Issuu

The official publication of the Washington State Independent Auto Dealers Association

July | August 2019

Education Fairs! Am I Covered For That? Why You Need a CRM

PLUS...

Five Sales Fundamentals for Dealership Success

Outstanding Auctions. Signature Events. Auburn, WA

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FRIDAY • AUGUST 2 • 9:00 AM

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All information subject to change without notice

July|August 2019

The official magazine of the

WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com WSIADA.COM AJ Hamedian, Board President Excellent Choice Auto Sales, LLC aHamedian@yahoo.com

Randy Fletcher, President Emeritus

In-N-Out Auto Sales | inandoutwa@gmail.com

Emil Scarsella, Board Treasurer

Contents

Town & Country Auto Sales | E.Scarsella@hotmail.com

J.T. Curry, Board President Emeritus

Motors Northwest | JT_Curry@motorsnorthwest.com

Ken Williamson, Board President Emeritus John’s Auto Mart, LLC | JohnsAutoMart@msn.com

Andrew Drager, Chapter President – North Sound Drager’s International, Inc. | Andrew_Drager@mac.com

Butch Lindstrom, Chapter President – Tri Cities All Star Motors | julie@all-starmotors.com

John (Buck) Tinsley - Chapter President – Vancouver Buck’s Family Auto Brokers | TakeOnPayment@gmail.com

2 | Membership Benefits 4 | Events Calendar 5 | Executive Director’s Message 7 | Dealer Insurance: Am I Covered For That?

Vacancy - Board Secretary Vacancy - Board Vice President Vacancy - Chapter President – North Cascade Vacancy - Chapter President – South Sound Vacancy - Chapter President – Yakima WSIADA STAFF Todd C. Elliott, Executive Director Colette Eilers, Receivables/Payables Rick Olson, Education Manager Jason Ludwig, Marketing Coordinator Mila Froman, Membership Manager Michael McGaughy, Spokane Auctions

PUBLISHER

MEMBER

the Front Row | wsiada.com | July/August 2019 |

Washington State Independent Auto Dealers Association

Dealer Membership Beneﬁts Protect the interests of your dealership AND support the auto industry in Washington State!

ADVOCACY ❏

Dealer Advocate Line*

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Legal Support through WSIADA partner law ﬁrm

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Industry protection by WSIADA’s lobbyist

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Exclusive Legislative updates

EDUCATION ❏

Continuing Education & Sales Training

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Compliance Training

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Dealer Productivity Training

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Discounted attendance at annual WSIADA Education Fair East or West

SPECIAL FEATURES ❏

NIADA membership included

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Subscription to the Front Row magazine included

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Membership may be billed montlhy or annually**

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10% off Products available through WSIADA stores and wsiada.com

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One-stop shopping for everything you need to manage and promote your dealership, including marketing materials, signage, forms, stationery and much more.

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(9am to 1pm) TUE JUL 30. . . . . . . . . . . . . . . . . . . . . . . . Auburn THU AUG 01 . . . . . . . . . . . . . . . . . . . . . . Auburn THU SEP 05 . . . . . . . . . . . . . . . . . . . . . . . Auburn

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Doubtree by Hilton 322 N Spokane Falls Ct., Spokane

West | THU AUG 15, 2019 LeMayâ€”Americaâ€™s Car Museum 2702 East D Street, Tacoma

Spokane

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Tri-Cities

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North Sound

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4 | the Front Row | wsiada.com | July/August 2019

EXECUTIVE DIRECTOR’S MESSAGE

Members Make the Club…Association

planned to lead into this article with a final push to get everyone enrolled in either of the Education Fairs.

However, this weekend I received my issue of the Star Magazine. Star is the magazine published by the Mercedes Benz of America Club. Gene Jurick the Club President writes a column in every issue, much like what I do here in the Front Row. Gene writes from a Club perspective, but he hit the nail right on the head this issue for Clubs AND Associations. Indulge me while I quote some of the highlights from Gene’s article.

First the title: Members Make the Club. True for Mercedes Benz, true for WSIADA. Gene continues, “Adding new members is another area where our current member base can significantly affect member recruitment”. True for WSIADA too! “Sadly, many Mercedes-Benz owners don’t even know there is a Mercedes-Benz Club of America.” Unfortunately, true again for WSIADA. “This is a problem that local sections can be instrumental in solving.” This is where the WSIADA Chapter Presidents can be instrumental. “Having said that, there is another benefit of which many of our active members are unaware: When members refer a new member, a free month of Membership is added to their membership.” The WSIADA benefit is a $75 credit toward your CE Tuition. One final point: WSIADA Membership can save your dealership a fortune if you regularly read the Front Row, participate in Chapter meetings and other events and just keep your dealership current on the rules and regulations the pervade our industry. Some examples: a typical Correction Notice from the Department of Licensing can cost $1000 and put your dealership on the “naughty list” …forever. Missing one document on an exempt out of state sale can cost more than 10% of the value of the vehicle, that’s $1200 on that $12,000 Camry. Finally, a simple inquiry from the Attorney General’s office can cost $1000, much more if the AG determines that your dealership is seriously in error. Now, it’s that time of the year again, you know, picnics, camping, boating, sunscreen and WSIADA Education Fairs. Yes, that’s fairs, plural. Unlike many state associations with one big annual convention we have decided to run to Education Fairs in Spokane (July 23) and Tacoma (August 15). You have seen a steady drum beat of announcements from the Association, unless you just returned from an interstellar journey. By the time you get the paper version of the magazine, we will have concluded the Spokane event. If you missed, you can still sign up for Tacoma.

We have changed the venue for the Spokane event to the Doubletree convention center Downtown. The new venue is a bit further from DAA and the everpopular Quest Casino. However, the new venue gives us more room for the vendor fair, better AV support and comfortable setting for the presentations. As with the last several events, the Department of Revenue the Department of Licensing are joining for both events. Unfortunately, the Attorney General’s office will only be with us in Tacoma. Watch your email and WSIADA.com and the WSIADA mobile app for more details on the agenda. Your dealership gets 5 hours of continuing education for $25 if you are a WSIADA member. Even if you have completed the 5 hours of mandatory education the day is still worth it give the range of important information for your dealership. Keep in mind that this event is NOT limited to Dealer Principals, even though their participation remains important. We have included the last two articles of Zach Klempf’s four-article series. Zach ties it all together in his presentations in Spokane and Tacoma. Come to greet familiar faces from AutoZone, Shepard and Shepard, DAA, Manheim and Spireon and new faces from Farmers Insurance and several others. We continue to break records with enrollment in our New Dealer Education. Enrollments have been so high that we have shifted most of our Auburn classes to the Best Western Suites on the west side of the railroad tracks in Auburn. Stay cool this summer, even if it IS the Pacific Northwest. Enjoy summer vacation and we will see you at the Fair(s)!

Todd C. Elliott, WSIADA the Front Row | wsiada.com | July/August 2019 |

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6 | the Front Row | wsiada.com | May/June 2019

Am I Covered For That?

INSURANCE

By Todd Shepard, Owner, Shepard & Shephard Insurance

s insurance professionals we receive our share of calls that begin with “Am I covered for….?” The conversation usually continues with a description of a unique circumstance and a discussion of specific insurance coverages and how they may apply. These conversations often lead to a review of additional options available. Additional options??? Yes, you read that correctly. You see, not all policies are created equal and optional coverages that are a good fit for one dealer may not be necessary for another. It comes down to determining your specific risk characteristics (your business model and how you operate) and creating a package that addresses these risks. An insurance professional experienced in insuring auto dealers can help you assess your specific insurance needs. In this article I’ll break down some of the more common and often overlooked optional coverages available along with scenarios in which they apply. If your dealership is exposed to any of these activities ask your insurance professional if your policy offers these optional coverages.

Garagekeepers Liability This may be confusing because many dealers (and less experienced agents!) refer to a dealer/garage policy as “Garagekeepers” when in fact this coverage is an option and unless it’s been added to your policy you don’t have it. In a nutshell Garagekeepers provides Physical

Damage coverage to another person’s auto in your care, custody, and control. An example is if you are working on a customer’s auto and it gets damaged. Common for a service shops, but what about for dealers? Even if you do not perform service for the public you may still be exposed in the following ways: 1) Test driving a customer’s trade-in. 2) Test driving a vehicle at the dealer auction (that car belongs to someone else) 3) Vehicle consignments (note that not all

sell a vehicle and later find out the purchaser used a false identity or wrote a check on a fake or closed account. In this case you were ‘tricked or schemed’ out of the vehicle and the only way you’d be covered for the loss is with the False Pretense option.

Fencing, Signs, Light Poles

Garagekeepers forms allow this practice so check with your agent before doing consignments 4) acting as a Registered Importer.

False Pretense Let’s say you or your salesperson allows a customer to take an unaccompanied test drive and he drives off with your car…forever. Did you know that because you gave the customer the keys and permission this is not considered auto theft? It is a form of conversion and is not covered on any policy unless you have the option of False Pretense. Another example is if you

When you insure your home it usually covers your fence against damage. This is not always the case on a commercial building. If a drunk driver smashes into your fence in the middle of the night and has no insurance (common) you may be in for a disappointment to learn that your building coverage only covers the building and you are stuck fixing that fence out of pocket! Most policy underwriters require the desire for coverage to Fences, Unattached Signs, and Light poles be disclosed and rated for up front. Make sure to inform your agent if you have these exposures so the proper forms requesting coverage can be filed before there’s an issue.

Employment Practices Liability Insurance (EPLI) Our lawyer friends love to file lawsuits on behalf of disgruntled employees. Costly lawsuits for harassment, discrimination, and wrongful terminations are becoming more and more common. If you have employees you are exposed. Workplace joking or teasing of a sexual or off-color nature add to this CONTINUED NEXT PAGE the Front Row | wsiada.com | July/August 2019 |

CONTINUED FROM PAGE 7

exposure. A proper EPLI policy will provide legal defense and coverage for these instances.

Errors & Omissions (E&O) Coverage Auto dealers have the responsibility to protect the assets of the consumer through accurate paperwork. If you, your salesperson, or finance manager makes an error or omits an important document regarding an odometer reading, known prior damage, causes a titling error, or an incorrectly completed financing form and customer files a lawsuit you could be on the hook to purchase a vehicle back from the customer for the full amount of their investment including repairs, interest, and legal fees. E&O policies provide legal defense and afford the coverage necessary. It happens more often than you may think. Other optional coverages such as Fire Legal Liability, host liquor liability, personal & advertising injury, limited worldwide liability, cyber liability, contract driver coverage, and more are also available and can be covered more in depth in future articles.

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8 | the Front Row | wsiada.com | July/August 2019

Itâ€™s understandable as a small business owner to want to keep your fixed expenses such as insurance as low as possible. The good news is these optional coverages are surprisingly affordable. If your dealership has one or more of these exposures do yourself and your business a favor and contact your insurance professional to ask about availability on your policy. Even if you never have to use them, I guarantee youâ€™ll sleep better. Todd Shepard is the founder of Shepard & Shepard Dealer Insurance and author of Insuring Your Dealership-what every used car dealer should know. For a complimentary copy or no-obligation policy review visit shepquote.com or call 855-396-0488.

SALES MANAGEMENT

Fundamentals of Sales Success for Independent Dealerships

ByZach Klempf | CEO/Founder, Selly Automotive

hat keeps you up at night about your business?

If you are like most independent dealership owners, you have one thing on your mind: How do I sell more vehicles? It is a simple question with a complicated answer. Which tactics will have the most significant impact on your sales? Choosing the wrong ones could cost you valuable time and money you can’t afford to lose. Here is what I recommend to dealers who ask me about increasing sales: Start with the fundamentals. You could waste years of your life trying different tricks and tips, but if you don’t have the fundamentals in place, you will not see the results you want. The fundamentals of automotive sales success boil down to just a few key strategies:

Identify Your Niche

Dealerships used to be the first stop in the car-buying journey. Customers would visit a lot to explore their options and learn what was available. After visiting numerous dealerships, they would narrow down their preferences and make a decision.

Today, the internet has flipped the car-buying journey on its head. Instead of visiting dealerships, customers first conduct research online. Once they have narrowed down their choices, they will visit the dealer and complete the sale. This is where your niche plays a role.

If most of the vehicles you sell are under $10,000, then focus on lowcost vehicles exclusively. By focusing on a profitable niche, dealers can attract customers when they are ready to make a purchase. You can stand out by being the best dealership in that niche, something far easier to accomplish than being the biggest or cheapest.

Having a niche helps you stand out at the most critical moment: When customers are ready to make a purchase. According to NADA, the average car buyer visits only 1.2 dealerships before making a sale. If you can convince a customer to visit your dealership, you have an excellent chance to sell a vehicle.

There is a basic tenet of business strategy that says if you can’t be the biggest or the cheapest, you have to choose a focus– also called a niche. Niches work because once a customer has narrowed down their interests, they want options. If someone decides they want a Toyota Tundra pickup truck, they will choose a visit a used truck dealership with 12 Tundras over a general used car lot with just a few. It’s best to base your niche on a market segment where you already perform well. If trucks and SUVs are your most profitable segment, then get rid of the coupes and sedans.

Treat Your Website Like a Digital Showroom

According to Deloitte, carbuyers spend an average of 10 hours doing research online before even stepping foot onto a dealership lot. That means your website is your first impression with a potential customer. If you don’t make a good one, you could lose a sale forever. Most dealers put a lot of effort into their physical showrooms, but spend a fraction of that time on their website. Because of the way people buy cars today, this mistake could be deadly. If your website is ugly, confusing, or just plain generic, you will have a hard time attracting customers to your dealership. That’s why building and maintaining a strong online presence is just as important as maintaining your dealership lot’s physical presence.

the Front Row | wsiada.com | July/August 2019 |

All outstanding dealership websites have the same core traits:

conduct their own research online before talking with you.

❏❏ They are easy to navigate

What does this mean for your dealership? When a customer does fill out an online form, they are serious about buying. What happens next in the customer experience is critical to closing the sale.

❏❏ They are responsive (i.e., work on mobile) and search engine optimized

them– from their occupation to vehicle preferences– and you will look more conscientious and personable in the process.

❏❏ Video Follow-Ups. If you really want to go above and beyond to wow your customers, try sending ❏❏ They feature professional a personalized video follow-up photography and comprehensive to each internet lead. This tactic When a prospect sends you a listings takes a little more time, but message or fills out an online lead imagine the impression it makes ❏❏ They make financing options form, they are testing you. They want on a customer. Not only do they clear and easy to understand to see if you are going to take care get a follow-up response, but a of them if they become a customer. ❏❏ They highlight what makes the completely customized, face-toThis is a test you cannot fail, or you will dealership unique (i.e. why your face video message. never see that prospect again. store) Video messages have proven to An incredible customer experience Highlighting the unique aspects be highly effective. According to is responsive and personalized. Here of your dealership is especially VidYard, companies saw a 500% are three ways to accomplish both: important for standing out from increase in email conversions when the competition. This is where ❏❏ Follow up fast. When a customer they included a personalized video. having a niche is vital. Your website contacts your dealership, they VidYard is a great tool for should speak directly to your target are ready to make a purchase. customer, whether you exclusively Being the first dealership to follow personalized messages. Another option is Bomb Bomb, which is more sell trucks, imports, or vehicles under up with a customer could be the $10,000. Your website should also deciding factor in making a sale. affordable but with fewer bells and whistles. advertise services or features that are attractive to your customer niche, like ❏❏ This doesn’t mean you have to constantly watch your inbox Be Data-Driven no credit loan approvals or bilingual and drop everything to respond. sales associates. It’s no secret that new car In fact, the best dealerships dealerships have more money Dealerships who spend time on their automate their follow-ups using to blow than independents. This fact “digital showroom” are going to see a CRM. This automated reply will makes it all the more important for more customers walking into their show the customer you are on small and mid-sized dealerships make physical showroom. your A-game and will take care data-driven decisions. of them. Create an incredible Dealerships waste a lot of money on ❏❏ Understand Your Customer. customer experience marketing channels that simply don’t CRMs not only help dealerships work. Whether it’s lead providers– like Car-buyers today shop follow up fast, but they also TrueCar– or social media ads, dealers differently than those of the past. keep customer information need to know where their sales are Today’s online shopper does not organized and at your coming from and optimize those like interacting with salespeople or salespeople’s fingertips. You channels. company representatives until they will blow customers away with absolutely have to. They would rather There are two steps to measuring the what you “remember” about ROI of your marketing channels:

Annual Meeting August 15, 2019 At Education Fair West | Tacoma @ LeMay, America's Auto Museum

10 | the Front Row | wsiada.com | July/August 2019

❏❏ Track your lead sources. The first step is to know where your deals are coming from. Some CRM tools offer features that let you track the conversion of each lead source. ❏❏ Measure the effectiveness of each source. Once you start tracking your leads, you can then measure the ROI of each source. Valuable metrics to track include cost per lead and most importantly, cost per sale. With this information in hand, you will be able to cut the least effective channels and funnel that money into your most effective channels.

Stay Compliant

This final point may seem obvious, but it is amazing how many dealerships risk noncompliance every day. For a small dealership, facing litigation could be a death sentence. The smaller you are, the more important it is to make sure everything you do is up to code. Customer communication is where many dealerships get into trouble. New TCPA compliance guidelines are cracking down on spam from businesses, and this includes text messages. Here is the definition of spam according to the TCPA guidelines: The term “unsolicited advertisement” means any material advertising the commercial availability or quality of any property, goods, or services which is transmitted to any person without that person’s prior express invitation or permission, in writing or otherwise. As a dealership, if you don’t get expressed consent from a customer to text them, you

risk violating TCPA guidelines. Moreover, you must also give customers an “opt-out” choice so they can stop receiving your messages at any time.

Whether you’re a one-man show or a team of 50, a CRM will help you nail the fundamentals of sales success and take your dealership to new heights.

Maintaining compliance is difficult to do on your own. Dealerships should utilize an automotive CRM to formalize communication with customers. This also protects your dealership internally. If a salesperson is fired, there is no way for them to leave with important customer data.

Seeing Results with an Automotive CRM Improving sales starts with perfecting the fundamentals. As you might have noticed, many of the strategies described above require new tools, specifically an automotive CRM. The CRM is your hub for lead management and customer service. It will also help you stay compliant and provide you with data to make better marketing decisions.

WSIADA EDUCATION FAIR WEST

AUGUST 15, 2019

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the Front Row | wsiada.com | July/August 2019 |

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Mike McGaughy Note from the editor:

ith mixed feelings I am pleased to announce that Mike McGaughy will be retiring from WSIADA after 15 year managing our DAA Northwest store.

Washington State Independent Auto Dealers Association

WSIADA was actually Mike’s 3rd career. Mike worked for DAA for almost 8 year after a distinguished career in the US Air Force. As Mike puts it, his job as Transportation Manager at DAA was one of his best ever. Mike joined the Air Force after getting his BS in Physical Science at Washington State. ROTC coupled with a Masters in Metereorolgy from St Louis University gave Mike a jump on an Air Force career that spanned more that 25 years when he retired as a Lieutenant Colonel.

Membership Benefits Keeping things in the family, Mike’s son just retired from the Marines and also worked at DAA for a spell. We wish Mike all the best as he roams around the Pacific Northwest with his new puppy and 5th wheel trailer.

Download the WSIADA App Today! Online shopping, news, alerts and more! Plus: our brand new Auction Savings Program... • Access to auction inventories from across the country! • Special savings on Buy Fees at auction! • Easy to use!

• Continuing Education and Sales Training • Discounted attendance at annual WSIADA Education Fair East or West • One-stop shopping for everything you need to manage and promote your dealership, including marketing materials, signage, forms, stationery and much more. • Auction App with over $5,000 in Auction Discounts. • And many more...! Protect your own interests and support the auto industry in Washington State. Join WSIADA or renew your membership today!

Free from these App Stores: See enrollment form on page 23. the Front Row | wsiada.com | July/August 2019 |

2019 Education Fairs 5TH ANNIVERSARY!

SAVE THE DATE & REGISTER ONLINE TUE JUL 23, 2019

Doubletree by Hilton 322 N Spokane Falls Ct, Spokane

THU AUG 15, 2019

LeMay - Americaâ€™s Car Museum 2702 East D Street, Tacoma

14 | the Front Row | wsiada.com | July/August 2019

Why You Need an Automotive CRM

MANAGEMENT

ByZach Klempf | CEO/Founder, Selly Automotive

ndependent dealers wear so many hats that it’s hard to keep track. You are the salesperson, the accountant, the detailer, the customer service rep, the F&I desk, and even the marketing manager.

This means that important tasks can fall through the cracks, like lead management. Every dealership needs a systemized and repeatable sales program. Large franchise dealerships do this regularly, but many independent and BHPH dealers feel like they are too small. Why? Because the tools that are required to run a systemized sales program – namely, an automotive CRM platform – are too expensive and too clunky for a smaller operation. Luckily, there are new CRM tools (short for customer relationship management) designed specifically for small and independent dealerships. Using a CRM can have a major impact on your bottom line, and might even help you let go of a few hats. There are four main reasons why automotive CRMs help independent and BHPH dealerships boost sales. Let’s get into them.

Lead Management New leads come in from various sources: 3rd-party sites like Cars.com, social media, your website form, and walk-ins. Many principles and sales managers simply use their email inbox– or worse, pen and paper– to track new potential customers. This causes missed opportunities and misplaced information. Dealerships need a way to track new leads and store them in one place. This is the fundamental

purpose of an automotive CRM. Whether you get two leads a day or 200, every dealership needs a lead management tool to maximize their opportunities with new customers. Successfully using a CRM successfully requires a commitment to entering customer data and keeping it updated. Some CRMs offer tools, like a mobile license scanner, that automatically import a customer’s information. Data entry might seem like a hassle at first, but it makes each customer interaction easier, and your sales will benefit because of it.

Auto-Responses to New Leads

competitive. The difference between making a sale and losing out to a competitor could simply be how quickly you respond to a new lead. Automotive CRMs let you automate this process so you are first to respond every time.

Streamline Communication So much of the sales process today happens before a customer arrives at the dealership. This makes communication with the customer more important than ever. CRM’s help you keep track of all customer conversations, whether they happen via call, text, or email. Look for an automotive CRM that has these features:

In today’s internet-driven world, the casual window shopper that calls your dealership or walks onto your lot is all but extinct. The research phase of the car-buying process is now done online. When a potential customer does reach out, they are ready to buy.

Texting Platform

Texting is a great way to communicate with customers, especially millennials. Studies have found that 98% of millennials read all of their texts, but only 22% read Dealerships need to act fast to all of their emails. Texting through take advantage of a new lead. your CRM platform ensures all According to a Harvard Business communication with a customer Review study, salespeople who stays within the company, especially contacted a lead within one hour in the case of a salesperson leaving. were seven times more likely to qualify them, and 60 times more likely The texting platform will also keep than those who waited over 24 hours. you TCPA compliant. But most principles and sales managers can’t just drop what they are doing to respond to a new lead. That’s where an automotive CRM can make a massive impact.

Call Management

Even with texting and emails in the mix, phone calls are still the most common way we connect with customers. They are also pivotal Many CRMs have auto-response features that allow you to reply to touchpoints when building a a new lead instantly. Some CRM’s relationship with a customer. Some even let you customize the message automotive CRMs allow you to based on the lead’s information. record each phone call for quality For example, your auto-reply could assurance and training purposes. In say, “Hi Ben, Thanks for inquiring the event of a dispute, these calls about the 2015 Toyota Tundra. A also serve as the record of truth for salesperson will give you a call soon.” fast resolution. CONTINUED NEXT PAGE Your local dealership market is highly the Front Row | wsiada.com | July/August 2019 |

AUCTION LISTINGS For a current calendar view, visit WSIADA.com and select “Calendar” from the top navigation menu. Adesa | adesa.com/seattle

Tuesday: Consignment 9:30AM Alternate Tuesday: Specialty 8:30AM Thursday Night: InOp Sale 4:45PM

Adesa | Portland adesa.com/portland Thursday: Consult website

Copart | copart.com

Times vary: Consult website

CTM Unlimited

See website for auction dates and times: www. ctmunlimitedauction.com

DAA | Seattle | daanw.com

Friday: Dealer and Fleet/Lease 9:00AM Alternate Friday: Heavy Metal* 9:00AM (Lane 8) Monthly GSA Public Auctions: 1:00pm as scheduled” *Mechanically-challenged/cosmetically damaged/nonrunning inventory

DAA | Northwest | daanw.com

Weekly auctions: Thursdays at 9:00am; Monthly promotional event auctions: Wednesday at 2pm & Thursday at 9:00am Monthly MotorSports auctions: Thursdays at 11:00am (Lane 8) Monthly RV auctions: 11:00am (Lane 8); Heavy Metal auctions: 8:30am as scheduled (Lane 8); NOTE: MotorSports, RV and Heavy Metal auction dates can be found at daanwmotorsports.com

Ehli Auto Auctions | ehliauctions.com Last weekend of every month.

IAA - Insurance Auto Auctions iaai.com See website for dates and times

Kaman | kamanauctions.com Thursday: Noon

Manheim | Seattle manheim.com/locations/SSAA/events

Monday: OVE Event Sales Tuesday: Alternate weeks Ford Factory (Closed sale) - 10:00am; Crossborder Mobile Sale - 1:00pm Wednesday: General Sale Weekly 9:00am All sale dates and times are subject to change. Please verify with the Auction or manheim.com.

Manheim | Portland manheim.com/locations/PAA/events Tuesday: Open Sale: 9:00AM

CONTINUED FROM PAGE 15

Email Emails can easily get lost in the shuffle. Your CRM system will not only keep your email organized, but will connect each message to a customer’s profile so you have an accurate thread of communication.

Implementing a CRM An automotive CRM is not a magic bullet. You will not see results overnight. CRM’s provide a framework to organize and run your sales program, but doing so will require buy-in from your entire team.

Success with your new CRM is directly connected to the effort you put into using it. Your sales team must commit Lead Nurturing to using the tool to track all leads A successful sale does not happen all and communication. As a manager, at once. It is made up of numerous you must set up the proper lead interactions, from the time a custom- nurturing workflows and ensure your er visits your website to the time they team follows them. purchase their first vehicle. As a prin- Getting used to the new system will ciple or sales manager, you need to take everyone some time. Commit to ensure these interactions go perfect- using your new CRM tool for at least 90 days before you expect to see ly for every customer, every time. results. If you’re like most successful Lead nurturing can make a huge dealerships, you will start to wonder difference in your sales numbers. how you ever survived without a Strategic found that nurtured leads CRM in place. increased sales opportunities by 20% compared to non-nurtured Getting Started with Your leads. Ask yourself: What would your Automotive CRM business look like if you increased If you are ready to put down sales by 20%? those hats and start growing your CRMs systemize the relationshipdealership, then a CRM is a critical building activities we all know are so step in the right direction. An important. It makes the job easier for automotive CRM will help you and salespeople and creates a consistent your sales team wow customers with fast service and thoughtful followexperience for your customers. ups. It will keep your customer data For example, you can create a organized and your salespeople task that automatically reminds compliant. Most importantly, it will salespeople to follow up with a lead drastically improve your sales. if they don’t respond after two days. Every dealership will benefit from After a lead leaves your dealership, using a CRM, but not every CRM the salesperson will get another is built for every dealership. Most reminder to send a text message CRMs are built for large franchise thanking them for their time. dealerships. Independent and But nurturing leads should not stop once you make a sale. Post-sale lead nurturing is just as important as presale. For example, you can schedule follow-ups to check in with customers a day, week, and month after their purchase. Existing customers are far more likely to buy from you again than new leads. Post-sale lead nurturing turns one-time buyers into lifelong customers. This level of organization in your sales program is only possible with a CRM platform.

16 | the Front Row | wsiada.com | July/August 2019

BHPH dealerships have unique needs, so it’s important to find a CRM built for you.

Zach Klempf is the millennial CEO of San Francisco-based Independent and BHPH dealership software company Selly Automotive. Zach started out working in the car business when he was 19 years old. He is now a thought leader in the industry writing for multiple dealership magazines as well as other media outlets like Forbes and CNBC. Zach has spoken at independent dealership conferences across the country including NIADA, NABD, FIADA, GIADA, LIADA, TXIADA, IADAC, among others.

Car Buyers Visiting Fewer THE INTERNET OF THINGS Dealerships, Making Faster Decisions as Online Engagement Rises

ccording to a new study released by Cox Automotive, budget-

minded, time-strapped, tech-savvy U.S. car buyers are spending a higher percentage of their shopping time online and less total time in market as they hunt for their perfect ride. The 2019 Cox Automotive Car Buyer Journey study also indicates consumers continue to be frustrated by new-vehicle prices and are more likely than ever to be shopping for used vehicles. “While better online tools are helping people find the information they need, there is still more work that needs to be done to improve the car buying experience, according to our latest study,” said Isabelle Helms, vice president of Research and Market Intelligence for Cox Automotive. “At the dealership, filling out paperwork and negotiating a price remain top frustrations for most consumers.” The study indicates only 39% of car buyers believe the process has improved since the last time they bought a car, an indicator the industry still has ample room for progress. And less than 10% of car buyers are negotiating price online or filling out paperwork, activities that are known to improve the overall experience. Adds Helms, “However, we found that consumers are spending more of their shopping time online while making faster decisions and spending fewer days in market.” The findings: Car buyers spend an estimated 61% of active shopping time online – up from 57% in 2017 – and are in market an average of 96 days, a drop of more than 20 days in the past two years. What’s more, approximately 50% of used-car buyers and 44% of new-car buyers are now spending 30 days or less inmarket.

The number of dealerships visited in the car-buying process also continues to drop. On average, according to the 2019 Cox Automotive Car Buyer Journey study, car buyers who purchased from a dealership visited 2.3 dealers. In 2017, the average buyer visited 2.7 dealership. Further, 41% of buyers now visit just one dealership during the car-buying process, up from 30% in the 2017 study.

❏❏ More than one-third of car buyers now visit just one dealership before purchase. ❏❏ Nearly half of all buyers take less than 30 days to shop for and purchase a vehicle. ❏❏ Used-vehicle consideration and online shopping are increasing as prices rise.

Used is the New “New” for a Majority of U.S. Car Buyers

rose 2.7% to $500. The average monthly payment for a used car, however, rose less than 1% to $414. Affordability is a top factor for vehicle buyers according to Cox Automotive. In 2012, approximately 54% of vehicles were priced under $30,000. That number has dropped to 35% today. Meanwhile, the number of vehicles priced over $50,000 jumped fourfold, from 6% in 2012 to 24% today. It comes as no surprise then that 48% of consumers feel that owning or leasing a vehicle is becoming too expensive, up from 42% in 2015.

Purchase Process is Better, but Still Needs Improving Although shopping for a vehicle has increasingly become an online activity and, in turn, is taking less time to complete, most consumers are not noticing a change. According to the study, an estimated 52% of buyers believe their most recent carbuying experience was unchanged from their previous experience; 39% believe it was better than before; 9% believe it was worse.

Buyers who negotiate and complete their required paperwork online are notably more satisfied with the buying process, as are those who As the price of a new vehicle in spend less than 2 hours total at the the U.S. continues to increase – the dealership. Completing paperwork average price paid for a new vehicle and negotiating a final price are the purchased in December 2018 was top frustrations with car buyers today. $35,671, according to data from Cox Automotive’s Kelley Blue Book – more According to the 2019 Cox buyers are turning to used-car lots to Automotive Car Buyer Journey, few buyers perform those tasks online, fulfill their mobility needs. According to this most recent study, nearly two- despite the fact they would likely be more satisfied if they did. Less thirds of car shoppers (64%) are now than 10% of vehicle buyers report leaning toward a used vehicle. negotiating the final price of their According to Cox Automotive new vehicle online; only 5% filled research, the average monthly new out all the required paperwork. Yet, car loan payment in Q1 2019 was consumers who negotiated online or $567, up 3.4% from a year earlier, while the average lease payment CONTINUED NEXT PAGE the Front Row | wsiada.com | July/August 2019 |

CONTINUED FROM PAGE 17

completed paperwork online spent 45 minutes less time at the dealership and reported being more satisfied with the dealership experience.

Looking for Car Buyers? Look Online. Following a 20-plus-year trend sparked in part by the launch of Autotrader.com in 1997, the percent of car-shopping time spent online continues to increase. The 2019 Car Buyer Journey shows car buyers are spending 61% of their total shopping time online, up from 57% two years ago. Overall shopping time, however, has dropped for both new- and used-vehicle buyers. According to the Cox Automotive study, consumers today spend an estimated 13 hours and 55 minutes researching and shopping for a vehicle, down from 14 hours and 44 minutes in 2017. Third-party online sites such as Autotrader.com and KBB.com, two Cox Automotive brands, continue

to be the most trusted sources for helping consumers choose the right product. When asked, 52% of buyers indicate a third-party website was used to make the final decision on a vehicle brand. Dealer websites were cited 34% of the time, while official auto manufacturer websites were cited by 33% of buyers. Only 10% of vehicle buyers trusted social media sites such as Facebook to help with their final decision on a vehicle brand. When ready to purchase, the study found that 34% of new-vehicle buyers and 43% of used buyers visit only one dealership.

Product is Still King According to the 2019 Cox Automotive Car Buyer Journey, roughly one-third of new-car buyers ultimately choose a brand they have never owned before, with their decision mostly driven by product attributes and the deal offered. In courting new-vehicle buyers, automakers focused heavily on

traditional television advertising are mostly wasting their time and money, according to the new study, which indicates only 13% of new-to-themake buyers became aware of the make through television advertising. Word of mouth from friends and family is the most cited source of influence, followed by the internet, where third-party sites are the top driver of awareness. “For new-vehicle buyers, product is king,” said Helms. “Our study found buyers to be most interested in product details and vehicle specifications, followed by brand reputation and the deal offered.” For more information, go to www. coxautoinc.com or contact Mark Schirmer by email: mark.schirmer@ coxautoinc.com SOURCE: https://www.coxautoinc.com/news/car-buyersvisiting-fewer-dealerships-making-faster-decisions-as-onlineengagement-rises/

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New website design, development, data migration, application integration, testing and initial training. 18 | the Front Row | wsiada.com | July/August 2019

For more information email SmartDealer@sygniﬁ.com or call (734) 904-0295.

TRICKS OF THE TRADE

Check out previous issues of the Front Row for earlier lists.

Ways to Steal

from the Dealership The devil’s always in the details, and losing control of your business’s internal processes can add up fast. In the May/June magazine we listed the more common ways employees and customers have found to rip off dealerships; here are numbers 31 to 40: 31. Completing repairs for cash without preparing a repair order.

34. Increasing amounts of suppliers’ invoices through collusion.

32. Selling parts for cash without preparing a parts invoice.

35. Charging personal purchases to dealership through misuse of purchase orders.

33. Buying or selling vehicles at an unfavorable-to-dealer price and collecting a kickback or payoff from the other party to the transaction.

36. Billing stolen merchandise to fictitious accounts. 37. Shipping stolen merchandise to an employee’s or relative’s home.

38. Falsifying inventories to cover thefts or delinquencies. 39. Taking checks payable to the dealership or to suppliers and forging endorsements. 40. Increasing canceled bank checks to agree with fictitious entries.

Dealer Directives

for Stronger Internal Controls It’s your business, so it’s your business to minimize and prevent theft. As a proactive

flipside to “Fifty Ways to Steal from the Dealership, we’ve also compiled 50 best practices for making sure misconduct doesn’t grow into major losses. Here are numbers 31 to 40: 31. Require bids and purchase orders on all vendor jobs, and review them.

35. Check on unusual cash register over-rings.

32. Personally distribute payroll checks periodically.

36. Personally inspect

33. Require aging of all overdue receivables.

time to time.

34. Question all voided documents.

of entry or in area of safe.)

demonstrators and lot cars from 37. Install alarm system (at point

38. Keep a checklist of locks, alarm systems, etc. which need to be activated at night. 39. Assign a key employee with responsibility to open and close dealership. 40. Post warning notice that building is protected by alarms. the Front Row | wsiada.com | July/August 2019 |

20 | the Front Row | wsiada.com | July/August 2019

READ AND RESPOND | July/August 2019

he WSIADA Read and Respond quiz allows the reader to earn 1 hour of continuing education credit toward the dealership’s required annual renewal. Payment options are available for members of the association and non-members also for notification to the Washington State Department of Licensing. A passing grade will be granted for scores of 80% or greater. If a passing grade is not granted, the reader may retake the quiz.

DEALERSHIP NAME CHECK:

DEALER#

I HAVE READ AND UNDERSTAND THE DISCLAIMER ABOVE.

Send your completed quiz to WSIADA... MAIL: 707 Auburn Way South; Auburn, WA 98002 FAX: 253-804-0844 EMAIL: education@wsiada.com

QUIZ TAKER’S NAME

POSITION

SIGNATURE

DATE

BUSINESS PHONE

CIRCLE THE CORRECT ANSWER. [1] Garagekeepers Liability provides Physical Damage coverage to another

[4] How many days should you commit to [8] Auto dealers have a responsibility before expecting to see any results with a to protect the assets of the customer through accurate paperwork new CRM? a. TRUE a. 60 days b. FALSE b. 90 days

person’s auto in your car, custody, and

c. 100 days

control.

d. 10 days

a. TRUE b. FALSE

a. Lot Leads

tive Car Buyer Journey study, how do

b. Education Fair

customers feel about new-vehicle prices

c. New Dealer Education

a. Happy b. Frustrated c. Lugubrious

[9] In 2012, approximately 54% of affordable vehicles were priced under what amount?

[5] A new service WSIADA offers for existing dealers that wish to retire or sell their property to other dealers?

[2] According to the 2019 Cox Automo-

and would rather shop for used vehicles

a. $25,000 b. $30,000 c. $45,000 d. $50,000 [10] Phone calls are still the most common way an independent dealer connects with customers

d. Title Workshop

a. TRUE

[6] What estimated percentage of buyers believe their most recent car buying experience was unchanged?

b. FALSE [11] The casual window shopper that calls your dealership or walks onto your lot

a. 9%

a. Growing

b. 15%

b. Extinct

[3] “The Lean Dealership: Startup Prin-

c. 39%

c. Scarce

ciples your dealership can leverage” is

d. 52%

d. Mauldin

d. Average

presented by which individual on July 23, 2019? a. Todd Elliott, WSIADA b. Bob McConkey, DAA Northwest c. Zach Klempf, Selly Automotive d. Todd Shepard, Shepard & Shepard Business Solutions

FAX

[7] A CRM system will benefit a dealership with what features? a. Email organization b. Nurturing leads c. Post Sale Reports d. All of the Above e. None of the Above

[12] Under TCPA guidelines, transmitting any advertising material to a person without express invitation or permission is called? a. Phishing b. Unsolicited Advertising c. Junk mail d. All of the above e. None of the above

the Front Row | wsiada.com | July/August 2019 |

READ AND RESPOND | continued [13] Car buyers are spending 60% of their total shopping online, which is up from how much two years ago? a. 52% b. 57% c. 59% d. 60% [14] Kelley Blue Book is a vehicle valuation and automotive research company owned by Cox Automotive a. TRUE b. FALSE [15] Garagekeepers Liability coverage is not an option for your policy a. TRUE b. FALSE

[16] Texting is a great way to communicate with customers. What percentage of millennials read their texts compared to their emails? a. b. c. d.

50% text/50% emails 98% text/22% emails 64% text/36% emails 22% text/98% emails

[17] “For used-vehicle buyers, product is king,” a. TRUE b. FALSE [18] Mike McGaughy is retiring August 1st after 15 years with WSIADA and which auction location a. b. c. d.

DAA Seattle DAA Northwest Adesa Seattle IAA Spokane

[19] 52% of buyers use third-party websites to make the initial decision on a vehicle brand? a. TRUE b. FALSE [20] What is a hub for lead management and customer service for a successful dealership? a. Dealer Management Software (DRM) b. Customer Relationship Management (CRM) c. Virtual Private Network (VPN) d. Point of Sales (POS)

Please be advised that the information contained in WSIADA’s the Front Row is, to the best of our knowledge, current and correct. However, we caution readers not to use the information provided to them as final authority. Its purpose is to be a guide. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Some articles may express opinions and/or suggestions for best practices. Likewise, the appearance of advertisers or their identification as members of WSIADA, does not constitute an endorsement of the products or services featured.

Elon Musk Celebrates the 50th Anniversary of the Apollo Moon Landing... 22 | the Front Row | wsiada.com | July/August 2019

Washington State Independent Auto Dealers Association

Dealer Member Enrollment

YES!

I know that it is important to be recognized as a professional in the automotive industry! Enclosed are my annual dues to ensure that my business has all the advantages WSIADA/NIADA provides to put me at the forefront of my profession. By completing this form, I am consenting to and giving WSIADA/NIADA, their afﬁliates and/or subsidiaries, my permission to contact me at the methods I have provided on this form until/unless I revoke that permission in writing. I hereby certify that (I am/we are) eligible for membership in WSIADA.

ENROLL: Member Name Business Name

Dealer No.

MEMBERSHIP CATEGORY: Dealer Membership is [a] limited to any sole proprietorship, partnership or corporation which is engaged in buying and selling motor vehicles as a principal part of its business; and [b] member must hold a vehicle dealer’s license issued by the Washington State Department of Licensing.

$450 Annual Charge (payable by debit/credit card or company check) $42 Monthly Charge (debit/credit card only; will be charged on the 1st of each month. Cancellation will require payment of full balance.)

Billing Address City

State

Business Phone

Mobile

Zip

County Fax

See reverse side of form for some of the many beneﬁts of WSIADA membership!

PAYMENT METHOD:

CHECK No._______________ (Checks are not accepted for monthly membership payments) VISA

Discover

CARD NUMBER

NAME ON CARD

AMEX

EXPIRATION DATE

CARDHOLDER SIGNATURE

CCV

BILLING ZIP CODE

DISCLAIMER: Receipts will be emailed unless otherwise requested. This agreement will continue until/unless the card holder revokes consent in writing or cancels membership. At that point member will be billed for the remaining balance. If provided card is declined, WSIADA may continue to attempt to process payment(s) or request updated payment information. If payment is declined and no card update issued, dealer will be invoiced for remaining balance and access to WSIADA services will be suspended until balance is paid in full.

DELIVER TO:

WSIADA 707 Auburn Way South Auburn, WA 98002

FAX 253-804-0844

EMAIL(as an attachment) membership@wsiada.com

ENROLL ONLINE www.wsiada.com

the Front Row | wsiada.com | July/August 2019 |

Service Provider Directory WSIADA Service Providers know our industry and understand what you need as a dealer. When youâ€™re hiring professionals, support the ones that support your Washington Independent Auto Dealers Association (let them know you saw them listed as a WSIADA Service Provider). Accounting & Tax Services

Bonds and Commercial Insurance

RH2 | Rekdal Hopkins Howard

Farmers - Karen Dunn Insurance Agency

(425) 658-1400 rh2cpas.com Learn more on page 14

Tax Refund Services

(253) 964-7070 business.farmers.com/karen-dunn

Shepard & Shepard Business Solutions

(888) 972-7422 TaxRefundServies.com

(855) 396-0488 shepquote.com Learn more on page 6

Auctions

Custom Signs

Adesa Seattle

(253) 735-1600 adesa.com/Seattle

Adesa Portland

(503) 492-9200 adesa.com/Portland

Copart Auto Auction (253) 847-8300 copart.com

CTM Unlimited Auctions (877) 396-5808 ctmunlimitedauction.com

DAA Northwest

(509) 244-4500 daanw.com Learn more on the inside front cover

DAA Seattle

(253) 737-2200 daaseattle.com Learn more on the inside front cover

(650) 409-2526 sellyautomotive.com

Dealer Management Systems Carousel Software Dennis Demattia demattia@alcm.org (509) 926-8848 carouselsw.com

Frazer Computing, Inc. (888) 963-5369 frazer.com info@frazer.com

Skywerks

(206) 999-6699 skywerks.com Learn more on page 22

Ries Management

Fleet Management Spireon

(800) 557-1449 spireon.com

Legal Services

Yarbro Auctioneers

(253) 620-1500 dpearson.com

Washington Retail Association (360) 943-9198 waretailservices.com

AutoZone

(866) 727-5317 sc53@autozone.com Learn more on page 4

CoverCraft (405) 238-9651 covercraft.com

Payment Processing Clearent, LLC (866) 435-0666 clearent.com

Vehicle Warranty NVP Warranty

(888) 270-5835 nvpwarranty.com

(206) 290-3993 riesmanagement.com

(206) 762-1600 manheim.com Learn more on the inside back cover!

Benefits & Health Insurance

321 Ignition

Finance and Insurance

Insurance Auto Auction (IAA)

(509) 765-6869 yarbro.com

(833) 794-6434 sygnifi.com Learn more on page 18

Parts & Service

Selly Automotive

(206) 718-7234 (Western WA) (509) 705-7597 (Eastern WA) nwdfs.com

Manheim Seattle

Sygnifi Networks

Custom Relationship Management

Northwest Dealer Financial Services

(425) 640-5111 kamanauctions.com

Marketing

(8880 725-7637 321ignition.com sygnifi.com

(253) 572-0990 ehliauctions.com

Kaman Auctions

(503) 238-6475 unitedfinance.com

(253) 445-6424 signdogs.com

Sign Dog

Ehli Auctions

(206) 658-6900 iaai.com

United Finance Company

Davies Pearson, P.C.

Lending Lobel Financial Corp. (253) 839-2600 lobelfinancial.com Learn more on page 3

24 | the Front Row | wsiada.com | July/August 2019

Advertise with WSIADA! THE FRONT ROW magazine is the most effective way to reach over 1,600 auto dealers in Washington State. Contact WSIADA for more information about targeting your ad dollars today!

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WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION 707 Auburn Way South Auburn, WA 98002 WSIADA.COM

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