The Ontario Dealer - Volume 12 Issue 1

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EDITOR

Gina Monaco

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CONTRIBUTORS

Chris Chase, Ronda Payne, Bill Sherk, Angela West

If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com

THE DRIVER’S SEAT

Operations

By James Hamilton, Executive Director, UCDA

WHAT ARE BUSINESS OPERATIONS?

Stated simply, operations refers to the activities, processes, methods and means by which you keep the lights on, pay your staff (and yourself if you are that lucky!) and grow your business. Operation management is the means by which you get there.

If this topic does not seem sexy, and a bit dry, that’s because it is - at least in isolation from the ‘real world’. Consider an operation management decision in 1913 by one Henry Ford. He determined that a moving assembly line would revolutionize the manufacture of a motor vehicle. Did it ever.

It was so efficient that the ultimate product could be sold for far less than in the days before the line was functioning. Ford did not invent the motor vehicle, but he did invent a new way to build

one. He managed the heck out of his operations.

Seem more interesting now?

Operation management is about more than seeking profit, although that is important as we all know, but it is really, at its core, a never-ending search for efficiencies. Seeking to improve upon what you do, to produce what you do better, faster and more effectively.

As I’ve alluded to in past issues of our magazine, unless you are a sole proprietor or operate all alone, in which case all of this falls on you, the success of your venture is first and foremost dependent on your team. So, logically, the first step in addressing operations is to assemble your team.

A dealership can be looked at as a functioning system, with each component and aspect of that system, from input to ultimate output, working together, yet separately. Various members of your team will play a larger or lesser role at different points in the stream.

An “input” at a dealership could be vehicle inventory, whether from factory, auction or a consumer on trade. Another “input”, for dealerships that do service, are vehicles brought in by other dealers or consumers for service.

How these inputs are handled will vary, but each, in turn, have their own challenges and opportunities to improve upon. Your team will help you

identify those, as with inventory, from reconditioning, searches for accidents and liens, and confirming problems are identified and repaired prior to sale.

For vehicles coming in for service, a whole other set of protocols are going to be considered, analyzed and improved upon. Getting the right information from the customer, key management, authorizations recorded, repairs performed and vehicle hand-back and payment, all involve touchpoints that your team must identify and standardize so the experience for staff and consumer is the same at every stage.

This sounds simple, but it is hard work. And you have not even considered “output” yet!

Managing operations engages several departments at your dealership, including:

• Operations strategy

• Quality management

• Process

• Capacity, do you have the space, the staff, the means to achieve objectives

• Facilities planning, related to the above

• Inventory control

• Marketing

Your team will be tasked with finding operational efficiencies. They will

Continued on Page 8

THE LAW MATTERS

Repair Loans and the RSLA

By Hetash Singh, Associate Legal Counsel

MOST DEALERS KNOW THAT THE REPAIR AND STORAGE LIENS ACT (“RSLA”) allows those who are owed money for repairs, towing or storage, under the right circumstances, to claim a lien interest in, and even repossess, a motor vehicle.

There is a niche market that operates in this area that I will call repair finance loans. The RSLA allows a mechanic who is owed money for repairs to assign his repair lien to a third party.

In other words, the third party pays the mechanic’s bill, he assigns his rights under the RSLA to the third party, and they assume the headache of collecting on the debt created by the repair loan to the consumer.

It’s a pretty sweet deal for the finance company because a lien secured under the RSLA has priority over ordinary

liens registered, often by banks, for personal loans under what is called the Personal Property Security Act (“PPSA”).

RSLA lien holders get paid before PPSA lien holders, even when the PPSA was registered first!

One such company who are active in this area is called Go To Loans Inc.

What is interesting about many of these companies, is that the repair finance loans themselves are often relatively modest, in the low thousands, and usually involve fancy tires and / or rims. When the borrower goes into default, dealers and leasing companies who own these cars and have to deal with these liens, find the interest and add-on fees often amount to as much, or more, than the original loan demanded by the RSLA lienholder.

Then along came a recent small claims court case out of Richmond Hill. What is interesting about this case is that it significantly clipped the wings of the RSLA lien claimant’s ability to seek additional charges, interest and fees over and above the repair amount. Also, the Deputy Judge hearing the case is Lisa Carr, a well-respected lawyer and recognized expert in RSLA litigation.

In this case, the applicant was a leasing company who realized Go To Loans Inc. had registered a RSLA lien on one of their vehicles. They questioned the amount claimed and asked the court to rule on that question.

The repair involved the installation of 4 tires and the bill was just over $3000. Apparently, Go To Loans Inc. registered an RSLA for the amount owing and the debtor was making payments over time against the loan. The leasing company argued, taking the loan payments into account, all that should remain owing was $890.

Go To Loans Inc. argued that their repair finance agreement entitled them to apply loan payments to interest and fees before the principle owing, meaning the balance needed to clear the lien would be more in the nature of $3000, not $890.

Deputy Judge Carr’s response to that argument was:

“The RSLA lien is created by statute and not by contract. The RSLA possessory lien arose when repairs were commenced on the BMW. The repair invoice was signed March 21, 2022. Three days later, the VRPPA finance agreement was signed. The VRPPA cannot alter the terms of the RSLA lien after the lien arises. The RSLA possessory lien is limited to the amount of the repair invoice, being $3,074.72. The non-possessory RSLA lien arose on release of the BMW and the nonpossessory lien is the unpaid amount of the possessory RSLA lien. The amount of the non-possessory lien cannot be greater than the possessory lien.

Continued on Page 8

THE DRIVER'S SEAT

Continued from Page 5

By James Hamilton

compare costs with revenue and seek to find the profit, using all the resources at their disposal whether staff, materials, equipment, or technology.

Ask your staff to concentrate on company processes. Nothing is off the table in this exercise.

The combination of understanding and coordinating the work of your company is key. You have to understand what your company does, what is essential, and then roll up your sleeves and find a means by which to make this flow seamlessly from input through to output.

At its most basic, operation management involves prioritizing and employing business practices designed to achieve maximum efficiency as a means to achieve maximum profitability.

Balancing the efficient use of resources, including staff, materials, equipment, and technology, is the key to success

THE LAW MATTERS

Continued from Page 7

By Hetash Singh

An assignee is not in a better position than the assignor. Active Green cannot assign more than it is entitled to. Active Green is only entitled to the amount of the repair cost. The entitlement to charge interest arises under the subsequent VRPPA agreement.

The purpose of the RSLA is to pay the repairer for improvements to the BMW and not to profit from the interest.”

This is a pretty radical ruling as it strikes at the heart of the business model of repair finance companies, because the interest and other fees is what makes this area so lucrative, and the super-priority of the RSLA makes recoveries so much easier.

Essentially, the court is saying a repair finance loan agreement, including fees and interest, is not a “repair” and so does not support a repair lien claim. It

and, by extension, to the success of the company.

Now that’s sexy!

In addition to our regular articles, such as The Law Matters, Tech Talk, The Common Lawyer and The Old Car Detective, our theme this issue is Operations, so please enjoy the following articles in this issue of The Ontario Dealer:

• Fiscal Fitness

• Get Educated... What You Need To Know

• Improve Your ROI

• Manheim Sale

You can reach me anytime at j.hamilton@ucda.org with any comments or suggestions for the magazine!

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should be interesting to see how repair finance companies respond to this ruling.

Obviously, the leasing company won the case and only has to pay $890 to clear the lien because, as the Judge said:

“For the reasons discussed above, I find that interest and other fees do not form part of the RSLA non-possessory lien. Therefore, the amount of the lien of $3,074.72 is reduced by the payments of $2,184.53, leaving a balance of $890.19. If any further payments have been made, this will reduce the amount of the lien further.”

You can read the whole case here: http://tinyurl.com/2sre6553

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FISCAL FITNESS: ASSESSING YOUR FINANCIALS

By Angela West

WHEN WAS THE LAST TIME YOU TOOK A LOOK UNDER THE HOOD OF YOUR DEALERSHIP?

Just like your vehicles, your business needs regular tune-ups to make sure

everything is running smoothly and small financial problems don’t become huge expensive headaches.

Running a regular financial wellness check can help keep your dealership in

the black, giving your financial team the real-time data they need to stay on top of changes and guard against internal and external economic shocks.

Canada’s used car market was worth $17 billion in 2023 and is expected

to stay strong into 2024 as the price of new vehicles soar. Make sure your dealership is positioned to take advantage of this growth with a thorough financial spring clean that means you’re ready for anything.

4 WARNING SIGNS THAT YOUR DEALERSHIP MAY BE IN TROUBLE

Whether you’re running your financial inventory for the first time, or the hundredth time, it’s important to be thorough and stay alert to potential red flags that could signal trouble ahead. Warning signs include:

1.RISING DEBT

The more debt a dealership has, the less flexible it is. This is bad news for your business as it limits your options for refinancing when necessary. With Canada on the brink of a recession after periods of climbing inflation, your dealership has to be resilient and that

means putting the brakes on your debt.

Look at how you can balance your debt for stronger financial planningidentifying your short-term priorities vs your long-term goals to avoid overleveraging and ensure you have some room to pivot when the market gets tough.

2. DWINDLING CASH FLOW

If you’ve high debt, you probably have limited cash flow and, again, this is backing your business into a corner.

Cash flow issues typically stem from outsized ambitions. Dealerships can overextend if they don't accurately take the temperature of the market and their own finances. Perhaps you expanded too rapidly, maybe you invested in inventory to prepare for sales growth that never materialized.

Whatever the reason, be sure to scale at a pace that works for your business. Set strategic goals that are optimistic without being unrealistic, running the numbers on your market, demographic, workforce, facilities, debt, and overheads before making any big moves.

3. HIGH STAFF TURNOVER

Can’t keep staff? Maybe it’s the market, or maybe it’s you. Either way, this is a leak that you have to plug before

it starts running up your expenses. The cost of continually searching for, hiring, and onboarding new talent can run into the thousands, and that’s money your dealership can’t afford to waste.

If turnover is a constant problem, focus on your staff retention policies. What are you doing to keep your people? Do you provide them with career development opportunities? What’s your company culture? Are you offering competitive compensation and perks? What’s your management style?

Also address any issues in your hiring practices, looking at where you can minimize waste, shorten the hiring process, and get better results from your search. If staff keep leaving, perhaps you’re not doing enough to match the right person to the role.

4. CHANGES IN CUSTOMER BEHAVIOUR

It’s normal for customer demand to vary slightly as the economy shifts and trends come and go. But a consistent drop in interest should never be ignored as that dip could easily turn into a freefall.

Spotting a slump early gives you the opportunity to be proactive. Identify the issue first - are you losing repeat customers or new business? If it’s the former you may need to improve your customer service practices, if it’s the latter, perhaps you’re not keeping up with what the market wants.

This is where your marketing and sales teams can help, providing real-time feedback on what’s working and what’s

not. With the right analytics, you can keep track of how you’re performing with your customer base and switch things up when needed.

The basics of good financial hygiene

Once you’ve dealt with the red flags, you can ensure your dealership stays financially fit by following best practice accounting practices such as:

• Streamlining your processes and paperwork - so your accounting department can work as efficiently as possible

• Investing in the right tech toolsmake sure your team has the most up-to-date bookkeeping software and other tools so they can digitize time-consuming manual tasks

• Scheduling your check-ups - put regular financial check-ups in the calendar on a formal schedule, rather than just leaving everything until year-end. Ideally these should take place monthly or quarterly

• Training - offer your accounting staff and department managers financial management training to help them become more efficient. This shouldn’t just focus on bookkeeping but also training for financial benchmarking, F&I, and other finance-related areas.

Consult the experts

Your accountants should be properly trained in financial management, but it’s also a good idea to have thirdparty expert advice. If you don’t have a Chartered Professional Accountant, get one.

If you have one, you could start using their services more to boost your financial fitness - think of them as a personal trainer for your finances. For example, a CPA can give you a professional independent evaluation of what you should be benchmarking to ensure your business has the right metrics to monitor performance over time.

A CPA-prepared financial statement will generally include your dealership’s balance sheet, income statement, and statement of cash flows.

These give you detailed insights on your business’ assets and liabilities so your team has a clear foundation from which to set up monthly reports to make sure that your financials are on track. Your team can also use this as a template for month-to-month operations.

Getting advice from an experienced CPA can also help you identify pain points in your organization. Your CPA can then work with your in-house financial team to address these. If you don’t have room in your budget to keep a CPA on staff year-round, scheduling an initial consult and a quarterly review can be a helpful compromise.

This gives your accounting team the reins throughout the year, but ensures you have a third-party on hand to oversee reports at the end of each year.

Your financial statements tell a story, make sure you know how to read them - and what actions to take to preserve the financial health of your dealership over the long-term ■

GET EDUCATED AND BOOST YOUR BRAND

By Angela West

THE USED CAR INDUSTRY HASN’T ALWAYS HAD A GREAT REPUTATION. We all know the stereotype - pushy salespeople hustling to seal the deal on cars that are barely roadworthy.

Conscious of reputational damage, leaders in the sector are now working hard to push back against this image, investing in training to upskill their staff and protect both their buyers and their bottom line.

From mandatory certifications to ongoing education, training isn’t just a way of ensuring your employees have the skills they need to follow best practices around ethical selling. It’s a

powerful message to your customers that your dealership is committed to quality. It also helps position your business as a leader in the space; a dealership staffed by automotive experts and offering the best services on the market.

Mandatory certifications

The landmark certification for the industry is the OMVIC Automotive Certification Course, created by the Ontario Motor Vehicle Industry Council (OMVIC) in partnership with the Automotive Business School of Canada (ABSC) at Georgian College.

Anyone wanting to register as a dealer or salesperson must pass the OMVIC Automotive Certification Course. Upon completion, candidates then have two years to register with OMVIC. Once registered, dealers and salespeople can use the Certified in Automotive Law and Ethics designation (C.A.L.E.) to show that they’ve met the industry benchmark.

The Used Car Dealers Association of Ontario (UCDA) offers OMVIC Automotive Certification courses for

new entrants to the industry. These run weekly and typically have 8 to 10 people per class. It’s a one-day online course, after which participants are emailed a link to take their test.

The UCDA also offers an abbreviated version of the OMVIC Automotive Certification, created for salespeople and dealers who were ‘grandfathered’ into the industry i.e. those who were already working before the certification was introduced. This applies to anyone who doesn’t have the latest certification, issued in 2010.

Uptake of this course is much lower than the original, according to the UCDA's Director of Member Services Dave Aelick who explains that it’s not technically mandatory for those already registered with OMVIC. It is, however, a good investment in your business and your staff.

“How can more education be a bad thing?” says Aelick. “It keeps you current and means dealers have a good understanding of all the regulations that affect them. There is always an advantage to refreshing or increasing your knowledge base. Education is always a win.”

Training your salespeople

When demand is high, cars are easy to sell. Boom years in the used car market have led to training gaps that many dealerships haven’t yet addressed, according to Chris Schulthies, National Trainer/Consultant at Wye Management.

“There's a generation of salespeople that don't really know how to sell a car. The expression we use is - ‘it's hard to teach a man to fish when the fish are jumping in the boat’.” That’s not the fault of the salespeople. The industry went backwards during the pandemic and that’s what a lot of them were hired into. One of our challenges is to ‘untrain’ these people.”

Wye Management has a long history in the industry. In the 30+ years since the company was created, it’s trained over 15,000 salespeople and managers across North America. Training offerings include seminars and workshops as well as in-dealership consultations.

This breadth of experience gives Schulthies a bird’s eye view of everything that’s happening in the industry and allows him to refine his courses to stay current with the pace of change.

“The in-dealership work keeps us grounded. We make sure that what goes on in the classroom doesn't get too unrealistic or utopian, but is based on the challenges dealerships are facing today. We revise our courses weekly because almost every time we're delivering a workshop, there's been something added or deleted

based on what's happening in the current marketplace.”

One of Wye Management’s most popular courses is a five-day entrylevel sales programme that covers the entire sales process, from building leads to selling online. The company also has a range of workshops for more experienced salespeople who may need a refresher or are looking to add to their skills.

All courses have one thing in common - they all cover best ethical practices, with Schulthies using the ‘Grandma rule’ to drive home the importance of building trust: “The customer deserves a great experience at the dealership. Not necessarily to secure the business but simply because it's the right thing to do. Salespeople should be asking themselves, what if it was their grandma buying the car? How would that guide their business practices?”

Training your managers

Wye Management also offers a range of programs for managers, covering F&I, leading sales teams, and leadership in general.

The latter has become more of a priority among dealerships in recent years, according to Schulthies who says businesses are realizing that the old authoritarian leadership styles aren’t getting results with younger teams.

“Businesses are seeing high turnover and tracing it back to their leadership style,” he explains. “A younger workforce does not respond to the type of leadership that the car business provided 20 and 30 years ago. That’s created a wave of leadership training where managers have to learn different ways of leading their team and implement different styles for different people in the organization. We teach managers how to give feedback, how to coach professionally and how to establish what motivates people.”

Going further

It’s tempting to focus just on your salespeople, especially if you’re worried about your budget, but don’t forget about your other departments when it comes to training. Investing in other teams is just as crucial.

Aelick says: “Every department at a dealership is in sales to some degree. Being able to speak with confidence and knowing what you’re talking about is valuable. The service department may not be concerned with advertising regulations but they should be up to date on service intervals, maintenance and things like that. On the mechanic side, there’s lots of value in making sure they’re up to date on mechanical issues. With new car dealers, it’s easier because you’re typically only dealing with one brand but independent businesses need a much wider knowledge base.”

Service advisors are the most likely candidates for training, according to Schulthies who says these staff are usually technicians who have been promoted without any leadership training or sales experience.

“These people are highly skilled labour. They’re used to being under a car solving complicated problems so they're not necessarily comfortable leading teams or being customer facing. They often need just basic soft selling skills like making eye contact with the customer, smiling, getting

out from behind the kiosk and computer screen. They don't really see themselves as salespeople but they’re selling service.”

Now is the time to train

While the current economic downturn has Canadians opting for used cars rather than new vehicles, the outlook for the used car market isn’t entirely rosy. Supply chain concerns, inflation, and talent shortages continue to hamper the sector’s growth - making it the perfect time to double down on training.

Dealerships that train are dealerships that thrive. Training builds customer loyalty and boosts your brand which, in turn, improves profits and enhances competitiveness. It also significantly reduces staff turnover.

Schulthies explains: “The number one reason people leave jobs in the automotive sector is because they were promised training that never happened. Training is a retention issue and retention saves money. There is a cost to constant staff turnover. There's also a mountain of research that shows training increases sales per unit and gross profit. If salespeople sell more cars at higher gross profit, they earn more. So you have a happier workforce.”

A happier workforce means happier customers and, ultimately, happier dealerships that can reap the rewards of investing in their people over the long-term, through good times and bad.

For more on UCDA training, visit ucda.org. To learn more about OMVIC Automotive Certification, visit omvic.ca. For more information on the courses available from Wye Management visit wyemanagement.com ■

TECH TALK

By Angela West

HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS.

This winter, we’re all about safety. You can never be too careful on the winter roads, battling icy conditions, snowstorms, white-outs, and freezing rain. Drivers can’t just rely on their skills, they should also make sure they’re fully equipped for any emergency, preparing their vehicle before they hit the highways.

From portable batteries to deer detectors, we’ve got you covered. Browse our list of must-have safety tools so you can handle anything on the roads.

Plan for the worst

No-one likes to imagine the worst case scenario but planning for it can give you peace of mind that you and your loved ones are protected in case of emergency.

Small, budgetfriendly, and very portable, the Resqme Car Escape Tool isn’t just a keychain, it’s a lifesaver.

for military use, this is a seriously tough traction board that will never let you down. And you don’t need to be a military professional to use it.

Slip it onto your keys or attach it to your car visor, the 2-in-1 keychain contains a spring loaded piston that breaks windows and a covered blade to slice through seatbelts. It’s simple, but very effective - getting you out of the car in a dangerous situation when every second counts.

The keychain comes with a handy lanyard, visor clip, cable tie, and key ring so you can attach it wherever is most convenient. And it’s inexpensive enough that you could buy several so you have one for each vehicle or driver in your household.

Find out more about the Resqme Car Escape Tool at resqme.com

Escape the snow

Doing the seasonal switchover to winter tires (or investing in all season models) is a must as the cold weather approaches but even hardy tires can lose traction in deep snow.

If you regularly drive in rural areas or want to do some winter off-roading, high-quality traction boards are an essential item in your car safety kit. These sturdy boards slip under the wheels to give your tires purchase when moving through snow drifts. The uneven surface gives the wheels something to grip, providing enough momentum to get you moving again.

There are a variety of traction boards on the market but it’s worth investing in a high-quality pair like the MAXTRAX Recovery Board. Originally designed

The board has six built-in handles so it can be easily lifted, placed, and maneuvered under the wheel. Clear the snow around your wheel, wedge the board at an angle against the tread of your tire, gently accelerate - it’s that easy.

MAXTRAX boards stack together for easy storage when not in use and come with a bright orange leash so you can easily find and extract them from deep snow. You can also use the boards yearround - they work just as well in mud or sand so don’t forget to pack them for spring/summer road trips.

For more information on the MAXTRAX Recovery Board, visit maxtraxca.com

Take care of your tires

Getting stuck with a flat tire on a remote road, in bad weather, as night is falling. It’s every driver’s worst nightmare…unless you have a digital tire inflator in the trunk.

The Fortem Digital Tire Inflator is a compact tire inflator that plugs into your car outlet to quickly re-inflate your flat tire and get you back on the road. Plug it in, attach the hose to your tire, set the PSI, and turn it on. The display will let you know

when you’re good to go and there’s no risk of overinflating your tire as the device will automatically shut off at the desired PSI.

The Fortem is extremely portable, it’s small enough to tuck into a corner of your trunk and lightweight so it’s easy to grab in a hurry. The kit comes with a carrying case, an extra fuse, and three different nozzle attachments so it fits most standard tires.

For more information on the Fortem Digital Tire Inflator, visit gofortem.com

Bring your battery back to life

Dead batteries are just as annoying (and dangerous) as flat tires so don’t forget a jump starter when creating your vehicle emergency kit.

The next generation of lithium-ion chargers are designed to be highly portable, compact, and ready for emergency use so you can revive your battery without begging a kind stranger for help and getting tangled in jumper cables.

The GOOLOO GE4500 Jump Starter can get 12 V cars, ATVs, and SUVs started in seconds, giving a much-needed jolt to dead 10.0 L gas engine/ 8.0 L diesel engines. It comes in a hard shell carrying case and is lightweight and compact so it doesn’t take up too much trunk space.

With the GOOLOO Jump Starter, drivers can be confident that they’ll never be stranded. It can also charge smartphones, tablets and other devices to keep you connected on long trips. The powerful battery is good for up to 45 starts and works even in extreme weather, operable in temperatures as low as minus 20C.

For more information on the GOOLOO GE4500 Jump Starter, visit ca.gooloo.com

Watch your surroundings

Staying safe means staying alert. Make sure you don’t miss anything on the road - other vehicles, pedestrians, obstacles, wildlife - with complete visibility around your vehicle.

Dashcam technology isn’t new, but every year more sophisticated models hit the market. In 2024, the one to watch is Nextbase which has just released its latest iQ model, labeling it ‘the world’s first truly smart dashcam’.

This award-winning model has all the bells and whistles, from AI motion sensors to smart alerts. It’s packed with safety features including a voice-activated ‘witness mode’ which will automatically trigger the camera so you can record what’s happening in real-time.

Worried about the kids borrowing the car? With a Nextbase iQ you can contact them through your phone, talking to whoever is in the car within seconds. And you can set location and speed alerts so you’ll know instantly if your teenager goes off the map or hits the accelerator too hard.

If a driver becomes unresponsive during an accident, the Nextbase will automatically call emergency services. It can also send alerts directly to your phone if there’s any unusual movement around your car so it’s protected when parked.

For more information on the Nextbase iQ, visit nextbase.ca

Give your car a check-up

The FIXD OBD2 Scanner may look like a small white box, but it’s actually a pocket-sized mechanic that runs detailed diagnostics in just a few clicks. This handy gadget plugs into your vehicle’s ODB port to get a read on everything that’s going on under the hood.

Plug it in, start the engine, and download the app to bring up a report on your phone. The sensor reads over 7,000 engine codes, translating them into plain English so you can figure out why the check engine light is on and see whether it’s something you need to deal with urgently, or fix yourself.

Even if you’re not seeing any warning signs, the FIXD can give you peace of mind that your vehicle is in top shape before you take it out on long journeys on remote wintery roads.

The app can be customized to give you alerts when regular maintenance checks are due such as oil changes. The premium version of the app connects you to a mechanic for free quotes and professional advice.

For more information on the FIXD OBD2 Scanner, visit fixd.com ■

DEALER PROFILE

Neighbours and business partners at Two Guys

By Ronda Payne

2 Locations:

426 Merritt St., St. Catharines ON L2P 1P3

262 Bunting Rd., St. Catharines ON L2M 3Y1

BACK IN THE EARLY 90' s , THERE WERE PEOPLE

AT USED CAR DEALERSHIPS IN ST. CATHARINES, ONTARIO who told Gerry Newman that things were tough in the business. Gerry didn’t let that deter him.

He was working four days on and four days off in a city job, so worked on cars on his days off.

“I started fixing old cars and that’s what got me in this business,” he says. Together with his brotherin-law they started Two Guys Quality Cars in the Merritton region.

The name was simple and effective.

“I didn’t find [the business] tough, because I didn’t have any expectations,” he explains. “We took on a lot. But, I never wanted to do any more than I could afford to do and accomplish. I didn’t want to bite off more than I could chew.”

Two Guys Quality Cars

With full support from his wife Shelley, the business began when their family was growing. The couple had a four-yearold girl and new-born twin girls when Two Guys opened its doors.

Two years later, things were taking off in a big way. Gerry bought out his brotherin-law, quit his city job and kept growing. Although he was now “one guy” running Two Guys, that would only last about a decade or so.

The New Guy at Two Guys

Dylan McSpadden grew up in St. Catharines, and says that’s almost selfexplanatory for being a car guy.

“It’s a GM town. There’s a lot of car people around here,” he says. “As a child of the 70s and 80s, Hot Wheels was one of my favourite toys ever. I always liked cars.”

He had an entrepreneurial spirit too. His summer job during university wasn’t just a job, it was owning a business.

“I owned a couple of candy stores,” he says. “They were seasonal. Mostly summer traffic.”

While continuing to run those businesses after graduating, he sold a few cars on the side. He enjoyed the fact that his candy stores were all about talking to people, meeting tourists and getting to know them. These combined experiences translated into leaving candy behind and working in a GM used car department as a sales person.

“Then I go away for a weekend and I decide, after four years of that, that used cars maybe isn’t for me,” he says. “Then I got a phone call from an employee of Gerry’s from here at Two Guys and he said, ‘why don’t you come here and check it out’, and that’s probably 21 years ago.”

He says the family atmosphere, which was so different from the large dealership, is what drew him back into loving used car sales again.

“You know your customers, you chat with them differently,” he says. “I think it suited my way of chatting to people. It was more comfortable for me.”

A Vision for Growth and Taking Care of Customers

Dylan valued the vision that Gerry brought to the business. He saw Gerry’s profound love of cars and his desire to have others love, if not cars as a whole, at least the one they bought from Two Guys. Dylan started off as a sales person and brought his own take on things to the operation.

“We had one bank here that was a local credit union. Financing wasn’t really an option then,” he explains. “I was able to take what I’d learned at the big dealership and used that to bring financing here.”

About three years after Dylan joined the team, he and Gerry co-purchased a piece of land not far from the main lot on Merritt Street that has been home for all but six months of the business’s 33 years. On this new site, they ran a “value centre” for older cars that still had life but weren’t right for the main Two Guys lot. About five years later, Dylan purchased 50 per cent of the business to become the other guy who shared in the ownership of Two Guys.

In the early 2010s, they started providing auto servicing, which is definitely Gerry’s skillset.

“Gerry is hands-on and understands everything mechanically,” says Dylan. “I’m kind of the up-front person. I like meeting with people and managing the sale.”

With that balance, the garage began as a place to get cars they purchased lotready and to take care of any warranty claims, but it quickly became a source for the public to trust for the care and maintenance of their vehicles.

“We now have probably one of the largest independent service garages in the region,” he says.

Next to the garage is a showroom that holds upwards of 40 cars. It’s an indoor experience of the Two Guys buying process. Overall, they have about 210 cars listed online for sale with about 250 in stock.

Family is the heart

The team is about 20 or more, depending on which family members are working for the company at the time. And that’s one of the big differences about Two Guys. It really is a family environment. Not only are Gerry and Dylan business partners, but they are also neighbours.

“We can go a week or two without seeing each other, but we’re next-door neighbours, so we chit-chat when we take the garbage out,” Dylan says. “A lot of his grandkids go to school with my kids.” Family doesn’t end there. Like many

family-owned and operated businesses, Dylan says the entire team is a family, many of whom have been with the company for more than 20 years. Soon, Gerry hopes his daughter Stevie will assume his role in the business, but don’t expect a change to the organization’s name. He’s been going to work with Stevie for 10 years and describes her as a great asset, she’s already taken on more of his day-to-day responsibilies.

As are Gerry’s other direct family members. His wife Shelley managed the administration side of things, daughter Ginger is the social media coordinator, son-in-law Russell is a Class-A mechanic, sister Darla manages data entry and brother-in-law Erik is a detailer. Head detailer Keith has been with the company for more than 30 years.

“We have great employees. They’re all family,” says Dylan. “We don’t have very much turnover at all.”

This closeness within the team makes their processes easier to manage. Uncommon for a dealership their size, Two Guys gives sales people the tools and authority to run a one-touch system in sales which makes for a far more streamlined experience for customers. Other dealerships have a sales person show the car, then another person who discusses financing, warranty and other aspects.

“All our sales guys have training on finance,” he says. “They have knowledge of the warranties and the benefits. They also have a very good understanding of the market and what a car is worth.”

He wants the team to have that understanding because it was something he felt he was closed off from in the bigger dealership he worked for so many years ago. He also likes that customers know who to reach out to when they have a question about anything. It’s not a business that is confined to the nineto-five.

“You’ve gotta be passionate about serving your customers,” he says. “It’s a sevenday a week 24-hour business. Your cell number is on your business card.”

That means the dealership may be closed on Sundays but customers are still calling, texting and emailing.

The changing face of used car sales

He reminisces that the market has changed significantly over the years. The progression of technology has changed everything.

“Back in the day, I’d see 20 couples on the lot in a day and we’d get to chat face-toface,” he says. “Now I see half that amount and they’re coming from an email lead or from Auto Trader. We sell lots of cars and we never see them. We have a social media person on staff, that’s something I didn’t think I was going to see.”

Another change is what Gerry is focused on these days.

“I turned 64 this year and my goals are a big cushy backseat,” he jokes. “I’m looking to spend some quality time with my wife.”

He’s also taken on creative pursuits that have a unique and automotive edge to them. In fact, making the showroom functional, automotive-relative and interesting was a main project for Gerry when the pandemic hit.

“I have tried to create a fun and entertaining destination,” he says. “We have a sales desk that I made from two crashed Mini Coopers that has functioning doors and a hood that rises up under power and holds a full-size bar fridge then retracts on command.” One wall features a bright green Dodge Challenger that he split in half and mounted up off the ground to create a feature wall. Another wall holds half of a mini van that was a creative way to cover a giant water pipe. They’ve turned this area into a microwave and coffee station.

While things have changed in terms of how cars are bought and sold and Gerry’s focus, what hasn’t changed it the commitment to customers that extends to the community. Two Guys proudly provides sponsorships in community hockey, support for a race car and a big fundraiser for Big Brothers Big Sisters every year ■

THE COMMON LAWYER

Spring is nature's way of saying, 'Let's get down to business'

By Justin Jakubiak and Bree Pierce

AS WINTER FADES AWAY AND THE WARMTH OF SPRING EMERGES , it's the perfect time for dealerships to embark on a thorough spring cleanup. Beyond just tidying up physical spaces, this season presents an opportunity for businesses to review and refine their operations, ensuring compliance with regulations, optimizing employment practices, and updating employee policies.

By taking proactive steps in these areas, your dealership can enhance efficiency, mitigate risks, and foster a positive workplace culture. In my experience, this is particularly important in a changing and challenging economy –in the hunt for the ever-elusive dollar, best practices and training are often forgotten in an effort to squeeze the most out of every car, customer and

deal. It is up to the dealer principal and senior management to remind staff of the importance of best practices and compliance generally. A quick dollar is often a gateway to an expensive legal tango with OMVIC.

As a lawyer whose practice is occupied almost exclusively by dealers and dealer adjacent business throughout Ontario and Canada, I can attest to the fact that OMVIC is doing a spring cleaning of its own and targeting dealerships of all types (old, new, small, and large) to achieve wider industry compliance and consumer protection. Unfortunately, in the zeal of cleaning up the marketplace, many good dealers, salespersons, and dealer principals are getting caught up in the clean. I cannot stress enough, the best first line of defence to an OMVIC audit or mystery shop is often quality paperwork, considered policies and regular employee training. Investing the time to complete a thorough spring review will enable you to identify areas of risk, lost opportunities and potentially areas of slippage and loss.

Insurance Review

Begin your clean by reviewing your business insurance policies to ensure they adequately cover potential risks and liabilities specific to your business and location in Ontario. Consider consulting with your insurance broker

or lawyer to assess your current coverage and identify any gaps or areas where improvements are needed. Review your insurance deductibles and premiums to determine if adjustments are necessary to align with your budget and risk tolerance.

As a car dealership operating in Ontario, ensuring comprehensive insurance coverage is paramount to safeguarding your business against potential risks and liabilities. With the unique nature of the automotive industry, there are specific considerations that must be addressed to adequately protect your dealership. Let's delve into the essential insurance considerations for mid-sized car dealerships in Ontario:

1. Commercial Property Insurance:

Protecting your dealership premises, including the showroom, offices, and inventory, is crucial. Commercial property insurance provides coverage against perils such as fire, theft, vandalism, and natural disasters. It ensures that any damage or loss to your property is compensated, allowing for swift recovery and minimal disruption to your operations.

2. Garage Liability Insurance:

Car dealerships face inherent risks associated with vehicle ownership, including test drives, maintenance, and repairs. Garage liability insurance provides coverage for bodily injury and property damage resulting from dealership operations, such as accidents

involving test-driving vehicles or incidents that occur within the service area.

3. Commercial General Liability Insurance: This type of insurance protects your dealership against thirdparty claims of bodily injury or property damage occurring on your premises or as a result of your operations. Whether it's a slip-and-fall accident in the showroom or damage caused by a vehicle test drive, commercial general liability insurance offers financial protection and legal defense coverage.

4. Business Interruption Insurance: In the event of a covered loss that disrupts your dealership's operations, such as a fire or natural disaster, business interruption insurance provides compensation for lost income and ongoing expenses. It ensures that your dealership can weather the financial impact of unexpected disruptions and resume operations as quickly as possible.

5. Cyber Liability Insurance: With increasing digitization and reliance on technology in the automotive industry, protecting your dealership against cyber threats is crucial. Cyber liability insurance helps cover expenses related to data breaches, cyberattacks, and other cyber incidents, including legal fees, notification costs, and potential damages.

6. Commercial Auto Insurance: Given the nature of your business, having adequate coverage for your dealership vehicles is essential. Commercial auto insurance provides protection for

vehicles used for business purposes, including test drives, deliveries, and transportation of inventory. It covers liability for bodily injury and property damage, as well as physical damage to your vehicles.

7. Employment Practices Liability Insurance (EPLI): Protecting your dealership against employment-related claims, such as wrongful termination, discrimination, or harassment allegations, is crucial. EPLI provides coverage for legal defense costs and damages associated with such claims, helping safeguard your dealership's reputation and financial stability.

Employment Practices Audit

Next, conduct a comprehensive audit of your employment practices to ensure compliance with all of Ontario's labour and employment law and regulations. Employment law is constantly evolving and I strongly encourage all dealers to make a thorough employment review an annual event.

Review employee classification status (e.g., full-time, part-time, contractor) to ensure compliance with employment standards and tax requirements. Verify that payroll records are accurate and up-to-date, including overtime calculations, vacation accruals, and statutory holiday pay. Evaluate your hiring and recruitment processes to ensure they promote diversity, equity, and inclusion in accordance with Ontario's human rights legislation.

Train managers and supervisors on best practices for performance management, disciplinary procedures, and employee relations to minimize the risk of workplace disputes and legal claims.

Employee Policy Updates

Finally, take this opportunity to review and update your employee handbook or policy manual to reflect any changes in legislation or company procedures. Communicate any updates or revisions

to employees and provide training as necessary to ensure understanding and compliance.

Review policies related to workplace health and safety, and ensure they align with current public health guidelines and occupational health standards. Address any emerging issues or concerns within your organization, such as remote work policies, flexible scheduling arrangements, or mental health support initiatives.

Seek input from employees through surveys or focus groups to identify areas for improvement and enhance employee satisfaction and engagement.

Conclusion

In conclusion, by prioritizing insurance reviews, employment practices audits, and employee policy updates as part of their spring cleanup efforts, Ontario dealers can position themselves for success in the months ahead. By ensuring compliance with regulations, optimizing operational efficiency, and fostering a positive workplace culture, businesses can lay the foundation for sustained growth and resilience in an ever-evolving business landscape.

Consulting with an experienced legal advisor familiar with the automotive industry can help tailor customized solutions that meet your dealership's unique needs and provides adequate protection against a turbulent economy, an ever more domineering regulator, and other risks.

Justin is a Partner with Fogler, Rubinoff LLP and is recognized by the Law Society of Ontario as a Specialist in Civil Litigation.

This article is intended for general information purposes only and should not be relied upon as legal advice. Views and opinions are the authors alone and do not necessarily represent the views and opinions of the UCDA or Fogler, Rubinoff LLP. ■

IMPROVE YOUR DEALERSHIP’S ROI

By Angela West

FOR MANY DEALERSHIPS, CALCULATING ROI IS A SIMPLE EQUATION OF INVESTMENTS going in and profit coming out. But ROI is more than just balancing the books. It’s a series of strategic, data-driven decisions that can help your business become more financially resilient, more competitive and more profitable over the longterm.

But before you can start making those decisions, you need to first define what ROI looks like for your dealership. Every company has its own unique challenges so it’s worth taking the time to run a complete audit of your financial outlook, asking the following questions:

• What does investment mean in your dealership?

• What departments are getting most of your budget?

• Which departments are the top performers?

• What do you want your bottom line to look like in each department and the dealership overall?

This gives you a solid starting point to implement changes and transform your processes to minimize waste, maximize savings, and future-proof your business against disruptions down the line.

Strategies to help your bottom line

1. Eliminate waste by digitizing your operations

Maximizing profits always starts with reducing waste. No matter how tightly you run your dealership, there is always some fat to be trimmed. One of the key places to look is your day-to-day administration.

Dealerships handle a lot of paperwork. The dizzying pace of orders, appointments, follow-ups, sales, and HR requires a streamlined system to keep every department on track. If you haven’t digitized your processes, you’re tying up your staff in unnecessary busywork. Using the right tech tools can deliver significant savings in your time, resources, and budget.

Starting with the basics, this should include an integrated office suite such as Google Workspace or Microsoft Office. These two market leaders in this space offer a full range of applications from email and video conferencing to bookkeeping and data storage.

You’ll also want to make sure your financial (F&I) department is fully integrated with your office suite and has streamlined, secure payment processing solutions available so customers have more F&I options. Using these integrated apps allows for smooth and efficient customer processing across departments, enhancing the customer experience while making your workflows more efficient.

Once you’ve got the basics in

place, you may consider upgrading to additional add-ons, depending on your budget. These nice-to-haves include:

• Marketing platforms that allow you to schedule email campaigns and social media updates

• Onboarding software for new hires

• Reporting and analytics software to track online engagement

• An online sales platform

2. Targeted training

Your staff is one of your biggest investments. Reaping the rewards of that investment means strategically offering training that benefits both them and your business.

It’s tough to find talent in today’s market. Instead of wasting precious resources searching, interviewing, and onboarding new people, why not promote from within? Train your team to fill the positions that are vacant and you’ll keep both your employees and your bottom line happy.

Offer customized training based on the needs of those individuals who show promise. Assess who in your team is ready for the next step, leaning into their specific strengths to ensure they get training that will fill a gap in your organization. Need more people in your service department? Identify staff members that are interested and capable, then train them up.

Taking a proactive approach to career development is also a reliable way to attract more talent in future. If your dealership becomes known as a business that supports and promotes its employees, people will want to work there and you won’t have to search for good candidates - they’ll come to you.

3. Sell your services

For most dealerships, their biggest earner is the service and parts department. But they can also be the most costly, requiring a big investment in supplies and staff.

Get more from your service department by expanding its customer base, moving it online to capture a wider audience. Giving services a digital storefront can help you move obsolete parts, unwanted accessories and any unsold inventory.

If your service department isn’t performing as expected, it might be time to talk to your marketing team and reignite interest with targeted advertising and promotions. You may also want to schedule seasonal campaigns such as winter driving maintenance and prepping for summer road trips. These will keep momentum going year-round and draw in new customers who may not be familiar with all your dealership’s offerings.

And don’t forget to make more use of your secret weapon - your technicians. Offer these professionals sales training so they can help sell your services. Mechanics who know the basics of selling can do a lot to give your dealership more authority, offering customers expert guidance around what their vehicle needs.

4. Measure your marketing

You can’t improve what you can’t measure. Whatever you’re investing in your marketing, you need to make sure it’s paying off and that means tracking your audience and your impact.

Get up to speed with an analytics program that monitors your marketing performance over all your channels, from email blasts to social media campaigns. This will allow you to create a marketing and sales strategy that has

room to pivot when things aren’t working. You can tweak your approach in real-time, abandoning costly strategies that aren’t delivering results and instead directing your efforts into markets with the best returns.

Don’t make the classic mistake of trimming marketing budgets in tough times - sales do not happen without marketing. Instead, use your analytics strategically and put your marketing dollars into what is working, rather than cutting low

data. That data can be used to take the guesswork out of every business decision.

That’s why it’s important to take a data-first approach to every aspect of your business, not just marketing. It doesn’t matter what you’re measuring - customer satisfaction rates, product orders, seasonal appointments - if you’re keeping track of the numbers, you can identify the patterns or roadblocks that are affecting your bottom line.

6. Take care of repeat customers

These loyal buyers don’t just buy a vehicle and leave. They come back for service appointments and repairs. They bring their family when it’s time for their eldest child to get behind the wheel. They tell their friends about you. They leave good reviews on social media. In short, they are your unofficial brand ambassadors.

Boosting your ROI on these customers means rewarding them for coming back, so think about introducing loyalty programmes, offering special deals to them, or discounts for referrals. Even something as small as a customer appreciation event for these VIPs can boost your word-of-mouth sales for months.

Invest, prepare and plan

With the climbing price of new vehicles, Canada’s used car market can expect demand to stay strong through 2024. That doesn’t mean our dealerships can rest easy. Supply concerns, labour shortages, and a looming recession mean businesses need to prepare for tough times.

Dealerships that are focused

THE OLD CAR DETECTIVE

1931

CHRYSLER IN SAME FAMILY 66 YEARS

By Bill Sherk

BILL WILLMS WAS BORN IN 1937 AND GREW UP ON A FARM NORTH OF LEAMINGTON, ONTARIO , the Tomato Capital of Canada. Around 1957, he bought his first car, a 1948 Mercury 114 coach for $150 from Murray Myles, the local Mercury-Lincoln-Meteor dealership.

With his foot to the floor, Bill stripped the gears so many times he finally drove the car using only second and high. Then one day a wrist pin came loose and went right through the cylinder wall. The ’48 Mercury was scrapped and Bill bought a 1956 Ford Fairlane 2-door hardtop for everyday transportation.

But he wanted an older car as well and in the summer of 1958 on a visit to Kitchener, Ontario, he bought a Windsor-built 1931 Chrysler CM series six cylinder sedan for $30 (a whole week’s pay from the H. J. Heinz Company where Bill worked). He bought it from a young fellow who had bought it from the original owner for $125. A piston was missing from the

six cylinder engine so Bill had to tow it home, then got it running.

His 1931 Chrysler was the fancy version in the CM line with dual sidemounts in the front fenders and a detachable trunk at the back. Like other closed cars in 1931, Bill’s Chrysler had a fabric insert roof. It was one of the first cars to have a grille in front of the radiator, and the 1931 Chrysler grille, mounted at a slightly rakish angle, was particularly stylish.

In sharp contrast to the way he drove his ’48 Mercury, Bill resisted the temptation of driving his ancient Chrysler with the gas pedal rammed to the floor. Instead, he drove the car with the care and respect it deserved.

By October 1995, Bill’s Chrysler was nearly 65 years old and he had been driving it for 37 years. That’s when he took it to Carmen Paglione at Classic Collision near Leamington for some body work and new paint. He already had the engine rebuilt and the interior redone. The following spring, the car was back on the road with a dark blue body, black fenders, and cream spoke wheels and pinstriping.

Bill continued to drive his car around Leamington. By 2009 he had been behind the wheel for over fifty years, and if you divide the number of years into the price he paid for the car in 1958, it works out to less than a dollar a year.

In 2016, Bill began to downsize and turned over his 1931 Chrysler to his daughter Natalie and her husband Gil in nearby Belle River, who keep this precious family heirloom in a climate-controlled garage.

No doubt, the Chrysler dealer that sold this car new appreciated the business. And with Leamington in 2024 celebrating its 150th birthday, I’m hoping the local Chrysler dealer will invite Natalie and Gil to display Bill’s 1931 Chrysler in their showroom. I'm sure it would attract a lot of attention and may even help sell some new Chrysler vehicles!

PHOTO #1: The proud owner soon after buying this car in 1958. The whitewalls were painted on.

PHOTO #2: Bill Willms in 2016 with his three daughters Julia, Natalie, and Melanie.

PHOTO #3: Four generations on the running board: Bill, daughter Julia, her son Korry and father of great-grandson Dylan and great-granddaughter Karlin.

PHOTO #4: The keys are passed from Bill to daughter Natalie, the new owner with husband Gil.

PHOTO #5: Bill is probably keeping this picture of the car on his hat.

PHOTO #6: Bill with same three daughters inside the car! ■

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MANHEIM EXITS CANADA

By Ronda Payne

THE USED CAR WHOLESALE AUCTION BUSINESS WILL NEVER AGAIN BE WHAT IT WAS.

Watching vehicles roll along the live lanes of the auction floor, elbow to elbow with other buyers, was a rite of passage for most used car dealers, but this is no longer an option in most Canadian cities.

Iconic Manheim Canada, has undergone a shift in ownership and structure as the used car wholesale market continues to change. The movement from in-person auctions and hybrid models to more digitalbased platforms is perhaps expected, but still disheartening.

In early December 2023, Cox Automotive announced it would be ceasing operations of Manheim Canada, a leading automotive

remarketing organization. The last in-lane car auction from the company was held on December 12 in Toronto.

Openlane (formerly Adesa), a USbased used-vehicle wholesale operation focused heavily on technology-driven remarketing, acquired the company for an estimated $130 million CA. The deal closed on December 14.

Ultimately, the shift means fewer options for wholesale and auction

purchasing in Canada as Openlane adds the Manheim elements to its existing Canadian auction structure, which already has a strong foothold in the country. All Manheim Canada customer relationships have been transferred to Openlane.

“Less competition is never a good thing,” says James Hamilton, Executive Director with the Used Car Dealers Association of Ontario.

Details of the sale

Of the physical locations Manheim Canada operated, only the Montreal facility will be part of the Openlane Canadian portfolio as the company will move its Montreal operations to the former Manheim facility. Toronto, Vancouver, Edmonton, Halifax and Moncton sites weren’t part of the sale and operations from these locations will be consolidated into nearby Openlane centres. More than 65 team members, primarily from Montreal, have become part of Openlane. Staff will be integrated into existing Openlane locations.

Matt Trapp, Manheim RVP, East and Canadian Operations with Cox Automotive described the Manheim Canada sale as a difficult decision.

“After a careful review of our entire business in Canada, we decided the time was right to shift our investment priorities to align more closely with Cox Automotive’s long-term strategic plans,” he says. “While this was a difficult decision to make, we believe this was a positive opportunity for our

Canadian customers and employees, given Openlane Inc.’s strong presence in the Canadian market and remarketing industry.”

Cox Automotive will continue to have about 160 employees in Canada who will contribute to various aspects of the company’s global business. This includes assisting clients with US sales.

“This transaction [the sale of Manheim Canada to Openlane] does not impact any of our businesses outside of Canada,” says Trapp. “While we can no longer support dealers with their Canadian vehicle sales, we will continue to help clients with their U.S. remarketing needs through our 75 physical locations and digital channels.”

The up side

It is important to echo Trapp’s statement that the sale definitely represents some positives for dealership customers.

Because Openlane has a history in remarketing in Canada, it will be easy for the company to integrate their technology with former Manheim

Canada customers. This includes platforms beyond local auctions such as Openlane’s digital marketplace and existing logistics centres.

The company expects to launch the unified Canadian digital marketplace (which will bring all Canadian inventory together) in June 2024, which Openlane feels will improve dealer growth. Buyers will find more inventory options in a single platform while sellers will have access to a larger buyer base.

Openlane also expects that increased data will allow for customer buying insights that weren’t available previously.

Additionally, in a press release, the company states: “We are excited to introduce these valuable customers to our unique combination of innovative technology and personalized, local support. From AI-enhanced inspections, to flexible sale formats, to fast, reliable payment, ownership and reconditioning services, we’re

committed to removing the hassles of wholesale.”

Saying farewell to 60 years of history

The Manheim Canada Toronto location, which was the pillar of Manheim Canada, began as the Cooksville Auto Auction in August 1964, representing just a hair shy of 60 years of auto auction history. In those days, founders Ruth Hart-Stephens and Homer Stephens used the ice of the Dixie Arena in Mississauga as the auction floor once a week.

Obviously, the auction was a case of good timing as it grew to a new facility on 10-acres within five years. This move in 1969 came with a name change to Toronto Auto Auction (TAA).

TAA was sold and became Manheim Toronto in 1983. It moved west to Milton in 1989 where the site has 175 acres and a 14-lane facility. Ruth remained as VP of Canadian business operations for Manheim Canada until her death in 2007.

Manheim Toronto was the largest wholesale auto auction in Canada moving more than 120,000 vehicles through the lanes each year. It remained the foundation of Manheim with a long-standing history and comparatively, the other Canadian Manheim locations were relatively new.

Auction City, Halifax joined Manheim in 2006, with Auction City, Moncton in 2007. In 2008, Manheim Canada opened the Montreal location and established a new head office in Mississauga. The newcomers to the organization were Vancouver in 2015 and Edmonton in 2016.

These additions were important at the time as they represented Manheim Canada’s commitment to the national market. But all that’s come to an end. Perhaps in 1983 when TAA became Manheim Toronto, it felt the same way. Fingers crossed for a bright future of growth as was the case previously ■