Mid-Atlantic Dealer News - September 2023

The official magazine of the MIDATLANTIC INDEPENDENT AUTO DEALERS ASSOCIATION

PENNSYLVANIA • MARYLAND • DELAWARE

1501 North Front St., Harrisburg, PA 17102 (717) 238-9002 midatlanticautodealersunited.org

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

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

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

Vacant, President - Elect

John DeFilippo - Treasurer U Drive Today Sales & Finance, 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

America’s Auto Auction Erie, Corry, PA

George Smouse • gasmouse@zoominternet.net

Smouse Trucks & Vans, Mt. Pleasant, PA

Steve Worley • worleymotors@hotmail.com

Worley Motors, Enola, PA WOULD

4 | Convention Registration Form

5 | Hunker Down: Bankruptcy Filings are on the Rise!

Bankruptcy Filings are in the News – reporting that total bankruptcy filings during the first half of 2023 are up 17% over the same period a year ago!

6 | Convention Sponsors

Without the generosity of these industry partners, our Convention and Expo would not be possible. When you see these gracious representatives around this year, please thank them for their support.

8 | Convention Featured Speakers

MARIADA has invited eight of the industry’s most reputable experts to share their knowledge with dealers. We look forward to your feedback!

10 | Convention Agenda (Subject to change.)

Check out the exciting offerings at this year’s big event in Atlantic City! From a fun opening reception to a football party and countless industry speakers, it will be our best convention yet!

16 | Why User Experience is Important for Car Dealership Websites

Not every car shopper is the same. Therefore, not every web design should be the same for every car dealership.

21 | More Consumers Turned Down for Auto Loans

Part of the issue is that lenders want to hold onto more cash after the spring bank failures in case of a withdrawals rush.

24 | Helping Your Customers Make the Leap to EV

New technology brings with it new thinking. The key is in changing the way we approach the selling process to uncover the hidden benefits and value for our customers.

28 | Driving Success Together: 8 Ways Your Entire Dealership Staff Can Turbocharge Social Media Presence

With social media becoming a driving force in consumer behavior, businesses need to adapt and embrace this powerful tool.

Copyright

BERT STRAUB, PRESIDENT MIDATLANTIC IADA MANAGER, 1ST CHOICE AUTO, LLC FAIRVIEW, PA

Ihope you are doing well. We are excited to extend a cordial invitation to attend the upcoming MidAtlantic IADA Convention and Expo to be held September 24-26th at the luxurious Caesars Atlantic City.

The MidAtlantic IADA Convention is a premier event that brings together professionals, industry experts, and thought leaders from various sectors to discuss and share insights on the latest trends, challenges, and opportunities within our dynamic landscape. This year’s event promises to be an engaging and enlightening experience, with a diverse lineup of speakers, interactive workshops, networking sessions, and much more.

DATE: SEPTEMBER 24 - 26TH

LOCATION: CAESARS ATLANTIC CITY, 2100 PACIFIC AVE, ATLANTIC CITY, NJ

Highlights of the Convention and Expo:

• Keynote speeches from renowned industry leaders

• Panel discussions on emerging trends and best practices

• Interactive workshops for skill enhancement

• Networking opportunities with fellow professionals

Your expertise and insights would significantly contribute to the success of this conference. Your presence would enrich the discussions and foster meaningful connections within the industry. We are confident that the knowledge shared and relationships formed during the event will have a lasting impact on all attendees.

You can visit our registration page to confirm your attendance and register for the conference at midatlanticiada.org/auctions-2023. Registration is only $195 per person and early registration is recommended to secure your spot and take advantage of the discounted rates.

If you need any more information or help, please do not hesitate to contact our conference organizing team. We look forward to your positive response and the pleasure of having you join us. Together, we can shape the future of our industry and drive dynamic achievements.

Sincerely, Bert

SPECIAL CONVENTION INSERT

The MidAtlantic Independent Automobile Dealers Association WELCOMES ONE AND ALL to our 2023 Convention & Expo

SEPTEMBER 24-26, 2023

Badge Information: Please enter your attendee badge names. Use additional paper if needed.

HUNKER DOWN: Bankruptcy Filings are on the Rise!

By Ignite Consulting Partners

Bankruptcy filings are in the news: Reporting that total bankruptcy filings during the first half of 2023 are up 17% over the same period a year ago! That is a huge increase and reflects the fact that more consumers and businesses are facing increased debt loads due to inflation, rising interest rates, and the increased cost of borrowing.

Are your processes and procedures in place?

LIEN PERFECTION

Are you ensuring your liens are filed and timely perfected? You don’t want to lose your security interest in a bankruptcy filing because your title processing and lien perfections are running behind.

UNDERWRITING

Buy-here, pay-here dealers are not afraid to finance consumers with poor credit and past bankruptcies. However, consumers that are currently in an active bankruptcy should be avoided unless you have approval from the Bankruptcy Trustee to extend new credit. Be careful here. Review your processes with your Underwriting Team.

SERVICING AND COLLECTIONS

Do your servicing and collection teams understand what actions can and cannot be taken for a customer that has filed and is currently in an active bankruptcy?

Now would be a great time to call a meeting and be sure your staff is fully trained on your bankruptcy policy and procedures.

• Understand the process to communicate the new filing, how your bankruptcy team becomes aware of the new filing, who is responsible for documenting your DMS and next steps. DOCUMENT AND DOCUMENT SO ALL ARE AWARE!

• Once the filing is confirmed – do your employees understand they must immediately cease all collection

efforts on the account?

• Have you canceled any pending repossession orders? AVOID WRONGFUL REPOSSESSIONS!

• Do your collectors understand that they must NOT initiate or continue your starter-interrupt device, if you use them?

• Is the repossession sale placed on hold until next steps can be determined?

• What about your recurring payment arrangements, ACH, etc.? Have they been discontinued for the immediate time-frame?

• Are your bankruptcy accounts designated into a different queue or monitoring process to ensure experienced collectors or managers are reviewing?

• Ensure your staff updates your accounts as the customer(s) moves through the bankruptcy status’ such as discharge, dismissal, etc.

CREDIT REPORTING

Don’t forget about credit reporting! Ensure your staff understands the required updates on bankruptcy accounts for your DMS. You don’t want to report a consumer past due if they have just filed a new bankruptcy. The disputes that may follow can be costly!

Whether your products involve retail or leasing, these consumers are protected immediately by the Automatic Bankruptcy Stay!

Written policies and procedures and training on the subject can save you lots of headaches. Please reach out to Ignite at info@ignitecp.com for assistance. n

CONVENTION: THANKS TO OUR SPONSORS!

A very special thank you to our DIAMOND SPONSOR

A SPECIAL THANK YOU TO OUR SILVER SPONSORS

THANK YOU TO OUR BRONZE SPONSORS

THANKS TO OUR STAND ALONE SPONSORS

AND JOIN OUR SPECIAL AUCTION PARTNERS ON AUCTION ALLEY

CONVENTION: FEATURED SPEAKERS

KEY NOTE SPEAKER:

Jeff Martin, CEO, National Independent Automobile Dealers Association

A native Texan, with a taste for good barbecue and chicken fried steak, Martin grew up in the Brazos Valley in the rural town of Franklin. After attending college at Tarleton State University in Stephenville, he was drawn to the Texas capitol, Austin. After his wife landed a job with the state auditor’s office, Martin took a position with the Association of Texas Professional Educators as a field representative. Martin rose to Director of Member Services with ATPE and helped the association grow from 65,000 to 107,000 members. The experience helped solidify a passion for working on behalf of others on complex issues. Moving from a state association to NIADA, Martin hopes to build on the lines of communications with other state associations and work together to find solutions for dealers. He knows different states will have different needs, which he wants to work to understand.

OUR VERY SPECIAL GUEST:

Grainne M Owen, Co-founder and President, Curing Kids Cancer

A native of London, England, Grainne graduated with B.A. and M.A. degrees from the University of Kent at Canterbury, England. She worked as both the Principal European Analyst and the International Relations Advisor at the London Stock Exchange, distinguishing herself in the city’s financial district. Grainne has also been recognized by the Junior League for her tireless work toward finding childhood cancer cures. Today, Grainne leads the fundraising and awareness efforts of Curing Kids Cancer as President and Founder.

SPECIAL PRESENTATIONS BY:

David Brotherton, Author, Trainer & BHPH Industry Authority

David has been in the working world since mowing lawns in his small Indiana home town at the age of 13. After graduating with a degree in Economics from Purdue University, David began his career in small loan lending and collections before moving to mortgage lending. In 2000 he joined the Buy Here – Pay Here industry spending 12 years in the Byrider system before becoming a consultant and 20 Group Moderator for the Leedom Group and NIADA. David’s dedication to the industry, its owners and their teams is evident in the passion and dedication he brings to every situation. As a 20 Group Moderator and Consultant with over 20 years in the industry, David brings a combination of experience and leadership to the established 20 Group dynamic as well as by providing on-site dealership evaluations and training, team building and consulting services. David also leads several industry seminars and conventions, speaks both regionally and nationally and regularly contributes to industry publications.

Gene Daughtry, BHPH Consultant, Trainer and Writer

With over 30 years of retail automotive experience, Gene’s journey began in 1990 at a franchise dealership where he started in sales. Progressing through various roles, he became a Finance Director, Sales Manager, Assistant General Manager, and ultimately a General Manager. Gene also spearheaded the establishment of four new Buy Here Pay Here (BHPH) dealerships for different companies. Accumulating 23 years of BHPH operational expertise, including moderating 20 groups and providing consultation, he now conducts nationwide BHPH/LHPH dealership training and consulting.

From initial startups to established ventures, he specializes in crafting procedures, training collections, optimizing workflows, and assisting startups in creating business strategies. Additionally, he functions as a Fractional COO, overseeing operations, and have experience as a Fractional Manager within a Finance Company while training other teams. Gene’s impactful contributions extend to building and managing dealerships across Texas, Indiana, and Arkansas. Involved in location selection, team development, inventory management, fixed operations setup, compliance, and vendor coordination, they left their mark. For a decade, Gene served as a writer for three industry magazines, and now, he contributes to Cherokee Publishing BHPH Report. Active in the community, he trained and lobbied with the Arkansas IADA during legislative sessions. Hosting a radio show, “Nuts and Bolts,” for nine years and writing commentaries for a local newspaper further showcased his dedication.

Matthew Faranda-Diedrich, Partner, Royer Cooper Cohen Braunfeld LLC

Matthew FarandaDiedrich is a partner in the Corporate & Business and Litigation Groups. He has a reputation for being an opportunity spotter and a problem solver. Matthew counsels a broad base of clients, spanning individuals, start-ups and early-stage ventures, to national and multinational Fortune 500 companies, in a wide variety of matters, including business advice, litigation strategy, transactional guidance and insurance coverage. Matthew also has deep expertise in banking and financial services, where he regularly serves as a trusted advisor and general counsel to C-suite level executives, EVPs, SVPs and other offices, as well as boards of directors in a wide variety of transactional, corporate, risk, compliance, litigation and employment matters. Matthew has successfully litigated opposite the largest firms in America on behalf of his clients.

Steve Levine, Owner and Chief Legal and Compliance Officer, Ignite Consulting Partners

Steve Levine is an auto finance lawyer with over 30 years of experience protecting car dealers and finance companies. He is an owner and Chief Legal and Compliance Officer of Ignite Consulting Partners. They offer guidance on compliance, operations and best practices. In 2022, he published Winning the Fight: A Guide to Protecting Car Dealers, which is available on Amazon or you can contact Steve at info@ignitecp.com and get a complimentary copy. Follow Steve on Twitter @LawyerLevine for compliance and industry related content.

Terry MacCauley, Founder & CEO, Big Time Advertising

Terry MacCauley shines as an automotive industry luminary, boasting a 30-year journey.

Terry’s extensive background encompasses sales, management, and a remarkable advertising and marketing proficiency. His profound grasp of automotive retail dynamics empowers dealerships to excel beyond expectations.

Having held leadership roles in premier OEM dealerships, Terry is renowned as a speaker and consultant. His magnetic personality, combined with candor, energy, and wit, consistently engages his audience, leaving them hungry for more insights.

As CEO of Big Time Advertising, Terry leads a team driving digital marketing for auto dealers. They prioritize sales volume and gross results, collaborating closely with dealerships to devise comprehensive advertising blueprints that enhance both sales and operations.

CONVENTION: FEATURED SPEAKERS

Terry’s legacy is defined not just by his credentials, but by his transformative impact on dealerships navigating a dynamic market. Whether on stage or in personalized consultations, Terry’s goal remains unwavering: provide actionable insights and practical advice for tangible outcomes.

Maggie Pugesek, Partner and Trainer, C&M Coaching

Since 2010, Maggie Pugesek has been an expert in automotive call training, specifically focused on customizing a process for each dealership individually. As a Partner at C&M Coaching, she has developed training material, word tracks & methods that help improve overall call quality for Sales,

BDC, Service & Collection departments. Maggie has trained thousands of people on how to execute these techniques to accomplish their phone call goals. She offers free training tips on her podcast, Elevate with C&M Coaching, and has published material in multiple dealer magazines. Maggie has spoken at previous national dealership conferences, Compliance Unleashed & directly to dealer 20 groups of all sizes, dedicated to sharing her knowledge with dealers to improve the success of the industry.

CONVENTION AGENDA |

SUNDAY, SEPTEMBER 24

3:00pm

MidAtlantic IADA

President’s Meeting led by Bert Straub General public is welcome.

4:00pm

MidAtlantic IADA Board Meeting –MidAtlantic IADA Executive Committee

Current MidAtlantic IADA members only.

Guest Speakers include:

President’s Welcome by Bert Straub

•

Introduction to Curing Kids Cancer by Grainne Owen

•

Keynote Address by Jeff Martin

• Legislative Update & Policy Conference

Recap by Shaun Petersen

•

Economic Outlook & Its Effect on Obtaining Capital (Moderated Q&A)

Coffee break sponsored by Hex 9 Architects LLC

Noon

LUNCH WITH THE VENDORS

1:00 to 4:00pm

4:00 to 5:00pm

DEALERS’ FIRESIDE CHAT

This part of the afternoon will feature 2023 MARIADA Dealer of the Year Mike Dorazio along with a panel of the region’s most successful dealers.

6:00 to 9:00pm

COCKTAIL RECEPTION

Enjoy passed hors d’oeuvres and an open bar. Donations will be accepted for our featured cause: Curing Kids Cancer. Everyone is invited to put their best foot forward to welcome our special guests:

Jeff Martin, current CEO of NIADA and Grainne Owen, Founder and President of Curing Kids Cancer!

MONDAY, SEPTEMBER 25

7:30 to 9:00am

Breakfast with the Vendors Sponsored by Central Pennsylvania Auto Auction

6 UNFORGETTABLE BREAKOUT SESSIONS

Learn about actionable items you can take back to your dealership and implement right away.

Succession Planning

• Protecting your Dealership through Compliance

•

Digital Marketing Solutions

• Training to make a Difference

•

20 Groups Explained

• Service in the Industry

Visit our website for timely updates.

6:30pm

MONDAY NIGHT FOOTBALL PARTY WITH VENDORS

Please join us to end a great day with some camaraderie and fun! Bring your favorite jersey and catch up with friends!

Philadelphia vs. Tampa Bay will be broadcast on the big screen in the Vendor Hall. Look forward to a fun-filled halftime auction and 50/50 to benefit Curing Kids Cancer. We’ll serve a light buffet of local game day favorites along with a cash bar. (A limited number of special vendor promotional drink tickets are available.)

Sponsored by Carriage Trade Public Auto Auction

TUESDAY, SEPTEMBER 26

7:30 to 10:00am

Farewell Breakfast with the Vendors

9:00am to Noon

GENERAL SESSION

Dealers are invited to hear from some of our industry’s brightest minds.

1:00 to 5:00pm

MEET SUBJECT MATTER EXPERTS

Subject matter experts will be on hand to discuss your particular challenges in the Hot Topics Lounge.

LIMITED SPONSORSHIP OPPORTUNITIES REMAIN, SO ACT FAST! Call Kathy at 717-238-9002 to find out more!

CONVENTION AGENDA

HOTEL ACCOMMODATIONS

BOOK THROUGH OUR WEBSITE AND SAVE! Visit mariada.org before all of our rooms are gone.

CAESARS ATLANTIC CITY HOTEL & CASINO

2100 Pacific Ave, Atlantic City, NJ

Staying at Caesar’s Atlantic City offers a luxurious and unforgettable experience that combines world-class amenities with the excitement of the iconic Boardwalk. From the moment you step into the grand lobby, you’re enveloped in an atmosphere of opulence and elegance. The hotel boasts spacious and beautifully appointed rooms with stunning ocean or city views, ensuring a comfortable and relaxing stay. Their seminar facilities are second to non. It’s not just a place to stay; it’s a destination that promises a complete escape from the ordinary. Bring your entire team. It will be education for you and fun for the whole family!

BOOST SALES BY ADOPTING FORWARD-THINKING TACTICS

BY COX AUTOMOTIVE

All dealers think about the future of their business, but some demonstrate more readiness than others. The true forwardthinking dealers are those using data and technology to advance their operations in ways that are already paying off today.

In fact, forward-thinking dealers employ specific tactics across their marketing, inventory management, service, and sales operations that set them apart from other ‘static’ and ‘modern’ dealers. And they’re planning to invest more in certain capabilities to drive more growth over the coming years.

Here are a few key priorities of forwardthinking dealerships to consider as you plan your path to a more profitable future.

LEVERAGE CONSUMER DATA TO APPEAL TO BUYERS

No two customers, nor their buying journeys, are alike. Everyone has their own unique buying preferences, opinions, and interests. Forward-thinking dealers

recognize the sooner you can key into this individuality and understand your customers’ distinct motivations, the better you can build a personalized buying experience. This process is key to closing sales, but it is made more difficult in today’s digital world. Your sales team must get to know shoppers and appeal to their interests without meeting them in person.

To aid in personalizing experiences, look for technology that shows you exclusive insights about shoppers, based on their online browsing behavior. This technology empowers you to proactively find and engage shoppers and guide them through their unique purchase path. While other dealers are waiting for customers to come to them, using first-party data, you can see insights about your customers right in your CRM, and appeal to them with personalized offers.

TECHNOLOGIES THAT MAXIMIZE SERVICE CAPACITY

Every dealer service department can

diagnose and repair a vehicle. Those service departments that optimize available time and technician talent to service more cars in less time are significantly more profitable. It’s a balancing act that favors prepared, well-organized service departments. Forward-thinking dealerships are using technologies that maximize every service minute and get the very most out of their service department.

When evaluating ways to optimize your service department, start with your scheduling technology. Are you overselling or underselling shop capacity? Do you have peak bottleneck times, followed by periods of downtime for your team? Find a scheduling software that can help your team optimize service capacity and enjoy a smoother service experience—for your team as well as your customers. That might mean incorporating technologies like text confirmations and reminders and putting vehicle history at your team’s fingertips, so you can keep cars flowing through the service lane with minimal complications or interruptions.

DRIVE PERFORMANCE AND DELIVER DATA THAT MATTERS WITH REAL-TIME REPORTING TOOLS

Modern dealerships have access to an unprecedented volume of customer, inventory, financial, and even behavioral data. That data can unlock new capabilities and profit streams for dealerships but harnessing it all can be very difficult. In order to capture insights and make better data-based decisions, dealers need flexible reporting solutions that integrate directly into their existing technologies.

Forward-thinking dealerships are maximizing their data by using solutions that deliver it consistently, promptly, and intuitively. Look for reporting tools that come with prebuilt dashboards and modules that make it accessible to leaders. Your technology needs to allow users to drill down deeper into their numbers for forecasting, filtering, and grouping information so they can track progress and growth.

To learn more research-based strategies and tactics for boosting profits, download The Forward-Thinking Dealership guide at coxautoinc.com. n

3rd Annual Summer Slam Car Show

Sunday, August 27 9AM - 1PM

7th Annual Summer Slam Sale

Tuesday, August 29 9:30AM

Hosted by Manheim Baltimore-Washington to benefit Wounded Warriors Day on the Bay

7120 DORSEY RUN ROAD | ELKRIDGE, MD | 21075

FREE & OPEN TO THE PUBLIC • EVENT IS RAIN OR SHINE

Ample parking available at no cost!

VEHICLE REGISTRATION:

$20 Registration Fee | To Pre-Register Visit: https://tinyurl.com/mrxptk6r

A variety of Food Trucks will be on site.

Flag Presentation at 9AM Trophy Ceremony at 12:30 PM

Rules of Show:

All Manheim and Maryland state traffic laws must be obeyed

Speed limit on lot is 15 MPH • No animals allowed

• No alcohol is allowed

Why User Experience (UX) is Important for Car Dealership Websites

By Dream Team Media Company

Automotive retailers understand the importance of a welldesigned, search-engineoptimized website for converting internet users to leads to sold customers. Developing websites optimized for User Experience (UX) means providing your audience with a seamless experience via the interaction on the website. Often, websites are designed to optimize aesthetics that are visually appealing to any viewer or to promote what the business wants the viewer to see first. In the automotive industry, websites typically prioritize inventory available for sale and incentives to drive a sense of urgency. Filters and search options related to car features remain prominent alongside catchy banners. Designing for UX entails taking visitors’ perspectives and anticipating their shopping needs, whether they are conscious of it or not. UX proves to be a valuable perspective in design for your store to communicate optimally and convert more traffic to buyers. As user experience grows in importance for a car dealership’s website performance, website providers need to be constantly attuned to how metrics indicate how best to cater

Please be sure to visit Dream Team Media’s booth at the 2023 MidAtlantic IADA Convention in Atlantic City, NJ, September 24-26th!

to different user experiences. What works for a franchise dealer may not work for the BHPH dealer. Alternatively, what the BHPH dealer can offer a potential franchise client may get lost due to poor messaging and UX. Not every car shopper is the same. Therefore, not every web design should be the same for every car dealership.

INCREASED WEBSITE TRAFFIC AND SEARCH ENGINE OPTIMIZATION (SEO) RANKING

Google incorporates UX in its algorithm for search engine results. User experience is a crucial factor that can significantly impact website traffic and SEO ranking. Have you checked your Google Search Console to view your page experience and core web vitals from Google’s perspective? It matters. A website that provides a positive user experience, such as easy navigation, fast loading times, and high-quality content, is more likely to attract and retain visitors. This, in turn, increases the chances of visitors sharing the website with others, leading to more traffic. Dealerships need to understand the way their target audience shops to achieve a website design catered to their shopping priorities. If a dealer offer inhouse financing, are customers looking for a filter that shows certain makes a models? An in-house finance shopper is likely looking to filter by down payment or monthly payment over make and model. Websites prioritizing user experience are more likely to rank higher in search results, as search engines aim to provide users with the most suitable and useful results. Therefore, focusing on improving user experience can have a significant impact on both website traffic and SEO ranking.

INCREASED USER ENGAGEMENT

When faced with an intuitive UX, users are more likely to engage with the product or service. This can be achieved through a variety of methods, such as reducing the amount of time it takes to complete tasks, ensuring that the product is aesthetically pleasing, providing clear and concise instructions, and having an engaging website design. For automotive retailers, website designers should consider the shopping experience for different types of buyers. The new car shopper experience will differ from the used car shopper. The

used car shopper with good credit will differ from the used car shopper with bad credit. The parent shopping for a car for their child will be different from the firsttime car buyers shopping for themselves. With such a tremendous variety in car shopper experiences and so many factors that play into the purchase beyond the type of car, it is a wonder that website templates for automotive retailers remain, in large part, generic and highly focused on cars rather than customer value propositions. When users feel their needs will be met once inside the dealership, they are more likely to interact on the website and visit the store.

IMPROVED USER TRUST & BRAND LOYALTY

The overall website experience can form the audience’s perception of your brand. New and used car dealerships often fail to treat themselves as a brand. Franchise dealers may rely too heavily on Tier 1 advertising and marketing directives, and independents may neglect their unique values and focus too much on leveling up to their competition. The devil is in the details. Find your unique value and focus on that. Your website can be instrumental in conveying your brand image and creating a great first impression on potential customers. A positive user experience can create a sense of trust and confidence in your dealership’s brand.

Conversely, a negative user experience can erode trust and lead to users seeking alternative options. By focusing on UX and providing users with enjoyable experiences, dealerships can differentiate themselves from competitors and build strong customer relationships. Additionally, positive user experiences can lead to positive reviews, further strengthening the brand’s reputation and customer base.

BETTER USER RETENTION

Highly engaged UX creates a good impression on users, making them more likely to continue using or exploring a product or service. Remember one thing: it is also essential that you always look at the website data, along with engagement rate and heat map, to see where your customers stop during their shopping

journeys and where they tend to interact more often than other sessions. Also, website design improvement needs to be taken into account regularly. Sometimes, changing some banners, product showcases or changing the order of vehicles displayed may help improve the overall experience. In short, a customercentric UX can help create a loyal user base and win your customers back fast.

HIGHER CONVERSION RATE

Users expect a smooth and enjoyable experience when they land on a website. A well-designed UX can help users easily navigate the website, find what they want, and complete their desired actions seamlessly. It is important to know your target customer, the value to you add to each customer segment, and how your UX caters to helping each potential customer navigate your website. A positive user experience can lead to higher user satisfaction and engagement, which in turn can increase the likelihood of conversions. Additionally, a good UX can build trust and credibility with users, which can be instrumental in converting them into loyal customers. On the other hand, poor UX can lead to frustration and dissatisfaction, leading to users abandoning the product or service. By focusing on UX design, used car dealerships can create a user-friendly environment that encourages users to act and boost conversion rates.

User experience (UX) is critical to your dealership’s success. It encompasses every aspect of a user’s interaction with a company, from the initial interaction to the final purchase. Dealerships focusing on improving conversion rates often focus on spending more money to increase the reach needed to achieve a rate of conversion. Rather than focusing on dictating outcomes, website UX can be the differentiating factor that increases sales and lead to traffic conversion ratios. It is an area often overlooked by dealerships, and for good reason. The technicalities involved with building a website for dealers are mind-numbing. However, the experience for your customer should be different from what is shown. Focusing on UX as a competitive advantage ensures your longevity in the used car space. n

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 Consumer Financial Protection Bureau, Federal Trade Commission, European Commission, Justice Department, Federal Communications Commission, other federal agencies, and the attorneys general from all 50 states and the District of Columbia. 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 June 27, the Consumer Financial Protection Bureau filed a consent order against payment processors ACI Worldwide Corp. and ACI Payments Inc. (collectively, “ACI”). According to the Bureau, ACI was a service provider to a large mortgage servicer, which was not part of the consent order. The consent order alleged that, on a single date in 2021, ACI erroneously initiated about 1.4 million unauthorized ACH withdrawals from borrowers’ bank accounts on behalf of the mortgage servicer, in violation of the Consumer Financial Protection Act and the Electronic Fund Transfer Act and its implementing Regulation E. The Bureau found that the incident occurred when ACI was conducting performance tests of its electronic payment platform. During these tests, ACI allegedly used

borrowers’ actual sensitive financial information that it had received from the mortgage servicer, instead of deidentified data, and then improperly sent large files with the sensitive financial information into the ACH network, causing erroneous bill payment orders to be sent to borrowers’ banks for processing. These actions resulted in debits totaling approximately $2.3 billion in mortgage payments from nearly 500,000 borrowers’ bank accounts without their knowledge or authorization. The Bureau found that these alleged unlawful transactions were a result of ACI’s failure to establish and enforce information security practices. To resolve the matter, ACI agreed to pay a $25 million penalty and to develop policies and procedures related to its information security practices and use of sensitive consumer financial information. In addition, the consent order prohibits the use of sensitive consumer financial information for software development or testing purposes, unless ACI documents a compelling business reason and obtains consumer consent. In what appears to be novel, the consent order also requires ACI to register with the Bureau’s portal for receiving and responding to consumer complaints and inquiries.

On June 29, the Federal Trade Commission adopted revised Guides Concerning the Use of Endorsements and Testimonials in Advertising. The guides advise businesses on what practices may be unfair or deceptive in violation of the FTC Act, and they were last revised in 2009. In May 2022, the FTC announced that it was seeking public comments on proposed updates to the guides to reflect the ways advertisers now reach consumers to promote products and services, including through social media and reviews. The final revised guides make a number of revisions, including: (1) articulating a new principle regarding procuring, suppressing, boosting, organizing, publishing, upvoting, downvoting, or editing consumer reviews so as to distort what consumers think of a product; (2) addressing incentivized

reviews, reviews by employees, and fake negative reviews of a competitor; (3) adding a definition of “clear and conspicuous” and saying that a platform’s built-in disclosure tool might not be an adequate disclosure; (4) changing the definition of “endorsements” to clarify the extent to which it includes fake reviews, virtual influencers, and tags in social media; (5) better explaining the potential liability of advertisers, endorsers, and intermediaries; and (6) highlighting that child-directed advertising is of special concern. The FTC also issued an updated version of a guidance document that answers frequently asked questions about the guides. Last revised in 2017, the new version includes 40 additional questions and updates dozens of other answers. It adds specific guidance for influencers on when and how to disclose material connections across different kinds of platforms, and it gives FTC staff’s views about brand monitoring of influencers and platform disclosure tools. The new version also includes more guidance relating to online reviews, addressing issues such as incentives and treatment of negative feedback.

On June 29, the Consumer Financial Protection Bureau issued its annual fair lending report describing the agency’s fair lending activities in enforcement and supervision, guidance and rulemaking, interagency coordination, and outreach and education for calendar year 2022.

On June 30, the Federal Trade Commission issued a proposed rule that would prohibit certain unfair or deceptive acts or practices involving consumer reviews and testimonials. The proposed rule would: (1) prohibit businesses from writing or selling consumer reviews or testimonials by someone who does not exist, who did not have experience with the product or service, or who misrepresented the person’s experiences. It also would prohibit businesses from procuring such reviews or disseminating such testimonials if the businesses knew or should have known

that they were fake or false; (2) prohibit businesses from using or repurposing a consumer review written for one product so that it appears to have been written for a substantially different product; (3) prohibit businesses from providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative; (4) prohibit a company’s officers and managers from writing reviews or testimonials of its products or services without clearly disclosing their relationships. It also would prohibit businesses from disseminating testimonials by insiders without clear disclosures of their relationships, and it would prohibit certain solicitations by officers or managers of reviews from company employees or their relatives, depending on whether the businesses knew or should have known of these relationships; (5) prohibit businesses from creating or controlling a website that claims to provide independent opinions about a category of products or services that includes its own products or services; (6) prohibit businesses from using unjustified legal threats, other intimidation, or false accusations to prevent or remove a negative consumer review. It also would bar a business from misrepresenting that the reviews on its website represent all reviews submitted when negative reviews have been suppressed; and (7) prohibit businesses from selling false indicators of social media influence, like fake followers or views. It also would bar anyone from buying such indicators to misrepresent their importance for a commercial purpose. Comments on the proposed rule are due within 60 days after the date of its publication in the Federal Register.

On July 17, Rohit Chopra, Director of the Consumer Financial Protection Bureau, and Didier Reynders, Commissioner for Justice and Consumer Protection of the European Commission, issued a joint statement announcing the start of an informal dialogue between the CFPB and the European Commission on issues related to consumer financial products and services, with the intention to meet at least once a year in the future. According to the joint statement, the dialogue will cover the following issues: (1) automated decision-making and processing of data

in financial services, including the use of artificial intelligence, and the related risks for consumers such as the lack of transparency, misuse of data, violation of financial privacy rights, discrimination, and exclusion; (2) new forms of credit such as “buy now, pay later” products and the related risks for consumers, including over-consumption and over-indebtedness;

(3) strategies to effectively prevent overindebtedness and to help over-indebted consumers repay their debts sustainably;

(4) digital transformation that ensures fair choice and access to financial services for consumers, including the unbanked, the underbanked, and consumers who want to protect their own data; and (5) implications for competition, privacy, security, and financial stability of Big Tech companies offering financial services, including payment services.

On July 18, the Federal Trade Commission, Justice Department, Federal Communications Commission, other federal agencies, and the attorneys general from all 50 states and the District of Columbia announced a joint enforcement initiative - “Operation Stop Scam Calls” - that targets entities, including lead generators and Voice over Internet Protocol service providers, that distribute or facilitate illegal telemarketing calls to U.S. consumers.

On July 26, the Consumer Financial Protection Bureau released its most recent Supervisory Highlights, which summarizes the agency’s findings of unfair, deceptive, and abusive acts or practices during supervisory examinations of institutions providing consumer financial products and services. The findings included in this report cover examinations in the areas of auto finance and servicing, consumer reporting, debt collection, deposits, fair lending, information technology, mortgage loan origination, mortgage loan servicing, payday lending, small dollar lending, and remittances that were completed from July 1, 2022, to March 31, 2023. The Bureau found, among other things, that certain institutions deceptively advertised the terms of vehicle financing by picturing vehicles that cost significantly more than the advertised financing could cover;

servicers charged and collected interest on amounts owed in vehicle retail installment sale contracts that were based on fraudulent representations by dealers that the vehicles had options and enhancements that they did not actually have (e.g., engaged in “powerbooking”); servicers failed to provide adequate notice that they would not debit the final payment on a vehicle financing contract and instead required the final payment to be made manually, resulting in late fees to consumers; and, in cases where vehicle financing contracts included crosscollateralization clauses, upon repossessing vehicles, servicers accelerated the amounts due on the vehicle finance contracts and also accelerated any other unrelated debts the consumers owed to the creditors, such as credit card debts, in order for the consumers to redeem the vehicles.

CASE(S) OF THE MONTH

Dealership that Provided Courtesy Vehicle to Customer While Repairing Customer’s Vehicle Was Entitled to Graves Amendment Protection When Courtesy Vehicle Was Involved in Accident: An individual brought his car to a dealership in New Jersey to be serviced. The dealership provided a courtesy vehicle that the customer could use while his vehicle was being serviced. The customer signed a “loaner car authorization form” and a “courtesy car agreement” that set forth, among other things, that he would return the courtesy vehicle within 24 hours after notification that repairs had been completed on his vehicle, he would be charged a daily rate if he failed to return the courtesy vehicle in a timely manner, he would be responsible for all third-party claims arising from his use of the courtesy vehicle, use of the courtesy vehicle was limited to operation within 100 miles of the dealership, and he was the only person authorized to operate the courtesy vehicle. The customer drove the courtesy vehicle to Boston, outside of the 100-mile limitation. While in Boston, he left the courtesy vehicle illegally parked with the key in the ignition and the engine running as he conducted an errand. His then wife, who did not have a driver’s license and was not authorized to drive the courtesy vehicle, remained in the vehicle. A parking enforcement officer asked the woman to move the vehicle. She moved into the driver’s seat and pressed a button that

caused the vehicle to roll forward through a red traffic light and strike another woman. The injured woman and her husband sued the dealership and the customer’s wife for negligence and the customer for negligent entrustment. The trial court granted summary judgment in favor of the dealership and the individual. The plaintiffs appealed. The plaintiffs argued that the dealership, as the owner of the courtesy vehicle at the time of the accident, was vicariously liable for the customer’s wife’s negligent conduct under Massachusetts law, G.L. c. 231, §85A. Section 85A sets forth a rebuttable presumption that the owner of a vehicle is vicariously liable for injuries caused by the driver of the vehicle. The Supreme Judicial Court of Massachusetts disagreed, concluding that the federal Graves Amendment preempted Section 85A. Graves Amendment protection extends to owners of vehicles that rent or lease vehicles, are in the business or trade of renting or leasing vehicles, and are not negligent or criminal in connection with the rental or lease. The plaintiffs contended that the Graves Amendment did not apply to the dealership’s courtesy vehicle program because it provided the vehicle to the customer merely as a courtesy, receiving no consideration for doing so, and therefore it did not “rent” or “lease” the courtesy

vehicle to the customer. The Massachusetts high court concluded that, even though the dealership did not charge the customer for the courtesy vehicle, it nonetheless received consideration for the vehicle in the form of acquiring the opportunity to perform the repair work on his vehicle and to be paid for that work. The high court also found that the dealership was in the business or trade of renting or leasing vehicles because it maintained approximately 125 vehicles in its “loaner car fleet,” it regularly provided loaner vehicles to customers as a courtesy when a customer’s vehicle was being serviced for more than three hours, and, at any given time, approximately 90-95% of those loaner vehicles are with customers. The high court then found that there was no negligence or criminal wrongdoing on the part of the dealership. Accordingly, the high court affirmed the trial court’s grant of summary judgment in favor of the dealership. However, the high court reversed the trial court’s grant of summary judgment in favor of the customer on the negligent entrustment claim. The high court noted that, in order to prevail on such a claim, the plaintiff must show, among other things, that the defendant owned or controlled the vehicle in question and that the defendant gave the driver permission to operate the vehicle. The high court had previously

described the requisite “permission” as “knowingly allowing an incompetent operator to drive the defendant’s vehicle.”

The high court concluded that because the customer left the courtesy vehicle running with the key in the ignition while it was illegally parked and with his wife in the vehicle, a rational factfinder could reasonably conclude that these actions constituted implicit permission or knowing consent for his wife to move the illegally parked vehicle if needed. See Garcia v. Steele, 2023 Mass. LEXIS 248 (Mass. June 27, 2023).

COMPLIANCE TIP

Did you catch the reference in the CFPB’s Supervisory Highlights above to “powerbooking” – that some dealers fraudulently represented that vehicles had options and enhancements that they didn’t actually have and that certain auto finance servicers charged and collected interest on amounts owed in vehicle retail installment sale contracts (RISCs) that were based on those fraudulent representations by dealers? The CFPB found that when the servicers identified these discrepancies, they didn’t reduce the amount that consumers owed on the contracts and continued to charge interest tied to the financing of those nonexistent options. The CFPB found this practice to be an unfair or abusive act or practice. This new expectation by the CFPB could have a major impact on auto finance companies and banks that purchase RISCs. Consequently, if you sell your RISCs to these entities, you can likely expect increased scrutiny from them as a result of this recent development. You should be prepared to prove that the vehicle financed by the RISC actually has all of the options and enhancements that you represent it has.

Stay legal, and we’ll see you next month.

Eric (ejohnson@hudco.com) is a Partner in the law firm of Hudson Cook, LLP, Editor in Chief of CounselorLibrary.com’s Spot Delivery®, a monthly legal newsletter for auto dealers, and a contributing author to the F&I Legal Desk Book. For information, visit www. counselorlibrary.com. ©CounselorLibrary. com 2023, all rights reserved. Single publication rights only to the Association. HC# 4861-1790-4755.

More Consumers Turned Down for Auto Loans

By Auto Dealer Today Staff

Part of the issue is that lenders want to hold on to more cash after the spring bank failures in case of a withdrawals rush.

The combination of high inflation and high interest rates has caught up with the typical American consumer.

In June, the auto loan rejection rate hit more than 14%, a 5 percentage point jump from the last reading in February, according to the Federal Reserve Bank of New York, surpassing the application rate for the first time and reaching its highest point since the Fed started tracking it in 2013.

The reserve bank said it observed the phenomenon across various loan types, not just auto loans, as far back as April, when its data showed about a quarter of banks indicated less willingness to offer consumer installment loans than when the year started.

In addition to the reality of higher consumer debt due to high inflation and high interest rates meant to reign it in, lenders want to hold on to more cash after the spring bank failures in case of a withdrawals rush.

Lenders, with less cash for loans, may require higher borrower credit scores or higher interest rates on their loans. n

With a myriad of tools to help independent dealers, you’ll find a store for discounted forms and supplies, auction and directories, plus a list of upcoming education classes and events.

Check it out at mariada.org

AUCTION DIRECTORY

PENNSYLVANIA

ADESA MERCER

758 Franklin Road, Mercer, PA 16137 724.662.4500 / Fax: 724.662.8716

Friday 9:00 AM

Office M-W: 9-4:00; TH: 9-5:00; F: 8-5:00 adesa.com

ADESA PA

I-83 Ex. 28 (Old Ex. 12), 30 Industrial Rd. York, PA 17406

717.266.6611 / Fax: 717.266.7650

Wednesdays 9:00 AM; INOPS 8:30 AM

Specialty Sale every 4th Wed 8:30 AM adesa.com

ADESA PITTSBURGH

378 Hunker Waltz Mill Rd. New Stanton, PA 15672

724.925.4700 / Fax: 724.925.4701

Tuesday 9:00 AM pittautoauction.com

AMERICA'S AA - HARRISBURG

1100 S. York St., Mechanicsburg, PA 17055 717.697.2222 / Fax: 717.697.2234

Thursday 8:45 AM harrisburgautoauction.com

AMERICA’S AA - LANCASTER

1040 Commercial Ave., P.O. Box 406 East Petersburg, PA 17520 717.569.5220 / Fax: 717.569.3109

Wednesday 9:00 AM; INOPS 8:30 AM americasautoauction.com

AMERICA’S AA - PITTSBURGH

55 E. Buffalo Church Rd. Washington, PA 15301 724.225.1777 / Fax: 724.225.7223

Thursday 12:30 PM americasautoauction.com

America’s AA – Erie

P.O. Box 317, 12141 Route 6 West Corry, PA 16407 814.664.7721 / Fax: 814.664.7724

Thursday 10:00 AM

3 Lanes Dealer Consign, Fleet/Lease americaserie.com

BLAISE ALEXANDER AUCTION

350 Fairfield Rd., Montoursville, PA 570.435.8391

Mondays: 10:45am blaisealexanderauction.com

BLOOMSBURG AUTO AUCTION

25 Ridge Road, Bloomsburg, PA 17815 570.784.2306

Wednesday 10:00 AM bloomaa.com

CAPITAL AUTO AUCTION

5135 Bleigh Ave., Philadelphia, PA 19136 215.332.2515

Monday thru Friday 9:00 AM - 4:30 PM capitalautoauction.com

CENTRAL PENNSYLVANIA AA

Exit 178 of I-80, Lock Haven, PA 17745 800.248.8026 / Fax: 570.726.7841

Thursday 9:45 AM

Office: MTF 8-5:30 W-Th 8-6:00 cpaautoauction.com

GARDEN SPOT AUTO AUCTION

Robert Rd. & Apple St., Ephrata, PA 17522 717.738.7900 / Fax: 717.738.7930

Tuesday 10:00 AM gardenspotautoauction.com

GREATER ERIE AUTO AUCTION

7700 Avonia Road, (Exit 16 of I-90 & PA Route 98) Fairview, PA 16415-0916 814.474.3900 / 877.474.GEAA

Fax: 814.474.4969

Tuesday 1:45 PM greater-erie.com

LEHIGH VALLEY AUTO AUCTION

3880 Lehigh St., Whitehall, PA 18052 610.435.5554 / Fax: 610.435.5557

Wednesday 5:00 PM lehighvalleyautoauction.com

MANHEIM KEYSTONE

488 Firehouse Road, Grantville PA 17028 717.469.7900 / Fax: 717.469.2842

Every Monday 11:00 AM manheim.com

MANHEIM PENNSYLVANIA

1190 Lancaster Rd., Manheim, PA 17545 717.665.3571 / Fax: 717.665.9265

Exotic Highline Sales every other

Thursday - 9:00 AM

Every Friday Sale 8:30 AM manheim.com

MANHEIM PHILADELPHIA

2280 Bethlehem Pike, Hatfield, PA 19440 215.822.1935 / Fax: 215.822.8140

Tuesday 9:30 AM

TRA Sale - Tuesday 12:30 PM

Office: M-Th 8:30-5:00; F 8:30-1:00 manheim.com

MANHEIM PITTSBURGH AA

21095 Route 19, Cranberry Twp., PA 16066 724.452.5555 / Fax: 724.452.1310

Wednesday 9:00 AM manheim.com

NORTH EAST PENNSYLVANIA AA

860 N. Keyser Ave., Scranton, PA 18504

570.207.CARS / Fax: 570.207.1860

Tuesday 10:00 AM

nepautoauction.com

PERRYOPOLIS AUTO AUCTION

Route 51 S. Perryopolis, PA 15473

724.736.4445 / Fax: 724.736.0466

Friday 9:45 AM

perryautoauction.com

MARYLAND

BSC AMERICA/BEL AIR AUTO AUCTION

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

Carriage Trade Public Auto Auction 1200 W Ridge Pike, Conshohocken, PA 19428 800.441.6717 / Fax: 610.834.8274

Monday Sale Day 3:00 PM

carriagetrade.com

ADVANCED ISSUING AGENT TRAINING COURSES

IN-PERSON COURSES

The in-person training courses will be provided by Pennsylvania Association of Notaries, a PennDOT approved instructor. All classes begin at 9:00AM. No refunds and may not be transferred to another class date.

Update: House Bill 540

BY TYLER BURKE, ASSOCIATE, MILLIRON & GOODMAN GOVERNMENT RELATIONS

On June 29th, the House Transportation Committee held a voting meeting to consider multiple pieces of legislation, including House Bill 540. During the meeting, the committee amended House Bill 540. The amendment clarified the process by which an individual could have their license recalled. Following the adoption of the amendment House Bill 540 was reported by the committee.

Members: $125; Non-members: $150

Thursday, September 21

Deadline to register: September 6

MANHEIM PHILADELPHIA AA

2280 Bethlehem Pike Hatfield, PA 19440

ONLINE COURSES

The online training courses will be provided by Pennsylvania Association of Notaries, a PennDOT approved instructor.

Members/Nonmembers: $169

House Bill 540 accomplishes this goal by amending Title 75 to add a section that if an individual had their license recalled by PennDOT and provides a copy of the recall notice to the lessor. By sending the lessor a copy of the recall notice the lessee is not liable for any early termination fees once the vehicle has been returned to the lessor.

House Bill 540 aims to help those who are found medically unfit to operate a vehicle. For many in Pennsylvania, a vehicle is a necessary expense to get to work and vital appointments. According to the co-sponsorship memo, being found medically unfit to drive is a life-changing situation that should not result in individuals being penalized by early termination fees when they are medically unable to use the vehicle.

It is important to note that only individuals who have had their license medically recalled are eligible for this protection. These protections will not extend to others who have had their licenses suspended for non-medical reasons. In addition, if an individual recovers they can provide evidence to PennDOT to have their license reinstated.

This legislation is currently in the House Rules Committee for consideration. Once House Bill 540 receives consideration in the Rules Committee, it will then be sent to the full House of Representative for consideration.

The Pennsylvania House and Senate are scheduled to return to Harrisburg in midSeptember. n

The purpose of House Bill 540 is to help those individuals who have been diagnosed as medically unfit to drive by prohibiting early termination fees and other penalties.

Please be sure to visit CPR for Cars’ booth at the 2023 MidAtlantic IADA Convention in Atlantic City, NJ, September 24-26th!

Helping Your Customers Make the Leap to EV

New technology brings with it new thinking.

BY THOMAS F. LOVETERE, PRESIDENT AND CEO, CPR FOR CARS, LLC | B2B.CPRFORCARS.COM

While our CPR for Cars™ Program is seeing the upward trend in consumers acceptance of electric vehicles (EVs)., there is still customer resistance to the added expense, even with the cost of EVs coming down steadily over the last few years. A different approach is needed to make customers more comfortable as they move upwards in the vehicle price range.

While we must not overlook the environmental benefits of EVs in an era where environmental consciousness is increasing, many consumers want to prioritize sustainable choices, but are not always willing to invest more for the eco-friendly options.

In combustion engine cars, the benefits of spending more are tangible. More powerful engines drastically alter the driving characteristics, more equipment and safety features and other benefits are equally visible. However, on the surface this does not always apply to EVs, in fact the things that attract consumers to electric vehicles are often

the things that make the upsell such a challenge.

In an EV line up, the more expensive vehicles usually do offer more power and speed, but because headline acceleration figures are so impressive across the board for electric vehicles, it can often be considered a much less important priority, as acceleration gains are often barely noticeable to many drivers.

It is a similar story with the technology we interact with within the vehicles, large touch screens and relatively minimal interiors on most EVs means that models are superficially similar, and consumers don’t always see the benefits of moving up to a higher price range, or even to a more expensive model within a line. With the reduced space required for drivetrains, interior space in EVs is often far superior to combustion engine vehicles that are one or even two classes larger, but again, the perceived benefit can be lost on consumers considering the switch to EVs

as this amenity is common across different makers and models.

The benefits are found in the ownership experience.

While some differences are less tangible than consumers are used to, there are many benefits found within the ownership experience itself, so it is critical to emphasize this, as well as the long-term benefits, cost savings, and positive environmental impact of electric vehicles (EVs). Approach potential buyers with empathy and understanding, acknowledging their economic concerns and uncertainties. By addressing these concerns head-on and highlighting the long-term benefits and savings, you can make a compelling case for upgrading to more expensive

electric vehicles even in an uncertain economy. Here are some strategies to consider:

1Provide test drives and demonstrations: Allow potential buyers to experience the benefits of electric vehicles firsthand by offering test drives and demonstrations. This can help dispel any doubts or misconceptions they may have and allow them to appreciate the performance, quietness, and smoothness of electric vehicles.

2Showcase improved range: For the electric vehicle market, the biggest Achilles heel has been the need to charge on the go. This dictates the entire journey. EV range is getting (Continued on next page)

The key is in changing the way we approach the selling process to uncover the hidden benefits and value for our customers.

(Continued from previous page) longer by the model year, and longer range can be the difference between being able to drive to their destination and back without stopping.

6Emphasize reduced maintenance requirements: EVs have fewer moving parts and don't require oil changes or other maintenance tasks associated with internal combustion engines.

But the most important strategy is this (though I may be biased):

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Offer your customers the assurance of a CPR for Cars™

3

Educate about charging technology and infrastructure: Address concerns about charging by showing them that not only can EVs go further between charges than ever before, but that charging takes less time too. The network of charging stations is constantly growing as well as the game changing convenience of charging at home.

7Discuss resale value: Although EVs may have a higher upfront cost, their resale value tends to be better compared to traditional vehicles. Explain that investing in an electric vehicle can be seen as a long-term investment, as the resale value may hold up better over time.

Membership: There is no easier way to help customers drive off your lot in a new or preowned EV than with $7,500 of Car Payment Reimbursement Protection and more! To learn all about the program, and how you can enroll as a CPR for Cars™ reseller for free, visit us at b2b.cprforcars. com

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Leverage social proof and customer testimonials: Share success stories and positive experiences from existing electric vehicle owners. Hearing from satisfied customers who have made the switch can help alleviate concerns and build trust among potential buyers.

8 Showcase government incentives: Research and inform potential buyers about any government incentives, grants, or tax credits available for purchasing electric vehicles. These incentives can significantly reduce the upfront cost of the vehicle and provide additional financial benefits.

Great News! We will see you all at the 2023 MIDATLANTIC IADA Convention & Expo in Atlantic City, September 24th26th. Make sure to stop by our CPR for Cars™ booth and say hello! n

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Highlight lower operational costs: Electric vehicles have lower fuel costs as they rely on electricity, which is generally cheaper than gasoline. Educate buyers about the potential savings in fuel expenses, especially considering rising gasoline prices in uncertain economic times.

9Offer flexible financing options: In an uncertain economy, people may be hesitant to make large upfront investments. Provide attractive financing options such as low-interest rates, longer repayment terms, or leasing options to make the transition to an electric vehicle more affordable and manageable.

DRIVING SUCCESS TOGETHER: 8 Ways Your Entire Dealership Staff Can Turbocharge Social Media Presence

BY PROFESSIONAL MOJO

In today's digital era, an independent car dealership's online presence can make or break its success. With social media becoming a driving force in consumer behavior, businesses need to adapt and embrace this powerful tool. Beyond the marketing and sales teams, the dealership's entire staff can play a pivotal role in turbocharging its social media presence. In this article, we will explore innovative ways to involve all dealership employees in the social media journey, elevating the dealership's brand, building trust, and driving customer engagement to new heights.

1Social Media Training for All

The first step to harnessing the collective potential of your dealership staff is to provide comprehensive social media training. Educate your team about the dealership's social media strategy, the brand voice, and the dos and don'ts of online engagement. A united understanding will ensure consistent messaging and a cohesive online image.

2Empowering Employee Advocacy

Encourage your staff to become social media ambassadors for the dealership. Set up an employee advocacy program that rewards and recognizes employees for their active participation in social media efforts. From sharing posts and leaving positive reviews to engaging with customers online, employee advocacy will amplify your dealership's reach and enhance its online visibility.

3Showcasing the Human Side

A dealership is more than just a business; it is a team of passionate individuals with expertise and personalities. Showcase your staff on social media by creating engaging content where they share their experiences, knowledge, and enthusiasm for automobiles. Humanizing the dealership will forge genuine connections with potential customers.

4Unleashing User-Generated Content (UGC)

Content created by real customers and employees carries an authentic touch that resonates with audiences. Encourage your staff and customers to generate content such as photos of happy customers with their new vehicles, behind-the-scenes moments, and staff interactions. Share this UGC on your social media platforms to add credibility and diversity to your content mix.

5Live Q&A Sessions: Real-time Interactions

Host live Q&A sessions on your social media platforms, where customers can ask questions about the dealership, the car-buying process, or specific vehicle models. Involve different team members in these sessions to showcase their expertise and customer-centric approach. Real-time interactions will foster trust and engagement.

6The Power of Employee Social Media Takeovers

Inject freshness into your social media content by periodically allowing different staff members to take over the dealership's social media accounts for a day. During their takeover, they can provide insights into their roles, share daily activities, and document interactions with customers. Employee social media takeovers breathe life into your content and attract curious followers.

7Igniting Excitement with Social Media Contests

Organize contests or giveaways on your social media platforms and get your entire staff involved in promoting and managing the events. Encourage employees to share the contest details on their personal social media profiles to attract more participants and increase the overall reach of your dealership's social media campaigns.

8Monitoring and Engaging: A Team Effort

Assign employees from different departments to monitor your dealership's social media channels for comments, messages, and reviews. Prompt and personalized responses to customer inquiries and feedback demonstrate your dealership's commitment to excellent customer service. Engaging with customers as a team will foster strong relationships and loyalty.

In today's hyper-connected world, the power of social media cannot be underestimated, especially for independent car dealerships. By involving the entire dealership staff in your social media efforts, you unlock a wellspring of opportunities to expand your reach, engage your audience, and build lasting customer relationships. From comprehensive training to employee advocacy, UGC, live interactions, and social media takeovers, the possibilities are boundless. Embrace the potential of your united team and drive success together on the digital highway. Remember, it's not just a single driver behind the wheel; it's a whole team steering your dealership towards social media excellence!