The Ontario Dealer - Volume 10 Issue 2

YOUR CONNECTION TO ONTARIO’S USED CAR INDUSTRY

THE ONTARIO UCDA

VOLUME 10, ISSUE 2

THE OFFICIAL MAGAZINE OF THE USED CAR DEALERS ASSOCIATION OF ONTARIO

PLUS DEALER PROFILE: Jim Bray /18

> INSIDE: ALWAYS BE RECRUITING: FINDING THE RIGHT SALESPEOPLE /10 DOES THE DEALER MATTER? SELLING TO GEN Z /12

SUMMER 2022

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VOLUME 10, ISSUE 2

USED CAR DEALERS ASSOCIATION OF ONTARIO

Summer 2022

230 Norseman Street, Toronto, ON M8Z 2R4 Tel: 416.231.2600 Toll Free: 1.800.268.2598 web@ucda.org

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By Joanne Walsmley

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Always be Recruiting: Finding the Right Salespeople

10

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

Does The Dealer Matter? Selling To Gen Z

By Catherine Morris

12 Dealer Profile: Jim Bray

05 07 15 18 22 24 26

The Driver’s Seat Warren Barnard

The Law Matters Jim Hamilton

Tech Talk Angela West

Dealer Profile Ronda Payne

Trends Chris Chase

Old Car Detective Bill Sherk

The Common Lawyer Justin M. Jakublak

By Ronda Payne

ADVERTISING SALES Direct: 416.360.0797 Office: 647.344.9300 Advertising Inquiries Shannon Coleman slk.coleman@yahoo.ca 647.269.4191

PHOTOGRAPHY photosbypierce.com

DESIGN thrillhousestudios.com

CONTRIBUTORS Chris Chase, Ronda Payne, Bill Sherk, Angela West, Joanne Walmsley, Catherine Morris If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com

18 Why Every Dealership No Matter How Small - Needs a CRM

By Angela West

29 The publisher of The Ontario Dealer reserves the right to turn down any advertising or content submitted to it. The Used Car Dealers Association of Ontario and the publisher accept no responsibility for claims or statements made by advertisers in this publication or by the independent authors of articles appearing in this publication. All statements and opinions appearing in this publication are those of the writers themselves and are not to be construed as reflecting the position or endorsement of the Used Car Dealers Association of Ontario or the publisher.

PUBLISHER’S NOTE Due to supply chain issues, it has been a challenge to source paper since the beginning of COVID. Because of that, our magazine has been forced to reduce the number of pages, as well as reduce the number of issues from four per year to three.

The final issue this year will be the October/ November issue. We hope that we can go back to four issues per year in 2023.

Thank you for your continued readership and your support.

VOLUME 10, ISSUE 2 | 3

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THE DRIVER’S SEAT Inventory Woes Continue

By Warren Barnard, Executive Director, UCDA

I DON’T WANT TO JINX ANYTHING,

but after two years of pandemic shutdowns, COVID finally seems to be winding down, at least as far as the severity of cases is concerned. Society has, for the most part, come to terms with the fact that we will need to learn to live with this virus and try to get back to carrying on with our normal lives.

Aside from the tragic deaths and illnesses that COVID caused and the disruption to all of our lives, the lingering effects of the pandemic on the economy will be with us for years, perhaps decades, to come.

No industry has been affected more than automotive sales, including, as everyone reading this knows only too well, the used car side.

Microchip shortages led to long wait times for the purchasers of new vehicles. Many turned to the used market to obtain vehicles, and the demand quickly outnumbered the available supply, as few daily rentals, off-lease and trade-in vehicles were entering the market place. This has meant crazy high prices and inventory shortages in almost all ages and categories of used vehicles.

buyers right at the dealership. Imagine being able to avoid sometimes lengthy and frustrating trips to Service Ontario offices!

The recovery back to a normal market will undoubtedly be slow and frustrating. Pricing and inventory levels may take well into 2023 before they approach levels of normalcy again.

If you’re interested in becoming a Digital Dealer, or for more information, please email dealerships@ontario.ca

Of course, government services were also deeply affected by the pandemic, with many Service Ontario licence offices closing down or at least reducing hours of service to dealers.

This really brought home the pressing need for Ontario to finally implement a long-talked about digital vehicle licensing process.

I’m happy to say that the Digital Dealer Registration (DDR) program is now off the ground in a testing phase with about 20 new car dealerships across the province. DDR is a joint initiative of the Ministry of Government and Consumer Services and the Ministry of Transportation. When implemented, it will allow eligible dealerships to complete vehicle registration transfers and issue plates and plate stickers to

By the fall, it’s expected that the Ministries will announce the next steps in rolling out the project to more dealers and making used vehicles eligible. Right now, it’s being tested on new vehicle sales only.

In addition to our regular features like The Law Matters, Tech Talk, The Common Lawyer and The Old Car Detective, I know you’ll enjoy reading our featured stories in this edition of The Ontario Dealer, like: • Always Be Recruiting • Does the Dealer Matter? – Selling to Gen Z • Why Every Dealer, No Matter How Small, Needs a CRM So let’s all enjoy a safe and heathy summer and hope that the inventory crunch starts to loosen soon.

As always, you can reach me anytime at w.barnard@ucda.org with comments or suggestions about the magazine. ■

VOLUME 10, ISSUE 2 | 5

If you sell motor vehicles in Ontario you must be registered with OMVIC Registration with OMVIC helps to maintain a professional motor vehicle sales industry Motor vehicle sales in Ontario are regulated. So, all motor vehicle dealers and salespeople must be registered with the Ontario Motor Vehicle Industry Council (OMVIC) before entering into any form of discussion or negotiation with a potential buyer, seller or lessee of a new or used vehicle, even if the salesperson is not signing the deal. It’s the law.

OMVIC registrants have access to benefits such as a dealer support team, guidelines, resources, educational webinars and can promote their Certified in Automotive Law and Ethics (C.A.L.E.) designation.

To learn more about registration, visit omvic.ca and click the dealer/salesperson tab to access free resources including information on: • How to become a registrant • Fees and classes • Maintaining your registration OMVIC’s registration team can help you through the registration process. For more information, contact registration@omvic.on.ca or call 1-800-943-6002.

THE LAW MATTERS Astroturfing resort had to take the one star on the chin, and potentially see their overall rating decline, because this keen observer of nature had determined that the sea can be a noisy neighbour.

It’s a good example of how this whole area can be very unfair to businesses generally.

By Jim Hamilton Legal Services Director

WE’VE ALL SEEN THEM. Well maybe

not “all” of us, but most of us these days, who spend any amount of time surfing on the internet ocean. You want to buy a car, take a vacation, order flowers, the list is endless, but it often starts with us doing a modest amount (or even a heck of a lot) of online research. In the process, we will inevitably come across consumer “reviews”. These are of some limited value, but they are irresistible. We ALL read them.

One reason I like them is because they are often hilarious. I remember one time, years ago, I was researching a hotel in the Barbados to take the kids to. This particular property was right alongside a beach, and long before COVID, we could dare to dream to visit there. One reviewer saw fit to give the resort a dreaded “one star” review. The reason? The waves crashing on the beach kept her awake at night. The

It’s easy to laugh and roll our eyes at silly reviews. The angry ones can get very irate and personal, tossing out words like “crooks”, “scammers”, “thieves” and use the kind of language that in the old days would get you a punch in the nose. Ah, but the good ones, those precious consumers who take the time to tell us all about why they gave you 5 stars, they are the bread and butter of internet commerce. Commerce means money, and money means there is an incentive to try to ‘game the system’.

The “system”, of course, is governed by some giants in the tech field including Google, Yahoo, Facebook, Apple and so forth, and many businesses have complained about the hold these companies have over their futures and their fates. Some businesses fight back, post replies to unfair reviews, argue with people when necessary or complain to hosts like Google to get untrue posts taken down. In some noteworthy cases, some businesses even resort to the courts, with mixed results.

Other businesses try to fight back in other, less honest ways, by ‘salting the core’, a disreputable mining practice where gold or other precious metals are artificially added to core samples

turning worthless ore into something that looks like the mother lode.

In the internet world this kind of practice is called “astroturfing” and it involves salting your online presence with 5 star consumer reviews that praise you, your staff, your products, your pricing ... its all very helpful to your bottom line. It’s also as fake as a three dollar bill and quite illegal.

Dealers need to avoid this practice at all costs, and not just because OMVIC is watching. We all are, and most of us can spot these fake reviews a mile off. How? Well, first of all, it’s always suspicious to see someone post effusive praise about any business, or am I just cynical? Maybe I am, but I read them carefully and when I see that person only has one review on the platform, or little to say about their experience, or it looks like a lot of other 5 star reviews on the same site, as a user, I call “bullsXXt”.

So does the Canadian Competition Bureau. https://www.canada.ca/en/ competition-bureau/news/2022/03/ five-star-fake-out.html Posting fake reviews can be part of an organized effort by companies to boost their own ratings or lower their competitors’ ratings. Companies may encourage their employees to post reviews, they might give customers incentives to leave positive reviews, and they can even hire a firm to post fake reviews for them.

VOLUME 10, ISSUE 2 | 7

Consumer reviews often strike at the heart of a consumer’s buying decision.

Shoppers trust that these reviews are from real customers, just like them. Posting fake reviews online can damage that trust and seriously erode consumer confidence.

who have only recently created a user profile or have been providing positive feedback on select products or services over a short period of time. These reviewers may work for the company and they may be getting reimbursed for posting fake reviews.

And the scope is wide -- if you shop online, you’re a potential victim.

So, here are some ways to help you recognize, reject and report fake reviews and protect your pocket book.

BEWARE WHEN A REVIEWER SAYS, “IT’S THE BEST EVER!!!”

How to recognize fake reviews:

SUDDEN SPIKE OR DIP Watch out for a sudden spike in very positive reviews or a sudden dip in very bad reviews. Are the reviews spread over a considerable amount of time or are they compressed in a very short period of time?

NEW REVIEWER Be on the lookout for reviewers

Don’t always trust reviews with an overly positive or gushing tone, especially if the review does not offer specific details about why it’s so good.

If a review claims a service or product is “the best ever,” the review may be fake.

AND BEWARE WHEN A REVIEWER SAYS, “IT’S THE WORST EVER!!! ” You also shouldn’t always trust very negative reviews. These could be fake reviews from a competitor, discouraging shoppers from buying one product or service and suggesting another.

5 STARS! When a company has only 5-star reviews, that’s a red flag. Every company, no matter how good, is likely to have a few negative reviews.

DOES THIS SOUND FAMILIAR? Watch out for multiple different reviewers using the same language to describe how good or bad something is. Some companies provide scripts to reviewers with suggested phrases and key words. Be cautious if you see the same buzz words coming up over and over again in reviews.

Whatever else you think about the practice, it is hard to argue that it is not a deceptive business practice and, as such, it can lead to action by the Bureau who rather ominously suggest: “If you believe you have come across fake online reviews, report them to the Competition Bureau.” ■

ONE OF THE FIRST AUTO SHOWS IN THE CITY Car shows have a long history as we can see from this 1912 photo – even showcasing an electric car. These events offered the newest models and provided an opportunity for community members to socialize. This one was held in an armoury.

Photo Courtesy: City of Toronto Archives

8 | THE ONTARIO DEALER

FREE DEALER PLATE REGISTRATION NOT FREE IF YOU PAID IN ADVANCE Why Is the Ministry of Transportation Not Refunding Dealer Plate Fees for Plates Set to Expire After March 13, 2022?

By Angela West BRAD REDFORD, manager of long-time UCDA member The Car Line, was doing his due diligence when he renewed his dealer plates on March 9, 2022. While his plates weren’t due to expire until March 19, he thought he’d get a jump on things and renew them since he was already there doing other transfers.

While he was at ServiceOntario, he asked if they had received any guidance about dealer plate renewals, since individual plate stickers were going to be free to renew beginning March 13. As of March 9, there had been no guidance given to ServiceOntario, so the management told him he should probably get those plates renewed.

with a satisfactory response from the Ministry of Transportation.

The response he received was that it was an issue with ServiceOntario, but ServiceOntario has referred him back to the Ministry of Transportation. He has filed numerous complaints with both organizations, but ultimately believes that the buck stops with the Ministry. Brad stated that his local ServiceOntario location has been extremely helpful and he does not blame them for the situation at all.

He has also contacted Doug Ford, his local MPP, the Ontario Minister of Finance and the Ontario Ombudsman. He’s become a champion for the issue, because to him it is about the principle rather than the money.

“I'm not looking for a charity or a gift here,” Since the staff at Brad’s ServiceOntario he says. “I feel that a lot of dealers don't in Brighton had always been highly competent and on top of any new directives, even realize that this happened.” he took that answer as being the right He believes that the whole issue could one. Since dealers weren’t receiving any have been avoided if the Ministry of retroactive refunds for their plates - which Transportation had provided better Brad had no issues with - it made logical guidance to ServiceOntario, and if they had sense that they also may be charged for started implementing the change much dealer plates going forward. sooner in the system.

Brad was surprised to receive an email Not a call for a refund for plates prior to a couple of days later from the UCDA March 13, 2022 advising that all dealer plates would be free to renew past March 13, 2022. Doing what Brad wants to make it very clear that any reasonable business person would do, he is not expecting or advocating for a he set out to get a refund on the plates he retroactive refund for non-individual plates had paid for which weren’t due to expire similar to the refund given for individual until March 19. However, his repeated plates. All he wants is his $350.00 in fees requests for a refund have not been met

that would not have been collected from him had he walked into the ServiceOntario office just a few days later for his plates, which were due for renewal on March 19.

Warren Barnard, Executive Director of the UCDA, has this to say about Brad’s plight: “The plate itself was not due for renewal until March 19th. Why wouldn’t the government registry system simply reject the payment outright? It shouldn't have been subject to a fee.”

“Because it was the Ministry's mistake, they should be refunding this dealer and any others out there that were in the same boat.

And while I don't have other examples of dealers that had that same issue, I imagine there must be some, because I'm sure lots of dealers went in a few days before their licence plates expired to renew them.”

Brad has talked to other dealers who have also paid for plates between January 1 and the March 13 expiry date. When contacted on background for this article, other dealers have stated that they simply didn’t renew based on their uncertainty around the situation. Essentially, those who played by the rules paid for something they didn’t have to pay for, and those that waited on guidance did not have to pay the same price.

Response from the Ministry of Transportation "Thank You for your inquiry via our Social Media channels. As past communications have indicated refunds are only being sent out to individually owned passenger vehicles, light-duty trucks, motorcycles and mopeds.

As the ministry has responded numerous times on this request, the ministry considers this case closed and will not be providing additional response. Thank you."■

VOLUME 10, ISSUE 2 | 9

ALWAYS BE RECRUITING | ANGELA WEST

ALWAYS BE RECRUITING: FINDING THE RIGHT SALESPEOPLE

By Joanne Walsmley

NO MATTER THE PRODUCT OR SERVICE A COMPANY SELLS , it is well known that

the sales industry has an incredibly high turnaround rate when it comes to staff.

In fact, some studies suggest the average annual turnover rate in the sales sector is 20% and further, that 51% of salespeople are looking for a new role within two years.

Considering these statistics and how losing sales staff can negatively affect the morale of a sales team, revenue, and the business itself, it is critical for sales managers to be proactive. That is to say, instead of simply finding a warm body to fill a vacancy when someone resigns, sales managers need to constantly be on the lookout for new recruits. Experts recommend sales managers spend about 15% - 20% of each week in recruiting activities. Doing so will assist a sales manager in building a pool of qualified candidates willing to come on board when the right opportunity becomes available.

Understanding and accepting that recruiting activities are an essential and ongoing part of a sales manager’s job is the first step towards building a pool of potential salespeople. And ensuring the sales manager makes engaging in those recruiting activities an ongoing priority will assist in building a strong candidate pool and ultimately a stellar sales team.

But who should the sales manager be looking for to add to the candidate pool?

What skills and personal qualities make for a good salesperson in the used car

10 | THE ONTARIO DEALER

sales business? Where might a sales manager find potential candidates?

What can be done to attract potential candidates? Some of the following can be helpful in the search for used car salespeople.

C. Look to the past. Perhaps, past employees were not successful in a sales position. Determine why.

For example, identify the key skills, experiences, or insights they lacked in order to be successful.

What hard skills are needed for a salesperson in used car sales?

D. Identify any gaps that might exist in the current sales team. For example, has an employee with specific skills unique to them recently resigned? If so, what are those skills that are now missing from the team? Or identify the skill strengths exhibited by current team members in order to assess what other skill strengths are still needed.

For example, a great prospector and a strong closer are in place but the team lacks someone who is analytical and good at identifying market trends.

One part of building a pool of qualified candidates is to identify the hard skills a person must possess in order to be a successful used car salesperson. Hard skills can be defined as the specific technical knowledge and training required to be successful in a position. For example, to be a competent mechanic an individual needs to know how to operate specialized tools and diagnose problems in a variety of vehicles.

Identifying the hard skills needed to be a competent used car salesperson can be done in several ways including the following.

A. Get together with co-workers and use the group’s combined knowledge, background experiences and insights to brainstorm a list of skills an ideal salesperson should have.

B. Examine business short-, mediumand long-term goals and then determine what skills a salesperson should possess in order to help meet those goals.

E. Work with colleagues to create a job description for the role of salesperson.

That is, describe what you are looking for a candidate to do. This description can often assist in identifying certain skills required to be part of a winning sales team.

What soft skills are desirable in a used car salesperson?

Just as it is helpful to identify the hard skills a competent salesperson of used cars needs, so too is it helpful to identify the soft skills needed. Soft skills are those that can be described as personal characteristics – people skills or interpersonal skills for example.

ALWAYS BE RECRIUTING | JOANNE WALSMLEY Some examples of soft skills include communication skills such as listening, empathy and negotiation. Leadership skills including strong verbal and nonverbal communication skills, team building, and coaching abilities are also examples of soft skills.

Identifying the soft skills needed to be a competent used car salesperson can be done using the same methods outlined above. Alternately, refer to a list of soft skills and select which five to ten will help a person be successful in the role of used car salesperson. Online lists are plentiful and can be found readily by searching for ‘soft skills in the workplace’ or ‘soft skills in sales.’

Where can potential used car salespeople be found?

Gone are the days when personnel responsible for hiring relied solely on employment ads for recruiting. In fact, employment ads are likely the last place to find a stellar salesperson! Instead, always keep in mind the hard and soft skills needed for a used car salesperson and always, always, always be on the lookout for possible new hires. It may well be, that a future member of a stellar used car sales team will be found at a local restaurant!

When searching for potential salespeople to add to the candidate pool, consider exploring the following groups or places.

• Current employees know the company and might know someone who would be a good fit for a role within it. As such, current employees can be one of the best sources for seeking potential new hires.

Ask current employees for referrals. And don’t forget that employees currently working in other departments might just be the next super star of the used car sales department!

• Search other sales industries. A person might be in the business of selling vacuum cleaners as opposed to selling used cars. But they are known to be a top-notch prospector or skilled negotiator.

The fact is product knowledge can be taught but the soft skills they possess that made them a great prospector or negotiator cannot.

• Think about business customers and suppliers. There could very well be a great salesperson within one or both groups.

Additionally, if permission has been granted to send information via email to previous customers, consider sending them a note seeking salespeople.

• Retail environments or trade shows are great places to watch and evaluate salespeople in action. Approaching a good salesperson at either of these venues could result in them soon becoming a used car salesperson.

• Take advantage of online opportunities.

Post sales employment opportunities on the business website and/or virtual career centres, for example. Create a print and/ or video ad and post on social media platforms such as Facebook, Twitter, TikTok and/or Instagram. Although platforms may have some limitations or lend themselves well to one type of post as opposed to another, collectively they provide many opportunities to advertise the availability of jobs for salespeople.

Google ads can also be helpful.

• Many individuals looking for employment post their profile on LinkedIn. Take some time to search profiles, especially those listing skills or employment experience that might match what is needed for the used car sales business.

• Networking has become one of the best ways for individuals to seek employment and entrepreneurs to find new business.

It can also be beneficial for employers in the sense that hiring personnel can expand the pool of people to draw from for new hires. A five-star salesperson may well be found by attending Facebook groups and sales organization meetings, as well as by attending or hosting happy hours, chamber of commerce events or local business group events.

Once upon a time, a company would place a help wanted ad in the local newspaper when searching for a person to fill an open position. If a person was looking for a job as a ‘Used Car Salesman,’ they would simply look for that job title in the newspaper. Today, however, the job title is different as are the methods in which a company searches for new hires.

In the used car sales industry employers no longer seek ‘Used Car Salesmen.’

Instead, they search for people to fill the positions of ‘Automotive Used Car Sales Consultant,’ ‘Used Car Sales Executive,’ or ‘Sales Consultant – Used Cars.’ And no matter the title, sales managers or hiring personnel need to continuously build a candidate pool. In order to do that they must thoroughly understand the used car sales needs of the business, understand the hard and soft skills needed to be successful in a used car sales position and whether using online resources or face-toface opportunities, always, always, always be on the lookout for people to add to the candidate pool. ■ SOURCES:

AUTODEALER TODAY www.autodealertodaymagazine. com/308695/recruiting-salespeople BECKER, TJ EDWARD LOWE FOUNDATION www.edwardlowe.org/recruiting-the-rightsalespeople-2/ BMS PERFORMANCE www.bmsperformance.com/blog/sales/ourguide-to-hiring-the-perfect-sales-person/ www.bmsperformance.com/blog/sales/5reasons-always-recruiting/ BUSINESS NEWS DAILY www.businessnewsdaily.com/4173personality-traits-successful-sales-people. html PIPEDRIVE www.pipedrive.com/en/blog/8-stepsfinding-perfect-salesperson-team

VOLUME 10, ISSUE 2 | 11

DOES THE DEALER MATTER? SELLING TO GEN Z

By Catherine Morris MOVE OVER MILLENNIALS, there’s

another generation of Canadian drivers behind the wheel. Generation Z is coming of age, and selling them their first car won’t be easy.

Traditional sales tactics aren’t going to work on this crowd. Raised on a diet of technology, economic uncertainty, and social change, these buyers have very different goals and needs than their generational predecessors. Dealers will have to look beyond their usual selling strategies to engage with zoomers by engaging with platforms such as Instagram and TikTok. More work needs to go into finding out exactly what they want, and making sure your dealership is delivering it to them.

Who are Gen Z? Broadly speaking, Generation Z are currently in their teens to mid-twenties.

While there are different definitions on the exact time frame, Statistics Canada defines this era as those born after 1997 and estimates that they currently make

12 | THE ONTARIO DEALER

up just over 18% of Canada’s population.

As with any generation, this is a large cohort. Older zoomers will have different priorities than their younger counterparts. Ask any 25 year old and they’ll scoff at the idea that they have anything in common with an 18 year old.

Segmenting this market can help dealers get a handle on how to reach them.

Gen Z includes: • First-time drivers who’ve just got their license • College students, moving away from home • Single men and women in their early twenties • 25 year olds beginning their careers • 18 year olds entering the workforce There is one common theme that unites Gen Z - this is a generation of firsts.

Zoomers are poised to make their way in the world, launching into their first job, their first move, their first home and, yes, often their first car.

Gen Z’s vehicle wishlist According to a recent study by Carpages. ca, Gen Z’s vehicle of choice is a sedan.

Why? Because they don’t care about space, but they do care about value.

Gen Z aren’t shopping for SUVs to fit their families or treating themselves to top-of-the-line models. Many have only just joined the workforce, and even older zoomers won’t be established enough in their careers to invest in flashy vehicles.

But just because they want value, doesn’t mean they’re prepared to sacrifice technology.

This cohort is the most digitally proficient of all the generations, having grown up with screens. By the time they started walking, Apple had released its first iMac and Google was beginning its journey of search engine domination.

Gen Z want tech-enabled connectivity in their cars. They want 5G integration, Bluetooth capability, cutting-edge GPS and any other digital bells and whistles available. These digital natives think of

SELLING TO GEN Z | CATHERINE MORRIS their car as another computer, albeit on wheels. And that means salespeople have to become as tech-savvy as their targets knowing what’s available, what’s coming next, and how to cut through the jargon to truly understand their customer’s digital needs.

A 2021 report from marketing group Allison+Partners shows that Gen Z are reluctant car buyers, with 67% purchasing purely for convenience.

Unlike previous generations, zoomers aren’t as aspirational about vehicles.

These buyers aren’t investing in a car because they covet a certain model or they enjoy the prestige of having a new ride. They’re buying because they need a way to get from A to B. More than half see cars as just another mode of transportation.

This may be due to their reticence to spend. Having grown up in the wake of the global recession and during a postpandemic wealth transfer, Gen Z are much more financially conservative than older generations. They’re savers, rather than spenders, so don’t expect much impulse buying.

Dealers will have to shift their focus to match Gen Z’s caution, promoting practicality and convenience over big buys and brands. Gen Z are less brand loyal than millennials and prefer to do their research rather than going by reputation alone. To do that research, they’re heading to the web and that creates the perfect opportunity for digital sales.

Online vs in-person sales Every generation enjoys pushing back against their elders but Gen Z really doesn’t like being told what to do. They hate the idea of a pushy salesperson, guiding them around a car lot as they give them the hard sell.

If you want to get them off the internet and into your showroom, you’ll have to take a more hands-off approach. Ditch the stereotypical sales environment for

something more homey and welcoming, with a relaxed atmosphere and zero pressure.

You need to give them a compelling reason to shop in-person and that’s going to take more than a smile and a handshake. Promotions can help get them through the door by appealing to Gen Z’s love of value for money. You may also want to offer test drives or demos so younger buyers can experience the latest car tech in action. Research from American Express Canada shows that when Gen Z shop in-person, it’s primarily because they want to try before they buy.

There’s no getting around the fact that most will still shun the sales floor, however, so dealers should also strengthen their digital presence. Now’s the time to upgrade your website to facilitate virtual sales. Get them through the sales funnel online and the only time they’ll have to connect in-person is when they pick up their car.

Don’t forget to make your digital presence mobile-friendly either. Gen Z does everything on the go. 80% of zoomers visit retail sites using their smartphone, and 61% purchase what they need from their mobile device, according to social media firm Hootsuite.

When it comes to Gen Z, neglecting to format your website for mobile is like locking the doors of your dealership.

How to reach the Gen Z market Building a better digital dealership doesn’t just mean making your website look good or improving the online sales engine. This is also where your Gen Z marketing should happen.

Find them where they are. Pew Research shows that Gen Z is much more heavily invested in Instagram and TikTok than Twitter or Facebook so that’s where your dealership should be. Being imagedriven, these platforms are ideally suited to vehicle sales and they don’t have to be a labor-intensive venture for dealerships.

Simply snap a photo of what’s available, upload it with all the details buyers need to know, rinse, and repeat. Quick and easy advertising in just a few clicks!

Advertising on Instagram If your dealership wants to make the most of its advertising budget, it can’t rely on Google Ads alone. Research from PwC shows that 80% of zoomers use social media to shop, and Instagram is far and away the top choice with 74% selecting it as their preferred shopping platform.

Instagram campaigns are similar to Facebook ads in that sponsored posts and ads are peppered through the user experience - in their feed, their stories, etc. - and look much like standard posts but with more details such as CTA buttons and product specifications. In addition, unlike non-boosted posts, you can include a link in a boosted Instagram post or an Instagram Ad. Costs vary per campaign, but Instagram’s Ad Manager (which is accessible from the Facebook - now Meta - ads dashboard) can give you a ballpark figure based on audience definition and estimated daily results. You can easily start small and scale up, depending on how well your ads are performing.

Instagram video & image ads, which are different from boosted posts and similar to Facebook Ads, are simple, short, and image-driven with a brief CTA such as ‘book a test drive’ or ‘visit our website’.

Once you become more familiar with the platform, you can upgrade to more involved formats such as carousel ads (a collection of images users can swipe through) or Instagram Story ads. Over 500 million users view Instagram Stories

VOLUME VOLUME 10, 10, ISSUE ISSUE 22 | 13

SELLING TO GEN Z | CATHERINE MORRIS every day so these immersive ads can significantly expand your audience.

Not ready to jump into Instagram Ads? There’s a less intensive option - boosting a post. This easy feature allows you to boost any post in your feed. It’s a low-key way of sending select posts to new viewers. Just click ‘promote’ on the post, choose how you want to market it (audience, duration, etc.) and create your campaign.

TikTok - Establish a footprint on this network now TikTok is how you will reach the younger segment of Gen Z. They view Instagram much the same as their older cohorts view Facebook - it's for older people and TikTok is where they live instead. Many dealerships won’t want to get into putting regular videos on TikTok, but even if you show off a promotion, charity events, or vehicles on your lot a few times per month you’re making a start. If you have a vehicle that you know this cohort will love, consider TikTok ads. If you’ve mastered Instagram and Facebook Ads, you’ll be able to handle it.

Whether it’s your business to sell New cars or Used cars... it’s our business to keep all your insurance needs covered

Before committing to one ad format or the other, it’s important to clarify your objectives - unpacking your goals and which ads best suit those goals. Do you want to get people into the showroom? Drive traffic to your website? Highlight certain makes or models? Increase your brand awareness?

For young zoomers who are shopping around for their first ride, you may want to push your showroom deals. For older members of Gen Z, concentrate on getting them to your site as they’ll have done their research and be ready to buy.

Different segments will involve slightly different approaches.

If you want to impress Gen Z, be precise about how you target them.

Taking the time to refocus your advertising and sales strategies through a Gen Z lens is an investment in the future of your dealership, and an opportunity to evolve your marketing department. As this generation ages, they’ll bring all their purchasing power to the market, influencing every aspect of business from product trends to social media sales. Act now with strategies that lean into their need for value, technology, and convenience, and you could convert them into lifelong customers. ■

Baird MacGregor Insurance Brokers LP Partnering with the UCDA and Pitcher & Doyle to Bring you Quality Insurance and Excellent Customer Service at Competitive Rates.

825 Queen St. E., Toronto, ON M4M 1H8 TEL: (416) 778-8000 TOLL FREE: (800) 268-1424

www.bairdmacgregor.com

14 | THE ONTARIO DEALER

WHO'S BUYING USED CARS | RONDA PAYNE

TECH TALK

By Angela West

HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS. Summer is finally here, and that can only mean one thing - road trips! It’s the season of long weekend drives, meandering journeys to the beach, crosscountry odysseys, and sundrenched day trips. You’ve probably been planning for this all winter but in the rush to get ready, don’t forget to pick up the stuff you’ll want in the car during a (hopefully) long, hot summer!

There are many cool, new tech devices out there to help you make the most of your vehicular vacation. From sound to safety, and snacks to security, our list of roadworthy gadgets make sure you’re covered from all angles. All you have to do is hit the road and have fun!

PICTURED ABOVE IS THE THULE FORCE XT ROOFTOP CARGO BOX

Tune in, rock out A road trip without tunes is like a meal without flavour. Every driver needs the perfect summer soundtrack to get them in the mood for a vacation.

The Rexing FMVC2 is a top-of-the-line car audio adaptor, designed to enhance and update your existing sound system.

It allows you to play music via bluetooth or USB without having to invest in expensive new parts or completely upgrade your car’s stereo system.

With Rexing’s tiny but comprehensive all-inone car kit, you can stream music from your smartphone, play your Spotify playlists, and even set it up for hands-free calling via voice-activated controls. It can also be configured for voice assistants such as Siri.

The unit securely mounts to your car’s central panel and comes with an AUX cord and spare fuse included. The LED display screen takes you through each function step by step, making it a breeze to use even if you’re not particularly tech savvy.

For more information on the Rexing FMVC2 FM transmitter, visit www. rexingusa.com/ Stay cool (or warm!)

Aside from music, snacks are another crucial element of any journey. Just as you gas up your vehicle for a long drive, you need to fuel your family too.

Non-perishables are great for emergencies but if you’re tired of nuts and energy bars, expand your on-thego menu with the Cooluli mini-fridge.

This compact cooler’s classic minifridge holds 4 litres (or six 12 oz. cans) so it’s perfect for stashing small food containers or keeping your drinks cool.

The Cooluli Classic can also double as a handy heater if needed, warming up to 149F to keep your coffee nice and toasty.

The fridge plugs into your car’s outlet via the included USB charging cord and is both quiet and efficient, operating with an unobtrusive hum. It’s also highly portable, measuring just 10.75 inches tall and 7.25 inches wide. The whole thing weighs 4 lbs so it’s easy to pack it into your vehicle and take it out again when you stop.

And did we mention that it looks great?

The sleek, rounded design comes in a

VOLUME VOLUME 10, 10, ISSUE ISSUE 22 | 15

TECH TALK | ANGELA WEST number of colours from vibrant fuschia to whimsical cow print. Don’t worry if you’re not a fan of arty appliances, it comes in classic black and clean white too.

For more information on the Cooluli Mini-Fridge visit: www.cooluli.com/ Keeping the kids entertained Long roadtrips can be rough on the younger members of the family. Traffic jams, endless highways and bad weather are a great recipe for grumpy kids and frustrated adults. Restore peace and harmony by screening their favourite shows or putting on the latest superhero movie.

The ieGeek Portable DVD Player is the best in backseat entertainment. This lightweight, compact DVD player can be mounted to head rests or simply unfolded and stacked on its own disc drive. The screen swivels on its mount, providing tablet-like flexibility.

The 9.5 inch screen may be smaller than your home system but the innovative display is crystal-clear with 720p resolution so you can watch your movies in dazzling HD. There’s also an built-in dual speaker that offers impressive sound quality for its size.

The player supports all DVDs, as well as CDs, SD cards, and more.

But the real beauty of this portable player is its power. The ieGeek lasts for up to five hours fully charged, and can be plugged into your vehicle’s auxiliary power outlet for fast and easy recharging. And no need to worry about whether or not you’re going to enter a cell data dead zone - just happy kids.

It’s great to soak up the scenery on roadtrips, but smart travelers know you need a back-up plan for long drives and rainy days. If nothing else, a DVD player

16 | THE ONTARIO DEALER

will help keep the kids quiet while you try to decipher your GPS! To find out more about the ieGeek Portable DVD Player, visit www.iegeek. com/ Expand your storage Camp chairs, coolers, beach toys summer vacations need a lot of gear.

Sometimes more than your trunk can handle. Save yourself some room with the sturdy Thule Force XT Rooftop Cargo Box. The sleek, black case is super easy to mount to the roof of most vehicles securely locking into place with a click so you know it’s held fast. The box sits slightly forward on the roof so it won’t get in the way when you’re opening your trunk and it has dual side opening so you can easily access it from either side of the car.

The box comes in four sizes - from the compact sport model, up to a massive XXL which has a 22 cu ft carrying capacity. You may want to choose the latter if you’re going to be taking your water skis with you. At the other end of the scale, the sports size is small enough to fit alongside bike racks and other roof storage items.

Easy to open with a secure lock, the Thule Force gets rave reviews from travellers. It’s known as a reliable choice thanks to its durability and practicality on the road. No leaks, no loose parts, and no squeezing your sports gear into the back seat, forcing your poor passengers to rub elbows with it all the way to your destination.

Check out the Thule Force XT Rooftop Cargo Box at www.thule.com/ Protect your vehicle It’s not always easy to find a safe place to park when you’re on the road, leaving your vehicle vulnerable to thieves and

vandals. Using a keyless car entry fob might be convenient, but it’s not 100% thief-proof as these devices can be hacked to open your car remotely. Also known as ‘relay theft’ this involves tricking the car’s locking system into thinking the wireless remote is nearby.

The Disklabs Key Shield Faraday Bag keeps your keys invisible to hackers, making sure they can’t be scanned or cloned. It works by cutting off any signals transmitting to or from the fob, blocking your keys from interference from WiFi, 5G, 4G, 3G, 2G, GPS, and Bluetooth-based attacks.

The lightweight pouch slips easily into pockets and bags so you can carry it with you wherever you end up on your drive. Safely tucked into its faraday wallet, your key fob is one less thing to worry about during your trip.

To find out more about Disklabs Key Shield Faraday Bag visit: faradaybag.com Spot problems before they start It’s scary when things go wrong on the road, especially if you’re on a remote highway, miles from the nearest mechanic. Invest in a pocketsized mechanic and you won’t have to sweat over what that anxiety-inducing warning light is trying to tell you.

The Innova Car Scan Pro 5610 is a handheld diagnostics scanning tool.

Simply plug the scanner into your vehicle’s OBD2 port and start the engine to sync it to your car. Paired with Innova’s free diagnostic app, RepairSolutions2, the device can run performance checks on every system in your vehicle including its engine, transmission, brakes,

TECH TALK | ANGELA WEST battery, tires, A/C, fuel pumps, and more.

If there is an issue, the scanner will talk you through DIY repairs or help you identify which parts you’ll need to get back on the road again. With this invaluable tool you can get dealershiplevel diagnostics instantly, and from anywhere. Easy to use, multi-functional, and very portable, it’s a must if you’re looking to upgrade your emergency supplies ahead of a long journey.

To find out more about Innova Car Scan Pro’s features, visit: www.innova.com/ products/carscan-pro-5610 Avoid accidents and parking mishaps Fun fact - the first car back-up camera debuted in 1956 at a General Motors trade show. At that time, it was the

highlight of the event, adding a futuristic element to the legendary Buick Centurion.

The gadget has come a long way since then, going from blurry images on big screens to razor-sharp definition in portable packaging. Now there’s a back-up camera for every vehicle, taste, and budget but myGEKOGear’s version stands out from the crowd with a solarpowered model.

The SOLARST wireless solution is ready to use in minutes, with easy installation

and very instinctive controls. The discreet and waterproof camera screws onto your license plate, transmitting the picture to a 4.3 inch colour LED monitor that gives drivers complete visibility of anything behind their car. The device has up to 7 hours of battery life and all it takes to top up is a sunny day!

If you’re not confident in your parking skills, SOLARST is your dream device giving drivers parking guidelines as they maneuver so they can see exactly where they’re going…and where they shouldn’t.

It’s a great way to get peace of mind on your trip. After all, nothing spoils the road trip vibe faster than a fender bender.

For more information on myGEKOgear SOLARST visit www.mygekogear.com/ ■

VOLUME 10, ISSUE 2 | 17

DEALER PROFILE Jim Bray Life in the fast lane

By Ronda Payne JIM BRAY LOVES AUTO RACING. Some decades ago,

he took a few spins around racetracks himself (at NASCAR no less), but he leaves the speed to others these days. He still gets a kick from all the action and continues to have something at stake in a race because he’s owned race cars for the past 25 years and as such, is part of the team that encourages drivers to be the best they can.

As Jim puts it, being the owner makes him the guy that pays the bills at the end of the race, so he has to be there. At 89 years young, he’s still going to races and writing cheques – while taking in the sights and sounds he has been around for more than 70 years.

He says, “You don’t quit racing because you get old, you get old because you quit racing.”

18 | THE ONTARIO DEALER

VOLUME 10, ISSUE 2 | 19

Jim Bray However, it wasn’t always racing for him. His initial interest was in trucking and building supplies because those were the occupations of his dad.

“I was a truck guy really,” he says.

“My dad was in the builder supplies business, so I was around trucks growing up. I bought my first truck at 16.”

Being part of the builder’s supply business with his dad had him involved in buying supplies from a tender young age. Things like cement, drywall, sand and gravel.

“When I was 15 years old, my dad gave me some cash and I was over in the USA buying supplies,” he says.

But that job was not Jim’s calling.

Instead, he tried something totally different and started selling cars. That was how he became involved in the used car business and established himself as a Member of the UCDA. “The day before my 25th birthday, I got a job selling cars at a Ford dealership,” notes Jim. “I was in the business for 12 years.”

“20 years later he gave me the remains of it and 20 years after that, we rebuilt it,” he says. “It’s not a replica, it’s the actual car.”

The evolution of Jim’s involvement in racing has led to his recent induction in the Canadian Motorsport Hall of Fame.

His racing career began at the legendary Pinecrest Speedway in Concord, Ontario. He was the second Canadian to have raced the Daytona 500 (Dick Foley was first) and his memories about racing are expansive.

Turns out, he’s a little nostalgic about race cars.

“I wouldn’t be in the racing hall of fame had I not returned to it,” he says of his transition to being an owner.

He raced at Pinecrest many times in the 50s and in 1956 won a couple of races in the rain in a cream car with red flames and the number 98 on it. Today he has a white car with red flames and the number 98. Someone else sits behind the wheel, but Jim’s excitement about it is palpable.

In 1952, at Indianapolis, a creamcoloured Agajanian car with red flames and the #98 won the race. Standing nearby, Jim saw an opportunity and helped push the car into the garage.

This got the then-19-year-old into the garage area. Once in, he ended up hanging out in the Ferrari garage; it’s how he still has a relationship with the Curb Agajanian Performance Group today.

About seven of those years were at Woodland Motors in Cooksville, Mississauga. It opened in 1958 and 60 years after that 1952 race, Jim was a Jim was the first salesman. He was lap donor for the Indy 500. The rebuilt even one of the top 50 Ford retail #98 was in a parade. salespeople in 1962. But guess what?

Jim was the only one of the 50 not in “After the parade was over, down in turn attendance at the party in Dearborn, Michigan the following year. Why? Well, one, the cars had to be pushed back into the garage again,” he explains. “So, he was racing of course!

I pushed the same car back into the garage again. The car looking as nice as “I was in Daytona racing the 1960 Ford it did in the 1952 race. The pusher, not in the Modified and Sportsman race so much.” there, so I was the only one not [at the party]. I was involved in racing before I started selling cars,” he says.

That 1960 Ford sold the day after the 1963 race to a fellow in Georgia. A number of years later, the owner thought someone like Jim might want what was left of the car he had once raced.

20 | THE ONTARIO DEALER

He arranges display ads on the cars that he says gave better TSN TV coverage than regular TV ads. It’s a case of better advertising for less money and OMVIC was one of the advertisers that got great exposure.

“It’s a TV ad on a car,” Jim says.

And the Agajanian Curb group he interacted with in 1952 sponsors the white #98 vehicle today.

But racing was more of a love than a career and he found himself working as a realtor and also in another role.

“I was a real estate broker and also, because I had sold a race car and I had a new truck, I began bringing used parts out of the southern states,” he explains. “That got to be bigger than the real estate.”

People knew him for the car parts, so they didn’t think of him as a realtor and he dropped that career. His focus went into the parts business and a little bit of helping others create their own successful business.

“In 1977, a fellow that I knew took the property over where I used to work at Woodland,” he says. “He became a Mercury dealer. I went to work for him for a bit. It gave him some credibility. I was an old-time sales person working at a new dealership. I was there for a

DEALER PROFILE | RONDA PAYNE

month or more to help him get going.”

Because of this, Jim was the first person to have a real estate licence and a car salesman licence at the same time in Ontario. There was some bureaucratic discussion about it, but when Jim pointed out they’d never had a single complaint about him, they allowed him to continue and he paved the way for others.

As the parts business grew, in 1985 he bought an auto recycling yard. This was when he got his dealer licence and has retained it ever since. Though, he focuses primarily on cargo trailers now, which he started selling in 1996. His son runs the recycling site and carries on the parts business. Jim says it’s all his son has ever known so it’s a good fit.

“I operate my trailer business the same way I’d operate an OMVIC licensed car business,” he says. “I don’t have any title fees and registration fees and all that stuff. Racing and trailer sales, they all go together.”

Jim is an open and transparent man. He’s easy to like. He finds having the used car dealer licence is a selling feature even for those looking for a trailer.

“Race car wise, [I’ve had] probably 20-odd cars,” he notes. “I have six race cars now. The restored one and five others. We raced them all last year. Right now, we are running the white car with red flames and #98.”

Canadian racer Ron Fellows is part of Jim’s team and Ron’s son, Sam, is the one driving for him.

“Last year he started to drive competitively,” Jim says. “I like the competitiveness. Even as a young fella, I liked it.”

In terms of his own non-racing cars, his half-brother found a rare 1976 Porsche 912e for him in California which he’s had for more than 20 years. He also has a 1931 Ford Model AA fire truck and a 1964 Dodge Dart GT convertible.

“I don’t sell many vehicles anymore, but I still believe in the Used Car Dealers Association. I get my insurance through them,” he says.

His joking and parting words were, “I’m only one deal away from breaking even” and “as long as you’re still trying, you haven’t failed.”

Words to live by – especially when they come from someone who lives as youthfully as Jim. ■

VOLUME 10, ISSUE 2 | 21

TRENDS

By Chris Chase

AS A USED-CAR DEALER, we have no

doubt you’re aware of how popular crossovers have become with consumers: They’re now the SUV category’s dominant vehicle type, despite having started out as a subset of the utility class. Some of that popularity has to do with the inherent appeal of a vehicle that combines car-like driving qualities with generous interior space and the all-weather traction of AWD.

But with the explosive growth of the crossover segment has come a dearth of utilities with genuine off-road capability, not to mention models that combine that capacity with daily driving comfort and efficiency. Thankfully, automakers have begun to fill that gap in the marketplace by augmenting some of their most popular crossovers with off-road enhancements – vehicles that will appeal to customers looking for a crossover that can handle both the daily commute and the road to their cottage or campground.

Unsurprisingly, Jeep has several crossovers that can tackle off-road duty, if not as ably as its purpose-

22 | THE ONTARIO DEALER

built Wrangler model. In 2014, the compact Cherokee was the first Jeep crossover to get the brand’s Trailhawk package, which adds all-terrain tires, protective underbody skid plates, and recovery hooks. Jeep added a similar option to its subcompact Renegade and compact Compass models in 2015 and 2018, respectively.

But while such a configuration is expected from a company that has built its reputation on off-road ruggedness, several other automakers have since followed suit with some of their most popular models.

Toyota RAV4 Trail The first of those was the Toyota RAV4 Trail, introduced in 2018 on the fourthgeneration model and carried forward to the fifth-gen version the following year. The Trail package beefs up this compact crossover with a torquevectoring AWD system and other

enhancements, which more than double the RAV4’s towing capacity to 1,588 kg. Toyota also offered a TRD Off Road option package for the RAV4 Trail that adds a front skid plate, off-road wheels and tires, and a specially tuned suspension.

Subaru Outback Wilderness and Forester Wilderness Then it was Subaru’s turn to join the off-road crossover party with a newfor-2022 Wilderness trim level for its compact Forester and mid-size Outback. Subaru’s Wilderness models get a taller ride height and long-travel suspension to capitalize on the brand’s already-impressive all-wheel drive credentials, along with all-terrain tires and underbody skid plates to protect the powertrain from damage. Both Wilderness models also get unique cosmetic

TRENDS | CHRIS CHASE touches to set them apart from more pedestrian versions of the Forester and Outback.

Ford Explorer Timberline Ford fans are currently going ga-ga over the mid-size Bronco SUV, but the company has also toughened up its more family-oriented Explorer with a Timberline package that was new for 2022.

The modifications begin with steering and suspension components from the Explorer’s police interceptor package.

The Explorer Timberline also gets more ground clearance, redesigned bumpers that let this SUV drive up and over taller obstacles, skid plates to protect the truck’s mechanicals, and a limited-slip rear differential that enhances traction.

In the Explorer’s 2022 lineup, the Timberline is also the least-expensive model to come standard with a heated steering wheel, heated rear

seats, and the enhanced Co-Pilot 360 Assist+ safety suite.

that adds minor off-road improvements, but is mostly a cosmetic package.

Ford Bronco Sport

The same goes for the Honda Passport Trailsport (new for 2022), which has a wider track than the standard model, but comes with the same roadgoing tires as the rest of the Passport range.

Honda says it may add gripper tires and a modified suspension if there is enough marketplace demand for those items.

And finally, the Hyundai Motor Group has added off-road options to its Hyundai Palisade and Kia Telluride mid-size crossover models for the 2023 model year. The Telluride X-Pro is the more notable of the two, with a taller suspension, tougher tires, and a modified traction control system. The Palisade XRT gets cosmetic tweaks to make it look more rugged, but boasts no mechanical or structural changes.

While the compact Bronco Sport is marketed as a standalone model, it is so closely related to the Escape that it can fairly be considered an off-road version of that long-running small crossover.

All Bronco Sport trims come standard with all-wheel drive and five drive modes that optimize performance for whatever terrain the driver wants to traverse. The top Badlands trim goes even further, adding a locking rear differential, protective underbody panels, an enhanced terrain management system, and a trail control system that works like cruise control for steep hills.

What if your customer wants a vehicle that looks rugged, but isn’t concerned with off-road performance?

There are also choices for shoppers who want off-road styling but don’t need any extra all-terrain functionality.

GMC offers an AT4 option on its compact Terrain and mid-size Acadia crossovers

With the off-road-optimized crossover trend being relatively new, not many have yet made it to the used-vehicle marketplace. But as these recently introduced models begin to come back when their original buyers decide it’s time for a change, you’ll have plenty of options to offer the customer who comes to you looking for a used crossover that can do double duty as a daily driver and capable off-roader. ■

Let us help your dealership with:

VOLUME 10, ISSUE 2 | 23

THE OLD CAR DETECTIVE 1947 MONARCH A GREAT FAMILY CAR! AN EMAIL ARRIVED FROM JUDY WIEBE

“The vehicles were stored in a showroom on his rural property until he moved to the city in 2001. At that time, I became the official owner and grateful recipient of the 1947 Monarch. I have never driven a standard shift and my husband is the official driver.

“The original owner of the 1947 Monarch in Chilliwack, B.C.: “Hi Detective Bill. was an elderly gentleman named John My father was a Ford fanatic and only Voth, who lived in rural Chilliwack. As drove Ford cars all his life. He spent his the story goes, Mr. Voth took his car to early years working in a body shop, then Broadway Motors for regular servicing. went to dairy farming full time. After retirement, he bought and restored many When he never returned to retrieve his old Fords, including a Model A, a Model T, car in 1970, the owner of the service station offered to take the car off Mr. a ‘35 and ’36 Ford, several Mustangs, and Voth’s hands in exchange for monies a 1947 Monarch which I now own. owed. And so, Jim Schroeder became the

24 | THE ONTARIO DEALER

By Bill Sherk

owner of the green Monarch and stored it indoors for the next 25 years. In 1995, William Baerg (my father) purchased the car and it became his next restoration project.

“The car was built in Ford’s Windsor, Ontario, plant, one of 4,926 four-door Monarch sedans built that year that sold for $1526. Dad restored the car to its original condition, though the green exterior paint was changed to black. The body was removed from the chassis and all components rebuilt as needed.

The 59A V8 flathead motor and 3-speed standard transmission were rebuilt and a new clutch was installed. My dad was a do-it-yourself kind of guy and did all

the work himself, including the interior upholstery.

“We have enjoyed many outings in our 1947 Monarch over the past two decades.

It has been to a few local car shows, participated in parades, gone for many a Sunday afternoon jaunt, and taken the grandchildren to the DQ for ice cream countless times. It was also featured in a Canadian best-selling cookbook called Mennonite Girls Can Cook.

“Our number one rule when taking the Monarch for a joyride is ‘always wear walking shoes.’ It has left us high and dry a few times! We took my dad for his final ride in the Monarch on Father’s Day last year. He passed away last summer, but the Monarch is still going strong. Who knows how much longer we will be able to enjoy it?” ■ PAGE 24 PHOTO: Girls with 1947 Monarch sedan featured in best selling Canadian cookbook Mennonite Girls Can Cook.

TOP PHOTO: More “cookbook” girls with 1947 Monarch owned by Judy and Elmer Wiebe of Chilliwack, B.C. MIDDLE PHOTO: Judy’s father William Baerg purchased this Monarch in 1995.

BOTTOM PHOTO: Judy’s father restored several cars, all of them Fords.

VOLUME 10, ISSUE 2 | 25

THE COMMON LAWYER Some say a pendulum swings between sense and nonsense – where is it now?

By Justin M Jakubiak and Keira Zlahtic IN DECEMBER 2021 the Office of the Auditor General of Ontario (AG) released a pretty scathing report about OMVIC, prepared further to its completion of a value-for-money audit.

A scathing report is never a good thing – it is obviously bad for OMVIC – but it is also potentially bad for the industry as a whole. Coming down hard on a regulator of an industry can have a negative impact by implying that the industry is out of control and needs much greater oversight. The AG's report may also result in the pendulum swinging too far and lead to more OMVIC investigations, more enforcement, more scrutiny and overall less flexibility by OMVIC when it comes to resolving issues between it and registrants or potential registrants.

26 | THE ONTARIO DEALER

But first, what did the AG find? Among other things, the AG found that OMVIC had routinely engaged in the types of activity that OMVIC puts registrants through the ringer for – including financial and general operational mismanagement, as well as the making of false statements in OMVIC's reporting on consumer protection and consumer awareness issues. In terms of financial concerns, the AG found that while OMVIC, a not for profit, increased its surplus and reserves from $6.3 million in 2015 to $23.6 million in 2020 (nearly 4 times!), it failed to invest this money into key operating areas such as the complaint, inspection and registration departments. So while dealers are paying 100% more for the transaction fee due to its 2015 increase from $5 to $10, OMVIC's key departments are remaining stagnant and neither consumers nor registrants are benefiting from OMVIC's increased resources.

The AG also found that OMVIC overstated the number of motor vehicle dealers it had inspected between 2016 and 2020 by 25%; and that OMVIC significantly understated the time required to process both dealer and salesperson applications.

These findings are ironic, given that many dealers have been taken to the OMVIC Discipline Panel and/or the Licence Appeal Tribunal for analogous conduct – such as misleading vehicle advertisements, or false statements contained in applications submitted for the purposes of registration.

So what does the AG report mean - Is OMVIC bad? Is it ungovernable? Should it lose its authority to regulate the automotive industry?

NO. OMVIC is Good (Mostly!)

Some of you, especially those of you who are my clients or have worked with me before, may be surprised to see me write this. Don't get me wrong, I get annoyed

by OMVIC from time to time. Delays, nit-picky questions during an application review and unreasonable (to me) positions on files can all be frustrating.

That said, by and large, OMVIC is staffed by some pretty great people – people who truly care about their jobs, who are knowledgeable and who care about consumer protection. They truly want to rid the automotive industry of the bad apples that give it a bad reputation.

In particular, my mind turns to OMVIC's registration department. I have worked with many of OMVIC's registration representatives for more than 15 years.

While it often feels that they ask too many questions, they do so with an earnest desire to make sure the right people and the right businesses achieve registration, and can operate successfully.

OMVIC's legal department is another that is well staffed with talented people who genuinely care about their files and OMVIC's consumer protection mandate.

Most prosecute files without regard to 'winning or losing', but ensuring that

their actions are fair and maintain public confidence.

So Why is the AG's Report a Problem for the Industry?

While reviews and feedback are incredibly important tools to achieve improvement, they can sometimes have adverse consequences.

In my view, OMVIC has clearly heard the criticisms set out in the AG's report and is now potentially overcompensating on certain files in an apparent effort to redress past alleged mistakes. If I am correct, this is not only obviously inappropriate, it poses a risk to the good registrants that may get caught up in OMVIC's potentially overzealous response to the AG's report.

In short, a dealer who makes a mistake today can't be 'overpunished' in an effort to make up for a different dealer that may have been 'underpunished' in 2019.

A Few Examples

1 The Established Dealer I am currently acting for a wellknown and established dealer and its dealer principal. The dealer has been successfully operating for over 30 years, and its dealer principal has been

registered for over 35 years without issue.

However, in 2020, one of the dealer's business managers engaged in some conduct which did not meet the high standards that all registrants should strive for. While the conduct did not result in any consumer harm, and the business manager didn't personally benefit from the conduct, it was still wrong. It was the type of conduct that in normal times the business manager would be taken to discipline for.

What happened instead – the business manager and the dealer and the dealer principal were each issued a Notice of Complaint through OMVIC's discipline process AND SUBSEQUENTLY the dealer and the dealer principal were also issued a Notice of Proposal to Revoke their respective registrations. This is despite the fact that neither the dealer principal nor anyone else at the dealer were aware of the impugned conduct of the business manager at the relevant time, and in spite of the fact that the dealer quickly conducted an investigation into the impugned conduct and disciplined the business manager once its investigation was complete.

In full transparency, and acknowledging that I write from an obviously biased perspective, the Notice of Proposal to Revoke does raise some other issues;

however, in my opinion, they aren't material issues that are industry related, go to the heart of OMVIC's mandate or speak to consumer protection. Instead, they are an aggressive attempt to trump up the allegations against my client and overcompensate for OMVIC's potential past deficiencies.

A Notice of Complaint combined with a Notice of Proposal is overkill, plain and simple. By issuing two serious processes against my clients, OMVIC is both expecting an unreasonable standard of perfection from registrants and is over punishing the behaviour in question.

2 The General Manager I recently completed a long hearing before the Licence Appeal Tribunal on behalf of a General Manager. This individual had been registered without issue for over 10 years, and had received high praise and respect from almost all that had worked with him.

Just prior to the pandemic, my client had been promoted from Sales Manager to General Manager at a large and very busy franchise dealer. The pandemic hit and as I am sure you know, chaos ensued. This GM all of sudden had to deal with a many issues that were foreign to even the most experienced GM's, let alone new ones, such as: mask mandates, safety protocols, lock-downs, staff layoffs, supply issues, consumer fear and more.

During the course of the pandemic, there was one Business Manager at the GM's dealer who acted inappropriately

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VOLUME 10, ISSUE 2 | 27

on a number of files. He was hoarding documents, signing for other dealer members, overcharging and generally abusing customers. That said, he was extremely charismatic and kept most of his activities under the radar.

Eventually, the General Manager discovered the activities of the Business Manager and took them to the dealer's senior management/ownership team. After an investigation the BM's employment was terminated.

It is important to note that much of the Business Manager's impugned activities resulted in significant financial gain for himself, and for the owners of the dealer.

Much less so for the General Manager.

In this case, OMVIC eventually issued a Proposal to Revoke against the Business Manager (as they should have), but also the General Manager! But not the dealer, nor the dealer principal. As a side note, and to the credit of the Licence Appeal Tribunal, this is something that the LAT member took OMVIC to task for at the hearing. How could OMVIC aggressively pursue a General Manager, but not the higher ups who would have been equally aware of the goings on in the dealer, and benefitted the most financially?

This matter proceeded to LAT for 13 days of hearing; despite repeated witnesses for OMVIC speaking highly of my client, his professionalism and hard work during COVID, OMVIC chose to complete the hearing and did not attempt to settle it.

In the past, in my opinion, this matter would have never gone to a hearing and would have been settled early on. A settlement involving some education and maybe some appropriate terms and conditions would have been reasonable

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and fair, and avoided the immense resources that are consumed when a hearing proceeds.

3 The Compensation Fund The impact of the AG's report has also (again, only in my opinion) impacted proceedings before the Compensation Fund.

The Compensation Fund is a bit funny because it is a consumer protection program financed by Ontario's registered dealers, but doesn't truly include them in the process of determining whether a claim to the Fund is valid or not. A dealer doesn't have official standing before the Compensation Fund, and is not entitled to make submissions or otherwise respond to allegations which may be made against it by a consumer.

I recently dealt with a Compensation Fund matter for another long-time dealer registrant (30+ years) located in cottage country. In this matter a consumer of the dealer approached the Fund further to his belief that the odometer on his vehicle had been rolled back prior to his purchase (by a previous owner, not my client); an alleged material fact which wasn't disclosed to him at the time of his purchase.

It should be noted that the consumer had not obtained a judgment from the Small Claims Court before approaching the Fund, as is typical of many claims submitted to the Fund.

The Fund ultimately accepted the claim, notwithstanding that my client vigorously objected to the allegation that the odometer had ever been rolled back.

My client maintained that the alleged odometer discrepancy, for which the only proof was a CarFax Canada report, was the result of human error in reporting to CarFax Canada, and not because anyone had in fact tampered with the odometer.

Notwithstanding my client's vigorous efforts, and despite a complete lack of clear evidence that the odometer was rolled back, the Fund approved and paid

out the claim. OMVIC subsequently issued a Proposal to Suspend my client's registration as a dealer pending repayment to the fund.

My client appealed the Proposal to Suspend was successful in having it withdrawn, but only to be served instead with the Notice of Complaint taking him before discipline AND a small claims court action by the Fund seeking repayment of the amount it paid out to the consumer – being the full purchase price of the vehicle.

Conclusion The above are but a few examples.

Maybe my feeling that the AG's report has already had a negative impact on the way OMVIC carries out its mandate is entirely wrong. Maybe it is merely a coincidence that I have a few more files that are more difficult to resolve than history would suggest they ought to be.

However, whether I am right or wrong, I think all registrants should take notice of the AG's report and be prepared for increased scrutiny into their affairs by OMVIC. Dealers should audit their own files, increase training and take a hard look at those team members who don't quite exemplify best practices and who may put you or your dealership at risk.

As always, I am happy to assist you and your teams to ensure your continued success.

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. ■

WHY EVERY DEALERSHIP NO MATTER HOW SMALL - NEEDS A CRM

By Angela West

THEY HAND OVER THE FUNDS, you hand

over the keys. Anyone who’s ever worked in a dealership knows that selling a car is never actually that simple.

From a test drive to the post-sale followup, there are a lot of moving parts to the sales process and if you can’t keep those parts organized, important details fall through the cracks. You’re only ever one dropped call or missed message away from losing business, and that’s where your Customer Relationship Management (CRM) comes in.

An effective CRM keeps all those details together in a single hub so you can see at a glance what stage a client is at, what appointments are booked, their contacts, and more. It’s designed to transform the way your team works, seamlessly streamlining client interactions so you can confidently manage potential and existing accounts.

What is a CRM? CRM software is essentially a database of all your customer data, accessible to designated staff members and constantly updated as needed. Think of it as a client library, containing records of every interaction, their contact details, notes on their file, specific activities, and feedback.

These platforms are a lifesaver for your

staff and are typically used by multiple departments including marketing, customer service, accounting and senior management. They simplify, store, and safeguard the huge volume of customer information that your dealership collects on a daily basis.

CRMs are particularly helpful for the service industries, where most of the company business is client-facing, but they don’t just improve the sales pipeline - they can also help dealerships plan campaigns, track the productivity of their sales team, and establish an effective workflow.

Even small-scale dealers should consider adopting a CRM, because you’re never too small to reap the rewards of better resource management. Spreadsheets can only take you so far, and quickly get chaotic as multiple staff members collate their own or store them haphazardly across teams.

If everyone is working in the same system, employees can drop in and out to get what they need without missing a beat. Haphazard processes hinder growth, whereas an effective CRM gives small dealerships a solid yet flexible foundation from which they can easily expand their operations.

CRMs for dealerships Since CRM hit its stride in the 1990s, the market has become flooded with software solutions, most of them now being cloudbased. Using a cloud-based system has clear benefits - secure storage, accessible everywhere so your employees can work remotely, and flexible enough to scale up as your business expands.

It is also important to note that a CRM is a different solution from a Dealer Management System (DMS), although some solutions that are tailored to the auto industry combine the functionality of both. A DMS is more about managing inventory and the administrative functions of a dealership than it is about customer service and management.

While there are many CRM platforms to choose from, broad-based templates aren’t always the best option for dealerships.

Most standard providers focus on business-to-business accounts rather than business-to-consumer, which is the mainstay of automotive businesses. Rather than investing in a generic program that needs a lot of advanced customization before it’s fit for purpose, dealers should consider out-of-the-box solutions, specifically tailored for automotive firms, to avoid unnecessary stress and spending.

VOLUME 10, ISSUE 2 | 29

EVERY DEALERSHIP NEEDS A CRM | ANGELA WEST

Dealersocket is a full-service CRM that’s ideal for dealerships looking to expand their operations with the help of an entrylevel platform. Suitable for franchises as well as independent and BHPH dealers, it consolidates your sales, marketing, call desk, data, website, and digital presence into a single dashboard.

Designed as a turnkey solution, Dealersocket shouldn’t need much tweaking. You can easily customize your dashboards and checklists to your preference but all features are already at your fingertips. These are all the things that a CRM should provide - real-time analytics, lead management, call tracking, sales cycle logs - along with a few extras, such as automated campaigns, database cleansing to keep your accounts current, and ROI reports across all channels from walk-ins to social media leads.

CDK Global - With big-name partners such as BMW, Mercedes-Benz, and AutoTrader, CDK Global is the go-to CRM solution for high-profile dealers. It also integrates with all other solutions in the CDK Global suite, including CDK Drive, the company’s DMS solution.

This system prides itself on being intuitive and easy to use. Everything is done from just one screen, employee onboarding is done in moments, and the entire platform can be used from anywhere

30 | THE ONTARIO DEALER

within your dealership, from any device.

So if your salesperson is on the lot with a client, they can whip out their tablet and quickly fill in the client’s contact details, preview financing options and more. Sales managers can also log in for coaching moments and enjoy a bird’s eye view of the entire sales ecosystem from a single interface.

Dealerpull - Probably the easiest CRM for a small business to implement, Dealerpull is perfect for small dealerships who are seeking a more efficient way to engage with customers but unsure about where to start. Their CRM lead management system allows you to input customers simply by scanning their drivers licence, you can assign these leads to a specific salesperson or leave them open for the team, and you can instantly send their credit applications to third party partners like Dealertrack for pre-approval.

Dealerpull keeps it simple, taking all the time-consuming manual tasks done by your sales team and automating them into leads, tasks, notifications, and accounts.

Changing your CRM If your dealership has been using the same CRM for years, it might be time to take stock. Is your current system meeting your needs? Are you putting up with less than ideal service because you can’t face switching to a new provider?

Change is tough but outgrowing your tools is even tougher. And, with the advent of cloud-based CRMs, porting over your dealership’s data is easier, quicker, and more secure than you’d think.

If you’re interested in finding out more about an automotive CRM, it’s a good idea to book a demo with your chosen provider.

Companies are always eager to show off their products and can guide you and your staff to see how it would integrate with your existing workflow. Most offer free trials so you can play with the features and see if it’s a good fit. Make sure your staff get a go - employee buy-in is crucial to the system’s success. After all, they’ll be the ones grumbling over any hiccups and the first to notice if it’s not working as intended.

When road testing your demo, keep an eye on its core functionality and don’t be dazzled by flashy features. Consider how well it integrates with your other platforms, such as your website and inventory. Think about its reporting capabilities - what milestones do you want measured and is it measuring those consistently enough? Is it improving the customer experience as well as the staff’s?

Dealerships live or die by the strength of their customer relationships. With a structured CRM in their toolkit, your sales team can nurture those crucial interactions, building engagement, converting leads, closing sales, and boosting brand loyalty. ■

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32 | THE ONTARIO DEALER