SEPTEMBER 2022 • MIDATLANTICAUTODEALERSUNITED.ORG How Subprime & Independent Dealers Can Digitize Their Back-Office 4 Marketing Strategies for Overcoming Inventory Shortages Dealers AssociationIndependent Automobile MidAtlantic RegionalPennsylvania | Maryland|Delaware DEALER NEWS MIDATLANTIC UNITEDDEALERSAUTOMIDATLANTIC HIGHLIGHTING17102PAHarrisburg,St.,FrontNorth1501 PENNSYLVANIA • MARYLAND • DELAWARE Solving CustomerIt’sExperienceCustomerChallenges:Timefor21stCenturySuccess LEGISLATIVE HIGHLIGHT: FY 2022-23 Pennsylvania State Budget Adopted PLUS 4 Ways Employee Retention Benefits your Dealership
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 1 The official magazine of the MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION PENNSYLVANIA • MARYLAND • DELAWARE 1501 North Front St., Harrisburg, PA 17102 (717) midatlanticautodealersunited.org238-9002 Copyright 2022 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, clint.weaver@americasautoauction.comPA Tom Hodges, Vice-President Tom Hodges Auto Sales, Hollywood, MD tom@tomhodgesauto.com Dan Limongelli, Vice-President Jo Dan Motors, Plains, jodanmotors@gmail.comPA 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 WOULD YOU LIKE TO RECEIVE A DIGITAL EDITION OF THE MIDATLANTIC DEALER NEWS MAGAZINE? Email shannon@piada.org SEPTEMBER 2022 | CONTENTS 3 | How Subprime & Independent Dealers Can Digitize Their Back-Office According to a report from Experian Automotive, the strategy has continued to prove successful: Approximately 39.9% of used vehicle loans are accounted for by BHPH dealers. 6 | Auction Highlight: Central PA Auto Auction 21st Annual Antique & Classic Auction This year’s event featured approximately 450 units, selling 76% overall, grossing over $7.5 million in total sales. 8 | Solving Customer Experience Challenges: It’s Time for 21st Century Customer Success For dealerships, understanding the expectations of customers is what makes a great versus good versus mediocre customer experience. 12 | 4 Ways Employee Retention Benefits Your Dealership The pandemic labor phenomenon known as the ‘Great Resignation’ is predicted to continue – almost half of employees are looking for a new job or plan to soon. This means keeping your best talent is critical to your success. 16 | Take Advantage of the Safeguards Compliance Course Keep your dealership compliant with the FTC’s Safeguard requirements. 19 | 4 Marketing Strategies for Overcoming Inventory Shortages Every dealership is dealing with inventory acquisition challenges. It’s an industry-wide issue that has had a profound impact on profitability. 20 | Optimizing Your Operations to Drive Profit$ There are many decisions to make in a short time, making it challenging to prioritize operations to move your dealership forward strategically. FEATURES 2 | President’s Message 4 | Executive Director’s Message 9 | Legislative Update 14 | The CarLawyer© 18 | Auction Directory 22 | Membership Application 24 | Order Form for Dealership Supplies (PA & MD) MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION SPONSORS q DEPARTMENTS
Director, Shannon Becker. Shannon has been with the association for many years and has truly shaped our organization to serve our membership from our office on Front Street in Harrisburg. We appreciate all Shannon has done and the additional role she has taken on over the past several months. If you are in the office, please take a moment to thank her for all of her hard work.
The last day of summer 2022 is Friday, September 23.
Our association has expanded to allow Shannon to focus on the work being done for our dealers in our offices. We’re excited to announce that John Odorisio has joined MARIADA as our new Executive Director. Many of you may know John from his former posting with Manheim Auto Auctions in Bordentown, Ohio, Chicago, Lakeland and Milwaukee.
2 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 q PRESIDENT’S MESSAGE NOAH MELAMED, PRESIDENT MIDATLANTIC REGIONAL IADA OWNER, TICKET TO RIDE AUTO SALES FINANCE, LANCASTER, PA As many of you know there has been a lot of activity at MARIADA this year. We have two pieces of legislation at the capitol in Harrisburg, our title office is expanding and hitting the road, we are planning updates to our building to better serve our member base, and we have continued to push back on government overreach into our industry. All of this has been moving forward and we have been thriving under the leadership of our board and our Associate Executive Telephone: 215 860 6510 Website: www.aatins.com Langhorne, Pennsylvania Auto YourInsuranceDealer/GarageSpecialistsOne-StopShopforAutoDealerInsurance * Garage and Automobile Liability * * Dealer Physical Damage * * Garagekeepers * * Work Comp * * Quick Quote Turnaround *
John is working hard with our lobbyists and legislators to help shape the laws in PA, MD, and DE to assist our industry.
John will also be out on the road visiting dealers and auctions around the tristate.
Please, if you see him at your local auction, stop to say hello and let him know what your needs and concerns are as a dealer so we can serve you and make our states a more friendly place for the automotive industry as a whole.
MARIADA represents all independent automobile dealers in Delaware, Pennsylvania, and Maryland. It is led by a board of dealers just like yourself all looking to make the states we live in more friendly to our industry and protect dealers from predatory action. We have successfully blocked harmful legislation, facilitated the increase of fees paid to dealers for the expense of selling a vehicle, made titling a vehicle more efficient, and we have driven legislation that helps us do more with our businesses. John’s background in our industry makes him the perfect fit as the face of MARIADA, and we are going to continue to drive our agenda forward with John at the helm.
Finally, I’d like to thank all the dealers in PA, MD, and DE for your support over the last two years. My time as the board president of MARIADA is coming to an end. It has been an honor and a pleasure to serve in this position. I’m grateful to all of you for supporting us and our mission to represent the dealers of our states. I will continue to be active with the board, and I know we are in good hands with our incoming President Bert Straub of 1st Choice Auto in Erie, PA. Bert is a long time board member with a lifetime of experience in the automotive industry. As always, I look forward to seeing you all in the lanes and hearing what we can be doing to serve our membership.
n DID YOU KNOW?
4 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • q EXECUTIVE DIRECTORS MESSAGE CMYCYMYCMYMCK MidAtlanticDealerNews-SEPT2022-NEWPRINT.pdf 1 8/8/22 12:40 PM never worked at an automobile dealership, my experiences and relationships while at Manheim have given me some insight into the challenges you face every day. Having lived through the many ups and downs of the past five decades I have come to admire the resilience independent car dealers show every day. My pledge to you is simple: I will work to bring value to your business to help you succeed in any way we can. I look forward to meeting you in the future and want to especially THANK YOU for your past and continued support of our organization. MONDAY, SEPT 5 HAPPYLABORDAY PLEASURE IN THE JOB PUTS PERFECTION IN THE WORK -ARISTOTLE
By Tim Yalich, Head of Auto Strategy, Wolters Kluwer
What’s unique about many of these independent and BHPH dealers is that they serve as both the car dealership and finance provider. Many of these maintain a line of credit from a warehouse lender so they can offer on-the-spot loans to car shoppers who might have been turned down from traditional captive or prime lending institutions.
Wolters Kluwer is a global provider of professional information, software solutions and services for the automotive and auto lending industries.
How Subprime & Independent Dealers Can Digitize Their Back-Office
With a paper-based process, independent and used dealers need to get their files to the party of interest well ahead of closing.
Today’s New Digital Ecosystems Designed for Independents
1: Auto Finance Insights, State of the Automotive Finance Market Q4 2021; Experian
According to a report from Experian Automotive, the strategy has continued to prove successful: Approximately 39.9% of used vehicle loans are accounted for by BHPH dealers. These companies have also been effective in securitizing loans for sale into the secondary market. In the past, their securitization efforts involved a significant amount of physical paperwork – pallets of loan documents manually gathered and physically shipped to a purchasing lender. However, with drastically changing industry best practices centered around faster transaction times, a more digital transaction process, and increasing regulatory compliance requirements, these dealers must find a way to move from paper-based processes to a more digitized one in their back office.
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That can be severely problematic when today’s process must move at a more expedited pace.
In addition to these needs from the dealer, subprime auto finance providers are increasingly finding that they need new, sophisticated, agile technology systems that enable e-Contracting and posttransaction asset management across an ever-growing array of channels.
To overcome these challenges, subprime lenders, third-party providers, and independent and used dealers are leveraging digital ecosystems that are purpose-built to handle the auto finance industry’s origination channel diversity. This eliminates the complexities of managing various multi-channel assets post-execution and drastically reduces time and operational costs.
Subprime Lenders & Independent/Used Dealers Must Leave the Paper World Today, many subprime lenders and independent/used dealers hold paper documents in a secure area in a physical building. Then, before any initial securitization, the dealer must ship pallets of files to the lender and wait for them to make all inputs before closing on the securitization. Once that custodial relationship is established, the dealer would ship on a regular schedule, but a lot of paper is still getting shipped, which adds time to the check-in process.
It also provides the assurance of legal and regulatory compliance, enabling lenders to securely manage digital assets throughout their entire post-execution lifecycle through an electronic collateral control agreement (ECCA). This advanced process will offer centralized data management across an entire portfolio, allowing automotive professionals to view metadata across various origination channels and asset classes. It will help to control and track access, manage status changes, and transfer control of digital documents while utilizing sophisticated granular controls and permissions to allow for departmental separation and visibility. All of this will result in improved speed and process efficiency, and for lenders particularly, it will free up capital through syndication, sale, or Subprime,securitization.independent, and used dealers continue to serve a vitally important role in today’s automotive ecosystems. With this convergence of back-office processes from paper to digital, they will take their next step into tomorrow and solidify what should remain a promising future of profitable growth and service to their local communities.
Make no mistake, while franchised auto dealers continue to grab most headlines addressing rapidly changing and consumer-facing digital retailing experiences, independent and used dealers (including those known for Buy-Here-PayHere financing) remain a constant pillar of the industry, serving customers who are focused on used vehicles, or those with less-than-stellar credit or budget.
Today’s fast-paced multi-channel origination entails tracking, auditing, and analyzing tasks across various digital and analog locations. And this can create operational and business bottlenecks for warehouse lending partners and negatively impact transfer and securitization for secondary market delivery.
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 5
Consider that there is a lot happening in the timeline to complete a securitization.
The process allows for improved visibility of assets, quick expansion of the investor and lender pool, agility, and the ability to scale quickly and dynamically.
6 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 Central PA Auto Auction 21st Auction&AntiqueAnnualClassic Central Pennsylvania Auto Auction held their 21st Annual Antique and Classic Auction sale on July 14-16. This year’s event featured approximately 450 units, selling 76% overall, grossing over $7.5 million in total sales. The auction had over 600 registered bidders from all parts of the country and as far away as PennsylvaniatheMiller,CongratulationsDubai!toDougV.P./C.O.O.andentireteamatCentralAutoAuction!
The sales force needs to have a thorough understanding of the products being sold, the vehicles, how financing works, ancillary products, F&I product benefits, and more. For Internet sales and required return calls/texts, is your team doing their homework before speaking to customers and getting back to them in a reasonable and timely manner?
It’s essential that customers are provided with factual information, especially about financial issues. Make it personal. Build a strong connection by training your staff to listen and get to know the customer. Salespersons need to earn trust. Be transparent. Provide legitimate assurances.
By Michael Fiorini, Regional Manager for Vanguard Dealer Services
RISK REDUCTION FOR DEALERS
ANTICIPATE YOUR CUSTOMERS NEEDS Does your sales staff make customers feel valued? Do they listen to and understand their needs? Do they show immediate action and provide solutions? Understanding the customer experience is a core business strategy for dealerships today.
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As a result of digital engagement opportunities, there have been significant changes that have rapidly evolved the automotive customer experience. Consumers simply won’t settle for good enough. A large majority do their own research and due diligence, knowing exactly what they want and expect from a dealership. For dealers, understanding the expectations of these customers is what makes a great versus good versus mediocre customer experience. All having a huge impact on your dealership’s culture and on your Vehicleprofits.performance and price is still of primary importance, but a positive customer experience has become critical as well to make an initial sale, to start a relationship, and to make that person your customer for life. Today’s buyers have set higher standards for dealers and the dealership experience, both online and in the store. New consumers are looking for connected and virtual experiences that are efficient and timely. No one wants to spend hours in the dealership to purchase a vehicle. Research, in fact, suggests that after 90 minutes in a dealership, the purchase experience declines along with the customer’s Disengagement,ratings.not driving customer loyalty to a store, makes the entire sales model precarious. There needs to be a more data driven approach to sales and after market sales that focuses on the customer experience. Customers want to develop a relationship wherein they feel assured that their needs are being met. Staff expertise, service drive accessibility, data privacy and protection are all key factors in today’s purchase process.
For dealerships, understanding the expectations of customers is what makes a great versus good versus mediocre customer experience.
Did you know that a sale is seven times more likely to occur if a customer is responded to in less than 60 minutes?
Are they experts - helping your organization with everything from conducting interviews and staffing, to claims, to choosing the proper reinsurance structure to fit your long-term goals? Regardless of whether you sell the factories programs or reinsure through a third-party administrator, you’re sending money to someone. What are you getting in return? Are they working for it? You expect excellence and hard work
Solving Customer Success
ExperienceCustomerChallenges: It’s Time for 21st Century
As a dealer, you should evaluate the level of support you are receiving from your partners and consultants. For example, skilled, knowledgeable representatives should be providing you with support by way of F&I training and service training. Are your employees being trained effectively on how to handle customers, claims, and more? How often do you see your representative, your trainer, and when are they present at your dealership?
RAINY DAY FUND: Another important aspect of the budget is the further investment of $2.1 billion to the Rainy Day Fund. This fund exists to help the government keep functioning in the event of an emergency or financial catastrophe. With this year’s investment, the total value of the Rainy Day fund has increased to approx imately $5 billion or 42.6 days of General Fund expenses. By adding funds to the Rainy Day Fund, legislators are also helping to improve Pennsylvania’s debt rating and make our debt less expensive.
With the passage of the budget, the Pennsylvania General Assembly is in recess until mid-September. As this year is an elec tion year, we anticipate a limited number of session days this fall. With the possibility of limited session days, PIADA’s Legislative Committee remains hard at work advocat ing for the following pieces of legislation:
MOTOR LICENSE FUND (MLF):
n q LEGISLATIVE UPDATE
By Tyler Burke, Associate, Milliron & Goodman Government Relations
FY 2022-23 Pennsylvania State Budget Adopted
Starting with a 1% reduction in 2023 and then shifting to .5% reduction over the next 8 years. Pennsylvania currently has the high est flat rate CNI in the country. By reducing the CNI, legislators have set Pennsylvania on a path that will help to bring many more business and jobs to the Commonwealth in the years to come.
Further plaguing dealers is the issue of becoming noncompliant. Deal audits must be consistent on a monthly ongoing basis, with an in-depth quarterly audit process. Your F&I partners who are not fulfilling this obligation are not providing you with optimal service. Look for a partner that provides monthly finance meetings, recaps with management both verbally and written, asks what the dealers’ agenda is and how can I help, understanding your goals, objectives and setting expectation and road map on how to get there. When aligning yourself with a partner, check references and ask your colleagues for recommendations. First and foremost, your partners need to set up your dealership and your staff for success.
As part of the budget package, legislators have agreed to reduce Pennsylvania’s CNI from it’s currently 9.99% to 4.99% by 2031.
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 9 from your employees. The partners you choose should be held to those same high standards. Continuity is important. Strive to attain great support. Like your customers, you shouldn’t settle for less. Align yourself with someone who knows your business inside and out, can see issues coming up, and solve for them strategically and soundly. Find support for analyzing your processes and your products, and helping you define and develop areas within the business. The partner should provide an action plan and, importantly, offer local support, flexibility, and timeliness - being there and being present.
Training is most effective when it is preplanned. As a first step, the needs of the dealership and its customers should be identified, and how they relate to the functions of specific departments and individuals. That is the best way to assure they are managing your customers akin to your vision and are developing relationships for your brand. n
Early in July, the Pennsylvania General Assembly passed a $42.8 billion FY 20222023 budget. While the state budget is a yearly occurrence in Pennsylvania, this year’s budget is being heralded as a victory for every Pennsylvanian.
TRAINING YOUR STAFF IS IMPORTANT AND ONGOING Untrained staff will have a negative impact on customer service. Support by way of oncea-month finance-only training is simply not enough. Your staff training needs to include sales skills, customer service, product knowledge, internal systems and processes, technology, and automotive compliance.
CORPORATE NET INCOME TAX (CNI):
House Bill 2372 (Schmitt-R): This legisla tion authorizes a wholesale vehicle auction, or salvor, to remove vehicles that have been abandoned by dealers after 3 business days of the vehicle remaining without consent. It would also authorize the auction to charge and collect storage fees, as well as the releas ing or recovering costs of the abandoned vehicle. This legislation passed the House by a vote of 109 to 90 and is now before the Senate Transportation Committee for its Houseconsideration.Bill2290 (Isaacson-D): This legisla tion adds catalytic converter to the defini tion of “secondary metal.” Under this legis lation, a person commits the offense of theft of secondary metal (i.e., catalytic converter) if the person unlawfully takes or attempts to take possession of, carries away or exercises unlawful control over any secondary met al with intent to deprive the rightful owner thereof. This legislation was reported from committee and is now before the full House for its Houseconsideration.Bill1092(Kaufman-R): This legis lation further provides for identification requirements for sale of scrap materials to scrap processors and recycling facility oper ators. It also creates a new process for scrap processors or recycling facilities before pur chasing a catalytic converter. This legislation was reported from committee and is now before the full House for its consideration. The House returns to voting session on September 12th and the Senate on September 19th. PIADA’s Legislative Committee will continue to push these bills and keep you apprised of any further developments.
Legislators have also reduced the amount of MLF dollars used to support the Pennsylvania State Police to $500 million, which frees up $175 million annually for road and bridge projects. The State Police are not losing funding. The costs are being shifted from the MLF to the General Fund.
MID-ATLANTICTHROUGHOUTDEALERSTOLOCATIONSSERVETHE KEYSTONE PENNSYLVANIA 488 Firehouse Road Grantville, PA 717-469-790017028|Fax 717-469-2842 Joey Hughes, GM Shirley Kennedy, Office Manager / Dealer Services Mondays, 11 AM PENNSYLVANIA 1190 Lancaster Road Manheim, PA 717-665-357117545|Fax 717-665-7521 Joey Hughes, GM Randy Derr, AGM Kevin Gantz, AGM Tim Doyle, AGM Andy Mekulsia, Commercial Accounts Manager Deni Hostsetter, Dealer Services Exotic Highline Sales every other Thursday at 11 AM, Friday is regular sale stating
PENNSYLVANIA 717-469-2842 Services 717-665-7521 Manager Services other stating at 9 AM PITTSBURGH 21095 Route 19 Cranberry Twp., PA 16066 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 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 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 TRA Sale, Tuesday 12 PM
Here are four ways employee retention benefits your dealership.
A recent survey of the up-and-coming Gen-Z workers shows they want to stay on the job only 3.72 years on average, and 25% of those surveyed said they would only spend 1-2 years on a job before moving on. But time spent finding new employees and training them is money lost, and there are other disadvantages to high turnover, as Thesewell.costs and benefits have driven many dealerships to laser focus on employee retention.
The pandemic labor phenomenon known as the ‘Great Resignation’ is predicted to continue into 2022 – almost half of employees are looking for a new job or plan to soon. This means, keeping your best talent is critical to your success. But how do you do that? And why does it matter?
4 DealershipYourBenefitsRetentionEmployeeWays
WHAT IS EMPLOYEE RETENTION? WHY IS IT IMPORTANT? At its simplest, employee retention is how long an employee stays at your dealership. The time someone stays at a given job has been dropping steadily for years, and most recently a study revealed that most people stay just over four years at a single employer.
By Mary Anne Hoggan
2. IMPROVEDEXPERIENCECUSTOMER
In addition, when you must hire, you can attract good candidates by offering an employee referral program, screening potential job candidates well, and hiring the right people in the first place. The wrong hire can be extremely damaging to company culture, and the right one can propel you to the next level.
The first and most common benefit of employee retention is reduced costs. Think about the many steps to recruiting that cost time and money: Posting an ad online and vetting potential candidates. Interviewing and onboarding, including paying for items like uniforms, nametags, and office equipment/setup.
Happy employees are recognized, listened to, work in a positive environment, and maintain a healthy work-life balance.
4. IMPROVED EMPLOYEE MORALE
Remember, employee turnover not only hurts you, but it also benefits your competition.
In the wake of COVID, many businesses are understaffed. A 2021 study by CareerPlug suggests that 50% of employees have considered leaving their current job in the last 12 months. Feeling overworked due to exiting staff is a valid reason why employees may look elsewhere for employment right now.
RETENTION AS A CULTURE
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 13
If a customer knows and likes your employees, he or she will likely be a repeat customer, from parts and service to purchasing vehicles. But another part of this is customer expectations and the kind of experience they want to have at your dealership. The more consistent the process and the people they deal with, the better it is for them. And satisfied customers make for a more profitable dealership.
You save money and time by keeping your best talent. The other beneficiary of employee retention is your customer.
• Repeating the recruiting cycle if a bad hire is made.
The simple solution is prevention through employee retention programs. A high performing team runs smoothly and efficiently, maintaining a dealership’s sales and reputation.
Studies show that happier employees are more productive and more likely to stay. Keeping employees happy has many facets, including a strong employer brand (what prospective employees see that attracts them to work for you in the first place).
HOW TO EMPLOYEEINCREASERETENTION
• Training (It can take six months to one year to truly learn a role and the organization.)
Employee retention is a part of your culture – part of your employer brand. It is unique to you. The more you show that you care for employees and their advancement, the more they will care about you as an employer. Investing in them means they also invest in you. To support those goals, NIADA has supported the independent used auto dealer community for more than 75 years. They offer ongoing sales and other dealership training that can help you find, and keep, the best in the business. And there’s never a downside to that. n
Experienced employees provide those consistent experiences. In addition, they understand the business and how your team works together. The better the teamwork, the smoother your operations will be. A new employee will take time to become part of your team.
According to a 2017 CareerBuilder Survey, 74% of employers say they have hired the wrong person for a position and companies lost an average of $14,900 on every bad hire.
3. INCREASED PRODUCTIVITY
1. REDUCED COSTS
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Creating a positive employee brand or culture goes far beyond sales commissions.
Positive culture, competitive compensation and benefits, ongoing training, and career development are all methods to retaining the best talent for your dealership. It’s also important to offer recognition where it is due.
These are all costs that can be eliminated or reduced significantly by retaining your current employees. But retention is about more than just your bottom line.
• Recruiting and referral incentives.
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Retaining an experienced team that works well together supports a strong work environment and employer brand. It’s vital to a dealership’s business success.
Losing employees hurts your bottom line and your dealership’s performance. The more often employees leave, the more productivity will be disrupted. While the trainer and trainee are working together, everyone around them has to pick up the slack or certain things may take longer or simply not get done. Even if a new hire is an excellent fit, it will take the individual several months to reach his or her maximum productivity after training. This means it will take even longer for your team to return to full strength –impacting staff and customer service.
CFPB Issues Opinion on FCRA Obligations.
NCUA Proposes Rule on Cyber Incident Notification. On July 21, the NCUA Board approved a proposed rule on cyber incident notification requirements. The proposed rule would require a federally insured credit union that experiences a reportable cyber incident to report the incident to the NCUA as soon as possible and no later than 72 hours after the credit union reasonably believes that it has experienced a reportable cyber incident. This notification requirement provides an early alert to the NCUA and does not require credit unions to provide a detailed incident assessment within the 72-hour time frame. Comments are due on or before September 26, 2022.
THE MONTH Court Refused to Compel Arbitration
Continued on next page
On July 7, the CFPB issued an advisory opinion outlining certain obligations of consumer reporting agencies and users of consumer reports under Section 604 of the Fair Credit Reporting Act. Noting that some CRAs use insufficient matching procedures, such as name-only matching, which can result in consumer reports being provided to persons without a permissible purpose to receive them, the advisory opinion explains that the permissible purposes listed in Section 604 are consumer specific and affirms that a CRA may not provide a consumer report to a user unless it has reason to believe that all of the consumer report information it includes pertains to the consumer who is the subject of the user’s request. In addition, the advisory opinion clarifies that it is unlawful to provide consumer reports of multiple individuals as “possible matches” where the requester only has a permissible purpose to obtain a consumer report on one individual. The CFPB notes that disclaimers will not cure a failure to have a reason to believe that a user has a permissible purpose for a consumer report. The advisory opinion also reminds users of consumer reports that Section 604 strictly prohibits them from obtaining a consumer report without a permissible purpose for doing so. Finally, the advisory opinion outlines some of the criminal liability provisions in the FCRA.
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 Consumer Financial Protection Bureau, the Federal Reserve Board, the National Credit Union Association and the Federal Trade 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
CFPB Releases Blog on Auto Debt, Delinquency Rates, and Repossession Rates of Young Servicemembers. On July 18, the CFPB released a blog post highlighting its prior research on the amount of auto debt young servicemembers carry, as well as delinquency and repossession rates among young servicemembers. The blog post also highlights the Department of Justice’s recent enforcement actions addressing illegal repossession practices under the Servicemembers Civil Relief Act and states the CFPB’s expectations that creditors, servicers, and repossession agents adhere to the SCRA’s requirements, especially when using repossession technologies like starter-interrupt devices, GPS locators, and license plate recognition.
FRB Proposes Rule Implementing LIBOR Act. On July 19, the FRB invited comments on a proposed rule that would implement the Adjustable Interest Rate (LIBOR) Act. The proposed rule would establish benchmark replacements for certain contracts that use the LIBOR reference rate and do not have terms that provide for the use of a clearly defined and practicable replacement benchmark rate when the LIBOR reference rate in its current form is discontinued on June 30, 2023. The proposed rule also would provide additional definitions and clarifications consistent with the AIR (LIBOR) Act.
National Associations Request Delay of Safeguards Rule. On July 21, ACA International, the American Financial Services Association, the Consumer Data Industry Association, and the National Automobile Dealers Association, requested that the Federal Trade Commission delay the applicability date of the Standards for Safeguarding Customer Information rule (the Safeguards Final Rule) until December 2023. Without a delay or extension, the applicability date for the Safeguards Final Rule will be December 9, CASE(S)2022.OF
14 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 The CARLAWYER©
Comments are due by August 29, 2022.
Where Parties Signed Conflicting Arbitration Agreements in Connection with Online Car Purchase: In connection with her online car purchase, the buyer signed a number of documents electronically, including a purchase agreement, a retail installment contract, and a GAP waiver addendum, all of which contained arbitration provisions. The buyer sued the dealership from which she bought the car and the assignee of the RIC. The defendants moved to compel arbitration. The buyer opposed the motion, arguing that there was no meeting of the minds with regard to the issue of arbitration. The RIC identified
Continued from previous page the dealership as the dealer and contained an arbitration agreement providing that the buyer may choose any arbitrator subject to the approval of the defendants and that the defendants are required to pay up to $5,000 in arbitration costs. The purchase agreement incorporated the RIC, including the arbitration agreement. However, the GAP waiver addendum, which stated that it amended and became part of the RIC, identified another company as the dealer and contained an arbitration agreement that did not specify which party was responsible for paying arbitration fees and costs and provided that the administrator would select one of at least three arbitrators that the buyer identified. Because there was a conflict between at least two of the arbitration agreements over responsibility for fees and how the arbitrator would be chosen and because there was no indication as to the relationship between the dealership named as the dealer in the RIC and the other company named as the dealer in the GAP waiver addendum, the U.S. District Court for the Western District of Washington agreed with the buyer that the parties did not agree on the terms of arbitration and denied the motion to compel.
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.
Bendickson v. Vroom, Inc., 2022 U.S. Dist. LEXIS 114134 (W.D. Wash. June 28, 2022).
Our Case of the Month highlights issues that we’ve harped on in prior CARLAWYER© reports regarding arbitration provisions. This Case of the Month highlights how conflicting arbitration provisions can be fatal to compelling arbitration. The purchase agreement, the retail installment contract and a GAP waiver addendum all contained arbitration provisions. However, the arbitration provision in the GAP waiver addendum identified another company as the dealer, contained an arbitration agreement that did not specify which party was responsible for paying arbitration fees and costs (thus differing from the arbitration provision in the RIC) and provided that the administrator would select one of at least three arbitrators that the buyer identified. The court agreed with the consumer that “there was no meeting of the minds” between the parties because: (i) there was a conflict between at least two of the arbitration agreements over responsibility for fees and how the arbitrator would be chosen, and (ii) there was no indication as to the relationship between the dealership named as the dealer in the RIC and the other company named as the dealer in the GAP waiver addendum. As the parties didn’t agree on the terms of arbitration, the motion to compel arbitration was denied. This is yet another reminder to read your arbitration agreement(s) (you are using an arbitration agreement, right?) in your consumer-facing documents and see if you have conflicting terms or So,requirements.there’sthis 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# 4892-9019-2172.
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 15 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 with this special offer... To order, visit us www.counselorlibrary.com/offer/spotatorcallusat877.464.8326.Alsofollowuson000000 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. DeliverySPOTVol. 21, Issue 7 January/February 2019 A Monthly Legal Update for Auto Dealers and Finance Companies from Coun elorLib y publisher of ® 5 Federal Law What Access Problems? By Thomas B. Hudson 6 Insurance Issues Vendor’s Single Insurance—ImportantInterestPesky Details By Elizabeth C. Yen 8 PrivacyTheBrand-New Right to Privacy in California By Patricia E.M. Covington 10 CommentaryPost-Election Musing By Michael A. Benoit 11 ArbitrationArbitration Clause in Vehicle Retail Installment Contract Applies to Buyers’ Defamation Claim Against Salesperson By Latif Zaman 12 JurisdictionSuedOutof State? By Nicole F. Munro 13 MarketingLiketoLive Dangerously? Have Got a Deal for You! By Eric L. Johnson 14 Consumer ProtectionFinancialBureauCFPBWatch Michael A. Benoit IN THIS ISSUE: DEALER/BANK RELATIONS Dealers Are from Mars, Finance Companies Are from Venus By Thomas B. WARRANTYHudson*LAWWords(andTexts) 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 WARRANTYdistrict
See
COMPLIANCE TIP
16 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 Adv-MARIADA-3.625x10-021422.indd 1 2/14/22 5:15 PM Ensure your staff knows how to protect consumer information Eto nsure your staff knows how to protect consumer information to comply with the FTC requirements, avoid inadvertent exposure cof omply with the FTC requirements, avoid inadvertent exposure of your customer's information, government enforcement yactions, our customer's information, government enforcement actions, lawsuits, and bad lpress. awsuits, and bad press. Brought to you by MidAtlantic Regional IADA. Powered by Bthe rought to you by MidAtlantic Regional IADA. Powered by the Dealer Education DPortal. ealer Education Portal. Visit Visit https://www.midatlanticautodealersunited.org/ https://www.midatlanticautodealersunited.org/ Or scan the QR Code for info and Oregistration r scan the QR Code for info and registration S a f e g u a r d Ss a f e g u a r d s C o m p l i a n c e C o u r s Ce o m p l i a n c e C o u r s e Volume purchase discounts available for members The course is flexible and on-demand to fit your busy schedule All users earn a certificate upon completion Sample policies and agreements are included at no additional charge Keep Your Dealership Compliant with Kthe eep Your Dealership Compliant with the FTC's Safeguards FRequirements TC's Safeguards Requirements Only $75 for the Qualified Individual Only $49 Each for All Other Employees Take Advantage of the SAFEGUARDS COMPLIANCECourse
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • | 17 ***Early Bird Drawing $5000.00 Giveaway*** HAS A NEW LOOK! Don’t Miss The Grand Reopening Of The New Garden Spot Auto Auction SAME GREAT SERVICES • SAME GREAT LOCATION • NEW DIGS TUESDAY, SEPTEMBER 27, 2022 AUCTION BEGINS AT 10AM SEPT. 27, 2022 FREE StartingBreakfastAt8:30AM If You’ve Never Experienced Or Its Been So Long You Can’t Remember... YOU’LL WANT TO BE HERE GARDENSPTAUTOAUCTIONGARDENSP T 500 CARS! !
18 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • AUGUST 2022 AUCTION DIRECTORY ADESAPENNSYLVANIAMERCER 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 717.266.661117406/ 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 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 814.664.772116407/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 BSCMARYLANDAMERICA/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 ADESAJERSEYAUCTION OF NEW JERSEY 200 N. Main, Manville, NJ 08835 908.725.2200 / Fax: 908.725.3446 Consignment Sale Thursdays 8:45 AM Topline Sale 9:00 AM monthly GMThursdaysFactory Sale Bi-weekly Tuesdays 10:00 AM adesa.com MANHEIM NEW JERSEY AA 730 Rte. 68, P.O. Box 188 Bordentown, NJ 08505 609.298.3400 / Fax: 609.298.4489 Wednesday 9:00 AM manheim.com NEW ADESAYORKBUFFALO 12200 Main St., Akron, NY 14001 716.542.3300 / Fax: 716.542.3547 Sale Tuesday 9:00 AM Boat & RV Sale 2nd Tuesday Monthly 11:00 AM Ford Factory Tuesday Monthly 9:00 AM Office: M-Tu: 8-5, W: 8-4, Th: 9-4, F: 9-3 ADESA.com/Buffalo
is dealing with inventory acquisition challenges. It’s an industry-wide issue that has had a profound impact on profitability. And while some dealers are choosing to “wait out” the inventory shortage, others are succeeding now. Implement these four auto dealer marketing strategies to face down inventory obstacles and overcome supply chain challenges at your dealership.
Strategy 2: Widen Your Geo-Target
Focus auto advertising on inventory acquisition. Promote that you’ll pay top dollar for used vehicles.
As inventory shrinks, expand your audience beyond normal boundaries with messaging about buying used vehicles.
Strategy 3: Add Web Content
Use your dealership’s website to advertise acquisition efforts with home page banners, service page banners, and trade-in reminders.
Strategy 4: Dealership-Wide Plan
Ensure marketing, sales, and service are all in sync, connecting workflows across departments, to accomplish inventory acquisition goals.
The current inventory shortage is a major challenge, and it’s not going away anytime soon. With these four proven marketing strategies, you can outlast current supply chain challenges to keep profits high, even as inventory is low. To learn more about these strategies and other tips for acquiring inventory, check out Dealer.com's guide, “Marketing Solutions for Inventory Challenges" (dealer.com/content/guide/marketing-solutions-forinventory-challenges). n
MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 | 19 ADESA LONG ISLAND 425 Patchogue Yaphank Rd. Yaphank, NY adesa.com/longIsland631.205.500011980 ADESA SYRACUSE 5930 State Rte. 31, Cicero, NY 13039 adesa.com/syracuse315.699.2792 BUFFALO AUTO AUCTION 5300 Lockport Road Lockport, NY deeregunner@hotmail.com716.549.480014094 MANHEIM ALBANY 459 Route 146, Clifton Park, NY 12065-0440 manheim.comjay.waterman@manheim.com518.371.7500 MANHEIM NEW YORK AA 2000 Dealer Drive, Newburgh, NY 12550 845.567.8400 / Fax: 845.567.8410 Every Thursday 9:00 AM Ford Factory Closed Sale Bi-Weekly 10:00 AM Heavy Truck & Equipment Sale First Thursday of the Month 11:00 AM manheim.com MANHEIM ROCHESTER 20 Cairn Street, Rochester, NY 14611 manheim.comsara.fico@coxautoinc.com585.328.2277 ROCHESTER- SYRACUSE AUTO AUCTION 1826 State Route 414, P.O. Box 129 Waterloo, NY 13165 rsautoauction.comsprankie@rsautoauction.com315.539.5006 STATE LINE AUTO AUCTION 830 Talmadge Hill Rd. S. Waverly, NY 607.565.815114892/Fax: 607.565.3915 Ally Financial Open Sale –EVERY FRIDAY, 9:20 AM GM Financial Open Bi-weekly. Simulcast in all statelineauto.comlanes. WEST MOUNTAINVIRGINIASTATE AUTO AUCTION Route 2, Box 835, Shinnston, WV 26431 304.592.5300 / Fax: 304.592.3510 Monday 10:30 AM Office: mtstateaa.com9:00-5:00
4 Marketing Strategies for Overcoming Inventory Shortages
By EveryDealer.comdealership
Strategy 1: Evolve Campaign Types
• Advertise and market to acquire cars from other people and wholesalers
A good DMS will also offer additional services or integrate with other software to: • manage customers (CRM), • allow customers to buy their next car easily, maybe even completely online (digital retailing tool), • and run reports to watch the numbers.
Shamel Leonard is a dealership principal with 10+ years of experience in small dealership operations. She is also the founder of the Auto Dealer Business School, where she is a mentor to startup dealerships to improve operations and grow profits.
For small and startup dealerships, we need a controlled approach to expenses. Reconditioning is a major expense and is very important in the sales process. A strategic reconditioning process can add value to inventory, thus bringing higher profits. It’s important to find the most efficient way to do that.
Selecting a niche is a great way to focus your operations to optimize sales. As you further develop your niche, you will learn the specific needs of your inventory and your customers. You will be able to focus exclusively on vehicles that fit your niche, improving your operations. You will become an expert at finding cars, fixing cars, and marketing to the perfect buyer for faster sales.
Running a new or even established independent dealership can be overwhelming. There are many decisions to make in a short time, making it challenging to prioritize operations to move your dealership forward strategically.
Your Operations
All dealerships operate similarly by going through the same four steps. We all buy cars, get them cosmetically and mechanically ready to drive, attract buyers, and successfully close and process the sale.
Most dealerships use a DMS. If you aren’t familiar, DMS is Dealer Management Software. A DMS is absolutely essential in managing operations for dealerships of all Asizes.good DMS will optimize how you purchase inventory, how you manage the reconditioning process, how to market inventory, and everything need to sell a vehicle to a retail or wholesale customer, in state and out of state.
20 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022
It’s best to have a DMS in place before your first sale. If you have sold vehicles without a DMS, you can import data from your previous sales.
BY SHAMEL LEONARD
It’s an actual wash, rinse, repeat process with little to no variation. However, there are a lot of strategies to get this done. We all must find the best practices for our revenue goals. So how do you determine what’s best?
TIP #4: OPTIMIZE ACQUISITIONS (BUY CARS FROM EVERYWHERE)
We have experienced challenges with finding used car inventory. Now more than ever, it’s important to have a system to acquire inventory from sources outside wholesale auctions. Some additional ways to acquire inventory are to:
TIP #2 ESTABLISH AN IN-HOUSE RECONDITIONING PROCESS
Let’s look at the four things you can do today to ensure your dealership is on track to generate significant revenues. With rising gas prices, interest rates, and a possible pending recession, it matters more than ever for auto dealers to protect their investments and, more importantly, their dreams!
• Ask your family and friends
• Build relationships with companies that acquire inventory through repossession or trade-in With multiple sources to obtain inventory, you can weather any storm, be it a pandemic or a recession. Start today! Optimize your operations to profit more, protect those profits and operate lean & clean. n
The top two mistakes I see most new dealerships make are: 1. not properly managing inventory (having the right vehicles or enough inventory), and 2. not controlling costs (protecting profits)!
TIP #1: USE SOFTWARE TO SYSTEMIZE OPERATIONS
Optimizing to Drive
The cash car market also tends to not ebb and flow with changing economic conditions, like a recession. Sales tend to be steady in all seasons. Find your niche!
With an in-house reconditioning process, you can have more control over costs and time to market if managed correctly.
TIP #3: FIND AN INVENTORY NICHE
For most small dealerships, a good niche is the cash car market, along with in-house financing referred to as Buy Here Pay Here (BHPH). In the cash car market, the inventory costs are low. It’s also easier to have positive cash flow because cash cars sell more quickly compared to other markets.
Profit$
• Ask your current customer base to buy vehicles
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22 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 2022 ADVANCED ISSUING AGENT TRAINING COURSES IN PERSON AT THE FOLLOWING LOCATIONS SPECIAL THANKS TO OUR ANNUAL SPONSORS: Monday, March 14, 2022 AMERICA’S AA – HARRISBURG 1100 S. York St., Mechanicsburg, PA 17055 Monday, April 25, 2022 ADESA - PITTSBURGH AA 378 Hunker Waltz Mill Rd., New Stanton, PA 15672 Monday, May 16, 2022 NORTHEAST PENNSYLVANIA AA Arcaro & Genell Restaurant, 443 South Main St., Old Forge, PA 18518 Monday, June 13, 2022 MANHEIM PHILADELPHIA AA 2280 Bethlehem Pike, Hatfield, PA 19440 Monday, September 19, 2022 GARDEN SPOT AA Robert Rd. & Apple St., Ephrata, PA 17522 COURSE REGISTRATION PIADAContactCompanyMember? Yes No DIN # E-mail CityBusinessAddressAddress State_______Zip Code________ Phone (____) ___________________Fax (____) Number Attending ______ NAMES OF ATTENDEES: Card Type: VISA MasterCard Discover American Express Name on Card: Card # Security Code ______ Exp. Date_____ Signature Fax (We’d prefer fax) to 717.238.3870 Or Mail to: PIADA, 1501 North Front Street, Harrisburg, PA 17102 PIADA Members: $99 • Non-Members: $129 Contact PIADA chapter today: Email Cynthia@piada.org or call 717.238.9002. SIGN UP FOR ADVANCED ISSUING AGENT TRAINING COURSES IN PERSON AT THE FOLLOWING LOCATIONS John Odorisio, Executive Director (717) john@piada.org317-3098 Shannon Becker, Associate Executive Director (717) 238-9002 shannon@piada.orgx18 Nicole Autry, Dealer Set-Up Unit (717) nicole@piada.org317-1966 Cynthia Slemons, Membership Specialist (717) 238-9002 cynthia@piada.orgx16 Pamela Switalski, Dealer Titles (717) 238-9002 ext. 15 pamela@piada.org Barbara Stake, Online Registration Department (717) 238-9002 barb@piada.orgx27 Jessica Lutz, Title Call Center (717) jessica@piada.org238-9002 Tammy Farmer, Receptionist (717) 238-9002 ext. receptionist@piada.org10 Heather Levesque, Accounting (717) heather@piada.org238-9002 GET TO KNOW YOUR MID-ATLANTIC TEAM If we may be of assistance to your dealership, please give us a call. We have an array of experience at the office and we look forward to sharing our time with you.
88 Auction Road | Manheim, PA 17545 | 1-800-366-2141 | www.dealergoodies.com ONLINE AUTO DEALER SUPPLIES AND SELLING AIDS! LaborHappyDay!
24 | MIDATLANTIC DEALER NEWS | MIDATLANTICAUTODEALERSUNITED.ORG • SEPTEMBER 2022 PENNSYLVANIA FORMS DEALERS CAN ORDERMARYLAND 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 $ $ 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 $ _______ $ _______ Subtotal $ $ 6% Pennsylvania Sales Tax $ $ Shipping $ per pound + Special Shipping $ at cost. Total w/o shipping $_________ 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. PhoneCity_______________________________________________StateAddressContact_______________________________________________DateDealership______Zip_____________________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 SalesShippingTax 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 $ _________ MemberDealerDealership#(required) Yes No Contact Name AddressEmail(FEDEX& UPS WILL NOT DELIVER TO P.O. City_______________________________________________StateBOX) ______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 For questions you may contact Cynthia Slemons at 717.238.9002 ext. 16 or Cynthia@piada.org . MIDATLANTIC IADA = PIADA + MDIADA + DEIADA Contact 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 AutomobileJOIN TODAY! Shipping Cost: 1 – 4 packs = $10.00 5 – 10 packs = $15.00 Over 10 packs – Please call ahead for pricing.
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