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FEBRUARY/MARCH 2011

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PREPARING FOR THE FUTURE LSO Learn to Earn A PLUS Can More Small Cars Equal More Sales?

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INSIDE

MAGAZINECONTENTS 4 Preparing for the Future 6 Learn to Earn 10 Can More Small Cars Equal More Sales?

NIADA/Manheim Community Service Award

Manheim, the world’s largest provider of vehicle remarketing services, cares about its employees, the environment and the communities it serves. From fund raising drives to tutoring kids after school to supporting long-term conservation efforts, Manheim and its employees are dedicated to giving back to their communities and knows independent vehicle dealerships across the country share in this commitment. For the first time this year, Manheim is recognizing and honoring those dealerships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For information on how to nominate and to obtain more in-depth information, please contact Georgia Brown, NIADA director of education, at 817-640-3838 or see page 8.

A MESSAGE FROM THE PRESIDENT This has been a hard year for used car dealers. Many dealerships are going out of business, but the end of the year always picks up. I want to

encourage everyone to just hang in there; it will get better. We are still growing strong in the LIADA and would like to thank every member for all your support. We have recently talked with AFLAC and they would love the opportunity to offer their services to all our members. AFLAC will be putting an ad in our magazine for your convenience. We also are working with Tommy Averette for Profit and Taxes ( www.profitandtaxes.com/Tommy-Averette). Tommy’s phone number is 225-266-6595. We have grown a great deal with the added garage liability coverage we offer; just

remember the other companies are going to try to drop their prices to meet or beat ours, but they will not be able to stay that low. They do not have the stability we have. While their prices are a roller coaster ride, ours will endure and stay the same. Let us give you the peace of mind in knowing that your insurance is worry free. Call our servicing agents at 225-6674421 and get a quote today! You can contact LIADA at 1-800-9605423 laassociation@aol.com if you have any questions. Don’t forget to visit our website at www.laiada.com.

Thank you, Val Clary LIADA President

ADVERTISERSINDEX ADESA ...................................................... 15 AutoTrader.com............................. Back Cover Cars.com ................................................... 13 LA’s 1st Choice Auto Auction ........................ 7 Manheim.com .................... Inside Front Cover Manheim Houston........................................ 9 Manhaim Mississippi ...................................11 Manheim New Orleans................................. 5 SmartAuction........................Inside Back Cover United Acceptance...................................... 19 Western General / Protective ......................17

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM.

THE OPEN ROAD IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE OPEN ROAD OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE ANENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2009 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

1630 North Flannery Road Baton Rouge, LA 70815

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Future P R E PA R I N G F O R T H E

By Jan Kelly, president of Kelly Enterprises

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new year brings new goals, and new hopes for improved sales, more lenders, and more profits for everyone. As with any change in the

marketplace, dealerships must prepare their team to meet the current demands of the marketplace. SALES: From all I’ve read, the customers are back. People are once again going to the dealerships to replace their old vehicles with smaller, more fuel-efficient models, and some are adding to their family fleet so they can meet the weather challenges. The great news is the customers are back from their long hiatus. What are they finding at the dealerships? The customers are finding store personnel stretched, and the once-many choices of inventory they enjoyed in the past now cut. The product selection step in the selling cycle will need to stress selling what you see in front of you. During the past few years, those dealerships that survived have learned how to manage inventory more effectively, as well as turning it more quickly. They’ve also learned how to operate in a lean environment. PERSONNEL: Plan on hiring sales personnel and educating them. Personnel are stretched to the point of having job descriptions blurred. I think the time is coming to redefine the roles and create a work environment where they can focus upon the job at hand and cease worrying about what additional items will be asked of them. Multitasking can become dysfunctional after awhile. Sales processes while basic never change, I find each dealership has a specific culture and the process often must be modified to reflect the culture so management will support the process after the educator leaves.

Education is not a one-time event. Plan a continuous relationship with your education resource. Every process

should be monitored, measured, and modified as required. After the modifications have been made, the new process needs to be re-implemented, monitored and the producers need to be held accountable.

LENDERS: The industry needs more of them, and we need them to approve loans. Dealerships will need to continue to seek local credit unions and other local lenders to approve consumer financing. Credit unions may not be use to the independent dealerships, but this is an opportunity to put your best face forward and sell yourself and your business acumen to the lenders. I was asked how important relationships with lenders are; they’re critical to your success. Lenders again wish to become a close business advisor to your operation. They’re going to want a piece of every banking transaction you have; wholesale, retail, merchant services, checkings and savings, personal and business. When you think of lenders, what was old is now new again. Keep your ears to the wind; contact every source prospect for lenders at every opportunity. COMPLIANCE ISSUES: Spend the time it takes to create a binder with your policies and procedures regarding the plethora of federal regulations we must meet. The following is a beginning checklist for those policies and procedures: ______ ______ ______ ______ ______ ______ ______

DISPOSAL RULE P SAFE GUARD RULE P OFAC SDN LIST P RED FLAG RULE P ADDRESS DISCREPANCY RULE RISK-BASED PRICING RULE P ADVERSE ACTION LETTERS P

P

ONCE A POLICY AND PROCEDURE IS PLACED IN WRITING, THE COMPANY IS BOUND BY THE WORDS IT WRITES. With the creation of the new credit protection agency, I think we’ll begin to see enforcement of the rules and regulations and perhaps some additional items will be added to the list of required written documentation. Review your existing policies and verify what’s written is what’s actually happening. If not, then change either the policies or your practices. Once a policy and procedure is placed in writing, the company is bound by the words it writes. Conduct self-audits as written in the policies and procedures. Document the education content and the timing of the education of new hires. Document any breaches of security, or failure to adhere to the company policies. As you know, I am not an attorney and this is not to be used as legal advice. These words are meant to be educational only. Please consult your legal counsel for all legal issues. The future is once again bright. Prepare for success. Jan Kelly is an educator and consultant, international convention speaker and writes frequently for industry publications. For information about educational venues or joining our F&I 20 Group, call 800-336-4275 or visit www. JLKelly.com.

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A S S O C I A T I O N

N E W S

Learn to Earn with NIADA’s Education and Training Consortium One of the crucial things I learned during my 30-plus years of interacting with sales-related people is quality salespeople are made, not born. Those

salespeople who experience great sales success are rarely great from the start. They make themselves great because they realized they could be no better than the level of their preparation. I firmly believe the salesperson’s life should be a life of continual learning. There is no place in a sales career where a salesperson can say there is nothing more to learn, no more skills to develop, no more techniques to improve or no more methods to try. Regardless of how long someone has been selling, it is my conviction there is always something to learn. Believe me, nothing fails like a bit of success if it keeps someone from looking for new and better ways to improve performance. As you look at your dealership, what can you say of the results you are getting from your salespeople? Do you need to change or improve your sales culture? Is it time you became more involved in the improvement of your salespeople’s skills? If the answer is “yes,” then think about what your goals might be. Consider a twofold approach. First, provide an educational experience that will help your salespeople achieve mental, emotional and psychological improvement to create instant action and second, to offer your salespeople specific statements (or, as we call it “What to say when…”) for almost any situation, question or objection that they may encounter in their

LEARN toEARN

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sales time with customers. One approach might be to define five or six key topics you want to emphasize. May I suggest: How to Locate Customers; Getting to Know the Prospect; A Sales Presentation that Works; Close: Getting to “Yes;” Getting the Deal Done: Finance and the Delivery; and After the “Yes.” These seem to be the prominent skill areas salespersons need most in defining, and experienced – I did not say old – sales staffs often need to sharpen. You want to make sure your sales staff are following your dealership’s philosophy and are singing from the same songbook. I don’t have to tell you there are various ways you can approach training. You probably have already done them all. You probably thought some were effective while others were real bombs. Finding the most effective way of keeping your dealership’s learning curve at its very best is a challenge for every dealer, general manager or sales manager. Squeezing in time for effective new salesperson orientation sessions or training (perhaps retraining) the experienced just doesn’t happen as often as it should. It takes leadership to make it happen. As you evaluate the sales practices at your dealership, consider what is really working, what needs improvement and what you need to eradicate. I challenge you to get involved in making the sales culture the best it has ever been. Be a part of the learning. Be a working leader, actively engaging the sales staff. As a trainer, I preached that message to every group I stood before, and after

L O U

years in the automotive industry; I have collected volumes of presentations. I admit some sessions were better than others, but I have always enjoyed watching a salesperson grow or hearing from a dealer with whom I have worked that his staff is really making strides in sales. Once you get hooked on promoting learning to earn, you miss it when you aren’t as actively involved. That is why when a couple of old independent automobile industry friends of mine suggested I put my knowledge and expertise into an online training program and approach NIADA about using it with it’s members, I decided to create the PreOwned Online Sales Training Course. The timing was perfect because NIADA has recently initiated an Education and Training Consortium to encourage quality educational opportunity providers to join together to offer programs and products to the independent automobile industry. Consortium selection criteria focus on the needs of the dealer. I am happy to say that Lou Vickery’s Pre-Owned Online Sales Training Course met that standard and is one of the first educational opportunities to be offered. It is simple, straightforward and offers flexibility that both the dealer and the salespersons can appreciate. Whether you use this course or select another approach, I challenge you to stay focused on growing your people. Help them become the most effective salespersons in the industry. Encourage their enthusiasm. Cultivate their energy. The profits will be yours!

V I C K E RY

Lou Vickery, an Alabama native, is a former professional baseball player and coach who worked with Merrill Lynch before going into the training and development field. He has presented his customer-focus programs to more than 30,000 people at more than 2,800 companies and dealerships in 44 states and two foreign countries. Vickery, the author of ten books, is in his sixth year of broadcasting and hosts “Lou in the Morning” in the Pensacola, Fla., market.

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APPROVED MEMBER BENEFIT PROVIDERS REYNOLDS & REYNOLDS INC.

WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMS Car Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641 Phone: 800-634-0974 Fax: 319-385-2927 E-mail: jasonwds@lisco.com Website: www.wds-usa.com

AUTO OWNERS INSURANCE EASTERN BORDER OF IOWA Amy Goodnight LOHMAN COMPANIES 3901 15TH STREET D MOLINE, IL 61265 800-747-8431 309-764-5967 (fax) amy@lohman-companies.com

AUTO OWNERS INSURANCE

10% DISCOUNT TO ALL IIADA MEMBERS Corcoran & Associates, Inc. Mick and Teresa Corcoran 2525 E. Euclid, Suite 102 Des Moines, Iowa 50317 Phone: 515-262-3141 Fax: 515-262-3086 Toll Free: 877-518-4051 E-mail: teresa@corcoranandassoc.com

ASSOCIATIONS MARKETING GROUP INC Health Insurance Jesse Patton 1112 Maple Street West Des Moines, Iowa 50265 Toll Free: 800-798-6772 Phone: 515-270-8178 Fax: 515-270-0398 E-mail: lpatton@amgi-dsm.com

CYCLONE AUTOMOTIVE TRAINING INC.

F&I Training, Sales Training, Service Contracts, Rob Miller and Chris Hochstein 515 N Jefferson Way Ste H Indianola IA 50125 Phone: 515-962-0099 or 515-962-0100 Fax: 515-961-8400 Rob: 515-205-5900 cell Chris: 515-205-5800 cell E-mail: cycloneautomotive@ cycloneautomotive.com

S & C AUTOMOTIVE, INC.

Service Contracts, GAP, Aftermarket Products Sales & F & I Training thru Star Training Group 3828-70th Street Urbandale, Iowa 50322 515-276-9622 800-776-9622 515-276-8472 (fax) e-mail: dougeckhart1@yahoo.com website: www.sandcsales.com Contact: Doug Eckhart

NADA BOOKS

Official Used Car Guides, Subscription Discounts, Annual Subscription through IIADA, Save $$ Contact IIADA at Phone: 641-755-4177 E-mail: iiada@netins.net

Dealer Bonds Long Term Care Insurance Various types of insurance Contact: Dean M Clark 300 Walnut Street Ste 200 Des Moines IA 50309 Phone: 515-243-1724 Toll Free: 800-767-1724 Fax: 515-243-6664 E-mail: d.m.clark@reynolds-reynolds.com

AUTOJINI.COM

Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com

ZURICH

Garage Keepers, Property, Garage Liability Dealer Bonds 7045 College Blvd. Overland Park, Kansas 66211 Jeff Severino, Regional Sales Manager Phone: 913-664-3944 Fax: 913-498-5521 Toll Free: 800-840-8842, Ext. 3944

GLOBE ACCEPTANCE INC

“Customers for Life” Repeat Sales, Referrals & Customer Loyalty Contact: Terry & Sue Newell P.O. Box 294 Carthage IL 62321 Ph: 888-353-2668 Fax: 217-357-9076 E-mail: tlnewell@frontienet.net

FRAZER COMPUTING, INC.

2564 W. Main St., P.O. Box 569 Canton, New York 13617 Phone: 888-963-5369 Fax: 888-963-3366 E-mail: ucd@FrazerComputing.com National Rep: Mike Frazer Dealer Management Software for Used Car Dealers

FRAZER COMPUTING, INC.

Contact: Scott Erikson, Iowa Rep 100 Prairie Center Drive, Suite 200 Eden Prairie, Minnesota 55344 Scott Erikson: 402-639-0664 serikson@adgtoday.com

GOLDSTAR GPS

2093 20th Ave. S.E. DYERSVILLE, IOWA 52040 PHONE: 866-655-8825 Ext. 120 Fax: 866-655-8285 Contact: Mark VanDyke e-mail: markv@goldstargps.com Website: www.goldstargps.com

The National Auto Auction Association has a new in-lane and online arbitration policy that went into effect as of 1/1/2011. To review these new policies please go to www.naaa.com . It is a dealer’s responsibility to understand these policies and to know what is expected of you as a buyer or seller. The policy includes information on NAAA structural damage and what is required of sellers to disclose and the rules for arbitration. Understanding these policies is a must for those who take this business seriously. Go to the NAAA website and look under “standards”.

Sub-prime Lender Contact: Sarah Grisham P.O. Box 65400 West Des Moines, Iowa 50265 Phone: 515-225-9067 E-mail: globeaccepts@globeacceptance.com MICROBILT CORPORATION Website: www.GlobeAcceptance.com Credit Reports From Equifax, Experian and SECURITY AUTO LOANS (SAL) Trans Union; Employment Background Sub-prime Lender Screening; Driver’s License & Motor Contact: Scott Erikson/Joe Ruhland Vehicle Searches 4900 Highway 169 N., Suite 205 111 Butler Street New Hope, Minnesota 55428 Lexington, South Carolina 29072 P: 763-559-5892 Contact: Randy Mosteller F: 763-559-7549 866-277-7707 website: www.securityal.com randy_mosteller@microbilt.com Scott: 402-639-0664 www.microbilt.com e-mail:serikson@adgtoday.com Joe: 612-804-0720 AUTOMOTIVE DEVELOPMENT e-mail: joe@autofaqs.biz

ADVANCED BUSINESS PRODUCTS, INC.

GROUP, LLC

Dealer Compliance Education, F & I Compliance and Training, Service Printing, Promotional Products, & Wearables Contracts, GAP and Protective Coatings Contact: Scott Erikson Contact: Scott Jayne 100 Prairie Center Drive, Suite 200 PO Box 71547 Eden Prairie, Minnesota 55344 Des Moines IA 50325 Scott: (402) 639-0664 Phone: 515-225-6343 serikson@adgtoday.com Toll Free: 888-464-2274 Fax: 515-225-6510 MONSTERLOT.NET Toll Free Fax: 877-987-3514 Automotive Development Group, LLC Website: www.go4abpi.com Dealer to Dealer Inventory /Trading and sharing CORCORAN & Free Unlimited Web Access ASSOCIATES INC. www.MonsterLot.net Various Types of Insurance E-mail: info@monsterlot.net Contact: Mick Corcoran, Contact: Scott Erikson Janet Solberg or Donna Torkelson 402-639-0664 18 – 2nd Street, N.E. Mason City, Iowa 50401 JR 5 TRANSPORTATION Phone: 866-494-1814 Transport Services Fax: 641-494-1819 John Robinson, President E-mail: donna@corcoranandassoc.com 1109 S.W. 63rd Street Des Moines, Iowa 50312 INNOVATIVE DEALER 515-822-3447 SERVICES, INC. Dealer Software Management Systems P.O. Box 23189 Shawnee, Kansas 66283 913-312-7344 – Ext. 11 Fax: 810-821-1718 Website: innovativedealer.com Contact: Deems Peterson, Sales Manager E-mail: dpeterson@innovativedealer.com

CHASE CUSTOM FINANCE

Chase Auto Finance 1800 S. Naperville Road Wheaton, Illinois 60189 Christopher Compton Assistant Vice-President 515-720-9440 Christopher.e.compton@jpmchase.com

SMARTAUCTION

Larry Hall 10324 Ladue Road Creve Coeur, Missouri 63141 314-308-3209 larry.w.hall@smartauction.biz

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NATIONAL AUTO AUCTION ASSOCIATION ARBITRATION POLICY EFFECTIVE 1/1/2011

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CAN MORE SMALL

CARS EQUAL MORE SALE$ The compact segment has seen its share of ups and downs in the past few years. When gas prices were above

$4 in the summer of 2008, interest in compact vehicles – or anything that consumed less fuel – was thriving and improved sales of these vehicles followed. Polk recently confirmed the subcompact category (or lower small) more than doubled from 2005 to 2008 as a result of sales of vehicles such as the Nissan Versa and Honda Fit. When oil costs normalized, so did consumers’ eagerness to jump into a smaller vehicle, creating an opening for the utility-driven crossovers that serve the needs of families and outdoor enthusiasts alike – making 2009 effectively the year of the crossover. More than 330,000 compacts were sold in August 2009 during the CARS - or Cashfor-Clunkers – program (since they met the fuel efficiency standards set to qualify for the discount), so unnatural market share inflation occurred for small cars. By comparison, only about half as many compacts left dealer lots last August. But despite the surge in sales compacts enjoyed due to CARS, compact vehicle sales were almost identical through November 2010, demonstrating growing consumer interest in smaller cars. What’s even more telling is the staggering growth in small car shopping in 2010. Compact shopping on Jumpstart sites was up 11 percent on average in 2010 versus 2009. Not always the sexiest of categories, the segment now represents about 14 percent of all vehicle shopping and research on such properties as Vehix.com, TrueCar.com and CarandDriver.com. A segment for decades dominated by Corolla and Civic now boasts new entries that deliver more car for the money, especially in the subcompact and specialty groups. The trajectory in shopping for subcompact (Yaris or Versa) and small specialty (Mini Cooper and Scion xB) is greater than that of traditional favorites in the upper small category.

Breaking down the compact category into three sub-segments (subcompact, small specialty and upper small), upper small (Corolla, Civic, Focus) vehicles continue to lead in shopping volume, but the niche is seeing the greatest decline in share of the category (down 8 percent from the first quarter). The subcompact (Fiesta, Yaris, Versa) segment now represents a nearly 20 percent share of the compact category, growing in interest by about 15 percent throughout 2010. The small specialty (Scion, Mini, Fiat 500) segment is where the greatest growth is occurring. Shopping in that segment increased through November by about 57 percent from the first quarter. After a generation of truck and SUV desirability, Americans could finally be warming up to smaller, more fuel efficient and compact vehicles. The wave of interest in the compact segment has been driven by more vehicles to choose from in the segment, heftier marketing support and, more importantly, noticeably better product. Advanced interior options and safety features have made the small car more appealing; especially to the socially responsible consumer looking to make a green statement without paying thousands more for a hybrid or fiddle with a new technology such as an EV. The small vehicles available today are considerably better than the patchwork of yesteryear’s small cars, when you were lucky to have power windows, let alone power steering. Today’s models are fully equipped with some of the highest standards in safety features, luxurious interiors and, of course, excellent fuel economy. The CAFE standards set forth by the Obama administration (a fleet average of 35 mpg) also have something to do with these developments and, in the past, domestic automakers weren’t well-represented. What’s more, many of the imports have gotten much more creative about their approach to small cars to remain competitive with brands such as Scion and Kia challenging

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traditional design standards. Most recently, the Ford Fiesta has set the gold standard for marketing excellence in the category. Through the Fiesta Movement program, Ford turned to consumers to drive inclusion of many of the features and bells and whistles on the vehicle. The company is enjoying a powerful opening into the compact market with its 2011 models hitting dealerships behind tremendous momentum. The newest entry into the specialty group is the Chrysler-owned Fiat 500, a stylish mini-car designed with sightlines similar to the original Mini Cooper. This is Fiat’s re-introduction to the U.S. market since the 1970s, and it’s betting big on the B-car segment with the release of the 500. So far, the 500 is garnering plenty of interest among car shoppers and enthusiasts on Jumpstart’s automotive research properties, as consumers regularly engage with videos, photos and other content about the new Fiat. Interest from people researching to buy a 500 was at its highest in November 2010, up about 60 percent from the month prior. But while shopping in the specialty segment has rapidly increased, sales have yet to follow. Sales declined over the course of last year, with the peak coming in April at nearly 10,000 vehicles, then dropping to its lowest point near the end of last year, with just over 4,000 vehicles sold. In a very irregular economy, it’s difficult to tell if 2011 will be the year of the small car, but all signs point to the compact segment potentially representing a larger share of the pie this year as product, marketing and options continue to improve. Joe Kyriakoza is vice president of marketing communications & insights at Jumpstart Automotive Group. He has held numerous leadership positions with Jumpstart, one of the largest content and media providers for the automotive publishing space.

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Cars.com Partners with AULtec to Ramp Up Daily Data Feeds on Inventory Listings

IT’S NIADA SCHOLARSHIP APPLICATION TIME AGAIN!

AULtec announced Tuesday that dealerships  using its  Dealer Profit Center to list, publish and market their online vehicle inventories can now benefit from online inventory feeds and price updates to Cars.com.

The NIADA Foundation invites graduating seniors of the 2010-2011 school year to complete a scholarship application in pursuit of funds to be paid to the colleges of their choice in the Fall of 2011. Four

regional scholarships are awarded annually in June at the NIADA Convention and Expo. Last year, each scholarship was in the amount of $3.500.

THIS YEAR’S APPLICATIONS MUST BE POSTMARKED NO LATER THAN FEBRUARY 1 AND RECEIVED AT THE NIADA OFFICE BY FEBRUARY 10.

AULtec — a sister company of AutoUpLinkUSA that is involved in inventory data and vehicle image acquisition, management and online publishing — will conduct these feeds and updates to Cars.com several times each day, officials said. “This multiple daily data feed from AULtec to Cars.com is a game-changing advancement in online inventory management,” officials noted. Dealers who utilize AULtec’s DPC product suite and Cars.com can tap into the service for free. It is available immediately. Those looking to obtain more information are encouraged to e-mail Skip Murphy at smurphy@AULtec.om or call (866) 949-9754. “Now dealers having this advantage will have the most dynamic, freshest and most competitively priced inventory on the Internet,” they added.

ELIGIBILITY REQUIREMENTS TO BE ELIGIBLE APPLICANTS MUST:

Be classified as a high school senior during the current 2010-2011 school year and legally reside in one of the four NIADA regions; Have maintained an outstanding academic achievement record as reflected by an official high school transcript; and Demonstrate an aptitude for college work as measured by SAT or ACT scores.

APPLICATION PROCESS

The 2011 Scholarship information and application have been posted on the NIADA Foundation website at www.niadafoundation.org. Applications must be postmarked by February 1, 2011. It must be submitted in a 10-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. NIADA staff will review the applications for completeness and will forward them to the NIADA Scholarship Selection Committee and at Northwood University in Midland, Mich. They will be reviewed by regions. One applicant will be selected from each of the four NIADA regions based on the merit of his or her scholarship application and will be notified by the foundation office no later than mid-May 2011. Information regarding the NIADA/AutoTrader. com National Scholarship to Northwood University may be obtained by contacting the Northwood University Financial Aid office. 12

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AUCTION DIRECTORY ADESA Shreveport 7666 Greenwood Road Shreveport, LA 71119 318-938-4400 Phone 800-673-2240 Toll Free 318-938-7623 Fax www.adesa.com Every Wednesday In-Op sale at 8:45 am GM/GMAC sale at 9 am Fleet/Lease sale at 10 am Consignment sale at 10 am Every other Thursday GM Factory Closed sale at 10 am Louisiana’s 1st Choice Auto Auction 18310 Woodscale Road Hammond, LA 70401 985-345-3302 Phone 985-345-5735 Fax www.lafcaa.com Consignment Sale every Tuesday at 8 am

Manheim Houston 14450 West Rd Houston, TX 77041-1103 281-890-4300 Phone 800-444-2444 Toll Free 281-890-7953 Fax TRA Sale - Every Tuesday morning at 8:15am Consignment Sales - Tuesday at 9 am Hertz - Weekly, Tuesdays Manheim Mississippi 7510 U.S. Highway 49 North Hattiesburg, MS 39402 601-268-7550 phone 800-264-7550 toll free 601-579-7202 fax www.manheim.com Dealer Consignment Sale every Monday at 5 pm & Thursday 9 am Fleet/Lease Sale every Monday at 5 pm & Thursday 9:30 am

Manheim New Orleans 61077 St. Tammany Ave. Slidell, LA 70460 985-643-2061 Phone 800-783-2062 Toll Free 985-643-2122 Fax www.manheim.com Dealer Consignment Sale every Wednesday at 9 am Fleet/Lease Sale Wednesday at 9 am Total Resource Auctions every Wednesday at 11:00 am SmartAuction Your Online Auto Auction 877-273-5572 www.smartauction.biz

1630 North Flannery Road Baton Rouge, LA 70815

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Management Perspectives THREE KEYS TO BUILDING TRUST BETWEEN MANAGERS AND EMPLOYEES Any positive working relationship is based on trust. An environment of trust assumes both parties will be safe, and it carries with it an implicit message you have each other’s best interests in mind. That’s why employees

can accept criticism and even anger from a boss they trust. The employees know deep down the boss really means to help. Trust is an interesting quality because, once it is lost, it is hard to recapture. The question is how do you develop trust between people in the workplace? After all, when you have people from various backgrounds coming to work together, they usually don’t have a history with each other and there’s no base of trust to begin with and grow upon. That’s the reason managers need to be proactive and create an environment of trust apparent to all.

Limit Lecturing

To ensure employees will make good decisions, managers often begin to lecture. Lecturing and telling your employees what to do implies you don’t have faith in their decision-making abilities. This can result in their becoming defensive. If people do not have faith in themselves, then the manager’s faith in them decreases even more and the lecturing begins again. Even well-intentioned lectures convey the subtle and negative message that what the employee has done is wrong or not good enough. All people are sensitive about being told what to do and they often want to prove themselves in the workplace. Rather than lecture employees, consider using reflective questions such as, “What do you think about . . . ?” “Have you thought of . . . ?” and “Would you consider . . . ?”

An easy strategy for replacing this tendency of listening autobiographically is to cultivate the habit of listening to learn. Listening is a skill that can be improved. It starts by taking the position of a good listener. It’s getting ready to hear what’s about to be said. It is refraining from the alltoo-common practice of hearing a few words and then jumping in with a response. You may have experienced the feeling that arose when someone finished your sentence before you had finished it yourself. When a manager interrupts an employee who is attempting to communicate, it prompts a negative emotion and no one enjoys being interrupted. Listening in anticipation of what an employee will say is another habit to break. Listening in anticipation encourages interruptions. All people want to be acknowledged and don’t wish to feel you know what is about to be said. Interrupting is an indication you don’t care about hearing theREMEMBER, other person’s viewpoint much as THEREasISN’T your own. EMPOWERMENT ANY

MORE EFFECTIVE THAN SELF-EMPOWERMENT. REMEMBER, THERE ISN’T ANY EMPOWERMENT MORE EFFECTIVE THAN SELF-EMPOWERMENT. REMEMBER, THERE ISN’T ANY EMPOWERMENT MORE EFFECTIVE THAN SELF-EMPOWERMENT.

Listen to Learn

Epictetus is credited with saying, “Man has one tongue but two ears that we may hear from others twice as much as we speak.” Listening to learn and valuing people’s feelings and ideas is what promotes the ability of managers to effectively communicate with and influence their staff. For most managers, their first reaction is to evaluate the employee from their own point of view, then approve or disapprove of what the person says. This is listening autobiographically. It shuts down the employee’s self-confidence, initiative, and open communication.

A manager who listens well acknowledges their employees’ feelings and opinions. Remember, no great insight ever enters the mind through an open mouth. It is important to let people know you’re willing to listen, even though it may not result in agreement. Just use the most effective sales principle: inquiry precedes advocacy. In other words, listen before you talk.

Work Smarter

Many people often say, “If I want something done right, I have to do it myself.” Yet effective managers know delegation of tasks is essential for building trust in the workplace. When you hold onto tasks and don’t delegate, you deprive your employees of an opportunity to advance their skills. Focus on treating your staff as if they are who, how, and what you would like them to be. Once the employee completes a task, the objective should be to focus on progress rather than perfection. If the person’s result does not meet your expectations, you can still find something positive to comment on while helping the employee understand what the initial expectations are. This is far more effective than comments that foster guilt or a sense of failure. A positive approach prompts an incentive for the task. Remember, there isn’t any empowerment more effective than self-empowerment. Because being positive is so enabling, it is best to displace thoughts and communications that are destructive. For example, saying “you are bad tempered,” has the same meaning as “you need to work on controlling your temper.” However, the first labels the person, whereas the second enables the person. People change more by building on their strengths and aptitudes than by working on their weaknesses.

Create a Trusting Environment

Without trust in the workplace, communication and teamwork will erode. Additionally, morale will decrease while turnover will rise. However, by using these three strategies you can build your employees’ trust in management, thereby making their workplace an environment filled with innovation, creativity, and ultimately higher profits for all. Dr. Marvin Marshall – an American educator, writer, and lecturer – is widely known for his programs on discipline and learning. His approach stemmed from his acquiring knowledge about youth as a parent; a recreation director and camp counselor; a classroom teacher; a school counselor; an elementary and high school principal; district director of education; and as a certificate holder from the William Glasser Institute. For more information, visit www. marvinmarshall.com.

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N E W

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NOVEMBER

God’s Grace Auto LLC Abayomi Sodipo 3611 Plank Road Baton Rouge, LA 70809 225-612-5508

Allstar Auto Sales of Louisiana LLC Wilbert Williams 24 Westbank Expressway Gretna, LA 70053 504-881-0203

Perkins Auto Derrick Perkins 110 Levi St. Jennings, LA 70546 337-616-0274

Amite Auto Sales Charles Gill 59155 Hwy.. 51 Amite, LA 70422 985-747-8880

75NL05 LLC Kendra Diouf 1671 North Broad St. New Orleans, LA 70114 504-343-1035

Deridder Dealers Auto Auction Troy Blackmon, Sr. 2271 Hwy. 171 S. Deridder, LA 70634 337-463-2640

Hot Point Auto Sales & Repair Stanwood Bickham 115 Welch Drive Bogalusa, LA 70427 985-732-7041

Renewing Members: Brantley’s Used Cars Charles Brantley 3935 Mardis Drive Bastrop, LA 71220 318-996-1711 GOSA Enterprises LLC Anthony Gosa 432 Florida Ave. SE Denham Springs, LA 70726 225-620-2575

Louisiana Power Play LLC Scott Womack 3920 Louisiana Hwy. 1 North Port Allen, LA 70767 225-413-7812 Old Arcadia Motor Company Ron Flurry 101 Petrochem Drive Minden, LA 71055 318-377-1574 Pompeii’s Auto Sales Burke Alleman 4118 Cameron St. Lafayette, LA 70506 337-593-0305 Ponce’s Imports Rudy Martinez 6060 Florida Blvd. Baton Rouge, LA 70806 225-268-9556

Barker Auto Sales LLC Randy Barker 200 West 70th St. Shreveport, LA 71106 318-865-0667

Southgate Motors Inc. William Brown 1701 Winnsboro Road Monroe, LA 71211 318-387-3201

Cenla Motors Ronald Price 2002 Melrose St. Pineville, LA 71360 318-201-6397

Star Auto Wholesale Inc. Haythem Amus 4149 Florida Blvd. Baton Rouge, LA 70806 225-929-7729

Edgewood Wholesale Motor Vehicle LLC James Clary, Jr. 762 La. Hwy.. 68 Jackson, LA 70748 225-658-9609

Superior Auto Sales Douglas Hickman 603 Superior Drive Bogalusa, LA 70427 985-735-1500

M & M Finance Corp. Michael McLaughlin 2001 Hearne Ave. Shreveport, LA 71103 318-425-8908 Ram Investments Inc. Jerry Powers 822 Madeline Court Baton Rouge, LA 70815 225-933-8137

Les Bellamy Wholesale Les Bellamy 952 N. Alexander Port Allen, LA 70769 225-926-5077

WC Autos Inc. Wayne Moore 2205 Kirkman St. Lake Charles, LA 70601 337-433-4600

Turn Key Auto LLC Claudia Haupt 51 A Holmes Blvd. Gretna, LA 70054 504-367-5071

A.S.K. Enterprises LLC Dan Doran 8618 Florida Blvd. Baton Rouge, LA 70816 225-328-0336

Verges Vintage Vehicles LLC Wade Berges 5555 Bullard New Orleans, LA 70128 504-669-4752

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Jessie’s Auto Sales #2 David Aucoin, Jr. 5545 Veterans Memorial Hwy.. Mamou, LA 70554 337-468-2766

Wooley World Auto Sales #1 LLC Alan Wooley 9545 Airline Hwy. Baton Rouge, LA 70815 225-636-8463 Auto Direct LLC Jason Doss 2305 St. Charles Ave. New Orleans, LA 70448 504-400-3677 MainSt. Wholesale LLC David Mains 2517 Veterans Memorial Blvd.. Kenner, LA 70062 504-464-8882 Autin Auto Sales Robert Autin 1301 Lapalco Blvd.. Westwego, LA 70094 504-348-3879

Renewing Members: Long Beach Auto Auction M.C. Morris P.O. Box 958 Long Beach, MS 39560 228-452-2030 Cornerview Auto Sales & Detail LLC Arthur Johnson 10750 S. Choctaw Baton Rouge, LA 70815

Express Auto Used Cars Dwayne Armstrong 4491 Hwy. 955 W. Ethel, LA 70730 225-355-5599

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S & S Auto Sales Clarence Sanders 348 E. 70th St. Shreveport, LA 71106 318-754-3110

T A T LLC dba Tickfaw Auto Sales Todd Inzinna 51299 Hwy. 51 Tickfaw, LA 70466 225-787-6315

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R & R Auto Sales Beverly Authemont 115 W. Prien Lake Road Lake Charles, LA 70601 337-478-5100

Powell Auto Sales of Ruston LLC Jeffery Powell 105 S. Vienna St. Ruston, LA 71270 318-255-1409

M & M Autoplex Inc. Mohamed Saizad 6124 Florida Blvd. Baton Rouge, LA 70806 225-923-1911

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Ol’Boys LLC Reginald Ruffin 3866 Victoria Drive Baton Rouge, LA 70812 225-356-0224 Perfect Price Cars Sales LLC Cornell Dukes 191 2nd St. New Roads, LA 70760 225-638-7675

Integrity Auto Brokers LLC Jason Desormeaux 17430 Airline Hwy. Prairieville, LA 70769 225-677-7776

Magic Motors LLC Michael McCain 7960 Florida Blvd. Baton Rouge, LA 70806 225-588-3404

Lafayette Wholesale Paul Carriere 2808 W. Pinhook Lafayette, LA 70506 337-781-2813

J’s Auto’s Inc. William Fakouri 1676 Dallar Drive Baton Rouge, LA 70898 225-757-1110 Jerry’s Auto Sales Jerry Chatelain 603 Hwy. 1207 Deville, LA 71328 318-466-3386

FEBRUARY/MARCH 2011

M E M B E R S

Kar Hut Preowned Auto Sales & Motor Scooter Store LLC Robert Cecil 1102 Thomas Road West Monroe, LA 71292 318-387-2209 Murph’s Auto Sales Bill Murphy 10207 Mammoth Ave. Baton Rouge, LA 70814 225-928-2600 Auto Depot & Diamond Auto Sales Fernando Almeida 19634 Hwy. 36 Covington, LA 70433 985-893-0250 Cajun Auto Sales Mo Jalilian 15052 Florida Blvd. Baton Rouge, LA 70819 225-274-8080 Capitol House Auto Sales Norvelee Mestayer 2211 Center St. New Iberia, LA 70560 337-367-2277 Cassard Body Shop Bobby Cassard 114 Bridge St. Donaldsonville, LA 70346 225-473-6731 City Auto Mart Sheldon Young 1428 N. Pine St. Deridder, LA 70634 337-348-6481 Courtesy Auto Sales Inc. Val Clary 3570 Greenwood Road Shreveport, LA 71109 318-636-2577 Don’s Wholesale LLC Danielle Mendoza 7227 Johnston St. Lafayette, LA 70503 337-316-7377 Futch’s Used Cars Inc. Lowell Futch 148 Horseshoe Loop Doyline, LA 71023 318-745-2471

Myers P & I Inc. Catherine Myers 215 Daspit St. Gueydan, LA 70542 337-536-6492

Carolyn’s Auto Sales Carolyn Williford 2358 Hwy. 121 Hineston, LA 71438 318-659-3340

Eagle Eye Auto Sales LLC Ronald Stark 15840 Florida Blvd. Baton Rouge, LA 70819 225-246-8738

No Limit Motorsports Charles Mitchell 4708 Washington Ave. New Orleans, LA 70125 504-482-6144

Dennis Barker Auto Sales Dennis Barker 3402 W 70th St. Shreveport, LA 71108 318-687-8200

Fina Mini Service LLC Galen Johnson 1604 University Parkway Leesville, LA 71446 337-238-3442

Spanky’s Used Cars Daron Williams 2475 Texas Ave. Shreveport, LA 71103 318-670-5009

H & R Used Cars Hector Azuara 1925 N Stevendale Baton Rouge, LA 70819 225-274-9023

Stovall’s Auto Sales Jimmy Stovall 160 Doc Steed Road Minden, LA 71055 318-382-2974

Hwy. 51 Auto Sales Wayne Blankenship 49107 Hwy. 51 Tickfaw, LA 70466 985-429-8881

General Grocery & Auto Sales Freddie Dickerson 2665 Scenic Hwy. Baton Rouge, LA 70805 225-358-0710

Terry’s Auto Sales Weldon Terro 1519 Eva St. Sulphur, LA 70663 337-528-0880

Import One Inc. Hamid Gahassemi 9977 Airline Hwy. Baton Rouge, LA 70816 225-929-9000

Consolidated Truck Salvage Inc. Joseph Martin 4864 Hwy. 182 Houma, LA 70364 985-879-3554

K & W Auto Center Kenneth Smith 3102 W. 70th Shreveport, LA 71109 318-987-8771

Extreme Automotive LLC Vincent Bravata 14427 New Genesse Road Tickfaw, LA 70466 985-542-8035 Oakland Enterprises LLC Shawn McCallon 3504 Barksdale Blvd. Bossier City, LA 71112 318-752-8522 Scott Motors Used Cars Scott Eason 73 Eason Circle Many, LA 71449 318-256-5129 Tangi Rebuilders Johnny Viola 48064 Hwy. 51 North Natalbany, LA 70451 985-510-1335

Gorman’s Auto Sales Bobby Gorman 170 Scorpio Road Hahnville, LA 70057 985-783-2273

Wilson Starter & Altenator Service Inc. Danny Wilson 1027 Lee St. Minden, LA 71055 318-377-4121

Jessie’s Auto Sales Danny Smalling 1509 S. Lewis New Iberia, LA 70560 337-367-9255

A to Z Auto Sales LLC Ricky Riley 30028 Connie Drive Holden, LA 70744 225-567-2550

Marco’s Body Shop Inc. Marco Paniagua 1800 Huey P. Long Ave. Gretna, LA 70053 504-227-8007

Bizee Bee’z Used Car Sales Garland LaFrance 10920 Chef Menteur Hwy. New Orleans, LA 70127 504-913-9754

Maurepas Auto Ventures LLC Louis Dutel 1106 Girod St. Mandeville, LA 70448 985-626-4114 Midway Automotive Inc. Andrew Mercante 108 Scanlan St. Hammond, LA 70401 985-345-5588 Milltown Motors LLC John Perrette 645 Ave. F Bogalusa, LA 70427 985-735-9440

Black Eye Pea Sales Robert Parent 48064 Hwy. 51 North Natalbany, LA 70451 985-345-4641 Boogie’s Autorama Julian Guillory 1309 Hwy. 14 Lake Charles, LA 70601 337-497-1965

Lake Side Auto Sales Randy McLaughlin 9371 Hwy. 28 W. Boyce, LA 71409 318-419-6400 Mark’s Auto Mohammad Karimi 15168 Florida Blvd. Baton Rouge, LA 70819 225-284-5251 Millennium Motors LLC Bill Hebert 1610 Old Spanish Trail Road Slidell, LA 70458 985-643-8427 Rea Brothers Mid-South Auction John Rea P.O. Box 97509 Pearl, MS 39288 Stampley Auto Body Inc. Jonathon Stampley 1751 Scenic Hwy. Baton Rouge, LA 70802 225-387-5339 Star Auto Sales & Star Collision Andrew Nguyen 9506 S. Choctaw Baton Rouge, LA 70815 225-337-7639 Steve’s Auto Sales Steve Hare 1408 Ruth St. Sulphur, LA 70663 337-527-8800 A Plus Auto Sales Worlington Charleston 5485 S. Choctaw Baton Rouge, LA 70805 225-357-0290 Cameron Motors Mitch Vidrin 2327 Cameron St. Lafayette, LA 70506 337-233-5886

Mike’s Auto Sales & Towing Ahmad Sarameh 7905 Hwy. 1 South Mansura, LA 71351 318-240-7969

Mouton’s Auto Sales Inc. Melba Mouton 236 Austin Road Opelousas, LA 70570 337-594-8888 Port City Auto Sales Abby Boushehri 14850 Florida Blvd. Baton Rouge, LA 70819 225-273-2555 Rodolfo’s Auto Sales Rodolfo Batista 1719 Lafayette St. Gretna, LA 70053 504-368-4334 Ron’s Auto Sales Ronald Richardson 28114 Levron Road Holden, LA 70744 225-567-6517 S & W Used Cars & Trailers LLC Russell Kennedy 801 Ave. F Bogalusa, LA 70427 985-735-7449 Tangi Auto Sales Frank Nicolosi 315 W Railroad Ave. Independence, LA 70443 985-878-9636 Tigertown Automotive Wholesale LLC Ellis Hammer 14282 E Blackcat Road Independence, LA 70448 985-542-7554 Troy’s Auto Salvage Troy Rawling 196 Moorehead Loop Kinder, LA 70648 337-738-2381 Ultimate Autoplex LLC Kendall Fontenot 7836 Florida Blvd. Baton Rouge, LA 70806 225-993-1331 W-3 Auto Sales Rodney Walters 108 Hwy. 71-84 Coushatta, LA 71019 318-237-2599

Crown Auto Sales Curtis Stewart 8700 Florida Blvd. Baton Rouge, LA 70815 225-923-0036

1630 North Flannery Road • Baton Rouge, LA

70815

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NADA APPRAISALPRO OPTIMIZED FOR SMART PHONES MOBILE ACCESS TO ITS PRODUCTS. NADA AppraisalPRO has been optimized to work on smart phones, including iPhones, iPads, Androids and Palm Pre/Pixies, in another step to provide clear mobile access to its products. Devel-

oped by NADA Used Car Guide, NADA AppraisalPRO is the only used-vehicle appraisal product on the market to tap the resources and data of six industry leaders: AutoTrader.com, J.D. Power and Associates/PIN, Manheim Market Report, NADA, vAuto and Experian AutoCheck. “We listened to dealers and responded to their needs by making our data and values more readily accessible,” said Mike Stanton, vice president and chief operating officer of NADA Used Car Guide. “There’s no room for error when making buying and selling decisions on the go.” Smart phone users can now view all of the market information offered by NADA AppraisalPRO in a format that matches the screens and functionality of Smartphones, providing clear mobile access to key industry data, including: Asking and advertised prices online (Auto-

Trader.com); What a particular model or similar vehicles are selling for currently in the local market (J.D. Power and Associates/PIN); Auction selling prices, including trim-level detail (Manheim Market Report); Rough, average and clean trade-in, clean loan and clean retail values (NADA); The day’s supply for that area (vAuto); The vehicle’s history (Experian AutoCheck) -- available as an optimized summary or as the entire report for easy access on the go; and A purchase worksheet that lets you input your purchase or trade-in price, add and deduct for reconditioning costs, and see where you stand profit-wise. With this complete picture of the market, dealers can determine a precise trade number or auction bid that reflects actual conditions. In October, NADA Used Car Guide also optimized its NADA Online online valuation product for smart phones as part of its ongoing efforts to increase mobile access to its products.

NADA AppraisalPRO subscribers may use their mobile browser to visit mobile.nada. com/MobileWeb, and then log in to their NADA AppraisalPRO account using their same credentials.

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1630 North Flannery Road • Baton Rouge, LA

70815

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vAuto Rolls Out Mobile App for Android

vAuto revealed recently that dealers can now tap into the company’s usedvehicle management system through their Android mobile devices, giving them another avenue to access the company’s services while on the go. “We are excited to offer our dealers the vAuto mobile app for the Android platform,” says Keith Jezek, vAuto’s president. “This innovation allows dealers to have vAuto in the palm of their hands for accessing realtime market information,” he continued. “vAuto’s live market appraisal and stocking modules are available on the app for making strategic decisions from any location.” Sharing some of the vAuto’s mobile application’s features, it offers third-party guidebooks, auction values and vAuto’s exclusive rBook. Explaining how the latter function works, officials noted that the rBook allows dealers to determine how identically equipped models are priced in their respective markets. Moreover, other features of the mobile app are vAuto’s heat sheet and buy list, which can help dealers figure out and find which models are selling strong in their areas. Officials said that for vAuto customers, there is no extra monthly fee to tap into the mobile app. The application can be utilized on Android 2.1 or higher operating systems. Included in the app is the new advanced barcode vehicle identification number capture. Users with Android devices that have auto focus cameras can utilize this function to automatically decode a barcode VIN and upload it to vAuto. It can be downloaded from the Android market. vAuto’s mobile app is already available via the Apple iPhone and iPod Touch devices.

EV Sales Not Charging Ahead This was the year General Motors and Nissan made good on their promise to bring mass-produced electric cars to the market, but don’t count on seeing one in traffic soon. According to the Associated Press, sales

so far have been microscopic, and they’re likely to stay that way for some time because of limited supplies. GM sold between 250 and 350 Chevy Volts in December, and Nissan’s sales of Leaf sedans totaled fewer than 10 in the past two weeks, the AP reported on Jan. 1. Production for both is ramping up slowly. It will be well into 2012 before both the Volt and Leaf are available nationwide. It’s still unclear just how large the market for electric cars will be once those early adopters are supplied. The base sticker price is $40,280 for the Volt and $32,780 for the Leaf; much higher than most similar-sized, gas-powered cars. If those prices rise, it could make them even more of a niche product than predicted.

The base sticker price is $40,280 for the Volt and $32,780 for the Leaf

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Complying with the Risk-based Pricing Rule

BY LEE DOMINGUE, CEO OF INDIRECT LENDING, WOLTERS KLUWER FINANCIAL SERVICES

As the new Risk-Based Pricing Rule takes effect this month, auto dealers need to make sure they have information, resources and tools in place so they are ready to comply. Applying to Buy Here-Pay Here (BHPH) dealers

and those who do business with third-party creditors, the rule requires dealers to notify consumers when they receive materially less favorable credit terms than others based on consumer report information. According to the new rule, a risk-based pricing notice must be provided to the consumer before signing the credit agreement (direct lending note or indirect retail installment sales contract). The notice must: Include information about the elements of a credit report. State the annual percentage rate and other terms were set based on the consumer’s credit report. State the terms offered may be less favorable compared with the terms offered to consumers with better credit histories. Encourage the consumer to verify credit report accuracy. Identify all consumer reporting agencies that supplied a consumer report used in the credit decision. Inform the consumer of the right to a complimentary copy of a consumer report from those agencies for 60 days after receipt of the notice. Provide guidance on obtaining a consumer report. Direct the consumer to the Federal Reserve Board and Federal Trade Commission’s websites. Dealers can use a case-by-case method, a credit score proxy method or a tiered pricing method to identify which customers must receive a notice. For more info, a Adobe PDF is available at www.ftc.gov/ os/2009/12/R411009riskbasedpricingfrn.pdf. An exception to the Risk-Based Pricing Rule allows dealers to provide a credit score disclosure notice to all customers who apply for credit. This option is only available to dealers who use credit scores in the decision to extend credit. This exception notice must include the consumer’s credit score, the date it was created, its source, and information about the range of scores and how lenders use them. In addition, the notice must provide a description or graphical representation of how the applicant’s credit score ranks in comparison with other consumers. For this, dealers will need data from their consumer credit report suppliers. The exception notice may be the easiest path to compliance for many dealers, as it avoids the analysis of who is required to receive a risk based-pricing notice. However, each dealer should look at its own unique business to determine which compliance option will work best. While dealers may be concerned that the new rule will create more paperwork and administration, risk management platforms can help automate indirect lending, credit approval and compliance processes. By unifying lending transactions and simplifying documentation, a technology platform can enable quicker decision making and help prevent financial and legal penalties resulting from non-compliance. Whatever notice option your dealership pursues under the new rule, automating credit approval and compliance processes can help you ease the regulatory burden on staff resources, reduce your risks of non-compliance, and safeguard your dealership’s reputation. Lee Domingue is CEO of indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/ilsolutions.

HOW MUCH CAN JUST ONE CURBSTONER COST YOUR CITY? Curbstoned cars are often cheap, but state and local governments pay a high price. A new case study from Stop Curbstoning reveals the true cost associated with a single curbstoner. A recent California Department of Motor Vehicles (DMV) curbstoning investigation ended with a felony arrest on 12 counts of perjury and filing false documentation, but for Stop Curbstoning, that was just the beginning. The organization examined the financial impact of curbstoning using this single real-life case as an example. It found cities in which the curbstoner operated lost more than $56,000 in sales tax revenues alone, and the state of California lost $168,000. Other financial costs included lost license revenue, lost local business and potentially increased emergency response burdens due to unsafe vehicles – all from just one curbstoner. “Because there are so many curbstoners out there, even small things add up to a lot,” says Charles Redden, president of AutoTec, one of the companies behind the effort to stop curbstoning. “Take the annual state license fee for used car dealers. In California, it’s $176 for the first year and $126 to renew. But for every thousand curbstoners, that’s over a quartermillion dollars every two years.” “With local governments increasingly strapped for cash, enacting and enforcing anti-curbstoning laws can be a quick way to boost revenues and enhance their communities at the same time.” The community enhancement and public safety aspects of enforcing anti-curbstoning laws are harder to quantify, but should not be underestimated, Redden says. “Getting curbstoned vehicles off the streets frees up parking for local businesses, reduces obstacles to traffic, and eliminates eyesores,” Redden says. “It also eliminates a major source of unsafe vehicles – cars that look OK, but have major structural damage or missing safety equipment. How do you place a dollar value on all that? It’s priceless.”

For more information about the case study, curbstoning and efforts to put a stop to this illegal practice, visit StopCurbstoning.com.

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Louisiana Open Road