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2011 IIADA ANNUAL GOLF TOURNAMENT & AWARDS DAY INFO LSO Indiana Legislative Update A PLUS 2011 National Quality Dealer Winner

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Office of the Indiana Secretary of State 200 W. Washington St. Indianapolis, IN 46204

Auto Dealer Services Column Submission Column Title: Follow Through Author: Carol Mihalik, Associate General Counsel Date: June 15, 2011 Publication Date: August 1, 2011 In any situation, ask yourself: What strengths do I possess that can contribute THANK towards YOU FOR accomplishing HOSTING OUR situation? RECENT something in this Then follow MEBERSHIP DRIVES!

through. Following through is an attitude we as professionals strive to accomplish each day as we run our businesses, assist customers and work to achieve personal goals. We follow through because it shows our character, integrity and reliability. This attitude of following through remains one of the goals of the auto dealer services division of the Office of the Indiana Secretary of State. An assignment built off the overall mission statement of the office – focusing on the needs of Hoosiers and providing each citizen with superior services tailored to help them succeed. The auto dealer services division (ADSD) is one of four divisions under the direction the Office of the Indiana Secretary of State. The three remaining divisions include business, election and securities. We have identified strengths in ADSD – our people, our commitment to service and to the citizens of Indiana. We want to accomplish much and we are working on following through. Taking the professional backgrounds of nearly 20 industry professionals and merging them with the aid of technology, the division is taking great steps to follow through with superior customer service. The Plates On-Demand program is a prime example. Within the last several years, we made it possible for automotive dealers like you in Indiana to access and print

temporary plates online at their dealerships through the Plates On-Demand program. The program helps improve efficiency for dealers by allowing them to print the plates as needed, eliminating the old system’s seven-day processing period. While technology will continue to play a significant role in our services, we also understand the importance of face-to-face interaction with Hoosiers. This year the division is traveling to several counties throughout the state to educate vehicle buyers and owners of their rights under the law. Part of our outreach focuses on helping Hoosiers keep the car’s title in their mind – our Title In Mind campaign. As a car buyer mulls around his or her new vehicle’s color, the sun roof and other accessories, we also want them to keep their car’s title in mind. As you may know, Indiana law requires dealers to deliver a vehicle’s title to the buyer within 21 days of purchase. After this legal window expires, buyers – under the law – can request the dealer to provide these titles within 10 days. At times, our division may step into help ensure all players – buyers and sellers – are following through on their responsibilities. While these are two solid examples, there are areas we can improve our customer

service. Helping educate both dealers and consumers about the latest legislation is a start. Also, we are striving to become a more accessible, transparent division – from updating our division’s website to getting Hoosiers in touch with a real person on the other end of the phone line. Most importantly, allowing businesses to get back to business by helping cut the red tape. Yet, what makes this pledge of following through to improve customer relations and services to you – our clientele – more than just political banter? We are tough enough to follow through. Before the Plates On-Demand program or the Title In Mind campaign were implemented, they were ideas – ideas many thought would not work. In the face of doubt, we followed through and delivered. The Office of the Indiana Secretary of State’s mission is to continue to focus on the needs of Hoosiers and provide each citizen with superior services tailored to help them succeed. The auto dealer services division is committed to this mission and will follow through. Carol Mihalik is the associate general counsel for the Office of the Indiana Secretary of State. She oversees the operations of the office’s auto dealer services division. Please, feel free to contact the office at 317-232-6532 or Carol directly at cmihalik@sos.in.gov.

This year the division is traveling to several counties throughout the state to educate vehicle buyers and owners of their rights under the law.

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INSIDE MAGAZINECONTENTS

6 2011 IIADA Annual Golf Tournament & Awards Day Info 14 Indiana Legislative Update 16 2011 NQD Winner

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ADVERTISERSINDEX ADESA.................................................................................. 11 AutoTrader.com........................................................Back Cover Chase ................................................................................... 17 Dyer Auto Auction . ........................................................20, 21 Indiana Auto Auction ........................................................... 14 Kesler-Schaefer Auto Auction . ................................................9 Lohman Companies ...................................... Inside Back Cover Manheim.com........................................................................ 24 Manheim Indianapolis . .......................................................... 3 Protective...................................................... Inside Front Cover SmartAuction ........................................................................ 13 TD Auto Finance.......................................................................5 United Acceptance ............................................................... 15

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.

CAR LINES IS PUBLISHED 10 TIMES PER YEAR BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-6403838. 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 CAR LINES 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 © 2011 BY NIADA SERVICES, INC.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

Board of Directors IIADA EXECUTIVE DIRECTOR Debbie Andersen P.O. Box 1393 Crown Point, IN 46308 Phone: (800) 310-3112 Fax: (219) 663-5294 iiada@comcast.net BOARD OF DIRECTORS Dave Allen (Crockett) CHAIRMAN OF THE BOARD Fritz Kreutzinger VICE PRESIDENT Fritz Associates P.O. Box 168 Fishers, IN 46038 Phone: (317) 842-2228 Fax: (317) 842-7903 fritzauto@aol.com Tricia Trent SECRETARY Trent Auto Sales 1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772 Fax: (812) 882-1986 ttrent01@yahoo.com Bruce Norton TREASURER Drive1USA 1512 W 96th Avenue, Suite C Crown Point, IN 46307 Phone: (219) 661-1000 Fax: (219) 661-2950 bnorton@drive1usa.com Jennifer Cotton Dyer Auto Auction P.O. Box 115 Dyer, IN 46113-0115 Phone: (219) 865-2361 Fax: (219) 322-1761 jencotton@comcast.net

Kim Graham Kim Graham, Inc. 1648 A US 31 S Greenwood, IN 46143 Phone: (317) 888-0100 Fax: (317) 888-8900 vehicles@kimgraham.com

John Stumpf Wolfe’s South Bend Auto Auction 25784 Western Ave. South Bend, IN 46619 Phone: ­­(574) 289-7767 Fax: (574) 288-2731

Ed White White’s Auto Sales 1105 McKinley Avenue Rensselaer, IN 47978 Phone: (219) 866-7553 Fax: (219) 866-7256 edwhite123@att.net

Doug Alvey First Class Auto Sales, Inc 695 W 900S Hebron, IN 46341 Phone: (219) 996-2600 Fax: (219) 531-4628 talvey65@yahoo.com

Tony Houk Kesler-Schaefer Auto Auction, Inc. 5333 W. 46h Street Indianapolis, IN 46253 Phone: (317) 297-2300 (800) 959-5722 skesler@ksaa1.com

Sharon Brennan Fritz in Fishers 8599 E 116th Street Fishers, IN 46038 Phone: (317) 842-2228 Fax: (317) 842-7903 sharonb@fritzinfishers.com

Tyler Trent Trent Auto Sales 1327 N 6th Street Vincennes, IN 47591 Phone: (812) 882-3772 Fax: (812) 882-1986 ttrent01@yahoo.com Ronald P. Povinelli Sr. Circle City Enterprises Inc. 5555 Southeastern Ave. Indianapolis, IN 46203 (317) 351-8970 ccerpp@yahoo.com Harold Drees H.T.D., Inc. 200 E Main Street Thorntown, IN 46071 Phone: (317) 402-2312 Fax: (765) 436-7222 htdinc@msn.com

Andrew J. Inabnitt Approval Auto Credit Inc. 9825 Huggin Hollow Rd. Martinsville, IN 46151 Phone: (317) 422-8001 Fax: (317) 422-8020 David D. Baldwin II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 Phone: 260.357.0099 dbthesecond@yahoo.com Andy Zay Zay Leasing & Rentals 4957 N. Broadway Huntington, IN 46750 (260) 356-1588 azay@sbcglobal.net

Tony Del Real Del Real Auto Sales 3857 State Road 38 E Lafayette, IN 47905 Phone: (765) 446-9204 Fax: (765) 446-9143 tdelreal@delrealauto.com

IN MEMORIAM

J.D. Smith, owner of South Bend Mishawaka Auto Auction and Bill’s City Wide Towing passed away on May 27. Born in 1941, J.D. was an avid supporter of the South Bend Center for the Homeless and D.A.R.E. He loved his family, cars and adventure. Memorial contributions may be made to the South Bend Center for the Homeless or the Goshen Center for Cancer. We extend our deepest sympathy to the Smith family.

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The CARLAWYERS

BY TOM H U DSO N AN D N I K K I MU N RO

“Dealers need to be concerned about discrimination lawsuits based on some of these same theories.” Welcome back to our monthly collection of selected legislative and enforcement highlights, and a recap of some of the many auto sale and financing suits we track each month.

Remember, what we report here is not every recent development, just ones we think are of particular interest to auto dealers. Note this column does not offer legal advice. You should consult your dealership lawyer with any legal questions. We include items from other states. Why? We want you to be able to see new legal developments and trends. Also, another state’s laws might be a lot like your own state’s laws – if AGs or plaintiffs’ lawyers are pursuing particular types of claims, those laws and claims might soon appear in your state. As always, though, there is no substitute for checking with your own lawyer before you rely on anything we report or if you have any questions. FEDERAL LAW

On May 16, the Federal Trade Commission announced it had completed investigations of nearly 50 auto dealers across the country to assess their compliance with the FTC’s Rule Concerning Preservation of Consumers’ Claims and Defenses, more commonly known as the Holder in Due Course Rule or the Holder Rule. The FTC’s investigations found compliance with the Holder Rule among dealers. It requires them to include in their finance contracts a notice that finance companies, banks and others who buy the contracts are subject to the claims and defenses consumers may assert against dealers. Because all of the responding dealers included the required Holder Notice in their finance contracts, the FTC staff is closing its investigations. The FTC also reminds dealers, due to the Dodd-Frank Act, as of July 21, the Holder Rule will require the Holder Notice in finance contracts up to $50,000 in the amount financed. How good are your privacy safeguarding procedures? On May 3, the FTC announced it settled charges against two companies – Ceridian Corporation and Lookout Services Inc. – for claiming they would take reasonable measures to secure the personal information of employees of

their business customers but failed to do so. The alleged misrepresentations about the companies’ data security measures became known to the FTC after security breaches occurred at both companies. The settlements bar misrepresentations by the companies, including misleading claims about the privacy, confidentiality, or integrity of any personal information collected from or about consumers, and require the companies to implement a comprehensive information security program and obtain independent, thirdparty security audits every other year for 20 years. Ouch! On May 11, the Treasury Department announced the hiring of senior leadership for the Consumer Financial Protection Bureau; Sendhil Mullainathan will serve as assistant director for research and Patrice Ficklin will be assistant director for fair lending. The new bureau continues to add staff as it gears up to assume its duties as prescribed in the Dodd-Frank Act. On May 5, the U.S. Justice Department announced a settlement with Citizens Republic Bancorp Inc. and Citizens Bank of Flint, Mich., resolving allegations of lending discrimination against AfricanAmerican consumers. The Justice Department charged CRBC, as the successor to Republic Bank, violated the Fair Housing Act and the Equal Credit Opportunity Act by serving the needs of Detroit’s predominantly white neighborhoods to a significantly greater extent than it served the credit needs of majority African-American neighborhoods. The settlement, which awaits court approval, requires CRBC and Citizens Bank to invest $1,625,000 in matching grants to homeowners to aid in neighborhood stabilization, invest $1,500,000 in a special financing program to increase the amount of credit available to majority African-American areas around Detroit, and spend $500,000 in outreach to potential customers. Citizens Bank also agreed to open a loan production office in a majority AfricanAmerican area of Detroit. In another federal proceeding involving discrimination in mortgage lending, on April 25, 2011, the FTC announced its administrator was sending 3,162 refund checks totaling $1,500,000 to

Hispanic borrowers allegedly harmed by the discriminatory lending practices of Golden Empire Mortgage Inc. and Howard Kootstra. The commission previously alleged Golden Empire and Kootstra illegally charged Hispanic consumers higher prices than nonHispanic white consumers and that these price disparities could not be explained by credit characteristics or underwriting risk. Dealers need to be concerned about discrimination lawsuits based on some of these same theories. LITIGATION

Potential Financing Sources Had Permissible Purpose to Access Car Buyer’s Credit Report Where Dealership Applied for Credit on Buyer’s Behalf Without Buyer’s Consent: An individual went to a dealership and signed a purchase order for a vehicle. Even though the individual told the dealership she would seek financing on her own, the dealership allegedly applied for credit electronically on her behalf with two finance sources. Both finance sources made inquiries into the individual’s credit and declined to extend her credit. The individual sued the two finance sources for violating, among other statutes, the Fair Credit Reporting Act for accessing her credit report without a permissible purpose. The U.S. District Court for the Western District of Kentucky granted the defendants’ motions to dismiss the complaint. The court noted both finance sources believed they were acquiring the individual’s credit information in connection with an extension of credit – a permissible purpose – even though the credit application they received was not signed by the individual. See Wells v. Craig & Landreth Cars Inc., 2011 U.S. Dist. LEXIS 43931 (W.D. Ky. April 21, 2011). Dealer Engaged in Unauthorized Practice of Law by Charging Fee for Pre paring RISCs: Auto buyers filed a class action against a dealership claiming it engaged in the unauthorized practice of law and violated the Arkansas Deceptive Trade Practices Act by charging a document preparation fee for preparing retail installment contracts. The trial court ruled in favor of the plaintiffs, and the Arkansas Supreme Court affirmed. The high court found the dealership would

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have engaged in the unauthorized practice of law by completing legal forms unless it acted within the following parameters: the buyer declined to employ a lawyer to prepare the documents and authorized the dealership to do so; the forms were approved by a lawyer either before or after the blanks were filled in; the forms were used only for simple retail transactions that arose in the usual course of the dealership’s business; the forms were used only in connection with transactions actually handled by the dealership; the dealership did not charge for filling in the blanks; and the dealership did not give advice or opinions as to the legal rights of the parties. Because the dealership charged a documentary fee for filling in the forms, the high court found that the dealership engaged in the unauthorized practice of law. See Campbell v. Asbury Automotive, Inc., 2011 Ark. LEXIS 149 (Ark. April 14, 2011). Delay in Repairs Did Not Breach Express Warranties Where Repairs Were Ultimately Successful: An individual bought a travel trailer from a dealership and brought the trailer back to the dealership eight months later, complaining about bubbling paint and other issues. The dealership fixed the other issues, but notified the individual the trailer would

need to be returned to the manufacturer to have the bubbling paint repaired. The manufacturer repaired the bubbling paint and returned the trailer to the dealer. Two months later, the individual picked up the trailer and sued the dealership for violating the Song-Beverly Consumer Warranty Act by failing to repair the defects within 30 days. The trial court granted summary judgment in favor of the dealership, and the California Court of Appeals affirmed. The appellate court found the Warranty Act requires repairs within 30 days, unless conditions beyond the control of the manufacturer or its representative cause delay, in which case the goods must be returned as soon as possible. The appellate court concluded there was no breach of express warranty because the repair was ultimately completed. See Kreizenbeck v. Dan Gamel’s Rocklin RV Center, 2011 Cal. App. Unpub. LEXIS 2773 (Cal. App. April 15, 2011). Demand to Return Spot Delivered Vehicle Violates Automatic Stay: An individual filed a Chapter 13 bankruptcy petition while he was in possession of a vehicle under a conditional delivery agreement. After learning of the bankruptcy filing, the potential assignee of the individual’s retail installment contract rejected the financing, and the

dealership demanded return of the car. After the individual returned the car, he filed a motion for turnover, and the dealership countered the vehicle was not property of the estate because a contract was never formed and ownership was never transferred. The U.S. Bankruptcy Court for the District of Montana disagreed with the dealership and ordered it return the auto to the individual. The court found the individual had an interest in the vehicle as of the petition filing date and the dealership violated the automatic stay by demanding the individual return it post-petition. See In re Henry, 2011 Bankr. LEXIS 1463 (Bankr. D. Mont. April 13, 2011). So there you have it! Stay legal, and we’ll see you next month. BY TOM H UDSON AND NIKKI MUNRO Tom (thudson@hudco.com) and Nikki (nmunro@ hudco.com) are partners in the law firm of Hudson Cook LLC. Tom is the author of several books, are available at www.counselorlibrary.com. He also is the publisher of Spot Delivery®, a monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW®, a monthly report of legal developments in all states for the auto finance and leasing industry (not to be confused with the book). Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. Spot Delivery, CARLAW and the books are produced by CounselorLibrary.com LLC. For information, call 410-865-5411 or visit www. counselorlibrary.com. Copyright CounselorLibrary. com 2011, all rights reserved. Single publication rights only, to the Association. (6/11). HC# 4834-5395-5337.

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BHPH

Understanding Buy Here-Pay Here Customers:

The Findings Four out of five BHPH customers conduct research before visiting the dealership. According to the study, 81 percent of BHPH vehicle buyers said they performed either some or a great deal of research as part of the car shopping process before going to a dealership compared to the 19 percent who stated they conducted very little research.

First Step in the Shopping Process

2011 BHPH Buyer Study from AutoTrader.com In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader. com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part

Key Messages to Communicate Focus on Approval: Since approval is a BHPH shoppers’ t Seventy percent of BHPH shoppers approval should take precedence in BHPH dealer advertisi Seventy BHPH that’s shoppers regularly regularlypercent use the of Internet; as much as use the Internet; that’s as much as traditional shoppers for general purposes. However, carabout buyers do not the Internet vehiclea dealership s traditional shoppers for general purposes.BHPH Talk Speed ofuse Process: Whenfor making shopping as much as traditional auto buyers. However, BHPH car buyers do not use the findingthat’s a dealer whoas can handle the vehicle pur Seventy percent of BHPH shoppers regularlyinterested use the Internet; as much traditional Internet much asBHPH study. good is the 83 percent shoppersfor forvehicle generalshopping purposes.asHowever, car The buyers do news not use Internet of forBHPH vehicledealers com traditional auto buyers. shopping as much as traditional auto buyers. or less. As a result, this message is an important one to inc “Get Your Car in Less Than 2 Hours!”

study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within Understanding Buy Here-Pay Here Customers: the previous 18 months. 2011 Buyer Study fromaffirm AutoTrader.com TheBHPH results of this study for the first time many common perceptions among the Word count: 619 BHPH community about the priorities and behaviors of BHPH customers. In October 2010 and January 2011, the There Nationalare Alliance of Buy Here-Pay Here Dealers also some findings about their (NABD) andnew AutoTrader.com teamed up Internet for a groundbreaking study to define the consumer usage asthe well as the amount research profile of average BHPH customerofand to understand the unique shopping needs of this customershoppers segment. The study included focus groups conducted in Los BHPH aretwo-part conducting prior qualitative to Angeles and Dallas and a national online survey among 606 BHPH buyers who visiting a dealership. Finally,quantitative we identify purchased withinBHPH the previous 18 months. key messages dealers can focus on to more effectively target their advertising The results of this study affirm for the first time many common perceptions among the BHPH and influence shoppers duringofthe community aboutBHPH the priorities and behaviors BHPH customers. There are also some new shopping process. findings about their Internet usage as well as the amount of research BHPH shoppers are

Consider Reporting Customer Payments to Credit Bureaus customers’ payments appear on their credit report; howeve would like their payments reported. As a result, BHPH dea such as, “We Can Help You Rebuild Your Credit.” Just be you can follow through on it. Also, don’t forget to vet this

Key Messages toBHPH Communicate conducting prior to visiting a dealership. Finally, we identify key messages dealers can KEY MESSAGES TO COMMUNICATE Focus onfour Approval: Since approval is a BHPH shoppers’ top concern, messages about is financing CONSUMER OF THE focus on to more PROFILE effectively target their advertising and influence BHPH during the conducting With outshoppers of five shoppers research prioron to visiting a dealership coupled with Focus Approval: Since approval a the AVERAGE CUSTOMER shopping process. approval should take precedence in BHPH dealer advertising – both online and offline. BHPH shoppers’ top concern, messages for high percentage of BHPH customers already online, the implication is there’s an opportunity

Withdealers four outtoofreach five shoppers conducting about financing takespace BHPH and influence their shoppers by tapping intoapproval the online should automotive With four out ofto fivevisiting shoppers conducting research prior to visiting a dealership coupled with the research prior a information dealership precedence inthe BHPH dealer advertising Talk about Speed ofmessages Process:and When making athat dealership selection, many BHPH shoppers–are with advertising resonate with targeted consumer. high percentage of BHPH customers already online, the implication is there’s an opportunity for coupled with the high percentage of BHPH both online andprocess offline. quickly, according to the interested finding to a dealer and whoinfluence can handle the vehicle purchase BHPH dealers their shoppers by tapping into theofonline automotive space customers alreadyreach online, the implication Talk about Speed Process: study. The good news is 83 percent of BHPH dealers complete buyingneeds process inWhen two hours It’s important for BHPH dealers to align their advertising with the unique of BHPH with advertising messages and information that resonate with the targeted consumer. is there’s an opportunity for BHPH dealers making a dealership selection, many BHPH 39 Years Old 47 Years Old shoppers. The need financing approval thetoshopping process for BHPH shoppers. or less. As a and result, thisformessage is an important one include in your advertising. For example, to reach influence their shoppers by drives shoppers are interested finding a dealer who Nearly two out of three BHPH customers enter the process with securing financing or identifying “Get Your Car in Less Than 2 Hours!” <$50k Annual >$50k Annual Income tapping into the online automotive space It’s important for BHPH dealers to align their advertising with uniquepurchase needs of BHPH can handle thethevehicle process awith dealer as The theirneed first priority. this information in line with whatfor theBHPH BHPHshoppers. industry has Income advertising messages andWhile information shoppers. for financing approval drivesquickly, theisshopping process according to the study. The good long suspected, the key is to align your advertising messages with the shopping priorities of your Consider Reporting Payments to Credit Bureaus: Only 37 percent of BHPH that resonate with the targeted consumer. Nearly two out ofCustomer three BHPH customers enter the process with securing financing or identifying news is 83 percent of BHPH dealers complete 44% Married 60% Married customer base. Effectively communicating the right messages in your advertising may It’s important for BHPH dealers to align customers’ payments appear on their credit report; however, 63 percent of BHPH customers the buying process two the hours or less. As a has a dealer as their first priority. While this information is in line withinwhat BHPH industry dramatically the chances of turning into actual their advertising with theis unique of a shopper theirimprove payments reported. As a result, BHPH dealers should consider using messages result, this an message iscustomer. an important one toof your longlike suspected, the key to alignneeds your advertising messages with the shopping priorities Poor Credit Rating Excellent/Very Good Credit would shoppers. TheYou needRebuild for financing include your Forthis example, suchBHPH as, “We Can Help Your Credit.” Just beinsure, you advertising advertise Rating Seventy percent of BHPH shoppers regularly use the Internet; that’s as much as traditional customer base. Effectively communicating the right messages inifadvertising. your maymessage, approval drives the shopping process for shoppers for general purposes. However, BHPH car buyers do not use the Internet for vehicle in the Shopping Process Car Less Than 2 Hours!” youFirst can Step follow through on Also, don’t forgeta shopper to“Get vet Your this message with your legal counsel. dramatically improve theit.chances of turning into an in actual customer. shopping as much as traditional auto buyers. BHPH Buyers vs. Traditional Buyers Consumer Profile of the Average Customer BHPH Buyers vs. Traditional Buyers 58% Female 50% Female

BHPH shoppers. Nearly two out of three The Findings Four out of five BHPH customers conduct research before BHPH visiting the dealership.enter According customers the toprocess with First Step insome the Shopping Process the study, 81 percentSofEBHPH either oror a great deal of a dealer as securing financing identifying V E Nvehicle T Y buyers said they performed research as part of the car shopping process before going totheir a dealership comparedWhile to the 19 first priority. this information PERCENT OF percent who stated they conducted very little research.

is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your With four out of five shoppers conducting research prior to visiting a dealership coupled with the advertising may dramatically improve the high percentage of BHPH customers already online, the implication is there’s an opportunity for chances of turning a shopper into an actual BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer. customer. BHPH SHOPPERS R EG U L A R LY U S E THE INTERNET

It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The 10 need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has CAR LINES AUGUST 2011 long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer. 10 Process First IN_0811.indd Step in the Shopping

Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

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DRIVING TR AFFIC

Telling Your Value Story with Video Online video continues to increase in popularity among auto shoppers. Video

brings vehicles to life in a way photos just can’t. Sight, sound and motion make it more emotional and engaging for viewers. As a result, video is a powerful merchandising tool that can help influence shoppers to not just buy your make and model, but to buy it from you.

Video Facts

• M  ore than 75 percent of Internet users watch video online • 5 0 percent of consumers watch videos while shopping for a car • 6 6 percent of car shoppers would watch more video if it were available • 7 2 percent of shoppers are more likely to buy a product or service when a video is used

voiceover with a custom script. It’s a very convenient and easy tool that can effectively showcase any vehicle you are trying to sell.

Leverage Manufacturer Assets

You don’t always have to make a homemade video to communicate the message. Most OEMs will have video assets available for your use, so use them when you can’t use the other two options I mentioned already, or use them in conjunction with a do-it-yourself or pan-and-scan video. If you are participating in a manufacturer’s certified pre-owned program, it’s a great opportunity to leverage these assets as many manufacturer’s have commercials specifically dedicated to the CPO message.

What You Can Do

First, let’s talk about where you should be posting videos online. It’s not just about a video’s content – the key is in the wide distribution of your videos. It doesn’t matter how good the video itself may be if it’s not being seen by auto shoppers. According to an AutoTrader.com Video Survey, vehicle shoppers say they expect to find videos on dealership sites, manufacturer sites and independent sites such as AutoTrader.com. Therefore, it is critical for automotive advertisers to place video content in front of all potential customers. Don’t forget about video sites like YouTube, too. Now that you know where you’re going to be posting your videos, let’s talk content.

Do-It-Yourself Videos

VIDEO

Do a complete video walk-around. Give shoppers a sense of what it would be like to drive and own the car. Keep videos to less than one minute. Shoppers will often lose interest if a video is too long. State the facts. Include price but keep information objective to avoid a sales pitch. Include information that cannot be gained from photos. (i.e., warranty, single owner, non-smoker, etc.) Reinforce the retention of information. Show what you are talking about (i.e., show the odometer while talking about mileage).

Use Pan-and-Scan Video

Consider using pan-and-scan videos. AutoTrader.com offers a personalized, video solution called FastAds that’s based on this technology. This option allows you to use vehicle photos and easily turn them into a virtual walk-around video, narrated by a

Merchandise Your Dealership in a Video, Too

So far, we’ve only focused on videos about your inventory, but your online marketing is about much more than the vehicles you sell. Building confidence in your capability as a dealership is just as important in getting shoppers to choose you. Tell your story. Do a store video tour and highlight amenities and departments. Show customers why you are a dealership they should do business with. Use customer testimonials videos. Build a strong image for your prospective customer. Include dealership information. Be sure to incorporate your contact information, website address, map and directions. Post your videos on a multitude of sites. Include user-generated sites such as YouTube and other social networking sites, as well as your dealership site, independent sites and anywhere else your inventory is listed. BY H OWAR D P O LI R E R Howard Polirer is the director of industry relations for AutoTrader.com. He has helped train more than 10,000 dealers in over 200 cities across the U.S. on the industry’s best practices to reach automotive consumers. He can be reached at howard.polirer@autotrader.com.

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INDIANA LEGISLATIVE UPDATE BY M I C HAE L J. SO L AR I

I hope everyone is having a great summer. Although the Legislature finished back in April, I just wanted to discuss a few items that will be going on during the interim. The Legislative Council met in early June and set the schedule for the upcoming Interim Study Committees. None of the committees are now scheduled deal with auto dealer issues. However, Debbie and I, as well as representatives from the association, will continue to work with the Dealer Services Division of the Secretary of State’s office in regard to HB 1453 – 2011, which died this past session. HB1453 dealt specifically with the Dealer Services Division, by placing their jurisdiction under one section in Indiana Code. The bill also increased the fines and penalties for various infractions, which raised a lot of concern in our association. We hope to have most of our issues and concerns addressed before the language is drafted this fall. If you have any comments or questions regarding this specific issue,

please don’t hesitate to contact our office. One final note; given the session is finished, now is a great time to get to know your state legislators. Members of the General Assembly love hearing from you. Feel free to give them a call and set up a meeting over coffee, or invite them out to your business and show them around. The more legislators know our association, the better off we will fare at the General Assembly. If you are unsure of who your state representative or senator is, contact our office or visit http://www.in.gov/ silverheader/Welcome.do?url/=http:// kyeo-in.egis.39dn.com and enter your address in the space provided to find your elected officials. Michael J. Solari Short Strategy Group Inc. 501 Indiana Ave., Suite 200 Indianapolis, IN 46202-3199 317-917-0800 317-917-0880 michael@shortsighted.com

Business is Getting Better The used motor vehicle industry is alive and well, and news of independent dealer sales eclipsing franchise dealer sales of used autos over the last few months is even more encouraging. The 13th edition of NIADA’s Used Car Industry Report brings you a snapshot of all of this activity and provides valuable insight in all aspects of dealer operations. The complete 2011 edition, unveiled at NIADA’s 65th Annual Convention & Expo last month, is available for viewing and download at www.niada.com/ publications.

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Dealers Want Better Auto Transport Options from Auto Auctions

SO, WHAT IS THE BOT TOM LINE? LIKE ANY SAV V Y CONSUMER, AUTO DEALERS WANT OPTIONS.

Results from ShipCarsNow’s 2011 survey of independent and franchise auto dealers show dealers want more auto transport options when buying vehicles online from wholesale auto auctions.

Preliminary results show the number of dealers who buy pre-owned vehicles via online auction is steadily increasing year over year, and those auctions are increasingly located farther away from the dealership. More dealers report they are expanding their search for wholesale autos nationwide. In 2009, 75 percent of dealers reported they usually sourced inventory within 50 miles of their dealership and only 14 percent were shopping as far away as 500 miles or more. In ShipCarsNow’s 2011 dealer survey, 35 percent of dealers reported they shop nationally and more than half of the survey respondents said they planned to buy more inventory online in 2011 compared to 2010. So, what does this mean for online and simulcast auto auctions? ShipCarsNow reports 63 percent of dealers

surveyed said they think online auto auctions should improve transportation options. Almost half said they would purchase more vehicles online if auctions improved auto transport services and increased reliability of condition reports. Suggestions that ranked highest included providing the transportation cost before or during the bidding process and the ability to see discounts for multiple vehicle shipments, as well as the ability to combine vehicles with other dealers’ for economies of scale. Dealers also reported they’d like to see multiple auto transport bids, and that price and reliability are key requirements for any auction offering auto shipping services. So, what is the bottom line? Like any savvy consumer, auto dealers want options. They want to shop where they want, and when they want. They want vehicles delivered safely, timely and economically. And they want the transaction process to be intuitive and hassle-free. Innovative auto transport companies and online auto auctions need to collaborate to develop the tools and services that dealers need. For more information about ShipCarsNow’s 2011 Dealer Survey, visit www.ShipCarsNow.com; the complete survey report will be available soon.

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NIADA Honors 2011 Ring of Honor Award

Joe Lescota, Northwood University’s automotive marketing department chair, was named the winner of the 2011 Ring of Honor award at the National Independent Automobile Dealers Association (NIADA) 65th Annual Convention & Expo at Caesars Palace last night. Inductees to NIADA’s Ring of

Honor are a prestigious and honorable circle of men and women who have dedicated their careers to the automobile industry, according to Michael R. Linn, NIADA’s CEO. Lescota, who has more than a quartercentury of retail automotive experience, is the instructor for NIADA’s Certified Master Dealer Program and sits on the board of trustees of the NIADA Foundation. “He has filled every management position within all departments of various dealerships, including dealer operation. He quickly gained a reputation

for developing innovative management techniques leading to reduced employee turnover and increased customer retention and satisfaction,” Linn said. “Joe is a person for whom I have great admiration and respect.” Lescota has conducted workshops and educational seminars for General Motors, Ford, Chrysler, Honda and many other automakers. He served as the program director for the Automotive Satellite Television Network and helped to introduce college credit courses into dealerships nationwide via distance learning. In addition, Lescota, was named Man of the Year by the Association of Finance and Insurance Professionals in 2006 and has received Northwood’s Faculty Excellence Award five times in the last decade. He is the twenty-first inductee to the NIADA Ring of Honor.

L E S C OTA H A S C O N D U C T E D W O R K S H O P S A N D E D U C AT I O N A L SEMINARS FOR GENER AL MOTORS, FORD, CHRYSLER, J O E LESCOTA (L)

MIKE LINN (R)

HONDA AND MANY OTHER AUTOMAKERS.

Identity Theft Prevention A Good Idea The Red Flags Rule requires many businesses and organizations to implement a written identity theft prevention program to detect the warning signs, red flags, of identity theft in their day-to-day operations. The

staff of the Federal Trade Commission has heard from companies that are developing programs from across the country. Their questions, and the FTC’s answers, may help you develop a program for your dealership. For example, creditors or financial institutions must develop an identity theft prevention program even if they already comply with data security requirements such as the Health Insurance Portability and Accountability Act (HIPAA) or the GrammLeach-Bliley Act (GLB). It’s even a good idea for dealers who may not fall under a creditor or financial institution definition.

To read additional FAQs regarding the Red Flags Rule, visit the FTC’s site on the subject at http://www.ftc. gov/bcp/edu/microsites/redflagsrule/faqs.shtm.

The FTC strongly encourages reasonable data security practices, but the Red Flags Rule is not a data security regulation. Good data security practices – such as collecting only the personal information you need, protecting that information, and securely disposing of what you no longer need – help ensure personal information does not fall into the hands of identity thieves. For more information on data security, visit www.ftc. gov/infosecurity. The Red Flags Rule picks up where data security leaves off. If identity thieves do get hold of someone’s personal information, they typically use it to get goods or services from unsuspecting businesses and have no intention of paying the bill. By having companies set up procedures to look for and respond to the red flags that an identity thief is trying to use someone else’s information, the rule seeks to reduce the damage crooks can inflict both on victims of identity theft and on businesses left with accounts receivable they’ll never be able to collect. While you may be able to incorporate some of your data security practices, your identity theft prevention program is a different kind of plan aimed at preventing a different kind of harm.

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Red Flags Rule Procedures, SSN Collection The Red Flags Rule doesn’t require any specific practice or procedures for your identity theft prevention program.

It gives you the flexibility to tailor it to the nature of your business and the risks it faces. The FTC will assess compliance based on the reasonableness of a company’s policies and procedures. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program; for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business. The FTC has designed a form to help groups at low risk for identity theft put together a program. It’s available at www.ftc.gov/ redflagsrule. The Red Flags Rule also doesn’t require you use Social Security numbers or any

other specific identifying information. Whether you collect Social Security numbers or other information to verify a customer’s identity depends on the nature of your business and the risks you face. Actually, collecting a Social Security number by itself is not a reliable way to verify someone’s identity because the numbers are widely available and do not prove a person is who he or she claims to be. However, Social Security numbers can be helpful as part of a more comprehensive identity verification process; for example, as a way to check against information from other sources or as a way to get other information, like a credit report, which can be used to verify a person’s identity. It’s a good data security practice not to collect more information than you need. If you are asking for a Social Security number, but not actually using it as part of a more comprehensive authentication process, reconsider whether your business really needs to collect and maintain it.

Whether you collect Social Security numbers or other information to verify a customer’s identity depends on the nature of your business and the risks you face.

Edmunds.com Names Best Bets on Used Autos for 2011 Edmunds.com, the premier online resource for automotive information, released its 15 best used vehicle bets for 2011 in June. A total of 11 makes are represented on the list, with four makes (Ford, Honda, Hyundai and Toyota) each contributing two models.

BY SEGMENT, THE WINNERS ARE:

•Compact Sedan: 2004-2009 Hyundai Elantra •Midsize Sedan: 2004-2009 Nissan Altima •Large Sedan: 2006-2009 Hyundai Azera •Coupe: 2004-2009 BMW 3 Series •Convertible: 2004-2009 Mazda Miata •Wagon: 2004-2009 Pontiac Vibe •Compact SUV/Crossover: 2004-2009 Honda CR-V •Midsize SUV/Crossover: 2004-2009 Ford Explorer •Large SUV/Crossover: 2004-2009 Chevrolet Tahoe •Minivan/Van: 2004-2009 Honda Odyssey •Compact Truck: 2004-2009 Toyota Tacoma •Large Truck: 2004-2009 Ford F-150 •Luxury: 2004-2009 Infiniti G35/G37 •Hybrid: 2004-2009 Toyota Prius •Sport Compact: 2004-2009 Subaru Impreza WRX A team of Edmunds.com editors assembled the list, which emphasizes the most important criteria to consider when researching and deciding on a used vehicle: reliability, safety, value and availability. Eligibility was limited to vehicles ranging in age from 2 to 7 years. For more details on Edmunds.com’s selection process and for a brief description of all the cars on this year’s list, visit 2011 Used Car Best Bets at www.edmunds.com/carreviews/best-used-cars.html.

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onfirmation of success in business can take many forms. Some might consider the number of years in operation as a good sign, while others may put stock in steadily improving annual sales figures. For Scott Allen, confirmation took another form after he was named 2011 National Quality Dealer (NQD) of the Year during NIADA’s 65th Annual Convention and Expo in June. “I think it means I’m on the right track,” said the 49-year-old Texan, who’s owned and operated Auto Land in Haltom City, Texas, since 1991. Allen, a member of Texas IADA and NIADA for 17 years, is the sixth NQD from the Lone Star State, and also is a NIADA Certified Master Dealer. “I’m still a little in shock from winning the award,” he said. “I’m absolutely going to take advantage of the opportunity and, yes, we are going to be marketing it heavily. Joe (Lescota, CMD program instructor) is going to laugh at this because one of his jokes is getting a big gorilla and putting it on your building. Well, I’ve got a reason to put a gorilla on my building now.” While Allen isn’t planning to actually rent an inflatable primate, he definitely wants to promote the honor, albeit in a tasteful manner. “We’re getting a huge archway that’s probably 36 feet wide and about 20 feet high that is going to come

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across our entrance,” he said. “It’s going to say ‘Stop here and see why Auto Land is NIADA’s National Quality Dealer of the Year.’” Allen and 19 fellow candidates from across the country were judged by a Northwood University panel that looked at a variety of factors to make its selection, including contributions to the automotive industry and community involvement. The candidates compete for the national award after being named as quality dealers by their respective state associations. Involvement may as well be Allen’s middle name. Besides being active in TIADA (he’s the 2011 president elect) and the Fort Worth dealer association chapter (where he served as president from 2006 to 2010), Allen even formed a business association in Haltom City to fight unfair ordinances that threatened his dealership as well as others. Working with others, Allen said, is what’s helped him succeed. “I would say there is power in numbers,” he said. “Part of the thing that got me into forming the Haltom Urban Business Association and getting involved in the local planning and zoning process and the city council had to do with the fact that we wanted to build a new building.” City codes prevented such construction, so Allen, other dealers and even a salvage yard owner got together, and then met with other business owners in the vicinity, too. They began to join our association, we had weekly meetings and then we wrote several letters, made appearances at the city council meetings and before we knew it, they decided maybe they needed to revisit this when it went from one or two guys who had to say something about it to over 100,” he said. “Alone, I know I could’ve never gotten that done.” Allen, whose dealership stocks more than 75 vehicles daily and employs eight people, applied the same idea to how he sought advice on improving his business. “Some of it had to do with losing my father in 2003. He was a real rock for me. We bounced ideas and thoughts off each other on a regular basis and I really had a void and was missing something there. At that point, I decided I needed to build a better network of dealer friends to do those same kinds of things I used to do with my father and it just snowballed,” Allen said. “I think visibility and strength in numbers would be one of the greatest assets that an association like NIADA, TIADA or any automobile association can provide.” Perhaps Allen’s greatest business epiphaniy occurred when he completed the CMD program in 2009. “It had an immediate impact. I went from a guessing game to knowing where I stand,” he said. “The financial part of it was just amazing, such as being able to drill down to the cost of holding a vehicle on your lot per day. I never knew how to get formulas or how to put those numbers together to get those.” Another aspect of the course Allen appreciated was its timeliness and flexibility. “I went into this CMD class was when the economy began to tank and Joe Lescota, who had an exact regimen for his classes each time, right on the very first day, said, ‘OK guys, you’re hurting and I know it and I’m going to throw this book out. There are two or three things that we’re going to have to cover, but we need to drill down and start talking about your businesses and find out what’s going on,’” Allen said. As for the NQD award, Allen said his staff was just as thrilled as he was about being chosen for it. “Immediately, they’re using it in their spiels and they think it builds value,” he said, “and it does, in the company and what we do.”

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Frederick W. Garver Published: Saturday, July 16, 2011 7:13 AM US/eastern

Frederick William “Freddy Bill” Garver, 73, Boggstown died peacefully Wednesday, July 13, 2011, at his residence. Mr. Garver is survived by his wife, Susan; daughter, Cathy; son, Chip (Megan); grandsons, Freddy, Michael John and Pete; brother, Don (Peggy) Garver; sisters, Joyce (Robert) Persinger and Joann (Garnet) Dennison; and his nieces and nephews, all of whom he loved dearly. “Freddy Bill” was born and raised and lived his entire life on the family farm north of Boggstown at the Red Mills. The valedictorian of his high school class in 1956, he majored in business and chemistry at Indiana University before graduating from the Indiana University School of Law in Indianapolis. Mr. Garver, an icon of the Indiana Statehouse, began his career in politics working for Gov. Matt Welch and as patronage chair for the Indiana State Democratic Party. He worked as a top aide to Gov. Roger Branigin before leaving state government to work with the law firm Stewart Irwin Gulliom Fuller & Meyer (Stewart & Irwin) in the late 1960s. He spent the next five decades shaping public policy, working with members of the Indiana Congressional Delegation, the Indiana General Assembly and the executive branch as a lawyer and a lobbyist. He quickly established himself as a consensus builder and a person who could get things done. Fred’s wit and force of personality made him an influential presence. His permanent smile and gregarious laugh were constants in the Statehouse for close to 50 years. He was awarded the Sagamore of the Wabash by six governors of the state of Indiana. This is the highest civilian award offered by an Indiana governor. Fred was a member of Acacia fraternity, Boggstown Presbyterian Church, Boggstown Historical Society, Scottish Rite Indianapolis Chapter, Shriners Indianapolis Chapter and a life member of Fairland Chapter Masonic Lodge. Fred was an avid outdoorsman. He never missed a chance to go hunting, fishing, golfing, boating or to just get outside. He loved his “gator rides” along his beloved Sugar Creek to look at his bluebells or sunflowers. Garver was very proud of his service on the Natural Resource Commission.

A celebration of his life will be from noon to 6 pm Sunday at the family home, 3831 N. London Road in Fairland. In lieu of flowers, memorial contributions may be sent to Indiana Heritage Trust, 402 W. Washington St., Room W256, Indianapolis, IN 46204. Arrangements are entrusted to Freeman Family Funeral Homes, Carmony-Ewing Chapel, 819 S. Harrison St., and online condolences may be shared at www.freemanfamilyfuneralhomes. com.

Most importantly, Fred was a wonderful husband, father, grandpa and family man. He was also a steadfast and loyal friend. He cared deeply for people and went out of his way to lend a helping hand, seeking nothing in return. He was sought out for his “off the clock” advice and counsel and even more so for his uncanny ability to make people laugh and find comfort in things.

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Thank you to Dyer Auto Auction for hosting our recent membership drive!

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news

TRENDSPOT TING:

Don’t Do Business Without It We’ve often heard the phrases “Don’t expect what you can’t inspect” and “Knowledge is power.” These could not be

more true than they are today in the dealer controlled financing industry (Buy Here-Pay Here, Lease Here-Pay Here and Rent-toOwn). Knowing how well your dealership and portfolio are performing compared to industry standards and compared to your own historical performance is invaluable. If you don’t inspect it, you can’t track it. If you can’t track it, there is no accountability. If there is no accountability, there is no motivation for change. As a consultant and trainer to DCF dealers across the nation, I am often amazed when talking with prospective clients about their business results. It is surprising to see how many dealers do not track their own dealership’s key figures – figures that are very relevant at determining the overall health of the lot. The figures these dealers did know were typically as of the previous month’s end-of-the-month reports. They knew last month, or maybe even last year, they collected X amount in payments or booked X amount of profit or sold X number of units. But, they don’t know how those numbers truly compare to previous months, years or even industry standards. Most dealer management systems provide adequate reports which would enable a dealer to see static results, for example, or how many units sold and average deal structure, current inventory totals and averages, current delinquency and accounts receivable totals and more. However, very few, if any, of these systems provide any type of trend analysis reports. It is up to the dealer to record key figures on a monthly and even weekly basis to perform any meaningful analysis. The term trend analysis refers to the concept of collecting information and attempting to spot a pattern, or trend, in the information. Having the ability to spot trends can be invaluable to a DCF dealer collecting payments on a weekly basis. Spotting a dangerous trend early enough allows dealers to take corrective action prior to having a major issue. The trick is to know what to look for.

BY D O N M I LLE R

We have seen dramatic reductions in the average reconditioning expenses at a lot where, it turns out, the manager had been planning to quit and open his own lot. Had this trend not been spotted, the results could have been catastrophic, leaving the new management to deal with a poor performing portfolio with lots of mechanical issues. This dealer was able to set new policies for vehicle inspections quick enough to contain any major issues. At another location, a dealer was enjoying what appear to be his lot’s typical low delinquency rates; however, because this dealer was also monitoring the staff’s collection effectiveness, he spotted a trend indicating there was a strong possibility of fraud. With some further investigating, this dealer was able to obtain proof of employee theft within just a few weeks. Putting an end to what most certainly could have lasted months had he not been tracking weekly performance. The first step to take to have the ability to spot these types of trends is to record data. Determine which key figures you want to track and enter those across the top of your page as the column headers. The first column should be for the date and each line or row will start with the date the data is recorded. If you are recording weekly data, pick one

day of the week (Friday, Saturday, etc.) and record data as of that day each week. As you continue to enter your information, it won’t take long before you have mounds of valuable data, data that you can now use to spot trends and to aid with forecasting. You can use a simple ledger card, but this is the 21st century and a spreadsheet will allow for much more flexibility. There are several free options available today on the web; Google Docs (www.docs.google.com), Microsoft Excel Online (www.OfficeLive. com) and Open Office (www.OpenOffice. org). Google and Microsoft each offer a decent basic spreadsheet that can be accessed online and Open Office has a complete one that can be installed on your computer. Webster defines data as factual information used as a basis for reasoning, discussion, or calculation. Data mining has been defined as the extraction of implicit, previously unknown, and potentially useful information from data. Don’t expect what you can’t inspect. Your data is like gold; mine it often. Don Miller is a senior consultant and supervisor of Constellation’s DCF Consulting Group, a consulting firm specializing in BHPH start-ups, training, consulting and analytics. For more information, visit www. ConstellationAuto.com/dcf.

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Do the math...It Pays to Belong MEMBERSHIP APPLICATION

For an annual membership investment of only $265, which includes an NIADA membership, you get a $2,600 Auto Auction Coupon Book and a whole lot more! Dealership Name ______________________________________ Payment by: Check Visa MasterCard Credit Card Number: ______________________________ Dealer Plate# __________________________________________ Expiration Date: __________________________________ Signature: ________________________________________ Mail Address __________________________________________ By completing this form, I am consenting to and giving IIADA/ Ship Address __________________________________________ NIADA Inc., its affiliates and subsidiaries, my permission to Ship Address contact me and provide information to me at the County ________________________________________________ mailing and email addresses, telephone and fax number(s) I have provided. City/State/Zip _________________________________________ Phone ____________________Fax _________________________ E-mail _________________________________________________ Owners (Please Print) _________________________________

Note: 25% of dues are non-deductible FOR IIADA USE ONLY  Dues Paid ________________________________________  Coupon Book_______________ District _______________ ______________________________________________________  Packet Sent _______________________________________

Recommended By _____________________________________

PLEASE MAIL OR FAX MEMBERSHIP APPLICATION TO: IIADA • PO Box 1393 • Crown Point, IN 46308 Phone: (800)310-3112 • Fax: (219)663-5294 iiada@comcast.net

IIADA MEMBERSHIP BENEFITS Joining IIADA entitles you to the following benefits. Don’t pass up the opportunity to receive the best treatment by joining our association.

• $2,600 Auto Auction Coupon Book

• Prescription Drug Card

• Low cost Liability and Lot Coverage Insurance

• National “Skip” Program

• Medical Insurance • Car Lines publication • Updates on changes in Law and Regulations • Annual Conventions • Dealer Bond as required by The Indiana Secretary of State

• National Independent Automobile Dealers Association Magazine • National Independent Automobile Dealers Association Scholarship Fund • Services of Registered Lobbyists on the National and State Levels • Used Car Dealer Magazine

• Assistance with internal business problems and customer relations 22

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Westlake Announces Major Partnership with Marubeni Westlake Financial Services announces a partnership with Japanese conglomerate Marubeni Corporation. The partnership

will result in Marubeni taking a 20 percent ownership stake in Westlake in a deal valued at $250 million dollars in newly issued equity. Marubeni will also gain two seats on the executive board. The deal closed July 1, 2011.

This partnership will help Westlake become the number one full-spectrum auto finance lender in the country.”

Paul Kerwin, Westlake’s CFO, says the deal represents a long-term strategic partnership between the two companies, one that will further solidify Westlake’s already strong balance sheet and provide strategic opportunities for future growth. “What we found in Marubeni is a business partner that shares our vision for long-term growth,” says Kerwin. “Not only are they interested in investing capital, they want to leverage their existing relationships and help Westlake grow at a higher level than if we were to continue operating on our own.” Company officials talked about future business plans already underway: increasing independent and franchise dealership penetration, expanding their portfolio acquisitions and direct lending divisions, and exploring various strategic opportunities, to name a few. Westlake President Ian Anderson adds that Marubeni appreciates Westlake’s use of technology and he believes it was a significant factor during the decisionmaking process. “Our technology platform is really a platform for growth,” Anderson explains. “Instead of opening regional

branches, we use technology to bridge our 10,000-strong dealer base and the home office. Of course we still have sales representatives out in the field – the auto industry is very much a people-business – but our software and business structure lend themselves to very aggressive growth without the need for excess infrastructure. Marubeni saw that potential, and we’re very happy to have them on board to help maximize that potential.” Don Hankey, CEO and Chairman of the Board, says he looks forward to working with Westlake’s new business partner. “Marubeni is, quite simply, a perfect fit for Westlake. They are not looking to invest in our company with an exit strategy in mind. They are in it for the long haul. This partnership will help Westlake become the number one full-spectrum auto finance lender in the country.” Westlake was represented in the transaction by Richard L. Hong, Esq. and Rich J. Sweet, Esq. of the law firm of Rutter Hobbs & Davidoff Incorporated, based in Century City, California.

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IIADA ASSOCIATE MEMBERS The following businesses provide quality products and services to the automotive industry: Affordable Computer Systems Ivan Dale www.acsds.com acsi@digicove.com 800-488-9992

CN Design & Marketing Todd Rimer 2701 Enterprise Drive, Suite 113 Anderson, IN 46013 todd@cndesing-marketing.com 765-356-4650

Ashton Agency, Inc. Bond Dept. Cheri White 4100 Metric Drive, Suite 100 Winter Park, FL 32792 katiesaft@ashtonagency.com 800-545-4600 407-678-2468 (fax)

Diamond Warranty Corp. Jim Limongelli 9 N Main Street Pittston, PA 18640 800.384.5023

Assurant Solutions, Inc. Todd Calhoun todd.calhoun@assurant.com 317-250-1287 Auction Access Robinson Adams Insurance Dealer Bonds Tom Adams Debbie Thompson 800-239-1327 Automotive Capital Resources, LLC Aron Epstein automotivecapitalresources.com 877-228-8685 Automotive Credit Corp. Tony Stallworth 26261 Evergreen Road, Ste. 300 Southfield, MI 48076 tony@automotivecredit.com 888-268-1400 Auto Services Co., Inc. Susan Williams Clayton Morgan 800-442-7116 Bowden & Wood Certified Public Accountants Mark A. Schaeffer, CPA mschaeffer@bowdenandwood.com 502-583-0262 Briggs Insurance Agency Tim Briggs 4000 W. Lincoln Hwy. Merrillville, IN 46410 tbriggs@briggsagency.com 219-769-4840 Cars.com 175 W. Jackson Blvd., 8th Floor Chicago, IL 60604 dealers.cars.com 800-298-1460 CAR Financial Services, Inc. Thomas Lloyd www.carfinancial.com thomas.lloyd@carfinancial.com 859-630-2606 Central State of Omaha Gary White, Indiana Regional Manager gwhite@cso.com 800-826-6587, ext. 3523 317-289-1369 Chase Custom Finance Don Williams and Mike Smith 317-523-4273 Clear Choice Merchant Services â&#x20AC;&#x201C; Reno, NV Laurie Gruen, Corporate Analyst, ext. 6881 laurene.g@myclearchoice.com Lorraine Onesian, VP Business Development, ext. 6880 lorraine.o@myclearchoice.com www.myclearchoice.com 866-779-4787

Donn Wray Attorney at Law Stewart & Irwin, P.C. 251 E. Ohio St., Suite 100 Indianapolis, IN 46204 dwray@silegal.com 317-639-5454 Drive1USA Bruce Norton 1512 W. 96th Ave., Suite C Crown Point, IN 46307 bnorton@drive1usa.com 219-661-1000 Envirotest Systems Jennifer Kharchaf 1171 Breuckman Drive, Suite B Crown Point, IN 46307 indiana@esph.com 888.240.1684 ETA Consulting, LLC Floor Plans, Sub-prime financing, VSC, GAP Bill Ecklor www.etaconsultingonline.com 260-415-9119 First Data/EMPS Credit Cards, Check Warranty, ATM Juergen Hinz www.firstdata.com juergen.hinz@firstdata.com 260-489-3496 Frazer Computing, Inc. Michael Frazer www.frazercomputing.com 888-963-5369 Guardian Warranty Co. Carmie Fruits, Indiana Representative cfruits@gu ardian-warranty.com 317-374-6271 Sales Support P. O. Box 68 Avoca, PA 18641-0068 800-482-7357, ext. 767 Hoosier Business & Family Insurance Mike Lee and Monte Schneider montestar@sbcglobal.net 877-826-0079 Keystone Insurers Group For All Your Insurance Needs Melanie Carr mcarr@keystoneinsgrp.com 888-892-5860 Lincolnway Insurance Services Dealer Bonds & Garage Keepers Gregg St. Germain 140 E. Lincoln Hwy. Schererville, IN 46375 st5some@aol.com 219-865-2225 Nationwide Acceptance Sub-Prime Financing www.nac-loans.com Bonnie Herden 773-777-7600, ext. 1295

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Penn Warranty Corp. Jude Tuma Michael Roe 1081 Hanover St. Wilkes Barre, PA 18706 www.pennwarranty.com michael.roe@pennwarrantycorp.com 800-356-9441 Plante & Moran, PLLC Certified Public Accountants Auto Dealership Industry Group Jim Egan jim.egan@plantemoran.com www.plantemoran.com 248-223-3257 Preferred Warranties, Inc. Gregg Reidenbach 260-341-6675 Guy Loeffler 313-283-0114 info@warrantys.com 800-548-1121 Scott Insurance Group Garage, Bonds, Health John Scott john@scottinsurancegroup.com 317-445-5555 Sentry Insurance Randy Dombrowski randy.dombrowski@sentry.com 715-346-7272 Mike Donovan mike.donovan@sentry.com 615-210-6344 Shirer Insurance Services Auto Owners-Dealer Bonds 400 N. Main St. Crown Point, IN 46307 Troy and Mari Shirer shirer@ameritech.net 219-663-7274 Smart Auction Jeff Kubicki www.smartauction.biz jeffrey.kubicki@smartauction.biz 812-455-7967

NEW & RENEWING MEMBERS The following members have joined* or renewed their membership since our last issue of Car Lines. A-1 Auto and Truck Floyd Gross Indianapolis Trent Auto Sales Tyler & Tricia Trent Vincennes Kramer Motor Co Christopher Kramer Shelbyville Best Buy Motors Jaspal Gothra Lafayette Homestead Motors Jack Newenhouse Highland Manheim Ft. Wayne Steve Balco Ft. Wayne Kesler Schaefer Auto Auction Steve Kesler Tony Houk Indianapolis Welch Motors William Welch Jr. Rolling Prarrie

Grote Automotive Fred Grote Fort Wayne TNT Auto Sales & Service Trent & Troy Davis Kokomo Carver Body Shop Billy Carver Jeffersonville Mr. Care Auto Beecher Greer Camby Insurance Auto Auctions Joe Algood Indianapolis Corkle Auto Sales Richard Corkle Angola Basic Auto Sales Mark Stepp Attica Main Street Motors John Klisurich Valparaiso

Thank you for your memberships in Indianaâ&#x20AC;&#x2122;s trade association for INDEPENDENT DEALERS

Triumph Consulting Jack Haworth 1606 N. Delaware St. Indianapolis, IN 46202 800-875-3137 www.triumphconsulting.net Tri Vin Inc. Mike Audette 115 Pohesanut Drive Suite 201 Groton, CT 06340 maudette@trivininc.com 860.448.3177 Vehicle Acceptance Corp. Ted Martin 317-844-2599 WORKS24 Mark Hersch 3508 French Park Drive, Suite 1 Edmond, OK 73034 mhersch@work24.com 440.832.0445 Zurich Insurance Co. 800-728-6049 IIADA Associate Membership is available to automotive related businesses. Please call 800310-3112 for more information on Associate Memberships or see our Associate Membership Application in this issue. 25

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Want to increase your sales? Sell to women buyers The issue isn’t about whether or not women are buying vehicles. They are. According to all the latest industry research, women even play a lead role in vehicles purchased by most men. And women are buying used vehicles as much as new ones. But don’t presume a woman’s expectations or process will change. When it comes to a new or used vehicle, women’s expectations are pretty much the same. Just like men, women expect a newly purchased auto to perform well. And like men, women search for the best quality their money can buy when purchasing a used vehicle. So where’s the difference? Well, one fact you might first consider is women do lots more homework and planning than men prior to a vehicle purchase. They may not be ready to purchase on the first visit. Consequently, you might want to practice patience when marketing to women.

FIVE QUICK SELLING TIPS BY S Y E D A Z A M

H E R E A R E FIVE QUICK SELLING TIPS T O H E L P YOU M ARKET YOUR VEHICLES TO WOMEN: 1. SELL SAFETY! Quality and performance are givens. But safety is still a priority and concern for women. Women are often thinking about their family members or their growing family when purchasing a vehicle. For a used vehicle, they will definitely ask questions about previous owners and will review Carfax history report. Be sure you are ready to answer. 2. SELL SPACE! Women don’t have to have big cars, but like closets and nooks in a home, women want spaces or places to put and tuck stuff…sunglasses, coffee cups, luggage, shopping bags, snacks for the family and more. So, seat pockets, compartments, and cup cubbies are a must. 3. S  ELL MAINTENANCE! Women want the convenience of service and maintenance options. Used vehicles do come with a certain amount of risk. Including service and maintenance plans in the purchase of a used auto enhances the one stop shopping deal that women look for. 4. S  ELL GREEN! Not necessarily the color, but the environmental friendliness. Women do look for unique colors in vehicles and

these are getting easier to find. But for the most part, women are going green. Naturally nurturing, women are conscious of the changes in the environment and want to do their parts in keeping it clean and safe. Share knowledge about the used vehicle’s emission, miles per gallon, and more. 5. B  E PATIENT! When a woman enters your site or lot, she is expecting to begin a mutual relationship with you, one of trust and loyalty. She wants your name, your attention and her questions answered. She may need two or more visits before a decision is made. So get ready to treat her well. Hopefully she will buy and love her newly purchased vehicle. For added value, she’s going to remember the treatment and tell all of her friends.

These selling tips are by no means in any order of importance. They are all equally important when marketing your vehicles to women. BY SYE D A Z A M

Syed Azam is the president of AutoJini.com, a leading provider of website solutions for auto dealers. Contact him at syed@AutoJini.com or 515-232-2024.

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IRONWOOD GOLF CLUB • 10955 FALL ROAD • FISHERS, IN PAID OFFICIAL VOICE OF THE INDEPENDENT CAR DEALER IN INDIANA 2011 IIADA ANNUAL GOLF TOURN...

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