The disclosures make it clear that consumer protection regulations apply across all media used by marketers to reach consumers.

U.S. gasoline prices hit a record high average in February, but thanks to a rapid decline in March, the average first quarter 2013 gas prices were less than the 2012 numbers, according to GasBuddy, which tracks gasoline prices at more than 140,000 stations in the U.S. and Canada. Contrary to widespread perception, Americans paid about 30 cents less for a gallon of gasoline during Easter weekend than they paid over the same period in 2012. Gas averaged about $3.64 per gallon on Good Friday, compared to $3.93 last year.

According to data analysis by mobile advertising firm Marchex, Inc., consumers now place millions of calls to the auto industry directly through mobile ads – and once consumers connect to a representative over the phone, 79 percent of them want to buy.

The NIADA executive committee has recommended an addition to the bylaws in Article VI, Section 6: Meetings. The section would read (addition in bold): The NIADA Board of Directors Annual Meeting and Convention Meeting shall be held at the location of NIADA’s Annual National Convention, if one is held. The Midterm Meeting and any special meetings, and annual meeting not held in conjunction of with NIADA’s Annual National Convention (due to no such convention being held) may be held at any location chosen by the NIADA Board of Directors or Executive Committee. In its sole discretion, the Board of Directors or Executive Committee may determine that such meetings except for the Annual Meeting may be held solely by means of remote communication in accordance with 8 Del. C. § 211, as amended.

OVER ALL , THE ROCKY MOUNTAIN REGION HAD THE LOWE ST PRICE S

A COPY OF THE GUIDELINES CAN BE FOUND AT:

W W W.F TC.GOV/OS/2013 /03/130312DOTCOMDIS CLOSURE S.PDF. A

According to the guidelines, if a proper disclosure cannot be made using a particular medium, that medium should not be used. The FTC also said that in order for disclosures to be clear and conspicuous to the consumer, they must be as close as possible to the relevant claim. And advertisers are told hyperlinks should not be used for disclosures that involve product costs or certain safety issues. A copy of the guidelines can be found at: http://www. ftc.gov/os/2013/03/1303 12dotcomdisclosures.pdf.

The average price in the first quarter of 2013 was $3.548 per gallon, compared to $3.584 for the first quarter of 2012. In ranking the prices for 363 metropolitan statistical areas, GasBuddy found two U.S. markets that averaged less than $3 for the quarter – both in Wyoming. Casper averaged $2.87 and Cheyenne was at $2.955. The most expensive market in the country was the Honolulu area at $4.157 per gallon, three cents more than in 2012. Overall, the Rocky Mountain region had the lowest prices thanks in part to relatively cheap North American crude availability for refiners. The highest prices were found in New England, Florida and California, which had eight of the 10 most expensive markets in the country.

E VERY VOICEMAIL CAN COST YOU.

Analysts aggregated anonymous data points from more than 65,000 calls placed to auto dealers, repair shops and national call centers. The calls, driven through Marchex’s mobile advertising network, came from consumers engaging with mobile ads via mobile directories, apps, mobile banners and voice search. “Our findings underscore how very important it is to be available, in person, to answer the phone when calls come in,” said John Busby, vice president of the Marchex Institute, the Marchex’s research arm. “The auto industry should think of these conversations as money on the table. Every voicemail can cost you.”

Other findings: • Consumers calling auto dealers are highly motivated, asking about inventory and booking test drives. • Consumers who call from mobile ads tend to be younger than the general population. • Men call more often than women. • Smartphone callers tend to have higher income.

THIS ADDITION WILL ALLOW FOR MORE DE ALER PARTICIPATION IN THE BUSINE S S OF THE NIADA BOARD OF DIRECTORS.

This addition to the NIADA bylaws will allow for more dealer participation in the business of the NIADA board of directors. The proposed amendment will be placed on the agenda and voted on at the board of directors meeting at the NIADA Annual Convention on June 25.

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CIADA Dealer News June/July 13