Used Car News

NIADA – Continued from page 1

and recruit dealers to the association who were already leaders in the industry. It made it easy to recruit new members.”

Martin’s recruiting pitch was simple and direct.

“We would make it very clear that it’s a member-owned, member-governed association,” he said. “The reason they were joining was to protect the industry.

“We told them about what we’re doing legislatively, what we’re doing in the compliance arena and how we’re trying to create an environment that helps them become a successful car dealer.”

The second key was to actively get dealers involved in that process of protecting the industry.

A third key was relaying to them stories about what things the group had done legislatively over the years that were directly benefiting dealers in the present, which illustrated the importance of membership.

“I would always say, ‘Now it’s our time and it’s our responsibility at this point to protect this industry and make it better for the next generation,”’ Martin said.

One perfect example of the importance of the TIADA and NIADA was the COVID-19 pandemic.

“It was another time it helped us say, ‘This is why you have to be a part of the association,’” Martin said.

NIADA lobbied hard nationally to make automotive an essential business to keep the industry open.

“NIADA gets a lot of credit because of the relationships they had at that time,” Martin said.

However, in Texas there were variances in local ordinances –both county and city – that TIADA was able to influence because of its active membership.

Martin warned that this was good practice for whatever is coming around the corner.

“There will be another thing,” he said. “I don’t know what it will be, but there will be something.”

Martin will take the lessons he learned at the state level to his new role at NIADA.

His goal is clear.

“The sole purpose that an association should have is growing its influence,” Martin said. “We want to be in a position to use that influence whenever that opportunity presents itself, without abusing it.”

Martin faces a big challenge at

NIADA.

He took the reins of NIADA two months ago, after a bumpy couple of years for the group. Former CEO Bob Voltmann resigned after just two years at the helm, being replaced by Melanie Wilson for an interim period.

Martin originally showed interest in the position when it first opened up before Voltmann was hired, but it wasn’t “a good fit at that time,” he said.

After Voltmann resigned, NIADA President Scott Allen, a fellow Texan and friend, asked Martin’s advice about going forward with a transition.

Martin made recommendations on finding a replacement, none of which involved himself taking the post, since he was genuinely excited about the direction of TIADA.

Martin said eventually Allen pitched the job to him a couple of times, and Martin visited with the board.

He knew most of the board members and had obviously talked with a number of dealers across the country over the years.

“I felt like there was a real opportunity to build the association that those dealers deserved,” Martin said. “For me, it was more of an emotional decision than an analytical decision.”

Martin praised Wilson for doing a “phenomenal job during the transition in what was obviously a tough transition for NIADA.”

Eventually, Martin accepted the position but he has his work cut out for him.

The turnover during the past couple of years has been significant, with Voltmann bringing some of his own people in and other longtime staffers leaving on their own.

In one meeting, Martin asked a group of nine staffers if any of them had been around for more than four years and only one person raised their hand.

NIADA also has huge challenges on the regulation and compliance front.

“The Federal Trade Commission (FTC) has become much more aggressive in the last two years,” Martin said. “Obviously, the CFPB (Consumer Financial Protection

Bureau) is pretty aggressive, as well. So, I think the threat that is out here for this industry probably lies a little bit more now at the national level than it did previously.”

There are still concerns at the state level, but Martin sees the federal groups are the real challenge.

“That’s what I told the board,” he said. “We’ve got to have a national association that’s looking out for the interests of dealers and when there are new in the process to have a conversation with those regulators,” Martin said.

Being there shows that dealers care about the regulatory environment and it’s a key part of making sure the group is growing its voice as an association.

“That’s why you have to be at the convention,” Martin said.

He wants regulators to know what he knows; that no one loves their customers like NIADA members love their customers. NIADA dealers know what makes their customers happy and they need to tell regulators what makes their customers happy.

“We know that if we don’t treat our customers right, the customers go away,” he said. “We live on repeat business.” rules put into place, the NIADA needs to be the place dealers feel comfortable in coming to and clearly (learning) what those rules are and how they can comply.”

NIADA’s goal is being a dealer’s voice at the federal level but it also means NIADA has to be the leader in helping to educate dealers on compliance.

It’s on that point that he and the NIADA board found strong agreement, according to Martin.

The upcoming NIADA annual convention reflects that vision as the event will have presentations by the FTC, CFPB and the IRS.

“We have to have regulators at our events,” he said. “Some of it is so we can hear from them and some of it is so we can talk to them. But the other part of it is that dealers have to attend.

“Part of the message I want to make sure we’re sending is that we are large in size, we have an active membership and we have a membership that is interested in doing things correctly.”

Martin said an organization will always send a message – good or bad – to regulators who attend their events,

“The message you send is either – you don’t show up – sending the message that you don’t care or you show up and send the message that you do care and you’re active

While the state associations play a crucial role and are the ones that go out and recruit new members, the NIADA has to be a group worth recruiting for.

“We need to clearly communicate what we can deliver,” Martin said. “Part of that is to make the expectations clear between the states and the national association.”

There are about 32 different state affiliates, he said, so the NIADA is not going to be able to meet every need of all those affiliates. It will be able to meet needs that benefit dealers, it just can’t have 32 different programs.

“But we have to be able to communicate that,” Martin said. “We’ve got to say, ‘Here are the things that we can deliver and we can deliver them well and your state will benefit from them.’”

Having a staff with industry insight and knowledge, including the 20 group moderators, is a benefit.

But Martin said NIADA has to be careful not to talk at dealers but listen to its members.

“We are representing their interests,” he said.

FLORIDA

Michael Fernandez, owner/general manager, ABC Autos, Tampa, Fla.

“I have been working in the car business for the past 15+ years. I have managed and worked at four different locations/divisions in my time at ABC Autos.

“We traditionally run an inventory dollar amount of about $1.1 million across an average of 100-120 units. Current sales volume over the past three-year history would average 65 a month.

“Over the past 3-4 years, trucks have been increasingly hard for us to finance within our max term of 4 years so we have slowed on truck sales. A good estimate would be about 65% and 35% of our sales are cars and SUVs.

“We do only buy-here, payhere, as has been our specialty for over the last 60+ years in the Tampa Bay Area. Traditionally we may average 1-2 units/month outside retail.

“We sell a wide range of manufacturers, but we try to focus on full-sized GM vehicles, Hondas and Toyotas. Inventory shortages have forced us to extend our list of buying to a wider array of vehicles, but if we had it our way, we would only sell the three manufacturers listed above.

“We have a full-service department that helps facilitate our reconditioning as well as our warranty claims. Our average recon per unit sold is $742. We would like to handle all claims at our shop but being in Florida we do have some transient clients who need to have warranty coverage nationwide. The only jobs we are subletting out to other shops currently are major engine and transmission work.

“We do source the majority of our vehicles at auction. We love independent auctions and our local Manheim’s. We have also been sourcing from CarMax for the last 10+ years and have a great working relationship with them. Which ever auction that can give me the best sale/buy fees would be my favorite auction!

“We do not have requirements on year or mileage for the vehicles we buy as long as we think it will be warrantable. Traditionally we love to sell a less than 10-year-old unit with fewer than 100,000 miles. Average mileage is 78,000.

“We average about $1,300 down across an average term of about 44 months with a maximum term of 48 months.

“Dealers should become process oriented. When I first dove into the automotive industry I was very interested in the sales side of the operation as that was my background. I learned very quickly that sales, although very important to your business, is not the only thing you should focus on, right? I was the ‘Buy it for 8 and sell it for 10’ guy and I quickly realized I had no idea about what it actually ‘cost’ me to sell that $8,000 car.

“About 10 years ago I joined an NIADA 20 Group and was able to look at and track metrics I had not really gotten into in detail until they were put in front of my face and I was questioned about it. Want to learn your business? Have someone grill you on numbers that you don’t regularly track.

“Here’s my short list of items a new dealer should focus on: Control the controllable; have a firm grip on your expenses, not just what you’re paying but what’s your return on investment.

“Dealers should also create a process for every role at your dealership. If you’re doing things right, you will experience turnover at some point. Be prepared by having a process book for the next employee so your fear of training a new person will be lessened and you will be empowered to make moves when you should, as opposed to when you are comfortable making them.

“Keep your head up. Every day is an opportunity to dominate and every problem is an opportunity for a solution. As an owner/operator you can set the tone of your staff by staying engaged and upbeat. Keep the positivity up and your staff will also.

“The last car we sold was a 2015 Nissan Altima with 97,000 miles for $15,995.”