If you are interested in having your personal opinion heard, contact the editor at gina@ontariodealer.com
Connie Motz
Connie Motz
THE DRIVER’S SEAT
“The customer is always right.”
By James Hamilton, Executive Director, UCDA
ANYONE IN RETAIL KNOWS THIS OLD ADAGE Its origins are debated, but it seems clear it had its genesis in the early 20th century and it was a handy mission statement for any business serving consumers. It remains so today, but perhaps we view it with a bit more nuance than in the days of yore.
While the concept is noble, the fact is the customer is not “always” right, any more than the business is always “wrong”. Taken to its extreme, the notion can create unfair expectations on the part of entitled customers and work an unfairness to businesses and the employees that serve those buyers.
Another old adage that might serve better here is the one that goes, “you can’t please all the people, all the time”.
Dealers are in the people-pleasing business. Whether you sell new vehicles or used ones, the goal is always to satisfy. The buyer makes the dealer aware of what they need and the salesperson tries, as best they are able, to fill the order.
Several things are required for this process to work properly. The buyer needs to be
clear about what uses they have for the vehicle they plan to buy. They need to be honest about what they can drive, or are comfortable with. The salesperson’s job is to guide that discussion, ask the right questions and qualify the buyer properly.
That does not just mean determining if the buyer can afford what’s on offer, although that is part of it, but it also means the salesperson’s expertise comes into play. You would not sell a vehicle with a manual transmission to a buyer who can’t operate one any more than you would sell a compact car to someone who plans to tow a horse-trailer.
Even after all that, it may still turn out that the vehicle is not right for the buyer. It may be too big, or lack the power needed for the task, or it may have mechanical problems that just cannot be put right. Although rare, some situations do not present easy solutions. How a dealership handles those rare but difficult cases says as much about their customer service as the hundreds of happy buyers does.
Suppose a customer comes back a year after buying a vehicle, not to complain about anything mechanical, but they have decided they just don’t like the truck’s size, power, interior controls, or any number of other niggling issues. These scenarios happen more than you might think, but how you handle them says a good deal about your business.
Some dealers will help a customer even when it’s apparent there is no legal obligation to do so. Dealers who do this tell me its because they recognize that sometimes you have to take a loss to keep a customer (and all their referral business). It’s a little bit like spending on advertising; spending a buck to make a buck.
One thing is for sure, avoid responding to the unhappy buyer with anger or frustration and try to view it as an opportunity. As with most things in life, the beginning of a solution, is listening. Hear your customer out ...really listen. Take notes if necessary, the customer will see that and appreciate it.
Maybe there is a way to please the buyer after all. It could be a simple fix, or another vehicle (meaning another sale) or they just need some advice from someone with real-world experience who is in a position to give it. The point is, while you may not always be able to solve a problem, most people will appreciate that you heard them out and did not lose your focus (or your temper).
Dealers who are better at this than others will enjoy more repeat business and find less consumers complaining to third parties like OMVIC or the courts.
Of course you can’t please all the people all the time, but you can certainly try!
In addition to our regular articles, such as The Law Matters, Tech Talk, The Common Lawyer and The Old Car Detective, our theme this issue is Operations, so please enjoy the following articles in this issue of The Ontario Dealer:
Boosting Sales Through Transparency Customer Satisfaction
How to Use AI to Boost Your Online Marketing
The Power of Video Marketing
Top 10 Ways to Boost Customer Retention
You can reach me anytime at j.hamilton@ucda.org with any comments or suggestions for the The Ontario Dealer magazine! ■
THE LAW MATTERS
From Flax to Ferraris: Choose Your Words, and ‘Emojis’, Carefully
By Hetash Singh, Associate Legal Counsel
BACK IN THE SUMMER OF 2024, I wrote about an interesting case called South West Terminal Ltd. v Achter Land & Cattle Ltd., 2023, out of Saskatchewan. The case was about a contract for the supply of grain accepted by a ‘thumbsup emoji’.
The case involved two companies, South West Terminal Ltd. (“SWT”) and Achter Land & Cattle Ltd. (“Achter”). SWT had a history of purchasing grain from Achter for over a decade. On March 26, 2021, SWT’s representative, Kent Mickleborough, started a round of negotiations by texting the owners of Achter, Bob and Chris Achter, an offer to purchase flax as follows: “All Divisions - - Kent Mickleborough –Flax Prices : Flax 1Can(max 6% dockage) $22.50/bu Apr. $17.00 Oct/ Nov/Dec del”
After a series of calls between the representatives of the two companies, SWT had a contract drafted for the purchase of flax. The contract listed a delivery date of November but did not specify a year. Kent Mickleborough signed the contract and sent it to Chris Achter by text message, asking him to confirm the flax contract. Chris responded to the contract with a ‘thumbs-up emoji’. SWT took this to mean that Achter had accepted the contract.
The price of flax soared from $17.00 per bushel to $41.00 per bushel in the following months. To SWT’s surprise, Achter suddenly took the position that it had not accepted the contract for the supply of flax. Achter stated that the ‘thumbs-up’ just signaled that Achter had received the contract, not that it had accepted it. Achter also claimed that because the contract was missing a year, it did not have all the necessary details to form a complete contract. The court did not give much weight to that argument given the parties extensive business history.
It was clearly understood by both parties that the quote was for the upcoming season.
SWT did not take kindly to what seemed like a ‘flip-flop’ in Achter’s position and sued Achter. The main issue in this case was whether the ‘thumbs-up emoji’ was the equivalent of Achter’s signature and acceptance of
the contract. The trial-level court found that there was a valid contract, with all the necessary details, because the ‘thumbs-up emoji’ was the equivalent of Achter’s signature. The court ordered Achter to pay SWT $82,200.21 (plus legal costs and interest). Achter recently appealed the decision without much success.
Saskatchewan Courts Give ‘Emojis’ Two ‘Thumbs-up’
The Court of Appeal agreed with the trial-level court. The Court of Appeal found that the ‘thumbs-up emoji’ was the equivalent of Achter’s signature and satisfied the requirements in The Electronic Information and Documents Act. Achter has applied for a further appeal, or ‘leave to appeal’, of the court decision to the Supreme Court of Canada (“SCC”).
The SCC is the top court in Canada and chooses which cases it hears. The SCC will only hear cases of the utmost legal importance. If the SCC accepts the application to appeal, Achter will have one more opportunity to try to convince a court of its position. If the SCC rejects the application, Achter will have to live with the Court of Appeal’s decision against it.
From Flax to Ferraris
Canadian courts are not alone in dealing with issues surrounding the use of ‘emojis’ in contractual disputes.
The Munich Higher Regional Court, a German appeals court, ruled on the implications of the use of a ‘grimacing face emoji’ in the context of a contract for the purchase of an $800,000 Ferrari ‘supercar’.
In November 2020, a millionaire approached a Ferrari dealer to purchase a customized SF90 Stradale. The customer provided a deposit of approximately $62,500. The dealer assured the customer that the vehicle would be ready for the second or third quarter of 2021.
In September 2021, the dealer reached out to the customer via WhatsApp and informed him that there would be significant delay and that the vehicle would not be ready until the first half of 2022. The customer responded with a “ ” ‘emoji’. The dealer took this to mean that the customer was fine with the delay. The customer eventually withdrew from the contract in June 2022 due to “battery issues”, which further delayed the car’s delivery.
The dealer sued the customer to enforce the contract. The dealer argued that the customer’s use of the ‘grimacing emoji’ conveyed his consent to the delay and that he was still interested in purchasing the
vehicle. The trial court agreed with the dealer, but the Munich Higher Regional Court overturned the decision and instead agreed with the customer. The Munich Higher Regional Court found that while text messages and ‘emojis’ can potentially modify contractual agreements, the customer did not consent to the delay by using the ‘grimacing emoji’ in this case. The customer, therefore, had the right to terminate the contract.
These cases serve as a reminder that when doing business you need to choose your words, and ‘emojis’, carefully. In the car sales industry, failure to do so may end up costing you
more than just a few bushels
The lesson probably is to save the cute emojis for informal communications with friends or family, and in matters of contract or business, use clear language instead.
You can read the Saskatchewan Court of Appeal’s decision here: https://canlii. ca/t/k8d5k.
The Munich Higher Regional Court’s decision is only available online in German, but you can read news articles covering the story by following this link: https://tinyurl.com/4khe5mym ■
of flax.
THE POWER OF VIDEO MARKETING
By Connie Motz
BY SEEKING INFORMATION FROM A UCDA MEMBER DEALERSHIP and a trio of digital media producers, we’ve come up with tips & advice to help you increase your bottom line through the power of video marketing.
There’s no doubt about it, we are a generation of consumers and when we shop, we want it all: convenience, the best prices, and tons of pics. From every angle.
The Numbers
• 59% of car buyers spent most of their shopping process online
• 68% of people turn to social media for research
• 71% of marketers say Facebook has the 2nd best performance rates
• 78% of marketers say YouTube is the most effective video platform
• 88% of viewers are convinced to purchase after watching a brand’s video
• 91% of people viewed explainer videos to learn about services/ products
So before the Fear of Missing Out (FOMO) kicks in, learn how and why you should take your dealership to the next level through the power of video marketing.
Revving Up Consumer Emotions
Indisputably, visual marketing brings vehicles to life. More importantly, visualizing a vehicle strikes up an emotional connection, which we all know can be a powerful driver in the car buying process.
Darren Sager, Owner and Creative Director of 5Gear Studios in Concord, ON, says, “Videos can evoke emotions more effectively than other media. By
telling a compelling story or showing happy customers, dealerships can create an emotional connection with viewers. Many dealerships still rely heavily on traditional marketing methods. A strong video marketing campaign can set a dealership apart from competitors.”
“By showcasing inventory through detailed, dynamic presentation of vehicles, potential customers can see the car from multiple angles, hear the engine, and see features in action, which can be more persuasive than photos alone,” says Sager. It’s also an opportunity to build trust and offer transparency as “dealers can use video to address common concerns about used cars, like prior damage or service history. This positions the dealership as a reliable source,” he continues. Since 1986, 5Gear Studios has created film content for automotive clients, like Honda, Acura, Mazda, Porsche, and Toyota. 5Gear Studios uses “advanced techniques such as drone footage, sophisticated editing software, and
special effects, which can add a unique and polished touch to videos.
Professional post-production skills are also crucial as they can edit videos in a way that enhances the message, improves flow, and ensures high production values,” states Sager.
“Informative videos about the carbuying process, maintenance tips, or the benefits of certain vehicle features can position the dealership as an authority in the industry. But every film 5Gear Studios creates is unique for the purpose of the film. We do not believe in cookie-cutter films. An automotive purchase, even a used one, is a large investment and you have to create trust with the clients buying from you. Your best foot forward is a film demonstrating the dealership’s integrity, commitment, and passion,” explains Sager.
Here is Sager’s advice to help get your dealership started and become successful with video marketing:
1. Planning and Strategy
• Define Your Goals: Brand awareness, website traffic, lead generation, sales, etc.
• Know Your Audience: Understand who they are and what they want.
• Create a Content Plan: Engage your audience by offering variety through vehicle tours, education, and promotions.
• Set a Budget: Allocate for videography, equipment, software, and promotion.
• Inventory: Since inventory is always in flux, promoted models must be readily available.
• Avoid Dealer Disruption: Day-to-day sales can be interrupted with video shoots, so consider after-hours video production.
2. Content Creation
• Focus on Quality: Good production values should incorporate clear audio, sharp visuals, and proper lighting. Poor-quality videos can harm your brand image.
• Keep it Short and Engaging: Attention spans are short, so keep most videos under 2-3 minutes, especially for social media. Make sure the first few seconds are captivating.
• Tell a Story: Whether it’s a customer success story or the journey of a car from trade-in to showroom-ready, make your videos compelling.
• Showcase Your Inventory: Highlight features and benefits of vehicles by using detailed walkarounds and test drive videos to give potential customers a closer look.
• Building Trust: Videos featuring staff members, customer testimonials, or behind-the-scenes looks can help build trust and authenticity.
The Value of Virtual Test Drives
At Driven Cars Canada in Thunder Bay, ON, General Manager John Murphy oversees 14 employees and an inventory of 80 vehicles. They’ve identified their
target demographic as being middleincome individuals and families, typically aged 20 to 55.
Murphy states, “Driven Cars Canada has always prioritized providing customers with the best possible shopping experience and offering video test drives (VTDs) has been a key part of that. This conscious choice towards video marketing enhances transparency and convenience, allowing our customers to get a detailed, realistic view of the vehicles from the comfort of their own homes.”
“Being able to shop from home makes the car-buying process more efficient and enjoyable for consumers. Whether they are verifying the vehicle's condition or narrowing down their options before visiting our lot, video marketing enhances the overall customer experience,” states Murphy.
How did Driven Cars Canada go about implementing video marketing? They partnered with WheelsTV of Acton, MA, which provides them with an array of professionally produced videos tailored to the specific year, make, and model of the vehicles they have listed in their online inventory. For a monthly fee, they have access to a test drive library containing more than 6,000 highdefinition videos.
Murphy reports that VTDs have proven to be highly effective in attracting and converting buyers, noting better sales conversion rates and search engine rankings, and an accelerated sales process, all while fostering customer retention.
Captivate Consumers with Stories
Fierce Media of Toronto, ON, is a creative and strategic agency empowering brands with the art of storytelling through conscious marketing approaches to captivate audiences. They offer more than 20 years of combined automotive marketing experience working with OEMs and dealerships, including BMW, Audi, Volvo, and EVs.
Aniseh Sharifi, Managing Partner of Fierce Media, alongside co-Managing Partner, Neda Niaki, answers the question, why should a used car dealership consider using a video marketing campaign?
“Video marketing is an effective way to share stories and add personality to a business. Videos make it accessible for the audience to learn more about the people behind the brands. They’re also a powerful educational tool and can increase engagement, showcase inventory effectively, and build trust with potential buyers,” says Sharifi.
When a dealership wonders about the possibility of producing their own videos, Sharifi offers this perspective, “We’re storytellers. We can help you share your story and inventory while you continue to provide the service your customers want and need. A professional video will ultimately set you apart from your competitors and build credibility over time with your audience. We start with researching and understanding the target audience, and focusing on the key selling features while using engaging visual and storytelling techniques.”
“Education videos have a longer shelf-life and tend to perform better too,” advises Sharifi. “They can help build credibility and make the dealer stand out as the expert in their field. Educational videos can include short how-tos or tips and tricks. The EV series of one to twominute-duration videos that we did were based on key topics identified from FAQ and served as a tool for the sales team to share in emails when answering common EV questions,” affirms Sharifi.
Sharifi dispels some common myths about video marketing including that it’s too expensive, by saying “When you consider the long-term effect of videos, it’s actually a cost-effective way to boost engagement and the overall dealership awareness online. Another myth might be that social media videos are silly and not appropriate for dealerships. And although there are senseless videos out there, it is possible to create tasteful videos that are refined and educational. Videos are an effective way to connect with your wide demographics and build a strong brand image. Videos allow for storytelling and emotional connections which can increase brand loyalty and customer retention.”
When it comes to sharing social media content, Fierce Media sets key performance indicators (KPIs) with a dealership before they launch and provides analytics based on distribution channels. Their Social Media Management package includes creating an online strategy and implementing
a monthly content calendar, as well as creating, distributing, and monitoring the content as needed.
Sharifi suggests the following advice regarding a dealership implementing video marketing:
• Have a strategy in place and focus on showcasing your unique value proposition.
• Be consistent in your video marketing efforts and invest in a team to keep you on track. It’s important to remember first that when sharing videos, the name of the game is consistency.
• Using a video on a landing page can increase conversion by 86% - this can be a dedicated web page for an event or promotion that people need to register online to attend.
• The average length for social media videos is 30 sec - 1 minute maximum. YouTube videos can be 2-3 minutes or longer if they’re walkarounds. Educational videos can vary depending on the topic.
Fuelling Dealers & Customers with Educational Info
Edward Figura and Ali Xerri, CoFounders and Directors of FX Productions Canada in Toronto, ON, know all about the educational power
of video. They and their team crafted a series of 24 engaging videos for KIA’s 199 dealerships across Canada.
According to Figura, “These marketing and training videos were strategically designed to reach a broad audience across online platforms, aiding in the training of engineers, sales employees, and KIA staff. The focus was on showcasing the newest features of KIA’s flagship electric vehicle, the EV9.”
Figura continued, “To ensure the content was relevant and informative, we created the videos in both English and French, and utilized visually stunning graphics to keep viewers engaged and attentive to the narration throughout the videos. For the creative strategies, we used top-of-the-line equipment, including a RED V RAPTOR camera with 8K resolution and highend prime lenses to capture the most beautiful light possible. We also employed the best dolly and camera stabilizers to achieve smooth, floating shots, enhancing the visual appeal.”
“Videos are now the modern test drives,” states Xerri. “Automotive video production is about presenting a narrative that will spark people’s interest and make them interested in
the products. A well-produced video is capable of illustrating a company’s brand, mechanics of a car, and even genuine customer satisfaction.” He emphasizes video’s ability to engage viewers emotionally, deliver information concisely, and enhance memory retention over written content.
Here’s the insight from FX Productions Canada on effectively implementing video content into your dealership marketing efforts:
• Social Media Integration: Tap into the power of YouTube, Facebook, and Instagram to engage potential clients.
• Email Campaigns: Boost clickthrough rates and engagement with video-driven emails.
• Web Optimization: Utilize video to highlight your dealership’s offerings, including homepage videos, customer testimonials, and virtual tours.
• Live Stream: By live-streaming new model launches and hosting Q&A sessions, you can directly engage with your target audience and generate excitement.
Both Figura and Xerri agree that the automotive sector is one of the industries that gain the most from video marketing. Video content offers an immersive experience, showcasing a vehicle’s features, performance, and interior and exterior in detail. This visual format empowers potential buyers to make informed decisions, even before stepping foot in a dealership. Plus, the option for virtual test drives enhances the customer journey.
The Power of Video Marketing
While there’s an initial upfront cost, the potential return on investment for video production is substantial due to its ability to reach a wide audience and generate multiple uses through cutdown versions.
Video marketing is indeed a powerful tool for car dealerships. By understanding consumer preferences for online research, information seeking, and trust building, dealerships can leverage video content to effectively reach and engage potential used car buyers in Ontario. ■
MARKETPLACE
CREATING AN ONLINE EXPERIENCE
By Connie Motz
ACCORDING TO A REPORT BY STATISTA. COM, the growth potential of the Canadian used car market is poised to reach $80.2 billion by 2028. To be successful in this competitive industry, you’ll need a strategic approach to up your game. So the question is, are you ready for this?
By consulting leading industry authors and long-standing UCDA member dealers, we’ve come up with some top tips and advice to help power your success in the Canadian used car business.
Elevated Customer Satisfaction & Relationships Are Crucial
We all know that a lack of customer service can be the death of any business, but it’s especially true in today’s tech-savvy world. Let this thought by business tycoon Jeff Bezos sink in for a moment:
“If you make customers unhappy in the physical world, they might each tell six friends. If you make customers unhappy on the internet, they can each tell 6,000.”
Does your dealership have a customer service policy? It’s important to have a starting point outlining the specifics of what’s expected of your employees, including detailed procedures regarding customer interactions. Do you offer staff training in customer service? Just because a salesman seems personable doesn’t mean he has skills when it comes to dealing with a rude or demanding buyer.
Customer experience and relationship building are key to success in the used car business, states Chris J. Martinez, best-selling author of Driving Sales: What It Takes to Sell 1,000+ Cars Per Month. He advises dealers to examine approaches to enhance the customer experience, including:
• personalized sales interactions
• transparent pricing
• vehicle history information
• post-purchase support and services
• fostering long-term customer relationships through loyalty programs and referral incentives
Joël Paquette, General Manager of New Sudbury Volkswagen, a third-
generation family-owned business, shares his thoughts: “The car business is about relationships. Take the time to listen to your customer, understand their needs, and be attentive to them. Follow through on promises, be genuine, and do what you say. When you build rapport with a customer in this way you open the door to a lifelong relationship and repeat business.”
Award-winning Wellington Chrysler Dodge Jeep Ram has been operating in Guelph, ON, since 1940. Their General Sales Manager, Josh Wood, agrees that it’s imperative to have “An unrelenting commitment to customer satisfaction through transparency and strong communication/interaction,” as well as “a timely and transparent sales process in which the client feels confident in their purchase. Thus resulting in positive feedback through surveys and reviews and cultivating a strong referral clientele.”
Advice from Hugo Fernandes, Sales Manager of time-honoured Azores Auto Group in Toronto, ON, reiterates the importance of customer service by saying, “Be honest and transparent with every customer. Resolve issues as
quickly as possible if they arise.” Nick Moretti, General Manager of long standing family-run Parkway Auto Trade in Milton, ON, sums it up nicely by saying, “Take pride in getting to know your clients, and know them well.” The 2023 Canada Customer Service Index Study by JD Power concurs that dealerships making customer satisfaction a priority are rewarded with increased sales and higher retention rates.
And as Bill Gates kindly reminds us, “Your most unhappy customers are your greatest source of learning.”
Establish a Niche Market
Here’s another question for you, does your used car business have a niche? If you’re trying to sell a variety of vehicles to a variety of customers, you might be setting yourself up for failure as you just can’t please everyone all of the time. But if you take the time to really understand your target audience and establish a solid market niche, it will help to secure both new and repeat business.
Case in point. Six or seven years ago, Parkway Auto Trade decided they needed to adapt to the market despite having been in business for decades. They put a lot of time and effort into finding a niche marketplace to stay on top of the competition, which led them to a strategy of selling niche vehicle types - commercial vehicles, and more specifically, 3/4 ton trucks. With 6 employees and a typical inventory of 50 vehicles on their lot, a good following of tradesmen now gravitate to Parkway Auto Trade as they know they’ll be getting value and a well-inspected vehicle that can be relied upon.
Moretti takes a lot of pride when he says, “Parkway Auto Trade methodically puts more effort into buying than selling vehicles. Of the hundreds of vehicles we blanket North America to purchase, we will
only buy three or four.” He went on to explain that Parkway scrutinizes their purchases, and vehicles must meet key points, including condition, desirability, and value while noting that only those vehicles with top grades and exemplary CARFAX reports will be chosen. “If the cost of a truck from Calgary, factoring in shipping and all expenses, makes it cheaper to buy out of province, that’s what we’ll do,” states Moretti.
Whenever a purchased vehicle arrives at Parkway Auto Trade, it immediately goes through a visual and mechanical inspection, which helps ensure quality control and their business reputation.
A 2023 report by Canadian Black Book confirmed growing consumer desire for niche vehicles, including fuel-efficient models, and a wellestablished market segment for SUVs that dominated 40% of vehicle sales. Besides specialized vehicles, Max Zanan, President and CEO of MZ Dealer Services, wants dealers to identify niche services that make them stand out from the competition, What are the "why buys" for your dealership? For example, do you offer a Lifetime Warranty on all vehicles sold at no cost to the customer?” Capitalize on whatever makes your dealership unique.
Inventory Acquisition and Pricing Are Key
Providing vehicles that your customers want at the right price can be challenging, but it’s also one of the most vital decisions that can make or break your business. So, are you taking a proactive or passive stance when it comes to procuring vehicles? What’s your dealership’s used car acquisition policy? If you’ve answered everywhere and anywhere, you could be on the right track.
Don’t be stuck in an auction-only approach to procuring vehicles. Zanan asks a simple but thought-provoking question, “Does your dealership have a vehicle acquisition strategy to buy vehicles directly from the public instead of an auction?” Depending upon negotiations between the seller and dealer, private-party acquisition can be a lucrative option to add to your used car inventory.
Available for Android or Apple, the Accu-Trade mobile app, coupled with a Bluetooth OBD-II scanner to detect diagnostic issues, can provide a datadriven dynamic appraisal within a matter of minutes. Simply scan the VIN, take a few exterior and interior photos,
and you’ll be provided with a real-time evaluation you can use to help acquire vehicles no matter your setting or location.
“Sourcing the right inventory at the right time is important (and challenging) as customers will travel far for the right used vehicle. Looking to your service department and lease portfolios for quality used vehicle inventory can be a great way to source cars that may be in short supply in the marketplace and set your portfolio of inventory apart,” states Paquette. With 28 employees, New Sudbury Volkswagen maintains a pre-owned inventory of 25 to 35 vehicles.
Fernandes reminds dealers that, “Having the right cars in stock - cars that can be sold quickly - in addition to having the right team with the right process,” is key. Taking the time and money to invest in building a solid dealership team, and providing ongoing training, helps to provide a client-centric experience that can be successful on both sides.
Martinez offers the following suggestions, “Explore tactics for effectively managing inventory, including sourcing quality used cars, optimizing pricing strategies based on market demand and competitor analysis, and implementing efficient inventory turnover processes.”
Provide Flexible Financing
Since a 2022 study by the Canadian Automobile Dealers Association concluded nearly 70% of buyers finance their used car purchases, it’s important to offer consumers competitive financing options with reputable lenders and to consider providing flexible in-house financing solutions for subprime borrowers.
Zanan suggests also looking into dealership finance and insurance profitability by asking the following questions, “How strong is your F&I department in terms of product penetration and PVR? What F&I products does your dealership offer? Are these products reinsured?”.
Along with adaptable financing options, used car shoppers also see huge value in buying certified pre-owned vehicles, which can provide peace of mind and more closings. The same goes for third-party extended warranties, which are profitable for dealers, but also appeal to consumers seeking a sense of security.
Optimal Merchandising Techniques
Don’t underestimate the power of digital marketing, having a professional user-friendly website, and establishing/maintaining an online
presence. Why?
A CARFAX Canada publication identified that more than 90% of car shoppers start their research online.
To meet this digital demand, Paquette proposes merchandising your inventory properly by using, “Highquality photo sets; walk around videos; and engaging descriptions that will get more customers in your showroom. If possible, have service records and vehicle history reports ready for customers. Make sure your staff know the cars and have some unique selling points on hand. These will help you build value for your customers and assure them they are buying a quality vehicle. Give your inventory the time and care it deserves and your customers will see this.”
Another study by AutoTrader.ca uncovered that 78% of used car buyers visited an online automotive marketplace an average of 15 times before arriving at their final purchase decision, so it’s vital to engage virtual shoppers from the get-go. Wood proposes. “An appointmentbased culture in which customers are interactively engaged through video, photo, and phone inclusive of electronic communication (text, email) with the goal of building strong rapport and value.”
Martinez infers that dealerships need to “discuss strategies for leveraging digital marketing channels such as social media, search engine optimization (SEO), and online marketplaces to increase visibility and attract potential customers to your used car dealership.” Pay-per-click marketing (PPC) is a popular targeted approach where dealers can select demographics and keywords to reach qualified consumers online.
In addition, dealerships can embrace their online presence and social media by curating intriguing content that offers a combination of educational tips
and tricks, and customer testimonials to back up what you’re saying. Don’t forget about using online marketplaces and traditional marketing outlets like radio and print ads to further promote your dealership. Providing community support or sponsorship is an integral way to solidify your dealer’s invested connection to your city or town.
Behind the Scene Details
Many back-of-house activities also need to be taken into consideration when it comes to maintaining a sustainable strategy in the used car business. This can include, but is not limited to:
• Ensuring your dealership is current with all Ontario regulations, safety inspection, and licensing requirements
• Embracing technology by using both dealership and customer relationship management software, as they can produce sales strategies and identify areas that need improvement
• Offering various promotions for customers, such as seasonal
• Respecting and/or incentivizing all employees, as everyone wants to feel that little wow of being recognized as a hard worker
• A commitment to using only highlyskilled and trained staff to conduct repairs and/or inspections, for safety, legal, and ethical reasons
No matter how you look at it, the Canadian used car marketplace can be challenging but at the same time, there are plenty of opportunities to be had. By adopting some of the above expert advice into your business model, you can help set up your dealership for long-term success.
Chris J. Martinez, best-selling author of Driving Sales: What It Takes to Sell 1,000+ Cars Per Month
Joël Paquette, General Manager of New Sudbury Volkswagen
Josh Wood, General Sales Manager, Wellington Chrysler Dodge Jeep Ram
Hugo Fernandes, Sales Manager, Azores Auto Group
Nick Moretti
TECH TALK
HERE’S THE LATEST ON WHAT’S HAPPENING IN AUTOMOTIVE GADGETS AND APPS.
By Angela West
We’ve got a roundup of apps and gadgets that will purify the air in your car, make vehicle photography a snap at your dealership, inexpensively upgrade a vehicle that doesn’t come equipped with CarPlay or Android Auto, kit out a garage, and make long drives at night safer. All of the products listed here are available on amazon.ca.
Piranha Vehicle Photography App
Say goodbye to time-consuming vehicle photo shoots with the Piranha Automotive Photography App --a smart, efficient solution designed specifically for dealerships. Widely adopted across Europe and now making its North American debut through Ontario-based Logiki Technologies Inc., Piranha enables users to capture professional, studio-quality images in minutes. Dealerships can customize settings such as branding, photo angles, and backgrounds to ensure consistent, high-quality results with every shoot. Simply follow the app’s guided process, let AI handle the enhancements, and download your polished images in no time.
Learn more at www.octopus.tools/piranha or contact Logiki Technologies at info.logikitech@gmail.com or (416) 315-0081.
HAUXIY 9" Portable Apple CarPlay and Android Auto screen & Dash Cam
If your used vehicle doesn’t have a screen compatible with CarPlay or Android Auto, this all-in-one gadget will upgrade your ride for just $120.00 It features a 9" portable display that's compatible with Apple CarPlay and Android Auto, as well as a dash and backup camera.
This all-in-one device comes with a 1080p backup camera, GPS navigation, mirror link, voice control, Bluetooth connectivity, real-time navigation using apps like Google Maps and Waze, and in-car speaker voice navigation for route suggestions.
SinoTrack Digital GPS Speedometer Universal Heads Up Display
A heads up display (HUD) can unclutter your dash view by only providing relevant information. Ideal for driving at night, this universal HUD is great for older drivers or anyone that drives long distances at night. At $35.00, it’s worth getting just to try it out.
Key features include a large 5.5-inch LCD screen that displays speed, driving time, mileage, and direction. It provides safety alerts for speeding and fatigued driving (after 4 hours of continuous driving). Automatic brightness adjustment ensures clear visibility in both day and night conditions.
A high-performance chip allows for smooth, real-time data processing, and easy, one-key operation simplifies settings adjustments. Note that it only shows the current mileage and cannot retain previous distance data after the car is turned off.
MAXSA 37312 Park Right Dual Laser Parking Guide
This system is designed to simplify parking in tight garages, and will work for one or two cars. With no wiring and a screw or double-stick tape mount, you’ll have it up and running in no time. Other features include motion-activated detection of movement up to 10 feet away, dual adjustable laser beams that guide you to the perfect parking spot every time, optional battery backup that supports 3 AA batteries (not included) for continued operation during power outages, and a Class IIIA Red Laser for safety and performance.
Chamberlain myQ Smart Garage Control
This system is a simple, affordable, and secure way to upgrade your existing garage door opener with a smart hub. It allows you to control, secure, and monitor your garage door from anywhere using your smartphone with the myQ app.
You'll receive real-time notifications anytime your garage door opens or closes, providing peace of mind whether you're at home or on the go. Grant secure access to family, friends, or delivery drivers by creating schedules or granting one-time access through the app. Installation is designed to be quick and easy and is compatible with most major garage door opener brands manufactured after 1993 that have standard safety sensors.
Find Parking Fast With the Parkopedia App
Trying to find parking with Google Maps can be frustrating - it doesn’t show all of the paid parking available, and you have to click through the app to overlay the spots it does show. Enter Parkopedia, a purpose-built app just to help you find parking, a huge help if you regularly travel to unfamiliar cities and towns. It even tells you pricing and availability,
with the ability to reserve your spot in advance with locations that are registered with the app.
Download it from Google Play or the Apple App Store.
LUFTRUM Car Air Purifier
Let’s face it, everyone’s vehicle is in danger of being smelly - especially after a long winter. Even the cleanest drivers can be subject to gas, oil, and other smells in the vehicle. For the less clean, a car can be an odour trap for anything that gets spilled on a seat, eaten in the vehicle, or stinky city air.
The LUFTRUM Car Air Purifier uses a double-rotating air purification duct and a 4-stage filtration system to scrub the air in your vehicle. Its high-efficiency filter layers eliminate 99.9% of harmful gas substances, including car exhaust fumes, chemicals from plastic, and odours, such as volatile organic compounds (VOCs), toluene, and formaldehyde, down to 0.1 microns.
This compact yet powerful device has a fan that reaches up to 5300 RPM, consumes only four watts, and has a service life of up to 60,000 hours. It filters the air in just six minutes, purifying up to ten times per hour, all while operating silently. Designed in Sweden, the air purifier sports a high-grade cloth surface treatment and includes PM2.5 sensors to accurately display your car's air quality. It automatically turns on and off with your car's engine and has a touch-controlled 3-speed fan filter. It’s definitely a better solution than the nasty air fresheners you get from the gas station. ■
DEALER PROFILE
It’s family first for these brothers
By Ronda Payne
grandeleasing.com
THEY DON’T HAVE TITLES ON THEIR CARDS.
That’s not what matters to brothers and co-owners of Grande National Leasing, Peter Grande and Nick Grande. But if pressed, Peter admits to being the younger brother and VP, while Nick is the president.
“There’s always something to do and we’re ready to do it,” Peter says of everything from sweeping to taking out garbage to chatting with customers at their Vaughan, Ontario showroom and café. Yes, there’s a café in the building, called Café 1984, named after the year their dad, Joe Grande, started the business.
“Our family came from Grande Pontiac and Buick in Keswick, Ontario in 1977,” says Nick. “And in 1984, my father saw the leasing trend beginning
Grand National Leasing
and people asking about it. He started up Grande National Leasing in 1984 so he sold out of the dealership and we’ve been focusing on the leasing business ever since.”
But leasing hasn’t been the sole focus. These siblings are partners in the truest sense of the word and enjoy working on each other’s ideas as well as working together. They are also best friends.
“We started changing the way the operation looked,” says Nick. “We wanted to be more niche-oriented. We were ordering things like horse trailers that nobody else would lease and Peter targeted the wheelchair accessible market.”
In 2006, Joe told his sons, “I don’t recognize my company anymore. You guys clearly have a grasp on this,” and he retired without holding strings or control. He’d been one of the first to sign up with UCDA, but he simply let his sons do what he knew they could do: be successful in whatever way made sense to them.
But, from their dad, the brothers learned the most important lessons: family matters and everyone who comes into the dealership is family. Perhaps it was his Italian heritage and the close-knit community of fellow Italians in Vaughan, but keeping everyone from the community of
Vaughan (along with more remote customers) close has continued to be very important to the Grande brothers. They welcome everyone openly and honestly.
Although Joe walked away and let the boys run things on their own, he still comes to Café 1984 from time to time to sit with his friends and enjoy an espresso as do many others from the surrounding area.
“It’s a close-knit community at Café 1984 in the back,” says Peter. “People will show up at the back with buns and cold cuts and a spontaneous family meal will break out. There’s nine people in the café right now.”
One fellow comes in on a daily basis and even though he isn’t one of the 17 team members in the business, everyone treats him like he is. He’ll arrive between 2 and 4 pm for a daily hit of caffeine and some laughs and “He’s family,” echoes Nick.
Peter joined the team in 2000 after Nick had been there for quite a while and together they learned that their entrepreneurial sprits were strong. “I am a student of accounting and that’s what I went to school for,” says Nick. “I thought I was going to become an accountant who was going to work at a firm. But Dad said, ‘I just helped you become the greatest leasing president of all time’.”
Then, as Peter joined after graduating from the Canadian Automotive Business School of Canada with a degree in business marketing, they expanded the work they were doing together.
“We did a lot when I first came on board,” says Peter. “We branched out a lot. I had a mission to really help people. That accessible market really speaks to our hearts. Knowing we could go home and know we’re making lives better was, and still is, very important to us.”
The brothers owned an accessible taxi company that they built up and sold. They also went into specialized auto manufacturing for a brief time. Words from Nick’s three-year-old daughter predicted their plan. They conceptualized, manufactured and sold a factory-built wheelchair accessible car – the MV-1.
“Nick’s daughter, when we were building and planning the MV-1 said, ‘why don’t you stop selling cars that people want and start building cars that people need’,” says Peter. “It was a long journey from concept to customer and that was one of the things that motivated us.”
The project even led to a chapter in a book: Influence Marketing by Danny Brown and Sam Fiorella, which coincidentally, the writer of this article
has on her “to read” pile. The industry was impressed by how the brothers were able to connect with their customers. The first 400 MV-1s were sold through Facebook, before they were even completed.
Now, Grande National Leasing includes leasing fleet vehicles, new and used vehicles, financing, after-market warrantees, an insurance department, classic car sales, a small auto spa called Great New Look and of course the café. But there are always other ideas brewing.
“This company has been an absolute rock for our family,” says Nick. “Just consistent. We have some of the best clients in the world.” He says, one of the big joys is watching customers grow. So, while they specialize in supporting two to five vehicle fleets, some of those businesses have since grown to 25 vehicles and the boys relish seeing these companies hit their stride and grow with great success.
“We’re good at keeping a solid relationship,” says Peter. “We’re not going anywhere. Our name’s on the sign.”
Plus, with the background in the Pontiac world, it’s a natural fit for the classics they bring in.
“If it’s got low kms and is unique, I say buy it,” says Nick. “I’m trying to stage the last 20 Trans Ams I just bought over the winter. We’re going to do a splash with the biggest selection of Trans Ams.”
He says it’s about the cars that he saw when he was in high school that he dreamed about.
“Those are the cars I truly, truly love, but we have a mix of all four generations of the cars now,” he says. Peter drives a ’69 GTO.
Clearly, the main source of marketing, if it can be called that, is word of mouth and building on existing relationships.
“It’s beautiful when the 90-year-old grandmother comes in with her grandson to buy his first car,” says Nick. “We’ve always felt that our most important job is taking care of the customer, of course. Especially in our Italian community here in Vaughan. People like to do business where their friends have bought. We like to focus on that.”
In terms of finding business through online channels, they take advantage of their website as well as having very active social media channels on Facebook and Instagram. They also make use of listings through
Auto Trader, Car Gurus, Facebook Marketplace and Kijiji. But the personal touch is their preferred environment. “A big thing, over the last couple of years, we do a car show here once a year in September called Cars and Cannoli,” says Petere. “Anywhere from 150 to 250 cars show up. We really build off our clients that we already have.” Staff is encouraged to go to car shows, walk around and talk and join the community they serve.
“It’s nothing crazy in terms of marketing,” says Peter. “We really just live from a robust reputation that our father started. We’re known as good honest people who do honest business.”
■
THE COMMON LAWYER
AI in the Driver’s Seat: Don’t Let it Steer You Off Course
By Justin Jakubiak and Jonathan Gross
AS THE TECHNOLOGY CONTINUES TO EVOLVE, Artificial Intelligence ("AI") is playing an increasingly prominent role in the way businesses operate. AI is no longer a futuristic concept like we saw in Back to the Future; it’s a powerful tool that can automate tasks, streamline operations, and even drive profitability.
However, despite significant potential benefits, AI may also result in significant legal and business risks. Like any good thing, it is best if used in a mindful and responsible fashion.
AI systems are only as good as the data they are trained on. A machine learning model that is not properly calibrated may misinterpret important legal nuances, rely on outdated law (or law from a different legal jurisdiction), or otherwise cause an inadvertent
breach of a business's legal obligations. Whether you are a small or large dealership, it's crucial that you and your staff understand the potential benefits and pitfalls of using AI in critical areas of your business, such as important legal agreements, regulatory compliance and customer relationships.
1. Important Agreements
Like it or not, important legal agreements are the very foundation of most businesses in Ontario. These agreements include partnership agreements, dealer sales and service agreements, commercial leases and agreements with various banks, inventory lenders and warranty providers.
Get these agreements right, and you will thank yourself later when you hit a roadblock, have a dispute or need to make quick business changes. Get them wrong, and you may find out that you have agreed to terms and conditions that you can't afford, or which will unduly stifle your business operations.
This is why the way legal agreements are drafted, and the protections that are built in for your benefit, are vitally important.
Twenty years on as a lawyer and I am still routinely surprised at how many successful business owners do not take the time to read their contracts
and understand the unique provisions applicable to the business relationship.
When to use AI
AI can be a great tool to help you navigate complex legal documents by providing a summary of key points. It can also be used to help create a template for a basic legal agreement – but beware. AI is nascent technology that, while improving everyday, is still prone to mistakes and hallucinations. Also, in terms of the creation of legal documents, AI relies on prompts and information from the user. Enter in the wrong prompts, or omit key information, and you are likely to receive back a document that is missing key provisions, or the main point!
AI lacks the nuance of human judgment, lacks the context of any negotiations behind the agreement, and cannot anticipate how terms will be enforced in the real-world. A “set-it-and-forgetit” approach using AI could result in significant financial or other business losses.
Also, your lawyer has insurance; AI doesn't. If your lawyer makes a mistake, you will have the benefit of professional liability insurance that can protect you if you suffer damages because of a lawyer's negligence. With AI, you will likely be footing the cost consequences of its errors alone.
2. Employment Contracts
Employment agreements are a routine
dealership document, and I fully appreciate that most dealerships don't want to spend significant legal dollars every time a new hire is onboarded. However, if not drafted correctly, a dealership can be exposed to significant liability – especially with respect to senior management employees with large pay packages.
Employment law is a highly specialized area that is constantly changing. Employment agreements between dealerships and staff must comply with various laws, including those related to employment standards, discrimination, and workplace safety. If drafted correctly, they can severely limit what may be owed upon termination. If not drafted correctly, an employer can be on the hook to pay in excess of 24 months compensation, plus additional damages.
An AI drafted employment agreement may inadvertently include terms that violate key employment laws. For example, an AI tool might create employment clauses that unlawfully waive an employees’ right to overtime, vacation, or other entitlements under Ontario’s Employment Standards Act. Similarly, AI could propose clauses that unintentionally expose a dealership to liability for wrongful dismissal. These could be very costly mistakes.
Moreover, AI can sometimes be too rigid in its application. An employment contract is a personalized document that should reflect the unique relationship between employer and the specific employee. AI may fail to account for specific circumstances, such as an employee’s accommodation needs that may be required for a dealership to meet its obligations under Ontario's Human Rights Code.
3. Advertising and Customer Relationships
While AI has the potential to optimize various dealership functions— such as customer service or advertising—its
application in this area also comes with potential legal and regulatory peril. AI algorithms used to personalize marketing or automate customer outreach may unintentionally breach a dealer's legal obligations, such as compliance with all-in pricing, advertising requirements, disclosure requirements, such as whether a vehicle was used as a former daily rental, and other material fact disclosure requirements.
"Whether you are a small or large dealership, it's crucial that you and your staff understand the potential benefits and pitfalls of using AI in critical areas of your business"
Avoiding the Risks – It Wasn't Me…
While AI can be a helpful tool for drafting standard clauses or providing initial drafts, it’s essential that:
1. A qualified lawyer review any agreements (whether AI-generated or self-drafted) to ensure they accurately reflect your business' interests and comply with local laws and regulations;
2. Any AI tools used in customer outreach are closely monitored for compliance with all applicable laws and regulations; and
3. All employees using AI are properly trained in its use and limitations and understand that AI is not a replacement for their judgment and legal obligations to carry on their duties as a salesperson with honesty, integrity and in accordance with the law.
Trust me when I tell you that OMVIC will not accept "it wasn't me, it was AI" as a defence to any breach of your legal obligations under the MVDA. The buck will always stop with the dealership and its management team.
Conclusion
AI undoubtedly holds great promise for businesses in general, offering significant efficiencies and cost-saving opportunities. However, its integration should be approached with caution. From drafting contracts and optimizing operations, AI can inadvertently expose automotive businesses to
liability if not used carefully.
To avoid these risks, it’s critical that automotive dealers work with experienced legal professionals when implementing AI-driven systems. AI should be viewed as a tool to augment human expertise—not steer it off course.
Justin is a Partner with Fogler, Rubinoff LLP and is recognized by the Law Society of Ontario as a Specialist in Civil Litigation; Jonathan is an Associate Lawyer and a member of Fogler's automotive law group. Most importantly, Justin and Jon love 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 and Jonathan's alone and do not necessarily represent the views and opinions of the UCDA or Fogler, Rubinoff LLP. ■
HOW TO USE AI TO BOOST YOUR ONLINE MARKETING
By Angela West
THE AI BOOM IS HERE, AND MANY OF YOU ARE PROBABLY USING IT IN YOUR MARKETING. While ChatGPT and other free AI solutions are a good start, you’ll level up your game significantly by using paid solutions, which are inexpensive and give you a much larger set of capabilities to work with. AI can save you time which you can use for activities that require more human interaction, such as shooting videos and further refining your strategies to attract the most buyers.
It’s worth paying for better AI tools from Microsoft and Google
If you’ve only been using the free version of ChatGPT, you’re missing out on significant features and, perhaps most importantly, security. Imagine feeding proprietary company data into an open source tool; that’s effectively what you’re doing when you use free AI tools. You’re training their learning mechanisms which are called large language models every time you interact with them. In theory, your competitors can benefit from your work and get roughly the same results.
The best way to get around this and get a better experience overall is to buy into the low-cost options from Google or Microsoft, depending on what you
use at your dealership. Both options wall off your data and do not use it to train their own AI solutions.
If you use Google Workspace, you can sign up for Google’s AI power suite, Gemini for Google Workspace. It offers much more than the free version of ChatGPT, all within the Google apps your staff are already using. Plus, you can just choose to purchase monthly licenses for the users who will need it, not your entire staff. You may want it for your sales staff too though - it will help them craft better emails, sales letters, and much more which will increase their chances of success.
Copilot is Microsoft’s equivalent if your business runs on Microsoft Office, and it offers most of the same capabilities as Gemini for around the same price.
Working with prompts: A beginner’s guide
Prompts are how everything starts with anything AI, and using them is a learning curve. Asking a question such as “Can you give me suggestions for a good marketing campaign” is very different from asking “Can you give me suggestions for a good marketing campaign for <target audience> in <geographic area> for <vehicle>?” The
second one will obviously give you better results.
In its guide to using its own prompts for Gemini, Google advises considering who your target is, what the task is, additional context it can use, and what you want the final product to look like. Your prompt should use natural language like you are speaking to another person, and you should avoid industry jargon where possible.
Google and Microsoft both offer the ability to use prompts to generate images. This is huge, as it removes the need to log into a separate app to find images that will fit well with your campaign or project.
Creating better online campaigns with AI
You can ask Copilot or Gemini to define your target audience for a campaign, then write and generate social media posts, ads, and other materials to speak to that target audience. It should be noted that nearly all of the items generated with AI will have to be edited, but it is still much less work than writing from scratch. Don’t skip this important step, even though it is tempting to do so - most AI fails are due to a lack of editing for accuracy.
Plus the AI knows which words and images to use to appeal to your target audiences, where you may not. If different channels or ads have word limits or character counts, make sure you include that information in your initial prompts.
You don’t want to ditch subscriptions for Canva or Adobe CS just yet for graphics - both platforms have much more robust features for graphics than Google or Microsoft can offer at the moment. Both Canva and Adobe also have significant AI features to generate images and videos for your products, and at this point in time they are better than what is on offer from Microsoft or Google. You can use these AI options to avoid purchasing stock photography for your campaigns.
Podium: AI for Auto Dealers supercharges your website
Podium is a solution that streamlines communication with your customers. Originally conceived as a better way to get online reviews from satisfied customers, it has grown into so much more with an AI assistant tool called AI BDC.
It acts as a chatbot on your site that your buyers can use to schedule test drives, schedule vehicle service, get questions answered about vehicles they are interested in - essentially acting as a basic version of a host to your site
24/7. It doesn’t confine itself to your website either; once your prospect’s information is entered, and with their permission, it will text them - which yields much higher conversion rates than email. It filters out “bad” leads and still has that core functionality of making it easier to rack up Google reviews.
To find out more, visit www.podium. com/industry/ai-for-auto-dealers.
What not to do with AI
AI is meant to act more as a personal assistant than as a replacement worker. While it may seem tempting to replace your marketing staff with AI, don’t. Someone still needs to generate ideas for campaigns, edit the deliverables, plan budgets, place ads, monitor ad performance, and make sure that messaging is consistent and true to your brand.
Instead, use any time freed up by AI to further refine email marketing campaigns, shoot more videos of satisfied customers and charity events, list more vehicles on your socials; the possibilities are endless. You can even ask AI what the most effective use of a marketer’s time is at your dealership - it will tell you!
The trickier question is if it can replace a marketing agency. If you have a longstanding, profitable relationship with an agency, don’t nuke it over the introduction of AI, because you’ll probably have to hire in-house marketing staff to replace their work even with AI use.
You’ll also want to avoid any AI solutions offered by Google, Meta, or any platform for ads. These solutions are meant to do one thing: drain your campaign budgets as quickly as possible. They are not there to help you.
Using AI, you can better target buyers, create outstanding campaigns, and even have a personal assistant for your sales staff that works from your website 24/7. The introduction of AI into the marketplace is the same sea change as the birth of the internet and the advent of social media. If you’re smart about it, you can outflank your competitors in overall sales by using the right tools and not using AI to replace valuable humans. ■
THE OLD CAR DETECTIVE
TORONTO DEALERSHIP O’DONNELL-MACKIE SOLD AUBURNS, CORDS, AND DUESENBERGS
By Bill Sherk
IN NOVEMBER 1929, THE AUBURN AUTOMOBILE COMPANY OF AUBURN, Indiana, introduced the sensational new L-29 Cord named after company president Erret Lobban Cord. With its low-slung body and rare front-wheeldrive, it created a media sensation but came out just one month after the big
stock market crash of October ’29.
The new Cord struggled for sales and was discontinued in 1932 with Auburn cars keeping the company afloat. The L-29 Cord convertible shown here was photographed at the Eglinton Hunt Club on Avenue Road in Toronto with a lady of fashion and her canine companion. This car would have been sold new by O’Donnell-Mackie on Bay Street.
Four years later, the 1936 Cord arrived with even more sensational styling plus front-wheel-drive again and disappearing headlights! It came on the market when Toronto youngster Brian Brady was only eleven years old, but he promised himself that someday he would own one. In his spare time, he hung around the Cord dealership of O’Donnell-Mackie on
Bay Street in downtown Toronto, getting to know the mechanics and sales people who were servicing and selling his dream car.
Brian saw his dream car advertised in the Toronto Star in 1944. The asking price was $1000. He got it for $900 including a small repair at the Cord dealer. He was now a student at Northern Vocational School in Toronto and drove his 1936 Cord convertible to school to the amazement of his fellow students and the teachers.
One teacher mumbled something about “the spoiled youth of today,” not realizing that Brian Brady had earned the money himself by buying and selling several 1936 Ford convertibles on the used car market and always at a profit.
The 1937 model was the last Cord built owing to the Depression.
Brian Brady years later purchased a 1937 Cord convertible with a super-charged V-8 engine and gave it a full restoration. His car won Best of Show in 1963 at the annual car show in Auburn, Indiana. Brian was killed in a plane crash just two months later but his son Mike Brady still owns his dad’s ’37 Cord today.
A 1936 Cord convertible was owned by Toronto high school principal Vern Cunningham, who rented a garage on Millwood Road for his 1935 Auburn speedster, leaving the Cord out on the street. Vern never restored or even licensed that Cord and it is now part of a collection in Michigan (see photo).
PHOTO #1: L-29 Cord at Toronto Hunt Club, first front-wheeldrive car built in volume from 1929 to 1932. No driveshaft meant a lower body.
PHOTO #2: Brian Brady in early 1940s looking at two Cord convertibles in need of restoration.
PHOTO #3: 1936 Cord convertible owned by 19-year-old Brian Brady who drove it to high school at Northern Vocational in Toronto in 1944.
PHOTO #4: Brian Brady’s super-charged 1937 Cord convertible at annual car show in Auburn, Indiana in 1963. It won Best of Show.
PHOTO #5: 1936 Cord convertible fully restored and now in Michigan. This car sat unrestored in Toronto in early ‘60s for lack of garage space.
PHOTO #6: O’Donnell-Mackie on Bay Street in Toronto in 1939 when they switched to selling Ford products. ■
BOOSTING SALES THROUGH TRANSPARENCY AND TRUTHFULNESS
By Phoebe Wolfe
SOMETIMES IT CAN BE TEMPTING TO CUT CORNERS: advertising a slightly lower price to convince potential buyers to visit your lot instead of a competitor’s. Or perhaps your sales staff cuts corners in their documentation to rush on to the next sale. (Or they just hate paperwork.)
However, skipping steps in your sales process may not only contravene the many laws a dealership must follow; it can also lead customers to not trust your brand.
Building trust through transparency takes many forms: marketing, soliciting radical honesty from your customers, and managing customer relationships.
Let’s dig in.
How to Profit from Transparency
Selling cars is not simply about getting the best price for a physical item: it’s about building a solid reputation in your community and offering fair and dependable services.
Customers that perceive a sense of respect and honesty from your brand are more likely to return to your lot and recommend you to their friends and family. This is an invaluable source of high ROI sales since loyal customers are
less likely to negotiate prices with you if they already believe in your business. You want your customers to see you as an informed figure in the automotive field, one that they can share their own comments and critiques with. To gain this trust and welcome mutual transparency, you need to establish your dealership as a “warm brand.”
Defining Brand Warmth
A 2024 study published in the Journal of the Academy of Marketing Science revealed that consumers were much more likely to provide feedback to companies they perceived as “warm.”
A warm brand elicits positive emotions and empathy from their customers, as opposed to distrust and skepticism. To establish yourself as a warm brand, you need to prove your good intentions to your customers. This is where you can use transparency to your advantage. Warm brands don’t exclusively receive warm feedback, however. Research shows warm brands receive more reports of harm incidents (i.e., negative experiences), but the intention of these reports is to provide constructive feedback to reconcile the issue, not to tarnish the brand name.
In short, your customers will give you more useful feedback if they feel
comfortable interacting with your staff and respect your overall brand image.
Managing Criticism
No one likes to be critiqued, but receiving feedback, even if it’s negative, is better than getting radio silence from your customers.
When sifting through customer responses, consider changing your approach to how you handle complaints. Some brands choose to ignore these comments, hoping they get buried underneath other, more positive, responses. But complaints can be an opportunity to improve your customer relations and win back customers.
A complaint gives you an opportunity to revisit the issue with a customer with warmth and potentially resolve their issue to extend their relationship with your brand. It likely means your customers are comfortable sharing their true opinions with you instead of silently ending their contract and seeking a new dealer.
This kind of transparency from your customers should be encouraged, as it can help you improve and retain business. Another way to manage your dealership’s ratings is with review solicitation. Brett
Innis, a senior solutions manager at TechWyse in Toronto, explained how review solicitation can help increase the number of positive reviews you get on a public platform, like Google.
At the end of a service or interaction, a customer will be asked to rate the experience out of five. This rating is only internal, so no one else will see it. If they offer a four or five, they’ll be invited to publish a Google review. Those who give a rating of three or below won’t be asked.
“When the customer leaves a negative review internally,” Innis says, “they’ve often had their chance to vent, so they won’t go out of their way to leave a negative Google review. But you’ll still capture the data so you can handle the situation.”
Accepting criticism does not mean you or your staff should tolerate any abusive behaviour. As upsetting as it can be to know blatantly negative critiques may be out there, it’s not worth trying to reconcile with certain customers if it puts your staffs’ wellbeing at risk.
Clear boundaries around what is acceptable critique vs. blatant insult is important to instill in your brand to avoid entertaining comments that are purely harmful instead of helpful.
Improving Customer Relationships
Let’s explore some tips for applying more transparency to your daily operations to improve customer relationships and increase your overall brand warmth.
Stay Aware of Customer Trends
Start with tracking what customers— yours and others’—are saying about buying a car. The easiest way to do this is through social listening.
This form of marketing involves observing online conversations about not only you but your competitors. It’s
carried out via a social media manager that offers this function. If, for example, you notice a level of dismay at the used car dealerships in your area, you can incorporate those pain points into your marketing. Although we don’t advise naked comments like, “You can trust us” and “We won’t lie to you” in your social media posts, you can describe steps you take with your customers to provide a transparent sales experience. This information will help you better serve customers before they even walk onto your lot.
Uphold Open Communication
Many new customers will come onto your lot with their guard up. They’ll be wary about being misled if they admit their lack of knowledge in automotive sales or trends.
If you and your staff sense this uncertainty, meet it with empathy. Join the customer on their level and provide them with everything they need to make an informed decision. This is a great way to establish brand warmth right from the get-go.
Customers want to be able to ask questions without fear of judgment or being taken advantage of. If a customer admits their lack of knowledge about a certain vehicle, for example, supplement them with honest facts that help them find the clarity they need. Even if this doesn’t guarantee you the final sale, it’ll establish you as an honest seller, potentially increasing your chances of being recommended to other drivers.
Provide Quotes When Requested
Although it may seem like a small gesture, providing free quotes to potential customers is an easy way to display your honesty. This can open the door to transparent negotiation, as well. OMVIC makes it clear that the advertised price of a vehicle must include all fees and charges the dealer intends to collect, excluding HST and licensing. This is referred to as “all-in pricing.” If a customer comes back to you with a cheaper quote from another dealer, take this opportunity to explain what your dealership offers under the price you’ve set.
A customer may not realize all that goes into a properly price disclosed vehicle advertisement.
Keeping up With Customers
When trying to boost your sales, it’s easy to fixate on gaining new customers. Your repeat customers, though, will help establish your dealership or dealer group as a trustworthy destination for buying a car.
Automotive sales are not a one-anddone deal. After a customer purchases a car from your lot, it’s important you be available for questions or concerns they may have about their new ride so your customers will see you as dependable and helpful (i.e., warm).
If you don’t have the means for 24/7 support, set up an automated response
system for requests outside of office hours so customers know when they’ll hear from you.
Create a Loyalty Program
Another way to maintain relationships with customers is to set up a customer loyalty program. This can include discounts and other benefits that can help encourage a customer to return to your dealership instead of moving on to another.
Where possible, tailor your outreach efforts to specific clusters of customers (or even individuals) based on information gathered in customer profiles. This will give customers the sense that you value their personal needs. Stagger your communications so customers have time to get back to you when it suits them, and offer information if they seek it.
Don’t bombard your customers with offers not suited to them. Plus, offering too many bonuses that are unattainable to certain customers can make them feel like outsiders and make you look less trustworthy. Instead, draft incentives strategically based on the existing data from your customer profiles.
Explore Video Marketing
Another avenue that can help demonstrate your transparency to current and potential customers is video marketing. Because videos take away some elements of mystery and façade, customers don’t have to play a guessing game. Customers get to literally see what you have to offer.
Examples of strategic video marketing can include creating vlogs from staff events to share with your customers, showcasing cars that have just arrived on your lot, and documenting updates to your property to make your site more attractive to customers.
Do what you can to make this content
accessible. Including closed captions, for example, will allow you to connect with a wider audience. Video ads typically outperform text or still images with the same message because they’re more engaging for most viewers.
No False Promises
OMVIC’s Code of Ethics stipulates under the section on Disclosure and Marketing that dealers must be “clear and truthful in describing the features, benefits and prices connected with the motor vehicles in which the registrant trades and in explaining the products, services, programs and prices connected with those vehicles.”
Dealers and all sales staff registered with OMVIC must follow the laws set out by the MVDA and consumer protection legislation when they interact with customers. They must also abide by OMVIC’s Code of Ethics. UCDA members are obligated to follow the UCDA’s Code of Ethics, too.
These laws and codes of ethics protect consumers while improving the retail automotive industry’s reputation. OMVIC has procedures in place to deal with anyone registered to sell cars in Ontario whose actions contravene current legislation. It simply pays to play by the rules.
Staying Accountable
Upholding transparency within your dealership isn’t just recommended for business, it’s required. OMVIC has several requirements for transparency under the Retail Transactions Guideline that dealers must follow. These guidelines spell out standards for the following:
• sales contracts for new and used vehicles
• leasing agreements
• credit/financing arrangements
• extended warranties
• service contracts
Under the MVDA, Ontario law also requires registered dealers to provide true information about the vehicles they sell and offer certain protections to consumers in these transactions. For example, dealers must provide accurate information about a vehicle’s history and features. This includes the correct make, model, and year, the odometer reading, and a truthful description of any past use. For example, they must disclose a vehicle’s past use as a rental car or its involvement in any accidents. If any of this information proves to be untruthful, the buyer has various legal protections available to them.
Failure to comply with these standards is not without repercussion. Dealers found in violation of the OMVIC Code of Ethics may face disciplinary measures such as registration suspension, a fine of up to $25,000 per violation, and mandatory education courses. Your infraction details may also be permanently publicized by OMVIC to warn customers.
Dishonesty in your dealership not only harms your brand image and "warmth" but puts you at risk of these fines and potential court cases. If you feel the resolution was inappropriate, you may initiate an appeal. Be aware that in most cases, no new evidence can be presented during this process.
Full details can be found on OMVIC’s website.
The Truth Doesn’t Have to Hurt
Maintaining honesty and transparency with your customer base is an ideal way to establish brand warmth and form better relationships with your audience, creating more potential for sales. Being an honest dealer requires integrity, responsibility, and professional transparency. Although being fully honest with your customers may cost you a sale here and there, it’s better in the long run to create a trustworthy brand image that’ll draw in more customers in the future by showcasing what your business stands for. ■
