NM | Dealer Insight | November 2019 by NIADA

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Index

06.........NIADA Unveils Used Car Industry Report 07........................................... Inventory Selection 08..................................Preparing for a New Year 10................................NIADA Government Report 12...............Safeguarding Social Media Accounts 14............Foundation for Top Sales Achievement

Advertiser’s Index

Alliance................................................................ 9 Lobel Financial.................................................... 3 Manheim ............................................................. 11 NextGear Capital .............................................6-7 vAuto................................................... Back Cover Warrantech...................................................... IBC

What’s New

S AV E T H E D AT E F O R 2 0 2 0 WA A C : M AY 1

Save the Date for the 2020 World Auto Auctioneers Championship! It will be held at Manheim Dallas Auto Auction on Friday, May 1. The event will be streamed live on NIADA.tv. To learn more, visit autochampionship.com.

Office

New Mexico Independent Automobile Dealers Association 604 Chama NE • Albuquerque, NM 87108 Phone: 505.232.0809 • Fax: 505.232.0810 email:marc@nmiada.com website: www.nmiada.com

NIADA Headquarters NATIONAL INDEPENDENT AUTOMOBILE

DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. NM Dealer Insight is published bimonthly by the National Independent Automobile Dealers Association Services Corporation. 2521 Brown Blvd., Arlington, TX 76006-5203. 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 authors and do not necessarily represent the views of NMIADA or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2019 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes • christy@niada.com PRINTING Nieman Printing

BOARD MEMBERS CHAIRMAN

EXECUTIVE DIRECTOR

Roger Barkoff Marc Powell Affordable Auto Sales marc@nmiada.com 4525 Lomas Blvd., NE Albuquerque, NM 87110 DIRECTOR OF SPECIAL PROJECTS (505) 266-2886 Victor E. Saenz 604 Chama St NE PRESIDENT Albuquerque NM 87108 Rob Martinez 505-232-0809 ABQ Auto Deals 169 Griegos NW COMMUNICATION & Albuquerque, NM 87107 POLICY DIRECTOR (505) 554-2428 Adelina Torres adelina@nmiada.com VICE PRESIDENT/ 505-232-0809 SECRETARY Luis Soto Sun City Motors 8504 Central Ave SE Albuquerque NM 87108 (505) 256-1200

TREASURER

DEALER BOARD MEMBERS

ASSOCIATE BOARD Chris Rangel MEMBERS Hiwest Auto Sales Maxine Vega 5904 W. Main St Manheim New Mexico Farmington, NM 87401 3411 Broadway SE (505) 324-8878 Albuquerque, NM 87105 (505) 242-9191 Jeda Craddick Mike Godin Auto Solution Godin Dealer Services 5200 Alameda Blvd NE Albuquerque, NM 87113 PO BOX 67440 Albuquerque, NM 87193 (505) 856-6252 (505) 710-7295 Lisa Enos Hardrock Car Company 3800 Hawkins St NE Albuquerque, NM 87109 (505) 304-0458

Marti Lynn King Daniel Lang All Star Auto Sales Auto Shoppe Import Sales 306 N Canal St 311 Kinley Ave Carlsbad, NM 88220 Albuquerque, NM 87102 (505) 234-1244 (505) 207-9981

Susan Wheeler AFC 608 Chama St NE Albuquerque, NM 87108 (505) 244-3828 Julio Lopez TexCap Financial 14875 Landmark Blvd Suite 125 Dallas, TX 75254 (214) 396-4104

Jose Carlos Bazo Doral Motors Marcus Ardiel Leo Doyal 6701 Lomas Blvd NE Enterprise Affordable Auto Sales Albuquerque, NM 87110 9300 Coors Blvd., NW 4525 Lomas Blvd. (505) 907-9549 Albuquerque, NM 87114 Albuquerque, NM 87110 (505) 881-8700 (505) 266-2886

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ASSOCIATION NEWS

2 0 19

A PUBLICATION OF THE NATIONAL INDEPENDENT AUTOMOBILE DE ALERS ASSOCIATION

Section 06 LOOKING

AHEAD:

Most Comprehensive Picture of the Used Vehicle Industry

THE USED

TIPPING Used vehicles POINT have finally to new, and market factors emerged as a compelling Growing new-vehicle in 2019 alternative used vehicles transaction will only increase new-vehicle their prices and have expanded transaction vehicles. Additionally, an oversupplyappeal. percent the savings APR and steeply prices more palatable, of advantage route since consumers such as zero in pre-owned Without these incentives,discounted leases, late-model give up less the body styles cars to used vehicles going have dried we expect Americans are rich in technology the used up. shoppers for the significant SUVs. At the While the gravitate will gravitate and come same time, new incentives toward, namely trucks in million sales vehicle market is savings they present. that have expected and made record-high to vehicle sales, for the first time in five years, fall below 17 strengthen which crossed 40 we million units expect used and grow. in 2018, to SHARE OF FRANCHIS E USED SALES BY VEHICLE AGE

SOURCE:

3-YEAR-OL D VEHICLES ALL FRANCHIS MAKE UP ED USED 23% OF SALES

Edmunds

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FOR MORE INFORM www.cox autoinc.c ATION, VISIT om/news

To view the room full 2019 Cox & Outlook Automotive (CAMIO) flipbook, Market newsroom and click CAMIO. go to www.coxaut Insights section for Visit the Market oinc.com/ regularly-up a comprehens Insights dated data and information ive list of industry affect the on new- and used-vehicle drivers and topics that markets.

Automotive lending has been robust Auto loan originations throughout in dollar volume this growth billion, breaking cycle. in 2018 increased the previous In the fourth according record of to $584 quarter of to the $569 billion 2018, the to subprime set in 2017, loan originations, Federal Reserve Bank share of auto borrowers loan origination of New York. was 19.3%, 2018 was down from of the data For auto the highest up volume its recent for auto loan year in the peak of 25.4% from 18.9% the prior originations 19-year history in used sales year and in the second Of consumers (in nominal more than quarter of terms). Growth offset the with active prices for 2015. decline in defines them both new credit, 20% new, and and used have a score as subprime, higher vehicles drove that according Judging from up loan amounts. to Equifax. The share the of subprime readily available, new loan origination lending to be healthy volumes, which is helping and sustainable today appears credit remains to keep demand subprime as it is normal borrowers SUBPRIME robust. for to be represented LENDING according AT HEALTHY A key measure to their proportion in auto LEVELS of health and of the population. loans number of stability in Auto lending loans being auto lending is diverse, made to subprime there was is resilient and Auto lenders the plenty of credit reactive to borrowers. can 2017 and available in market trends. Overall, lending markets tolerate more risk consumers compared because the took advantage 2018 compared to borrowers to other types valuation and risk is worth were of that. More of recovery help the reward. used vehicles able to obtain loans subprime limit losses Ease of on both new in 2018 – even A first auto a leading in the event vehicles and The implication loan, reason for of default. is that lenders overall sales the beginning especially for a young, loans given lower-incom growth. of low unemploym saw advantages e borrower, building credit. the move up the social in subprime ent and low is often ladder and Data from delinquenci are correlated. a crucial part Equifax show es. of that age and An adult under have a credit credit scores 35 is more score under than 50% 620 compared more to the broader likely to AUTO LOAN population. ORIGINATI ON $ BY CREDIT SCORE

2019 N I A DA U S ED CAR INDUST

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8/29/19

2019 MA RK ET INS IGH TS & OU TLO OK 30

NIADA UNVEILS 2019 USED CAR INDUSTRY REPORT

RY R E P O RT

8/29/19

10:34 AM

10:34

NIADA presents its 2019 Used Car Industry Report, an annual array of facts and statistics that provide the clearest, most comprehensive picture available of the state of the used vehicle industry and the trends shaping its future. The report, which was unveiled in September at the NIADA National Policy Conference in Washington D.C., was delivered to association members along with the October edition of Used Car Dealer. It’s also available online – free for NIADA members and for purchase by non-members – at www.niada.com. The report includes new insights into familiar areas, including the 2019 Car Buyer Journey Study from Cox Automotive, an important look at the customers purchasing used vehicles and how they shop; Edmunds’ Used Vehicle Outlook, including CPO data; GoldStar by Spireon’s look at GPS technology’s effect on the impact of impound fees; CarGurus’ section on auto buying patterns by body style; and the latest on digital consumer

experiences in auto finance from RouteOne. The report also explores new areas, such as Dominion/Cross-Sell’s look at Carvana’s business model and how to compete with it, Carfax’s research into merchandising in today’s digital world, tips from Home Loan Investment Bank to help customers get credit application approvals, TrueCar’s study of trade-in process trust issues, insight into dealer ROI from Autosoft and a section detailing the rise of mobile chat and lead generation data through that growing marketing medium from new NIADA industry partner OfferUp. And, of course, the Used Car Industry Report includes the staples – NIADA’s member and business confidence surveys, Buy Here-Pay Here benchmarks from NABD, Subprime Analytics and NIADA Dealer 20 Groups, used car sales by channel by month from J.D. Power/NADA Used Car Guide, information on the auto finance market from Equifax, Black Book’s retention values analysis and Auction Perspectives from industry leaders.

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ACCELERATE |

By GWC Warranty

INVENTORY SELECTION

Trust the Data

When it comes to acquiring the right inventory for your lot, it’s easy to go with your gut and buy a car based on your experience and savvy. But what if your general industry acumen could be augmented by data and information that will help you find cars that can fly off the lot just as quickly as you get them there? To find out if you are seeking out the right inventory for your lot, you have to be able to look in the mirror and answer a few questions honestly. If you can do that, your acquisition strategy can go from trusting your instincts to trusting the numbers.

What has sold in the past? If you can go back into your books and find makes and models that have sold particularly quickly, you might just find a few surprises. Your customers might tell you they want more trucks and SUVs, but the data show that economy cars or luxury sedans move more often. You want to buy what your customers tell you they want, but your bottom line could benefit by buying vehicles you know will move quickly. Have you ever bought a car for you? Here’s where you really need to be honest with yourself. We’re not talking about getting

a car at auction for you to own yourself. Rather, we’re talking about a vehicle you bought because it appealed to your tastes. This is an instance where your gut tells you that you’re buying a great car – and you very well may be – but are you buying a car that will sell quickly? It’s imperative you resist the urge to bid on a car just because it’s a car you’d like to see front and center on your lot. Are you looking in the right places? We’re all creatures of habit. We know the auctions we like – we’ve had success at them in the past and we don’t see a reason to change. However, today’s automotive industry is ripe with vehicles you can find at the right price. Have you checked online auctions? What about competitors that have trouble selling a vehicle that’s in your sweet spot? How about giving a shot to that auction a couple hours away you’ve heard so much about? Trying a new source for your inventory could be just what you need to find more of the right cars at just the right prices. Once you’re able to take a hard look in the mirror before heading out to the auction and answer these three questions, you’ll be well on the road to moving metal at a faster pace than you’ve ever seen before.

THAT’S MY PATH TO +MORE ALEX BALK | CARite | FORT PIERCE, FL

We’re turning inventory an average of 12-14 times a year, which wouldn’t be possible without our floor plan. Not only does NextGear Capital provide me with ﬁnancing, but they support my business with technology that keeps it moving.

Discover where we can take you. Visit nextgearcapital.com.

*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reﬂecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

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MANAGEMENT MATTERS |

By Jennifer Finlay

PREPARING FOR A NEW YEAR

Evaluate Where You’ve Been and Where You’re Going We are coming to the end of 2019. Don’t let one year fade into another without really evaluating where you have been and figuring out where you are going. How was your year? Did you achieve your goals? Did you even have goals in place? What were your biggest struggles? Were you able to stay within budget? These are some of the questions you should be asking yourself in preparation for the coming year. Having a structured plan of action is one of the best ways to get started with a new year. Running a business is time-consuming and at times exhausting. Staying in front of potential problems or shortcomings that could sabotage your growth is critical to your success. I know firsthand how easy is it is to neglect things. Sometimes it’s tough to just get through the regular day-to-day tasks. You have bills to pay and payroll to handle. Then you have finding the right inventory, selling sufficient vehicles and the list goes on and on. But just keeping up will not push you forward. You know the saying, “You can’t keep doing the same thing and expect a different outcome.” If you want to sell more, grow the business, be more in compliance, build your reputation, etc., you have to work at it. The end of the year is the perfect time to create a plan that will work for you. Set aside some time and determine where you want to be this time next year. Here are a few tips and ideas to get you started. THINGS TO RE-EVALUATE Spending: One of the best ways to evaluate this is to look at your P&L and vendor statements. Highlight the non-fixed expenses. For example, your electric and water bills will not fall into this category. Non-fixed expenses would be things like water delivery, uniforms, printing expenses, office supplies, interest rates, bank fees and title services. Shop these items – see what else is out there. None of these vendors or suppliers will ever call you and offer you a better deal because you have been with them for however many years. It doesn’t work that way. If you find a better deal, call your current vendor and give them an opportunity to match or beat what you found. You will be shocked at the amount you can shave off your accounts payable. Internal processes: This could include anything from sales procedures to advertising methods, hours of operation, the amount of your dealer fee and any policies concerning deposits, money back guarantee or in-house warranties. Do you recall there being any issues with

any of them in the past year? Is your dealer fee still enough to cover what you need it to? Do you not have a dealer fee but wish you did? Are customers’ deposits refundable if they change their mind? Is that working for you? All of these things can be adjusted. I don’t advise you change these things back and forth throughout the year, however. That shows inconsistency and overall is not a good practice. But the end of the year is a great time to make these decisions and have a plan ready for January 1. Your exposure: Surprisingly I see many dealers fall short in this area. Of course, the end goal in this business is selling inventory. It’s how the money comes in to sustain operations. Too often I see dealers with tunnel vision focusing solely on that. There is a proper path to that end goal, and if you don’t recognize it you will never be as successful as you could be. Exposure is simple. It goes hand in hand with relationship building. It doesn’t have to cost a lot or consume a great deal of your time but it must be addressed consistently and frequently. So, what is this exposure I am talking about? Easy – get involved! There are so many ways to get your business in the spotlight. A great way to get started is by joining your local IADA. They have a huge network of dealers as well as industry resources that benefit dealers significantly. They also host events throughout the year that provide opportunities to build relationships with others in the industry. Another way to gain exposure and achieve brand recognition is to sponsor things in your community. This could be a toy or food drive, blood drive, a little league team or even have staff members trade off volunteering at an animal shelter or food bank. Most of these events will have some sort of literature printed to promote them. Your company name will be on it and given to their target market. This type of exposure has a dual outcome. First, it gets your name out there. Second, it makes everyone know you are the type of business they want to do business with. How will you get new and different exposure this new year? Training and education: This too is an area I see dealers neglecting. Don’t make that mistake. Proper and ongoing training and education is a must, starting with the onboarding of new employees. You should have a detailed description and job outline in place for each employee. This reduces confusion about what you expect and how you expect duties to be carried out. It seems like a simple concept but you

would be surprised how important it is. You know how you want the business to run. You have a vision of sales and customer service. Put a training process in place that will ensure your employees understand that vision and then give them the tools to make it happen. Continuing education is equally important, not just for employees but also for owners and managers. Regulations, laws, and statutes change more frequently than most dealers realize. Staying on top of changes in these as well as industry trends will keep you at the front, and out of trouble as well. Trying to stay in compliance with the DMV, the Department of Revenue, the Trade Commission, the attorney general and the IRS can be time-consuming and tedious when attempted on your own. There are several companies that offer training in these areas. Don’t try to go it alone. It’s more efficient when you have help. Think about what you need to learn in the coming year that will help protect your business. Safety: As a business owner, of course you want your employees to have a safe, hazardfree work environment. A safety manual is a good start, as well as regularly scheduled maintenance checks around the property. In addition, customer safety should be a priority. One injury could potentially cost you what you’ve worked so hard to build. An end of year physical inspection of the property and any equipment will determine if any repairs need to be made. Appearance: Take the time to pull up to your dealership slowly and thoughtfully. Look at everything. I mean, really look. Are things overgrown? Is the paint faded? How is your signage? We tend to overlook these things as we focus on getting other things done. Do the same thing when you step in the office. Is there clutter? Sit on the other side of your desk where your customer sits. See things from their perspective. How does it look? Do you have things to make your customer comfortable while they are there? Do you have an area for children to be occupied? The more comfortable your customer is the more you will keep their attention. So think about what you could improve. These are just a few things to think about when closing out a year and moving into a new one. It’s about striving to be better than the previous year. List your goals and changes you want to make and put a plan in place to make it happen. Jennifer Finlay CPFS is director of marketing and sales at Sure Title. She can be reached at jennifer@flatags.com.

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ACCELERATE | By GWC Warranty

IT’S TIME TO MAKE TIME FOR TRAINING

Get Started on a More Successful Dealership With everything you handle on a given day, it’s easy to dismiss training for you and your staff. You understand the value, but always find a reason to put it off. But that can end today. Sure, your main goal is to sell cars. That goes without question. Without finding ways to keep things fresh and continuing to evolve, however, you risk falling behind the competition. You probably already understand this and therefore see the value in dealership training, but it’s easy to watch the busy days, weeks and months fly by without pursuing the training your dealership needs. That said, there’s no better time than the present to overcome these common reasons for putting training on the back burner and get started on a path to a more successful dealership today. Not Enough Time This is the easiest excuse when it comes to avoiding a training program. It’s also the easiest to overcome.

There are countless options for online training you can complete on your own time. Convenience is just the first step though. Setting deadlines is on you. Give you and your team goals to complete certain coursework and you can begin holding each other accountable to chip away at the training iceberg. Not Enough Money Training can be expensive. But it doesn’t have to be. Looking in unexpected places for ondemand training (like your vehicle service contract provider) might be your ticket to affordable – or even free – training resources. A quality VSC provider will value your loyalty and be able to provide training for your entire dealership that will help you be more successful and efficient in every aspect of your business. Not Enough People So you have a small team, maybe even a team of one, and you think training would be

a waste of your time, right? Wrong. Small teams need training that can maximize success and efficiency more than any others. If you’re running a small shop, you need to maximize all your resources. Learning best practices, pro tips and processes that diversify your skills could actually be the best use of your time. Not Enough Opportunity You might be more of a numbers person and you’ve historically had trouble quantifying the opportunity training holds. When overcoming this objection, think about if you had two more upsells in the F&I office each month. Or if you sold five more cars. Or if you learned about a new product that could double F&I revenue. Unless you train on the processes and methods you can employ to achieve these goals, you’ll have no path to get there. There is always opportunity and room for improvement in your dealership, and training is the road to get there.

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WASHINGTON UPDATE |

By Shaun Petersen

NIADA GOVERNMENT UPDATE

Latest Government Issues and Activity NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. LEGI SL AT I VE On Sept. 20, the House of Representatives passed H.R.1423 – the Forced Arbitration Injustice Reform (FAIR) Act – by a 225-186 vote that went virtually according to party lines, with two Republicans voting for it and two Democrats against. The bill, which was introduced by Rep. Hank Johnson (D-Ga.), would ban all pre-dispute agreements that require arbitration and prohibit class-action lawsuits in employment, consumer, antitrust and civil rights disputes. Arbitration was one of the key issues on NIADA’s agenda during the recent National Policy Conference in Washington D.C. During the Day on Capitol Hill, dealers advocated against the proposal, explaining to members of Congress it would hinder their ability to slow the onslaught of frivolous classaction lawsuits and adversely impact consumers’ ability to get a faster, more efficient resolution through arbitration. Data compiled by the Consumer Financial Protection Bureau shows consumers received considerably more in arbitration than in class-action cases. While attorneys took in more than $400 million in fees in the class-action cases studied, consumers averaged less than $33 in awards in those same cases. In addition, a recent study by the U.S. Chamber Institute for Legal Reform found employees prevailed three times more often in arbitration, recovering twice as much money and resolving their claims more quickly than in litigation. The bill would also result in increased consumer costs, as dealers and finance companies would pass on the expenses associated with defending class-action cases to their customers. A similar bill (S.610) has been introduced in the Republican-controlled Senate by Sen. Richard Blumenthal (D-Conn.), and NIADA is urging senators to oppose the measure. NIADA has had success in the area of arbitration before. In 2017, NIADA pushed for Congress to take action against the CFPB’s rule eliminating arbitration agreements. Later that year, Congress voted to repeal the Arbitration Rule using its power under the Congressional Review Act.

R E G UL ATO RY The Department of Justice has filed a lawsuit against a Maryland independent dealership for alleged discrimination in its financing practices. Guaranteed Auto Sales, owner Kelly Ann West and general manager Robert Chesgreen are accused of violating the federal Equal Credit Opportunity Act by offering different terms of credit to potential car buyers based on race. The suit is based on DOJ’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices – in this case, the dealership allegedly “engaged in a pattern or practice of discrimination” by offering less favorable finance terms to African American testers than white testers. According to the complaint, employees of Guaranteed Auto Sales told African American testers they needed larger down payments than white testers for the same vehicles. African American testers were also required to make their down payments in one lump sum, while white testers were given the option of paying in two installments. The lawsuit asks for a court order barring Guaranteed Auto Sales from discriminating against customers on the basis of race “with respect to any aspect of a credit transaction,” as well as unspecified monetary damages to compensate any victims of the dealership’s alleged discriminatory practices. PAC Car City, the Grand Rapids, Mich., dealership owned by NIADA secretary Jeff Baker, hosted a visit by Rep. Bill Huizenga (R-Mich.), a member of the key House Financial Services Committee. Huizenga took a tour of the dealership and met with its management. He was also presented with a campaign contribution from the NIADA-PAC fund for his efforts to protect the interests of the used vehicle industry and small business. The PAC fund also made contributions during the National Policy Conference to 2019 NIADA Legislator of the Year Rep. Blaine Luetkemeyer (R-Mo.) and Reps. Andy Barr (R-Ky.) and Stephanie Murphy (D-Fla.).

G R AS S RO OTS Illinois IADA held a Town Hall meeting Oct. 8, during the NABD BHPH Subprime Conference at the Marriott Marquis in Chicago, to discuss a state law scheduled to take effect Jan. 1 that would cap the sales tax trade-in exemption at $10,000, significantly increasing the amount of tax paid on many vehicle purchases. The meeting was attended by some 60 independent dealers and affiliated industry partners, who heard from – and shared their thoughts with – three state senators: Republicans Don DeWitte and Sue Rezin and Democrat Ram Villivalam. IIADA has joined with the state’s new car dealers association to fight the tax increase before it takes effect. With the state seeking revenue to fund its skyrocketing budget, IIADA has proposed replacing the trade-in change with an increase in the sales tax on private sales, which are currently taxed at a lower rate than dealer sales. In addition, the association would work with lawmakers on drafting legislation to crack down on curbstoners. “The idea is if we catch more curbstoners we can get taxes out of them,” IIADA chairman and NIADA treasurer Gordon Tormohlen said. “They’re just skirting around the system right now.” The outlook, Tormohlen said, is promising. At press time, the Illinois Legislature had a veto session – a special session called to review and reconsider previously passed legislation – scheduled for Oct. 28-30 and Nov. 12-14. Bills have already been introduced by state Reps. Tom Bennett (R) and Ryan Spain (R) that would eliminate the new trade-in tax change. “The takeaways from the Town Hall were positive,” Tormohlen said. “It was a very productive meeting and our ideas were very well received.” After the meeting, Tormohlen said the IIADA board of directors planned to continue discussions with legislators leading up to the veto session to “really put an exclamation point on it.” Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

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SOCIAL MEDIA | By Kathi Kruse

SAFEGUARDING DEALERSHIP SOCIAL MEDIA ACCOUNTS Make Sure Your Business Page is Secure

Even though social media has become mainstream, there are surprisingly many dealers who haven't secured their social media accounts. I’m regularly asked by dealers about the best ways to safeguard their social media accounts. Rather than leave things up to chance, let’s discover the best practices for securing your online accounts so you can feel more comfortable about one of your most valuable company assets. We've all witnessed at least one of the embarrassing or dangerous debacles that happen when social media accounts are not secure. I want to make sure this doesn’t happen to you.

SECURING YOUR SOCIAL MEDIA PROFILES I break this down into easy-to-digest parts. You can examine each one, determine if you're on the right track and make a course correction if necessary. Step 1: Always use work emails for social media admins. Provide your social media manager (or any employee) with a work email address, one that you as the owner have control over, such as [employeename]@ [yourwebsiteURL]. The email must be hosted on your own server and your IT department should always have control of it. Some employees want to use their private emails. This should be avoided at all costs. Why? If they ever leave, they have access to your social media accounts and you do not. Step 2: Periodically confirm your admins. Make sure your social media manager and other social profile admins are using their specific work email addresses. If something happens – they leave, you terminate them, they become unable to perform their job, etc. – you'll have control over that email and, if necessary, you can change the password immediately. Step 3: Setting up Facebook. All Facebook Business pages are created and set up using a personal profile. You log in through a personal account to access the business page. I recommend using an email address similar to what I suggested above or socialmediamanager@[yourwebsiteURL] to set up the personal profile for company use. You may also use the owner’s personal Facebook login if he or she is using Facebook. Since the email address will always stay with the profile (you cannot change it), you’ll want to keep the email address accessible

should you change personnel. Next, you'll “create a page” (as Facebook calls it) while logged into that personal profile. Once the Business Page is set up, you’ll make 3-4 more trusted people admins of the page, such as: • Your social media manager. • You, your GM or CEO. • Your CFO or HR manager. • IT manager. ProTip: If your Facebook page and other profiles are already set up and/or you’ve been using them for a while, perform an audit of the “admins” on each platform to make sure you’re following these best practices. Don’t wait until it’s too late – after someone has left and you’ve inadvertently given up control of your page to nonstakeholders. Again, the social media manager should only be able to use their work email address to access any profile. If they ever leave, you'll have control over it and change the password immediately. If someone such as your social media manager has accidentally or unknowingly made himself or herself an admin using a personal email, you can easily remove them as an admin and invite them back using their work email address.

ADDITIONAL SAFEGUARDS It's important to cover all your bases when it comes to dealership assets and reputation. Safeguard against common catastrophes by including these steps in your overall digital strategy. Hire the right person. I know that sounds obvious but I always mention it to reinforce the importance. Here's what nobody tells you: hiring a social media manager is a challenge. During the hiring process, you'll need to figure out who measures up and who doesn't. Many owners or HR managers don't spend a lot of time on social networks so it's quite a challenge to figure out who the best candidate may be. When you're ready to hire your social media manager, pose specific questions to your candidates. Their answers will inform your decision and help you pick the right person. Ask candidates questions such as: • What social media platform(s) is/are best for our dealership? Why? • What's the most important thing a social media manager should be doing? • Have you ever had to handle a social media crisis? If so, explain the outcome. • What social media strategies do you plan to use to generate leads? • What should your first goals be?

Implement a policy for employee use of social media. Things happen. Even good employees are capable of going to the dark side. The name of the game is to provide an environment that mitigates it. Negative environments often reflect company culture, employee morale and job satisfaction. Most owners/GMs believe they are providing a safe, productive, supportive and enjoyable workplace. However, employee perceptions don't always align with management assumptions. Regardless of the reasons negative outcomes happen, it's best to have a clear cut social media policy that everyone agrees to and adheres to. Should something go wrong – such has a disgruntled employee taking over your social media accounts – a policy for employee use of social media itemizes the penalties for specific behavior, creating a deterrent should things not go as expected. At Kruse Control, we provide such policies for clients. Your social media policy should: • Set the parameters for employee use of social media. • Describe the value of social media. • Briefly outline each platform and best practices. • Describe any unique, company-specific situations where a problem can arise. • Establish protocol when a situation calls for escalation. • Discuss how to handle a problem or crisis. The target outcome of a social media policy should help your dealership market itself successfully on social media while protecting it from precarious situations that lead to outright debacles. The social media policy should be included in your hire package for all new employees, along with a signed acknowledgement to store in their personnel file. For current employees, I would have a meeting explaining you're planning on implementing a social media policy and convey why it's important. Pass out a copy of the new policy and allow a few days for each employee to review it (and for you to answer their questions). Then, within a week or less, require them to return the signed acknowledgement to the HR manager. A word of caution... Under no circumstances should a dealership ask for access to employees’ personal social media accounts. Many state legislatures have drawn a firm line on the matter. Nearly half of states have passed laws prohibiting employers from asking applicants and employees for their social media login information, to bring

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MARKET WATCH

MAGAZINE TOUTS BEST USED CARS FOR TEENS

up their social media pages in the employer’s presence, to change their privacy settings to make the page accessible to the employer, or to add anyone as a “friend” or contact to a social media page. This practice also sends very negative messages to your rank and file that you don't trust them. There's no real benefit to asking and it does a lot of harm. Instead, allow your social media policy to do its job. Every dealership has distinct and important needs. To create the best possible outcomes, it's crucial to incorporate a company's unique needs, specific daily operational situations, and employee relations into each social media policy. There have been far too many situations where dealership social media accounts have not been secured. Please use these steps to assess your own process and policies. As always, I’m happy to answer your questions.

Used Car Rankings

U.S. News & World Report has unveiled its list of Best Used Cars for Teens. Used car rankings are based on model categories, rather than price. • Large car category: 2016 Buick LaCrosse • Midsize car category: 2016 Toyota Camry/Camry Hybrid • Small car category: 2016 Toyota Prius • Small SUV category: 2016 Hyundai Tucson • Midsize SUV category: 2015 Chevy Traverse To be named a Best Used Car for Teens, U.S. News required a vehicle be from the 2014 through 2016 model years, as cars from earlier years don't have enough advanced driver assistance technology to be considered the best for inexperienced drivers. Also considered were high dependability, safety ratings, ownership costs and positive reviews, as well as available tech that can help prevent crashes or lessen their severity. The 2019 Hyundai Accent topped the list of best new cars for teenage drivers, according to U.S. News.

Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.

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SALES MATTERS |

By John Chapin

THE FOUNDATION FOR TOP SALES ACHIEVEMENT

Ingredients to Build a Solid Sales Foundation As the saying goes, “A house is only as strong as its foundation.” It takes a strong foundation to ensure sales success. Following are six high-achievement ingredients necessary to build that strong foundation. Be in sales for the right reasons. The first thing I look for in a potential new sales rep is people skills. To have longterm success and become a top achiever, you must be able to understand and communicate with people while also having a great capacity for empathy. Genuine care and a desire to serve and help people is a must. One must also have a burning desire to succeed. A desire to make a lot of money is a good place to start. But it’s also important to know why making a lot of money is important. These reasons should be ones that enhance the life of the salesperson as well as the lives of those around them and the world as a whole. The right attitude and beliefs. What is your daily attitude like? Do you always see solutions when you face problems? Do you stay positive in the face of all challenges? Looking for the positive side of a situation is a habit, and, like most good habits, it can be developed. I’m not saying you need to have a smile on your face 24/7 and believe issues never arise in life. I am saying don’t allow yourself to go to the other extreme of complete negativity and get overwhelmed to the point where you can’t act. When you see a tough situation, recognize it, try to find some positives, keep a good attitude, and ultimately resolve the situation as quickly as possible. What is your motivation level? You need to be highly motivated and ready to work as hard as you have to in order to reach the top and remain there. How about self-confidence? To get to the top in selling requires high self-confidence and high self-esteem. Are you a self-starter or do you need someone to give you a push? To get to the top in sales, you must be a self-starter. You must be motivated from within rather than needing someone to keep pushing you or keep you driven to succeed. To get to the top, you must also be a consummate professional and exude integrity – at all times. Finally, do you see yourself as a person who is completely responsible for your life and what happens in it? This kind of

responsibility is the cornerstone needed for great achievement. A willingness to pay the price for success. How far are you willing to go to be successful? There is a price for success and top salespeople have chosen to pay it. Are you willing to do whatever it takes, ethically, to get to and stay at the top? “Hanging out” with the right people. Who do you hang around with and where are they going? You must hang around successful people who are growing personally and professionally and who support your goals and dreams. Birds of a feather do flock together, and the wrong group of people can drag you down quickly. This doesn’t mean you need to immediately discard your friends and family if they aren’t completely supportive of you. However, as you progress toward your goals, you may find yourself gathering a new group of friends and hanging out with certain negative people less often. Let friends and family know the track you’re on and ask them to help or even to join you in the adventure. Good health. How is your health? It isn’t possible to operate at your highest levels, both mentally and physically, if your health isn’t good. If you are tired, run down, or frequently ill, you will not be motivated, and you will not perform well. You need to get plenty of sleep, eat properly, and exercise on a regular basis to be a consistently top salesperson. Good health also includes your overall mental condition. While sleeping, exercising, and eating right will help your mental state, you must also develop the ability to handle stress, unexpected problems, and other similarly negative things that may affect your emotions. A life with balance and growth. While the beginning of your sales career, or a new job, will be heavily weighted toward your career for the first three to five years, you don’t want to go all-in on your career at the expense of everything else. You must still make time for health, the people in your life, and other things that are important to you. Considering you have 168 hours in a week, there is time to spend 70 hours, or more, at work, and still take care of the other areas your life. But it’s going to require you be a master of your time.

THESE SIX INGREDIENTS ARE NECESSARY FOR CONSISTENT, LONG-TERM TOP PERFORMANCE. IF YOU DON’T HAVE THESE SIX ESSENTIAL INGREDIENTS IN PLACE, YOU WILL FACE SOME DAUNTING CHALLENGES. For short periods, you can devote an inordinate amount of time to one area of your life and neglect the others. However, if you do that for too long, your attitude will suffer tremendously, along with your health and relationships. You may not get to each area every day, but in the course of a week be sure each area of your life is getting its share of attention. Finally, you must be passionate about what you are doing, and you must always be growing personally and professionally. These six ingredients are necessary for consistent, long-term top performance. If you don’t have these six essential ingredients in place, you will face some daunting challenges. The good news is all of these can be learned. Granted, few of them are mastered easily if you haven’t already developed them. However, if you are truly committed to becoming a top salesperson, you can develop them. There is always hope. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.

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