APRIL 2023 • MIDATLANTICAUTODEALERSUNITED.ORG How to Choose the Best Payment Processor for Your Dealership Martin named NIADA CEO Dealers AssociationIndependent Automobile MidAtlantic Regional Pennsylvania | Maryland|Delaware MIDATLANTIC MIDATLANTIC AUTO DEALERS UNITED 1501 North Front St., Harrisburg, PA 17102 HIGHLIGHTING PENNSYLVANIA • MARYLAND • DELAWARE 7 Steps to Improve Customer Satisfaction at Your Dealership Digital Merchandising Tools for Car Dealerships PLUS 5 Predicated Automotive Trends to Follow in 2023 DEALER NEWS
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The official magazine of the MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION
PENNSYLVANIA • MARYLAND • DELAWARE
1501 North Front St., Harrisburg, PA 17102 (717) 238-9002 midatlanticautodealersunited.org
Noah Melamed - Chairman Ticket to Ride Auto, Lancaster, PA nmelamed@yourttr.com
Chris Smiley - Advisor Mountville Motor Sales, Columbia, PA rcsmiley@comcast.net
Bert Straub, President 1st Choice Auto LLC, Fairview, PA bertcstraub@gmail.com
Vacant, President - Elect
John DeFilippo - Treasurer DeFilippo Bros. Motorcars, Prospect Park, PA john.m.defilippo@gmail.com
Clint Weaver- Secretary America’s Auto Auction Harrisburg, Mechanicsburg, PA clint.weaver@americasautoauction.com
Tom Hodges, Vice-President Tom Hodges Auto Sales, Hollywood, MD tom@tomhodgesauto.com
Dan Limongelli, Vice-President Jo Dan Motors, Plains, PA jodanmotors@gmail.com
Michael Mansour, Vice-President Car Connection, Inc., New Castle, PA mike@carconnection1.com
Beth Melamed, Vice-President Ticket to Ride Auto, Lancaster, PA bmelamed@yourttr.com
Tom Brandis • tombrandis@netscape.net
Advantage Auto Sales & Credit, Quakertown, PA
Lisa Cohowicz • lisac@nepautoauction.com North East Pennsylvania A/A, Scranton, PA
Jeff Dreier • dreierauto@hotmail.com
Dreier Auto Sales, Shavertown, PA
April Hollobaugh • ajautosalestitusville@gmail.com A&J Auto Sales, Titusville, PA
Kevin Luring • k.luring@yahoo.com ADESA PA, York, PA
James Makia • james@exclusivemotorcarsmd.com Exclusive Motorcars, Randallstown, MD
Dan McNamee • dtlcars@aol.com
Daniel Thomas Auto Sales, Croydon, PA
Gregg Pachik • gregg.pachik@manheim.com
Manheim Philadelphia, Hatfield, PA
Kerri Rotunda • kerrir@corryade.com
Corry Auto Dealers Exchange, Corry, PA
George Smouse • gasmouse@zoominternet.net
Smouse Trucks & Vans, Mt. Pleasant, PA
Steve Worley • worleymotors@hotmail.com
Worley Motors, Enola, PA
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Email heather@piada.org
Copyright 2023
ATTENTION: Effective January 1, 2023 PIADA will be charging a 3% surcharge on all credit card transactions to help us offset the merchant fees we have to pay. The 3% surcharge will not be charged when paying your annual membership fees. NO surcharge applies if paying with cash or check.
7 | How to Choose the Best Payment Processor for Your Dealership
It is crucial to find a partner that understands your needs and can effectively communicate their benefits. In this article, we’ll look at a few considerations when choosing a payment processor for your dealership.
8 | 7 Steps to Improve Customer Satisfaction at Your Dealership
Achieving high levels of customer satisfaction at a dealership can be challenging. Today’s consumers have high expectations and demand a seamless and enjoyable experience when purchasing or servicing a vehicle. Learn how can you improve the customer satisfaction levels at your dealership.
10 | What May Lie Ahead for Wholesale Automotive
As our industry continues to evolve, solutions like these create opportunities to give buyers what they need, when they need it, to be successful in their businesses.
11 | 5 Predicted Automotive Trends to Follow in 2023
Convenience, high-quality customer service, and brand trust are becoming just as important to consumers as affordability; and will need to be focused on in dealership marketing.
17 | NIADA applauds filing of REPAIR Act in House
The legislation would ensure consumers have access to data relating to their motor vehicles, critical repair information, tools, and provide them choices for the maintenance, service and repair of their motor vehicles.
18 | Digital Merchandising Tools for Car Dealerships
Digital merchandising for car dealerships provides an opportunity to use data analytics to better understand customer preferences and target them with tailored offers. Learn about some digital marketing tools that dealerships can use.
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 1
APRIL 2023 | CONTENTS
22 | 2023 Advanced Issuing Agent Training Courses FEATURES 2 | President’s Message 4 | Executive Director’s Message 6 | Legislative Update 14 | The CarLawyer© 16 | Auction Directory 24 | Order Form for Dealership Supplies (PA & MD) MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION SPONSORS q DEPARTMENTS
Tax season is in full swing, and spring is approaching. I want to take this time to welcome Amanda Seiders as our new office manager. She started on March 1.
We have a lot of exciting things coming up. The Mid-Atlantic Independent Dealers Association will have a convention this year—more details to come!
The state of Pennsylvania has created a conundrum with our dealer plates and re-issuance. Please know that your state association is in front of this problem, and John D., our Executive Director, has been in front of PennDOT with very positive outcomes. As well as serving us as board members, Dan L., Noah M., and John D. serve on the Motor Vehicle Board for the Department of State. We are lucky to have them on our team.
This may not be the average president's letter. Still, we are making headway and moving forward with exciting news. We will be launching a CPO program exclusively for our members. I know that healthcare is also on the table, and we want to see how it would benefit our membership. As always, if you have questions or concerns, please feel free to reach out to me personally. n
Martin named NIADA CEO
The National Independent Automobile Dealers Association (NIADA) announced Jeff Martin as its new Chief Executive Officer today.
The NIADA Board of Directors selected Martin, the Executive Director of the Texas Independent Automobile Dealers Association, to lead the 75-year-old dealer driven association. Martin will be starting his new role March 20.
“Jeff is absolutely the right person to carry us forward,” said Scott Allen, President of the NIADA Board of Directors. “In our search for a CEO, we explored our options, and there was one particular person who checked all the boxes. Jeff has a servant’s heart, is full of integrity and has empathy for our community and industry.”
Martin has more than 20 years of experience working in the association industry, including serving as the executive director of TIADA since 2006. He’s helped TIADA grow its annual budget from $630,000 to more than $2 million and increased membership from 850 to nearly 1,300. Martin started his career as a field representative with the Association of Texas Professional Educators, rising to Director of Member Services and helping the association grow from 65,000 to 107,000 members.
“I could not be more excited to join NIADA,” Martin said. “There is a very talented, professional and dedicated group already at NIADA, and I can’t wait to be a part of that team. I look forward to working with the dealers, industry partners, staff and state executives to build the association they all deserve.”
Since mid-December, Melanie Wilson has served as NIADA’s interim CEO. She previously was the CFO for the association. “I want to applaud Melanie and the entire NIADA staff for their professionalism and focus during this interim,” Allen said. “I look forward to seeing what the NIADA team will accomplish moving forward.” n
2 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 q PRESIDENT’S MESSAGE
BERT STRAUB, PRESIDENT MIDATLANTIC REGIONAL IADA MANAGER, 1ST CHOICE AUTO, LLC FAIRVIEW, PA
THE MIDATLANTIC REGIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION CONFERENCE RETURNS
JOHN ODORISIO EXECUTIVE DIRECTOR MIDATLANTIC REGIONAL IADA MidAtlantic IADA Members,
When I became your Executive Director late last year, I pledged to " bring value " to you as our members.
Here are two examples from last week of the work we are doing for you, our members:
1. A PA dealer member notified us recently of a ' curb stoner ' selling vehicles in the front yard of a near by property with no dealer license. Working with the Department of State, the ' curb stoner ' was shut down last week.
2. On Thursday, March 2 we met with PennDOT on behalf of our PA members who did not receive the
REMINDER
2023 Dealer Discount Book
As a MidAtlantic IADA member, you will receive the 2023 Dealer Discount Book valued at over $20,000 worth of coupons with your membership.
Use your coupons at two or three participating auctions per year or sell service contracts for the participating warranty companies. You will more than get back your annual dues to MidAtlantic IADA.
number of dealer plates they had requested last fall. We explained to PennDOT the reasons why dealers may ask for a specific number of plates, regardless of the number of salesman or vehicles they sell. To their credit, PennDOT listened and understood our concerns. They told us to have any member who didn't get their desired number of dealer plates complete the Justification Form ( enclosed ) again
and to specifically state the BUSINESS reasons for the additional plates.
The Justification Form should be completed and sent to PennDOT for review at: RA-PDDEALERSREISSUE@pa.gov
Finally, if you haven't heard we are resuming our annual convention this year! The site will be Caesars Atlantic City, September 2426. More details to follow soon. n
4 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • q EXECUTIVE DIRECTORS MESSAGE
The Importance of Grassroots Advocacy
By Tyler Burke, Associate, Milliron & Goodman Government Relations
On January 3, 2023, the Pennsylvania General Assembly began a new two-year legislative session. Over the course of the next two years, they will consider multiple pieces of legislation that could have a significant impact –positive or negative– on the Pennsylvania Independent Automobile Dealers association (PIADA). Whether you’re supporting or opposing a bill or regulation, grassroots advocacy is now more important than ever, as we most recently saw with the issue of dealer reissuance program by the Pennsylvania Department of Transportation (PennDOT).
Once upon a time, it was not out of the ordinary for incumbents to serve twenty or thirty plus years. Long-serving veteran members were often valued not only for their experience and expertise on issues, but also as legislative champions. However, politics, retirements and frustration with the legislative process have paved the way for an influx of new members. In 2023, we are experiencing unprecedented turnover in the General Assembly with at least 54 new state legislators elected in the 207th Legislative session of the General Assembly.
With every freshman class, challenges lie ahead. There is a learning curve, a new set of priorities, and competing interests. Without outspoken advocates, issues can quickly get lost in the thousands of bills introduced each legislative session.
Elected officials want to hear from their constituents – the people who elected them and can re-elect them. Building strong, personal relationships with legislators and their staff is one of the most important, yet overlooked, aspects of working in the automotive business.
In the short-term, you are putting a face on an issue that allows legislators to connect beyond the facts and figures. In the longterm, you are developing legislative champions who will seek your advice
before addressing industry-related issues affecting your community.
We strongly encourage you to get to know your legislators – whether it’s coffee to introduce yourself, a meeting (in-person or virtual) to discuss an issue or inviting your legislator on a tour of your facility. All are examples of community and grassroots advocacy and effective ways to build relationships with your legislators.
Finally, we’d like to share a few grassroots tips we’ve learned along the way:
10 Tips on Effective Grassroots Advocacy
1. Before contacting your legislators, do a little homework. Research their biography, committee assignments, cosponsor memos and legislation sponsored. This will offer some insight into their legislative interests. You might also discover that you attended the same school or have a hobby in common. The Pennsylvania General Assembly website is a great place to start.
2. If you do not know or have never met your legislators, you should attempt to make your first meeting a friendly, get-acquainted occasion. This could be as simple as introducing yourself as a constituent at a town hall meeting or local event. Follow-up by scheduling a personal meeting in their office or a virtual meeting through ZOOM or TEAMS.
3. Take advantage of additional opportunities to connect with your legislators – whether inviting your legislators to attend an open house, an award ceremony, or a promotional event. Likewise, opportunities might arise through involvement with professional organizations, civic or charitable organizations, or political parties.
4. The hometown connection is essential to getting a legislator’s attention, so always identify yourself as a constituent – where
you live and how you are connected to the community.
5. You are the expert on your issue and knowing what your business or community needs. You are meeting with the legislator as a constituent. You do not have to be an expert in the legislative or regulatory process.
6. If discussing an issue, be brief, clear, and accurate. Telling your story by sharing your experiences, struggles and solutions is the most persuasive message. Allow the legislator to offer his or her view on the issue and ask questions. If the legislator asks questions that you cannot answer, be honest and provide the requested information later.
7. Your legislator may not always agree with your position. Be persistent, but not argumentative. Provide points supporting your issue. Ask thought provoking questions that will encourage him or her to contemplate your position. Keep in mind that a legislator who opposes you on an issue today may become a valued ally on a different issue tomorrow.
8. Get to know your legislator’s staff. They usually have more time to devote to your issues and have more time to learn the details of an issue before briefing their legislator.
9. Always express appreciation. Follow-up with a thank you letter or e-mail that briefly restates your main points and includes any information you offered to provide.
10. Once acquainted with your legislators, it is important to maintain an ongoing relationship. Stay informed about your legislator’s activities by subscribing to his or her newsletter via their state website. Attend and participate in town hall meetings. Invite your legislators to your dealership to meet with your colleagues. n
6 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
q LEGISLATIVE UPDATE
How to Choose the Best Payment Processor for Your Dealership
By Mike Freeney, Regional Manager for Electronic Merchant Systems
The pressures that independent car dealerships are under in 2023 can sometimes feel daunting. The industry has dealt with a pandemic, dwindling inventory, and higher prices in the last few years. With these challenges, however, has come innovation. Even as buyers are more open than ever to the idea of internet transactions for large purchases, they will still interact with car dealerships often. This is where your payment processing comes into play. It is crucial to find a partner that understands your needs and can effectively communicate their benefits. In this article, we’ll look at a few considerations when choosing a payment processor for your dealership.
POINT OF SALE RELIABILITY
Because dealerships offer a unique set of payment processing challenges, finding the proper point-of-sale hardware can take time and effort. Any system you choose will need to handle large purchases and recurring payments. Simplicity is paramount whether payments are made over the phone, online through email invoices, or in person. A quick and feature-packed system will foster customer loyalty and make payments easier for your staff.
MOBILE PAYMENTS
Mobile payments should be a consideration when choosing a processing partner. Remove an extra barrier and allow customers to pay on the lot with a mobile card reader. Just use your phone and accept card payments faster than ever. When you meet more payment needs, you bring in more customers looking for flexibility in their payment options.
VIRTUAL TERMINAL
The used car business is changing rapidly, and it is more important than ever to meet your customers where they are. A virtual terminal is an interface built into a payment gateway that will allow you to take payments through any webconnected device. This secure solution will handle recurring payments efficiently and help you set up an automatic billing schedule at the time of purchase to make the payment process a breeze for your customers. It is also crucial to look for security in a processing partner. Your buyers are making a massive purchasing decision, and alleviating security worries will create loyal customers.
FEES AND RATES
Every dealership wants to avoid high processing fees. Profits are already slimming, and the last thing you need is a card processor wiping out your gains. When comparing processors, there are several fees to consider. Chargeback fees, setup costs, and monthly fees are a few that you’ll need to add up for each processor to get a clear picture of your monthly cost. Negotiating and researching the best rates will ensure you make as much money as possible while letting your processor work in the background. Receiving the lowest rates is vital when handling large transactions. Unfortunately, some payment processors are less scalable, and fees add up quickly. Requesting a rate review can guarantee low rates for your dealership and peace of mind for your customers, who won’t have exorbitant costs added to their transactions. This will allow you to view your current rate side by side with the rate being offered by any
potential processor and make a decision with ease.
Determine which pricing model works best for your dealership. Using an interchange-plus pricing model, you will pay the interchange rate required for each transaction plus a markup for other fees. A flat-rate pricing model gives one rate for each transaction type, covering all services and fees. The best pricing model for you greatly depends on the transaction types you accept most frequently.
CUSTOMER SERVICE
You don’t have time to deal with payment processing issues. Time is money, and even a few hours without service could be costly. Your payment processor should be available 24/7/365 with no exceptions. Having a team dedicated to your wellbeing at all hours will give you peace of mind when driving over road bumps. Compare Google Reviews of various processors to verify that their team is knowledgeable and always available over the phone to help your dealership. n
Mike Freeney is a Regional Manager for Electronic Merchant Systems. EMS has over 30 years of merchant services experience and is the largest independently owned credit card processing company in North America. We are proud to be a PIADA partner and provide top-tier payment processing to used car dealerships in the Pennsylvania area.
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 7 FEATURE
7 Steps to Improve Customer Satisfaction at Your Dealership
By Bill Springer, DriveSure
Achieving high levels of customer satisfaction at a dealership can be challenging. Today’s consumers have high expectations and demand a seamless and enjoyable experience when purchasing or servicing a vehicle. And unhappy customers are more likely to spread negative word-ofmouth, leading to a decrease in business and overall profitability.
Higher customer satisfaction helps boost retention, and boosting retention by only 5% can increase your profits by up to 95%.
So, how can you improve the customer satisfaction levels at your dealership?
1Introduce a hybrid sales + F&I staff model
A Hybrid Sales/F&I Staff Model involves training sales staff to handle both sales and finance and insurance (F&I) responsibilities.
This can help lift customer satisfaction by reducing the number of hand-offs and allowing customers to discuss F&I products at the beginning of the process, rather than being passed from person to person (which happens with the typical sales-to-F&I hand-off).
In fact, a Honda dealership in Anchorage found that implementing a hybrid role led to a 90 percent drop in chargebacks
(the money a dealership must repay when customers refinance loans or cancel F&I products).
2Adopt customer satisfaction roadmaps or checklists
One way to improve customer satisfaction is to create a customer experience roadmap that focuses on customer satisfaction and care, rather than just sales volume.
Salespeople can use a checklist to ensure a smooth delivery, with items like showing the customer all key tech features or ensuring the BEV or hybrid vehicles are charged when they leave the lot. These can be VIN-specific lists that change depending on the vehicle.
Have the customer sign off on the list to confirm everything has been covered. Some dealerships use tablets to make this whole process easier.
3Improve the waiting experience
Many dealerships have an uncomfortable waiting experience, whether it’s in the showroom or the service department. This can lead to agitated and unhappy customers, lowering their overall satisfaction with the dealership.
When customers are unhappy with their waiting experience, they may feel frustrated or even resentful towards the dealership,
leading to negative word-of-mouth and a decrease in customer loyalty.
To improve customer satisfaction, dealerships can focus on three main areas:
• A more comfortable waiting experience
Find ways to make the waiting experience more comfortable, such as offering better entertainment, food and beverages, more comfortable chairs, or other amenities.
• Eliminating the wait
Another option is to eliminate waiting entirely by offering to pick up or drop off customers when they come in for service. Rideshare is becoming increasingly popular as a dealership amenity, as well.
• Better communication and managing expectations
You can also reduce some of their frustration by communicating expectations as early as possible in the process and being as accurate as possible when telling them how long they can expect to wait.
Great communication is about building relationships with your customers beyond the sales relationship. If something changes, explain why and let them know how it affects their wait time. You may need to take steps to right the situation if the wait time is getting unrealistic (such as with a discount).
8 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 INDUSTRY INSIGHT
Speaking of communication…
4Improve your communication channels with customers
Great communication is the low hanging fruit of customer satisfaction. Effective communication with customers is key for building long-term relationships and boosting retention at your dealership.
Here are a few channels to consider improving or adding:
• Direct mail: personalized direct mail pieces can remind customers about upcoming service appointments or offer special deals.
• Text messages: the majority of customers prefer to receive updates about their service via text message.
• Email reminders: sending personalized emails to customers can congratulate them on their new car purchase or provide helpful tips and information, building the relationship beyond promoting services.
• Clear website: a well-organized and informative website can make it easy for customers to find information about services, creating a positive experience.
• In-person communication: ensure that sales and service teams have clear communication processes in place, including follow-up phone calls and thank you notes.
• Post-sale communication in particular is important, as it’s often overlooked as a moment for improving satisfaction.
5Improve the post-sale or post-service experience
While upselling is important for revenue, make sure it doesn’t come before providing quality service to customers. After a customer has purchased a car or received service at your dealership, continue to improve the process by providing a positive post-sale or post-service experience.
Some ways to do this include:
• Sending a personalized thank you after their purchase
• Showing them how to set up an appointment for future services
• Scheduling their first service
appointment at the time of vehicle delivery
• Giving customers a specific contact in your service department
• For post-service, have your service advisors explain the work that was done, why it was necessary, and what they might recommend during the next visit.
The post-sale and post-service interactions are pivotal retention moments that shouldn’t be treated lightly.
6Create a customer feedback loop
Creating a customer feedback loop is an important step in continually gathering insights and improving the overall customer experience at your dealership.
This can be done through surveys or casual conversations with customers, but it’s important to remember to respond and take meaningful action based on the feedback received.
Without a response or action, the feedback loop fails to be effective. By constantly receiving and responding to customer feedback, your dealership can keep its finger on the pulse of your customer base and make ongoing improvements to the customer experience.
7Provide unique, value-added incentives
One of the quickest ways to boost customer satisfaction is by offering new amenities and incentives that show you understand their needs and expectations. A single amenity may not win over hordes of new customers but continuing to offer new and unique benefits can help establish longterm relationships with existing customers and keep them coming back.
One way to do this is by using a service like DriveSure, which empowers new-car dealerships to provide a suite of renewable benefits with every qualifying service visit. These benefits (like dealer-loyal roadside assistance, and road hazard tire protection) set your dealership apart from the competition and give your customers a compelling reason to return to you more often for service. n
Depreciation of used vehicles continues to slow.
According to BlackBook’s weekly market insight, wholesale prices had their lowest overall depreciation since the end of June 2022 in early February.
“The reduction in weekly depreciation that started a couple of weeks ago continued again last week,” said the latest BlackBook release.
The overall market was down 0.25 percent from the previous week. Used cars were down $46 downs or 0.30 percent. Used trucks and SUVs were down $48 or 0.23 percent.
Two classes of vehicles — sporty cars ($44) and compact crossover SUVs ($21) — gained in values.
The BlackBook retail price index stayed at 0.98 of the start of the year price for the second straight week. The index is based on approximately two million 2-6-year-old vehicles listed for sale on U.S. dealer lots.
Retail inventory remains down from the start of the year at 99 percent. Vehicles are taking 50 days to turn, the same as the previous week. It is four days longer than the first week of the year.
BlackBook also this week released its used vehicle retention index for January, which was down nearly 2 points from December at 167.7. The index provides a view of the used vehicle wholesale market, measuring the trend in percent retention from original MSRP of a typical4-year old vehicle in the market.
The index was down 14.8 percent from last January, when the index reached its all-time high of 197. n
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 9
INDUSTRY INSIGHT
What May Lie Ahead for Wholesale Automotive
By Grace Huang, Cox Automotive
The new year is always an exciting time to reflect on the past and look ahead with optimism to a fresh start full of opportunities.
For the automotive industry, 2022 was another turbulent year. In the wholesale space, it included tight used vehicle supplies and unprecedented declines in used vehicle values. In fact, the Manheim Used Vehicle Value Index ended the year down 14.9%, the largest one-year decline in the series’ history.
The good news is that while the last three years have been challenging, all indicators point to it reaching equilibrium in the second half of 2023.
Notably, we are also seeing digital-only retailers purchasing auction facilities, a move that reinforces the importance of physical auto auctions despite the acceleration of digital transactions. As evidence, a large majority of our dealers continue to prefer digital channels to conduct business with 75% of vehicle purchases being made by digital buyers. Having both a digital and a physical presence is going to be vital for delivering the type of experiences dealers will require in the future.
The growing digital adoption was accompanied by other marketplace changes last year, such as the convergence of wholesale and retail, the demand for more accurate vehicle information, the need for integrated data to make better decisions, and the importance of having highly efficient transportation logistics. Here are three key areas I believe offer the greatest opportunity for the wholesale industry to prepare for what lies ahead.
1. VEHICLE INFORMATION
As digital buying accelerates, dealers are requiring more vehicle information than ever before. This includes enhanced online images that allow them to zoom in on key details such as dents and scratches to make
more informed purchase decisions. We are also seeing a rise in dealers using alternative channels to source vehicles beyond physical auctions.
And yet, as these types of digital transactions continue to climb, they will never truly replace the physical in-lane experience. That is why Manheim is focusing on solutions to deliver a digital buying experience that is as good as seeing it in person, including technology that leverages artificial intelligence (AI) and machine learning capabilities.
For instance, AI-driven fixed imaging tunnels can take high-res images of a vehicles while it’s in motion. Not only does it capture still images from the video, but it also understands the vehicle in three dimensions to assess its condition using AI. In addition, undercarriage imaging technology can give dealers a more comprehensive view of the vehicle to increase their confidence and trust when buying online.
Our industry also needs to prepare for a growing EV market with Cox Automotive data projecting new EV sales in 2023 will exceed 1 million units. Facility and process improvements are a must for sharing battery health information and charging performance data with buyers. And with the battery pack representing up to 40% of the cost of an EV today, having battery diagnostic technology and expertise is critical to properly servicing EVs and accurately assessing their value.
2. ACTIONABLE DATA FOR DECISION MAKING
We all know the business adage: Data rules! And, while more information is always better, I believe it is also important to give buyers actionable data and solutions to help them make more informed decisions across their wholesale and retail operations.
What does this look like? It means helping
dealers source inventory more effectively, enabling the ability to search across nearly every wholesale marketplace all in one place. And by equipping them with critical insights, they can efficiently determine each vehicle’s value in their local market. In a variable market, dealers need solutions driven by data science that allow them to maximize the profit potential of each individual vehicle.
3. TRANSPORTATION AND LOGISTICS
Transportation and logistics have become increasingly important in the wholesale marketplace as dealers continue to embrace digital buying, with more vehicles being sold offsite from physical auctions. This move significantly impacts the historic supply chain that was set up to bring cars in and out of auctions in bulk.
Creating a seamless supply chain management system can improve overall delivery time (SLAs), enrich business intelligence and analytics, drive cost effectiveness and minimize the impact of external forces, such as fuel and inflation. This approach will also help dealers prepare for the future of online selling, where consumer deliveries will become more commonplace. All of these supply chain capabilities will give dealers a competitive advantage by simplifying their worlds and allowing them to focus on selling vehicles.
As our industry continues to evolve, solutions like these create opportunities to give buyers what they need, when they need it, to be successful in their businesses. n
Grace Huang is president of the Inventory Solutions business unit at Cox Automotive. Last month, she joined Cox Automotive chief economist Jonathan Smoke on his Q4 Manheim Used Vehicle Value Index Call to discuss what lies ahead for the wholesale automotive market in 2023 and how Manheim and Inventory Solutions are preparing for that future.
10 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
5 Predicted Automotive Trends to Follow in 2023
By RevolutionParts.com
USED CAR SALES WILL RISE AND PRICES WILL LOWER
Disruptions in the supply chain have been causing havoc for dealers the past year, leading to a shortage of new vehicles and a price hike for new and used cars. Fortunately for car buyers, the price of vehicles is expected to come down in 2023, and sales are expected to rise. According to J.P. Morgan, the prices of new vehicles are expected to drop by 2.5% to 5%, and used vehicles are expected to drop by 10% to 20%. This price drop will lead to a rise in used cars on the road, which typically requires more repairs and maintenance than new vehicles, which means more revenue opportunities for the parts department and service lane.
PARTS SUPPLY CHAIN ISSUES WILL CONTINUE
Supply chain issues that began in 2020 due to the pandemic are likely to continue into 2023. In fact, many believe that supply chain interruptions won’t plateau until 2025. This is especially true for auto parts. As manufacturers continue to push out new vehicles and accompanying technology, older parts will be harder to come by. While this wouldn’t be a problem in a high new-car buying market, in today’s market, where most vehicle owners are choosing to keep older vehicles for longer, it’s a sizable challenge for parts departments. Older auto
parts in scarce quantities may see increases in price.
EV SALES WILL CONTINUE TO RISE
The number of electric vehicles and hybrid models in the market is expected to increase. This increase may significantly impact the profitability of the parts department. Electric vehicles require less maintenance as they require fewer parts to operate, meaning less business for fixed ops. To combat this, dealers will need to change their strategies to take advantage of this change. Dealers should find ways to sell more ICE parts, service more used cars, and cater to EV owners.
CROWD-SOURCED DELIVERY WILL RISE IN POPULARITY
Consumers looking for parts are searching for websites and platforms that can quickly deliver parts to their doors sameday. Since the pandemic, crowd-sourcing apps and similar platforms have become consumers’ most popular way to shop. Parts departments should be looking to take advantage of these types of services. Partnering with companies like Lyft, DoorDash, and so on can help parts departments maintain a competitive edge in their local market. RevolutionParts makes partnering with crowd-sourced drivers to make local deliveries easier. Whether you
need to deliver a part to a retail or wholesale customer or pick up a part for your service lane, our Local Delivery will help you get your parts where they need to go, with an average delivery time of just under an hour.
PRICE-FOCUSED MARKETING WILL LOSE ITS IMPACT
Consumers are becoming increasingly well-informed when making online purchases. They’re comparing multiple elements to find the best products that fit their needs. Auto parts are no exception. While the crux of automotive marketing (and parts marketing) has been focused on getting parts at a great price, price-focused marketing may be starting to lose its impact on online consumers.
Consumers today are still interested in getting a good deal, but their values are becoming more aligned with a quality buying experience overall. This includes things like the quality of the product, quality of the service, and delivery convenience. Parts departments (and dealerships as a whole) will need to rethink their marketing strategies to focus less on price and more on value. Convenience, high-quality customer service, and brand trust are becoming just as important to consumers as affordability; and will need to be focused on in dealership marketing. n
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 11
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As the nation’s leading provider of end-to-end wholesale vehicle solutions, Manheim is here to help you be more successful with the in-lane and online tools you need.
VISIT OUR MID-ATLANTIC LOCATIONS
Manheim Baltimore-Washington
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The CARLAWYER©
By Eric Johnson, Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®
The Bureau's sample letter sent with each order states: "Information provided in response to the Order is intended to be used for monitoring the risks to consumers in the offering or provision of consumer financial products or services, including developments in markets for such products or services, although the Bureau reserves the right to use and share internally the information for any purpose permitted by law."
prior order. The company did not admit or deny these allegations, but it agreed to the entry of a 5-year consent decree that includes a $10 million penalty, a $5.05 million redress plan, and requirements to implement and maintain robust controls to ensure future compliance.
Case(s) of the Month
Here’s our monthly article on selected legal developments we think might interest the auto sales, finance, and leasing world. This month, the developments involve the Federal Trade Commission and Consumer Financial Protection Bureau. As usual, our article features the “Case(s) of the Month” and our “Compliance Tip.” Note that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you or if you have questions.
FEDERAL DEVELOPMENTS
On February 9, the Federal Trade Commission provided its annual letter to the Consumer Financial Protection Bureau summarizing the Commission's enforcement actions, research and policy initiatives, and education efforts in 2022 related to the Equal Credit Opportunity Act.
On February 14, t he Consumer Financial Protection Bureau released a report examining debt collection tradelines on consumer credit reports from 2018 to 2022.
On February 23, the Consumer Financial Protection Bureau announced in a blog post that it issued "market-monitoring" orders to nine large auto financing companies requiring that they submit certain data about their auto financing portfolios.
On February 23, the Consumer Financial Protection Bureau announced that it issued a consent order against title lending company TMX Finance LLC, otherwise known as TitleMax. The consent order alleged that, between October 2016 and September 2021, the company made at least 2,670 auto title loans to covered borrowers that exceeded the Military Lending Act's 36% rate cap. The Bureau also alleged that the loans included mandatory arbitration clauses and notice provisions prohibited by the MLA. According to the Bureau, the company also withheld information about military families' rights under the MLA and changed borrowers' personally identifiable information so they would not be identified as servicemembers or covered dependents in the MLA database maintained by the Department of Defense. In addition, the Bureau alleged that the company violated the Consumer Financial Protection Act by unfairly charging borrowers nonfile insurance fees when the product provided no coverage or benefit. Finally, the Bureau alleged that the company violated the Truth in Lending Act and the CFPA by failing to properly disclose non-file-insurance fees as part of the finance charge and APR on certain loans. In its press release, the Bureau labeled the company a "repeat offender" because the company had been subject to a 2016 consent order, although the Bureau did not allege that the company violated this
Dealership Liable for Violating Maryland Consumer Protection Act and Breaching Implied Warranty of Merchantability by Mispresenting that Vehicle Had Been Reconditioned: An individual bought a used minivan from a dealership. Incorporated into the purchase price of the minivan was a "reconditioning fee." Before the purchase, the buyer noticed animal hair and an odor inside the minivan and notified the dealership. The dealership represented before the purchase that it could completely remove the odor in the minivan. After the sale, the dealership could not remove the odor. The buyer then took the minivan to an independent detail shop, which found a mouse infestation in the minivan but could not remove the odor. The buyer then hired a biohazard cleaning company to remove the odor, but it was unsuccessful as well. The buyer later traded in the minivan for a used vehicle at another dealership. The buyer sued the dealership for violating the Maryland Consumer Protection Act and for breach of the implied warranty of merchantability, among other claims. The trial court found in favor of the buyer and awarded her damages and attorneys' fees and costs. The Appellate Court of Maryland affirmed. First, the appellate court concluded that the trial court did not err in finding a violation of the MCPA. The dealership argued that there could be no MCPA violation because its promise to eliminate the odor from the minivan was not a misrepresentation but merely a promise to do something in the future. The appellate court disagreed,
14 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
stating that "[t]he misrepresentation that the trial court found was not about [the dealership's] promise to remove the minivan's odor in the future. Rather, [the dealership's] misrepresentation was that the minivan had been 'reconditioned,' a representation [the dealership] made when it 'incorporated' a $1,295.00 'reconditioning fee' into the sales price. Even if 'reconditioning' meant only a 'thorough cleaning,' [the buyer] saw animal hair in the vehicle at the dealership, an observation that led the trial court to conclude that the minivan had not been 'thoroughly cleaned' prior to sale."
The appellate court rejected the dealership's argument that the buyer did not rely on the misrepresentation because she bought the minivan knowing of the odor. The evidence showed that "while [the buyer] knew about the odor before purchasing the minivan, it was [the dealership's] misrepresentation that it could 'completely remove' the odor that 'substantially induced' [the buyer] to make the purchase." Next, the appellate court concluded that the trial court did not err in finding a breach of the minivan's implied warranty of merchantability. The appellate court found that the dealership was not entitled to a second chance to remediate the minivan's odor. According to the appellate court, when the buyer accepted the minivan, it was a nonconforming good for which she expected a cure within a reasonable amount of time. The trial court concluded that the dealership's one opportunity to cure was reasonable based on the totality of the circumstances, and the appellate court agreed. See Rich Morton's Glen Burnie Lincoln Mercury v. Williams-Moore, 2023 Md. App. LEXIS 36 (Md. App. January 12, 2023).
COMPLIANCE TIP
Our Case of the Month is an interesting one; not from the Seinfeld-like odor that won’t go away, but from the aspect of ensuring that if you’re charging the consumer a fee for a service you provide that you confirm you’re able
to provide that service. By including a reconditioning fee into the sales price, the dealership made a representation that the minivan had been “reconditioned.” Even if the “reconditioning” meant only a “thorough cleaning,” the buyer in this case reportedly saw animal hair in the vehicle at the dealership, an observation that led the trial court to conclude that the minivan had not been 'thoroughly cleaned' prior to sale." It’s time to take a long hard look at the fees and charges you assess consumers at the time of sale to ensure that the services you’re charging are actually provided to the consumer (and provide value).
So, there’s this month’s roundup! Stay legal, and we’ll see you next month. n
Eric (ejohnson@hudco.com) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®, a monthly legal newsletter for auto dealers and a contributing author to the F&I Legal Desk Book. For information, visit www.counselorlibrary. com. ©CounselorLibrary.com 2023, all rights reserved. Single publication rights only to the Association. HC# 4888-38000211. HAPPY
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 15 with this special offer... To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877.464.8326. Also follow us on 000000 It’s time to change your approach to F&I compliance Subscribe to Spot Delivery® and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW®, CARLAW®II Street Legal or CARLAW® Reloaded. Delivery SPOT Vol. 21, Issue 7 January/February 2019 A Monthly Legal Update for Auto Dealers and Finance Companies from Coun elorL b y publisher of ® 5 Federal Law What Access Problems? By Thomas B. Hudson 6 Insurance Issues Vendor’s Single Interest Insurance—Important Pesky Details By Elizabeth C. Yen 8 Privacy The Brand-New Right to Privacy in California By Patricia E.M. Covington 10 Commentary Post-Election Musing By Michael A. Benoit 11 Arbitration Arbitration Clause in Vehicle Retail Installment Contract Applies to Buyers’ Defamation Claim Against Salesperson By Latif Zaman 12 Jurisdiction Sued Out of State? By Nicole F. Munro 13 Marketing Like to Live Dangerously? Have I Got a Deal for You! By Eric L. Johnson 14 Consumer Financial Protection Bureau CFPB Watch Michael A. Benoit IN THIS ISSUE: DEALER/BANK RELATIONS Dealers Are from Mars, Finance Companies Are from Venus By Thomas B. Hudson* WARRANTY LAW Words (and Texts) Matter: When “As Is” Does Not Mean “As Is” By Catharine S. Andricos and Christopher J. Capurso* (see DEALER/BANK RELATIONS, page 2) When you sell something “as is,” what do you generally understand that to mean? Our guess is something along the lines of “what you see is what you get.” When a used car is sold “as is,” the Federal Trade Commission requires the dealer to post a Buyer’s Guide on the car, with a checkbox indicating sold “AS-IS – NO DEALER WARRANTY” (along with a NOT PROVIDE A WARRANTY district Over the years, I have represented both dealers who enter into retail installment contracts and the banks and finance companies that buy the RICs from the dealers. In working with folks from both sides of this divide, I quickly concluded that, in viewing dealership financing, the dealers were looking through one end of the binoculars, while the banks and finance companies were looking through the other end. I’ve found that there are few dealers who understand that, in a typical RIC transaction, the dealer is the creditor. Many (most?) dealers feel that they are in the business of selling cars and that the financing of those sales transactions is the job of the bank or finance company, entities that dealers regularly erroneously refer to as “lenders.” These dealers might consider themselves as agents in gathering credit and other information from car buyers and in getting the RICs and other related documents signed by the buyers. But, if you asked these dealers if they financed their buyers’ purchases, they would deny it.
EASTER
AUCTION DIRECTORY
PENNSYLVANIA
ADESA MERCER
758 Franklin Road, Mercer, PA 16137 724.662.4500 / Fax: 724.662.8716
Friday 9:00 AM
Office M-W: 9-4:00; TH: 9-5:00; F: 8-5:00 adesa.com
ADESA PA
I-83 Ex. 28 (Old Ex. 12), 30 Industrial Rd. York, PA 17406
717.266.6611 / Fax: 717.266.7650
Wednesdays 9:00 AM; INOPS 8:30 AM
Specialty Sale every 4th Wed 8:30 AM adesa.com
ADESA PITTSBURGH
378 Hunker Waltz Mill Rd. New Stanton, PA 15672
724.925.4700 / Fax: 724.925.4701
Tuesday 9:00 AM pittautoauction.com
AMERICA'S AA - HARRISBURG
1100 S. York St., Mechanicsburg, PA 17055 717.697.2222 / Fax: 717.697.2234
Thursday 8:45 AM harrisburgautoauction.com
AMERICA’S AA - LANCASTER
1040 Commercial Ave., P.O. Box 406 East Petersburg, PA 17520 717.569.5220 / Fax: 717.569.3109
Wednesday 9:00 AM; INOPS 8:30 AM americasautoauction.com
AMERICA’S AA - PITTSBURGH
55 E. Buffalo Church Rd. Washington, PA 15301 724.225.1777 / Fax: 724.225.7223
Thursday 12:30 PM americasautoauction.com
AMERICAN AUTO AUCTION ERIE
P.O. Box 317, 12141 Route 6 West Corry, PA 16407 814.664.7721 / Fax: 814.664.7724
Thursday 10:00 AM
3 Lanes Dealer Consign, Fleet/Lease corryade.com
BLOOMSBURG AUTO AUCTION
25 Ridge Road, Bloomsburg, PA 17815 570.784.2306
Wednesday 10:00 AM bloomaa.com
CAPITAL AUTO AUCTION
5135 Bleigh Ave., Philadelphia, PA 19136 215.332.2515
Monday thru Friday 9:00 AM - 4:30 PM capitalautoauction.com
CENTRAL PENNSYLVANIA AA
Exit 178 of I-80, Lock Haven, PA 17745 800.248.8026 / Fax: 570.726.7841
Thursday 9:45 AM
Office: MTF 8-5:30 W-Th 8-6:00 cpaautoauction.com
GARDEN SPOT AUTO AUCTION
Robert Rd. & Apple St., Ephrata, PA 17522 717.738.7900 / Fax: 717.738.7930
Tuesday 10:00 AM gardenspotautoauction.com
GREATER ERIE AUTO AUCTION
7700 Avonia Road, (Exit 16 of I-90 & PA Route 98) Fairview, PA 16415-0916 814.474.3900 / 877.474.GEAA Fax: 814.474.4969
Tuesday 1:45 PM greater-erie.com
LEHIGH VALLEY AUTO AUCTION
3880 Lehigh St., Whitehall, PA 18052 610.435.5554 / Fax: 610.435.5557
Wednesday 5:00 PM lehighvalleyautoauction.com
MANHEIM KEYSTONE
488 Firehouse Road, Grantville PA 17028 717.469.7900 / Fax: 717.469.2842
Every Monday 11:00 AM manheim.com
MANHEIM PENNSYLVANIA
1190 Lancaster Rd., Manheim, PA 17545 717.665.3571 / Fax: 717.665.9265
Exotic Highline Sales every other
Thursday - 9:00 AM
Every Friday Sale 8:30 AM manheim.com
MANHEIM PHILADELPHIA
2280 Bethlehem Pike, Hatfield, PA 19440 215.822.1935 / Fax: 215.822.8140
Tuesday 9:30 AM
TRA Sale - Tuesday 12:30 PM Office: M-Th 8:30-5:00; F 8:30-1:00 manheim.com
MANHEIM PITTSBURGH AA 21095 Route 19, Cranberry Twp., PA 16066 724.452.5555 / Fax: 724.452.1310
Wednesday 9:00 AM manheim.com
NORTH EAST PENNSYLVANIA AA
860 N. Keyser Ave., Scranton, PA 18504
570.207.CARS / Fax: 570.207.1860
Tuesday 10:00 AM nepautoauction.com
PERRYOPOLIS AUTO AUCTION
Route 51 S. Perryopolis, PA 15473 724.736.4445/ Fax: 724.736.0466
Friday 9:45 AM perryautoauction.com
MARYLAND
BSC AMERICA/BEL AIR AUTO AUCTION
P.O. Box 200, 4805 Philadelphia Rd. Belcamp, MD 21017
410.879.7950 / Fax: 410.893.1515
Thursday 8:30 AM at Clayton Station
Thursday 8:00 AM at Bel Air in Belcamp bscamerica.com
MANHEIM BALTIMORE-WASHINGTON 7120 Dorsey Run Rd., Elkridge, MD 21075 410.796.8899 / Fax: 410.799.0512
Tuesday Sale, 9:30 AM
Tuesday Frontline Sale, 9:00 AM
TRA/Salvage, 1:00 PM manheim.com
NEW YORK STATE LINE AUTO AUCTION 830 Talmadge Hill Rd. S. Waverly, NY 14892
607.565.8151 / Fax: 607.565.3915
Ally Financial Open Sale –EVERY FRIDAY, 9:20 AM
GM Financial Open Bi-weekly. Simulcast in all lanes. statelineauto.com
WEST VIRGINIA
MOUNTAIN STATE AUTO AUCTION Route 2, Box 835, Shinnston, WV 26431 304.592.5300 / Fax: 304.592.3510
Monday 10:30 AM
Office: 9:00-5:00 mtstateaa.com
PUBLIC AUCTIONS
CAPITAL AUTO AUCTION
5135 Bleigh Ave., Philadelphia, PA 19136 215.332.2515 / Fax: 215.332.2534 capitalautoauction.com
CAPITAL AUTO AUCTION
5001 Beech Rd, Temple Hills, MD 20748 301.316.4980 / Fax: 301.316.4982 capitalautoauction.com
16 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
NIADA applauds filing of REPAIR Act in House
The National Independent Automobile Dealers Association (NIADA) applauds Congressman Neal Dunn (R-FL-2), for reintroducing the REPAIR Act. The legislation would ensure consumers have access to data relating to their motor vehicles, critical repair information, tools, and provide them choices for the maintenance, service and repair of their motor vehicles.
This legislation was introduced with bipartisan support with Congressmen Brendan Boyle (D-PA-2), Warren Davidson (R-OH-8) and Marie Gluesenkamp Perez (D-WA-3), as original cosponsors.
“With 70 percent of auto repairs made at independent auto shops, not having access to critical data needed to make repairs puts independent auto dealers at a competitive disadvantage,” said Melanie Wilson, Interim CEO of NIADA. “The REPAIR Act is critical to ensuring that there is an even playing field between large dealerships and independent dealerships and consumers can chose where they can have their car, truck or SUV repaired. NIADA looks forward to working with Congress to moving this legislation forward.”
NIADA will continue to work with the offices of Dunn, Boyle, Davidson and Perez offices to educate their colleagues on the importance of this legislation. Read about the legislation at congress.gov/bill/118thcongress/house-bill/906/cosponsors. n
John Odorisio, Executive Director (717) 317-3098 | john@piada.org
Nicole Autry, Dealer Set-Up Unit (717) 317-1966 | nicole@piada.org
Cynthia Slemons, Membership Specialist (717) 238-9002 x16 | cynthia@piada.org
Barbara Stake, Online Registration (717) 238-9002 x27 | barb@piada.org
Jessica Barton, Title Call Center (717) 238-9002 | jessica@piada.org
Tammy Farmer, Receptionist (717) 238-9002 x10 receptionist@piada.org
Heather Levesque, Accounting (717) 238-9002 | heather@piada.org
Amanda Seiders, Office Manager (717) 238-9002 | amanda@piada.org
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 | 17
MID-ATLANTIC STAFF NIADA HIGHLIGHT C M Y CM MY CY CMY K MidAtlanticDealerNews-APR2023-NEW2-PRINT.pdf 1 3/7/23 2:13 PM Dealers AssociationIndependent Automobile MidAtlantic Regional Pennsylvania| Maryland|Delaware
GET TO KNOW YOUR
Digital Merchandising Tools for Car Dealerships
By Sean Toussi, Glo3D.com
Digital merchandising is the process of leveraging technology to promote and sell products/services online. For car dealerships, it means the use of digital tools and strategies to promote and sell their cars. This includes using digital marketing techniques such as search engine optimization, pay-per-click advertising, and social media marketing to drive traffic to the dealership’s website. It also involves creating engaging content such as videos, blog posts, and interactive tools to engage potential customers. Additionally, digital merchandising for car dealerships provides an opportunity to use data analytics to better understand customer preferences and target them with tailored offers. Here are some digital marketing tools that dealerships can use:
AUTOMATED INVENTORY MANAGEMENT SYSTEM
An Automated Inventory Management System for car dealerships helps streamline the process of tracking and managing vehicle inventory. It can provide real-time data on the number of vehicles in stock, their locations, and their condition, as well as information on the sales history of each vehicle, including the date of sale, the customer’s name, and the price. The system can also be used to track maintenance and repair records, as well as customer service records, and provide detailed information about each car, including its make, model, year, color, engine size, and more. This information helps dealers make informed decisions about pricing and inventory management, as well as reports on sales trends, customer preferences, and other data.
VDPS AND ONLINE SHOWROOM
Vehicle Display Pages (VDPs) are the most essential element of a digital dealership. To ensure customers are engaged with all the vehicles, dealers should use highquality images and videos. Incorporating 360 photos with embedded information
like hotspots can increase engagement by 30%, which cannot be done with 2D or low-quality images. It is also important to optimize the online showrooms for mobile since a majority of people use their smartphones and tablets to browse the web. Online showrooms for car dealerships enable customers to browse and purchase vehicles from the comfort of their own homes. Car buyers can search for vehicles based on their desired make, model, and year, as well as other criteria such as price, mileage, and features. Once a customer has found the vehicle they are interested in, they can view detailed 360 photos, video tours, and descriptions of the vehicle with the touch of a button. They can also request a test drive or schedule an appointment. Also, they can apply for financing, get a trade-in appraisal, and purchase accessories and parts. This takes the effort out of the car buying process and can result in more qualified leads for sales.
DIGITAL ADVERTISING
With the benefit of digital advertising, car dealerships can target potential customers through various digital channels such as search engine marketing, display advertising, social media, email marketing, and more. For example, Search Engine Optimization (SEO) enables car dealerships to appear higher in search engine rankings and makes them more visible to a larger audience, more qualified leads, and potential customers. By creating more
engaging content and building relationships with customers on social media, car dealers increase brand awareness, customer engagement, and provide an easy way to showcase their inventory. According to the Capgemini survey, 90% of consumers, who use social media for research when shopping for a new car, say it has had an influence on their final decision. This is especially true for Facebook, making it a great marketing channel for car dealerships to engage new customers and re-engage existing ones. Social media is thus having a direct impact on the car-buying process. Dealers using digital advertising, in general, will target customers who are actively searching for new cars, or who have expressed an interest in car-related topics. Besides, it allows them to create customized campaigns, and track the performance of campaigns in real-time, so they can make the right decisions about their ad spending and optimize their campaigns for better results.
AUTOMATED CUSTOMER RELATIONSHIP MANAGEMENT
Automated Customer Relationship Management (CRM) helps car dealerships boost sales by providing them with the tools to better understand their customers and their needs. It allows dealerships to track customer interactions, create targeted campaigns, and analyze customer data to better understand their buying habits. This is very useful to create more personalized and tailored experiences for their customers, which can lead to increased sales. Automated CRM also allows dealerships to stay organized and efficient by streamlining processes and automating tasks. Thus, dealerships save time and resources, and can focus on providing better customer service. n
If you have any questions or comments regarding this article, please email Sean@Glo3D.com, AI-based, Digital Merchandising. Virtual tour, Video Tour.
18 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
GET CERTIFIED. ©2023 Portfolio Holding, Inc. All rights reserved. MidAtlantic IADA is proud to announce a partnership with Portfolio and Superior Solutions that brings our members a custom CPO program specifically designed for the independent dealer. For details and eligibility, contact Superior Solutions at (814) 897-3478 or jax@superiorfisolutions.com. portfolioco.com superiorfisolutions.com
20 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023 Telephone: 215 -860-6510 Website: www.aatins.com Langhorne, Pennsylvania Auto Dealer/Garage Insurance Specialists Your One-Stop Shop for Auto Dealer Insurance * Garage and Automobile Liability * * Dealer Physical Damage * * Garagekeepers * * Work Comp * * Quick Quote Turnaround * WHY WAIT? You can get DEALER TITLES processed ON THE SPOT or within 24 hours! You can get SALVAGE TITLES processed ON THE SPOT or within 24 hours! You can get your RETAIL PAPERWORK processed ON THE SPOT or within 24-48 hours! At our offices! M-F: 9am-2pm 1501 North Front Street, Harrisburg, PA 717-238-9002
ALL LANES www.nepautoauction.com VIEW OUR PRE-SALE & POST SALE RESULTS ONLINE CONTRACT HOLDER FOR MORE INFORMATION, PLEASE CALL 1-888-282-2606 OR (570) 207-CARS 860 North Keyser Avenue, Scranton, Pennsylvania 18504 GSA Sale - TBA Leading the Industry #nepautoauction #winwin We list cars on Liquid Motors. Call for details. WE MOVE CARS 90% SOLD! GET RESULTS HERE! NO FEE UNTIL SOLD NO RISK Offering 500 Vehicles Per Week Volume sellers CALL NOW for your catered pricing We’re clearly different!
Take Advantage of the MARIADA SAFEGUARDS COMPLIANCE Course MAKE
THE DEADLINE: JUNE 9
Ensure your staff knows how to protect consumer information to comply with the FTC requirements, and avoid inadvertent exposure of your customer’s information, government enforcement actions, lawsuits, and bad press.
This course covers the requirements for the Safeguards Rule’s “qualified individual” and the Privacy Rule of the Gramm-Leach-Bliley Act. Information covered includes, but is not limited to, data breach response, data retention, and disposal, and use of nonpublic personal information. The following model policies are included within the course: Dealership Privacy Policies and Information Security Standards, Employee Agreement to Comply with Privacy Policies and Information Security, and Vendor Agreement to Maintain Confidentiality.
2023 ADVANCED ISSUING AGENT TRAINING COURSES
IN-PERSON COURSES
The in-person training courses will be provided by Pennsylvania Association of Notaries, a PennDOT approved instructor. All classes begin at 9:00AM. No refunds and may not be transferred to another class date.
Members: $125; Non-members: $150
Monday, April 24
Deadline to register: April 7
MANHEIM PITTSBURGH AA
21095 Route 19
Cranberry Twp., PA 16066
Thursday, June 15
Deadline to register: May 31
NORTHEAST PENNSYLVANIA AA
860 N. Keyser Ave. Scranton, PA 18504
Thursday, September 21
Deadline to register: September 6
MANHEIM PHILADELPHIA AA
2280 Bethlehem Pike Hatfield, PA 19440
Thursday, October 5
Deadline to register: September 20
GARDEN SPOT AA
Robert Rd. & Apple St. Ephrata, PA 17522
ONLINE COURSES
The online training courses will be provided by Pennsylvania Association of Notaries, a PennDOT approved instructor.
Members/Nonmembers: $169
ZOOM COURSES
The ZOOM training courses will be provided by Pennsylvania Association of Notaries, a PennDOT approved instructor. All classes begin at 9:30AM. Class size limited – registration closes ten business days prior to class date No refunds and may not be transferred to another class date.
Members: $99; Nonmembers: $129
Thursday, April 13
Deadline to register: March 29
Thursday, July 20
Deadline to register: July 5
22 | MIDATLANTIC
NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL
DEALER
2023
REGISTER ONLINE MARIADA.ORG
REGISTER AT MARIADA.ORG under the Education tab
Powered by the Dealer Education Portal
1-800-366-2141 | 88 Auction Road | Manheim, PA 17545 | www.dealergoodies.com car care essentials! We have ALL your Buckle-up... Spring has Sprung!
MARYLAND FORMS DEALERS CAN ORDER
PENNSYLVANIA FORMS DEALERS CAN ORDER
Over
ADP FORMS
Please make checks payable to PIADA, 1501 North Front St., Harrisburg, PA 17102 (call in to receive shipping cost to include in payment) or you may fax orders to 717.238.3870 with credit card information. *All orders MUST be accompanied by a method of payment. *Must provide DIN if applicable.
24 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • APRIL 2023
DESCRIPTION QUANTITY $MEMBER $NON-MEMBER MEMBER EXT NON-M EXT “As is” Supplemental Statement ____ $24.00 $48.00 $ _______ $ _______ Buyers Guide Plastic Holders (50) ____ $40.00 $80.00 $ _______ $ _______ Buyers Guide Window Form $20.00 $40.00 $ $ Buyers Guide Window Form (Spanish) $18.00 $36.00 $ $ Consignment & Sales Agreement Form ____ $25.00 $50.00 $ _______ $ _______ Deal Jackets $30.00 $60.00 $ $ Fees Chart (wall mount) $14.00 $28.00 $ $ Fraud Hotline Poster $14.00 $28.00 $ $ Installment Sales Contract (100) ____ $150.00 $300.00 $ _______ $ _______ Interpreter Confirmation of Translation $25.00 $50.00 $ $ Key Tags (250) $32.00 $64.00 $ $ Lease Agreements $78.00 $156.00 $ _______ $ _______ Limited Warranty $26.00 $52.00 $ _______ $ _______ No Purchase Required Disclosure $24.00 $48.00 $ $ Notary Receipt Pad $15.00 $30.00 $ $ Odometer Mileage Statement ____ $18.00 $36.00 $ _______ $ _______ Power of Attorney Disclosure Forms $18.00 $36.00 $ $ Rental Agreements $32.00 $64.00 $ $ Retail Buyer Order Form ____ $32.00 $64.00 $ _______ $ _______ Secure Power of Attorney ____ $50 00 $50 00 $ _______ $ _______ Secure Power of Attorney Log Book $15.00 $30.00 $ $ Temp Tag Log Book $15.00 $30.00 $ $ Title Release Authorization ____ $15.00 $30.00 $ _______ $ _______ Used Vehicle Record ____ $15.00 $30.00 $ _______ $ _______
Customer Delivery Check List $28.00 $56.00 $ $ Customer Proposal $28.00 $56.00 $ $ Damage Disclosure ____ $28.00 $56.00 $ _______ $ _______ Delivery Confirmation $28.00 $56.00 $ $ Goodwill Repair Acknowledgement $28.00 $56.00 $ $ Insurance Coverage Acknowledgement ____ $28.00 $56.00 $ _______ $ _______ Lease Spot Delivery Agreement $28.00 $56.00 $ $ Notice to Co-Signer $28.00 $56.00 $ $ Trade-In Appraisal $28.00 $56.00 $ _______ $ _______ Subtotal $ $ 6% Pennsylvania Sales Tax $ $ Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________
Dealership Contact_______________________________________________Date Address City_______________________________________________State ______Zip Phone _____________________Fax ____________________*DIN Card Type: VISA MasterCard AMEX Name on Card Exp. Date________ Card Number _____________________________________ Security Code________ All forms come in packs of 100 unless otherwise noted. SECURE FORMS QUANTITY PRICE TOTAL $ DUE Secure Power of Attorney (3 part-50 per package) $20.00* $ ________ Secure Dealer Reassignment (1 part-100 per package) $20.00 $ Total Secure forms order $ 6% Mar yland Sales Tax Shipping TOTAL enclosed for Secure forms $ ________ NON-SECURE FORMS QUANTITY $MEMBER NON-$MEMBER TOTAL $ DUE Cash Sales Contracts (100 per pack) $47.00 $94.00 $ ________ Odometer Mileage Statement (100 per pack) $18.00 $36.00 $ FTC Buyers Guide (100 per pack) $28.00 $56.00 $ Check one: AS IS IMPLIED Restricted Power of Attorney (100 per pack) $10.00 $20.00 $ ________ Deal Jackets (100 per pack) $24.00 $48.00 $ ________ Test Drive Agreements (100 per pack) $28.00 $56.00 $ ________ Total Non-Secure forms order $ 6% Mar yland Sales Tax TOTAL enclosed for Non-Secure forms $ TOTAL AMOUNT DUE $ _________ Dealership Dealer # (required) Member Yes No Contact Name Email Address (FEDEX & UPS WILL NOT DELIVER TO P.O. BOX) City_______________________________________________State ______Zip Phone ______________________________Fax Card Type: VISA MasterCard AMEX Name on Card Exp. Date________ Card Number _____________________________________ Security Code________ Make checks payable to: PIADA or fill out payment information below: Card Type: VISA MasterCard AMEX Discover Name on Card Exp. Date________ Card Number _____________________________________ Security Code________ We cannot process orders until payment is received. Signature ____________________________________________ Date
questions you may contact Cynthia Slemons at 717.238.9002 ext. 16 or Cynthia@piada.org . MIDATLANTIC IADA = PIADA + MDIADA + DEIADA
Shannon at 717.238.9002 x 18 Shannon@piada.org www.piada.org • www.mdiada.org • www.deiada.org FOR INFORMATION ON MEMBERSHIP... Pennsy lvania| Maryland|Delaware Dealers Association MidAtlantic Regional Independent Automobile JOIN TODAY! Shipping Cost:
– 4 packs = $10.00
– 10 packs = $15.00
For
Contact
1
5
10 packs – Please call ahead for pricing.
The Auto Auction You Need!
America’s Auto Auction Lancaster
Recon & Body Shop
Provided on site by Spangler’s. Services available include Sale day wash, Silver Detail, Gold Detail, Diamond Detail and a Body Shop on-site. Contact Inside Sales Dept for more information.
Financing Available
Provided on site by Axle funding. They have custom programs with credit lines to fit your unique dealership needs! Contact them for more information 717-467-7990.
Pre & Post Sale Inspection
Provided by our Experienced Condition Report Writer Team. Pre-sale Inspection and PSI are $150 and it provides a 10 calendar day guarantee. Pre-sale Inspection can be scheduled with the inside Sales Dept. PSI can be requested when you buy a unit.
Make America’s Auto Auction Lancaster your Wednesday Auction.
• Friendly Experienced Staff
• Live lanes with units driving through
• Sales Reps available if you are unable to attend
• No Registration or Title Attached fees
ABOUT OUR AUCTION
America’s Auto Auction Lancaster opened in 2012 and is part of the XLerate Group. One of 39 auctions across 18 states from the
premier providers of vehicle auctions.
America’s Auto Auction Lancaster 1040 Commercial Avenue, East Petersburg, PA 17520 | P:717.569.5220 www.americasautoauction.com/lancaster | www.edgepipeline.com 11 Years of Service 7 Action Packed Lanes 800 - 1000 Units Per Week!
WHY CHOOSE US?
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