Mid-Atlantic Dealer News - January 2023

MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION

PENNSYLVANIA • MARYLAND • DELAWARE 1501 North Front St., Harrisburg, PA 17102 (717) 238-9002

midatlanticautodealersunited.org Copyright 2023

Chris Smiley - Advisor Mountville Motor Sales, Columbia, PA rcsmiley@comcast.net

Noah Melamed- President Ticket to Ride Auto, Lancaster, PA nmelamed@yourttr.com

Bert Straub, President - Elect 1st Choice Auto LLC, Fairview, PA bertcstraub@gmail.com

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

Jay Zimmerman

• jay@zimmermansauto.com

Zimmerman’s Auto Sales, Mechanicsburg, PA

Email heather@piada.org

4 | Preview of the Legislative Session of the PA General Assembly

The 206th Session of the Pennsylvania General Assembly concluded on November 30, 2022. All bills that did not become law cease to exist and must be reintroduced in the 207th Legislative Session, which begins on Tuesday, January 3, 2023.

6 |

Keep the Spark with Curb Appeal

When inventory levels improve, the dealerships that lost the spark of what makes buying a car exciting are going to suffer.

10 | How is digitalization revolutionizing the automotive industry?

With the introduction of new technologies, the auto industry is being forced to change the way it operates.

15 | Remember Your Business Plan?

If it’s been years since you looked at your business plan, or maybe you never actually got around to writing one, you may want to consider it.

16 | Used-Car Photos: Documenting Imperfection as a Best Practice

Showing blemishes most likely will lower the vehicle’s value, but the tradeoff is that the dealer gains customers’ trust as they make their buying decision.

17 | Cybercrime in Automotive: What You Need to Know

Consider your dealership, the legacy that has either been passed down for generations or that you plan to one day pass down yourself. One cyberattack could change all of that. Protect your dealership, protect your legacy, before it’s too late.

in a Changing Industry The

MIDATLANTIC REGIONAL IADA

MANAGER, 1ST CHOICE AUTO, LLC FAIRVIEW, PA

Happy new year, members!

Here we are, another 30-day war. How do you plan to move forward? Some want bigger, faster, and stronger, and some are happy with what they have, while others

are contemplating why we even do this. To all of you, thank you for fighting the good fight. Thank you for being a part of this association.

So, what is your plan? Do you have a plan? Why do you need a plan? Having a strategy to move forward is one of the topics I talk about with fellow dealers at the auction and in chat forums. Everyone has opinions on the right way to do things, from banks to GPS units; this business is diverse. I have had the privilege of traveling the country and speaking on behalf of used car dealers regarding some ways we do business. If you have a process that you believe in, we would love to hear about it. We can all help each other.

Best wishes in the coming year!

Bert

GET TO KNOW YOUR MID-ATLANTIC STAFF

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

Pamela Switalski

Dealer Titles (717) 238-9002 ext. 15 pamela@piada.org

Barbara Stake

Online Registration (717) 238-9002 x27 barb@piada.org

Jessica Lutz Title Call Center (717) 238-9002 jessica@piada.org

Tammy Farmer Receptionist (717) 238-9002 ext. 10 receptionist@piada.org

Heather Levesque Accounting (717) 238-9002 heather@piada.org

ODORISIO EXECUTIVE DIRECTOR

MIDATLANTIC REGIONAL IADA

MidAtlantic Members,

I hope you had a nice holiday season. 2023 will be an exciting year for the MidAtlantic IADA and its members. Some of things we have been working on for this year include the return of the annual in-person convention (stay tuned for details) and a possible CPO program for all members.

This month you will be receiving via email a brief survey about how we are doing servicing you and what we can do better. I ask you take a few minutes and give us your feedback.

Thank you very much for your loyalty. I wish each of you a happy and prosperous new year!

BERT STRAUB, PRESIDENT

JOHN

Preview of the 207th Legislative Session of the Pennsylvania General Assembly

Tyler Burke, Associate, Milliron & Goodman Government Relations

The 206th Session of the Pennsylvania General Assembly concluded on November 30, 2022. All bills that did not become law cease to exist and must be reintroduced in the 207th Legislative Session, which begins on Tuesday, January 3, 2023.

After an exciting election season, the following is a breakdown of what you can expect as we begin the next legislative session.

Attorney General Josh Shapiro won the race for Pennsylvania Governor against sitting state Senator Doug Mastriano. Governor-elect Shapiro will be joined by state Representative Austin Davis who will be taking the position of Pennsylvania’s Lieutenant Governor. Shapiro and Davis will both be sworn in on January 17, 2023.

In the state House and state Senate, there will be at least fifty-four new state legislators in the 207th Legislative Session of the General Assembly. The new members of the General Assembly will be sworn in on January 3, 2023.

Of those fifty-four new state legislators:

• Six are new state Senators (5 Republican and 1 Democrat)

• Forty-eight are new state Representatives (23 Republican and 25 Democrat)

The breakdown of the 50-member state Senate will be 27 Republican, 22 Democrat with 1 open seat. The open seat is a result of Senator John Gordner’s retirement. The special election to fill Senator Gordner’s district is scheduled for January 31, 2023.

The breakdown of the 203-member state House will be 99 Democrat to 101 Republican with 3 open seats due to the death of Rep. Tony DeLuca (D-Allegheny) and the resignations of Rep. Summer Lee (D-Allegheny) who was elected to Congress and Rep. Austin Davis (D-Allegheny) who was elected Lieutenant Governor. In a controversial move, House Democratic Leader Joanna McClinton (D-Philadelphia) was sworn-in on December 7, 2022 and designated herself the presiding officer of

The state House’s first orders of business on January 3, 2023, will be swearing-in the Representatives and then electing a Speaker of the House. There could be a scenario where the Republicans control the state House until the special elections are held and the votes certified creating a 102-vote majority for one party or the other.

To further complicate things, state Rep. Lynda Culver (R-Northumberland) is running for the open state Senate seat

the House. She then scheduled all three special elections for February 7, 2023.

This creates a unique situation where upon swearing-in day on January 3, 2023, the makeup of the state House will be 99 Democrat to 101 Republican with 3 open seats to be decided by special elections. With the Republicans having a clear majority, perhaps only temporarily, it is uncertain what will transpire on January 3rd and who assumes majority control of the state House.

recently vacated by Senator John Gordner so if she were to win, that would result in another state House seat being vacated.

Regardless of how this shakes out, we will also see at least 26 new committee chairs including both the state House & state Senate Republican Appropriations chairs. In November, all four legislative caucuses met behind closed doors and elected their respective leadership teams, including chairs of the Appropriations Committees, as follows:

2023-2024 SENATE LEADERSHIP ELECTION RESULTS

Senate Republican Leadership: Interim President Pro Tempore: Kim Ward (R-Westmoreland)

Leader: Joe Pittman (R-Indiana)

Whip: Ryan Aument (R-Lancaster)

Appropriations Chair: Scott Martin (R-Lancaster)

Caucus Chair: Kristin Phillips-Hill (R-York)

Caucus Secretary: Camera Bartolotta (RWashington)

Policy Chair: Dan Laughlin (R-Erie)

Caucus Administrator: Lisa Baker (R-Luzerne)

Senate Democratic Leadership: Leader: Jay Costa (D-Allegheny)

Whip: Tina Tartaglione (D-Philadelphia)

Appropriations Chair: Vincent Hughes (D-Philadelphia)

Appropriations Vice Chair: Tim Kearney (D-Delaware)

Caucus Chair: Wayne Fontana (D-Allegheny)

Caucus Secretary: Maria Collett (D-Montgomery)

Caucus Administrator: Judy Schwank (D-Berks)

Policy Chair: Katie Muth (D-Montgomery)

2023-2024

HOUSE LEADERSHIP ELECTION RESULTS

House Republican Leadership: Leader: Bryan Cutler (R-Lancaster)

Appropriations Chairman: Seth Grove (R-York)

Whip: Tim O’Neal (R-Washington)

Caucus Chair: George Dunbar (R-Westmoreland)

Caucus Secretary: Martina White (R-Philadelphia)

Caucus Administrator: Sheryl Delozier (R-Cumberland)

Policy Chair: Josh Kail (R-Beaver)

House Democratic Leadership: Leader: Joanna McClinton (D-Philadelphia)

Appropriations Chairman: Matt Bradford (D-Montgomery)

Whip: Jordan Harris (D-Philadelphia)

Caucus Chair: Dan Miller (D-Allegheny)

Caucus Secretary: Tina Davis (D-Bucks)

Policy Chair: Ryan Bizzarro (D-Erie)

Caucus Administrator: Mike Schlossberg (D-Lehigh)

However, we anticipate that Rep. Joanna McClinton (D-Philadelphia) to be elected Speaker of the House, if or when, the Democrats reach a 102-vote majority after the special elections are held and the votes certified.

SESSION SCHEDULE

With control of the state House still up in the air, only the state Senate has announced its session schedule for January through June of 2023:

January 3, 9, 10, 11, 17, 18, 23, 24, 25, 30 & 31

February 1, 27 & 28

March 1, 6, 7 (Budget Address) & 8

Budget Hearings:

March 20, 21, 22, 23, 27, 28, 29 & 30 April 11, 12 & 13

April 24, 25 & 26

May 1, 2, 3, 8, 9 & 10

June 5, 6, 7, 19, 20, 21, 22, 23 26, 27, 28, 29 & 30

Milliron & Goodman will be sure to keep you updated as the picture in the state House becomes clearer and on legislation of interest as it is introduced in the new legislative session. n

Keep the Spark with Curb Appeal

BY HARRY SISKIND, DIRECTOR OF MARKETING FOR AUTOSPIN USA

It is no secret that acquiring inventory has a been a problem for dealers across the country over the last couple of years. Dealership lots where a sea of new vehicles used to reside are now mostly empty and home to a scattering of preowned cars and trucks. Some dealers strategically park their service vehicles to hide the fact that the lot is mostly empty. Who are they fooling? Mismatched dirty vehicles poorly parked are not doing the trick.

Car shoppers are aware of the inventory issues facing dealers but are still skeptical about the price increases and wait times for new vehicles. New stresses have entered the car-buying process. The fun car-buying environment that dealerships are so good at producing is suffering right now. How can dealerships spice up the experience for car shoppers at the dealership?

It starts with curb appeal. When people drive by your store does it look depressing? Can they be sure that you are still in business? Are there more weeds than units available for sale on your lot? Take a look

at your store and think back to the days of 20,000 pieces of direct mail, balloons across the front line and free hotdogs on a hot Saturday afternoon. Is the spark gone? Bring it back. Pull the weeds, line up the vehicles you do have across the front. Space the lines and the vehicles in them more to make the lot look fuller.

Also, do you have a strong attentiongrabbing centerpiece, something that people can see from down the street as the approach? This can take several forms. If you have ramps to display vehicles, get them out front. There are ramps that will raise and spin vehicles 25 feet in the air. How about a giant lit up spinning billboard letting people know that you are open for business and have vehicles to sell?

Inventory levels are inching back up and before you know it dealers will have more cars than customers again. The dealerships that lost the spark of what makes buying a car exciting are going to suffer. There are many salespeople who have only sold cars in this environment of scarcity. They are going to be in big trouble when the time comes to chase customers again.

The dealerships that have kept it fun and exciting are poised to win into the future. It is important that every day in your dealership is a day you are having a huge sale. If your salespeople don’t know it, neither will your customers. Creating this environment starts with you. Start with curb appeal so car shoppers know that you are ready to help them, and your sales team is proud to work in your store. Put up balloons, get a ramp to spin cars in the air, get a DJ on Saturdays … do what you must to keep the spark in

The CARLAWYER©

By Eric Johnson, Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®

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, the Consumer Financial Protection Bureau and the Federal Communications Commission. 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 November 8, the Federal Trade Commission issued an advance notice of proposed rulemaking seeking comment on deceptive and unfair uses of reviews and endorsements. The FTC does not propose to cover every issue in its Guides Concerning the Use of Endorsements and Testimonials in Advertising, but it proposes to address the following practices: (1) reviews or endorsements by people who do not exist, who did not actually use or test the product or service, or who are misrepresenting their experience with it; (2) review hijacking, where a seller steals or repurposes reviews of another product; (3) marketers offering compensation or other incentives in exchange for, or conditioned on, the writing of positive or negative consumer reviews; (4) owners, officers, or managers of a company: (a) writing reviews or testimonials of their own products or services, or publishing testimonials by their employees or family members, that fail to provide clear and conspicuous disclosures

of those relationships, or (b) soliciting reviews from employees or relatives without instructing them to disclose their relationships; (5) the creation or operation of websites, organizations, or entities that purportedly provide independent reviews or opinions of products or services but are, in fact, created and controlled by the companies offering the products or services; (6) misrepresenting that the consumer reviews displayed represent most or all of the reviews submitted when, in fact, reviews are being suppressed based upon their negativity; (7) the suppression of customer reviews by physical threat or unjustified legal threat; and (8) selling, distributing, or buying followers, subscribers, views, and other indicators of social media influence. Comments on the ANPR are due by January 9, 2023.

On November 8, the Federal Trade Commission issued an advanced notice of proposed rulemaking exploring a rule to crack down on “junk fees” that it claims are mushrooming throughout the country. The FTC’s advance notice of proposed rulemaking is soliciting written comment, data, and argument regarding the need for a rulemaking to prevent persons, entities, and organizations from imposing junk fees on consumers. The ANPR also solicits public comment on 21 specific questions. The FTC defines “junk fees” as unfair or deceptive fees that are charged for goods or services that have little or no added value to the consumer, including goods or services that consumers would reasonably assume to be included within the overall advertised price. The FTC stated the term also encompasses ‘‘hidden fees,’’ which are fees for goods or services that are deceptive or unfair, including because they are disclosed only at a later stage in the consumer’s purchasing process or not at all, whether or not the fees are described as corresponding to goods or services that have independent value to the consumer. The FTC believes that a junk fee can be a hidden fee, but not all junk fees are hidden fees. Finally, the FTC thinks that

these junk fees are bundled as “ancillary products” in connection with loans and auto financing that end up on the final bill without the consumer’s awareness or express and informed consent. Comments on the ANPR are due by January 9, 2023.

On November 10, the Consumer Financial Protection Bureau issued a circular concerning consumer reporting agencies’ and furnishers’ obligations under the Fair Credit Reporting Act to investigate consumer disputes of credit report information. The circular addresses two questions: (1) Are consumer reporting agencies and the entities that furnish information to them permitted under the FCRA to impose obstacles that deter submission of disputes? (2) Do consumer reporting agencies need to forward to furnishers consumer-provided documents attached to a dispute? The Bureau answered “no” to the first question, stating that “[c] onsumer reporting agencies and furnishers are liable under the FCRA if they fail to investigate any dispute that meets the statutory and regulatory requirements, as described in more detail [in the circular]. Enforcers may bring claims if consumer reporting agencies and furnishers limit consumers’ dispute rights by requiring any specific format or requiring any specific attachment such as a copy of a police report or consumer report beyond what the statute and regulations permit.” The Bureau answered “[i]t depends” to the second question, stating that “[e]nforcers may bring a claim if a consumer reporting agency fails to promptly provide to the furnisher ‘all relevant information’ regarding the dispute that the consumer reporting agency receives from the consumer. While there is not an affirmative requirement to specifically provide original copies of documentation submitted by consumers, it would be difficult for a consumer reporting agency to prove [it] provided all relevant information if [it] fail[s] to forward even an electronic image of documents that constitute a primary source of evidence.”

On November 15, the Federal Trade Commission announced a 6-month extension of the deadline for compliance with revised provisions of its Safeguards Rule until June 9, 2023.

On November 16, the Consumer Financial Protection Bureau issued its Fall 2022 issue of Supervisory Highlights, which summarizes violations of federal consumer financial protection laws identified by the Bureau during its supervisory examinations completed between January and June 2022. The report highlights, among other things, alleged violations of the Fair Credit Reporting Act by consumer reporting agencies and furnishers for failing to promptly address and update inaccurate information on credit reports. It also highlights alleged unfair and deceptive acts or practices by servicers of vehicle financing contracts, including failing to provide refunds for unearned fees related to add-on products, loan modifications, double billing consumers for collateral protection insurance, use of electronic devices that interfere with driving, and debt collection practices. The Bureau also notes in the report that it is increasing its focus on repeat offenders, particularly those who violate agency or court orders, by creating a Repeat Offender Unit. The Repeat Offender Unit is focused on reviewing and monitoring the activities of repeat offenders, identifying the root cause of recurring violations, pursuing and recommending solutions and remedies that hold entities accountable for failing to consistently comply with federal consumer financial protection laws, and designing a model for order review and monitoring that reduces the occurrences of repeat offenders.

On November 17, noting that public data on the auto loan market is relatively sparse in comparison to data on mortgages, credit cards, and student loans, the Consumer Financial Protection Bureau released a blog post announcing “an effort to work with industry and other agencies to develop a new data set to better monitor the auto loan market.” The Bureau will be accepting public comment on the initiative until December 19, 2022.

On November 21, the Federal Communications Commission issued a Declaratory Ruling and Order finding that the Telephone Consumer Protection Act regulates “direct drop” or “ringless” voicemails as telephone calls. The petitioner argued that, as a technical matter, ringless voicemails are not telephone calls: the sender does not dial the recipient’s phone number, and the recipient’s phone does not ring. Rather, the recipient simply gets a notification of a new voicemail. The FCC concluded that the arguments for regulating ringless voicemails as telephone calls overwhelmed the petitioner’s technical argument. The FCC emphasized the point that, from the consumer’s perspective, there isn’t much difference between ringless voicemails and other telephone calls: in all cases, unwanted contacts invade consumers’ privacy. The FCC also noted that the public comments in this proceeding clearly articulated the point that consumers are just as bothered by this type of contact as by any other on their phones. Because case law has also taken this position, companies have likely already been reluctant to treat ringless voicemails as outside the scope of the TCPA. With the FCC’s Declaratory Ruling and Order, companies should now apply their TCPA policies and procedures to this technology, if they haven’t already. This means, among other things, applying the TCPA’s consent and content requirements applicable to prerecorded messages as well as the TCPA’s do-not-call and telemarketing standards, when the ringless voicemail is used for marketing.

CASE(S) OF THE MONTH Dealership Was Entitled to Summary Judgment on Individual’s Telephone Consumer Protection Act Claims Arising Out of Prerecorded Ringless Voicemails to Her Phone Where Dealership Had Prior Express Written Consent to Call Her: An individual called a dealership to inquire about buying a vehicle. That same day, she made an inquiry about buying a vehicle on a website that provided information to the dealership. While online, she provided personal information, including her phone number. She also clicked a box next to the language “I agree to Terms of Service, Privacy Policy, and Privacy Notice.” This language

hyperlinked to, among other things, privacy and marketing agreements. Later, on three separate occasions, the individual received prerecorded telemarketing voicemails from the dealership. She filed a putative class action against the dealership under the Telephone Consumer Protection Act. The dealership moved for summary judgment, arguing that prerecorded ringless voicemails are not “calls” under the TCPA, the intangible harms that the individual alleged are not concrete injuries sufficient to support Article III standing, and, even if ringless voicemails are calls and the individual has standing, she provided prior express written consent to be contacted.

The U.S. District Court for the Eastern District of North Carolina granted the dealership’s motion. First, the court concluded that ringless voicemails are “calls” under the TCPA. Second, the court concluded that the individual had standing to assert her TCPA claim. The court found that receiving a ringless voicemail supports standing under Article III for a TCPA claim if there is a connection to a traditional common law injury. The individual sufficiently alleged a concrete injury by alleging that the ringless voicemails caused “invasion of privacy, aggravation, annoyance, intrusion upon seclusion, trespass, and conversion,” all traditional common law injuries. She also alleged that she had to “stop what she was doing and listen to the pre-recorded messages” and that the dealership’s “calls occupied [her] telephone lines and rendered the devices unavailable for the receipt of other calls.” Third, despite finding that ringless voicemails are calls under the TCPA and that the individual had standing under the Act, the court concluded that she provided prior express written consent to be contacted at the phone number she provided online. Therefore, the individual’s TCPA claim failed. She clicked on the “I agree to Terms of Service, Privacy Policy, and Privacy Notice” box. The words “Terms of Service,” “Privacy Policy,” and “Privacy Notice” appeared in a light red color to indicate hyperlinking, and the other words in the statement appeared in black. Before anyone could proceed to the next page, the person

How is digitalization REVOLUTIONIZING the automotive industry?

BY SEAN TOUSSI, GLO3D.COM

Digital technologies have drastically improved in recent years and have transitioned from being used by experts to being part of everyday life. Similar to the effect of electricity on communities, the advent of digitalization also has impacted everything profoundly. However, the speed of this change is different in an established company compared to a startup. All industries are now influenced by digital transformation, and the automotive industry is no exception.

With the introduction of new technologies, the auto industry is being forced to change the way it operates. In the past, it has been largely reliant on analog processes and technologies, but now we witness emerging changes, including but not limited to, autonomous driving, ride-sharing, connected supply chain, digitalized car buying process, predictive maintenance, and even remote diagnostics that open a new window of opportunity for businesses to develop innovative services.

DIGITALIZED PURCHASING PROCESS

Two major disruptions in recent years have somewhat changed the traditional

car-buying experience: the emergence of the mobile-first generation, and the pandemic. These disruptions, along with the arrival of new technologies like AR/VR and 360-degree views, have made digital car buying possible and accelerated digital transformation. Technology changed the game and the car buying experience is much different now.

With the internet, customers can do extensive research on their own and come into the dealership armed with information. AI-powered applications like 360 Car Photography Apps or Car Virtual Tour Builders help customers find out everything about a car with a click of a button. With advances in image processing, physical turntables and actual showrooms are getting replaced by digital marketplaces using a virtual turntable that showcases a great deal of information from every angle of the car. It allows consumers to explore their car of interest in a realistic way, seeing what it looks like inside and out and getting the most pertinent technical information.

These digital marketplaces, with the help of machine learning, assist customers

in price comparison and evaluation. These advantages increase the level of transparency, establishing trust between customers and car dealerships. This has led to a more relaxed and enjoyable carbuying experience. Dealerships will also benefit from these emerging technologies. A virtual tour builder gives dealers a chance to draw customers’ attention in a few minutes and get more qualified leads with serious buying decisions. It is a time-saving and cost-effective digital transformation in their business process.

THE NECESSITY OF ONLINE PRESENCE

Auto dealerships still play a vital role in the market to such an extent that search volume for key phrases like “car dealership” doubled a few years ago. But according to Google, the number of times that customers visit a dealership before buying a car decreased dramatically. It means that people have made their visits more purposeful and determined. It is good news for a dealer, as well, to reduce the number of “maybe sales”! Google also reveals that over one-third of all car buyers start with an online search and about 70% of users are heavily influenced by interactive options like engaging 360 car

photos and virtual tour videos on YouTube compared to traditional advertising tools like newspapers, magazines, and other print content. The most interactive videos include highlights of features and options, as well as walkthroughs of the interiors and exteriors.

In response to these new demands, auto dealers need to provide their clients with a fantastic online experience. Websites and social media platforms should be optimized for every device - smartphones in particular - since 1 in 3 customers use their mobile device while searching for cars. Such an online presence allows dealers to have more touchpoints and increase the possibility of closing a deal effectively.

CONNECTED CARS

In today’s digital age and mobile-first generation, customers are expecting similar seamless experiences everywhere. The same expectations are there for newer vehicles in the market. These expectations include everything from high-quality infotainment systems for passengers to assisted driving and parking with payment from the dashboard. Thanks to connectivity capabilities like Bluetooth and Wi-Fi, people can now watch movies, use Google Maps, and listen to music with Bluetooth connectivity. Smart vehicles detect drivers’ sleepiness using Galvanic skin-response sensors and can warn the driver of any harmful accidents. Also, radar, cameras, and laser scanners outside the car “read” the road and then respond. All the above features and more come preloaded or customized based on the demands of the consumer.

PREDICTIVE MAINTENANCE

In order to address these changes, automakers provide new services to their

customers like self-diagnostic systems. We can now become aware of the issue before it’s a problem. Data cloud connectivity will keep customers and car makers in contact. Vehicle servicing has become digitized, requiring not just mechanical attention and repair, but also a tech-savvy technician to maintain and update software. This integration never forces customers to leave their garages for routine car maintenance. General Motors, for instance, uses this

The CARLAWYER©

Continued from page 10 had to check the box. The court found that the individual had checked the box. The hyperlinked agreements contained provisions notifying her that her information could be used “for our marketing purposes” and “for our affiliates to market to you.” The court noted that the Fourth Circuit has not addressed the issue of consent in the context of online disclosures like the ones in this case. However, the court relied on other decisions to find that when links to disclosures such as terms of service or privacy agreements are clearly shown and not hidden at the bottom of the page or in fine print, those prominent links satisfy disclosure requirements.

See Beard v. John Hiester Chevrolet, LLC, 2022 U.S. Dist. LEXIS 204379 (E.D.N.C. November 9, 2022)

COMPLIANCE TIP

Our Case of the Month highlights the Federal Development above that the Telephone Consumer Protection Act regulates “direct drop” or “ringless” voicemails as telephone calls under the TCPA. It also addresses the importance of ensuring that if you have a telemarketing campaign that you get the consumer’s prior express written consent

technology to send monthly checks of the engine, transmission, anti-lock brakes, and other systems to the vehicle’s owner, reminding them when maintenance is due via email. n

to be contacted at the phone number they provide to your dealership. The dealer in this case had the consumer agree to certain terms of service, a privacy policy and privacy notice which included provisions that her information could be used for marketing purposes. The agreements were also clearly shown and not hidden at the bottom of a webpage or in the fine print. If you have a telemarketing campaign, what prior written approvals from your customers are you capturing? How are you displaying the disclosures or agreement to the customers? You’ll want to talk to a knowledgeable attorney about these issues.

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 2022, all rights reserved. Single publication rights only to the Association. HC# 4891-1017-2480.

PENNSYLVANIA

PITTSBURGH

21095 Route 19

Cranberry Twp., PA 16066

717-469-2842 Services

724-452-5555 | Fax 724-452-1310

Tom McDonald, GM

Shawn Byers, AGM

Zak Hanna, Senior Manager Client Service

Justin LaScola, Manager Client Service Dealer

Wednesdays, 9 AM

TRA Sale Wednesday, 11:30 AM

717-665-7521

PHILADELPHIA

2280 Bethlehem Pike Hatfield, PA 19440

215-822-1935 | Fax 215-822-8140

Charles Polina, GM

Scott Mulligan, AGM

Gregg Pachik, Dealer Services Manager

Troy Moyer, Commercial Accounts Manager

Tuesdays, 9:30 AM

Manager Services other stating at 9 AM

TRA Sale, Tuesday 12 PM

BALTIMORE-WASHINGTON

7120 Dorsey Run Road Elkridge, MD 21075

410-796-8899 | Fax 410-799-0512

Chad Spearman, GM Audrey England, AGM

Steve Soprano, Dealer Sales Manager

Tuesdays, 9:30 AM

By NIADA Dashboard

Used car financing gained in its market share in the third quarter of 2022, growing to 61.68 percent.

“It shouldn’t come as a surprise to see that the independent dealer volume dipped slightly in the latest data,” said NIADA

by quality vehicles, a robust Certified PreOwned program that provides value and confidence to the consumer, and payments they can afford.” -Jeremy

Beck, NIADA Vice President

Rates, prices continue to rise in third quarter

For independent dealers, 37.97 percent of loans were by BHPH dealers, with 24.76 percent of financing being provided by fi nance companies, 21.53 percent by credit unions and 15.43 percent from banks.

The used car loan amounts continued to grow, jumping 9.34 percent from last year to $28,506. For the third quarter of 2021, the average finance amount was $26,251 and $21,629 for the same time period in 2020.

The figure was up from 59.66 percent for the same quarter of 2021, according to Experian’s State of the Automotive Finance Market report Thursday.

Opportunity open for independent dealers

The report showed a slight decrease in the sales for independent dealers to 47.46 per cent from 47.67 percent in 2021.

Vice President Jeremy Beck. “Our dealers have been fighting diligently in the lanes, online and in marketing to get inventory against deeper pockets of the franchise dealers. What’s encouraging is that overall used loans continue to increase as percentage of market share.

“As inventory levels come back online and interest rates continue to rise, it’s a great time to be an independent dealer. Consumers will be driven to our dealer lots

The average monthly payment topped $525 — an increase of $53 from 2021. The av erage loan rate was 9.34 percent, up from 8.12 percent in the third quarter of 2021. The average loan term also grew from 66.97 months to 68.08.

The numbers were down from the first and second quarters of 2022. The average loan amount decreased by $104 or 0.37 percent from last quarter. n

Remember Your Business Plan?

By Todd Shepard, Founder of Shepard & Shepard Insurance Solutions

If it’s been years since you looked at your business plan, or maybe you never actually got around to writing one, you may want to consider it. I mean right now. The past three years have introduced unprecedented challenges to small business owners. These challenges demand serious attention be given to this area of your business.

A solid and realistic Business Plan is the basis of a successful business. Properly written, your plan outlines your goals, how you can meet these goals, and possible problems and solutions along the way. It also includes a marketing strategy. It is basically a roadmap to success. The Bureau of Labor Statistics notes that a failure to create and follow a business plan is one of the top reasons for business failure. Even if your dealership has weathered the storms over the years without a plan, you may be leaving money on the table if you neglect to create one. As with any activity, having a plan can increase your success rate (and income) by 30% or more.

Advertising and Marketing should be a big part of your business plan. If your old plan had your advertising focus on the little freebie papers or newspaper ads, local TV, and radio, you may be missing a huge group of potential buyers that rely on social media or streaming services for entertainment. A great website is no longer effective and has been replaced by having a complete social media presence. Print or banner ads have been replaced by targeted video ads. A live sales presentation and test drive is being replaced by an online touchless purchase experience. Younger car shoppers are showing a higher likelihood to prefer shopping and purchasing online. Many prefer texting to phone calls or in-person visits. A successful plan should contain a strategy that addresses a growing online presence including Instagram, SnapChat, Facebook, YouTube, and regular requests for Google reviews.

How do you know what works best for your customers? Begin by asking every caller and every visitor this simple question, “How did you hear about us?” In a short time, you will be able to identify which ads are working and which are a waste of money. The most important part of this process is to write everything down and make an honest evaluation as to what works and what is no longer working. As salespeople we often rely on our ‘gut feelings’ and sometimes it takes seeing the data in black and white to realize a change is in order.

Decide if your business and marketing practices are focused on creating revenue or if you are stuck in the past. I recently had a

conversation with a 62-year-old that claimed he was too old for this online game. He was surprised when I reminded him that his age, and older, introduced us to this age of online engagement. He was the same age as today’s Millennial shoppers when Facebook and other social media was launched!

The next step is to adjust your plan, removing the obsolete or ineffective things, and adding in the items and tasks proven to work well in today’s market. Your business plan is a tool to help create revenue more efficiently for your business. It should be referred to on a regular basis and reviewed or updated every six months.

Money saving tip: If you are presented with an opportunity by an advertiser, the details of the offer should be compared against your business plan before you agree to spend one cent. Even if it appears like the deal of a lifetime, if it doesn’t fit within your written plan, take a pass on the opportunity. It’s really that simple. Save the information until your next six-month plan review. If it’s a good idea now it will be a good idea in six months and you can choose to implement it then.

Need some guidance? MARIADA, NIADA, and their affiliate vendors provide limitless resources to help you navigate your business in 2023 and beyond. Attend local chapter meetings and visit the association website. n

Todd Shepard is the founder of Shepard & Shepard Insurance Solutions and a regular contributor to the several IADA publications. For more information or to obtain a competitive dealer insurance quote visit www.shepquote.com.

Showing blemishes most likely will lower the vehicle’s value, but the tradeoff is that the dealer gains customers’ trust as they make their buying decision.

USED-CAR PHOTOS: Documenting

Imperfection as a Best Practice

BY LOUIS NORMAN III

Because new vehicles are in short supply, used or reconditioned vehicles have seen increased demand since December 2019, with prices rising by 42% during that time, according to the U.S. Bureau of Labor Statistics. As this demand is expected to continue into 2023, one practice that many dealers do not realize, which greatly influences the consumer buying decision, is showing the blemishes that come with these vehicles, especially in today’s growing online retailing landscape.

Whether the reconditioned vehicle has scrapes, dents and scratches on the exterior, or even wear and tear with the interior, it’s important for dealership photographer vendors to be transparent and offer to display features of these blemishes on the dealership’s online vehicle detail page (VDP) to ultimately help the customer make an informed buying decision.

While it’s obvious that reconditioned vehicles aren’t going to look as perfect as new vehicles, dealership photographer vendors can give a dealership complete transparency with customers by photographing all imperfections on the reconditioned vehicle.

This can be done through an image viewer and an imperfections tab offered by leading dealership photography vendor applications.

Just by showing reconditioned vehicle blemishes, the dealership not only protects its reputation but also increases customer loyalty. Despite these blemishes most likely lowering the vehicle’s value, the tradeoff is that the dealer gains the customer's trust as they make their buying decision.

Even though dealers have asked about “Photoshopping” or “retouching” the

vehicle blemishes before reconditioning occurs, this ultimately screams false advertising to the customer. Instead, photographing all reconditioned vehicle blemishes provides complete transparency.

With 78% of consumers expressing satisfaction when buying a vehicle online, according to an industry survey conducted earlier this year from Progressive Corp., an insurance company, showing the blemishes of the reconditioned vehicles helps the consumer feel more comfortable throughout the entire browsing experience. By being able to see any imperfections of the vehicle, the customer feels reassured that the dealership isn’t trying to hide the blemishes if they come to see the vehicle in person.

The major strategy dealership photographers should use when shooting reconditioned vehicles is taking the blemish photos from multiple angles to show the vehicle’s overall condition. Consistent imaging across the VDP is a large factor when looking into customers’ buying decisions and ultimately will help increase the customer’s trust in the dealership.

For example, if a photographer is going to take multiple shots of a scratch on the driver-side door, it is best to show the whole length of the door versus only the part where the scratch may appear.

Photographs showing how the vehicle being offered appears in person gives the savvy car buyer peace of mind, knowing the dealership doesn’t have a problem with baiting and switching. n

Louis Norman III is the director of operations of Dealer Image Pro (dealerimagepro.com), a professional photo, video and 360 software company based in California.

Cybercrime in Automotive: What You Need to Know

BY BRAD HOLTON FOUNDER, PROTON DEALERSHIP IT

Think about all the consumer data your dealership collects… names, phone numbers, addresses, work details, salary, social security numbers; financial details about their vehicle purchase; and even credit card information from service. The list goes on and on. This is what makes dealerships a prime target for cyberattacks. Let’s break down cybercrime in automotive.

HOW ARE DEALERSHIPS BEING ATTACKED?

• Ransomware is the most common form of attack in automotive.

• Email is the number one method for gaining access to a dealership’s network.

So what exactly is ransomware? It’s a type of malicious software that gets into the dealership’s network, encrypts and often steals data, and then demands a ransom payment in order to get it back.

Think about it: your sales people are answering online inquiries daily. They get an email and they respond without questioning it. That is their job, after all. Your business office folks communicate with various lenders and vendors, receiving and making payments. Fixed Ops is no exception.

That’s what makes email such an easy and successful method. So how do hackers do it?

Hackers have become so sophisticated, they are actually able to get inside your network and monitor what’s going on. They identify a contact whom you email frequently, maybe you receive an invoice or report from them weekly. After months of monitoring from the inside, they will send you a message disguised as the typical email you get. It might have an attachment that looks like the invoice or report you typically receive, but as soon as you click it, a malicious

download begins in the background. Having the appropriate cybersecurity measures and employee training in place will determine how far into your network these hackers can get. Let’s assume you have very basic protection, and they are able to officially ransom your data… what are the consequences?

REAL WORLD CONSEQUENCES TO AUTOMOTIVE CYBERCRIME

• The average ransomware remediation costs are $1,400,000.1

• Business are down after a ransomware attack for an average of 21 days 2

• 84% of consumers would not buy another vehicle from a dealership after their data had been compromised.3

You arrive at your dealership on a beautiful Thursday morning. It’s month end, and you’re excited because you have a truck full of inventory coming today – it’s the first time in weeks. But, you aren’t able to log in. You start receiving phone calls from employees who either can’t log in or have a strange message on their screens. Your entire dealership is down. You can’t sell or service cars. You can’t close deals. You can’t pay bills or accept payments.

The cost of this event could be days with no operations at all and lost customers who go to another store for a vehicle purchase or service work, or angry customers whose vehicles are in for service, but they now can’t get them for days. Then once you finally do get back up and running, it’s a slow process, getting computers back online, getting your data off the back-ups (that are hopefully current), and making sure everything is accurate.

Once the dust has settled, you can finally start to think about your reputation and the impact this will have on future business. Think of the customers you’ll have to notify,

and the friends with whom they’ll share this news. You might now be wondering, “How do I ensure this doesn’t happen?”

PROTECTING YOUR DEALERSHIP FROM CYBERCRIME

• 30% of dealerships are not up-to-date on their security software.4

• Only 21% of security professionals think their current security controls are adequate.5

The right cybersecurity program could be the make-or-break element in an event like this. It all starts with a strong perimeter firewall to protect your network. Then, if something manages to get through your firewall, the next layer of protection is advanced email security that is able to identify and filter out suspicious emails. Additionally, if something does get through to email, a comprehensive system should alert the monitoring team so they can step in and take action if needed.

Taking it a step further, endpoint detection and response will protect each of the individual computers and mobile devices your team uses every day. To cap it all off, your employees should be trained to look for suspicious email triggers. They are your first line of defense.

Consider your dealership, the legacy that has either been passed down for generations or that you plan to one day pass down yourself. One cyberattack could change all of that. Protect your dealership, protect your legacy, before it’s too late. n

1 Sophos, The State of Ransomware 2022

2 Coveware report, Bizjournals.com, Buckle up - automotive dealerships unprepared for cybercrime

3 Total Dealer Compliance

4 Total Dealer Compliance

5 Forrester Research, 2020

Driving Opportunities in a Changing Industry

BY RONNIE WENDT

The automotive industry experienced a tsunami of disruption over the last two years. But with this disruption came opportunities for innovation and advancement, says Kristin Thompson, director of sales for Autotrader.

She divides the disruptions into three buckets: the COVID-19 pandemic, the global shortage of semiconductor chips, and tightened inventory constraints. “With the changes came opportunities for innovation and advancement,“ she says. “These three things catapulted the industry ahead. The automotive industry is now moving ahead at a much faster pace.”

DISRUPTION DRIVERS

COVID-19 represents the top disruptor in the market, according to Thompson. The government did not immediately categorize retail automotive as essential, so automotive dealers found their dealerships closed along with the rest of the country. This shift required dealerships to pivot from in-person operations to virtual just to stay in business.

“COVID pushed everything online because a lot of dealer showrooms were closed,” she says. “This scenario rapidly advanced industry products like digital retailing, where dealerships met the customer online and took the deal from there.”

The lockdowns led to a critical chip shortage, which also drove change within the market. As automotive factories and plants hit the pause button, they stopped placing orders for chips. The electronics industry scooped up these additional chips and when the auto industry reopened, manufacturers found chips in short supply.

“The chip shortage will not go away soon because of the logistics issues in the world

today,” Thompson adds. The chip shortage has tightened production and led to critical inventory shortages within automotive retailing. This has driven up demand and set record prices for new vehicles.

“The chip shortage took the industry from a buyer’s market to a seller’s market,” she says. “With a lot of inventory, a buyer can choose what they want. But the chip shortage transitioned the retail market into a seller’s market, driving prices up. It’s still competitive, however. Whoever has or can get the inventory captures market share.”

The chip shortage drove pipeline issues, she adds. “How do they get inventory? How do they buy inventory at the right price? Dealers must buy vehicles at the right price to make money. The shortage also pushed the wholesale market into the digital realm. In-person vehicle auctions transitioned to online auctions and heightened competition for vehicles.

Thompson expects inventory levels will remain low on car lots because “OEMs and dealers are finding they don’t have to have 600 vehicles on a lot to sell cars. Consumers are adjusting to ordering vehicles and waiting 8-10 weeks to get them, which was once unheard of,” she says.

Consumers, she says, are also adjusting to paying higher prices for these vehicles. According to J.D. Power research, June 2022 represented the eighth consecutive month that retail inventory closed below 900,000 units. Meanwhile, new vehicle prices continued to set records with the average transaction price hitting $45,844, a 14.5% increase over the previous year.

CONSUMER CHANGE

The disruptors in the marketplace also

changed consumer buying behavior, adds Thompson, who hosted a panel titled “Consumer Buying Behavior: Insights and Trends” at the 2022 NIADA Convention & Expo in Las Vegas.

“Consumer satisfaction has grown along with the ability to purchase a vehicle online,” she says. “It used to be unheard of to buy a car online.”

She cites the Cox Automotive Car Buyer Financing Journey Study to support her comments. This research revealed buyers who completed key financing steps online saved time and were more satisfied with their time at the dealership than buyers who completed the same steps in person.

“Consumers like being able to buy a car online because it makes the process more efficient and shortens the time they spend in the dealership,” she says.

Digital retailing became the norm during the pandemic, she says, and “consumers demand that it stay that way. Consumers want to see that process move forward so they can buy a car completely online. There are dealerships where you can do this already. But consumers want this to be the norm rather than the exception.”

BE DIFFERENT

Today’s consumer buying behavior presents an opportunity for dealers to differentiate their dealerships to stay top of mind and win market share, Thompson adds.

“Ask, ‘What can I do to win that customer? Because they are going to buy. It’s just a matter of whether they will buy from you.”

“Dealers need to ask themselves: What can I Continued on page 23

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

Weekly Sales Wed. 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

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

CORRY AUTO DEALERS EXCHANGE

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

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

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.

Continued from page 21 do to differentiate my dealership? What can I do to stay top of mind? What can I do to win market share?” she says. “These three things are what a dealership needs to succeed.”

This begins with understanding today’s car buyer, who spends less time in the market and the purchase process. Today’s consumer spends just 83 days in the new car market versus 101 days in 2019. The purchase process declined to 92 days in 2021. And used car buyers traveled 88 miles from home to buy a car versus 98 in 2020.

The number of miles consumers will drive to buy a car indicates customers are using digital retailing tools to start deals online, Thompson stresses. Dealers once advertised within a 25-50-mile radius. Now it’s critical to expand the advertising footprint and get vehicles in front of customers 100, 200 or 300 miles away, she adds.

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

YOUR MEMBERSHIP PAYS FOR ITSELF!

More specifically, the benefits of the MidAtlantic IADA membership include many helpful services, products, educational courses, national representation and much more!

“The dealer who has the best and most information in front of the consumer the fastest is the one who will differentiate itself with customers,” she adds, noting it is essential to be different in the digital realm.

“With consumers shopping online, you want photos, videos of the vehicle and custom comments online,” she says. “You want to tell customers what differentiates this car and your dealership and provide this knowledge in a digital environment.” She stresses, “The dealership with the most information and the best information will win market share.”

Consistent messaging and consistent pricing are also important, she adds. Third party sites still get more traffic than dealership sites. KBB and Autotrader remain in the Top 3 Most Visited Sites and Cox Automotive has seen an increase of 17% in traffic relating to the car buyer journey. And Kelley Blue Book is the most used trade-in tool.

“Consumers will hop from site to site, whether that be Kelley Blue Book or Autotrader or some other site, to look at the fair market range for that vehicle,” she says. “Then they will look at whether the vehicle you are selling matches up to that price. Consistent messaging and pricing across all

platforms is vital. It differentiates a dealer by building trust with the consumer.”

She adds, “Consumers want to have confidence and trust in the information that you are giving to them. Here, consistency of messaging is important because it builds consumer trust and keeps the dealership top of mind.”

It’s also essential to partner with third parties to “get your vehicles out there and expand your digital footprint,” she stresses. Retargeting with consistent messaging also expands a dealership’s footprint and helps build trust, she adds. Retargeting is an online marketing strategy that involves serving customers who previously visited a dealership website with relevant ads as they browse external websites. To do this, dealers must place retargeting pixels on their websites to capture customer browsing information, which is held in user profiles kept by ad networks and tracked with cookies.

“When you retarget, the message follows the consumer, so they see it in other places,” she says. “This way your message always stays in front of the consumer.”

She adds, “Some people say, ‘Well, automotive is a different type of purchase.’ But it really isn’t. We are all searching and shopping for everything online. So, using retargeting like other industries do will really help you win market share.”

To win in auto retailing, one must gain market share. “Dealers must ask what they can do to win market share and be proactive and conscious about their efforts to do so,” she says. “There are only so many shoppers in the market that are going to buy a vehicle. Are they going to buy it from you or someone else?”

Another step to differentiating a dealership is to enhance customer service. “This is where you stay proactive and establish your customer service as something that sets yourself apart,” she says. “Ask, ‘What can I do to win that customer? Because they are going to buy. It’s just a matter of whether they will buy from you.” n

PENNSYLVANIA FORMS DEALERS CAN ORDER MARYLAND FORMS DEALERS CAN ORDER

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 $ $

$ FTC Buyers Guide (100 per pack) $28.00 $56.00 $ Check one:

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 $

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 $ _______ $ _______

ADP FORMS

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 $