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USED CAR DEALERS
ASSOCIATION OF ONTARIO
230 Norseman Street, Toronto, ON M8Z 2R4
Tel: 416.231.2600
Toll Free: 1.800.268.2598 web@ucda.org ucda.org
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ONTARIO DEALER
is published by Laservision Graphics Ltd. four times a year.
130 Industry Street, Unit 36, North York, ON M6M 5G3
EDITOR
Gina Monaco
Tel: 1.647.344.9300 or 1.289.456.4617 gina@ontariodealer.com
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DESIGN thrillhousestudios.com
CONTRIBUTORS
Connie Motz , Ronda Payne, Bill Sherk, Angela West, Lori Straus, Phoebe Wolfe
If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com
Lori Straus
Angela West
Angela West
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Members can enjoy discounted rates for Ontario lien searches, starting at $11.50 and going as low as $9.40. Competitors charge up to $35.00 for an Ontario lien search.
To see a full list of pricing please visit: www.ucda.org/lien-searches-and-registrations/
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By James Hamilton, Executive Director, UCDA
CAN ANYONE EVEN REMEMBER WHAT THIS INDUSTRY WAS LIKE BEFORE WE ALL WENT ONLINE? I’m just old enough that I do, but the memory is distant, quaint, like rose-colored memories of yore.
The UCDA is celebrating its 40th Anniversary this year, and in 1984 the world looked very different from a tech point of view than it does today!
Dealers: The reality is dealers are online because their customers are. Like many promises that technology makes, it presents challenges, but also many opportunities. Consider Dealer Management Systems (DMS) just for example.
Before the DMS was introduced, dealerships often operated with a lot more paper, or a hodgepodge of different operating systems and software. Staff needed to look in several places to retrieve customer information, look at service history, view appointment
scheduling, etc. The process was inefficient and often led to missed communications and issues falling through the cracks.
With DMS, software is bundled to work together supporting each area of your business. Your team members can access to all the information in one place, assisting with:
• Inventory management
• Service cycle support
• Customer management
There are downsides, of course, such as lack of integration and collaboration between departments; some systems are too cumbersome and complex to use; there may be no solutions to optimize processes. Yet, despite the challenges, it is safe to say DMS users are never going back to the old way.
Consumers: Online technology has transformed how consumers research their next purchase. This is not news to anyone, although the extent of it may still surprise readers.
As we have read in The Ontario Dealer Magazine, a consumer study done by Cox Automotive in 2022 revealed that 80% of those surveyed said they would prefer to purchase a car completely online. AutoTrader released a study, reporting that 80% of shoppers use online sources when purchasing a car.
Consumers now have access to a growing number of online showrooms, offering them a completely virtual retail experience with the option to book an in-person test drive or other appointment on their own time. Browsing for a car online can save
your dealership time and money and offers consumers the following:
• Convenience
• Wider selection
• Easier comparison
• Clear pricing
Government and Regulators: As all dealers know, everyone from the tax man to OMVIC are moving to online systems. Few dealers keep paper garage registers any longer, new hires are processed with OMVIC online and most of your interactions with everyone from the CRA to the MTO are digital. Even vehicle safety inspections are going digital.
It’s getting harder and harder for dealers to ignore this tidal wave of tech, the writing is on the wall, and it makes no more sense today to say “I don’t use computers” than it did 40 years ago to say “I don’t use the telephone”!
As the UCDA continues to expand its online presence and engagement on social media, that evolution will continue for us as well as we enter our 5th decade!
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 Technology and Your Dealership, so please enjoy the following articles in this issue:
1. 40 Years of the UCDA
2. Creating an Online Experience
3. Cybersecurity and Your Dealership
You can reach me anytime at j.hamilton@ ucda.org with any comments or suggestions for the The Ontario Dealer magazine!
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By Hetash Singh, Associate Legal Counsel
LIKE MANY CHILDREN, I ADORED
TOY CARS. I recall fond memories of racing around toy cars on the kitchen floor, much to my mother’s dismay. One day, while watching Saturday morning cartoons, I saw an ad for colour changing toy cars. The idea was simple. The toy cars could change colours depending on whether hot (red) or cold (blue) water was applied to them.
You could imagine my excitement when I found out that this colour changing capability is now making its way to real life vehicles. Toyota has recently filed a patent application for a paint finish with the ability to change hues in response to heat and light. The idea is that customers will be able to drive their vehicles into a garage equipped with “tunnelshaped heating elements” and a “light emitting colour modulator device” in order to change the colour of their vehicles without having to repaint or wrap them.
While the concept may sound simple, it has the potential to create dramatic changes in the car world. For one, the colour changing paint presents itself as an opportunity for an “up sell” to customers and allowing for a continuing cash flow each time a customer brings their vehicle in for a colour change.
Customers would pay a premium for a quick and easy way to change the look of their vehicle, much like you do when you go to the barber for a new haircut. Not only would this divert customers away from car wrapping services, but the technology would also provide an incentive to customers to pay more frequent visits to their local dealer and potentially have their vehicle serviced while they are there.
The technology also has wide implications for the marketability
of vehicles. Dealers could easily change the colour of a vehicle to suit the needs of a potential customer. Customers who opt for this paint finish may also have an easier time reselling their vehicles on the private market.
While the technology has its benefits, there are many unanswered questions that come with it. Can this paint finish be applied to older vehicles? How would vehicles coated with this special paint be registered? Would the owners be required to notify their licence office of the colour change each time the treatment was applied?
What impact, if any, would the application of this colour changing paint have on insurance rates and the cost of repairing a vehicle after it is involved in an accident?
Could criminals highjack this technology to change the colour of their vehicles to elude law enforcement?
While this new paint technology brings a breath of fresh air to the car industry, there may be some kinks and bumps along the way that must first be worked out before there can be widespread adoption. While I was ultimately unsuccessful in convincing my parents to buy me a colour changing toy car as a child, if all goes well, I may be in the market for a new vehicle. ■
From left to right:
Noel Robertson, UCDA's First President, Steve Peck, UCDA'S Third President and Doug Callowhill, UCDA's Second President & became UCDA's Chair after the appointment of Steve Peck
By Lori Straus
ACCORDING TO THE INSURANCE BUREAU OF CANADA, auto theft claims averaged $556 million each year between 2018 and 2021. In 2023, they topped $1 billion. By the end of 2023, the Toronto Police Service reported that over 12,000 vehicles had been stolen in the city, more than triple the number reported in 2014.
The UCDA, though, doesn’t need the stats to know our members are concerned. Auto theft affects their livelihoods, the safety of their staff and customers, and, ultimately, their health from dealing with this crime on a regular basis. That’s why we’ve been meeting with government and police forces on behalf of our membership to try and solve this problem.
Although Bob Beattie, the UCDA's first Executive Director, probably couldn’t anticipate such a pressing concern 40
years ago, it was for similar reasons that he and seven dealers created the Used Car Dealers Association: to act as one voice with the government and the public on creating a safe and transparent used car industry.
Just think about what has happened in Ontario’s automotive industry in the past 40 years: Ontario survived four recessions. OMVIC was created. The Motor Vehicle Dealers Act (MVDA) came into effect. The pandemic slammed our industry. Digital dealer registration became available. Five OEM factories opened. Curbsider fines doubled. And the UCDA’s membership grew from zero to over 5,000 dealers.
From OEM executives to government leaders to all of you, the used car and franchise dealers of Ontario, we’ve made progress that benefits us. Together, we can tackle almost anything, from the day-to-
day dealership operations to major crimes like auto theft.
“Bob Beattie had identified a need in the industry for an association that could speak on behalf of the industry,” said James Hamilton, Executive Director. “Individually, we could be ignored. Collectively, we cannot.”
As of August 2024, OMVIC reports that over 8,000 dealers have registered with them. The UCDA represents over 5,000 of those dealers in its membership.
In the beginning, though, the UCDA was a fraction of its current size.
The organization’s sixth newsletter celebrated a milestone—100 members!— but it had a long way to go.
Despite our small numbers in the
beginning, the first initiative the new organization lobbied on and won—already in 1984—was granting dealers direct access to Ontario lien searches. Even though everything was paper and phone in those days (Internet? What internet?), this made it easier for dealers to protect themselves from selling vehicles that came with undisclosed liens.
In 1989, the UCDA ran an initiative in Ottawa for an inventory GST credit for the used vehicle industry. The resulting 3.271% inventory credit resulted in $20-25 million being returned to used vehicle dealers.
And the list goes on.
“I remember meeting Bob Beattie clear as day,” said Frank Notte, Director of Government Relations for the Motor Vehicle Retailers of Ontario (MVRO). “It was November 2010. We were called the Toronto Auto Dealers Association back then. I was probably four or five months on the job, and I get this call out of the blue from Bob Beattie.”
Beattie invited Notte out for lunch, so Notte began asking around if people had worked with him before.
“Everyone had good things to say about him. He took me out for lunch to a golf course. He just wanted to get to know me. I left the meeting feeling welcomed to the industry.”
Having come from the Ontario Credit Unions Association, Notte was new to the automotive industry. Beattie made sure Notte felt comfortable enough to ask him anything.
“When I look back,” Notte said, “it was pretty amazing that someone of such stature in the industry would call up someone still wet behind the ears a little and get to know him. That spoke to who Bob was.”
Bob Beattie convinced many dealers to join, and many are still members today. Jerry Foster of the Foster Auto Group, a member for over 35 years, said
jokingly, “We joined because Bob Beattie and Warren twisted my arm.” They’ve remained a member because of the many benefits the UCDA provides.
“One of the benefits has been calling up Warren or Jim [Hamilton] if there was a legal problem,” Foster said. “They could give me a lawyer’s point of view on an issue was I dealing with. Made it easier to make a decision based on what they said.”
By the time of Bob Beattie's untimely passing in 2012, he’d initiated not only the organization’s frequently used free legal services, but had commissioned a curbside financial impact study for the provincial government, helped create Ontario’s first used car bill of sale, led the lobby on mandatory vehicle branding, and much more.
Beattie couldn’t have done this alone, and nor could the staff of the UCDA. It was thanks to the support of its members that these improvements could be pushed for and completed, and members have enjoyed the benefits ever since.
Bob Pierce carried the banner from Bob Beattie, having come to the UCDA by way of different roles in automotive. He’d worked as the registrar for the Province of Ontario, registering dealers before OMVIC existed. He’d also held a position with the New Car Dealers Association for a number of years. Pierce joined the UCDA in 2000, where he shared his talents as director of member services until 2023, when he passed away.
Everyone who knew Pierce well has a story to share.
In the early 1990s, Pierce worked for the Registrar’s Office with the province. At the time, part of John Heffner Jr’s responsibilities at the family dealership, Heffner Toyota in Kitchener, was to ensure that all their licenses were valid.
“Well, didn’t I forget to renew our dealership license one year,” Heffner says. “Technically, our dealership license
expired December 31st. January rolled around, and we’re not legal to operate anymore.”
So Heffner’s father, John Sr, called the government, got hold of Pierce and explained the situation.
“Bob thought this would be a really good training opportunity,” Heffner said.
Pierce invited both father and son to the government office.
“I’m shaking in my boots,” Heffner said. “Bob called us into his office, and he proceeded to let me know that by not renewing our license, I just put a whole bunch of salespeople out of work. And anybody that’s licensed to work at the dealership—our business managers, sales managers, whoever it was—they can’t work now.”
What Pierce didn’t tell Heffner was he had no problems rectifying the situation.
“He just let me sweat for a little bit. Which Bob did very well, by the way,” Heffner said with a laugh. “And then he finally said, ‘We’ll get this fixed today.’ We filled in all the forms then, and he turned out to be one of my best friends in the industry over the years.”
“Stories like that have been shared by many of that generation,” Hamilton said. “Bob was well liked, but he could be stern with how he ran things in the ministry. If he felt you weren’t doing something right, he’d call you into the office and tear you a new one.”
During his time at the UCDA, Pierce continued working to clean up the industry. Under his watch, the UCDA introduced the trade-in appraisal form so dealers could do their due diligence when a customer brought in a car for trade.
Similar to Beattie’s successful push for direct access to lien searches in 1984, Pierce helped secure online accident history access for its members. Since 2018, dealers have also had access to CARFAX Canada searches via the UCDA’s
search site.
CARFAX Canada President, Shawn Vording, congratulates the UCDA on its milestone: “CARFAX Canada is a proud partner of the UCDA and values our strong relationship that has developed over the past number of years. Together we continue to help dealers create transparency in their used cars transactions.”
Pierce, like Beattie, understood that a transparent industry would build trust with consumers and improve business for used car dealers. He began the UCDA’s consumer advertising campaign to educate them about the Motor Vehicle Dealers Compensation Fund, available to car buyers who purchase from an OMVICregistered (i.e., legal) dealer.
And to continue educating members on industry initiatives, legal matters, and industry news, he created The Ontario Dealer in 2013. This magazine has now been operating for 11 years.
Perhaps one of the most important benefits the UCDA offers is its ability to lobby the government on behalf of its members.
“The UCDA plays a pivotal role in Ontario
advocating and supporting used car operations,” says Vording.
“We need organizations like this that have experts in their particular field,” Heffner said. “I couldn't go to Toronto, have a meeting with Doug Ford, and just say, ‘Hey, I want to talk about the auto industry.’ It wouldn't work.”
The ability to search liens directly in 1984 was just the beginning. In 1996, the organization worked with the provincial government to bring OMVIC into being. This self-managing industry organization became responsible for monitoring dealer registrations, answering public complaints, bringing curbsiders to justice, and more.
By 1998, the UCDA had successfully campaigned for the vehicle branding program and introduced its' first used car bill of sale.
The vehicle branding program ensured that damage and ownership history were tracked so dealers and potential car buyers could find out if a car had had significant damage. This kind of government support protects dealers and their customers.
The bill of sale is another legal requirement for selling used cars in Ontario. Even if a car owner sells privately, they must create a bill of sale
and lay out the relevant details of the vehicle they’re selling.
In 2004, James Hamilton was able to secure a new dealer plate, unique for dealers, after years of effort with police, MTO and other stakeholders.
The UCDA also partners with other automotive organizations to further increase its lobbying position with the government. One long-term government campaign that finally came successfully to a close last year aimed to increase minimum fines for curbsiders.
“For the past ten years,” Notte said, “both MVRO and UCDA have been advocating together for tougher penalties on curbsiders. There was a bill in the legislature that was presented last year that had passed, that had increased the
minimum fine for curbsiders from $2,500 to $5,000. That was a major win for the industry. The mandatory minimum had not changed since the Motor Vehicles Act was introduced in 2002.”
Bob Verwey, President of the Owasco Group, that has dealerships in Pickering, Durham, Whitby, and Clarington, became a member about 20 years ago.
“We signed up because we’re in the used car business,” he explains. “And if you’re in the used car business, it’s good to be part of the package.”
One benefit Verwey enjoys is the UCDA’s newsletters. “The ‘Did You Know’ section: we read them all the time,” Verwey said. “We pass them on to our salespeople, to our managers, to everyone. It’s a big win.” They also like the articles on curbsiders.
He appreciates the time the UCDA takes in answering any questions. “Are we doing the right thing for customers? Can we do more? They always give us the right advice.”
Apart from the newsletter, the UCDA began The Ontario Dealer in 2013, created to further help educate dealers. In 2014, the organization began teaching the OMVIC certification course for new dealers and salespeople. In 2015, it established the Robert G. Beattie Memorial Scholarship, awarded each year
to two students entering their second year at the Automotive Business School of Canada at Georgian College.
And in 2019, the UCDA began teaching the MVDA Key Elements Course to provide a refresher to dealers, managers, and salespeople about their obligations under the MVDA introduced in 2010.
Because dealers can’t operate in the dark. Many rules govern their day-to-day operations, so the UCDA does its best to help with education.
Over the years, the UCDA has added services that help dealers in their day-today operations.
In 2008, NAPA came on board as a major member service. Stephanie Cooney-Mann from NAPA has worked with the UCDA for years.
“This is the largest used car dealers’ association in Ontario partnered with the largest auto parts supplier that has the largest number of auto parts stores in the province,” Cooney-Mann said. “Basically, we have stores in every city that can service the UCDA’s members.”
Dealers who carry NAPA products receive rebates. “Since the inception of our partnership,” said Brian Boksa, who’s now in charge of NAPA’s relationship with the UCDA, “we’ve handed out a total of $25
million in dealer-direct rebates. Those are based on purchase volumes that they’re giving NAPA stores.”
UCDA members also enjoy many perks from NAPA. Here are a few:
• strong promotional support
• tools to improve technician efficiency
• training programs
• dedicated salesforce
Speak with Dave Aelick, the UCDA’s Director of Member Services, for full details.
Cooney-Mann, on behalf of NAPA, congratulated the UCDA on reaching its 40th anniversary. “It’s a testament to what they do for the dealers’ network. We’re thrilled that we’ve been partners for all these years and hope to be partners for many, many more.”
The automotive manufacturing sector is estimated to be worth about $13.9 billion in Ontario, and the provincial government is pushing for growth. It wants to position Ontario as the North American hub for developing and building cars of the future, which right now means electrification.
Moreover, the sector is finally out of the shadow of the pandemic: Statistics Canada reports that sales of new cars plummeted to 91,508 units in January 2021. Although January is a seasonally low month for sales, 2021 was the lowest on record since 2020. January 2024 saw 116,874 units sold in Canada, and June 2024 saw 168,001 units.
That’s a lot of potential inventory for UCDA members, and the UCDA will be there to help you, our members, with the changes in our industry for years to come.
“Thank you for a great job for the past 40 years” Verwey said. “I’m looking forward to the next 40 years of the same great service.” ■
PEOPLES CHOICE WARRANTY (PCW) HAS LONG BEEN SEEN AS AN INDUSTRY LEADER in providing innovative extended warranties for the automotive field. Focused on bettering the warranty experience for both used vehicle dealers as well as their customers, PCW is now celebrating its milestone of 25 years in leading continuous warranty advancement.
Canadian-owned PCW has been on a remarkable journey – one that is poised to continue with just as much ingenuity, creativity and relationshipbuilding as the last two-and-a-half decades. Five years ago, PCW was acquired by PMI Alliance Group Inc., previously known as Prescience Management, and has undergone a positive evolution to meet the everchanging market demands now and into the future.
Guided by PMI Alliance Group, PCW's skilled team has not only adapted but thrived, even during the unprecedented challenges of the COVID-19 pandemic. Their dedication has ensured PCW’s position as a leader in the automotive extended warranty industry continued. Building on the company’s robust foundation PCW has dramatically transformed the warranty service landscape over the past five years. They were notably the first to introduce comprehensive battery coverage for electric vehicles (EVs).
Continuing to innovate, PCW has recently launched its marketdistinctive Leisure Protection Plan. This comprehensive program stands out by offering coverage for an extensive range of leisure mobility devices, both gas and electric, including golf carts, lawn tractors, motorcycles, ATVs, UTVs, sideby-sides, and electric bicycles. Unlike other offerings in the industry, which cover only a few devices at a time, PCW's plan encompasses all these devices under a single program, streamlining the customer experience and affirming PCW's stance to lead the industry.
PCW’s growth strategy is deeply rooted in forging partnerships that enhance customer experiences and expand the organization’s service capabilities. Strategic collaborations with Zymbyo and NAPA Auto Parts exemplify this approach. Zymbyo, an Ottawa-based firm specializing in high-quality digital marketing for dealerships, works alongside PCW to revolutionize dealership sales strategies by leveraging the latest tools that boost website traffic and engage customers more effectively.
Additionally, the alliance with NAPA Auto Parts, a reliable brand with a rich history spanning over 90 years and nearly 600 stores across Canada, marks a first in the Canadian market. This partnership between an automotive extended warranty company and a vast, nationwide network of repair facilities underscores PCW's innovative approach
to enhancing the customer experience and strengthening its market presence.
Transitioning from a traditional strategy to a more agile one emphasizing flexibility, rapid adaption and innovation has been crucial for PCW, complemented by its ongoing reinvention. The company is not only equipped to meet today's challenges but is also positioned to lead the industry into the future. As the automotive industry continues to evolve, PCW stays at the forefront, setting benchmarks and launching new products that set the standard for others in the extended warranty business. The journey of Peoples Choice Warranty over the past 25 years underscores the critical importance of embracing change and continuously striving to lead in an everchanging and challenging world.
Debbie Zettel, Senior VP of Sales Operations at People’s Choice Warranty, encapsulates the PCW vision perfectly: “Our aim is not just to survive in the new reality, but to thrive within it. Reinventing and re-engineering our processes, products and teams are crucial steps in turning our plans into action. We are committed to a mindset of continuous innovation, dedicating the necessary time and resources to ensure we are always at the forefront. Our approach to perpetual innovation has become the standard in our fast-paced, ever-evolving, and highly disrupted industry—an environment we recognize as our permanent landscape.” ■
By Angela West
DEALERSHIP OWNERS AND MANAGERS CAN GET FRUSTRATED WITH MARKETING EFFORTS that don’t have an obvious ROI. Posting on social media is one of those activities that spreads brand awareness, but doesn’t usually directly contribute to sales.
If you want to actively sell more with social media, there are two things to consider: adopting a video-first strategy and making lead generation a core Key Performance Index of your social media posts and social media marketing.
Organic (non-paid) social posts are suppressed to encourage ads
Organic social media posts rarely translate into sales, and that is by design. All of the social media platforms want you to buy ads. To get the ad results the platforms want, organic posts are suppressed so that they rarely show up in your buyer’s feeds - even if they are actively following your channels.
This commonly held belief among marketers is backed up by stats; as of July 2023, the social media platform Hootsuite reported that the average engagement rate of a Facebook post was just 1.52%.
This doesn’t mean you should stop posting. Organic social media is still excellent for brand awareness, which should be top of mind for any dealership. It does mean that you should use more videos, since they convert far more buyers than posts with just text and graphics.
It also means you should make sure that you are assigning the right amount of budget to ad campaigns on Meta. Facebook and Instagram still have the largest user numbers in older demographic groups, although TikTok is rapidly growing among younger adults.
Posts which tag other organizations or companies traditionally - when it comes to engagement - do better than posts
which don’t. If you are participating in or sponsoring a community event, tag the organization putting on the event and, where appropriate, your fellow sponsors. This will boost your engagement rate and attract more followers for your social media lead generation efforts.
Implementing a video-first culture at your dealership
Videos rather than pictures are the format of choice for social media, and you have all the tools you need to create good ones in your pocket. While you’ll need ancillary props like selfie sticks and smartphone stands to really move to a video-first strategy, these costs are minimal.
For important videos, such as ones being used in a campaign, shoot them with two different smartphones at the vertical and horizontal ratios so that you have video formats which are suitable for all channels. This will mean two people operating each phone separately.
For more casual videos, shoot them in vertical mode since you’ll be uploading these to TikTok, Instagram Reels and Facebook Reels.
As far as content, consider fun behind-the-scenes videos focusing on employees, as well as the expected listings of new vehicles. A video will be far more enticing to a new buyer than photographs and will give them more of a feel for the ride before they get into the dealership.
Get on TikTok, LinkedIn and YouTube
We’re going to assume that you’re on Facebook and Instagram, and are making good use of those channels with the exceptions of Reels - which your new videos in vertical format will be perfect for.
LinkedIn is necessary to post regularly if you want to spread the news about your dealership to other local business people, who coincidentally are also your personal vehicle buyers. LinkedIn posts can be limited to a couple of times a week, and can feature promos, community activities, and any information that may be useful for commercial vehicle purchasers.
YouTube videos are easy to embed in your website and emails, and can be randomly sent to anyone or used for social posts. YouTube also features a huge user base, and your YouTube videos can show up in local Google
search results. Additionally, many younger adults will view YouTube videos over traditional streaming services, which can make a small budget to boost your local promotions on YouTube a good idea.
TikTok is essentially the new Instagram. If you're not on it yet because you’re intimidated by it, you won’t be once you move to a video-first strategy. All of the things that do well on Instagram do well on TikTok - you just have to post them in vertical video format.
Start posting on Instagram Stories, Instagram Reels, Facebook Stories, and Facebook Reels
If you aren’t yet posting on all three of these sub-channels, start doing so. Older buyers will engage with Facebook Stories and Reels, where younger buyers will engage more with Instagram Stories and Reels. Ideally, post on these channels at least once a week. You can post video and images on Stories, and just video on Reels. If you’re adopting a video-first strategy, you don’t need to bother with graphics.
You do need to post to each manually or with Meta Business Suite in order to ensure that a link is inserted in each post; this takes a bit of extra time, but is well worth it to direct your prospects to a lead generation landing page which we discuss further below.
Once you have set yourself up on all of the necessary platforms, you’ll need to boost your followers. The best way to do this is - you guessed it - advertising. If you don’t want to commit a budget to growing your followers on TikTok or LinkedIn, simply follow other pages on LinkedIn in your community, and follow accounts that are in your geographic area on TikTok.
Previous marketers or agencies at your dealership may have purchased followers or otherwise “juiced” follower numbers by following random accounts on Instagram. Make sure that your following/follower ratio is optimized by unfollowing accounts that do not follow you. You should do this approximately once every quarter, coupled with new efforts to follow accounts in your geographic area.
On Facebook, the only way to increase followers is to consistently post engaging content and run focused, geographically targeted ad campaigns. While you can follow other pages with your page on Facebook, this typically doesn’t work to grow followers as well as it does on LinkedIn.
You’ve already won half the battle by adopting most of the above tips; growing your follower base in your geographic area and adopting a video-first strategy. Now, it’s time to make sure your efforts are converting into leads.
The first thing to do is to make sure you can measure success. Use Facebook Pixels (which also work for Instagram ads) on your campaign landing pages, and make sure conversion tracking is installed for any LinkedIn Ads campaigns. This way, you’ll be able to access reporting to see which of your ads are converting and which are not.
The second is to generate dedicated landing pages for each ad campaign which are not accessible from the
navigation of your website. The whole point of these pages should be to get the information of the potential lead, with a lead capture form being accessible right at the top of the page. You will also want to include a scheduling link to a tool such as Calendly so they can book an appointment with a salesperson and/or a test drive, especially with posts about vehicle listings.
Your Dealer Management System (DMS) should ideally be able to discern which page a lead is coming from, but failing that, you’ll be able to get the statistics for each page from Google Analytics so you have hard numbers on visits and conversions. On these pages, you should set conversion actions in Google Analytics to trigger when users submit forms.
Don’t make the mistake so many dealerships make and just direct social media ad campaigns to the contact page on your website, or a page for a new vehicle. With AI tools, it is easy to make individual landing pages which are created specifically for each campaign.
Your website is informational by nature, and user experience dictates that forms go at the end of a page, not the beginning. That script is flipped with a landing page; lead capture is the ultimate goal. You should also make sure that there is a checkbox for your leads to opt-in to your mailing list so you can continue to market to them long after the campaign is over.
A pure lead generation campaign will offer the prospect something if they fill out the form; an exclusive discount, a free keychain, whatever will get them in the door. Customer appreciation events can also be excellent lead generating opportunities, with campaigns designed to get potential buyers to come to an event.
All of your purpose-built landing pages should also be used for organic social posts as a part of the campaign, preferably with video shot in both formats.
While social media will never be an instant sales machine, it can easily become a lead generation machine that is much more “hot” than old-school lead generation methods. ■
HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS.
By Angela West
It’s time to clear out the clutter and get your vehicle organized and ready for fall and winter. These gadgets and apps will help keep your vehicle clean, stay on top of your preventative maintenance, and even help you figure out what that check engine light is trying to tell you.
If you have kids or pets, this is a musthave. Forget going to a coin-operated car wash and being stressed about the amount of time you have left on the clock, or using cumbersome hose attachments that are too large to really get in-between the seats. It sucks up wet and dry messes, making it ideal
for drink spills. You’ll get on top of the mess before it has a chance to go crusty and harder to remove. Plus, it is useful for more than your car - you can use it around the house and garage too.
This item and other small capacity wet/ dry vacuums are available on Amazon and at Princess Auto.
Trunk organizers are economical and can help you separate sports gear, groceries, and car maintenance items from each other. To maximize your space, look at getting a hanging organizer (if you own an SUV) and one that just sits on the floor of your trunk.
The following were selected in 2024 by Travel & Leisure Magazine as being the best in each category, and both are available on Amazon.
When looking for a trunk organizer, avoid ones with small compartments as these can be harder to clean and act more as trash collectors than anything else.
1. Overall Organizer:
K Knodel Sturdy Car Trunk Organizer
This organizer sits snugly against the wall of your trunk and includes a cooler section for your groceries or road trip snacks. The cooler bag is waterproof, and there are two other sections for your miscellaneous items. If you are just
looking at getting one piece, this is it.
2. Hanging Organizer:
Hanemia Car Trunk Organizer and Storage
This organizer is for open-concept trunks such as the ones you find in most SUVs. It hangs over the backseat into the trunk area, where it makes an ideal storage place for items you don’t need to reach regularly such as cables, cleaners, and other vehicle maintenance items.
This air compressor is compact and features a backlit digital display to make it easy to inflate your tires to the perfect PSI under any conditions. It’s small enough that it could be stored in a motorcycle saddlebag, so it won’t take up the trunk space other air compressors do. Fourteen-foot cables are stored in the body of the unit, making it simple to inflate tires and other items from anywhere.
It is available on Amazon, and you can find similar digital air compressors at any auto parts stores.
These apps will help you diagnose problems with your vehicle and plan for preventative maintenance.
1. Drivvo Drivvo was originally conceived as an app for small commercial fleet management, but it works just as well for one vehicle for personal use. Because it was designed for fleets, it is ideal for multi-vehicle households that need to keep track of upcoming maintenance, approximate times until common repairs are needed, and much
more.
Each vehicle can also register parking costs, insurance, fines, and other important data. Set reminders for oil changes, tire changes, and parts replacements so that you’re prepared for upcoming costs. You can even track fuel consumption and get detailed spending reports whenever you need them. The best part is that most core functions on Drivvo are free; the Pro version just limits ads and allows you to export data to .csv or Excel format.
In the world of apps that read data from an OBD2 scanner, there are only a few that have great reviews which look like they come from real people who have actually used them. This is one of those apps.
It does require the separate purchase of a Wi-Fi or or Bluetooth 4.0 (Bluetooth LE) OBD2 ELM327 compatible adapter. The app developer recommends genuine adapters as opposed to what they call “cheap Chinese knockoffs” which have caused issues for the app.
You can find these adapters at any major automotive parts supply store or on Amazon. To plug it into your vehicle, check your manual, but the port is usually under the driver’s side of the dashboard where the fuses are located.
Once that is done, you will be able to read basic data in the app in the free version and even more in the paid version. This app and those like it go far beyond just telling you what your check engine light means; they can provide valuable information on parts that may be about to fail, which allows you to budget in advance for your next mechanic visit. ■
By Ronda Payne
TORONTO BEST AUTO IS BUILT ON HONESTY, CREATING A POSITIVE OUTCOME AND THE DESIRE FOR PEOPLE TO APPRECIATE A GREAT EXPERIENCE IN BUYING A CAR.
Ozgur Polat is the quintessential Canadian immigrant. He left Turkiye with his wife, Esma and toddler daughter with $100 in his pocket and an outrageous volume of dreams for their future in Canada. He came with a plan and that led to opening Toronto Best Auto in Toronto in 2018.
As a child, born and growing up in Turkiye, he’d seen cars but they both fascinated him and concerned him. How did such giant, heavy machines start and stop? How could they be safe? His family didn’t have a car for him to examine and when he asked people to explain cars to him, he was told how to drive, not how the car actually worked.
Then, one day, he saw a motorcycle alongside the sidewalk and the engine was much more visible than that of a car. He could see that somehow the
engine made the tires turn, but still he had no concrete answers. He spent hours thinking about how engines made transportation possible and sometimes he couldn’t even sleep he was so preoccupied with his questions.
“I went to a technical high school, to the automotive section,” he says. “I really wanted to learn how the car operates. It was my dream as a little kid. My dream was this industry.”
So, in the summer months, while not in school, he would work in the automotive industry. He’d found himself a job where he could learn more about cars and apply his learning. He wanted to keep working and quit school, but his mother wouldn’t let him.
“I lost my father when I was nine. Back home, if you lose your parent, it’s not easy. I was thinking I had to work to help my mother,” Ozgur says. “I wanted to keep working. My mom, she wouldn’t allow me to work. I had to finish my studies. I could only work in the summer.”
After completing high school, the dream persisted. He went to automotive college, graduated and found a job as a mechanic with a Mercedes dealership in Turkiye. But not long after, he decided to move his small, growing family to Canada for a better life.
On the plane, he created his plan for their new life. He imagined he would work for a business for a couple of years to improve his English and learn about business in Canada. Then, he would start his own mechanic business and run that for about 10 or 15 years. Then, the plan was to use the money they’d saved from the mechanic shop and start another business.
There’s a saying about the best-laid plans, but as an immigrant devoted to his family and making positive strides in his new country, he exceeded the goals he’d set for himself.
“After one-and-a-half years, I opened up my own shop,” he says. “After 15 years of running the mechanic shop, I decided to open the dealership.”
It was his customers at the shop that convinced him to go into used car sales. He applied for licensing in 2017 and received approval in 2018. He opened with just 15 cars, but already had a lot of customers from his neighbourhood and the community.
“Thankfully, in the mechanic shop, I did very well. I’m a very honest person,” he says. “Everybody was pushing me. People needed cars, they were always asking me what dealership they should go to. My customers pushed me to open the dealership.”
He sublet a location on the same block as the auto shop and within the last six years grew to 120 or 130 cars on site. Now, he is growing again, having purchased the property next to the dealership and moving the mechanic shop in.
“Not exactly under the same roof, but right next door,” he says.
There are three salespeople and one detailer at the dealership and four mechanics at the shop, plus Ozgur. As much as he loves being at work and helping his customers, it definitely isn’t his sole focus. He and his family lived a very basic lifestyle to allow them to save money, grow the business and enjoy moments with each other.
“I have three kids. The oldest one, she is 24, the middle one 19 and the youngest one, 10 years old – a boy,” he says. I don’t need a billion dollars. I can’t buy the memories but I can create the memories.”
He purchased his home 13 years ago and over the years added a few toys like camping gear, snowmobiles, ATVs and more. This attention to his family came as a result of another business man who him gave strong words of caution. He’d told Ozgur that he’d spent too much time working and missed the time he could have spent with his family.
“That helped me a lot,” he says of the advice. “I try to work harder, to be a good father.”
Esma also supports him constantly. “She is always with me,” he says. She leads the way for how their family gives back. She volunteers at the local community centre to assist newcomers to Canada find their way.
“We also provide support to the Turkish community and also the Sick Kids’ hospital in Toronto,” he says.
The latter is an obvious organization for the family to contribute to because the couple’s middle child was hospitalized at about four years old
and Ozgur and his wife continue to be grateful for the care she received. He believes in supporting others and continues to help people both in Canada and Turkiye and admits to having a hard time saying “no” when he feels so blessed in his own life.
It all comes down to the support of his customers that has allowed him to create a great thriving business.
“Our main goal is to make our customer happy. It doesn’t really matter if they buy the car or not buy the car. When they leave, they have to be happy,” he says. “When I have a meeting with my guys – we have a meeting every second week on Monday after work for 2 hours – I’m asking them every meeting… Is
everybody leaving happy? I’m never asking them how many cars do you sell, how much money are we making? As long as customers are leaving our shop with good wishes, that’s the main thing we are looking for.”
This caring for customers has become a talking point online and customers are coming from outside of the local area, even outside of the province, to buy cars. It’s his honesty and the ability to put cars through the shop quickly that seems to make the difference. He offers a three-month warranty on almost all aspects of a purchased vehicle.
“If the customers come back… [with a repair need] in the short term, I’m losing some money, but I know 100% in the long term, I’m not losing, I’m gaining,” he says. “Legally, we are not responsible for making a radio work, but I’m making the customer happy.”
By having the mechanic shop, he can shift priorities to get a customers’ vehicle through faster or to complete a certification on a car a potential customer wants.
“People always need used cars,” Ozgur says. “If I keep my customers happy, they keep coming.” ■
By Justin Jakubiak
CHALLENGING ECONOMIC TIMES DON'T JUST IMPACT CONSUMER BEHAVIOUR, but often that of employees, agents and suppliers. While some will modify their behaviour to create new processes to maintain and increase revenue, others will employ darker tactics to maintain revenue – and in turn, as is the case for many commission-based dealership employees –their income level.
Commission income, and other targetbased sales incentives, can be phenomenal motivators, but are also, without appropriate controls and safeguards, the root cause of many of the auto industry's worst behaviours.
Among my dealership clients, I have seen a sharp increase in problematic employee behaviour over the past
several months. The following are just a few examples:
• Tied selling: The practice of advising a consumer that they will only qualify for financing if they purchase an additional after-market warranty or a vehicle protection package.
• Non-disclosure of material facts: Such as failing to disclose a vehicle's former status as a daily rental, its prior accident history, or the nature and cost of prior repairs.
• General misrepresentations: Such as providing incorrect information to a lender about a vehicle's trim level or features to support an increased loan amount, often to accommodate large negative equity.
• Creation of false documents: False loan applications, false insurance documents, false consumer satisfaction surveys (for manufacturer incentive programs), and false warranty paperwork, to name a few.
Some may comment that the above are fairly typical and prevalent in the industry, regardless of good or bad economic times. While I don't completely disagree with this statement, I would say that the proliferation of this behaviour has been on the steady rise, and the behaviour is being seen among a greater scope of dealer employees; not just salespersons – but members of the service department, business office as well as management.
In addition to the above, I have seen an increase in some 'super bad' behaviour that I would describe as much less typical of the industry. Recently, one of my client's photographers effectively stole a vehicle that two elderly clients wanted to sell to the dealership as they no longer needed it. The photographer used his position of trust at the dealership to effect both the theft and a subsequent sale. The unsuspecting purchaser believed that he was purchasing the vehicle from the dealer, with all the associated benefits and protections one gets by dealing with a licenced dealership… only problem was my client didn't know of the sale and didn't receive any of the sale proceeds! The poor sellers received a small fraction of what their vehicle was worth from the photographer, again believing they were dealing with a trusted and reputable dealership. Fortunately, my client learned of the theft and was able to make both the
vendors and the purchaser whole. The photographer is no longer employed, OMVIC has been made aware of the incident, as have the local police.
I must slash and sell this inventory to meet target…
I have experience with this next scheme from both sides… from the side of the dealer who has had a significant amount of inventory sold to other dealers below retail and, in some cases, even below wholesale cost, by an opportunistic salesperson; and from the side of the purchasing dealership who has received an angry demand letter.
This scheme is often the result of improper conduct by a rogue and under-supervised salesperson, or a more senior salesperson or manager whose seniority allows their deals to come under less scrutiny. Oftentimes the purchasing dealership is part of the scheme by paying a cash incentive to the salesperson for each value-priced vehicle purchased, in addition to the vehicle's selling price.
One established dealer had more than a million dollars of new inventory sold to other dealers for significantly less than their retail value, resulting in hundreds of thousands of dollars of losses. Unfortunately, the dealer principal, fully trusting his team of highly dedicated and senior staff, didn't notice that the fraud was occurring for several months, which allowed the losses to accumulate.
How did it happen? A new salesperson, but a family member of a long term, senior and trusted member of the franchise dealer's management staff, was selling vehicles to a handful of Toronto dealers for too good to be true prices and was accepting bird dogs in exchange. The employee got away with it for months because no one, including the dealer principal, suspected him given he was related to one of the dealership's most trusted employees.
The last dealer targeted fraud I will highlight is where an established dealer is promised easy money. It's never easy.
Several clients have been approached by other dealers seeking to 'join forces' with them to obtain access to the dealer's finance portal and additional lenders as a result. The approaching dealers promise to do all the heavy lifting, and to pay a few hundred dollars for each completed transaction.
Sometimes this works out great, and it is a perfect marriage; but too often, the deals are problematic and imbued with fraud – fake ids, untruthful employment information, non-existent vehicles and sometimes loan applicants who are no longer alive.
My latest client-victim is a long time OMVIC registrant with an excellent history. Nearing retirement, he has been slowly winding down his business and saw this as an ideal opportunity to earn a bit of extra income with little to no work on his part. Before entering the business venture, he reviewed OMVIC's website and saw that the people he would be 'partnering' with were OMVIC registered with seemingly clean registration histories.
Unfortunately, and due to his trusting nature, numerous deals were processed through his portal that should not have been. Lenders have come knocking and want many of the deals to be purchased back. Unfortunately, the transactions were for expensive vehicles and the banks are looking to recover hundreds of thousands of dollars.
A big part of my role as counsel is helping dealerships recognize the signs of potential fraud. Having management staff who are well trained is the first step in preventing fraud at all levels and in all forms. Here are some common indicators:
• Behavioural Changes: Employees exhibiting unusual behaviour—such as excessive secrecy, changes in work habits, or high levels of defensiveness— may be engaging in dishonest activities.
• Financial Irregularities: Discrepancies in financial records, such as unexplained cash shortages or unapproved expenses, should be closely examined.
• Lifestyle Changes: Rapid changes in an employee's lifestyle, such as acquiring expensive assets, may signal that they are living beyond their means due to fraudulent activities.
• Complaints from Customers or Vendors: Frequent customer complaints regarding financial transactions can hint at fraudulent behaviour.
•Increased Absenteeism: Employees committing fraud may take unexpected sick days or use vacation time irregularly.
While it is impossible to completely eliminate the risk of fraud, dealerships can take several proactive measures to minimize it:
1. Implement Strong Internal Controls: Establishing and enforcing strict internal controls - such as dual signatures for transactions and regular audits - can significantly reduce the risk of fraud.
2. Conduct Background Checks: Perform thorough background checks during the hiring process. Knowing an employee’s past can help mitigate future risks.
3. Encourage Reporting: Create a company culture that encourages employees to report suspicious behaviour. Establishing anonymous reporting channels can help employees feel safe voicing concerns without fear of retaliation.
4. Regular Training and Awareness Programs: Regularly educate employees about fraud, its impacts, and detection methods. Awareness can create a vigilant workforce.
5. Fraud Risk Assessments: Conduct periodic fraud risk assessments to identify vulnerabilities within the organization and address them proactively.
6. Utilize Technology: Implementing advanced software and analytics can help identify unusual patterns in financial transactions, flagging potential fraud for review.
7. Create a Clear Fraud Policy: Documenting a clear written policy regarding fraud, along with consequences for dishonest behaviour, helps to deter potential fraudsters.
Fraud, maybe now more than ever, is a critical issue for businesses in Ontario and across Canada.
By understanding its indicators and implementing preventive measures, dealerships can protect themselves against financial losses and damage to their reputation – as well as repercussions with OMVIC. These issues not only affect company finances but can also damage workplace
morale and reputation. It’s crucial for dealerships and dealer principals to recognize the indicators of employee fraud and implement effective strategies for prevention.
Continuous vigilance, education, and robust internal controls are key to creating a fraud-resistant workplace culture.
Justin is a Partner with Fogler, Rubinoff LLP and is recognized by the Law Society of Ontario as a Specialist in Civil Litigation – most importantly, he loves cars and the automotive industry, representing auto clients throughout Canada.
This article is intended for general information purposes only and should not be relied upon as legal advice. Views and opinions are Justin's alone and do not necessarily represent the views and opinions of the UCDA or Fogler, Rubinoff LLP. ■
Angela West
DEALERSHIPS DEAL WITH PRIVATE PERSONAL DATA EVERY DAY, SUCH AS DRIVER'S LICENCES , social insurance numbers, and financial information. This can leave them vulnerable to cyberattacks. Generally, a dealership doesn’t have the proper in-house personnel to protect against cyber threats, and a third-party company is usually contracted to implement measures and keep customer data safe.
The second part of a cybersecurity plan is cyber insurance. The measures that are taken either in-house or by a thirdparty company have to be in line with what the insurance company requires from you as a policy holder. We talked to Shawn Ram, Head of Insurance at Coalition, about cyber insurance and what, exactly, a dealership should include in their cybersecurity plan.
OD: Why does a car dealership need cyber insurance?
Shawn Ram: If the massive, twoweek outage that affected the US
software provider CDK Global proved anything, it’s that a cyber incident can substantially impact any industry of any size. The shutdown negatively impacted over 15,000 car dealerships, stopping sales. Eventually, sources such as CNN reported that CDK paid a nearly $25 million ransom to restore its operations.
As the global cost of a data breach increased 15% over the last three years to an average of USD 4.45 million, it is clear that an attack can cause insurmountable costs for any organization, especially a small or family-owned business.
Cyber insurance can be extremely helpful in reducing the financial and non-financial impacts of cyber incidents. For example, Coalition found in its most recent Cyber Claims Report that ransomware claims frequency was up 15% from 2022 to 2023, and severity was up 28%, to an average loss of more than $263,000. But, when Coalition policyholders found it reasonable and necessary to pay a ransom, Coalition
helped them negotiate demand amounts down by an average of 64%. As ransomware payments hit $1 billion globally, ransomware severity for Coalition policyholders actually dropped by 54%.
In fact, 52% of all matters reported to Coalition in 2023 were handled without any out-of-pocket payments by the policyholder. Additionally, Coalition policyholders experienced 64% fewer claims than the industry average, determined using market frequency data reported by U.S. insurers to the National Association of Insurance Commissioners (NAIC).
Cyber insurance has provided material value to situations like CDK. Cyber insurance commonly covers security failure as well as systems failure of third parties that lead to business interruption. This is a scenario where an insured’s third-party vendor experiences a cyber attack or has a systems outage, resulting in the insured experiencing downtime. The coverage, commonly
referred to as dependent business interruption, is designed to cover lost income and the extra expenses incurred to recover from a partial or complete interruption of a policyholder’s computer systems.
Importantly, cyber insurance does more than just protect your business in the case of an incident. It also works to assess existing cybersecurity postures, inform organizations where they need to improve existing protections or add new ones, and help them mitigate threats before they can escalate.
OD: What measures does a car dealership need to take to maintain cyber insurance?
Shawn Ram: For car dealerships to secure cyber insurance or potentially lower premiums, they need to enable multi-factor authentication for email access and all remote access to their network. They will also need an endpoint detection and response (EDR) tool, ideally a managed detection and response (MDR) technology. Larger dealerships should also have a fully managed 24/7 security operations center (SOC). They will also need operational backups stored fully offline, and they need to test these backups frequently to ensure their ability to restore data.
Specific details of pricing and policy limits will depend on the types of information the dealership holds, such as the volume of records it stores, whether it offers financing, etc. For example, larger companies are more likely to face more attacks due to their publicity and threat actors’ belief that they hold more valuable information or can more easily pay a ransom.
Threat actors specializing in specific types of data will target different companies. For example, threat actors specializing in credit card theft are more likely to target e-commerce businesses than healthcare. However, threat actors will ultimately target any business with personally identifiable information
(PII), including social security or credit card numbers. Both these types of data can be resold on the black market relatively easily. Threat actors are also more likely to launch cyber attacks against a business with old, outdated, or missing security controls than a welldefended company.
OD: What happens if the dealer needs to make a claim?
Shawn Ram: Businesses have been conditioned to be judicious in what they report under other types of insurance policies out of concern for substantial costs, increased premiums at renewal, and other repercussions. With cyber insurance, timely reporting can be the deciding factor in whether a matter develops into a costly claim and in fact, Coalition has pre-claims services to help organizations before an incident can escalate and necessitate a claim.
With Coalition, we have an around-theclock hotline and recommend calling as early as possible to potentially avoid a claim altogether. Our team typically responds within 5 minutes after reporting. Coalition’s in-house claims team takes immediate action, helping an organization navigate the response and recovery process, with the goal of helping an organization mitigate financial and operational losses due to cyber risk. During this process, policyholders have access to our claims team and a panel of incident response experts, including privacy attorneys, breach coaches, forensic specialists, incident responders, and security engineers with decades of experience combating cyber incidents across all industries.
The coverage a cyber insurance policy provides is highly variable based on the insurance company. In general, though, cyber insurance covers:
Costs associated with a data breach: Insurance typically covers data loss and recovery fees. It usually covers breach response and reputation repair
services as well, such as consumer credit monitoring and data breach notifications.
Computer forensics costs: In the event of a data breach, insurance covers the costs of hiring a forensics expert to investigate the source of the cyber incident. It also typically covers the costs of containing and consolidating the forensic findings.
Legal fees: Cyber liability insurance covers any legal fees associated with hiring a privacy lawyer or breach response counsel, regulatory fines, and judicial fees. The insurer typically also provides lawsuit assistance should this be necessary.
Business interruption costs: Insurance may cover the costs of revenue lost to a cyber incident-caused interruption.
Extortion costs: Most cyber liability insurance plans cover the costs associated with cyber extortion events.
Equipment repair or replacement costs: Cyber liability insurance typically covers costs associated with equipment damaged in a cyber incident.
As the frequency of cyber incidents and the costs of data breaches continue to grow, a number of factors determine an organization’s unique risk and how much cyber insurance it may require. Larger organizations with more sophisticated and complex networks and more data will require more protection.
With the sensitive data you’re handling every day, you can’t afford to have a substandard cyber security policy or be without cyber insurance. While managed IT costs can be a significant expense, the cost to the business for a data breach is much, much higher. Make sure you’re protected with both cyber insurance and a cyber risk management plan. ■
By Bill Sherk
THE PHONE RANG. IT WAS JOHN MCNABB CALLING WITH EXCITING NEWS! He had just purchased at a car auction in Cookstown, Ontario, an Oshawa-built 1932 Pontiac Special Sedan, the same car John sat in at his dad’s repair shop in Gilford, Ontario, in 1982, when John was only eight years old. His dad was giving it a valve job and John turned the engine over for him. The car at that time was owned by
John Bucko of Cookstown, Ontario, and owner of Cookstown Auto Wreckers, which closed down last March after being in business for well over forty years.
It is very fitting that this 1932 Pontiac now belongs to John. He attended high school in Alliston, Ontario, and drove to school in a ’69 Pontiac with only 33,000 miles on the odometer. He was known in high school as “the Pontiac Guy!”
John’s 1932 Pontiac is the Special Sedan with dual side mounts and curtains in the back windows so you can change into your bathing suit in complete privacy from prying eyes.
With the passing of John Bucko, the 1932 Pontiac was put up for auction as part of his estate sale. Three special friends helped John to get the Pontiac. John Loveless (who owned the Model A roadster in the first photo) told John about the auction. Steve Fox (son of Ross Fox) helped with the online auction. And Craig Fox (Steve’s brother) hauled the Pontiac home for John to Tory Hill, Ontario, after the auction.
Elliot’s Towing in Alcona Beach on Lake Simcoe reportedly obtained the car from the original owner, who may have lived in Stroud. The odometer shows 36,000 original miles. With the publication of this story, we hope to learn the name of the original owner.
John bought the car at the auction from John Bucko’s estate on July 1, 2023. He had already tried three times earlier to buy the car without success. It is all original with maroon finish and black rims and will stay that way.
The car is still virtually rust-free, strongly suggesting it was never driven in winter. In fact, the car has no heater, again strongly suggesting no winter driving. And if it was sold new in Toronto, there would likely be evidence of road salt but none of that is on this car. It was probably sold new at a Pontiac-Buick dealership in Barrie.
We hope to enlist the help of members of the Barrie Historical Society to learn the name and location of the Pontiac-Buick dealer in Barrie in 1932. John says that owing to the Depression, the car might not have been sold new in ’32 or even ’33. He knows of a ’29 Chevrolet that remained at the dealership until it was finally sold in 1932 and the dealer registered it as a ’32 Chev!
John McNabb’s 5-passenger Special Sedan was the most expensive Pontiac built in 1932 at $1179 (“All prices Oshawa factory list”). It was even sixty dollars pricier than the 4-passenger convertible coupe with rumble seat at $1119.
Long before John bought his ’32 Pontiac, he was so proud of that car, his friends told him: “That should be your car.” The dream has now come true! And if cars could talk, it would say: “John, glad to have you as my new owner!”
PHOTO #1:
First photo of 1932 Pontiac taken by John McNabb in 1991. He bought this car 32 years later.
PHOTO #2:
1932 Pontiac for wedding of friends in 1992.
PHOTO #3:
John as chauffeur at wedding in 1992.
PHOTO #4:
1932 Pontiac on its way to John’s home in 2023.
PHOTO #5:
John keeps his 1932 Pontiac well polished now at home. ■
ACCORDING TO A REPORT BY STATISTA. COM, THE GROWTH POTENTIAL of the Canadian used car market is poised to reach $80.2 billion by 2028. To be successful in this competitive industry, you’ll need a strategic approach to up your game. So the question is, are you ready for this?
By consulting leading industry authors and fellow long-standing UCDA dealers, we’ve come up with top tips and advice to help empower your success in the Canadian used car business.
Elevated Customer Satisfaction & Relationships Are Crucial
We all know that a lack of customer service can be the death of any business, but it’s especially true in today’s tech-savvy world. Let this thought from business tycoon Jeff Bezos sink in for a moment:
“If you make customers unhappy in the physical world, they might each tell six friends. If you make customers unhappy on the internet, they can each tell 6,000.”
Does your dealership have a customer service policy? It’s important to have a starting point outlining the specifics of what’s expected of your employees, including detailed procedures regarding customer interactions. Do you offer
staff training in customer service? Just because a salesman seems personable doesn’t mean he has skills when it comes to dealing with a rude or demanding buyer.
Customer experience and relationship building are key to success in the used car business, states Chris J. Martinez, best-selling author of Driving Sales: What It Takes to Sell 1,000+ Cars Per Month. He advises to examine approaches to enhance the customer experience, including:
• personalized sales interactions
• transparent pricing
• vehicle history information
• post-purchase support and services
• fostering long-term customer relationships through loyalty programs and referral incentives
Joël Paquette, General Manager of New Sudbury Volkswagen, a third-generation family-owned business, shares his thoughts: “The car business is about relationships. Take the time to listen to your customer, understand their needs, and be attentive to them. Follow through on promises, be genuine, and do what you say. When you build rapport with a customer in this way you open the door to a lifelong relationship and repeat business.”
Award-winning Wellington Chrysler Dodge Jeep Ram has been operating in Guelph, ON, since 1940. Their General Sales Manager, Josh Wood, agrees that it’s imperative to have “An unrelenting commitment to customer satisfaction through transparency and strong communication/interaction,” as well as “a timely and transparent sales process in which the client feels confident in their purchase. Thus resulting in positive feedback through surveys and reviews and cultivating a strong referral clientele.”
Advice from Hugo Fernandes, Sales Manager of time-honoured Azores Auto Group in Toronto, ON, reiterates the importance of customer service by saying, “Be honest and transparent with every customer. Resolve issues as quickly as possible if they arise.”
Nick Moretti, General Manager of long standing family-run Parkway Auto Trade in Milton, ON, sums it up nicely by saying, “Take pride in getting to know your clients, and know them well.”
The 2023 Canada Customer Service Index Study by JD Power concurs that dealerships making customer satisfaction a priority are rewarded with increased sales and higher retention rates.
And as Bill Gates kindly reminds us, “Your most unhappy customers are your greatest source of learning.”
Establish a Niche Market
Here’s another question for you, does your used car business have a niche? If you’re trying to sell a variety of vehicles to a variety of customers, you might be setting yourself up for failure as you just can’t please everyone all of the time. But if you take the time to really understand your target audience and establish a solid market niche, it will help to secure both new and repeat business.
“TAKE PRIDE IN GETTING TO KNOW YOUR CLIENTS, AND KNOW THEM WELL.”
Case in point. Six or seven years ago, Parkway Auto Trade decided they needed to adapt to the market despite having been in business for decades. They put a lot of time and effort into finding a niche marketplace to stay on top of the competition, which led them to a strategy of selling niche vehicle types - commercial vehicles, and more specifically, 3/4 ton trucks. With 6 employees and a typical inventory of 50 vehicles on their lot, a good following of tradesmen now gravitate to Parkway Auto Trade as they know they’ll be getting value and a wellinspected vehicle that can be relied upon.
Moretti takes a lot of pride when he says, “Parkway Auto Trade methodically puts more effort into buying than selling vehicles. Of the hundreds of vehicles we blanket North America to purchase, we will only buy three or four.” He went on to explain that Parkway scrutinizes their purchases, and vehicles must meet key points, including condition, desirability, and value while noting that only those vehicles with top grades and exemplary CARFAX reports will be chosen. “If the
cost of a truck from Calgary, factoring in shipping and all expenses, makes it cheaper to buy out of province, that’s what we’ll do,” states Moretti. Whenever a purchased vehicle arrives at Parkway Auto Trade, it immediately goes through a visual and mechanical inspection, which helps ensure quality control and their business reputation.
A 2023 report by Canadian Black Book confirmed growing consumer desire for niche vehicles, including fuel-efficient models, and a well-established market segment for SUVs that dominated 40% of vehicle sales. Besides specialized vehicles, Max Zanan, President and CEO of MZ Dealer Services, wants dealers to identify niche services that make them stand out from the competition, What are the "why buys" for your dealership? For example, do you offer a Lifetime Warranty on all vehicles sold at no cost to the customer?” Capitalize on whatever makes your dealership unique.
Providing vehicles that your customers want at the right price can be challenging, but it’s also one of the most vital decisions that can make or break your business. So, are you taking a proactive or passive stance when it comes to procuring vehicles? What’s your dealership’s used car acquisition policy? If you’ve answered everywhere and anywhere, you could be on the right track.
Don’t be stuck in an auction-only approach to procuring vehicles. Zanan asks a simple but thought-provoking question, “Does your dealership have a vehicle acquisition strategy to buy vehicles directly from the public instead of an auction?” Depending upon negotiations between the seller and dealer, private-party acquisition can be a lucrative option to add to your used car inventory.
Available for Android or Apple, the Accu-Trade mobile app, coupled with a Bluetooth OBD-II scanner to detect
diagnostic issues, can provide a datadriven dynamic appraisal within a matter of minutes. Simply scan the VIN, take a few exterior and interior photos, and you’ll be provided with a real-time evaluation you can use to help acquire vehicles no matter your setting or location.
“Sourcing the right inventory at the right time is important (and challenging) as customers will travel far for the right used vehicle. Looking to your service department and lease portfolios for quality used vehicle inventory can be a great way to source cars that may be in short supply in the marketplace and set your portfolio of inventory apart,” states Paquette. With 28 employees, New Sudbury Volkswagen maintains a preowned inventory of 25 to 35 vehicles.
Fernandes reminds dealers that, “Having the right cars in stock - cars that can be sold quickly - in addition to having the right team with the right process,” is key. Taking the time and money to invest in building a solid dealership team, and providing ongoing training, helps to provide a client-centric experience that can be successful on both sides.
Martinez offers the following suggestions, “Explore tactics for effectively managing inventory, including sourcing quality used cars, optimizing pricing strategies based on market demand and competitor analysis, and implementing efficient inventory turnover processes.”
Since a 2022 study by the Canadian Automobile Dealers Association concluded nearly 70% of buyers finance their used car purchases, it’s important to offer consumers competitive financing options with reputable lenders and to consider providing flexible in-house financing solutions for subprime borrowers.
Zanan suggests also looking into dealership finance and insurance profitability by asking the following
questions, “How strong is your F&I department in terms of product penetration and PVR (per vehicle retailed)? What F&I products does your dealership offer? Are these products reinsured?”.
Along with adaptable financing options, used car shoppers also see huge value in buying certified pre-owned vehicles, which can provide peace of mind and more closings. The same goes for thirdparty extended warranties, which are profitable for dealers, but also appeal to consumers seeking a sense of security.
Don’t underestimate the power of digital marketing, having a professional userfriendly website, and establishing/ maintaining an online presence. Why?
A CARFAX Canada publication identified that more than 90% of car shoppers start their research online.
To meet this digital demand, Paquette proposes merchandising your inventory properly by using, “High-quality photo sets; walk around videos; and engaging descriptions that will get more customers
Another study by AutoTrader.ca uncovered that 78% of used car buyers visited an online automotive marketplace an average of 15 times before arriving at their final purchase decision, so it’s vital to engage virtual shoppers from the get-go. Wood proposes. “An appointmentbased culture in which customers are interactively engaged through video, photo, and phone inclusive of electronic communication (text, email) with the goal of building strong rapport and value.”
Martinez infers that dealerships need to “discuss strategies for leveraging digital marketing channels such as social media, search engine optimization (SEO), and online marketplaces to increase visibility and attract potential customers to your used car dealership.” Pay-per-click marketing (PPC) is a popular targeted approach where dealers can select demographics and keywords to reach qualified consumers online.
In addition, dealerships can embrace their online presence and social media by curating intriguing content that offers a combination of educational tips and tricks, and customer testimonials to back up what you’re saying. Don’t forget about using online marketplaces and traditional marketing outlets like radio and print ads to further promote your dealership. Providing community support or sponsorship is an integral way to solidify your dealer’s invested connection to your city or town.
Many back-of-house activities also need to be taken into consideration when it comes to maintaining a sustainable strategy in the used car business. This can include but is not limited to:
• Ensuring your dealership is current with all Ontario regulations, safety inspection, and licensing requirements
• Embracing technology by using both dealership and customer relationship management software, as they can produce sales strategies and identify areas that need improvement
• Offering various promotions for customers, such as seasonal winterization packages or spring wiper changes, as well as referral incentives and loyalty sale campaigns. Giveaways for oil changes or maintenance packages are still good old-fashioned ways to get customers in the door
• Respecting and/or incentivizing all employees, as everyone wants to feel that little wow of being recognized as a hard worker
• A commitment to using only highlyskilled and trained staff to conduct repairs and/or inspections, for safety, legal, and ethical reasons
No matter how you look at it, the Canadian used car marketplace can be challenging but at the same time, there are plenty of opportunities to be had. By adopting some of the above expert advice into your business model, you can help set up your dealership for long-term success. ■