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New Privacy Rules Means New Forms Page 10 OIADA Scholarship Winners Page 12
Warren Chosen as Head of New Consumer Bureau Page 16 Change Service Requested DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
OIADA, P.O. Box 6905, Moore, OK 73153
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Trent Hickey
INSIDE
Wins State Bike Championship An Oklahoma used auto dealer has won the Category 4 Oklahoma State Road Race Championship. Trent Hickey of Don Hickey Used Cars in Oklahoma
City is a member of the Bicycle Racing Association of Oklahoma (BRAOK). In a race held August 21, at Flint Ridge Resort near Kansas, Okla., Trent led a field of 48 men to a victory for Oklahoma bikers. The grueling 5.6-mile circuit included a steep three-quarter-mile climb, brutal (but beautiful) hills and a fast downhill on each of five laps for the category 4, open-age event. Trent has been trying for the championship for four years. He says during that time, he has been getting older but the competition keeps getting younger. The BRAOK is a statewide membership organization whose mission is to educate, promote and enhance the sport of amateur bicycle racing in Oklahoma. It operates exclusively for the purpose of support and development of amateur athletes and fostering of national amateur sports competition. We take this opportunity to congratulate Trent Hickey on his efforts to promote amateur athletics and on his state championship win. The OIADA invites and appreciates dealer stories of human interest we can include in this publication.
MAGAZINECONTENTS 8 9 10 12 16
Best Practices for Financing Customers NADA/ADESA Offer Free Inventory Strategy Seminars New Privacy Rules Means New Forms OIADA Scholarship Winners Warren Chosen as Head of New Consumer Bureau
THE CURRENT STATE OF THE AUTO INDUSTRY John McElroy is host of the long-running "Autoline Detroit" television program, covering all aspects of the automotive industry. In this presentation, McElroy provides a thorough and insightful review of where we've been, where we now are, and where our industry is headed. Taped at the Automotive Fleet & Leasing Association's Annual Conference.
CATCH THIS ON WWW.NIADA.TV
ADVERTISERSINDEX ADESA ..........................................................................13 Albright Insurance ............................................................7 America’s Auto Auction ........................ Inside Back Cover AutoTrader.com................................................................5 Cars.com ......................................................................17 Dealers Auto Auction of OKC ..........................Back Cover Jordan Insurance Group ..................................................9 Loftis Wetzel Insurance ..................................................21 Manheim.com ................................................................15 Manheim North Texas .......................... Inside Front Cover SmartAuction..................................................................11 Western General / Protective ........................................19
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.
BOARD OF DIRECTORS PRESIDENT John Easttom Auto Mart of Elk City P.O. Box 981 Elk City, OK 73648 Phone: 580-225-1100 Email: automart@cableone.net CHAIRMAN OF THE BOARD David Rath Altus Main Street Motors P.O. Box 603 Altus, OK 73522 Phone: 580-477-2272 Email: mainstreetmotors@sbcglobal.net SECRETARY/TREASURER Bruce Beam Dealers Auto Auction of OKC 1028 S. Portland Oklahoma City, OK 73147 Phone: 405-947-2886 Email: www.daaokc.com
VICE PRESIDENTS John T. Longacre, IV Taft Motors, Inc. 722 S. Linden Street Sapulpa, OK Phone: (918) 224-7700 Email: taftmotorsinc@msn.com Julian Codding Reliable Motors, Inc. 9201 S. Shields Oklahoma City, OK Phone: (405) 912-5000 Email: juliancodding@msn.com Monte Shockley Shockley Auto Sales 2605 N. Broadway Poteau, OK 74953 Phone: 918-647-3999 Email: sas@clnk.net
Chris Goad Regal Motors 3515 N. May Oklahoma City, OK 73112 Phone: 405-917-5800 Email: managerokc@regalcars.com Glenn McDaniel I-35 Credit Auto 1113 SE 51st Street Oklahoma City, OK 73129 Ph. 405-670-4100 David McQuerry McQuerry Motors, Inc. 1302 N. Harrison St. Shawnee, OK 74801 Phone: 405-273-8171
OFFICE ROSE & ODELL MORGAN, Executive Directors JACKIE GARNER, Office Manager AMBER SNOOK, Administrative Assistant JARED MORGAN, Electronics/Software Technician LYNNA KAY, Programmer STEVE MORGAN, Consultant MIKE MORGAN, Technical Aide
DON’T FORGET TO VISIT OUR WEBSITE FOR IMPORTANT INFO: WWW.E-OIADA.COM
DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA (ADR) PRODUCED ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), P.O. BOX 6905, MOORE, OK 73153. THE DEALERS’ RESOURCE IS PUBLISHED MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION. PERIODICAL POSTAGE PAID AT ARLINGTON, TX, AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO OIADA, P.O. BOX 6905, MOORE, OK 73153. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF ADR OF OKLAHOMA, THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF OIADA OR NIADA DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2010 BY O&R MORGAN, INC. DBA OIADA. ALL RIGHTS RESERVED. DEALERS’ RESOURCE IS A PUBLICATION OF AUTOMOTIVE DEALERS RESOURCE OF OKLAHOMA ON BEHALF OF THE OKLAHOMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION (OIADA), BUT IS MAILED TO ALL DEALERS IN THE STATE IN AN EFFORT TO EDUCATE AND ENCOURAGE NON-MEMBERS TO JOIN THE ASSOCIATION AND SUPPORT OUR EFFORTS TO IMPROVE THE IMAGE AND PROFIT POTENTIAL OF THE INDUSTRY. FOR 55 YEARS, WE HAVE WORKED TO REPRESENT THE INDEPENDENT MOTOR VEHICLE DEALER IN OKLAHOMA. WE NEED YOUR SUPPORT.
MGR./SALES: Troy Graff • troy@niada.com EDITOR: Mike Harbour • mharbour@niada.com ART/PRODUCTION MGR.: Christy Haynes • christy@niada.com PRINTING: Nieman Printing FRONT COVER BY Mike Morgan
For information on how to become a member of OIADA please contact Rose or Odell Morgan at 405-232-2947. OIADA Office 813 Northwest 34th Moore, OK 73160 Email: odell.morgan@sbcglobal.net
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IRS Removes Debt Indicator for 2011 Tax Filing Season The Internal Revenue Service recently announced starting with next year’s tax filing season, it will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs).
“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days. “Refund Anticipation Loans are often targeted at lower-income taxpayers,” Shulman said. “With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.” The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. Specifically, the IRS announced it would study refund settlement products. RALs are loans secured by a taxpayer’s anticipated tax refund. Today, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs. The IRS announcement would remove the debt indicator starting with the upcoming 2011 tax filing season. The IRS noted taxpayers will continue to have access to information about their tax refunds and any offsets through the “Where’s My Refund?” service on IRS.gov. RACs are temporary bank accounts established on behalf of a taxpayer into which a direct deposit refund can be received and out of which a bank typically issues a payment to the taxpayer. With both RALs and RACs, tax preparation and product fees are subtracted directly from the refund, and the taxpayer does not make any out-of-pocket payments. They are frequently marketed to taxpayers who do not have cash to pay for professional tax preparation services. In a related effort, the IRS plans to explore the possibility of providing a new tool for the 2012 tax filing season to give taxpayers a mechanism to use an appropriate portion of their tax refund to pay for the services of a professional tax return preparer. The IRS plans to engage with taxpayers, consumer advocates and the tax return preparer community to consider whether providing this option would be a cost-effective way for consumers to pay for tax return preparation services.
WHAT DRIVES CONSUMERS TOWARD CERTAIN MODELS? Given a choice of five factors, 37 percent of consumers indicated their decision to buy a vehicle was most heavily affected by the model’s quality, according to a recent CarMax survey. The poll, done via telephone, posed the following question to respondents: “Which of the following factors most influences your car-buying decision?” Following quality, the second most-cited factor was safety, as 28 percent counted it as their top choice. Twenty-two percent claimed the biggest influence was safety, while environmental or green factors were cited by 6 percent of respondents. Four percent pointed to the vehicle’s resale value. Breaking it down by gender, 43 percent of men said quality was most important, while 34 percent said the same. Quality was No. 1 for both males and females. Interestingly enough, this is a change from what women claimed was the top factor a year ago, when they pointed to price. That particular survey was done online, officials noted. “We want consumers to get the most for their money, and buying a used vehicle is a great way to get more car for less,” stated Rod Baker, who is vice president of service operations for the Phoenix region. “It’s why we put our cars through a rigorous Certified Quality Inspection, checking more than 125 points to meet our high-quality standards,” he added. Ipsos Public Affairs did the polling for CarMax, contacting over 1,000 adults in the U.S. This was done between Aug. 19 and Aug. 22. Just three consumers did not respond.
O&R MORGAN, INC. CHECK WITH OIADA FOR YOUR BONDS • QUICK TURNAROUND SERVICE • EASY ONE PAGE APPLICATION • NO FINANCIAL STATEMENTS REQUIRED IN MOST CASES FOR USED DEALER BOND • NO FINANCIAL STATEMENT REQUIRED FOR SALESMAN’S BOND • CHECKS OR CREDIT CARDS ACCEPTED
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FOR INFORMATION ON THESE AND OTHER BONDS: CALL OIADA at 1-800-346-4232 · FAX: 405-799-3367 EMAIL: odell.morgan@sbcglobal.net
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BY AU TO R E M A R K E T I N G STA F F
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Cars.com Extends Online Chat to Mobile Devices to Help Dealers Connect with Shoppers Cars.com dealers using the company’s free online chat functionality can now communicate with customers from their Internet-enabled smartphones. The company added on-the-go access to its chat platform to create new opportunities for dealers to connect with buyers. “Mobile chat allows salespeople to be more responsive to shoppers' inquiries, even if they've stepped away from their desk," said Michael Page, Cars.com vice president of advertising products. "Dealers can respond at shoppers' convenience, giving them the information they need to take the next step toward a purchase. With the popularity of smartphones in the store, dealers can use this capability to enhance their customer service and sell more cars." At Buster Miles Chevrolet Dealership in
Heflin, Ala., sales consultant Phil Amason said he appreciates the immediacy of chat. "It’s definitely been a plus for our store. It’s a better way for customers to reach us live and for us to respond. They get immediate access to the information they need, and I think that’s really key.” Amason, who added online chat about a year ago, reported an increase in business after he began testing the new mobile chat enhancement. “I was able to accept two chats last month that I would not have been available for if it weren't for mobile chat. I know this resulted in two sales. They were two hard, trackable sales," he said. “In my experience, appointment rates are higher with live chat compared to traditional email and phone appointments. There seems to be a better quality interaction because of minimal delay in response."
Dealers interested in adding chat functionality to their online advertising package can contact their sales representative. To help dealership sales teams incorporate chat into their sales process, Cars.com presented “Chat Up Your Inventory: Leverage Chat to Reach In-Market Shoppers and Win Sales" through its DealerADvantage Live webinar series. A recording of the free workshop is available at http://dealers.cars.com/live. Cars.com launched online chat for its customers in January 2009 at no additional charge as a way to help dealers connect with more online shoppers. The technology is delivered through a partnership with Contact At Once! Mobile chat capabilities are made available as part of a renewed agreement, also announced last month, between the two companies.
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W E B I N A R
“Best Practices for Financing Customers and Protecting Your Dealership” November 16, 201011:00 AM EST
AGENDA Introduction to RouteOne
OUR INSURANCE PROGRAMS HAVE SET THE PACE FOR OTHERS TO FOLLOW
RouteOne is a FREE online credit application management tool that can help your dealership submit, manage and fund deals more quickly
Getting your customers funded Tips for approving and funding customers, including finance source selection, finance source guidelines, establishing deal structure and more
• GARAGE LIABILITY • DEALERS PHYSICAL DAMAGE • GARAGE KEEPERS OKLAHOMA’S LARGEST WRITER OF NON-FRANCHISE DEALERS Our Insurance Program is Designed for Members of the OIADA
Protecting your dealership Protecting your dealership and managing compliance with RouteOne’s unparalleled suite of complimentary and subscription-based compliance tools, including: • • • • • •
OFAC/ Red Flags Adverse Action Risk-Based Pricing Electronic Signature Secure Document Storage …and more.
Call RouteOne Sales Support at 866.933.0663 to register, or email your contact information tosalessupport@routeone.com. Register today!
• WRECKER SERVICE • R.V. DEALERS • SALVAGE YARDS • MECHANIC SHOPS • WORKERS COMPENSATION • PROPERTY
QUOTE LINE 800-463-0209
• DEALER & SALESMAN BONDS • INDIVIDUAL & GROUP INSURANCE • LIFE INSURANCE • SMALL, MEDIUM AND LARGE DEALERSHIPS
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www.albrightagency.com A l b r i g h t h a s a c c e s s t o A d m i t t e d C a r r i e r w i t h N o Ta x , Fee or Finance Charges with Easy Payment Plans.* * F O* R A C C O U N T S T H AT Q U A L I F Y / A C C E P TA B L E W I T H U N D E R W R I T I N G .
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BEST PRACTICES
FOR GETTING YOUR CUSTOMERS FINANCED BY GEORGE HARTMAN Director, national business development, RouteOne LLC
George Hartman is the director of national business development at RouteOne LLC, a free, online credit application management service for franchised and independent dealers nationwide. RouteOne’s credit platform allows automotive dealers to submit credit applications to a wide variety of lenders, including prime, sub-prime, banks and credit unions. RouteOne offers dealers a vast array of F&I tools including credit bureau access, DSP integration, free reporting, and a host of subscription-based tools, with no long-term fees or contracts required at any time. RouteOne offers dealers a common platform for all their credit application financing needs. More information is available by contacting Hartman directly at 248-862-7050 or ghartman@routeone.com. Dealers may also contact RouteOne Sales Support at 866-933-0663 or salessupport@routeone.com.
In this economy, it’s imperative that your dealership take advantage of every opportunity to get your customers financed. Each deal is unique, but your best chance to fund each and every deal is to pay attention to the basics. Let’s focus on
a key tenet: your finance source selection and partnership. Know the finance source policies. Knowing and following your finance sources’ guidelines for receiving applications can make or break your approval success rate. Additionally, understanding how to package your final deal will also speed your funding. Find out your finance sources’ policies regarding cash down, credit scores and scoring models, model year/mileage restrictions, PTI, and LTV. What about the lender’s book value (which book do they advance on?) Is your value accurate? Verify contract accuracy. Verify the accuracy of your contract prior to submission to the finance source. Are you sending the customer application to the finance source most likely to fund that candidate? Check customer quality, vehicle selection and advance sought. Create a complete funding package. Know the stipulations prior to delivery! Always create a checklist, whether packaging the deal on your own or providing to a clerk. Make sure you include all relevant data. Verify all stipulations prior to sending, and verify that all standard documents are included, complete and accurate. For example, a promissory note for $500 down could cost you time and effort to track down, maybe even a $500 write off. The missing stipulations for POI could cost your dealership $25,000 in funding, or worse, loss of an approval due to expiration - not to mention the frustration if the bank decides not to re-approve! Ensure your customer meets program guidelines. In times past, ’cash was king’. This is not necessarily true anymore. It’s possible that your customer could meet 99 percent of minimum pro-
gram guidelines – but missing that one percent could cost you the deal! So make it easy on yourself. Don’t submit a deal with $250 cash down knowing the program minimum is $500. You may not receive a counter offer for an additional $250 down - you may just receive an “automated turn down”. (Did you know some finance sources have policies which prevent them from rehashing a turndown?) Avoid “shot gunning” deals. Shot gunning does not work to your advantage or speed your process. Actually, it does just the opposite. These days, finance sources are very tightly managing risk and cost. As a result, look to book and risk portfolio management are more critical than ever. Build relationships. It’s important for you, the dealer, to build a solid relationship with your lenders. Get to know them and request that they provide you or your staff the training, education or feedback needed to have a successful partnership. Be accurate. Avoid vehicle value errors or ‘power booking’, ‘grossing up,’ or otherwise enhancing the truth. It may seem harmless to round up an applicant’s income to the nearest “x”, or even provide a luxury vehicle with all of the bells and whistles, but it is not in either your, or the finance sources’, best interest. Your customer could have provided an application for credit using a different income at a different location, thus creating a discrepancy. This could delay your approval, create additional stipulations or worse, cause a decline. Additionally, many finance sources are now completing their own customer interviews, either at random or generated based on the finance source’s risk assessment of your dealership’s performance or repossession rate. The ‘power booked’ car may have provided a nice advance and appearance of profit to your dealership, but if a discrepancy is found, you could be charged back, or even lose a finance source. Most importantly, communicate with your lenders at every turn. It’s never too late to be a great partner. Good selling!
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New Industry Insight Series Educates Dealers with Free Seminars In an effort to keep dealers up-to-date on the latest tools, technology and buying/selling trends in an ever-changing marketplace, NADA University and ADESA have teamed up to present a series of free lunchtime educational seminars called “Industry Insight.”
ADESA’s Tom Kontos, president of customer strategies and analytics, was one of a panel of four experts giving industry views to dealers during the first Industry Insights seminar entitled, “What’s Now? What’s Next?” held at ADESA Dallas on September 15. Kontos talked about the used car market’s vehicle supply for rental, lease, repos and dealer consignment. He explained that the remarketing industry obtains supply from a broad array of sources so that it’s not dependent on any one outlet—which, as a result, have kept auction volumes relatively constant. However, the mix of “IT’S NO SURPRISE THAT vehicles has shifted. REPOS REACHED AN ALL-TIME The turnover of HIGH DURING THE RECESSION — rental fleets was at BUT THIS SHOULD BEGIN TO TAPER AS THE its lowest in 2009, ECONOMY IMPROVES.” but has begun to rebound somewhat ADESA’s Tom Kontos, president of customer strategies and analytics this year. Fleet sales in 2010 are an indicator of future increases in wholesale used vehicle supply in the lane and online. Through August, total sales volume for rental, commercial and government vehicles has increased about 39 percent from 2009. Kontos added both new vehicle sales and lease penetration are on the rise as well as new vehicle lease origination. This means there will likely be more off-lease vehicles on the market in about three years.
Kontos noted off-lease volumes will drop slightly this year and then fall significantly during 2011 through 2012. After that, off-lease volumes should begin to recover. As credit tightened and new vehicle sales fell, auto loans and outstanding leases declined. Kontos said, “It’s no surprise that repos reached an all-time high during the recession—but this should begin to taper as the economy improves.” Speaking of economic recovery, Kontos said new and used vehicles sales in 2010 are significantly improved from last year. For both the U.S. and Canada, Kontos pointed out that new vehicle sales are up—and that truck sales have grown more than car sales. Since bottoming in November 2008, average wholesale prices have firmed and are likely to continue to be up on a yearover-year basis, albeit more moderately and with typical seasonal ups and downs, during 2010. Tim Zierden, ADESA’s vice president of dealer sales and services, facilitated the event’s lively discussion. Other industry experts who spoke at ADESA Dallas during the “Industry Insight” seminar were:
■ Les Abrams, NADA Academy instructor, who discussed used vehicle inventories and today’s best practices ■ Dale Pollak, vAuto’s chairman and founder, who talked about new technologies, and ■ George Heppe, GigglePop’s president and owner, who explained new mobile Developments.
Attendance at the seminar was favorable with about 50 dealers participating. Please contact NADA University at (800) 557-6232 for information about future Industry Insight events.
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THE NEW PRIVACY
ADR STAFF The following is a sampling of questions needed to be answered to configure a privacy notice:
RULES
The new privacy rules of the FTC make your previous privacy notices obsolete and non-compliant.
• Your dealership name, address, phone and fax number and email address.
The new forms, safe harbor models of which have been provided by the FTC, are intended to make it simple and easy for consumers to understand what information you collect from them, what you use it for, and how you protect that information. Unfortunately, the information a dealer is required to provide to achieve a safe harbor is not that simple or easy for the dealer. For instance, each dealer’s notice must be configured to that dealership. One dealership’s notice will be different from all other dealerships’ notices. Therefore, for OIADA/ADR to configure and produce a privacy notice to conform to your dealership, we will need you to provide us with specific information regarding your collection, use, protection and disposal of the consumers’ private, non-public information. If you will provide us with your e-mail address, this process will be much quicker, easier and more efficient. Your submission of the information, our structuring the form for the dealership and your proof of the form can be handled quicker so the form can be printed and sent to you. The questions to the right are only a few that must be answered to construct a form to provide a safe harbor for your dealership. You will be provided with a fill-in-the-blanks questionnaire with explanations to help with your decisions. The model form may be simple for the consumer, but it certainly isn’t simple for the dealer to construct. THE NEW RULES ARE EFFECTIVE JANUARY 1, 2011. Time is running out! The ADR team is prepared to personalize your privacy notices, provided you can respond to the necessary questions. There will be a one-time fee for configuring the form and a fee per 100 of the printed forms. It is critical we receive your e-mail address and contact person for this function. We are here to serve you.
• The contact person at your dealership when we have questions about your responses.
ADR - OUR MISSION: YOUR SUCCESS.
• What types of consumer private, non-public information you collect. • How you collect that information. • Whether you use credit bureaus and/or affiliates to collect information. • Specifically how you use that information. • Whether the information is used for everyday business purposes. • Whether you share that information and if so, what information and with whom. • What the shared information is used for. • Whether the shared information includes the consumers’ transactions and experience. • Whether the information is used for marketing purposes. • Whether you share that information with non-affiliated companies. • Whether you engage in joint marketing and if so, whether you share their privacy information with joint marketing partners. • If you do joint marketing, the types of companies you partner with to do that joint marketing.
IRS Suspends UNICAP Audits for Dealerships Pending Additional Guidance The IRS announced it is once again extending the IRC Section 263A (UNICAP) audit suspension period, which was set to expire on December 31. This latest suspension is said to be great news for auto dealers, since the tax consequences related to the change in UNICAP could have required them to capitalize up to five percent of their inventory balance at year’s end. Based on the IRS’s interpretation, very few dealers are said to be in compliance. Continuation of the audit suspension gives dealers more time to address the issue. Additionally, dealers will have a chance to review the IRS’s guidance before deciding if and when they should change their inventory accounting methods. As with previous IRS guidance in this area, the audit suspension continues to apply to new and used auto dealers as well as light, medium, and heavy duty truck dealers, but not those selling RVs or other equipment. Check with your local accountant for more information.
• Whether consumers can limit information sharing in specific instances. • How you protect that information. • For new customers, when you may begin sharing their information (minimum of 30 days). • Whether you allow joint account holders to opt out for only one account holder.
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2010 OIADA Scholarship Winners CARFAX Problems?
Chelsea Renae Montano and Carter Henry Londagin are the two OIADA Scholarship winners for 2010. Gary Smith’s Dealers Auto Auction of OKC sponsored the $1,000 scholarship for Montano; she’s the daughter of Michael and Deena Montano, Tiger Auto Sales, Guymon, Okla., and plans to attend Oklahoma Panhandle State University. Montano graduated from Guymon High School with a 4.02 grade point average and ranked 12th in her class. She was a varsity cheerleader and a member of the GHS golf team, as well as holding the office of vice president of the National Honor Society. She attended St. Peter’s Catholic Church. Montano also managed to work at her grandpa’s (the senior Montano) dealership, where her father is a salesman, during the week and at the Corral Drive In on weekends. She was honored as the 2010 Most Valuable Player in golf, placed ninth as a team at the state tournament and fifteenth individually. In addition to the OIADA scholarship, she received the Jim Hitch Golf Award and scholarship, the Elk’s Club scholarship and was awarded Rotary Girl of the month of February, where she also received a scholarship.
Carter Henry Londagin also was a recipient of the 2010 OIADA Scholarship. Carter maintained a 4.25 grade point average and was ranked first in his class of 158. Carter is the son of J. Doug Londagin and Martha Londagin, Doug’s Auto Deals, LLC, in Grove, Okla. Londagin’s activities and honors included AP honors course student, National Honor Society, Spanish Club, Heritage Club (Indian student club) membership, Cherokee Nation Language/Challenge Bowl Team for GHS, Cherokee Nation High School Hero leadership mentor for youth and Kiwanis Key Club service club member. He also served as a senate page for Oklahoma Sen. Charlie Wyrick during the 52nd Legislature. Londagin received the Cherokee Nation Outstanding Senior Trail of Tears Honor Award and was a final four recipient for the Cherokee Nation Red Clay Award. Londagin participated in the Grove First United Methodist Church youth group and was a Temple Time volunteer (Sunday School program for elementary children). He was a Grove High School football varsity letterman, all district honoree, NE Oklahoma Senior Bowl football honoree and the varsity football team game captain. He was the Top Scholar of the GHS 2010 senior class and the Grove Oklahoma Rotary Club Student of the Month in November 2009. In addition to that, he served as president of the Arvest Bank Junior Bank Board.
CONGRATULATIONS, CHELSEA RENAE MONTANO!
CONGRATULATIONS, CARTER HENRY LONDAGIN!
NIADA has been involved in discussions with CARFAX on several topics. Many of those topics were discussed during the convention in Vegas. These discussions continue. In the Oklahoma service area, CARFAX Regional Team Manager Kenny Williams may be reached at 800274-2277, ext. 4301; Regional Senior Account Manager Scott Gipson is at 800-2742277, ext. 4321. Should you be unable to get the response you desire from the regional managers, NIADA has secured from CARFAX two phone numbers for your use to contact them concerning discrepancies contained on Vehicle History Reports (VHRs) or to contact sales. For customer service, call 888-6951885 (for discrepancies); for sales, call 866-694-1545. PLEASE ADVISE THE OIADA OFFICE AT 405-232-2947 IF YOU CONTINUE TO HAVE PROBLEMS WITH CARFAX.
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YOURWEBSITE Keeping Your Website Ahead of the Curve Technology has advanced and changed more in the last ten years than it has in the last 100 years combined.
This is mainly due to the Internet era and things are looking like they’ll only speed up from here. When consumers purchase a vehicle from your dealership, the first thing they have the option to do is to make it their own by adding custom accessories. Websites are very similar, and there are many aftermarket accessories you also can add on to your site to make it unique. Making sure your site and computer are up to date is easier than you think, and doing so will allow you the ability to get the maximum benefit with the least amount of effort. Over the last several years, website providers have been slowly shifting the ability and power over to the webmaster or site owner. This puts you in the driver’s seat by allowing you more access to add functionality by editing the content, changing out photos and even adding simple HTML code. If your website provider does not allow you to edit content on your site, you still can utilize the items listed below by having your site provider add them for you.
BROWS ER UPDAT ES Now you can’t put the cart in front of the horse, as they say, so we need to start with updating the browser you use on your computer. This is how you log on to the Internet. The following is a list of the latest browsers so you can determine if you either want to update the version you have now or switch to a different browser. Knowing what your potential customer is using on his or her computer might help you make a decision on what browser you should use, too. We’ve included a list of the latest versions of the top five browsers so you may download the correct version for your computer. You can find these free downloads by simply searching for the below listed items in any search engine: 1. Internet Explorer: version 8 2. Mozilla Firefox: version 3.6.10 3. Google Chrome: automatic updates 4. Safari: version 5 5. Opera: version 10.6.2
By updating to the latest version or even switching to a different browser, you’ll have the ability to keep all of the content saved in your old browser and transfer it to the new version or new browser of your choice along with your favorite websites. Now that your operating system is up to date and in place, let’s make sure you have the ability to correctly track the results your site is bringing to your dealership.
WEBSITE TRACK ING TO O L S Most sites do come with an analytics section, but Google has developed a free tracking system called Google Analytics that’s 100-percent free and can be installed by your website administrator. This tracking system is far more in depth than what’s traditionally provided by your website provider. You can create a free account with Google and gain free access to this tracking system by visiting www.google.com/analytics. This system will allow you to track visitors viewing your website in extreme detail including, but not limited, to the following: • Mobile visitor tracking • Data benchmarking • Internal site search features • Flash tracking • Video and social network application tracking • Advanced segmentation of data • Advanced analysis tools • Analytics intelligence • Custom reporting • Custom set variables • Easy-to-use dashboards • Data exports to transfer all data from the system to spreadsheets
It is impossible to improve upon the re-
sults of your website if you don’t know them. This system will allow you to view any of the data from your site visitors, as well as set up goals for your website traffic so you can reach the desired benchmarks you set for your company with ease.
SO CIAL MEDIA SHARING TO O LS Social media is going viral on the Internet and dealers need to take advantage of it.
Despite many articles you’ve read, just having a Twitter, Facebook, MySpace or LinkedIn account is not going to sell you more cars. The real power of social media is allowing your customers www.AddThis.com to share your inventory online to the friends in their social network. www.AddToAny.com Take advantage of the fact Billy has 2,500 friends and when his www.ShareThis.com friends or family place a vehicle from your dealership on his social networking page, your dealership is instantly exposed to everyone in his network. There are many free tools in the marketplace you add to your site if your provider hasn’t already implemented them for you. The following is a list of the top three sites where you can get free sharing tools to add to your website. By simply adding these sharing tools to your site, you are opening up your dealership to the masses and allowing yourself to make a viral jump in the social media realm.
ADDING A BL OG TO Y O UR SITE Search engines love to see site growth on the weekly visits to your dealership site, as well as links from valuable sources connecting to it. Offsite blogs are great for both of these, as you can link to your dealership site from your blog. Most blogs allow you to have a section you can paste into your site to showcase the most recent blog posting to your potential customers. Because search engines try to match the words people are typing into them to websites, adding automotive related terms in your blog will help tremendously with search engine optimization (SEO). Here is a list of the top 3 free websites that you can sign up for and link to your dealership website. The above listed sites allow you to create your own blog for your dealership as well as customize the design to implement your dealership graphical logos to match the current branding of your dealership. The more avenues that you give the internet with content pertaining to your dealership, the larger the footprint that you will leave on the internet.
MANAG ING Y OUR SO CIAL MEDIA With all of the social media tools available online, it can become a painstaking process to make sure you keep them all up to date. Between Twitter, Facebook, MyC O N T I N U E D O N N E X T PA G E
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By Michael D. Jackson, CEO, Auto Search Technologies, Inc. (949) 608-0809 (Direct Line) mjackson@autosearchtech.com
NIADA.COM ALL NEW FOR YOU!
Space, LinkedIn, YouTube, Flickr, FriendFeed, MSN Messenger, AIM Messenger, Google Talk and Yahoo! Chat, you could easily spend all day just updating your social media outlets as you jump from site to site. That’s where www.Yoono.com comes in; it’s a social media management platform that’s free and allows you the ability to update all your social media www.Blogger.com outlets with one of the mouse. Yoono.com offers a browser add-on (recommended) specifically for Mozilla Firefox and Google Chrome browsers; however, for different browsers, you can download a desk- www.WordPress.com top application for Windows (Internet Explorer), Macintosh (Apple), Linux or USB to manage all of your social media channels. www.MyBlogSite.com This tool allows you to update your status across the board as well as share links, images, videos and stay connected on all of your Yoono.com instant messaging channels. Time equals money, and money equals time. The more of both you save will allow you the ability to work more efficiently and accomplish more for your dealership on a daily basis. Making sure you’re utilizing all of the above listed features in your website will tremendously increase your results. By simply setting site traffic goals and staying aware of amount of traffic you’re receiving, you’ll be able to improve upon it on a monthly, quarterly and annual basis.
NIADA has unveiled a brand new website that’s easy to navigate and offers many new technologically-advanced features for dealer members. Among them: • The entire NIADA membership roster is now included on the home page via a state map, and dealer members can opt-in to add more contact info to their online membership listing. • All state magazines published by NIADA can now be viewed inclusive of advertisements. The magazines also will be archived on the site. Plus, those same state associations will have direct links from their websites to our site promoting readership of their particular state magazine. To view these magazines go to http://www.niada.com/state_magazines.php • NIADA National Corporate Partners (NCP) will now have the ability to add a company or product-specific video next to their NCP description.
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Warren Chosen as Head of New Consumer Bureau President Obama has chosen an Oklahoman to be the person who sets up the new Consumer Financial Protection Bureau (CFPB). But
unless some Oklahoma dealers know Elizabeth Warren personally and can convince her auto dealers already have enough regulations, we should not celebrate that appointment. It seems Warren is the person who first suggested this bureau to the president’s staff. So, she has the distinction of now being a special assistant to the president. She will report directly to Obama. Warren said in a blog post on the White House website she had "enthusiastically agreed" to take on the role. "The president and I are committed to the same vision on CFPB and I am confident that I will have the tools I need to get the job done," she said. "The new law creates a chance to put a tough cop on the beat and provide real accountability and oversight of the consumer credit market. The time for hiding tricks and traps in the fine print is over." She is talking about many car dealers, among other financing entities. The president has expressed his disdain for the motor vehicle sales industry and the financial support that allows the industry to exist. Although some dealers have received an exclusion from this bureau’s rules, many, such as Buy Here-Pay Here (BHPH) dealers and perhaps many others, have not been excluded. By the time the rules are written, it may well be most used car dealers will fall within the purview of Warren and her bureau. Depending upon how the language in U.S. Sen. Sam Brownback’s exemption amendment is interpreted, any dealership without a service department could be left out of the exclusion and thus come under the rules of the CFPB. The regulations could make it even more difficult to finance vehicles for those who are most in need of transportation; in other words, the lower income people who must have a means of getting to and from work. The administration’s appointment of Warren as special adviser, a move that avoids Congressional confirmation, significantly reduces the timeframe for rules
ADR STAFF
development and speeds up the enforcement process by possibly as much as a year. Nevertheless, Warren has set July 21, 2011, as a deadline for shifting consumer functions from today’s regulators to the bureau. Unless the administration comes up with some other shortcut, the rules development process won’t begin until after that transfer. At any rate, it’s time for changing the direction of the federal government’s efforts to stifle our industry or, in the alternative, get ready to spend a lot more time and money complying with what is sure to be an onslaught of new regulations. Some leading industry advocates have expressed doubts that we, as dealers, are likely to be able to change or repeal the financial reform legislation. I believe we can, and I think you believe that, too. Our membership dues help to pay for NIADA’s federal advocates in Washington, D. C., and our contact with rank and file consumers in this state and across the country can carry our message to our individual Congressional representatives and senators who have the power to shut down the financing of this new bloated bureau. Congress, with the proper makeup, has the ability to slow the rules development until we get this message out:
•
Our industry makes it possible for the very consumers the government says it wants to protect to be able to exist in today’s economy;
•
Population distribution makes motor vehicles an essential part of life for our customers;
•
Our industry provides working consumers with the transportation they need to get to and from work, to deliver their children to and from school and to manage their everyday lives;
•
Our industry actually makes it possible for a major segment of the population to have transportation by providing the only financing available to them;
•
We don’t need onerous regulations for us to be fair and respectful to our customers;
•
To be successful, we treat our customers fairly and with respect so they’ll continue to be our customer and their family and friends will also become our customers;
•
It is not a sin to make a reasonable profit;
•
It was Congress and the federal regulatory system, not our industry, that caused the financial melt down;
•
The independent motor vehicle dealer industry is a part of Main Street, not Wall Street;
•
It is not appropriate to punish an entire industry because of the actions of a few bad apples;
•
All the blame should not be laid at the feet of the few bad apples; the consumer should share some of the blame for creating and prolonging the lives of those few bad apples;
•
The independent motor vehicle industry is a major part of the private sector that creates the jobs that are needed to get our country back on the road to recovery;
•
Government rules and actions have created an uncertainty within the business community that hampers our ability to plan for growth;
• •
We are not the enemy; Unreasonable regulations simply force higher prices and fewer choices for our customers;
•
Our customers are smarter than the government gives them credit for being;
•
They generally don’t need nor want that kind of government “protection”; and,
•
Government should show some respect for our customers by staying out of their lives and allowing them to make their transportation choices without government “help.”
Those are my thoughts. We have our work cut out for us, but with the recent elections, the process for relief has been started. Now, let’s join hands, speak with one voice, get busy and finish it.
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USED MOTOR VEHICLE AND PARTS COMMISSION REPORT
SEPTEMBER 14, 2010
Following convening of the meeting and approval of the Minutes of the previous meeting, Acting Chairman Kerry Siegfried called on Director John Maile for the Director’s report. Maile began his report by explaining that the staff is gearing up for sending out license renewals beginning in mid September. He then advised the Commissioners the budget numbers would be about the same as last year. Maile called attention to and asked for approval of the expenditures report which was included in the agenda packet. Acting Chairman Siegfried then called on Deputy Director Kenneth Whitehead for his report. Whitehead indicated district court action in the month resulted in one injunction being filed against Rex Powers, a used auto dealer from Seminole, for jumping titles. Powers has been shut down. There were four informal hearings during the month, three of which were resolved without further action, with one which resulted in a fine of $300 against Best Price Autos for title and tag violations. Whitehead’s written report indicated Commission staff had issued cease and desist letters to 13 used dealers, two dismantlers, one manufactured home dealer, and four insurance pool violators (a listing of those letter recipients is included following this report). Investigators completed 17 inspections for the period. Staff handled 31 written complaints, 10 of which were title issues, 12 had to do with contract violations, five were related to mechanical issues, two were related to spot delivery issues and there were two complaints of a miscellaneous nature. Whitehead reported the Commission education program had 39 in attendance for the period. Applicants for a new license and dealers involved in significant rule violations are required to attend the Commission’s education program as a part of acquiring or maintaining a state license. These education sessions are held at the Activity conference room 40B at 2401 NW 23, Oklahoma City. Classes are held on Monday prior to the Commission meeting on the second Tuesday of each month. The sessions run from 9 a.m. to about noon or 1 p.m. You are asked to make reservations so staff can be prepared to accommodate you. You should call the Commission at 405-521-3600 to make your reservations.
R E P O RT O F C E A S E & D E S I ST L E T T E R S I S S U E D (These letters direct the individual or business to cease violations of laws or rules)
ENTITY
TYPE
CITY
DATE ISSUED
Leonard Baca Baldwin Tire & Lube Baldwin Tire & Lube Edward Barringer Edward Barringer Tim Coleman Christopher Contreras Deonato De Leon John Ferguson Highwater Auto & Cycle Timofey Kalmyhov Vitaliy Kalmyhov Shawn Masters Parker/MHP/Efficient Mana Esteban Perez-Ramirez R & L Used Guard Rail R & T Roofing Dan Swanner Fred Tavangar Worley Warfe
pool violation dismantler used dealer used dealer dismantler used dealer pool violation used dealer pool violation used dealer used dealer used dealer pool violation manufactured hsg. used dealer used dealer used dealer used dealer used dealer used dealer
Edmond Chandler Chandler Watonga Watonga Catoosa Oklahoma City Oklahoma City Harrah Kingfisher Oklahoma City Oklahoma City Kingfisher Oklahoma City Oklahoma City Stillwater Oklahoma City Oklahoma City Warr Acres Blanchard
08/26/10 08/11/10 08/11/10 08/17/10 08/17/10 08/26/10 08/13/10 08/16/10 08/13/10 08/12/10 08/30/10 08/30/10 08/26/10 08/19/10 08/16/10 08/10/10 08/24/10 08/26/10 08/03/10 08/20/10
C L O S E D CO M P L A I N T R E P O RT These are complaints that have been resolved one way or another. They do not necessarily reflect any wrongdoing on the part of dealers.
ENTITY
CITY
COMPLAINT
RESOLVED
Amigo Land Motors, Inc. Auto Bargain Best Price Auto Sales Bob Howard Toyota Brad Fenton Motors of Poteau, Inc. Car Factory Claremore Zebra Auto Sales, LLC Conner Auto Group Current Classics David Stanley Chevrolet, Inc. David Stanley Chevrolet, Inc. David Stanley Dodge, LLC David Stanley Ford David Stanley Ford Edmond Hyundai Galaxy Motors I-240 Supercenter Jim Glover Chevrolet Joe Cooper Ford/Midwest City, LLC Keystone Chevrolet, Inc. Lake Country Chevrolet-Cadillac, LLC Lake Country Chevrolet-Cadillac, LLC Liberty Credit Autos Metro Auto Wholesale Regal Car Sales & Credit #4 Roadrunner Classic Motors Roberts Auto Center, LLC Shawnee Auto Mall, Inc. Tioli Motors Tulsa Credit World Auto Sales U Auto Pawn Used Car Sales
Oklahoma City Oklahoma City Oklahoma City Oklahoma City Poteau Oklahoma City Claremore Waurika Chickasha Oklahoma City Oklahoma City Midwest City Oklahoma City Oklahoma City Edmond Bartlesville Oklahoma City Tulsa Midwest City Sand Springs Muskogee Muskogee Lawton Tulsa Oklahoma City Dewey Pryor Shawnee Oklahoma City Tulsa Del City
title title miscellaneous contract title sales person title title miscellaneous contract contract title contract contract title title title sales person contract contract mechanical contract contract title mechanical mechanical mechanical contract mechanical contract contract
08/30/10 08/11/10 08/27/10 08/27/10 08/27/10 08/23/10 08/13/10 08/10/10 08/20/10 08/30/10 08/23/10 08/20/10 08/19/10 08/27/10 08/27/10 08/30/10 08/27/10 08/23/10 08/12/10 08/09/10 08/30/10 08/02/10 08/10/10 08/20/10 08/27/10 08/17/10 08/20/10 08/27/10 08/27/10 08/30/10 08/06/10
LICENSES SUSPENDED OR ABANDONED In other action, the following licenses were suspended or abandoned: A-1 Plus Motors – Tulsa – Out of business; phone disconnected. Best Way Auto, Inc. – Yukon - Out of business; phone disconnected. Cowgirl’s Auto Sales – Oklahoma City - Out of business; per owner Stacy Ford. C & W Auto Sales – Hugo - Out of business; per Investigator’s report. Harrison Auto Sales – Cameron - Out of business; per owner Dennis Harrison. Frank Johnson Auto Sales – Tulsa - Out of business; phone disconnected. Jim Byers Used Cars – Duncan - Out of business; owner deceased. Local Auto Sales – Oklahoma City - Out of business; per Investigator’s report Los Compardres Auto Sales #2 – Tulsa - Out of business; per owner Susana Robles. M & C Auto Sales – Moore - Out of business; per owner Michael Smith. Nix Used Cars – Rush Springs - Out of business; per Investigator’s report. Route 66 Harley Davidson – Tulsa - Out of business; change of ownership. The Car Trader – Oklahoma City - Out of business; per Investigator’s report. United Trucks & Autos – Muskogee - Out of business; change of ownership. C O N T I N U E D O N PA G E 2 0
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C O N T I N U E D F R O M PA G E 18
USED MOTOR VEHICLE AND PARTS COMMISSION REPORT CONSENT AGREEMENTS
The Commission approved the following Consent Agreements: (I) A Consent Agreement between UMV&PC and Cher El Youbi, on behalf of Kings Auto Sales, a sole proprietorship, a licensed used motor vehicle dealer, hereinafter referred to as “Respondent.” The following is a summary of the facts concerning the investigation by Commission personnel of the above referenced Respondent, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions that the Respondent has agreed to in order to resolve this investigation. 1. Respondent has failed to properly reassign at least five (5) certificates of title to vehicles sold. 2. Respondent has failed to maintain a record of temporary used motor vehicle license plates (temporary tags) issued for vehicles sold. It was therefore impossible to determine how many temporary tags were issued or misused. 3. Respondent has provided more than one (1) temporary used motor vehicle license plate (temporary tag) for vehicles sold by the dealership in an undetermined number of instances. However, Respondent has acknowledged the number, if known, would be substantial. 4. Respondent has agreed to attend the Commission’s Education Program. 5. Respondent acknowledges in the event of a hearing before the Commission, the sanctions could, in addition to the assessment of fines within a range of One Hundred Dollars ($100) per violation, include suspension or revocation of Respondent’s used motor vehicle dealer’s license. 6. Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent therefore agrees it will pay to the Used Motor Vehicle and Parts Commission the sum of Three Thousand Dollars ($3,000), payable in the amount of Five Hundred Dollars ($500) per month beginning on the first day of the month following the month in which the Commission approves this Consent Agreement. In the event the sum is paid as agreed, said payment will constitute full and final action on all violations pending or known to the Commission and which may be charged against Respondent at the time of this agreement. In the event said sum is not paid as agreed, Respondent acknowledges further action may be taken, which may include a formal hear-
ing for the revocation of Respondent’s used motor vehicle dealer’s license. (II) A Consent Agreement between UMV&PC and Domingo Maldonado, on behalf of Michoacan Auto Sales, a sole proprietorship, a licensed used motor vehicle dealer hereinafter referred to as “Respondent.” The following is a summary of the facts concerning the investigation by Commission personnel of the above referenced Respondent, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions the Respondent has agreed to in order to resolve this investigation. 1. Respondent has failed to license five (5) individuals who Respondent authorized to buy used motor vehicles at auctions using the dealership name. 2. Respondent has failed to maintain a complete record of temporary used motor vehicle license plates (temporary tags) issued for vehicles sold. It was therefore impossible to determine how many temporary tags were issued or misused. 3. Respondent has failed to completeor execute bills of sale, odometer statements, and title receipts, and make copies of assigned certificates of title. 4. Respondent has agreed to attend the Commission’s Education Program. 5. Respondent acknowledges in the event of a hearing before the Commission, the sanctions could, in addition to the assessment of fines within a range of up to One Thousand Dollars ($1,000) per violation, include suspension or revocation of Respondent’s used motor vehicle dealer’s license. 6. Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent therefore agrees it will pay to the Used Motor Vehicle and Parts Commission the sum of Three Thousand Dollars ($3,000), payable in the amount of Five Hundred Dollars ($500) per month beginning on the first day of the month following the month in which the Commission approves this Consent Agreement. In the event the sum is paid as agreed, said payment will constitute full and final action on all violations pending or which may be charged against Respondent at the time of this agreement. In the event said sum is not paid as agreed, Respondent acknowledges further action may be taken, which may include a formal hearing for the revocation of Respondent’s used motor vehicle dealer’s license.
(III) A Consent Agreement between UMV&PC and Mariano (Rocky) Santiago, on behalf of Santiago Sports & Classics, LLC, a limited liability company, a licensed used motor vehicle dealer, hereinafter referred to as “Respondent.” The following is a summary of the facts concerning the investigation by Commission personnel of the above referenced Respondent, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions that the Respondent has agreed to in order to resolve this investigation. 1. Respondent has failed to properly assign at least twenty-four (24) certificates of title to vehicles sold. 2. Respondent, in failing to properly assign certificates of title may have caused a number of buyers to avoid payment of the proper registration, license fees and excise taxes due the State of Oklahoma. 3. Respondent acknowledges in the event of a hearing before the Commission, the sanctions could, in addition to the assessment of fines within a range of up to One Thousand Dollars ($1,000) per violation, include suspension or revocation of Respondent’s used motor vehicle dealer’s license. 4. Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent therefore agrees it will pay to the Used Motor Vehicle and Parts Commission the sum of Two Thousand Dollars Four Hundred Dollars ($2,400), payable in the amount of Five Hundred Dollars ($500) per month for four months, and a final payment of Four Hundred Dollars ($400), beginning on the first day of the month following the month in which the Commission approves this Consent Agreement. In the event the sum is paid as agreed, said payment will constitute full and final action on all violations pending or which may be charged against Respondent at the time of this agreement. In the event said sum is not paid as agreed, Respondent acknowledges further action may be taken, which may include a formal hearing for the revocation of Respondent’s used motor vehicle dealer’s license. (IV) A Consent Agreement between UMV&PC and William R. Thompson, on behalf of Triple T Motors, LLC, a limited liability company, a licensed used motor vehicle dealer hereinafter referred to as “Respondent.” C O N T I N U E D O N PA G E 2 2
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FEDERAL ADVOCATES LOBBYING REPORT Wall Street/Consumer Financial Services Reform Bill On September 21, Keith Whann and Federal Advocates met with staff of the Federal Trade Commission (FTC): James Dolan, assistant director; Carole Reynolds, senior attorney, Division of Financial Practices; Rebecca Kuehn, assistant director, Division of Privacy and Identity Protection; Katherine Worthman, attorney, Division of Financial Practices; and Daniel Hanks, attorney, Division of Marketing Practices. The meeting covered implementation of the above bill and its impact on the auto industry. Following discussion of various issues, including Buy HerePay Here issues, with NIADA General Counsel Keith Whann leading the discussion and answering various questions as to how the auto industry segments work, which also covered the auto auction process, it was de-
cided to schedule another half day session in the following weeks to allow for a more detailed discussion of issues. To review, on July 22, President Obama signed into law the so-called Wall Street Reform Bill. As reported previously, the new law exempts certain auto dealers from increased oversight with respect to dealer-assisted financing. To get to that result, advocacy activities over the past month included numerous meetings, strategy phone conference calls, letters, talking points, legislative alerts and more. The law does grant increased powers to the FTC regarding dealer oversight. Also, it requires coordination with the Defense Department (DOD) to ensure service members and their families are treated fairly by automobile dealers.
Department of Defense Regarding the issue of “how to ensure that service members and their families are treated fairly by automobile dealers,” Keith Whann and Federal Advocates also met on September 21 with Frank Emery of the Defense Department’s Family Policy Outreach Directorate. Whann relayed a specific example of how he helped a service member at Fort Bragg, N.C., regarding an automobile situation, working with the base Judge Advocate General’s office and others. He also talked about a plan for a special program to teach dealers on how to deal fairly with service members and their families. Emery mentioned a November conference in Denver where Keith could give a presentation. Details are to be finalized at a later date.
FEDERAL ADVOCATES IS NIADA’S GOVERNMENTAL ADVOCACY PARTNER. To read past lobbying reports, visit http://www.niada.com/legislative_and_legal.php
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C O N T I N U E D F R O M PA G E 2 0
USED MOTOR VEHICLE AND PARTS COMMISSION REPORT The following is a summary of the facts concerning the investigation by Commission personnel of the above referenced Respondent, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions the Respondent has agreed to in order to resolve this investigation. 1. Respondent has allowed an unauthorized person to use the dealership name and dealer number to transfer a certificate of title to a vehicle not belonging to the dealership. 2. Respondent has allowed the sameperson to use the dealership’s temporary license plate upon sale of the vehicle referred to in paragraph 1. 3. Respondent has employed an unlicensed salesperson for the purchase and sale of vehicles at auction. 4. Respondent has failed to properly assign certificates of titles in at least five (5) instances. 5. Respondent has agreed he will attend the Commission’s Education Program, which as of the time of the execution of this Consent Agreement, he has done. 6. Respondent acknowledges in the event of a hearing before the Commission, the sanctions could, in addition to the assessment of fines within a range of up to One Thousand Dollars ($1,000) per violation, include suspension or revocation of Respondent’s used motor vehicle dealer’s license. 7. Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent therefore agrees it will pay to the Used Motor Vehicle and Parts Commission the sum of Two Thousand Dollars ($2,000), payable in the amount of Five Hundred Dollars ($500) per month, beginning on the first day of the month following the month in which the Commission approves this Consent Agreement. In the event the sum is paid as agreed, said payment will constitute full and final action on all violations pending or which may be charged against Respondent at the time of this agreement. In the event said sum is not paid as agreed, Respondent acknowledges further action may be taken, which may include a formal hearing for the revocation of Respondent’s used motor vehicle dealer’s license. (V) A Consent Agreement between UMV&PC and Ginger Maxwell, on behalf of Apache Transport, LLC, an Oklahoma limited liability company, a licensed manufactured home dealer and a licensed manu-
factured home installer hereinafter referred to as “Respondent.” The following is a summary of the facts concerning the investigation by Commission personnel of the above referenced Respondent, the violations of the used motor vehicle licensing laws and/or Rules of the Commission, the possible sanctions which may be imposed, and the sanctions the Respondent has agreed to in order to resolve this investigation. 1. Respondent failed to complete the licensing requirements for its manufactured home dealer’s license and for its manufactured home installer’s license for 2010. 2.Respondent had all the requirements for licensing but failed to submit the correct document, i.e., a current certificate of good standing for the limited liability company from the Secretary of State’s office. 3. The parties have acknowledged that the omission was inadvertent and Respondent believed in good faith that the necessary documentation had been sent to the Commission. 4. Respondent has been cooperative in resolving this matter and has agreed to see that any subsequent renewal applications are completed as required. 5. Respondent has agreed it installed more than one home without an installer’s license for which Respondent may be fined the sum of One Thousand Dollars ($1,000) 6. Respondent acknowledges in the event of a hearing before the Commission, the sanctions could, in addition to the assessment of fines within a range of up to a One Thousand Dollar ($1,000) fine, include suspension or revocation of Respondent’s manufactured home dealer and installer’s license. 7. Respondent agrees to pay to the Used Motor Vehicle and Parts Commission for said violations as follows as full and complete disposition of this matter: Respondent therefore agrees it will pay to the Used Motor Vehicle and Parts Commission the sum of One Thousand Dollars ($1,000.00), payable on or before the last day of the month in which the Commission approves this Consent Agreement. In the event the sum is paid as agreed, said payment will constitute full and final action on all violations pending or which may be charged against Respondent at the time of this agreement. In the event said sum is not paid as agreed, Respondent acknowledges further action may be taken, which may include a formal hearing for the revocation of Respondent’s used motor vehicle dealer’s license.
TIME IS RUNNING OUT FOR BOND AND LICENSE RENEWAL! If you don’t have your bonds renewed yet, call Rose Morgan at 405-2322947 or 800-346-4232, NOW! That’s one criteria for getting your license renewed. The Used Motor Vehicle and Parts Commission (UMVPC) sent out license renewal applications in October. If you have not yet received your renewal application, you should immediately check with the UMVPC at 405521-3600 to get your application status. Failure to complete the application and get it approved could jeopardize your license to operate. To be licensed, your renewal application must be accurate and complete, in the commission office AND no outstanding tax liabilities with the Oklahoma Tax Commission. Your dealer plates expire on December 31. Unlike public vehicle license plates, there is no grace period for dealer plates. At midnight on December 31, they become invalid. The next part of this story is that the tax commission will not issue your new plates or decals until after the UMVPC issues your renewal license, which won’t occur if you have any delinquent state tax liabilities! That makes your license renewal even more important. If your license expires, the tax commission will charge you excise tax on every vehicle you sell and the auctions will be notified you are no longer licensed. Don’t procrastinate – it could cause your license to lapse before a new license is issued.
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OIADA NEW AND RENEWING MEMBERS AUGUST 2010 The following list includes members who joined or renewed their OIADA/NIADA membership during August 2010. We express our sincere appreciation for all the members of OIADA and we extend our invitation to dealers who are not members. A membership application can be found elsewhere in this Newsletter. We urge you to be an active part of maintaining a strong and effective used car industry voice in the legislative and regulatory environment. With the current congress, we need that voice more than ever! R R R R N R R R R R R R R R R R R N N N N R R
Autohaus Sports Cars, Inc. Wholesale Enterprises Auto Sales West Brothers Auto Sales McQuerry Motors, Inc. Edwards Auto Sales Good Deal Used Cars & Parts, Inc. I-40 Auto Auction, Inc. Enlow 66 Auto Auction, Inc. Discount Auto Sales Clearcut Auto De Luxe Motors #2 Sterling Motors, LTD Co. Town & Country Auto, Inc. Pinnacle Auto Center, LLC Eastern Motors John Thomas Auto Sales, Inc. Enterprise Car Sales Save On Autos OK RV & Tractor Co., LLC Alliance Auto Sales, LLC Blazer Motors I-35 Car Nation Baustert Motor Co
Paul Crossfield Wholesale Enterprises Garvin L. West David McQuerry E. D. Edwards, Sr. Johnny Fuller Jeff Haley Rodney D. Enlow John Sharp Chad Pratt Guadalupe Pena, Jr. Rob Redding Roy G. Sisco Steven Wilson Doug Speer John Thomas ENA Holding, LLC Raylin Carter Richard Bell Tommy Gober Paul James, Jr. Massoud Goli John P. Baustert
1991 1993 1994 2000 2010 1991 1991 2007 1992 2007 2002 2006 1991 2008 1993 2009 1993 2010 2010 2010 2010 2006 2005
Midwest City Midwest City Lawton Shawnee Roland Turpin Del City Tulsa Broken Arrow Broken Bow Oklahoma City Oklahoma City Wewoka Guymon Altus Cordell Midwest City Ponca City Overbrook Oklahoma City Oklahoma City Oklahoma City Okarche
LICENSE APPLICANTS APPROVED The following applicants, as listed in the Agenda for the Used Motor Vehicle and Parts Commission Regular Meeting of Sept. 14, 2010, were considered for issuance of used motor vehicle dealer licenses and wholesale vehicle dealer licenses. The applications were approved pending compliance with the State licensing laws and rules, and subject to final approval by Commission staff.
USED DEALER LICENSES 11th Street Motors Arnie’s Truck & Auto Sales *Best Buy Car Dealership Car King Motor Sports Cars For America, Inc. Fatboys Auto Sales, LLC Foranten Auto Sales Government Liquidation Highwater Auto & Cycle Sales *ilovecheapcars.com Jeffco Motors Latinos Auto Sales *Leo’s Classics McClain’s RV Superstore OKC West Metropolis Motorsports MPG Auto Sales, LLC North Point Auto Sales Remarketing Sport Chassis Santiago Auctions Spicer’s Auto Sales *Sprenger Motors, Inc. T & T Powersports, LLC Triple J Auto Ranch #2 Triple T Motors, LLC #2 Wewoka Street Pawn Gold & Motors Wilmes Pre-Owned Autos, LLC R & E Exotic Autos, LLC
Pedro “Peter” Miranda Daren D. Barnes Negar Rezakhani Payman Lesani Shawn Potter Jack P. Murdock Ali Hussian Almezayna Thomas Burton Ardell Smith Robert Patton Jeffrey McFarlane Oscar Gesar Garcia Charles Smith Larry W. McClain Zac Holland Daniel Grout Sabrina Thompson William Aneshansley Mariano “Rocky” Santiago Rocky Gene Spicer Oliver Sprenger Troy Belk John P. Watson, Sr. Bill Thompson Deborah K. Estep Scott Wilmes Eric T. Gove
Tulsa Tulsa Oklahoma City Oklahoma City Bartlesville Oklahoma City Oklahoma City Oklahoma City Kingfisher Tulsa Coweta Tulsa Oklahoma City Oklahoma City Tulsa Tulsa Nowata Clinton Tulsa Durant Tulsa Sapulpa Tulsa Oklahoma City Wewoka Altus Newkirk
WHOLESALE USED DEALER LICENSES Alliance Motor Car Placement C & C Motors C & P Auto Sales, LLC *Deal-A-Carplex, Inc. S & G Motors, LLC T H Auto Sales Winners Auto Sales CCF Auto Remarketing
Steven Hightower Clyde J. Davis Pansye B. McMillan Jonathan Stewart Shawn Davis Tahani Al-Hakim Jawad Drissi Leslie Hibdon
Tulsa Oklahoma City Bixby Oklahoma City Oklahoma City Oklahoma City Lawton Del City
OIADA SELECT PROVIDERS AUTOZONE ADR is pleased to list AutoZone as a “Select Provider” for automotive parts and accessories to OIADA Members. AutoZone commercial specialists and delivery personnel work behind the scenes in AutoZone Commercial locations to provide dedicated support and “WOW” customer service to OIADA Members.
DAVID L. NUNN, ESQ. 405-330-4053, 405-330-8470 (fax) David L. Nunn heads the Edmond, Oklahoma law office of David L. Nunn, P.C. which serves the greater metro Oklahoma City area. We are pleased to include Mr. Nunn as a “Select Provider” of legal service to the industry. David L. Nunn, P.C. is located at 17 East First Street, Edmond, OK 73034. Mr. Nunn is included as a “Select Provider” not because he asked to be, but because we know the kind of service that he provides to dealers.
B & C AUTO TRANSPORT, INC. 405-381-0114, 405-641-6057 (cell) BCAutoTransportInc@gmail.com We take pride in providing fast, dependable transport service to auto dealers nationwide. ADR of Oklahoma is pleased to include B & C Auto Transport, Inc. as a “Select Provider” of transport services for auto dealers nationwide because of their record of providing outstanding service at reasonable rates.
*ISSUANCE OF THESE LICENSES IS SUBJECT TO SATISFACTORY FINANCIAL STATEMENTS BEING SUBMITTED. 23 w w w. e - o i a d a . c o m
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FACEBOOK: FIRED UP OR JUST FIRED? THE GOOD, THE BAD AND THE UGLY OF SOCIAL MEDIA IN THE WORKPLACE There’s no doubt Facebook participation can be an asset to any business.
The question is how can you use it to promote your products and company, yet be sure your team members are cautious in the way they use it? What should the owner and office manager post? Where is the line between personal and professional? Knowing the good, the bad and the ugly of Facebook for business, your company can take full advantage of this tool and watch your business grow. The good: One benefit Facebook offers for business is its ability to let customers and potential clients know your company on a personal level. Clients come to you for a relationship. They assume you know how to take care of their needs. Being accessible on social media sites helps your clients and customers feel connected to your company. A Facebook page also can help bring people to your website. Customers will look for your presence on the Internet and a Facebook profile is just another way they can find you, leading them to your site to find out more information and possibly contact you. Facebook can be a tremendous networking tool. Business pages on Facebook can elevate your website status through SEO, or search engine optimization. In addition, if you have a Facebook business page link on the home page of your website, potential clients can feel they know you and your office before coming in for their new customer experience. Several companies have gained new clients simply because of their Facebook page. The bad: A recent study of companies with 1,000 employees found 8 percent of their employees actually have been dismissed for their behavior on sites such as Facebook and LinkedIn. That’s double from the previous year! Companies have also fired employees for sharing sensitive details about the business and their clients. In addition, team members have been sanctioned and fired for making unprofessional remarks about their boss via social networking sites. The ugly: Realize that even if you use Facebook privacy settings, you may still be in danger. Remember going to high school and doing things you thought your parents would never know about, yet somehow
they always found out? The same is true of social media. Avoid bad-mouthing your boss, co-worker or anyone in your professional life in such a public way on a public forum. Every business should have specific guidelines that apply to social media use. There are two factors at work here: employers need to be closely monitoring social media sites and employees need to use common sense when posting about work life. Workers need to be careful about sharing sensitive information as well as making foolish remarks about their employer. The owner needs to set the vision and goals for the office regarding social media with the help of the team with the development of a mission-driven ethical use policy.
• When posting on personal and social media sites, be nice and keep it clean. Develop verbal cue cards on “what to say and not to say” on social media. Have clearly developed expectations that apply to all team members. • Consider leveraging your office’s Facebook profile to start positive conversations about your employees and your services. You can do this by regularly posting testimonials from present or past clients. • With your customers’ permission, involve them in your efforts. You can do this by connecting with them and posting information about their business. • If you have a personal page and a business page, consider your policy regarding clients who want to become your personal friend. One business owner lost a family of customers who requested to be his personal friend and he said “no.” • Create a page in your office policy manual regarding Facebook and social media posting so each employee understands what to do and what not to do.
With a clearly established policy and understanding of the good, bad and the ugly, Facebook and social media can be a great asset to your business. Following are some basic guidelines for using social media in business. The guidelines listed below must apply to every member of the team member, including the owner: • Never post anything that directly or indirectly insults customers, clients or the business itself.
• Designate one or more specific employees to be responsible for posting on and updating your sites. Business page content will need to be updated frequently and consistently to ensure the Wall tab stays fresh. Carve out a few hours each week for this responsibility dedicated to marketing on the Web. With a clearly established policy and understanding of the good, bad and the ugly, Facebook and social media can be a great asset to your business. By enforcing social media policies and following these guidelines, you’ll see great results from your efforts! By Rhonda R. Savage, DDS ABOUT THE AUTHOR: Dr. Rhonda Savage is an internationally acclaimed speaker and CEO for a wellknown practice management and consulting business. Dr. Savage is a noted motivational speaker on leadership, women's issues and communication. For more information, visit www.dentalmanagementu.com or e-mail rhonda@milesandassociates.net.
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RISK BASED PRICING RULE What it is and How it Affects Dealers The Federal Trade Commission’s (FTC) RiskBased Pricing Rule (RBPR) requiring dealers to notify a customer whose credit score is lower than a majority of the dealer’s other customers takes effect Jan. 1, 2011. The rule has many dealers still searching for answers.
A risk-based pricing rule notice is applicable to customers who get credit but on less favorable terms as a result of their credit score. The law and the rules give dealers two options: they require dealers to either send a risk-based pricing notice to certain customers or a “credit score exception” notice to all credit applicants. That’s where it becomes confusing to some. The dealer is responsible for providing the notices to the customers if the dealer is involved in the finance contract either directly or indirectly. The trigger for sending a notice is the pulling of a credit report to determine whether to finance a customer, then, based upon that credit score, the dealer applies an annual percentage rate (APR) that’s less favorable than the most favorable APR ratings available to a substantial portion of that dealer’s customers. A dealer basically has two notice options and to fall under the law’s safe harbor provisions, one must make use of the model forms as described in the rules. The first option available to dealers is the general notice option, but it’s not very practical for most. Generally, the dealer is required to sample finance customers over a two-year period, then determine the credit score where 40 percent of those customers are higher and 60 percent are lower. This becomes the cut-off score and you must determine this score separately for both new and used vehicle finance customers. You must then give every new financed customer with a credit score below the applicable cut-off score a risk-based pricing notice. Plus, you must revise those scores at least every two years. The second option is to give every credit applicant at your dealership a credit score exception notice. With this option, a
dealership must include the customer’s credit score and identify the credit bureau whose score was used. One must also include the date of the credit score and use the model form disclosure language. The notice must include either a bar chart (graphic) or language showing where the customer falls in the national range of credit scores. This option seems to be a more practical way for dealers to go. A different form must be sent to customers without a credit score. All these forms are available from ADR at the OIADA offices. The FTC can obtain injunctive relief and penalties of $3,500 for each known violation that’s part of a pattern or practice of violations. FCRA § 621(a), 15 USC § 1681s(a); 16 C.F.R. § 1.98(m) (adjusting civil penalties under the FCRA from $2,500 to $3,500). Section 615(c) of the FCRA, 15 USC § 1681m(c), provides that a company cannot be held liable for a violation of the Risk-Based Pricing Rule if it can show by a preponderance of the evidence it maintained reasonable procedures to assure compliance with the rule. There is no private right of action under the FCRA for violations of the Risk-Based Pricing Rule. To access any or all of the model forms printed with your dealership name and address, it will be necessary for the dealer to provide certain data to the ADR staff so your forms can be personalized to your dealership. The best way to communicate this information is by e-mail to odell.morgan@sbcglobal.net. We will need the name and address of the dealership as you would want them printed on the notice. If you have questions, you may call the ADR staff at 405232-2947, 405-799-7116, 405-799-1113, 405-799-3759, or 800-346-2947. ADR - Our Mission: Your Success This article is intended for information only – it has no legal application. For its application to your dealership, contact your legal advisor.
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FROM PC TO POCKET: CONNECTING WITH SHOPPERS ON THE MOVE Internet access from mobile devices is a hot topic for automotive marketers. It’s also an important one. Mobile Web growth is so strong, it’s suggested mobile usage will overtake traditional Web access from wired devices (desktops and laptops) in just three years. That means you need to start thiking today about how this technology might affect your business in the near future. First, let’s define the mobile Web. It refers to any browser-based access to the Internet or Web applications (or apps) using a mobile device. There are many different types of mobile devices, but by this time next year, smart phones (i.e., the iPhone, Blackberry, Android, etc.) will be the dominant type of phone. This information is important because smart phones are the most efficient and effective mobile devices for accessing the Internet. More importantly, it’s on the smart phone where advertising and shopper engagement can happen. Now let’s talk about how consumers use mobile devices as part of the vehicle shopping process. At any given time, about 50 million Americans are shopping for a car, and up to 6.2 million are using their mobile phones during that process. However, there are some key differences in shopping behavior when car shoppers are on the go versus using a PC or laptop from their home or office. FOR EXAMPLE, MOBILE SHOPPERS ARE TYPICALLY: • Closer to making a purchase • More likely to be looking at content related to their final selection and/or purchase • Not close to a PC and therefore not conducting extensive research In addition, the mobile shopping cycle appears to complement the traditional online shopping cycle. According to AutoTrader.com site statistics, online traffic from a laptop or PC is the highest at the beginning of the week and gradually declines as the weekend approaches. But how does mobile Web use compare? AutoTrader.com site usage also shows a dramatic increase in mobile access to our site over the weekend. This information reveals there is a natural continuity between the research that car shoppers are doing Monday through Friday and their trips to dealerships at the weekend. The most valuable thing you can do as a dealer is develop a strategy to stay connected to vehicle shoppers when they take that shopping experience from their PC to their pocket.
MOBILE CONSIDERATIONS FOR YOUR DEALERSHIP TALK TO YOUR WEBSITE PROVIDER Ask your website vendor if your site is mobile device-friendly. Go ahead and check it out from your own phone. What do you see? As you evolve your dealership for the future, think about optimizing your virtual showroom for the mobile web. KEEP YOUR LISTINGS IN FRONT OF IN-MARKET CAR SHOPPERS WHEREVER THEY ARE Make sure your inventory is listed on third-party sites that offer a satisfying mobile web experience for car shoppers. Independent sites such as AutoTrader.com have streamlined mobile sites that allow dealers to stay connected to in-market shoppers when they go mobile. ENSURE YOUR CONTACT INFORMATION IS FRONT AND CENTER ON YOUR DEALERSHIP SITE Remember earlier when I mentioned consumers aren’t conducting extensive research on their mobile phones but instead are more likely to be in the final stages of making a purchase decision? What if that decision was to walk into your dealership but they need to look up your street address or phone number from their mobile device? Make it easy for them. Keep your dealership contact information prominent on your homepage. Even from wired devices, consumers don’t like to navigate through several pages to find basic information, and they’re even less likely to do it on their cell phone where the screen is small and the page loading time is slower.
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At any given time, about 50 million Americans are shopping for a car, and up to 6.2 MILLION are using their mobile phones during that process.
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BASIC BLOCKING AND TACKLING IS STILL THE MOST IMPORTANT THING Advances in the technology for the mobile web are great opportunities for dealers to stay connected to car shoppers during all stages of the shopping process. However, effective online merchandising should be the higher priority before investing time and money in mobile platforms. Tori Morandi has more than 10 years of experience as a public speaker and expert trainer as well as extensive in-dealership experience. As an industry educator for AutoTrader.com, she covers what's happening in the automotive market, consumer car shopping behavior, emerging trends, and what's new with advertising and marketing on the Internet.
BY TORI MORANDI, manager of industry education, AutoTrader.com 30 DEALERS’ RESOURCE
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