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JANUARY/FEBRUARY 2013

CIADA INSIDER C O L O R A D O

I N D E P E N D E N T

A U T O M O B I L E

D E A L E R S

A S S O C I A T I O N

Embrace the Green Revolution BECOMING ENVIRONMENTALLY CONSCIOUS CAN BE COST-EFFECTIVE – AND FINANCIALLY REWARDING

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t NEGATIVE SEO? t EXPAND YOUR AUCTION OPTIONS t COMPLIANCE OVERDRIVE

DALLAS, TEXAS Permit No. 2079

PAID PRSRT Standard U.S. Postage

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F R O N T

Inside

MAGAZINE CONTENTS 06 10 12 16 18 22

The Environmentally Conscious Dealer Negative SEO? Government Report Creating an Elite Sales Force Expand Your Auction Options Compliance Overdrive

BOARD OF DIRECTORS PRESIDENT Dean Strawn AutoTrek 303-934-5600 dstrawn@autotrek.com 7*$&13&4*%&/5 Dave Cardella Cardella’s Car Deals 303-887-8977 dcard65724@msn.com

TREASURER Stan Martin Stan’s Auto Sales LLC 303-761-9928 stansasllc@gmail.com

4&$3&5"3: Lloyd Donnelly King Credit Auto Sales 303-287-5511 rtholdings@aol.com

CHAIRMAN Peppe DeMarco Highline Motors 970-206-9963 pdemarco@highlineweb.com

WHAT’S NEW

R A N G E

C L A S S E S

Colorado Independent Automobile Dealers Association

Education & Training Center

Colorado state statute requires anyone applying for a used motor vehicle dealer’s license or a This seminar is also offered to salespeople to be able to pass the New Mastery Examination Test. Class is given at least once a week. Check our website for dates.

NEW!!

Call CIADA for information on these classes, also to get your forms and/or Dealer/Salespersons Bonds. 303-239-8000

Please check our website at www.ciada.org for any changes.

www.niada.tv - Free Dealer Education 24/7

TAKE US WITH YOU

Certified Master Dealer Program - Feb. & April 2013

Educates dealers on how to manage and grow a profitable business “Effective Management Practices�, “Business Planning�, “Human Resources�, “Merchandising�. “Financial Management� Call (800)756-4232 to sign up.

High Turnover Means Lots of Work to Do We are sure you share our relief that the 2012 election had ended!

wire, we were surprised how quickly the elections were called on election evening.

ADVERTISERS INDEX

ADESA ........................................................................ 9 Ally ...........................................................................13 AutoManager ............................................................21 Auto Search Technologies ........................................16 CarMax Auctions ...................................................... 17 Dealer Services Corp./MAFS .............................19 GoldStar GPS ................................... Inside Front Cover Lobel Financial Corporation ....................................... 7 Loveland Auto Auction ..............................................14 Manheim.com ..........................................................11 Manheim Denver .........................................Back Cover NIADA Certified.........................................................19 Protective ................................................................... 5 United Acceptance ..................................................15 VAuto ............................................... Inside Back Cover

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 888/*"%"$0.t888/*"%"57 NIADA HEADQUARTERS: #308/#-7%t"3-*/(50/ 59 1)0/&   '03"%7&35*4*/(*/'03."5*0/$0/5"$5530:(3"''  03530:!/*"%"$0.

CIADA Insider is published 6 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of CIADA Insider or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright Š 2013 by NIADA Services, Inc. 45"5&."(";*/&.(34"-&4 EDITOR "35130%6$5*0/.(3 13*/5*/(

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ADVERTORIAL

INDEPENDENT DEALERS NEED NEW ‘F&I MANAGER’ Having had the pleasure of serving automobile dealers for more than 50 years, we at WA R N I N G

NHTSA Warns of Counterfeit Airbags been used as replacement parts for as been involved in a crash over the past three

original equipment parts right down to the manufacturer’s logo, either don’t deploy at all

The airbags are being sold to independent repair shops as original equipment, the

and scale of the problem” and said the list

Cars that have had their airbags replaced by independent shops or by airbags purchased online during the past three years

established by their car’s manufacturer to have the vehicle inspected and the airbag and other information is also available at In August, federal agents arrested a North Carolina auto mechanic and discovered

in Tennessee, in which a Chinese citizen

of our dealer customers. Like many readers of this magazine, we place great importance on industry studies to ensure we are on top of the latest market trends – and in particular, your needs. However, we recognize selling cars is more than numbers and charts. It’s a people business. We spend countless hours working to support dealers of all sizes and types. We’re in the car business and a lot of what we do still takes place with a meeting, a handshake, leadership and good in-store training. In our goal to share proven dealer solutions, we turned to the largest audience – the growing group of independent auto dealers. We wanted to better understand what you We asked many of you from across the county questions about your operations, current selling processes and the importance of F&I to your businesses. Your feedback was informative and insightful, and aligned with many of the current successful approaches we use today. Here is a snapshot of what we learned: When we inquired about the types of vehicles and service contracts being sold today, we learned the average vehicle sold is 3-7 years old with 50,000-100,000 miles on it. We discovered more than 65 percent of you sell vehicle service contracts in your dealership. When we inquired how Protective could better support you, we learned that ease of doing business is very important, followed by working with a company you can trust. On the technology front, 55 percent of you use or plan to use an electronic device such as an iPad® or a tablet device to educate your current and future consumers about F&I products. We found that in general, consumers still rely on good, quality education from you to learn about the value of a service contract and most consumers don’t have preconceived ideas about what that value really offers them. The study reinforces what Protective Asset Protection already does well: helping dealers make money selling F&I products. So what is the best way to help you be more productive, drive more revenue and increase customer retention within the F&I process? We think the answer is obvious – hire an F&I manager. No one said it was a simple customers with the best options and the true value of making an F&I purchase decision. Obviously, adding to your headcount is no small task, and we asked ourselves what Okay, we didn’t hire an F&I manager for each independent dealer. Instead, we You might have guessed your new F&I manager is not actually a person but instead is an electronic sales presentation using an iPad, or a desktop/laptop-based solution. and sales ability, it does provide you a tool to increase service contract sales. With our new F&I solution, you have the ability to offer a vehicle service contract customized overcome objections and help close the sale. We want you to have the closest thing we could provide to an actual F&I manager. Protective’s Protection Plus vehicle service contract and supporting web/iPad app will working with independent dealers to introduce them to their new F&I manager. You can learn more about the technology and our goal to bring you innovative new ideas and

have been tied to the counterfeit bags but said it is unclear whether police accident

BY RICK KURTZ

SENIOR VICE PRESIDENT-DEALER SERVICES FOR PROTECTIVE ASSET PROTECTION HAS MORE THAN 23 YEARS OF INDUSTRY EXPERIENCE. PROTECTIVE ASSET PROTECTION PROVIDES F&I PRODUCTS FOCUSED ON ENHANCING PROFITABILITY AND CUSTOMER SATISFACTION. FOR MORE INFORMATION, CALL 800-950-6060, EXT. 5755, EMAIL RICK.KURTZ@PROTECTIVE.COM OR VISIT PROTECTIVEASSETPROTECTION.COM.

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N O T O N LY I S I T C O S T E F F E C T I V E , I T C A N B E F I N A N C I A L LY R E WA R D I N G T O E M B R A C E T H E G R E E N R E V O L U T I O N .

The Environmentally Conscious Dealer Each day, consumers and businesses

Yet we are a long way from where we need

For all of us in the auto industry, each car

Turn off the printer: We print so

changes? In addition, the consumer climate has changed to the point that it is not only cost

Instead try saving them on your computer Turn off excess lighting. Use a green demo: of us drive without passengers a large

will attract better talent along with more

Electric Vehicles and Hybrids

What is the impact on the environment?

Walk or cycle: Our industry is married to the internal

and new competitors are emerging with Smartphone apps: broad selection of apps to replace paper

Often we gauge our performance on Given the nature of our industry, it’s vital that we all embrace, with open arms, the need for a heightened level of

Do business with green businesses:

Here’s a lineup with some information

vendors that act in an environmentally

Tesla Model S:

Eliminate bottled water: Bottled There are countless ideas each of us difference to the environment while feeding

Green Solutions Recycle: In my travels and visits to

Hit the switch: Turn off and/or unplug unused appliances and computers Lot lights: Every one of those items can be easily implemented today with little or no

imaginable to have a positive impact on the

consumer, but will be attractive to the Tesla Roadster:

Fisker Karma: Electric/hybrid with cost savings, especially when that savings accumulates over the course of one or

Electronic fax: There are several

Consumer interest in the product

on 100 percent electric power, then the internal combustion engine engages for

fact we are depleting the world’s natural BMW ActiveE: Forget traditional mailers: Typical response rate on mail advertising is a mere

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THE ENVIRONMENTALLY CONSCIOUS DEALER

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

Toyota Prius: more products emerge that meet the not a full electric vehicle, it deserves a spot in the lineup based on its massive success When it comes to pricing, most of those

stand on the matter? Are you going to be one of the dealers with your hand raised

Chevrolet Volt: The Volt can go up engaging the gasoline engine for up to Unfortunately, a large portion of our

Or are you going to stand on the sidelines and watch your competitors lead the charge? Technology and the environment are

Ford Focus Electric: The Focus can go up to 100 miles on a charge and Information Administration, the most predominant sources of electricity in the

remains committed to providing you not also cutting edge technological solutions

Nissan Leaf: mainstream pure electric car offered for Because so much of our energy is created commuter vehicle but falls short when it Consumers are more informed and

We are also committed to shifting with your business as environmental needs

that electric vehicles consume similar amounts of energy and as a result produce nearly as much greenhouse emissions designed to empower you and your business

Additionally, gasoline prices are still environmental need for alternative fuel

Looking to improve your bottom line, manage more effectively, improve employee retention, and leverage the newest and most effective marketing techniques? NIADA can help!

CERTIFIED MASTER DEALER TRAINING

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.

February: Dallas April: Atlanta July: Arizona September: Atlantic City

DEALER 20 GROUPS

Share successful ideas and best business practices in this unique, cost-effective 20 Group, designed for BHPH and retail dealers alike.

January: Atlanta April: Dallas August: Atlanta December: Dallas

F O R M O R E I N F O R M AT I O N , V I S I T : W W W. N I A D A . C O M / E D U C AT I O N . P H P

more clean and renewable energy sources, electric vehicles will remain an imperfect solution, But they represent a big step in In the end, innovation without

BY GARRETT JOREWICZ

NORTHWEST REGIONAL DIRECTOR OF DEALER SERVICES CORPORATION.

Annual Scholarship Program The National Independent Automobile Dealers Association Foundation was founded in 2006 by the National Independent Automobile Dealers Association, a 66-year-old trade association, to “improve the independent motor vehicle industry by informing and educating consumers of the general public and training individuals Historically, the association’s scholarship program was foundation has assumed the oversight of that scholarship program’s functions. Submit the completed application form with the required attachments in a 10 inch-by-13 inch envelope with adequate postage to:

SCHOLARSHIP SELECTION COMMITTEE NIADA FOUNDATION 2521 BROWN BLVD ARLINGTON, TX 76006 All information MUST be included with the original application. No additional information will be accepted at a later date. Staff will review the applications for completeness and will forward them to the Scholarship Selection Committee within NIADA and at Northwood University in Midland, Mich. They will be reviewed by region. One applicant will be selected from each of the four NIADA regions based on the merit of

FIND THE SCHOLARSHIP APPLICATION AT WWW.NIADAFOUNDATION.ORG

FOUR REGIONAL SCHOLARSHIPS ARE AWARDED ANNUALLY AT THE ANNUAL NIADA CONVENTION IN JUNE. REGION I: MAINE, VERMONT, NEW HAMPSHIRE, MASSACHUSETTS, CONNECTICUT, RHODE ISLAND, NEW YORK, PENNSYLVANIA, NEW JERSEY, DELAWARE, MARYLAND, VIRGINIA, WEST VIRGINIA, INDIANA, OHIO AND MICHIGAN. REGION II: KENTUCKY, TENNESSEE, NORTH CAROLINA, SOUTH CAROLINA, GEORGIA, FLORIDA AND ALABAMA. REGION III: NORTH DAKOTA, SOUTH DAKOTA, MINNESOTA, WISCONSIN, ILLINOIS, IOWA, MISSOURI, KANSAS, NEBRASKA, OKLAHOMA, ARKANSAS, LOUISIANA, MISSISSIPPI AND TEXAS. REGION IV: WASHINGTON, OREGON, CALIFORNIA, NEVADA, IDAHO, MONTANA, WYOMING, UTAH, COLORADO, ARIZONA, NEW MEXICO, ALASKA AND HAWAII. The foundation invites you as an eligible student to complete this application in pursuit of scholarship funds to be paid to the college of your choice in the fall of 2013. Applications must be POSTMARKED NO LATER THAN MARCH 1, 2013 AND RECEIVED NO LATER THAN MARCH 11, 2013.

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W E B C H AT

Negative campaigning your competitors could be sabotaging your website

Negative SEO? But two items that don’t seem to mesh

web pages or other resources outside your

to your site can either have value to it and help your site or it can have a negative

In the automotive industry, there are play dirty as well, and if you are not aware

that advertise they’ll sell you hundreds and it is very hard to see because it all happens away from your site and is Related incoming business links:

With the constant uphill battle of

Most of the time, the companies will Craigslist or leaving negative reviews on the same industry as your business, but Google recently released an update called

malicious harm intentionally caused to hurt the placement of a website’s search could have some serious issues with your of those ahead of you until you are Forcing one website to appear lower in

because you are helping your customers navigate to a product or service that you might not offer that could be considered

competitor from signing up your website’s

means other websites will climb higher in is considered a viable model by unethical

website that points to your website counts being directed to your website can help

The most common form of negative social media outlets, online video

been launched against your business,

There are many free websites you can

engine optimization), but you want to

allows you to identify the total number of easily wipe out the value of hundreds of

pass value to your website when done Disassociated business links and unnatural links:

BY MICHAEL D. JACKSON

CEO OF AUTO SEARCH TECHNOLOGIES, INC. HE CAN BE REACHED AT (949) 608-0809 OR CEO@AUTOSEARCHTECH.COM.

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GOVERNMENT REPORT

NIADA LEGISLATIVE TEAM UPDATE REGULATORY REPORT Federal Trade Commission

Last month, the FTC released a proposed change to the Used Car Rule, which would

No civil penalty was assessed to the directors or company, but the company and its owner have heightened reporting and

Interim Red Flags Rule, limiting The interim

increased the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M

Act and the Consumer Leasing Act generally will apply to consumer credit transactions and

them to an FTC website with information on

Guide noting the document is also available

new rule, a creditor is covered if, in the ordinary course of business, it regularly obtains or uses consumer reports in credit transactions, provides information to consumer reporting agencies in relation to a credit transaction or advances funds to

behind director Richard Cordray, will leave

The FTC has invited comments on the the agency’s signature and most complicated giving the dealer the option of informing the consumer whether the manufacturer’s warranty still applies or whether a

The FTC

to return to a faculty position at Georgetown

LEGISLATIVE REPORT Rental Cars (S.1445, S.3502, H.R. 6094)

to stop renting or selling vehicles that have Jordan, Region III vice president Gordon met with the FTC attorneys responsible for

director is responsible for the administration and management of the FTC, including human resources, information technology, services and legal document processing and

In addition, the commission made minor

Thrifty, as well as the American Car Rental Association, have endorsed new legislation authored by the senators to ensure recalled

Consumer Financial Protection Bureau annual report to Congress, as required

11, but must transition to the new guide when

Under the deal, rental car companies Enterprise/National/Alamo, Hertz/

supervisory powers under the Equal Credit Opportunity Act and the Home Mortgage

The deal caps a long push by the senators

are prohibited from selling a recalled automobile, rental car companies are not

the nature and prevalence of deception in requiring vehicles under a safety recall to Settlement with car loan FTC entered into a settlement agreement with

consumer complaint data with state consumer protection activities via a secure

Also under the legislation, the National

allegedly promised to save vehicles from bureau plans to accept complaints and information from state agencies in the

investigate and police rental car companies’ The timing of any action on the new

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NEW PRODUCTS

Test Drive Generator Does All the Work One of the great things about the Internet invading the dealership business is the innovative new ways it helps information about every vehicle on your

customers visiting your website should be

because every day there are thousands of

VISIT WWW.TESTDRIVEGENERATOR.COM

the time, why, oh why, would you want a that up? Once the customer has scheduled a test

Nothing good will come of an email or

something the salesperson says or writes will give the customer second thoughts Now, you might say your salespeople are tremendous, but why mess with a good thing? Customers are coming for a

software that allows any dealer, on any type of automotive website platform, to allow customers to schedule their own test

whether you get 10 test drives per month

BY BRETT STEVENSON DEALER MARKETING MAGAZINE

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ECONOMIC NEWS

Economic Census Coming Soon 4 million American businesses, including

questionnaire are required by law to be

conducts the Economic Census to develop a comprehensive portrait of American business, from the national to the local

A S S O C I AT I O N N E W S

United Acceptance Joins as a Bronze Partner contributed to its growth from a local company in Atlanta to an organization that

__ to web page __ provide information about the Economic Census as well as statistics businesses can use to assess and grow their business The site includes webinars and videos to educate businesses about the census and what it means to them, as well as a section FOR M ORE I NFORM AT I O N , V I S I T BU S I N ES S . C EN S U S . G OV.

FO R M O R E I N FO R M AT I O N , V I S I T W W W. UA I D I R EC T. C O M O R CA LL 877 - 2 81 - 2 3 6 0 .

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YO U R S A L E S T E A M I S T H E FA C E O F T H E C O M PA N Y – S H O U L D N ’ T O N LY T H E B E S T O F T H E B E S T R E P R E S E N T YO U R B R A N D ?

MAKE YOUR SALES TEAM AN ELITE FORCE In most sales teams, there are a handful of You cannot create an elite team if becoming Imagine how much more successful your dealership could be if every salesperson was

be spectacular if it let anyone with a helmet training program in which no more than 60 team be considered elite, there must be a

In other areas, we see groups of elite people who band together for a common goal

one should actually become a salesperson sales positions, realize that conducting one interview prior to bringing someone

In any of those groups, you don’t see multiple interviews, with the candidate outperforming their peers or being the lone

because each member contributes greatly, plays an integral part and gives 100 percent

The only time you really waste time and money is when you allow low producing in team spirit, have a positive attitude or people who have the wrong attitude) to be have your HR department be responsible

If it’s possible with those groups of people, But creating an elite group of salespeople involves much more than placing a help hiring process that attracts only the best of the

hiring salespeople should be to process the

sales role have been thoroughly trained and

Finally, and perhaps most important,

Having an intense training period is the same approach used by colleges and the

board realizes that getting past the initial

A S S O C I AT I O N N E W S

Keystone Offers Discount to NIADA Members Keystone Automotive has become the

guaranteed delivery and custom member

research/ordering resource for a monthly fee

Keystone is the leading distributor equipment and accessories in North America,

FO R M O R E I N FO R M AT ION OR T O OR DER P L EASE G O T O W W W. K EYS T O N EAU T O M O T I V E. C O M O R CA LL 1 -8 0 0 -4 3 2 -8 06 3 . 16

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MAKE YOUR SALES TEAM AN ELITE FORCE

carrying out the country’s most dangerous and critical military missions? Only the best of the best, right? Well, who do you want to be the face of your company, representing your products and services and interacting daily with your customers? Again, only the Your intense training program should

Use the ongoing training sessions to create That intense process will weed out the

them help each other solve problems, offer Because the goal is to continually develop a

For the ones remaining, offer them a $1,000 right now for you to leave the training

products and services thoroughly to ensure the prospective salesperson comprehends

together monthly, you’re creating a strong

scenarios as well as the most challenging out than waste a lot of money down the road After all, your sales team really is the face those who started should still be standing best of the best be representing your brand?

BY VICTOR AROCHO intricacies of the business and understand what happens both before and after the sale

VICTOR AROCHO IS A SALES DEVELOPMENT EXPERT, SALES TRAINER AND MANAGING PARTNER OF POTENTIAL SALES & CONSULTING GROUP, SPECIALIZING IN GROWING SALES BY BRINGING ACCOUNTABILITY TO THE SALES PROCESS AND CRAFTING A SALES CULTURE OF SUCCESS. FOR MORE INFORMATION, VISIT WWW.VICTORAROCHO.COM.

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DEA LERS NE ED T O CAS T A W I D E R N ET AN D T O E N SU R E TH EY D O N ’ T C O ME H O ME F RO M AU C TI O N S EMP T Y- H A N D ED

Expand Your Auction Options Dealers across the country complain about cars at auctions. The complaint is completely understandable. The recession slowed the pace of new vehicle sales, leases and trade-ins, which has diminished used vehicle supplies at auctions. In addition, vehicle owners are holding onto their cars longer – industry statistics say the average age of a vehicle on the road now is 11 years – another crimp in the auction vehicle pipeline. On top of that, there are more dealers buying vehicles at auctions. The lanes are more crowded and there’s greater competition from online buyers for independent and franchise dealerships. All that means one thing: Dealers who want to maintain, if not grow, their used vehicle sales

auctions you rely on to source inventory. Simply put, you need to cast a wider net and review more cars to ensure you and your buyers don’t come home from auctions

empty-handed, or, worse yet, bring a bunch of second-rate cars back to your dealership. I’ve come across three best practices from independent and franchised dealers who have met the current used vehicle sourcing challenge with an effective and fresh perspective. Go beyond “tried and true” auctions: Dealers say relying on one or two local auctions isn’t enough in today’s era of tight used vehicle supply. Many dealers have doubled or tripled the number of wholesale auctions they use to acquire used vehicles.

Get online: A growing number of dealers are sourcing a portion of their auction vehicles using online platforms from auction providers. a larger number of vehicles in a more timeStill, there are many dealers who prefer physical auctions, and some who refuse to buy online at all. The resistance comes from a belief that they might purchase. Many of those dealers are concerned that a vehicle purchased online will show up at the dealership with an unpleasant

across several state lines. dealers/buyers. It means traveling farther and going beyond the familiar. It also adds greater money because of the additional costs for transportation and related fees. The good news: Every dealer faces the same challenge, which means those who are

report or other disclosure. I faced the same challenge when I was a dealer. At my store, we bit the bullet and went online to properly feed our inventory needs. We recognized there wasn’t any other way to get the cars, sales volumes and inventory turns we To be sure, we had a few surprises when the vehicles arrived at our dealership. But when that occurred and we initiated auction arbitration

edge over their competitors.

RICH TRADITION 71 Years of Helping Independent Dealers Succeed ! Colorado Independent Automobile Dealers Association Get Both CIADA and NIADA Memberships for only $225 CIADA has been helping Independent Dealers for 71 years. This non-profit trade association was established in 1941 to represent car dealers in Colorado. CIADA has a presence before the state legislature and becomes involved with the regulatory agencies whenever necessary. CIADA is the only trade association in Colorado representing the Independent Used Car Dealer. The association is organized to assure that control of the policies and activities of the industry is in the hands of active dealer members. CIADA is dedicated to combating legislation that is unfavorable to used motor vehicle dealers. Alone, a single dealer has little chance of successfully combating legislation and rules that will be harmful to his/ her business. Dealers who are united under the CIADA banner have a voice that is commanding and powerful. CIADA sends important news and information about the automobile industry to members through the CIADA Insider Magazine, the Used Car Dealer national magazine and email alerts. These publications will keep you informed on issues likely to affect your business. CIADA is recognized throughout Colorado as the official voice of the used car dealer. The association has an established record of accomplishment and fair dealing. Representatives of CIADA are welcomed and respected by officials of every regulatory agency that deals with the used car industry. CIADA proudly includes in its membership dealers of all sizes, from the smallest to the largest. Its strength is in the devotion of its individual members. So whether your business is large or small, you are urged to join the progressive association, an association dedicated to serving you, the Independent Used Car Dealer. CIADA provides an up-to-date and user friendly website packed with information ranging from Business Partners to requirements for obtaining a dealer license and an online store for all your form and business needs. CIADA has numerous educational opportunities including a weekly State approved Pre-Licensing class and regularly scheduled Title and Compliance seminars. CIADA REINTRODUCES “VIP CARD” - Join now and receive more than $600 worth of special discounts and reduced fees.. CIADA members have free access to NIADA.tv for additional business training and information. CIADA is always looking for programs and services that are beneficial to the Independent Dealer.

Membership dues are $225 for 12 months from the date you join and your National IIADA dues are included. Call CIADA 303-239-8000 with questions. www.CIADA.org

with the resolution. As the old saying goes, the squeaky wheel gets the grease. A related tip: To help mitigate the risk of to vehicles with auction- or dealer-generated condition reports (with a score of 3 or better) to better size up each car’s potential risks. Speed up your vehicle research and reviews: hours, twice a week, to review auction run lists acquisition parameters. On a per-car basis, we averaged 10 minutes to access condition reports and valuation guides and determine our bidding strategy. Over time, we were able to reduce that to about one minute per vehicle, thanks to technology and tools that helped us streamline our research process to determine if a car was worthy of our attention. Likewise, the tools when we acquired vehicles through online auctions. of research you conduct to avoid surprises when auction-purchased cars arrive at your dealership. Taken together, these three best practices will go a long way toward helping you acquire all the cars you need from auctions and doing so in

BY TODD KINZLE

CO-FOUNDER AND OPERATIONS DIRECTOR OF AUCTION GENIUS (WWW.AUCTIONGENIUS.COM) AND A FORMER INDEPENDENT DEALER IN LONGMONT, COLO.

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D E A L E R S H AV E S E E N T H E E R R O R O F T H E I R PA S T WAY S A N D A R E E N J OY I N G T H E S P O I L S O F T H E I R M O R E D I S C I P L I N E D L A B O R

2013: What’s In Store The available resources for that are at an

there are certain areas of the industry that

done either at point of sale or on seasoned

also helped stabilize the dollar losses, as the vehicles were repossessed earlier and in better condition and thus earned larger

Rates will depend on the resource, aging, recourse aspects, performance and

The other factor was renewed focus on underwriting and the overall collection

receivables in a timely fashion so as not to again sporadic at best, which pretty much set the tone for all facets of the business for

dealers I have the distinct privilege of

and the number as a percentage of sold to the resurgence of subprime and special collections dollars to improve as well as The biggest thing to affect our industry

due mostly to the continued focus on the

standards dictated rather than sell as

operations, from top to bottom, on

It has reached out to a few dealers on a new formal regulations have been drafted,

on the cash being generated instead of We will see those factors continue Though funding sources have become more readily available, overall most dealers will be focusing again on generating the capital necessary to run their businesses from their

We did dodge a fairly substantial bullet more important, the bill that was vetoed

question will be the quality of those customers and the availability of

affected California, passing tight new

Here is the best advice I can give to to grow aggressively through borrowing,

drastically in the coming year, so it will still

Even though the prices somewhat leveled off during the last half of last year, the numbers still seem to be dwindling for

Having said that, I still see it being

the willingness to educate some institutions

received quite a bit of interest recently

included some stabilization from a dollar loss standpoint, but from a number loss standpoint, there was a slight increase or That was driven by a couple of factors,

BY BRENT CARMICHAEL

EXECUTIVE CONFERENCE MODERATOR NCM ASSOCIATES INC. BCARMICHAEL@NCM20.COM

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COMPLIANCE OVERDRIVE

Unintended Express Warranties: What Sales Staff Says Matters There’s no question that what a dealer says to a customer as part of the sales

the salesperson says can affect a transaction

with facts about the inventory available Encourage potential buyers to take a test drive: Also encourage

F&I department and what’s documented

your sales team is communicating and, or get a vehicle history report and other information about the car so they have

also about what is being communicated No matter how accurate and compliant

functionality and condition of the vehicle

disconnects from promises made during the sales process, you could be facing a

the customer is told the car had two prior

Though the law is different in every state, most have passed some version of the model Uniform Commercial Code

also tell a customer the car has never been in an accident when in fact he or she doesn’t

warranty is created by the seller when it

farfetched, but a dispute about whether

buyer relating to the goods, which becomes

one of numerous inconsistencies between promises and documentation by the seller and what was delivered to the buyer in the

The elements are pretty broad and cover a wide range of common statements a

some situations, disclaimers or waivers can be enforced if the sales contract includes a

Whether a given statement is a statement warranty) or merely sales puffery (not an

for its decision on arbitration clauses and if a salesperson says to a potential buyer, part of the sales discussion, the promise is

up his or her car after the sales contract is

by simply being careful about representations about vehicle features

branding of vehicle titles can help prevent warranty and words or conduct disclaiming or limiting the warranty must be interpreted

the disclaimers or limitations will not be

promises the car comes with a new spare tire and a used one is delivered, a written

have to be in writing and it doesn’t require

warranty, but it could also be a fraudulent misrepresentation, unfair or deceptive act,

them to light before an agreement is in which customers are unhappy because

In short, you can’t give with one hand and

during the sale and what was delivered, the

Creating consistency throughout the the lines of communication between the sales staff and F&I team are open can

from happening? Tell your sales staff that what they say matters and why: A salesperson

ultimately saving time

promises are wiped out by a disclaimer in

BY CHIP ZYVOLOSKI

Train your staff on proper sales techniques: That includes arming them

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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CIADA Insider Jan/Feb 13