The Ontario Dealer - Volume 13 Issue 1

Honoring our Commitment as Your Trusted Provider.

Automotive

Basic Powertrain Coverage from Bronze up to Our Exclusionary Comprehensive Titanium Warranty.

Hybrid/ Electric Vehicle

Comprehensive Warranty Including Battery Coverage.

Road Hazard

O ers Roadside Assistance, Key Replacement, Windshield, Dent, Upholstery and Tire & Rim Coverage.

GAP Protection Plan

O ers Coverage for your Vehicle in the Event of a Total Loss Following a The t, Accident or Fire.

RV Motorized & Non-Motorized

O ers Coverage on Travel Trailers, Park Models and A,B & C Motorhomes.

Powersports

O ers Coverage on Land and Marine Powersports.

Leisure Protection Program

O ers Coverage on Electric/ Gas Powered Golf Carts, Lawn Tractors, UTV/Side by Side, Electric ATVs, Motorcycles & Bicycles.

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

Publication Mail Agreement #41890516

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

ADVERTISING SALES

Office: 647.344.9300

Advertising Inquiries

Gina Monaco

289.456.4617

gina.monaco12@gmail.com

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

Ronda Payne

THE DRIVER’S SEAT

"People rarely succeed unless they have fun in what they are doing."

DALE CARNEGIE 1888-1955 FOUNDER OF THE CARNEGIE COURSE

By James Hamilton, Executive Director, UCDA

DID YOU EVER NOTICE HOW SOME OF LIFE’S GREAT TRUTHS are really, at their core, based on common sense? Treat people the way you’d like to be treated - a bird in the hand is worth two in the bush - never forget to say thank you - kindness is its own reward - we recognize these fundamental principles when we see them and for that reason they are truly timeless.

Too often managers lose the forest for the trees and forget, at the end of the day, managing involves motivation. Motivation of yourself and others in a positive direction to achieve a common goal. Whether you are a Coach on a football pitch or the Captain of a fishing trawler, the duty of the manager is the same ... to Manage.

Consider Dale Carnegie who wrote “How To Win Friends And Influence People” (1936) during the dark days of the American Economic Depression.

Dale Carnegie was born in 1888 in Missouri and was educated at Warrensburg State Teachers College.

After an early career as a successful salesman, he traveled to New York and began teaching communication classes. In 1912, he started the famous Carnegie Course. He authored several bestsellers, including, “How to Win Friends and Influence People”, and “How to Stop Worrying and Start Living.”

Over 50 million copies of Mr. Carnegie's books have since been printed and published in 38 languages. Carnegie was a prominent lecturer of his day and a sought-after counselor to world leaders. He wrote newspaper columns and had his own daily radio show. Carnegie founded what is today a worldwide network of over 3,000 instructors and offices in more than 70 countries.

One of the core ideas in his books is that it is possible to change other people's behaviour by changing one's behaviour towards them.

This is a summary of his approach to management:

BECOME A FRIENDLIER PERSON

1. Don't criticize, condemn or complain.

2. Give honest, sincere appreciation.

3. Arouse in the other person an eager want. 4. Become genuinely interested in other people.

5. Smile.

6. Remember that a person's name is to that person the most important sound in any language.

7. Be a good listener. Encourage others to talk about themselves.

8. Talk in terms of the other person's interest.

9. Make the other person feel important - and do so sincerely.

10. The only way to get the best of an argument is to avoid it.

WIN PEOPLE TO YOUR WAY OF THINKING

11. Show respect for the other person's opinions. Never say, "You're wrong."

12. If you are wrong, admit it quickly and emphatically.

13. Begin in a friendly way.

14. Get the other person saying, "Yes, yes" immediately.

15. Let the other person do a great deal of the talking.

16. Let the other person feel that the idea is his or hers.

17. Try honestly to see things from the other person's point of view.

18. Be sympathetic with the other person's ideas and desires.

19. Appeal to the nobler motives.

20. Dramatize your ideas.

BE A LEADER

21. Throw down a challenge.

22. Begin with praise and honest appreciation.

23. Call attention to people's mistakes indirectly.

24. Talk about your own mistakes before criticizing the other person.

25. Ask questions instead of giving direct orders.

26. Let the other person save face.

27. Praise the slightest and every improvement. Be "lavish in your praise."

28. Give the other person a fine reputation to live up to.

29. Use encouragement. Make the fault seem easy to correct.

30. Make the other person happy about doing the thing you suggest.

Dealership managers might want to blow the dust off a book from the 1930’s and give it a read; you might just find a nugget there to help you address the challenges presented in 2025!

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To

THE LAW MATTERS

Curbsiders: Making Their Way from Selling on the Curb, To Selling at Your Dealership

By Hetash Singh, Associate Legal Counsel

STORIES ON VEHICLE THEFT AND FRAUD ARE FRONT AND CENTER in the news these days. With all eyes on these criminals, they have learned how to become more creative in their schemes. Crooks have even begun pretending to be salespeople online by creating fake profiles and collecting deposits from would-be customers. A recent bulletin released by the Peel Regional Police highlights that there seems to be no limits to the lengths

these criminals are willing to go to defraud unsuspecting victims.

The Peel Regional Police have made an arrest in a case involving a suspect operating a fake business called “Aponic Leasing”. The suspect would advertise luxury vehicles for sale on various social media platforms and collect deposits from wouldbe buyers. The only issue was that Aponic Leasing was not a registered dealer, and these vehicles did not exist in the first place. In one instance, the suspect even met a victim at a legitimate, but unaffiliated, car dealership and pretended to work there in order to ‘sell’ them a vehicle.

While law enforcement authorities are becoming more vigilant in cracking down on these bad actors, the police typically only become involved when the damage has already occurred. Dealers should take proactive measures of their own to help ensure that their name is not used fraudulently. While there is no foolproof strategy to eliminate theft and fraud, below is a non-exhaustive list of some of the measures your dealership may want to implement in order to help reduce these risks:

1. Only Allow OMVIC Registered Staff on the Sales Floor and Keep Staff Lists Updated

You should not need a reason to follow the law, but if you did here it is. The law already requires all

sales staff to be registered with OMVIC. Customers who interact with sales staff can easily verify whether they are registered to your dealership with OMVIC by searching their names on OMVIC’s website: https://omvic. powerappsportals.com/registrantsearch/.  Some dealers have incorrectly adopted the practice of allowing non-registered staff to entertain sales discussions with customers. Not only is this against the law, but it leaves customers in a position where they are unable to confirm whether staff is actually associated with your dealership.

It is equally important that you keep OMVIC updated regarding any personnel changes at your dealership. OMVIC requires that salespeople and dealerships provide them with notification, in writing, upon the commencement of employment or termination with a dealer. Information is no good if it's out of date. You will also want to keep your dealership’s website up to date. Have pictures of your friendly staff online for your customers to see!

2.Require Sales Staff to Wear Badges Identifying Them As OMVIC Registered Salespeople Affiliated with Your Dealership

While customers can look up sales staff on OMVIC’s website, most of them may not be familiar with this resource or simply won't bother to do so. Having your staff wear identification on the sales floor provides your customers with peace of mind. It can also help the customer to remember the name of your sales staff when they’re looking to leave you a rave review!

With the Ministry of Public and Business Service Delivery still considering the idea of off-site vehicle sales, it may only be a matter of time before salespeople are required to wear a visible badge identifying them. It may be worth getting ahead of the game, and it is still good business practice even if these reforms are not made.

3. Don’t Close Deals on the Hood of a Car

Implement a strict policy requiring sales staff to finalize deals at the dealership. Sales staff are always looking to make a quick sale. As important as it is to get the customer to sign the paperwork in order to seal the deal, it is equally important that the proper procedures be followed when selling a vehicle.

Getting the customer to sign the paperwork on the hood of the vehicle in bad taste. You should give them ample time to make their mind up about purchasing a vehicle, because it also opens your dealership up to fraud. At that point, what is stopping anyone from parking their car in front of your dealership and selling it by having potential customers fill out the paperwork on the spot? Requiring deals to be closed in a signing room provides an additional safeguard

against fraud. Customers can take reassurance in the fact that only authorized sales staff will have access to your signing room.

4. Keep your Premises Secure, Especially After Hours

With auto theft on the rise, dealers are already making sure to lock up and secure their premises in order to deter would-be vehicle thieves. Securing your building and parking lot, so that it is inaccessible after hours, also has the added benefit of ensuring that imposters don’t make their way onto your property to ‘sell’ vehicles to potential customers by impersonating a member of your sales staff.

5. Keep Online Inventory Lists Accurate and Up to Date

Keeping your online inventory updated is just good business practice. Many customers will spend hours shopping around online for the right vehicle before making the decision to approach your dealership. Keeping your inventory up to date, not only helps customers know that you have certain vehicles in stock, but it also makes it clear to them which vehicles are not in stock. If a curbsider approaches a potential customer, trying to sell them a vehicle by pretending to be a salesperson at your dealership, your inventory list should make it clear that the vehicle is not part of your stock. This should put the customer on notice that they are dealing with a fraudster.

6. Secure Your Presence Online. If You Don’t Someone Else Will

The “Aponic Leasing” incident is not an isolated one. The UCDA has

received a number of calls from would-be customers who have provided a deposit to a “dealer”, only to find out that they were dealing with a scam artist—likely located halfway across the world. In one scenario, the customer provided a $3,000 deposit online and an address for a “dealership”, only for him to arrive at a shawarma shop when it came time to pick up the vehicle!

Some social media platforms, such as Twitter/X, allow businesses to purchase verified membership status, which lets customers know that they are dealing with a legitimate business. What seems like an unnecessary expense may go a long way in terms of increasing your customer’s confidence when communicating with your dealership online.

Warn your dealership’s social media team of the threat of impersonators and/or fake profiles. Have your social media team perform regular searches on social media, so they can spot these fake profiles and report them to the social media platform to have them deleted.

The above list is an example of some of the steps that dealerships can take to help reduce the risk of their customers becoming the victims of fraud. As fraudsters become more creative with their tactics, so too will dealers in order to protect themselves and their customers.

Read the full bulletin from Peel Regional Police on the Aponic Leasing incident by following this link: https:// shorturl.at/MWScp - NewsDetail - Peel Regional Police (peelpolice.ca) ■

GOOGLE VEHICLE LISTINGS: A GAMECHANGER FOR DEALERS

By Angela West

Google Vehicle Listings allow your dealership to list your current vehicles for sale on your Google My Business profile, which appears at the top of most search results within Google Maps when people are searching for dealers in their area or your business.

Unlike Google Vehicle Ads, Google Vehicle Listings are free and provide the information your potential buyers want, without the need for them to click through to your website. Like any unpaid form of digital marketing, they require time to set up and maintain.

What are Google Vehicle Listings

It is important to distinguish between Google Vehicle Listings, which are unpaid and displayed on your Google My Business listing, and Google Vehicle Ads, which are paid and are the first results that show if someone searches for a specific make or model in your area. This can be confusing as a number of online sources refer to Google Vehicle Ads as “Google Vehicle Listing Ads.”

A typical Google My Business listing shows up in what industry insiders call the “map pack.” This appears above most unpaid search results. This map pack will come up if you use a more generic term, such as “dealerships Oakville.”

Google Vehicle Listings will show when you click on any Google My Business profiles as “Products” on the Google My Business listing.

While you can control the amount of information displayed in your listings, Google recommends including comprehensive details to satisfy searcher intent. Listings with more information, such as pricing, tend to be prioritized by Google.

Interested buyers can find all the necessary contact

information for your dealership directly on the listing, eliminating the need to navigate to your website. Additionally, you can track analytics when people use the call or email button from your Google My Business profile.

Why Use Google Vehicle Listings? There are numerous benefits to using Google Vehicle Listings, including:

Increased visibility: Expands your reach to potential customers by showcasing the current selection available at your dealership.

Enhanced mobile search presence: Ensures prominent display on mobile devices during local make and model searches.

Pre-qualified leads: Generates leads from individuals already interested in purchasing a specific vehicle your dealership offers.

Cost-effectiveness: Provides a budgetfriendly approach to reaching potential customers compared to paid advertising.

How to Get Started with Google Vehicle Listings

Before setting up Google Vehicle Listings, you will need to set up a Google Account and a Google My Business account if you don’t already have them.

You can provide your vehicle listings to Google in one of two ways: by uploading feed files or using structured data markup on your website. Uploading feed files is the superior method because it will instantly update on Google, where you have to wait for Google to crawl your website to find the structured data markup. Manual feed uploads also allow you to include more information about your vehicles.

However, if you don’t have time to do the manual uploads and need to automate this task, you’ll want to go with structured data markup. If you choose to go this

route, you’ll want to schedule time about once a month to verify that it is working, as a code change on your website could impede the process.

To find out more about using either method, visit Google’s onboarding guide for vehicle listings here: https://developers. google.com/vehicle-listings/onboarding-guide.

Best Practices for Google Vehicle Listings

Google recommends the following to get the most out of your vehicle listings.

Include high-quality images and detailed descriptions: Use professional, quality images and provide detailed information about each vehicle, including the make, model, year, mileage, and features.

Ensure listings are mobile-friendly: Make sure your listings are optimized for mobile devices, as many potential customers will be searching for vehicles on their smartphones.

Target specific keywords: Use relevant keywords in your listings to ensure that they appear in search results when potential customers are looking for vehicles like yours. Additionally, you’ll want to optimize your Google My Business profile with full descriptions and keyword use so that it comes up before other dealerships in your area. Part of that optimization process is getting good Google reviews; Google prioritizes dealerships with the most and best reviews in the map pack display order.

If you don’t already have a plan in place to solicit Google reviews from your happy customers, you’ll want to do that. Providing a direct review link through a QR code at the dealership or through email is the best way to do that, rather than relying on your customers to find out where to leave a review. You can find your review link by logging into your Google My Business listing and clicking Read Reviews → Get More Reviews.

Measuring the Success of Your Google Vehicle Listings

You’ll be able to view the analytics for your Google Vehicle Listings on your Google My Business profile by clicking “Performance”. You will be able to see the number of views on each product, and more general information such as how many users visited your website or called your dealership from your profile.

Optimizing both your Google My Business profile and adding Google Vehicle Listings will result in more leads and put the information people want when they’re ready to buy right in front of them. The time you spend on this will have a significant impact on converting top-of-funnel buyers, so it’s definitely worth doing. ■

IT’S THE NEW YEAR: ARE YOU READY TO GROW?

WAYS TO DRIVE GROWTH

By Phoebe Wolfe

A NEW YEAR, A FRESH START. What are your plans? A new site? Higher sales? Improved selection in your inventory? Reducing expenses?

Let’s address some potential ways to drive your dealership’s growth, including reviewing your internal processes, redefining your marketing strategies, and adding new services to your roster.

Start with Targeted Meetings

If you leave updates to casual chats between customers, no one can properly focus on the topic of discussion, including clearly identifying problems and coming up with solutions.

Without effective communication between you and your team, your growth plan may actually shrink. A disorganized business can’t grow effectively, so it’s crucial you set and maintain expectations for daily, weekly, and monthly communications. Highly focused meetings can help.

Start with regular meetings for your staff to provide updates on their work, even

if your sales team is only two or three members strong.

Have a unique plan of growth—such as construction—on the books for 2025? Conduct meetings separate from your regular ones to focus on such a large project and keep things moving forward.

By staying on top of progress, you address roadblocks early on, instead of letting things fester from minor problems to major (and sometimes expensive) setbacks.

Consider Software to Help

The right kind of software—after you’ve mastered the requisite learning curve—can greatly improve internal communications.

Project management programs allow you to assign and update tasks as each step is completed. With clear deadlines and checkpoints, you can spend less time micromanaging and more time looking at the bigger picture of expanding your dealership.

Software solutions exist for all sizes of dealerships. Even if your staff consists of three sales reps, one office administrator/ bookkeeper, and the owner, something easy and inexpensive, like the scheduling tools that come with Outlook, can help considerably.

Another popular solution for small businesses is Todoist, whose most expensive package costs $96 USD/year/ user. It lets you put all your projects and tasks in one space that staff can easily access from their computers or phones as needed. If you’re a manager, you can keep an eye on progress while reducing the need to interrupt your team during the day.

Get Your Numbers Lined Up

You can’t keep proper track of your business—let alone expand it—if you don’t have a solid accounting process in place. Your internal communications and accounting procedures need to be able to adjust and expand as your company grows.

“What some people don’t necessarily realize,” said Greg Clarke, a partner at SB Partners, an accounting firm that services dealerships, “is that putting a financial plan in place along with a growth strategy is important because that will help you realize how much financing and how much working capital you need to meet your goal.”

Also, ensure your back-office processes are solid, and if they need updating to accommodate your growth, implement those first.

Just like in the days of yore, when you could park cars in the back lot and not

worry about theft, you could run your accounting with paper receipts, cheques, a printing calculator, and a ledger book. But today, you have effective and secure processes in place to protect your inventory. Similar dedication to ensuring your accounting and (digital) paperwork accurately capture your financial picture needs to be in place.

“That comes from having the right people in place to do the work,” Clarke said. “You need to have systems and processes in place that are followed regularly to ensure the reporting is up to date and to protect the owner-manager from potential problems like errors in processing or reporting, or potentially fraud.”

Don’t Jump Before You Plan

Working capital is key to an effective growth strategy, Clarke said. “If someone wants to undergo a big growth strategy, they need to ensure they have sufficient working capital in place to fund the growth.”

Growing your dealership requires large cash outlays before you realize any revenue. “Not having the capital in place ahead of time,” Clarke said, “will probably result in you not meeting your target. Essentially, you’ll run out of money.”

Whether you only sell cars, are a small garage with a used car inventory, or run a multi-site auto group, all the moving pieces you juggle make it easy for things to get billed incorrectly or lost. What may be a tolerable situation at your current size will easily grow out of hand once you’ve expanded your dealership. As you build these processes, leave room for flexibility so they can be scaled for growth as you hire more people and take on more customers.

Help Your Staff Achieve Success Through Growth

Dmitri Sankov, general manager for Tony Graham Toyota in Ottawa, explained that their staff sometimes struggled selling used cars. Well versed in the Toyota and Lexus brands, sales staff often didn’t know enough about the myriad brands coming onto the lot through trade-ins and other used inventory channels.

“They’re not aware of the product brand as much of a different make,” he explained. “So, by going to a different location and having an open mind on the sales floor, we sell multiple brands on that location and then capitalize on not being biased toward Toyota and Lexus.”

Whether you’re expanding to a new site or growing your current one, understanding where your staff excel and where they need improvement needs to be part of your plan. Your staff are the face of your dealership, and that expectation will stay as you grow. Ensure your staff are well trained on how to represent your brand image when they interact with potential customers. This means they should know your brand’s mission and core values.

Sankov said it was important in their expansion that managers and operators uphold the same ethics on the new lot as their others. Because Tony Graham Auto Group keeps their processes the same across sites, from paperwork to test drives and product selection, customers don’t feel like they’re going to a different dealership.

Setting expectations for staff behaviour, both in and outside of the dealership, is key. Sales meetings can be a useful time to create a space for your staff to share successes and concerns as your dealership prepares, works through, and completes its growth plan.

Connecting with Customers

Operating a successful dealership hinges on customer relationships. If people don’t feel comfortable on your lot, your chances of securing a sale are slim. In

addition to clearly outlining the expected behaviour for your staff when interacting with customers, consider asking customers for input.

Think of it this way: how often has software on your computer updated, screaming new features at you that you never wanted and that now require you to spend (waste?) time learning?

(If you’ve been in business long enough to remember Microsoft Word’s paper clip, you know exactly what we’re talking about here.)

Customers, of course, will never be in charge of your growth plans. But asking for frequent feedback on your existing services and suggestions for future additions can confirm if your goals will serve the community you’re focusing on. Send out a survey to gauge a customer’s feelings toward their experience with your staff with room for them to offer any constructive criticism.

Feedback won’t always be glowing. Instead of avoiding critiques, use them as an opportunity to improve by reaching out and offering a chance for resolution. Learning to take negative reviews in stride will help you better tailor your services to your target audience and establish your dealership as a friendly environment.

Building bonds

Many growth strategies require additional staff. Don’t wait until it’s time

to hire to advertise how enjoyable and fulfilling it is to work at your dealership. Promote current employee satisfaction by hosting team-building exercises and socials for your staff to enjoy each other’s company and form bonds. This can lead to employees leaving positive reviews of your dealership as a place to work, increasing the chances you’ll find the right people to fill in the gaps growth often leaves.

Moreover, customers will feel comfortable interacting with your staff if they sense some comradery and collaboration between them. Customers want to know your team is working together instead of against one another. Although things can get a little competitive in sales, ensuring your staff share mutual respect and support for one another is crucial to establishing your dealership as an inviting place to secure sales.

Marketing Strategies and Your Reputation

Your growth is likely to be limited if you aren’t effectively marketing your services. As you create a plan for future growth, carve out some time to assess your marketing strategies.

“I do find some bigger auto groups will do the extension—the independent dealership—but for some reason they hide their branding,” Sankov said. “You have a following, just multiply it. It’s massive organic marketing on its own.” Whatever your branding plans, review your target markets and confirm they’re an accurate reflection of the people you see (or hope to see) on your lot. Find out what mediums and social media platforms (if any) your ideal customers are on and direct your marketing effects to those streams.

“I would highly recommend to carry your reputation forward,” Sankov said.

Now Might Be a Good Time to Start Leasing

With the trials brought to the automotive industry during and after the pandemic, inventory has taken a solid beating.

“The supply of new vehicles has helped normalize [used car] prices,” Rozmin Patel, managing director for AUTO|ONE Group, wrote in an email. “People are phasing out of working from home, which has helped increase demand.”

If you don’t already offer vehicle leasing, take the time to assess if it’s feasible to incorporate it at your dealership.

A leasing program offers your customers more flexibility and affordability and creates opportunities for future revenue for you.

“Precovid,” Patel wrote, “the lessee kept the lease for generally 80% of the original lease term, with the average lease term being 48 months.” Now, he said, the tendency is to hold on to the lease to the end or even extend it by 12 to 14 months, because interest rates have increased.

A leasing program also helps you move cars off your lot faster. With vehicles constantly being leased out and returned, you’ll always have fresh inventory to offer.

Review Your Existing Leasing Program

According to Patel, fintech focused on automotive has decreased the average shopping cycle from 8-10 weeks to 4-6 weeks. With interest rates now on the decline, too, he expects an increase in car sales.

To meet this demand, ensure your

dealership has the most recent information available about your vehicles. A digital presence here is crucial, as most customers start their vehicle search online.

Also review your procedures for moving customers to a new vehicle once their current lease expires. Offering early inspections and appointments to discuss a customer’s next vehicle will make the leasing experience more enjoyable and potentially increase word-of-mouth referrals.

Complying with OMVIC

Everything your dealership does in terms of growth needs to comply with OMVIC. When you renew your registration with OMVIC, you must disclose any plans you have for upgrading your services and confirm they still align with OMVIC requirements.

Under various codes and acts, OMVIC protects and raises awareness of consumer rights and sets conduct expectations for dealers and salespeople. OMVIC documents include guidelines for dealers regarding advertising, premises requirements, financial responsibilities, online sales, and more.

If you need to review OMVIC requirements to ensure you comply as you grow, visit OMVIC.ca.

Pushing Through Growing Pains

Growth isn’t always linear. At times, it may feel like you’re taking one step forward but two steps back. Don’t let minor setbacks discourage you: finding the perfect combination of internal processes, marketing strategies, and additional services is a long-term project. Stay flexible and optimistic and you’ll be able to welcome the growth of your dealership at a manageable pace. ■

MASTERING VEHICLE DEALERSHIP INVENTORY OPTIMIZATION WITH DATADRIVEN ANALYSIS

By Angela West

INVENTORY OPTIMIZATION CAN MAKE OR BREAK YOUR BOTTOM LINE. Luckily, we live in a time where technology can help you optimize your inventory. Data paired with solid fiscal strategy can help you lead with data-driven decisions.

Obviously, things can come up which derail even the best forecasts, but these can even be accounted for by regularly recalculating your inventory turnover ratio and other fundamentals.

Calculating inventory turnover ratio

Before you start, you’ll want to calculate your ideal inventory turnover ratio. The Business Development Bank of Canada recommends using the following equation:

Inventory Turnover Ratio = Cost of Goods Sold (COGS)/Average Inventory.

Most retailers also call the cost of goods sold the cost of sales. It includes your cost of the vehicles, and any discounts/ incentives offered (e.g. free service packages, free tires) and other direct

costs incurred by the sale (e.g. freight for vehicles). It does not include operating or indirect costs.

Average inventory is arrived at by adding the cost of your inventory at the start of a given period (usually 12 months) and inventory at the end of the period together and dividing that sum by two. Lotlinx says that the general ideal turnover ratio for dealerships is 12, meaning that inventory should be moved within 30 days. However, you should run the numbers for your own dealership to make sure that number is accurate for your own business rather than using that suggestion. Items in the equation, such as COGS, are also used to calculate your gross profit margin.

Once you have the general inventory turnover ratio, you’ll also want to do the same calculation for commonly sold makes and models. This will help you determine over time what your most and least profitable vehicles are.

Once you know your ratio, you’ll be able to set a goal for how long a vehicle can be

parked on your lot. You can set up most dealer management systems (DMS) to flag when a vehicle is getting close to its expiration date, at which time you can engage in aggressive marketing and/or offer deeper incentives to move it.

Inventory management technology solutions

Dealership management solutions, such as DealerTrack and CDK Global, have inventory management built-in as an intrinsic part of their solution. If you want additional capabilities over and above what they have to offer, have a look at solutions like Lotlinx, DealerSocket, or VinSolutions. These solutions can offer additional features and more data that can help you make better decisions about your inventory.

DealerSocket, for example, has a feature which will help you maximize your inventory and view profit per day, allowing you to make real-time decisions about your inventory. Lotlinx uses its AIpowered predictive analytics to forecast which vehicles will make you the most money.

Determining the right inventory mix with data

While you already have a good idea of what moves and what doesn’t on your lot, your inventory turnover ratio is a good starting point to make more data-driven decisions. Most DMS’s and other inventory management systems will give you the analytics you need on vehicle sales to determine if you want to order more or less of a particular model. As time goes on, you may be surprised at how many of your assumptions are challenged. A particular model may, for example, have a better inventory turnover ratio than you thought it did.

You can use the data you collect to forecast near-future demand. Customer feedback and industry trends are additional things you want to pay attention to when doing your forecasting. If, for example, your customers are giving good feedback about a particular model, you can up your forecasting scores for it as they may be recommending it to friends. General industry trends are also worth paying attention to, with an eye to whether or not they will apply in your local market.

Getting a handle on inventory financing

All of the major Canadian banks offer

some form of dealership inventory financing, but A-lenders are notoriously tight-fisted at the moment. You should always have more than one financing source at the ready just in case anything goes wrong with your first choice, and you should be shopping around for the best rates at least once per year. B-lenders such as Driven, Greenbox Capital, and others are worth looking into to make sure you have a safety net in place.

Managing your suppliers

It’s easy to fall into the pattern of relying on a few good suppliers. Trying a new one can be intimidating, as they may not be as solid as your current partners. However, it is necessary to ensure a consistent supply chain for your lot.

If your current suppliers don’t see themselves being replaced, they’re less likely to offer you incentives to stay with them. You’ll want to regularly review your supplier contracts to make sure they fall in line with what you want outside of pricing, which hopefully you are regularly reviewing already. Look at trying at least one new supplier per year to see what kind of job they can do for you to avoid getting complacent. Start with small purchases and ramp them up if they do good work.

If you’re going to do one thing suggested in this article, choose calculating your inventory turnover ratio and using the math it gives you to boost profitability. If you’re going to do two, consider adding an inventory management solution to the mix which automatically does that math for you and offers analytics that you can use to make data-driven decisions about the vehicles you bring onto your lot.

The profitability of your business is your number one priority, and without an inventory optimization strategy you could be throwing cash out the door that you don’t even know about. Let technology help you with thatdealership technology solutions have evolved significantly, and are worth another look if it has been a while.

Resources

1. Business Development Bank of Canada, Inventory Turnover Ratio, https:/www. bdc.ca/en/articles-tools/entrepreneurtoolkit/financial-tools/inventoryturnover-benchmarking-tool

2. Lotlinx, Inventory Management Best Practices: https://lotlinx.com/inventorymanagement-best-practices/ ■

TECH TALK

By Angela West

WINTER DRIVING MUST-HAVES

It’s that time of year when driving becomes more challenging with slush, ice, snow, and other drivers who think winter tires are a bad suggestion. We’ve got a roundup of apps and gadgets to make your commute easier, safer, and even cozy.

Drive Weather app

Google Maps is usually pretty good about showing you real-time weather conditions, but why not get an app that can predict the weather along your route?

Drive Weather will show you current road conditions and predict what will happen along your route. It works in both Canada and the United States.

It offers automatic updates based on location and speed without the need for a new search, allowing for handsfree operation while you’re driving.

Download it wherever you get your apps.

Cold weather dashcams

Visit https://shorturl.at/lVJeX

While most dashcams will work well in all weather, the BlackVue advertises itself as working at -20 Celsius. If it is colder than -20, hopefully you don’t have to drive anywhere! The BlackVue DR900X2CH Plus model can run a bit warm, which can work in your favour in colder conditions with some built-in deicing.

For extreme weather conditions that regularly fall below -20 Celsius, the Thinkware U3000 4K UHD Dual-Channel Dash Cam is recommended. If you choose this option, you may want to have it professionally mounted for the best placement, since the DIY option will put it somewhere where it will be easily obstructed by snow and ice.

Mounting to the windshield tends to keep away slush and ice, with a recommendation from the company to wipe it down along with your windshield before you drive to be sure that it is clear. They also recommend initial installation in the centre top of the windshield.

To make sure it is working when the vehicle is parked, consider a dashcam battery pack with it.

Windshield Treatment Kit

This hydrophobic coating for your windshield will repel rain and make ice removal easier. Some customers even claimed they didn’t need their wipers in a rainstorm! The only downside is that it should be installed in a heated area, so you may have to wait until spring to install it if you don’t have access to a heated garage.

Buy it at spotlessmaterials.com.

The AKTV8 Pressure Tech kit comes with four sensors that link up via Bluetooth to the PressureTech app on your phone. Designed for commercial truck drivers and priced at around $450, it may seem like overkill. However, it offers far more than the usual data than similar kits for passenger vehicles which cost around $100.

Apart from pressure, you can get temperature alerts for each vehicle you have it installed on, and get real-time data from any vehicles on your app. While it can be used for a light vehicle, this may be an ideal setup to think about for summer months if you’re towing an RV.

The sensors easily install on your tire inflator caps and are engineered so that you can easily use an air pump on them while they are installed.

In Canada, it is available on Amazon and you can find out more about it at https://aktv8.com/pressuretech.

Heated Car Blanket

Are you a stickler for tire pressure and want the ultimate system for it? Here it is.

If you’re driving around an older family member this winter, or have a passenger princess who would love to be a little more toasty, consider a heated car blanket. These electric blankets plug into your car’s power port and turn your passenger seat into cozy heaven. You can find them at most Princess Autos or by doing a search for “heated car blanket” on Amazon.ca.

Vehicle Emergency and Safety Kit

While it isn’t a gadget, your vehicle’s emergency kit may be due for an upgrade. For the winter, the Farmer’s Almanac recommends that you pack the following:

• BLANKETS, SOCKS, AND WINTER WEATHER GEAR LIKE SOCKS AND HATS

• FLASHLIGHT WITH EXTRA BATTERIES, OR A HAND-CRANK FLASHLIGHT

• BOOSTER CABLES

• FIRST AID KIT

• MULTI-TOOL SUCH AS A SWISS ARMY KNIFE OR LEATHERMAN

• ROAD FLARES & REFLECTIVE TRIANGLES

• EXTRA WINDSHIELD WASHER FLUID

• BOTTLED WATER

We’re going to add a bag of salt and a bag of kitty litter to that list, as well as a flat piece of wood that can be used to place under a tire with the kitty litter if you get stuck. Your trunk may be a bit more full than you’d like, but you’ll be thankful for any of these items if you need them.

If you want to store these items out of the way of your main trunk, do a search on Amazon for trunk organizers. ■

At Celebrity Auto Sales, they treat you like a star DEALER PROFILE

By Ronda Payne

ASK TIM KALBFLEISCH, OWNER OF CELEBRITY

AUTO SALES in Elmvale, how he came to have his own dealership and he’ll tell you it came from a lot of prayer and having someone who believed in him.

Like most people in the used vehicle business, Tim has always liked cars. He thought he’d be a mechanic one day, but life takes its own range of twists and turns and now, he’s exactly where he wants to be.

“I’m a car guy. I have always been related to this business and did a few other things here and there,” Tim says. “I’ve always tinkered with cars and small engines. I did my automotive course years ago.”

As his career began, instead of becoming a mechanic, he got into parts sales, leading to a lot of travel time. “I was selling parts for a couple of dealerships,” he says. “Being a parts representative kept me on the road all over the place.”

Celebrity Auto Sales

From parts sales, he went into the marine and snowmobile business. Then, in time, he got back into automotive when he started working for Langman’s Auto Service in Elmvale. Tim was a key part of the business, helping the owner wherever needed and, eventually, he took on assisting with sales of the five or six cars that were often on the lot.

“They shipped me off to get me licensed,” he says. “I worked for him for many years.”

But that path came to an end when the owner retired and the new buyer didn’t keep Tim on. It was a challenging time because if he’d had the money, he would have bought the business. Instead, he turned to God for guidance on what was to come next.

“We’re very strong Christian people and we prayed about it.” It was time to start Celebrity Auto Sales.

Not only did Tim and his wife’s faith lead him in the direction of an old, abandoned car lot, but the faith their congregation’s pastor had in Tim played a hand as well. In 2007, He became Tim’s backer in the business.

“He told me, ‘I’ve got confidence in you and I know you can do this,’ he was someone who believed in me,” Tim says. “He’d been in this business too. He had a dealership before he became

a pastor. He told me I need to do this.” The lot hadn’t been used for over a couple of years and came complete with an old construction trailer. Tim took the axles off the trailer, gutted it, put in new flooring and created his own stand-alone welcoming office, central to the lot.

“I came in and made a deal and cleaned the place totally up and re-did it. It looks like one of those portables now. It’s on the ground and looks real nice,” he says. “I have a beautiful little propane stove that heats my office and air conditioning because a tin box gets warm in the summer.”

Getting water on-site was something of a challenge, though not for Tim. He found an easy solution that involved engaging with his community.

“We do not have water in this place. I have a gentleman next door who has a dental office and I can get water from him to wash my cars,” he says. “I shovel his sidewalks and do garbage for him and he lets me use the facilities.”

It has become a win-win relationship. Something that Tim is very familiar with when working with his customers. He started with six cars on the lot and has grown to just shy of forty. Two years after that initial support from his pastor to get started, Tim secured the funding he needed for the operation to continue growing and buy out the

startup funding. A true sign that things were going in the right direction – and they continue to do so.

“I’ve had more cars in the last year and a bit more than we’ve generally had, but money has been flowing so I’ve been going with it,” he says.

He’s particular about the cars he selects because he truly means it when he says, “At Celebrity Auto Sales, where we treat you like a star.”

“We’re always looking, but I want the right car. I hand pick and I’m very fussy,” Tim says. “If I don’t like something or if I’ve already bought it and my mechanics say ‘no’, I’ll crush it. No way will I sell it. If I won’t put Celebrity Auto Sales’ and my reputation and my name on a vehicle, I won’t sell it. The buck stops with me.”

He leans away from higher-end imports because they are expensive to fix and instead goes for family-friendly pickups, SUVs and cars.

“It used to be the vehicles under 10 grand, but since COVID has happened, what I was retailing automobiles for before is what I’m paying for them now,” he says.

It’s a common problem in a busy market. Tim also understands that the consumer is feeling pinched by the price increases and wants to ensure they get value for their money.

“I stand behind it. I put an in-house warranty on everything I sell and we also offer extended warranties,” he says. “People that have got to know me, they know before they leave with the car, I go through the whole automobile with them. Every single automobile here, I’ve driven it for at least a couple of days because I want to know that the bugs and kinks are worked out.”

Driving the cars and getting to know them are a by-product of the trust he

has in the mechanics he’s used for several years.

“I've actually got a couple of shops now that do my work, one guy gets about 95 percent of it,” Tim says. “I trust him. They’re very good and they take good care of me.”

The same way he takes care of his customers. He puts everything on paper and if something goes wrong, he wants to have a conversation to sort things out. He’s even had one family who has bought half-a-dozen cars from him.

“If there’s something wrong with that car after, come to me. Let’s see what I can do,” he says.

He’s done things like split the cost to repair a wheel-bearing that’s gone three months after the purchase. He’s even bought cars back from people when they aren’t likely to be happy with their purchase.

“I’ve said to people, ‘I don’t think this is the right car for you,’ because I can tell they're never going to be happy with it,” he says. “That’s not what I want.”

He’s also talked people out of buying cars and convinced them they’ll come out better financially by fixing up the car they own.

“I’ll tell you upfront,” Tim says. CarPages.ca, word of mouth, his website and a big sign on the trailer-turnedoffice on the lot are his only methods of advertising and they serve him well.

Given his faith, Tim gives a lot of his time and donations to his family’s church and he also gives regularly to the local food bank. As the sole employee of Celebrity Auto Sales (along with his wife who helps with the bookkeeping) he decides what matters most and with Tim, it’s obvious.

“This business doesn’t belong to me. It belongs to the Lord, I’m just a vessel.” ■

THE COMMON LAWYER

New Year, Renewed Focus: Compliance

By Justin Jakubiak and Emily Lynch

HAVING WORKED IN AND ADJACENT TO THE AUTOMOTIVE INDUSTRY for most of my legal career, I understand the excitement and trepidation that is brought about by a new year. Based on conversations with dealerships, owners, salespersons, lenders, as well as manufacturers, this new year brings more trepidation than is typical, especially given the strange economic and political headwinds.

In times like this, I like to guide clients to look to the future with purpose and determination, but also with a concerted plan to avoid costly mistakes. A new year requires a new commitment to sales and service excellence, but also, and maybe most importantly, compliance and best practices.

It's easy, especially when times are challenging, to be tempted to skirt some of the rules in favour of making the 'deal' or increasing profit margins. My retort

is simple and direct – don't. As many readers will know, OMVIC has increased its investigative resources and is working very hard to crack down on poor and illegal practices. OMVIC's focus has expanded beyond frequent fliers and as a result many established dealerships, without any prior OMVIC history, are finding themselves in OMVIC's crosshairs for the first time.

Rules and Regulations

Dealerships and motor vehicle salespersons operate in a highly regulated industry. As we know all too well, regulated industries are subject to strict guidelines and requirements, primarily designed for the benefit and protection of consumers. These guidelines and requirements mean that businesses and their employees must jump over numerous hurdles when going about their day-today operations to remain in compliance. Violating or not following regulatory requirements will result in consequences such as fines, legal and disciplinary action, reputational damage – and worst of all – potentially a Proposal to Revoke registration seeking to revoke the dealership's registration, or that of a particular salesperson.

Advertising motor vehicles is heavily regulated and heavily scrutinized by OMVIC – notwithstanding these facts, advertising is one of the number one reasons dealers reach out and request our help. Despite all-in pricing being the law for many many years, a significant number of industry veterans still don’t

understand the rules around all-in pricing or chose to feign ignorance at great legal peril.

An advertisement is anything that persuades a customer to buy or lease a vehicle. This includes printed materials (newspapers, flyers), listings on the internet (dealer's website, online marketplaces), posts on social media, signage, and radio or TV. Advertising is crucial to bringing potential customers to your door, and so it's even more crucial that these rules aren’t ignored.

Marketing your dealership requires striking a balance between creativity and compliance in order to reach potential customers in personal and creative ways. With an understanding of these requirements established under the Act, a dealership can avoid expensive consequences and still achieve strong marketing results.

Motor Vehicle Dealers Act

The MVDA and its accompanying Ontario Regulation 333/08 provide strict requirements for advertisements, such as (but not limited to!) the following:

False advertising – Dealerships and salespersons are prohibited from making false, misleading, or deceptive statements in advertisements, circulars, pamphlets and other marketing materials.

Providing clear information – Any advertisement that aims to induce a trade of a vehicle must clearly and prominently include the registered name and contact

information of the dealer, with some exceptions.

Daily rental vehicles, emergency vehicles, taxis, and limousines – Any advertisement that aims to induce a trade in any of these types of vehicles must clearly and prominently say that the vehicle is one of these types of vehicles.

Model year – If an advertisement includes the model year of the vehicle and the model year is the current or the previous model year, the advertisement must specify that the vehicle is a used vehicle (if it is in fact a used vehicle).

Price:

Availability – An advertisement for the sale of a vehicle shall not say the price of the vehicle unless the vehicle is available from the dealer at that price during the time to which the advertisement applies.

All-in pricing – If an advertisement indicates the price for a vehicle, the price must be the total of the amount a buyer will be required to pay and all other charges for the vehicle, including charges for freight, inspection before delivery, fees, levies, and taxes, with some exceptions.

Limited quantity – If an advertisement says the price of a vehicle and there are a limited number of vehicles available at that price, the advertisement must clearly say the number of vehicles available.

Extended warranty – An advertisement that says that an extended warranty is included with the purchase of a vehicle must provide certain details regarding the warranty and its benefits.

It's also worth noting that dealerships are also subject to the general requirements of the Consumer Protection Act and Canada's anti-spam legislation (CASL), which are not covered in this article.

Enforcement

OMVIC monitors compliance with all aspects of motor vehicle sales transactions, especially advertising. Dealerships who don't comply with the requirements can face serious administrative actions or provincial offence charges.

Reputational damage is a serious risk as OMVIC publishes both its enforcement steps, as well as the results of same. This means that there is often reputational damage even if the dealership is cleared of wrongdoing.

Administratively, OMVIC can address violations of the advertising requirements by (1) directing a dealer to retract or correct false, misleading or deceptive statements; (2) obtaining an order requiring registrants to take further educational courses; (3) seeking an administrative monetary penalty before OMVIC’s Disciplinary Tribunal; or (4) issuing a Notice of Proposal to Revoke or apply conditions to a registration.

OMVIC can also lay charges before the Provincial Offences Court, potentially leading to a hefty monetary fine.

There are other potential consequences for false advertising. If a dealer or salesperson has engaged in false advertising, they can be required, on a go forward basis, to receive approval of all statements to be used in marketing before publication. Being subject to such an order creates an additional hurdle and can materially impact a dealer's ability to compete with other dealers in a meaningful and timely way.

A Case Study

The law requires that the advertised price to buy or lease a vehicle must include all fees and charges that the dealership will collect, except for HST and licensing fees. This requirement is designed to eliminate surprises and provide customers with clarity about what's included in the price they are going to be paying.

The requirement for all-in pricing means that if the dealer has to charge for any freight costs, PDI-PDE costs, administrative fees, OMVIC transaction fees, certain government taxes, safeties, or other fees, these need to be built into the final advertised price.

While this concept may seem simple, dealers should be very cautious since it is strictly enforced by the Registrar and her team. A recent case before the Licence Appeal Tribunal involved the Registrar bringing forward a proposal to revoke a dealer's registration based on the dealer's alleged failure to comply with the all-in pricing requirement.

The dealership, based in Cornwall, ON, had a bit of a history with two earlier discipline orders made against it for failing to comply with all-in pricing. The first time, the dealership was fined $4,800, the dealer principal had to complete an educational course, and all other sales staff had to review OMVIC's advertising webinar. Two years later, the dealership was again disciplined and fined $5,000, the dealer principal and the salesperson were personally fined $500 each, and all salespersons had to complete an educational course.

On this third occasion, an OMVIC investigator had once again attended the dealership posing as a potential customer interested in buying a used Honda. The dealership had properly labelled the vehicle's price as $33,500 plus HST and licensing, but the investigator recalled being told that there was an extra $399 administration fee – a violation of the all-in pricing requirement.

Luckily, the dealership was able to provide prior bills of sale that proved that it was their usual practice to include the $399 fee in the advertised price, not to add it on top. The Tribunal accepted this evidence and directed the Registrar not to revoke the dealership's registration.

This case can provide readers with two lessons. First, ensure you are properly documenting your sales and other transactions to potentially protect yourself in the future. Second, the advertising requirements are not taken lightly, and certainly not worth risking your business over.

Strategies to Try

To stay in compliance but also maximize the effectiveness of your marketing efforts, consider these suggestions.

Understand the regulations and requirements – Don't let advertising fall to the back burner of your dealership's operations. Make sure that you or someone on your staff knows the requirements inside and out. It's easier to know the requirements you have to meet before you start brainstorming a new advertising idea than it is to have to scrap your advertisements later on. Don't forget to monitor for any new changes that may be made to the Act or its Regulations.

Create a review procedure – Even if you think you understand the requirements and that your new advertisement complies, it's a good idea to have someone review the advertisement before it's published. Come up with a checklist to make sure all information included in the advertisement is accurate and ensure your publishing timeline leaves enough time to review. Better to be safe than sorry.

Build relationships with regulatory authorities – when marketing in a highly regulated industry, it can be valuable to build relationships with those who are in charge of ensuring compliance. Having an open line of communication with OMVIC to ask questions and seek guidance about proposed advertising strategies and clarification on the Act's requirements can be a useful tool to reduce headaches later. For example, OMVIC publishes guidelines for dealers on its website to assist in navigating the requirements under the Act. OMVIC also publishes educational resources, seminars, and webinars to help you get familiar with the requirements. Dealerships can also contact their OMVIC Inspector for help.

Review the requirements of your advertising channels – In addition to requirements under the Act, if your dealership publishes advertisements on digital platforms such as Google and Facebook, these sites may have their own requirements to be mindful of.

Conclusion

Keeping up with the varying requirements and regulations can be daunting on top of the other obligations involved in running a successful dealership. As necessary, seek legal advice to ensure your marketing and advertising efforts are compliant.

Wishing you a healthy, prosperous and compliant 2025!

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. Emily Lynch is an articling student.

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

WEATHERING THE OFF-SEASON

By Ronda Payne

PRE-PANDEMIC, MOST USED CAR DEALERS WENT INTO JANUARY knowing the upcoming quarter would be a slog. Not just because of the need to remove the snow from the lot and cars, or staying on top of muddy boot tracks in the office, but because sales traditionally were lower from January to March. Sales during COVID were anything but sluggish, but now, in the pandemic’s wake, some have seen a return to the familiar off-season while others have not.

Many dealers have learned how to weather the winter while others are seeing a lack of traditional patterns. No matter how it’s faced, there are ways to address the months that don’t deliver what Santa was supposed to bring for the new year.

Butch Douglas, general manager with Bayview Auto in Belleville, was in the middle of receiving a fresh load of cars when The Ontario Dealer reached out.

“It is the off-season, but we’re going to make it not the off-season,” he says. “It’s a tough market.”

Correct prices regularly

His strategy is similar to that of other dealers. He is “cherry-picking” the best cars and adjusting pricing regularly so vehicles don’t sit. The markets are moving so quickly that a dealer can’t afford to wait to drop prices. Adjustments should generally be done weekly.

“I think you’ve just got to be on the ball 24/7 now,” Butch says. “I buy some and I adjust what I already have as the new ones come in.”

There are no obnoxious radio ads or promos for free pony rides offered at Bayview.

“People are sick of gimmicks,” he says. “There’s a price, there it is.”

He adds that the threat of tariffs from the US may have an impact on the Canadian market. While price corrections have put used cars closer to typical values, down from the inflated prices during the pandemic, tariffs

would further drop those prices as more cars would be staying in Canada, he says.

No typical season

At Mistry Motors in Mississauga, Prakash Mistry says the typical downtime seen January to March hasn’t returned post-COVID.

“Now there’s no peaks and valleys,” he says. “It could be a good month, it could be a bad month. There’s no history anymore to prepare for. There’s no rhyme or reason.”

He says January 2024 was dead while February 2024 was a record month. March was okay, but April was down. There isn’t a way to prepare for highs and lows when they aren’t predictable. He is making sure the cars he chooses are the right ones.

“I’m just being picky with what I buy for inventory,” he says. “I’d rather have only five cars than 30 cars that I’m going to lose money on. We definitely adjust pricing a lot faster. If you have a car

for 90 days now you’re going to take a massive loss on it.”

Gone are the days when a car could sit on the lot for the traditional 30-6090 time frames. At three-months old, a vehicle will have depreciated, yet the reconditioning, advertising and borrowing costs remain the same. The key is to keep selecting cars that will move and won’t sit.

Some slowing seen, but necessarily not a winter dip

At Goodwill’s Used Cars in Aylmer, keeping a large lot is a benefit according to Al Hooghiem. The dealership celebrates its 50th anniversary in September and although there was some slowing of sales post-pandemic, there hasn’t been a typically slow winter. “It helps that we have 230, 240, 250 vehicles here at any time,” he says. He also feels the milder temperatures of southern Ontario are a benefit to getting auto shoppers out and buying.

Andy Lafreniere of Lafreniere Auto Sales and Service in Stayner says it’s stayed steady on his lot the last few years.

“We’re fortunate here that we keep pretty steady,” he says. “It’s a small town, so we look after people like nobody else does.”

He feels that in larger cities some salespeople can give off the scent of desperation during the winter months making their situation even worse. Yet, even with a couple of days of constant snow, he’s remained consistently busy.

“We’ve got quite a few vehicles coming from the auction in the next week and we’ve got probably four or five people waiting in the sidelines for things that are getting here,” Andy says.

There are no gimmicks or promos here to encourage sales. He might include snow tires and rims in a deal, but it’s not an advertised offer.

Embrace the season by highlighting price drops

Not every dealership is lucky enough to avoid the seasonal dip of the first quarter and there are opportunities to keep momentum going. The first is to make normal price corrections appear special. Highlighting the reduction in price will motivate many buyers who were on the fence about making a purchase.

Pairing these reduced prices with competitive financing can often overcome the inertia that occurs with consumers after a holiday spending hangover. While no tactic can make a person buy when they aren’t in the market, those in the considering phase can be swayed to take action.

Cold weather tactics

When the weather isn’t ideal, ensure the dealership gives a warm welcome. This comes with added touches like ensuring hot beverages are available both inside and out for customers, umbrellas are offered in rain or slushy snow and comfortable seating areas for discussion are obvious. It’s also the right time to

focus on the vehicles that are made for winter weather. During COVID it was impossible to find a pickup truck or SUV and those vehicles carry the same cachet in the winter months, so playing to that snow-worthiness creates faster movement. Offering winter-ready checks and winterization packages can add to the beneficial relationships with customers.

Make use of online tools and assets

Everyone shops online first and a slower season is the right time to upgrade your website, get social media channels up and running and build overall online presence. If a rebrand has been a consideration, winter is the ideal time to move forward as it can also generate excitement at the dealership.

The same goes for a remodel or renovation. It’s far easier to make these changes when the lot is a little quieter and doing something new always attracts interest. However, it’s important to have planned for the changes financially to prevent additional strain on months that might not generate income as desired.

Another tactic to consider rolling out in a slower period is an online chat. Giving 'couch browsers' a live human to talk to and ask questions of goes a long way to building relationships and establishing commitments like test drives. But, always ensure the hours of the chat are noted on your site if it isn’t manned 24/7 so that late-night shoppers aren’t frustrated.

Get training up to snuff

Finally, slower periods are a great time to ensure staff are trained in all the areas needed. Whether that’s in-house learning about programs and offers from the parts department or outside source learning about how to sell extended warranties, better selling techniques or automotive knowledge, don’t let idle time be idle. ■

THE OLD CAR DETECTIVE

PIERCE-ARROW DEALERSHIP

IN TORONTO

By Bill Sherk

1140 YONGE STREET IN TORONTO was once home to some of the most magnificent automobiles ever sold in this city. H. E. Givan Ltd. opened for business on Monday, January 13, 1930 as the flagship Toronto dealership of the prestigious Pierce-Arrow, a luxury motor car built in Buffalo, New York,

from 1901 to 1938. Its 1930 prices ranged as high as $9,450 at a time when a new Model A Ford sold for $540.

Constructed on the site of a former Methodist church, the new brick, stone and concrete building was highlighted by ten large, arched showroom windows. Seven of these faced Yonge Street and the middle one served as the showroom entrance flanked by two ornate lights under an outstretched PierceArrow sign. Two other arches faced Marlborough Street to the north and the final arch was placed diagonally across the corner to display cars for the benefit of southbound Yonge Street traffic.

The showroom inside those arched

windows had plenty of floor space to display the new cars, thanks to a mezzanine level that housed the company’s offices. The new cars included Studebakers as well as PierceArrows because the two companies were joined together from 1928 to 1933. A large used car showroom and service bay occupied the rear of the building and one of the old grease pits was still there in 1993 under a new floor.

Opening day at the new dealership was trumpeted by a half-page ad in The Globe, claiming that the “new showrooms are the most beautiful in Toronto.”

All this happened less than three

months after the big stock market crash of 1929. As the Depression deepened, car sales dropped lower and lower, and plans to add an extra two storeys above the service bay were cancelled. By 1937, production at the Pierce-Arrow factory had fallen to about seventeen cars and the remaining assets of the company were auctioned off the following year.

H. E. Givan was able to remain at 1140 Yonge Street for another few years by selling other car makes, then moved to another location further south on Yonge in 1941. In the building they left behind, armament shells were made on three shifts a day during the Second World War. Other uses over the years included the selling of Grew boats and the marketing of RCA Victor radios.

Finally, in 1954 the CBC moved into the building. On September 25, 1978, the building was listed as historical by the City of Toronto, thereby helping to preserve its faded glory for future generations.

In 1988, Toronto resident Earl Domm (left, photo 3) rode in Ron Fawcett’s 1918 Pierce-Arrow. Earl worked at Pierce-Arrow in Buffalo in the 1920s and Ron restored several Pierce-Arrows in his shop, Fawcett Motors Carriage Co. in Whitby, Ontario. Now operated by Ron’s son Peter Fawcett and Art Carty. Email office@fawcettmotors.com or phone 1-905-686-1412. Well worth a visit!

ARTICLE COVER PHOTO: New Pierce-Arrow showroom at 1140 Yonge Street, Toronto, opened January 13, 1930.

PHOTO #1: Pierce-Arrow roadster at Eglinton Hunt Club, Toronto, ca. 1929. Note headlights mounted on front fenders, a Pierce-Arrow trademark since 1913.

PHOTO #2: 1932 Pierce-Arrow convertible coupe bought new at 1140 Yonge Street. Photo taken in 1939. Later purchased by classic car collector in Toronto. This car might still exist!

PHOTO #3: Earl Domm (left) in Ron Fawcett’s 1918 Pierce-Arrow in 1988.

PHOTO #4: Front view of Ron Fawcett’s 1918 PierceArrow from son Peter.

PHOTO #5: Side view of Ron Fawcett’s 1918 PierceArrow from son Peter. ■

DRIVING SUCCESS THROUGH CONSISTENT DEALERSHIP BRANDING

By Connie Motz

BRANDING: “THE ACT OF MAKING A PRODUCT, ORGANIZATION, PERSON, OR PLACE easy to recognize as different from others by connecting it with a particular name, design, symbol, set of qualities, etc.” - Cambridge Dictionary

With so many vehicles available for consumers in today’s marketplace, how do you make your dealership stand out? Cox Automotive forecasts a 1% rise in used-vehicle sales in the U.S. to 37.8 million in 2025, with 20.1 million of these sales occurring in the retail market.

Why Branding is Important in the Used Car Industry

Branding is the cornerstone of any successful car dealership. While the automotive manufacturer’s brand provides a foundation, a strong dealership brand is crucial for attracting and retaining customers. Today’s car buyers seek more than just a vehicle; they desire a positive and trustworthy experience. Dealerships prioritizing customer satisfaction, transparency, and reliable service are more likely to succeed in a competitive market.

The Difference Between Branding and Marketing

The Canadian Marketing Association (CMA) emphasizes that branding is distinct from marketing, serving as an overarching strategy that guides

all aspects of business, from sales and marketing to customer service. It defines the brand’s core and shapes interactions will all stakeholders.

Maintaining brand relevance is crucial in today’s rapidly evolving market, where consumer expectations and technology constantly shift.

The CMA offers a “Brand” course to help businesses master the art of crafting and nurturing strong brands. And as marketing guru Philip Kotler said, “If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.”

Brand Psychology 101

According to Carhub.ca, the psychology behind brand relationships goes far beyond the personal experiences of consumers. It can include social identities/status symbols, reliability, durability, and trust. The perceived value of a vehicle is another key point that steers brand loyalty, which includes “the features, benefits, and overall quality offered relative to the cost.”

The emotional appeal of a car brand can be a powerful force in driving consumer choice and social identity. This can range from being a generational pick, evoking a feeling of being connected to a past experience, or to a sense of brand exclusivity where a vehicle is perceived

as a status symbol that boosts the buyer’s self-esteem. And top-shelf brands can come along with premium pricing and better ROIs.

The customer experience, right from the initial research process to service post-sales, is a significant factor when it comes to brand loyalty. If you can back the vehicle sale with top-ofthe-line customer service, effortless service experiences, and transparent communication, you’ll be building a quality consumer relationship with both emotional and trust factors. And if a buyer is happy, they’ll foster that connection with brand loyalty, which includes both your dealership and the actual vehicle brand.

Give Them What They Want

What are the key factors that influence used car buyers? A recent survey of Ontario dealers says:

1. Positive brand reputation and image

2. Excellent safety ratings

3. Aligns with their values and lifestyle

4. Advanced technology features

5. Sustainable and eco friendly

What’s Your Dealership’s Brand Identity?

If you haven’t thoroughly examined what’s driving customer interest (or

disinterest), you may be missing some vital opportunities. Start by asking these key questions:

• What are your dealership’s core values?

• What promises are made to your customers? Are you succeeding or falling short in delivering those promises?

• How are you differentiating your brand from others?

• What is your brand message?

Ultimately, it comes down to knowing your dealership and your customers. How do you want customers to perceive your dealership?

Essential Branding Strategies for Dealerships

Fundamental elements can help ensure your brand remains unique and profitable:

• Be trustworthy. Car shoppers are interested in branding because they’re looking for a vehicle brand that’s trustworthy. Ultimately buying a used vehicle is still a major purchase for many consumers and so they want to be confident they’ll be getting their money’s worth on many levels, including quality, safety, and reliability.

• Be unique. Strong branding can differentiate car dealerships in the marketplace by helping them stand out. Customer service, pricing, or selection, can all be unique selling points for specific brands. A well-established automotive brand can foster customer loyalty, as well as encourage repeat business and referrals because a positive experience means customers trust the brand.

• Be social. A prominent brand can enhance a dealership’s online visibility and reputation. Social media engagement, positive reviews, and a well-designed website can also create an enhanced online presence.

• Be premium. Well-established automotive brands can often

command premium vehicle prices, as customers may be willing to pay more for a vehicle from a dealership they trust and respect.

Why Brand Loyalty Matters

As chef, author, and world-traveller Anthony Bourdain once said, “If you have a good experience at a restaurant, you tell 2 people. If you have a bad experience, you tell 10 people.” And that’s exactly it: a negative consumer perception goes far further than a positive one, so it’s essential to establish brand loyalty from the get-go. It’s part and parcel: if a buyer has a positive dealer experience, they’re more apt to choose the same brand/dealer again. It’s also probable they’ll resist buying a different brand or going to a different dealer.

Don’t Tamper With Success

As the old idiom says, if it ain’t broke, don’t fix it. Case in point, the 1980s decision by well-known beverage producer, the Coca-Cola Company, to update its’ classic Coca-Cola soft drink recipe into a new version re-branded as New Coke. The somewhat ill-conceived idea (in hindsight) was met with major consumer backlash, so much so that Coca-Cola reported receiving 40,000 letters of complaint and up to 8,000 calls per day from angry customers. Protest groups formed, people hoarded the original Coke, and ultimately New Coke was discontinued. Ironically, blind taste tests conducted using both formulations showed that consumers were more likely drawn to New Coke - making the moral of the story: it’s all about consumer perception.

The Jaguar Rebrand: Crazy or Genius?

Jaguar’s recent rebrand, with its bold visuals and unconventional approach, has sparked significant discussion. While some may find the campaign visionary or provocative, it undeniably generated considerable attention.

The campaign, which emphasized vibrant colours and focussed on brand ethos over specific vehicles, garnered over 2.7 million YouTube views within two weeks, suggesting it effectively captured public interest. The subsequent unveiling of the androgynous Type 00 concept car at Miami Art Week, featuring London Blue and Miami Pink colours, further fuelled conversation.

Jaguar also introduced a new logo and a reimagined leaping jaguar emblem, reflecting a modern and minimalist aesthetic.

Whether this rebrand is considered 'genius' or 'crazy' is subjective. However, as Oscar Wilde observed, “There is only one thing in the world worse than being talked about, and this is not being talked about.” Regardless of individual opinions, the campaign has undoubtedly positioned Jaguar in the public consciousness.

Automotive Brand Logo Redesigns

Logo redesigns can be a powerful tool for modernization in any company. Kia’s bold new logo, Aston Martin’s subtle enhancements, Citroen’s return to their roots, and Rolls-Royce’s elegant update to the Spirit of Ecstasy all showcase

how successful change can be achieved with careful consideration and a focus on brand heritage. Even the iconic three-pointed star logo of MercedesBenz, representing the company’s early involvement in automobiles, marine engines, and aircraft engines, has been streamlined into a more contemporary version.

Tips to Market Your Dealership as a Brand

While the automotive manufacturer’s brand provides credibility, dealerships must also differentiate themselves through effective marketing. Building a strong brand identity is crucial for standing out and becoming memorable to customers.

A dealership can cut through the noise and create its own brand identity by focusing on the following strategies:

1. Offer exceptional user experiences:

• Providing personalized service every time. This includes investing in staff training to help ensure excellent customer service, in person or online, and to foster strong consumer relationships.

• Transparent processes. Be credible and

differentiate you from the crowd.

• Offering loyalty programs. Consider rewarding repeat customers and encouraging future vehicle purchases by implementing loyalty programs. Think of successful vehicle loyalty programs like FordPass or Nissan’s One to One Rewards, even if on a much smaller scale.

2. Being consistent with your branding:

• Creating a strong brand message. This should align with the dealership’s values and unique selling proposition.

• Creating a strong visual identity. Develop a consistent visual identity, including a logo, colour scheme, and typography that will be used throughout your dealership, both instore and online.

3. Taking advantage of digital marketing:

• Website. A user-friendly website will allow shoppers to navigate easily through all the avenues of your business. This should include everything from detailed vehicle listings and virtual tours to financing and warranty options. This gives shoppers access to your inventory 24/7/365.

• Social media. Use social media platforms to engage with customers, share information, and run promotions. Even though not all social media marketing has a firm ROI, it can help customers see the human side of your business.

• Content marketing. High-quality

content like blog posts, infographics, and videos can attract and inform potential and current customers.

• Paid advertising. Utilizing targeted online advertising to reach wider audiences can increase your bottom line.

4. Getting involved with your community through:

• Community partnerships. Collaborating with local organizations to support community initiatives brings awareness and potential buyers to your business.

• Community involvement. Sponsoring local events and contributing to charities can help build brand awareness and goodwill by creating meaningful connections.

5. Utilizing customer testimonials:

• Encouraging satisfied customers to leave online reviews and testimonials. Word of mouth is still key even in today’s digital world.

• Using the same customer testimonials in marketing materials to build further trust and credibility.

A strong brand identity will ultimately create a positive lasting impression for consumers. This ensures that the brand’s position in the marketplace will continue to reinforce a sense of trust, value, loyalty, and most importantly, viability for the future success of the brand in the ever-competitive used car business. ■