Volume 36 Number 2 • spring 2016
VIRGI NI A
Reconditioning spring 2016 | The Virginia Independent News | 1
IT’S YOUR LOCAL
AUCTION
LANE. BUT IT’S THE WORLD’S LARGEST
Virgina Manheim Fredericksburg | Manheim Harrisonburg
manheim.com | 866•Manheim ©2014 All rights reserved.
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The Virginia Independent News A VIADA Publication © Virginia Independent Automobile Dealers Association 4700 Thoroughgood Square Virginia Beach, VA 23455 (757)464-3460 | (800) 394-1960 Fax: (757) 460-1346 E-mail: info@viada.org www.viada.org www.facebook.com/infoviada Lois Keenan Executive Director lois@viada.org Peter Iaricci Director of Education pete@viada.org Tina Allman Auction Representative tinaallman1@gmail.com Stephanie Hand Publications publications@viada.org ashley dazzo BookKeeper / Membership ashley@viada.org Vickie London Inventory Manager vickie@viada.org viada officers 2015-2016 President Weldon Whitehurst President Elect Rob Fisher Vice Presidents Bobby Steele Jamie Davis, CMD Don Sullivan Secretary Brad White Treasurer Andrew Wiley, CMD The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the view of the Virginia Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of VIADA, does not constitute an endorsement of the products or services featured.
VIRGI NI A Columns
4 From the President: Weldon Whitehurst 6 Executive Director’s Notes: Lois Keenan 9 Ladies Auxiliary 10 Around the Commonwealth 12 Upcoming VIADA Events 16 Dealer Day Information 17 Dealer Day Registration 20 Member Bulletin Board 22 News in Brief from Alvin Melendez, CMD 22 Auction Education 24 VIADA Renewals: January 1, 2016 - February 29, 2016 25 VIADA New Members: January 1, 2016 - February 29, 2016 28 PAC Contributors
Features
6 Q & A with Shirlie Slack
BY Shirlie Slack, VIADA Past President
7 Tips for Buying and Selling at Auctions BY Jason Brinkley, ABC Auto Auction
8 How New Technologies Impact Brakes and Chassis Services BY Advanced Auto and CARQUEST
9 2016 General Assembly Bills – Watch Emails for Updates 12 Reconditioning a Vehicle BY Jason Adams & Dr. Christine Wolfe, ABCDieselZ.com
14 Why Compressors Fail / How to Kill a Good Compressor? BY Joe Thierres, AUTOPART International
19 Google Adwords PPC Versus Every Other Form of Advertising BY Kenny Atchenson, Dealer Profit Pros
23 Why Reinsurance? Voting for President BY Tim Byrd, DealerRE
26 RESTORATION TIPS! 29 Fixing Scratches
BY Scott Cartine, Robo’s Detail Supplies
30 The Internet Corner Where is Everyone Advertising Online? BY John Summer, JTZ Enterprise.com
spring 2016 | The Virginia Independent News | 3
e h t m o r F By: Weldon Whitehurst, VA Beach Truck Center
My best practices: Auto Detailing
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1. Partner with a good chemical supplier. You can’t possibly keep up with all the new things available to clean cars. Whether you have a full detail shop or not, you will always need something. Don’t be afraid to ask if you can try stuff before you buy it. I have been given more free stuff at trade shows and conventions; some of it works, some doesn’t. 2. Paint all exposed wheel wells, suspension components, and trailer hitches on trucks and SUVs. Simple black lacquer paint is all that’s needed. I get more compliments on this – it makes them look fresh and new for very little money. 3. It’s become very expensive to do seat upholstery repairs. Sometimes you can buy a new seat cover cheaper than repairing an old worn out one. We buy new seat covers from Richmond Upholstery out of Texas. Great quality covers dyed to OE color. (never had one not match) 4. Seal all discolored / faded plastic with “Wipe New”. Have tried lots of other products, but keep coming back to it. It also works good on wheels and I use it on front bumper covers that have clear coat chips in them. Best deal I’ve found on it is at Bed Bath & Beyond ($14.99 and use the $5.00 off coupon they send out on the back of their ads) 5. Use Plastex plastic repair kit to fix most broken plastic parts on interiors. Works better than the 2-part epoxy.
Mechanical repairs
1. Being cheap never works out. Whether you have your own shop or you sublet the repairs, we constantly look for better parts to put on our vehicles. Most suppliers have a Good, Better, Best line of parts and we use the middle line at a minimum. 2. You will find that certain vehicles have common failure items. Source these parts on the Internet. Dorman products is a great company that manufactures parts like this. Go to their website and sign up for the new product release e-mails. They will notify you when they come out with a new part. Currently we find that Tennessee Auto Parts offers the best discounts on Dorman products. 3. Get an Amazon prime account. It is amazing how much business we do online today. Guaranteed 2 day delivery on most things and a lot of other great perks. 4. If someone can do it better, then send the vehicle to them. Technology used in cars today is incredible. Unfortunately, fixing them is getting more complex and much more expensive. You will see smaller shops specializing in certain repairs or specific vehicle brands as it is getting too costly to try and service all makes and efficiently perform every type of repair. 5. Join other trade associations. Just like it pays to be a member of VIADA, it also pays to join organizations like ASA, SEMA and IATN just to name a few. Cash back programs, sources for trending aftermarket parts, and the largest repair database / technician network on the planet are some of the things these groups offer.
Weldon Whitehurst Va Beach Truck Center
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of Tip the Month
Reduce Aged inventoRy When a car has been on your lot 30 – 60 days, there is usually a reason it hasn’t sold. Each month you should personally inspect and test drive each aged unit. In many cases reconditioning will be required to quickly sell it. Either do the needed reconditioning or wholesale the unit and replace it with a fresh unit that will sell.
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Notes
By Lois Keenan, VIADA Executive Director
It is our pleasure to distribute this issue of the Virginia Independent News featuring information about reconditioning and suppliers who provide products and services to our members. Vehicle buyers today are looking for older models to look “like new”. VIADA extends appreciation to Jamie Davis, Vice President of VIADA and Chairman of the Publications & Events Committee who helped orchestrate this issue and brought new ideas for content. One of the exciting features was to solicit members to share tips they use to save on reconditioning costs and products that will enhance the value of those units. Be sure to find them in this magazine starting with your State President’s article. We express our thanks to members who readily shared this information to help fellow members. This is an example of true association benefits. Often members join the Association for the purpose of tapping into the knowledge of other seasoned members. We will welcome your email, text, or note letting us know how this issue was helpful to you. ********** So far in 2016 you have received your new Membership Directory with the 2016 door decal inserted, two magazines the winter issue of The Virginia Independent News which included highlights of the convention including your new State President and Officers, the state Quality Dealer, New Ladies Auxiliary Officers and Quality Lady of the Year, two great scholarship opportunities for graduating senior sons, daughters, or grandchildren of VIADA members and the spring issue you are reading now. In addition you have received two News In Briefs filled with important need-to-know information plus the General Assembly Crossover legislative report from VIADA’s Lobbyist Meade Spotts of SpottsFain Consulting. In January thirteen members of your Board of Directors spent the day at the General Assembly for three purposes; visit their Senators and Delegates, make them aware of bills impacting independent dealers, and renew awareness of VIADA – its purpose and its members. Each legislative representative received a copy of VIADA’s Membership Directory. In addition, the committee is working on final details for VIADA’s 5th Dealer Day to be held in the Richmond-Midlothian area at the DoubleTree by Hilton on May 10. Don’t miss the details in this issue and sign up to attend – note the separate Title Class by our own Pete Iaricci and Sheila Stephens, Deputy Director of Vehicle Services for the Department of Motor Vehicles. ********** We hope you are utlilizing the many benefits including the 800# helpline with Peter Iaricci, VIADA’s Director of Education and Consultant. Remember to display your VIADA logo proudly, for you represent the most outstanding dealers in the Commonwealth – it makes you stand out when customers visit your dealership. When we stop to count our blessings, only then do we realize the value of what we have been given!
Q & A with Shirlie Slack BY Shirlie slack, VIADA Past President Do you want to know how to get top dollar for your vehicles on sale day at the auction? We were able to stop Shirlie Slack long enough to get her to tell us a few of her secrets. Q: How soon do I need to get my cars to the auction to get the most eyes on them? Do they need to be there a day before or a week before the auction? A: Many benefits are realized by having cars ready with condition reports, registered at the auction one week in advance, which we have been doing for several years. It’s a plus for the seller and buyer alike, more and more dealers are buying on line. The seller is displaying inventory
before auction day, a valuable marketing tool. Q: What things do I need to do to my cars to get them to stand out from the rest at the auction? A: A complete detailing of the cars, by an expertly trained staff of reconditioning people, compensated well, who understand your philosophy and goals. This one point truly makes the difference. Q: It’s sale day! What do I need to do this morning, before my cars roll across the block? A: On sale day, very early in the morning, the reconditioning crew arrives at the auction to wipe down each car, and inspect all-over
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appearance for any details needing attention. Q: How do I get the auctioneer to get top dollar for my car? Do I slip him a few bucks, or what? A: You get top dollar for consistently representing your cars accurately and honestly. Paying an auctioneer is a recipe for disaster. The relationship won’t last for too many reasons to list. Being straight up with the auctioneer with true and accurate information is the only way to do business. Working together, you will sell cars. Thank you Shirlie for giving us a little bit of time in your busy schedule! Her dealership is currently undergoing a complete renovation, so she doesn’t have a lot of free time.
Tips for Buying and Selling at Auctions BY Jason brinkley, ABC Auto Auction Seller: As a seller in an auction setting there are certain items that can be performed to enhance your overall net retention on your assets coupled with reducing the arbitration of your inventory prior to vehicle being offered at an auction: • Know your vehicle - Meaning perform any historical research on the vehicle prior to consigning the vehicle at an auction. A seller can identify potential issues well before a vehicle lands at an auction with minimal work performed, this history will often lead the seller to being able to properly announce sell conditions within an auction setting. • Test drive the vehicle, with 24 years of experience on this side of the fence I still find it quite amazing when a seller informs me that they have never been in the driver seat of the vehicle let
•
•
alone test drive the vehicle, it is essential to know the asset you are attempting to sell. Properly announce your vehicle - If you, as a seller, know the proper conditions to sell a vehicle, you stand a far greater chance to sell the asset through an auction. For instance if a vehicle is “AsIs” and you, as a seller, know why; then inform the buyer base as to why it’s being sold in such conditions - this adds value on many fronts. The buyers then build and develop a trust with the seller on future vehicles being consigned through an auction thus increasing your net return in the future. Playing games with the buyers does not work short or long term; a trustworthy relationship always pays dividends. Properly clean your vehicles Whether through the auction
•
•
or on your own. A solid reconditioning campaign on every asset is essential, a clean car sells at a higher rate than a dirty car in the lanes, and this is proven over time. Transport vehicles well before the auction date to ensure every buyer has ample time to perform their own due diligence on your vehicle. If a vehicle is at an auction at least 24 hours prior to the auction date, you stand a far greater chance to sell the vehicle than getting vehicle to the auction on sale day. Represent your own vehicle Each time during an auction, there is a distinct correlation when a seller asks anyone other than the owner to represent a vehicle at the auction. If you are not on the block as the owner of u Continued on Page 21
spring 2016 | The Virginia Independent News | 7
How New Technologies Impact Brakes and Chassis Service new technology Considerations For reconditioning For the last 20 years, the industry has been warning technicians and shop owners about the impending challenges that technology presents and the need to prepare for those challenges. Some took heed and made changes in the way they approach technology based systems while many decided to focus on the systems that don’t use technology or systems where you can ‘avoid’ the technology. Well we would like to suggest that the day has come when there is no avoiding technology, even in brake and suspension service.
Let’s start with brakes. I’m sure you have all been to an ABS class where you heard that the base brake system must be operating as designed in order for the ABS system to work properly. This is true, but many still performed brake service in the same way they always had. They’d turn the rotors, slap a set of pads on the vehicle without cleaning or checking for lateral runout. The vehicle would then come back once in a while with pedal pulsation or noise issues, and the blame would be placed on the brake pads. Then add the reluctance of the motorist to approve a repair that illuminates the ABS warning light because the vehicle stops just fine. They get used to the yellow light because no one can effectively explain how important that light is. So we have created a real issue over the last 20 years by not buying into the value of the ABS system.
Then there’s the suspension system. For years we’ve replaced components to cure tire wear and issues that cause the vehicle to pull one direction or another because there was real value there. Tires aren’t cheap and no one likes to drive down the road with a steering wheel that is pulling the vehicle towards the ditch. There weren’t many vehicles that were adjustable from the factory and the alignment equipment displayed the settings as green so they must be good. Again, we have more than 20 years of bad habits to break in order to be ready to service new technologies. Let’s take a look at what we are facing.
since 2008, all vehicles sold in this country had to be equipped with stability control systems. These systems all use the ABS system as its primary means of controlling the directional stability of the vehicle. ABS along with electronic throttles and a multitude of sensors on the vehicle that detect how the vehicle is acting creates a complex system that everyone must recognize and understand how to manage. To put it in simple terms the stability control system assumes a lot of information. It assumes the steering angle sensor has been calibrated correctly and it assumes the total toe-in of the vehicle is split evenly. These assumptions must be correct or when the system applies the ABS system to correct a stability issue the vehicle may react in an unusual way. To compound the issue, the ABS system assumes the base brake system is perfect. If it isn’t the vehicle reaction may again be unusual or unsafe.
To learn more about how to effectively service these systems, see your Advance or CARQUEST representative about joining a CARQUEST Technical Institute training program near you.
All ViADA members are now eligible for the following new and exciting benefits from Advance Auto and CArQuEst Auto parts: program Benefits:
Exceptional “Platinum” Pricing
3% rebate paid on qualifying lines (Average quarterly spend of $2,000 per quarter or more to be eligible)
Additional rebates of up to 3% for online ordering!
8 | The Virginia Independent News | spring 2016
Symbol of Quality
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e
of nd
Greetings, I hope by now everyone is having spring weather! We are in Hampton Roads as of now, but that can always change! Speaking of weather, our January meeting was moved up because of the impending snow warnings. I would like to thank everyone who endured the trip to meet in Richmond, we had a small meeting, but we made a lot of good decisions. Just to remind everyone we raised $9,530 at the charity auction in Virginia Beach. We dispensed a lot of that money all over the state of Virginia in our meeting in January. We voted to give two iPads, and contribute to a memorial garden fund for a Fill-a-Wish applicant who passed away before the wish could be completed. We also gave to the New Hope Housing, sponsored a mission trip, two abused women shelters, and Relay for Life. I feel so proud of all our members that have such giving hearts! I also want to mention that we are looking forward to receiving our scholarship candidates for this year; the deadline was March 15th. The winner receives $2,000 towards the college they are accepted to. Hopefully I will see everyone at the next meeting in Staunton, VA, at the Stonewall Jackson Hotel on April 23. Come on April 22 and we all can have dinner together! See you soon! Blessings,
Carla Boucher President
2016 General Assembly Bills – Watch Email for Updates
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HB 507 Motor vehicle inspection; requirement for purchaser of a trailer, etc., from an auto auction. Allows the purchaser of a motor vehicle, trailer, or semitrailer from an auto auction to operate such vehicle without a safety inspection from the auction to an official safety inspection station on the same day as the purchaser removes the vehicle from the auto auction if the inspection station is located between the auction and the purchaser’s residence or place of business or within a five-mile radius of such residence or place of business. HB 1232 / SB 709 Recalled motor vehicles; disclosures by and compensation of dealers. Requires a motor vehicle dealer to disclose whether a used vehicle sold at retail has been recalled and, if the used vehicle is subject to a recall that remains unremedied at the time of sale, inform the buyer of the process for remediating the recall. HB 31 / SB 192 Automobile, commercial liability, and homeowners insurance policies; notices. Restores the ability of insurers, when sending certain types of notices, including notice of cancellation or nonrenewal of a motor vehicle, commercial liability, or homeowners insurance policy, to use mailing methods for which a certificate of mailing is obtained from the United States Postal Service. HB 870 Unfair claim settlement practices; appraisal of automobile repair costs. Authorizes the repair facility or the insurer making the appraisal of the cost of repairing an automobile that has been damaged as the result of a covered loss to prepare an initial repair appraisal, which may be the final repair appraisal, on the automobile either from personal inspection of the vehicle by a representative of the repair facility or insurer or from photographs, videos, or electronically transmitted digital imagery of the automobile. spring 2016 | The Virginia Independent News | 9
AROUND THE CO District 2 Richmond Virginia
District 1 Tidewater Virginia
David Gripshover District 2 President, Crown Motors
Jamie Davis District 1 President, Davis Auto Center
district 1 Winter storm Jonas could not stop District 1 from having a great meeting January 27, 2016 at Frankie’s Place for Ribs in Virginia Beach, Virginia. While the rest of the state was still digging out, the Hampton Roads area was spared the massive amounts of snow and ice that our fellow dealers had to contend with. A special ‘Thank You’ to Alvin Melendez for attending our meeting and helping recruit membership in our area while the rest of the state was snowed in. He knows he can always come to the beach for great weather! Our meeting was sponsored by one of our newest VIADA members, Bob Phelan, from Atlantic Auto Aid. Bob was on hand to show the dealers in attendance how easy it is to install and track a SVR GPS unit. He brought along his expert installer Steve Marques, his attorney Paul Hedged, and Gene Eller from the Virginia Beach Teachers Credit Union. They gave the dealers insight into GPS policies and customer rights, as well as answering questions from our attendees. Bob is currently in the Hampton Roads area, but will be expanding throughout the state. He can be reached at bob@ atlanticautoaid.com or 757-576-1628. Since it was our first meeting of 2016 we also selected our District 1 Quality Dealer for 2016. We asked Tim Byrd with DealerRe to attend and speak on behalf of the award. Tim has sponsored the award for many years, and share with those in attendance how special this award is to him. Every dealer in VIADA is a Quality Dealer, Tim noted, and he is honored to be part of this great organization. Past Quality Dealers in attendance included: Charlie Bryant, Don Boucher, Alvin Melendez, and Weldon Whitehurst. We did not want Don Boucher to relax this year as Chairman of the Board for VIADA, so we nominated him to represent District 1 for the Quality Dealer award. He graciously accepted.
District 2 President David Gripshover introduced District 2’s CarLotz and Better Vision Detail & Car Spa and continued the program with a report of the most recent MVDB meeting. Violations considered by the Board included not identifying themselves as a dealer in advertising, consumer complaints, vehicle registrations, safety inspections, recordkeeping, open titles, and other dealer practices. The following new members were welcomed into the association: Autolinc, Inc., Blue River Motors, LLC, Bucket Auto Sales, Car Castle, Carnet, Exclusive Automotive Group, For-Hire Auto Sales, LLC, Friendly Motors, LLC, Nash Auto Sales LLC, One Direction Motors, and Prime Choice Auto. A legislative report was given to include VIADA’s HB 507 to clarify dealers can drive vehicles from auction directly to an inspection station, their place of business, or home without a valid inspection sticker. The bill has passed the House unanimously. A second bill will raise the amount required under the mechanics storage lien from $800 to $1,000. Clarification language for this section of Code has been requested for the 2017 General Assembly session. A third bill is being proactive by informing customers of the recall status of the vehicle they are considering purchasing; whether or not there is a recall and if it has been repaired. The bill further required a form be completed and signed by the customer. This provision to require consumers to sign a form was stricken from the bill. VIADA Field Representative Alvin Melendez discussed the importance of resolving consumer complaints quickly before they become a costly lawsuit. He spoke of the importance of checking the VIN on each inventory vehicle through NHTSA’s website “safercar.gov” before selling. He shared some of the problems he sees at dealerships that could result in violations during
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a MVDB inspection. He further explained the in depth segments of the Auction Workshop he teaches every two months on site at Manheim Fredericksburg. Dean Fleck of CarLotz explained how they can assist dealers by consigning overaged vehicles that are not selling on the lot, vehicles dealers have given inflated values on trade ins in order to save a deal, or just to have it placed in a new setting. They only take consignments. CarLotz conditions the vehicles for sale, sells the vehicle, and then settles with the dealer. Jay Lee of Better Vision Detail & Car Spa has 15 employees who work at the dealer’s lot or have vehicles brought to their shop. The vehicles are cleaned inside and out and touch up areas that are not eye appealing in order to make the vehicles front line ready in appearance. He also has Better Vision Car Care Products. District 3 Roanoke Virginia Brad White District 3 President, Bluegrass Auto Sales
district 3 The meeting got started right on time at 6:30 pm and Sonny Arrington thanked and introduced our guest speaker/sponsor for the evening George Lester from Edward Jones Investment Group, VIADA’s Field Director Alvin Melendez, and representatives from Greensboro Auto Auction and Roanoke Auto Auction. John Porter took the time to report how much money dealers are getting back from the Advance program and the amounts were amazing. He also mentioned that Auto Parts International, another line owned by Advance wants to come into the program as well. - he is working on the final details to make that happen. Barry spoke about the membership and how VIADA as a whole is maintaining at over 1,000 members which is outstanding. He mentioned that we lost a few dealers due to retirement but that we need to be more diligent in signing more dealers. Express Tag & Title and Maaco of Blacksburg were welcomed into the Association. Sonny thanked Matt McMurray for representing District 3, almost winning the award
COMMONWEALTH - it was a close race. Sonny asked everyone to gather some names in the next couple of weeks to submit for consideration for Quality Dealer. Alvin Melendez spoke about our News in Brief that was mailed to all the members and emphasized that this will be done twice a year by mail and the rest by email. Alvin also spoke about the new member Express Tag & Title, explained what they do, and to stay tune for updates in regard to pricing procedures with them. Alvin also spoke about DealerTrack and the fact that they use an IP address which precludes previous employees to print tags from any location without you knowing the issue before it’s too late; plus you can run stand-alone inquiry reports for free which tells you the whole history of a vehicle like last title number, where the vehicle was purchased, how much they paid plus how much they paid in taxes, if it has a lien, and with whom, address and name(s) of owners. It is really amazing, and it doesn’t cost anything to have it. George Lester, the speaker of the evening from Edward Jones, spoke about the market and the impact it is having. He said that every individual portfolio has to be designed differently from each other. The company is employee owned, cannot be sold, and that the company is extremely careful about whom they hire. They must go through a rigorous training that only a few survive the trial period. He said that when you call for advice you get your guy all the time and he will advise you on what and when you have to make a move. He is very pleased to be the advisor for VIADA and many of the members of the Association. He is currently managing around 85 million dollars in assets. Joe Tate spoke about the latest news at the MVDB. He mentioned that the number one reason why dealers end up in front of the Board is because of a consumer complaint, so take care of them before you have a hefty fine in front of you. The major reasons for penalties were: • Consumer complaints • Print on demand violations • Car inspection violations • Not insuring all your D tags • Recordkeeping violations • Over charging on DMV fees • Deceptive acts (advertising) Joe reported that the Board is interviewing Bruce’s replacement and
that is not an easy task. He is going to be hard to replace. District 4 Northern Virginia rob fisher District 4 President, Northside Auto Sales
district 4 As we move into 2016 I would urge all dealers to get involved with the Association. There are so many resources to draw from within VIADA. A few that quickly come to mind are: legal guidance, continuing up-to-date educational opportunities, discounts on forms and marketing materials, discounts at many auto auctions across the Commonwealth, representation on the Motor Vehicle Dealer Board in Richmond, and governmental awareness through our lobbying efforts. VIADA Legislation Day was held in Richmond on January 21st. District 4 was represented by Andy Gurowitz, Alvin Melendez, and Dale & I. The Virginia contingent of 15 sat in on a Transportation Committee Meeting which was very interesting. We were then able to break away and meet with our respective delegates and senators. It was very important to have been able to get an audience with these lawmakers so we could tell the VIADA story, promote legislation that may affect our industry, and voice any concerns we may have. Thanks to Lois Keenan and Jamie Davis for arranging these meetings for all the dealers who attended. After visiting the General Assembly we returned to the hotel and held our quarterly Board Meeting. Due the pending snow storm a lot of business was squeezed into the night so that members could return home safely. I wish my fellow dealers a very productive and profitable 2016. As always, please feel free to contact me with any questions or input for future District 4 meetings. District 5 Southern Virginia SAmmy Wright District 5 President, Church Street Auto
district 5 President Sammy Wright made a last minute call to proceed with
the meeting pending reports that members would be safe on the road following the snow and black ice experienced over the weekend, but only the speakers were unable to attend. Jay Bostain, representing Carmax who sponsored the meeting, introduced unique buying opportunities available at their auction that members appreciated exploring. He emphasized the many ways dealers can benefit by doing business with their auction. There were many questions from attendees and as many answers from Jay. Riverside Motors was welcomed into the Association as a new member. Mac Ragans of Ragans Auto Sales in South Boston was asked to use contributions from the District to benefit the needy around the South Boston area for Christmas. He reported that they combined their efforts with the Retail Merchants and found a group of children who were homeless and sleeping in cardboard boxes. They found shelter, clothing, shoes, etc. for many of the children. The VIADA State Office report concentrated on the bills before the General Assembly that would affect independent dealers. The most challenging being the recall bill which is designed to be proactive in allowing dealers the privilege of selling vehicles with open recalls as long as there is full disclosure so customers can make informed decisions. The next meeting will be May 17 when the State Police will present their H.E.A.T. Program (Help Eliminate Automobile Theft).
District 6 Western Virginia district 6 As this article is written, we are missing Matt Stevens who is now employed outside the auto industry and recently resigned as President of District 6. We are grateful for the time we had to enjoy his leadership and innovative ideas for meeting programs and articles he wrote for Around the Commonwealth. Thanks to John Taylor of Regional Auto Sales in Madison Heights and Lynn Martin u Continued on Page 15
spring 2016 | The Virginia Independent News | 11
Reconditioning a Vehicle BY Jason Adams & Dr. Christine Wolfe, ABCDieselZ.com When you are in the used vehicle business, if your goal is to establish a business that will withstand the tests of time, you will want to build a reputation for selling quality, reliable vehicles. As an owner of a used vehicle lot, you also want to maximize your profit. These two goals are not counterintuitive of each other but can complement each other. One way to establish an excellent reputation and maximize profits is to recondition vehicles as you bring them into your inventory. Reconditioning a vehicle takes detailing to a higher level. What is Reconditioning? Vehicle reconditioning begins with complete detailing. Complete cleaning of the vehicle inside, outside, under the hood, and undercarriage and then adds such things as headlight restoration, rock paint chip repair, plastic trim restoration, cigarette burn hole repair, vinyl and leather repair, carpet dying and rejuvenation and foul odor-removal. How Do You Assess? Any successful vehicle dealership owner will tell you that people value the overall physical appearance of a vehicle. While the importance of the mechanical well-being of the vehicle is important, you only get one chance to create an “A+ First Impression”. Essentially there are two very different assessments you will want to conduct in the assessment stage. Assessment 1. To create that “A+ First Impression”, you will want to determine whether you will recondition vehicles, and if so, will the work be done internally or through
outsourcing. You will want to do a cost analysis to determine if your business should invest the time and effort to train an internal staff member or if it is more fiscally sound to outsource the work. Assessment 2. If you determine that you will have an internal staff member, they will need to be thoroughly trained in how to effectively conduct a cost analysis of the specific types of reconditioning needed in order to restore used vehicles to their “former glory”. If you are unable to do this work internally, you will need to outsource this work. Whether the work is done internally or through outsourcing, the reconditioning assessment should be completed prior to finalizing vehicle acquisition. You do not want to bring inventory into your business, plan to recondition and not know the total cost to do all of the reconditioning necessary. The Reconditioning Begins Once the vehicle becomes part of your inventory, and you plan to do the reconditioning, what do you do? If the work is outsourced, you will need to establish business relationships with individuals who not only have the knowledge, skills, and abilities to do the work, but whose business values are complimentary to yours. If the reconditioning is to be completed internally, the individuals will need to have the knowledge, skills, and abilities to complete the work, just as with outsourcing. Having the right tools, equipment, and materials are also critical to
a successful reconditioning job. However, what will set the overall quality of reconditioning apart from most is the level of attention to detail, expertise, patience, perseverance, and focus. Conclusion People value things that “look nice”. Plain and simple. It doesn’t matter if the item is new or used, if it looks nice, people will like it and buy it. In today’s economic times, more and more people are finding that a new vehicle is no longer an option. Consumers should be able to have a quality used vehicle that looks nice and is dependable. Common sense tells you the future dependability of the vehicle cannot be foreseen. No matter what mechanical repairs you or a previous owner have done, you can’t foresee if the vehicle will last for one mile or a million miles. The appearance, however, is something over which you have 100% control; this is where reconditioning comes in. Amongst many other factors, reconditioning plays a vital role in establishing and maintaining an “A+ Reputation” as a used vehicle dealer. The level of reconditioning that your dealership does will be a direct reflection of you, the owner. At the end of the day, it’s the name and reputation of the dealership owner…of what value is that to you? Submitted by Jason Adams & Dr. Christine Wolfe ABCDieselZ.com
Upcoming VIADA Events APRIL 2016 16 VIADA Board Meeting MAY 2016 3 Tuesday – District 6 Meeting 4 Wednesday – District 4 Meeting 9 Monday – District 8 Meeting 9 MVDB Meeting 16 Monday – District 3 Meeting 17 Tuesday – District 5 Meeting 19 Thursday – District 7 Meeting 25 Wednesday – District 1 Meeting 30 Memorial Day – State Office Closed 24 Tuesday – District 2 Meeting
JUNE 2016 20 Monday – District 8 Meeting 13-16 NIADA Convention - Las Vegas, NV
15 16 18
JULY 2016 11 MVDB Meeting 18 Monday – District 3 Meeting 26 Tuesday – District 2 Meeting 27 Wednesday – District 1 Meeting
SEPTEMBER 2016 5 Labor Day – State Office Closed 19 Monday – District 3 Meeting 27 Tuesday – District 2 Meeting 28 Wednesday – District 1 Meeting
AUGUST 2016 TBA District 3 Picnic 2 Tuesday – District 6 Meeting 3 Wednesday – District 4 Meeting
OCTOBER 2016 20-23 56th Annual Convention & Expo - Sheraton Roanoke Hotel
Monday – District 8 Meeting Tuesday – District 5 Meeting Thursday – District 7 Meeting
** All dates are subject to change — For the latest information, check our website at www.viada.org **
12 | The Virginia Independent News | spring 2016
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spring 2016 | The Virginia Independent News | 13
Why Compressors Fail/How to Kill a Good Compressor? BY JOE THERRES, AUTOPART International Compressors do not typically fail unless they are installed into a hostile environment. The number one reason for failure of factory installed or replacement compressors is lack of lubricant in the compressor, and the number one cause of lack of lubrication is a reduction in proper refrigerant charge, mainly from small leaks over a period of time. Lubricant issues can result from not adding sufficient lubricant prior to installation, not adding any lubricant at all, failure to properly recharge the system with dedicated flush machines, or adding too much lubricant by not properly flushing the system prior to installation. The wrong type of lubricant – any oil other than PAG oil for 134A systems or mineral oil for R12 systems –can also lead to failure. An important fact techs should know is the 10/50 rule: A 10% reduction in refrigerant charge reduces oil circulation by over 50%. This reduction in lubrication increases friction, which in turn can burn out the clutch bearing and lead to failure.
CLutch failure due to lack of lubricant
Each Tube = 21 Flow Orifices @ .015 in
Refrigerant Flow The number one cause of flow restrictions is the inability to remove all contaminates and debris. Improper refrigerant flow in a replacement condenser is usually a result of flow restrictions in the inlet side of a contaminated condenser. These restrictions greatly increase the temperature and the pressure on the discharge line which will starve the compressor of cooled vapor and essential lubricant. The evolution of the condenser design has resulted in flow passages that are smaller and smaller, now usually around 15-20 thousandths of an inch, in both expansion valve and orifice tube A/C systems. Most condensers produced in 1998 and after require dedicated flush machines due to the newer design.
Debris and contaminants, including air and moisture, more easily blocks these passages which affects lubricant flow. This is a death sentence for compressors. Some shops today do not have accurate means to properly flush out these systems. Unless shops are using up-to-date dedicated flush machines that have the ability to flow large quantities of flushing solvents for long periods of time, then they are not removing all of the contaminates. There is always debris in the system after a compressor failure, so an Total System Failure Due to A/C kit is really what the installer needs to correct the issue for good. Residual Flush Chemical in System Replacement of the condenser is the only way to guarantee that all contaminates and debris are removed from the A/C system. In a 134A refrigerant system, the margin of error installers have when adding refrigerant is 5% of the nominal charge rate. The way systems were charged in the past is now obsolete, yet some techs are still doing it the same way and it is insufficient. There is less wiggle room for error, so if the tech is merely estimating how much to add, they are probably not adding enough. The amount remaining in the gauge set at the end of a service can affect the accuracy of the refrigerant charge. Older equipment does not compensate for the refrigerant left in the gauges. Use of A/C Sealant ‘Stop Leak’ The use of A/C sealant or any ‘Stop Leak’ product is a band-aid method and is not recommended as a solution to the overall problem. In time, the use of this will result in compressor failure. The pictures show misuse of Stop Leak, causing 14 | The Virginia Independent News | spring 2016
a hard crystalized substance and a gellike substance in the compressor. The compressor in the picture on the right was only installed for two months and was sent back as a major compressor failure. Too much Stop Leak was used and ultimately led to the failure.
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of L & B Auto Inc. in Rustburg for helping plan the next meeting for its members. Conversations in this area report that, according to some lenders, a number of consumers are using their tax refunds to pay off loans rather than purchase vehicles. On another note, dealers who are displaying banners and signs advertising that they are using a tax service, whereby consumers can file taxes through this program at their dealerships, seem to have more traffic on their lots. Reading industry news magazines and other publications, whether in paper form or online, will help you stay abreast of the changes and opportunities to revamp your business decisions utilizing the digital age, online vehicle purchases and sales, social media, etc. Attending Dealer Day as advertised in this issue will give you a head start. If you cannot attend, perhaps you have an employee who could explore new ideas, on your behalf, to expand your business. District 7 Shenandoah Valley Virginia Eddie Haley District 7 President, Rt 11 Valley Auto Sales
A way you can test if there was a compressor failure is by using a Digital Voltmeter (DVM). When testing the coil, the DVM should read between 3.2-4.2 ohms of resistance. If it is higher than 4.2, the coil is weak and requires too much voltage to engage the clutch. Yet another way to test the compressor is by measuring the air gap, which should be between 15-25 thousandths of an inch. If it is too narrow the driver plate may come into contact with the drive pulley. If it is too wide the coil won’t be strong enough to drive the pulley.
air gap changed due to installer damage
DISTRICT 7 The District 7 area members will gather again in a few weeks to meet and discuss ways to finance inventory needs and share current events. In the meantime they join forces in the search for inventory in their price range. While some sales success is tied to tax refunds, it seems that dealers offering vehicles $10,000 and below are getting the most traffic. The search for supplementing inventories is driving more traffic to the auctions. In addition to auctions, dealers are buying from other dealers, counting on trade ins, and purchasing from other consumer contacts. The higher pricing of trucks continues to be a challenge. VIADA’s fifth Dealer Day is scheduled for May 10 in the Richmond – Midlothian area as you will see in this issue. Learn more about online inventory, how to drive traffic to your lot, or even sell in other countries while sitting in your office. The era is here, the opportunity for increased sales is here… how can this become a part of your future success? Register today to find the answer! District 8 Southwestern Virginia Steve Wingo District 8 President, Wingo Automotive
DiSTRICT 8 District 8 will be meeting after the deadline for this magazine has passed. While the economic situation remains slow in our area with the effects of the coal industry, it is still refreshing to have the wintery weather conditions turning into spring – always lifts the spirits! As in all districts, some of our members are seeing increased business resulting from tax refunds. Those are the smiling dealers at the moment. Some of the dealers are struggling with insurance companies who choose not to pay claims on BHPH vehicles that have been totaled. If you are not getting results from your local insurance agent(s), go online to find the 800 # for their national/regional claims department and call to see if you can get results – it is worth a try! All fingers point to VIADA’s Dealer Day on May 10. There are ways to reach outside your area for sales opportunities. We encourage you to complete the registration form in this magazine or go to www.viada.org to sign up online, enjoy the early bird savings, and expand your business all at the same time!!!
spring 2016 | The Virginia Independent News | 15
Tuesday, May 10, 2016
Dealer Day Sign up online at www.viada.org
Symbol of Quality
Schedule & Subjects 8:30 AM Registration - Visit Vendors 9:00 AM Evolution of the Automotive Sales Industry Unlocking the Secrets of Mastering Internet Sales 9:50 AM Topics and Trends in Employment Law Compliance for Automobile Dealers A Review of Trending Employment Law Issues and Common Pitfalls in Compliance Faced by Automobile Dealers 10:45 AM
Break – Visit Vendors
11:15 AM
Why a Business Plan? Getting Lenders to Say “YES”
12:00 PM Lunch – Visit Vendors 1:30 PM The Money Mind Mapp A formula to Increase Monthly Sales 3:00 PM Manage Your Online Reputation Drawing Customers to Your Dealership Using Online Reviews 4:00- 5:00 PM
Final Visit With Vendors
1:00 – 4:00 PM Titling & registration Workshop The Answers to Questions Title Clerks are Asking
Bring your title clerk and office manager for the Titling and Registration Workshop featuring Sheila Stephens who oversees title work for DMV and Pete Iaricci, VIADA’s Director of Education. Allow them to answer your questions about Powers of Attorney and Reassignments, “Title Held”, non-negotiable titles, and handling out-of-state titles so they can speed up the titling process for your dealership.
VIADA’s Fifth Dealer Day is designed to focus on dealer concerns of “how to find customers and sell more vehicles.” The basics remain the same, but to gain more share of the market, the approach has taken a drastic leap forward to the age of technology. The internet has become a level playing field for all dealers regardless of size. How do you fit in this picture? How do you attract new customers? How do you sell to these new customers once they contact you via internet/ email? How do you protect your reputation online? Then back at the store, do you have a business plan to make a good impression with lenders? Are you up-to-date on new employment laws and prepared forVirginia an aggressive auditNews by Department of Labor? ….. 16 | The Independent | spring 2016
Controlling Your Future Beginning today... May 10th is the day that will make a difference for you. Register before April 15 and save!!
A
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TO
VIADA’S DEALER DAY
y
Tuesday, May 10, 2016 • 8:30AM - 4:00PM SIGN UP ONLINE AT WWW.VIADA.ORG
DOUBLETREE BY HILTON HOTEL RICHMOND - MIDLOTHIAN 1021 Koger Center Blvd, Richmond, VA 23235 For hotel reservations call (804) 379-3800, $129 per night, plus tax. Includes free parking. R E G I S T R AT I O N I N F O R M AT I O N : _____________________________________________________________________________________________________________________ Name
Company Name
_____________________________________________________________________________________________________________________ Address (Street)
_____________________________________________________________________________________________________________________ City, State, Zip
District #
_____________________________________________________________________________________________________________________ Phone #
Cell #
Fax #
_____________________________________________________________________________________________________________________ E-mail
Food Allergies?
Wi-Fi Required?
q YES / q NO
Early Bird Pricing – valid through April 15! Full Registration
Title Workshop Only
Full Registration
MEMBER
$99 $149 - Add’l $99 $69
1:00 PM - 4:00 PM
NON-MEMBER $199
MEMBER - $69 Additional - $49
$149
NON-MEMBER - $99
Additional Employees (Members Only)
Employee Name:____________________________________________________________________________________________ Employee Name:____________________________________________________________________________________________
PAY M E N T I N F O R M AT I O N TOTAL AMOUNT $ ______________ Check Enclosed (Please make payable to VIADA) q VISA q
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V-Code (3 or 4 digits on back): ______ Credit Card Billing Street #: ______
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Credit Card Billing Zip Code: ______
I _____________________ understand that if I cancel my registration, $50 will be forfeited.
Who Else Wants to Stop Wasting Time and Money on Useless Advertising, and Maximize Profits Using the Effective Strategies that are Working for 2016? If that’s you…this is a must-read. Advertising reps hype the concept that they are selling. They say their concept is “the one” you need. Much of the time these reps are good at selling to YOU but NOT to your customers. In other words, the rep knows how to sell an ad to you but not how to attract more customers for you. Much of the advertising and marketing that reps push on dealers generates comments from your family, friends, employees, and some existing customers. Unless those people are buying from you, a better target is a group of people who are ready to buy soon. This is a confusing concept to advertising reps. Their goal is to make sure YOU like the look and feel of the media/message instead of what the goal should be – to generate more leads and sales. Your marketing/advertising should target people who are ready to buy. The media and message being used should lead them to do so. The main question to be answered is, “Does it lead to more sales?” — not more likes, followers, viewers, comments, smiles, and ego-boosting emotion. Banks still do not except deposits other than money – therefore, sales is the goal. Your existing situation, strategy, systems, and market should be diagnosed in a strategy session prior to investing another dollar in any marketing/advertising. Imagine a doctor prescribing the same pill or health regimen for any and all ailments without a diagnosis. That doctor would be accused of malpractice for putting the patient’s health at risk. The purpose of a Strategy Session is to identify strategies, tools, and opportunities for you to capitalize on — or adjust — to make your marketing/advertising more effective and efficient. A Strategy Session is not for you if your mind is completely closed to new opportunities to increase your profits by using strategies that are “outside the norm,” or if you or a team of decision-makers are easily offended by changes to existing marketing, advertising, and communications. A Strategy Session is for savvy dealers who desire more Kenny Atcheson was the keynote speaker profits by using cutting-edge strategies along with maximizing simple approaches. at VIADA in 2015 Examples from dealers who invested in a Strategy Session with Kenny Atcheson: • A Virginia dealer was ready to invest a significant amount of time and money into something that well-meaning Twenty Group members said was a “good idea.” It was a complete waste of money. He was happy that Kenny explained why – saving him thousands of dollars and plenty of frustration and headaches. • A Texas dealer was spending $12,000 per month on a media venue where he was unsure about the ROI. After meeting with Kenny, he cut his budget in half and re-deployed money into something else for much better results. The effects were so successful that he asked Kenny to turn the “Marketing Machine” down for a bit while he loaded up on more inventory. • A Louisiana dealer took $4,200 from one media, placed it into another and reaped 5-7 times the online application leads as he was previously getting. • A Missouri dealer whom Kenny met with recently was spending $50,000 – $70,000 in advertising. He is in the process of re-deploying $27,000 per month into a previously missed opportunity instead of letting it go to waste using the previous strategy. Kenny is confident that there will be a considerably higher return on investment. Results to come… To find out if a Strategy Session is right for you: • Call (702) 992-0825 to leave a message and request a free, 15-minute consultation with Kenny Atcheson • Go to www.DealerProfitPros.com/discovery-and-diagnosis P.S. Before you waste another nickel on advertising that is not working or before you miss another opportunity that could be had today – contact us. 18 | The Virginia Independent News | spring 2016
Google Adwords PPC Versus Every Other Form of Advertising BY Kenny Atcheson, Dealer Profit Pros, Founder Google PPC ads are what you see after someone uses Google and searches for “car dealer.” Generally, you will see three ads at the top and eight down the right hand side. These are pay-per-click ads; as the advertiser you only pay when someone clicks on your ad. Hence the pay-per-click. Nearly all other forms of advertising include some waste. You will be advertising to people who: • Are completely outside of your target • Just purchased • Aren’t really interested • Are loyal to a competitor Google PPC allows you to eliminate a great deal of waste that is common with most forms of advertising. Here’s why: • You determine the target. You are not forced to advertise to an entire segment of the market just because the media has already decided the target area. • You can monitor, tweak, adjust, and re-deploy ads at will. You can change ads daily if necessary. • You can test continuously. Try an ad. If it doesn’t perform, cancel it and try a different ad. • You determine the budget on a daily basis. The biggest knock on Google PPC is that it is challenging to use. That’s why it doesn’t typically work as well when an employee at the dealership runs the platform. That is not to
demean anyone — if they run your ad platform, sell cars, upload photos of cars to the website, manage the CRM, and any number of other things, they probably don’t have the expertise or time to use the Google PPC system for maximum results. The system changes pretty regularly. Someone who wears too many hats may not be able to keep up with all of the changes. If an outside company is running your ads, watch for these things: • Make sure they don’t make the mistake of using Google PPC like a branding platform. It’s not. • The targeting should be spot-on. There is no need to try and push a Fiat on someone who searches for a “4X4 truck.” • They should be the advisor. It’s your money, so you get the final decision. But someone managing your ads should know more about the platform than you do. They should advise you on the most effective targeting and use of your budget. (Prior to us taking over their ads, I’ve had clients who told the company that managed their Google PPC ads to advertise to everyone – like a branding ad using mass media. As a result, the company simply ran the ads without offering advice. It could have been the PPC manager’s lack of confidence, but either way, everyone loses in that scenario.) What to do next • Start using Google PPC. • If you are already have Google
PPC ads running, ask another expert to critique your ads. It should be someone who can put it in plain English — not Googlese. If the person who runs your ads truly cares about your advertising success, they will welcome another set of eyes. They may also appreciate the training if they learn something new. •
Hire a professional to run your ads (keeping in mind what you read in this article.)
Quick Hint→ If you choose to hire someone to run your Google PPC ads, ask them what is most important when running these types of advertisements. They should answer, “the target.” I tell dealers to ask the same question when hiring a copywriter to write direct mail ads. In both cases, the ad itself and the copy are important, but you can’t sell steak to a vegetarian. You can’t sell a Fiat to someone who has their heart set on a 4X4 truck. Kenny Atcheson is the president of Dealer Profit Pros and author of Marketing Battleground. Kenny teaches workshops, speaks at conventions and 20 Groups, and his company offers several marketing and advertising programs including a Newsletter Program, a Feedback & Review & Complaint Management System, Pay-Per-Click Management, Direct Mail Campaigns, Copywriting, and Private Consulting. His website can be found at www. DealerProfitPros.com
VIADA is now on facebook and LinkedIn. Our blog is also active and easily accessed through our website. Please “like”, “connect” and read us for current news, industry updates, cool pictures, serious issues and lighthearted bits. We’d love to hear back from you too!
Symbol of Quality
www.facebook.com/infoviada
www.linkedin.com/company/virginiaindependent-automobile-dealers-association
www.viada.org/members/blogs
spring 2016 | The Virginia Independent News | 19
announcing viada’s new member benefit provider!
congratulations!
EXPRESS TAG & TITLE was recently selected by VIADA’s Board of Directors as it’s newest Member Benefit Provider. Express Tag and Title, a Virginia based company, provides a knowledgeable staff who are available to assist with your DMV work in the states of Pennsylvania, Maryland, West Virginia, Virginia, North Carolina, South Carolina and Florida. Call them toll free at 855-7198060 to take the hassle out of your DMV needs!
don’t forget !
viada | 2016
ip directory
MeMbersh
|1
Don’t forget to locate your new VIADA decal in your 2016 Membership & Service Directory.
20 | The Virginia Independent News | Spring spring 2016
Congratulations to Robert Fisher of Northside Auto Sales in Manassas and Michael Bor CEO of CarLotz, Inc. in Richmond who were recently appointed by the Governor to serve on the Motor Vehicle Dealer Board, and Ted Bailey of All In One Auto in Chesapeake was reappointed for an additional term.
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the vehicle, the odds to sell the vehicle are less than 33%. Be present on the block, announce your vehicle properly, and your conversion rate in the lanes will increase in short time frames. Buyer: As a buyer in an auction setting your due diligence prior to an auction is far more important than in the lanes bidding on the vehicle. There is a direct correlation between researching each vehicle prior to auction and the arbitration of a vehicle in an auction. • Perform your research on each vehicle you want to potentially bid on well before the auction sale day. Run all historical reports before the auction sale day thus eliminating any surprises. • Inspect your vehicles - Either through the auction websites or in person to verify your reports. In my 24 years of experience there is a direct correlation between a buyer not performing any historical research or inspecting the vehicle, then buying that vehicle at an auction and ending
•
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up having arbitration issues. Get to auction on sale day early to inspect vehicles and complete your due diligence on your potential vehicles you want to bid on. I see it time and time again when a dealer arrives late to an auction and quickly buys a vehicle within a short time frame of their arrival; they usually have difficulties with vehicle in arbitration. Know your arbitration manager at your auction, read their policies, get informed, ask questions with the auction management, know your sellers and ask them any questions you have. Auctions are relationship providers between buyers and sellers. To dealers, auctions sell a service, not vehicles. Know the staff at an auction so you are more knowledgeable on all fronts. It is essential as a buyer that you understand all local auction policies and rules so you are educated on the conditions you can arbitrate your vehicles for, as education is power.
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Work with auction management when there is an issue. It is always best to have a civil conversation with the auction management when there are issues versus being loud in the process. Work on a compromise to end the arbitration process in order to maintain a healthy relationship with the auction and seller. Again, auctions are all about personal relationships, they provide a place where the buyer and seller can become aware of each other and maintain a healthy relationship on a go forward basis. Utilize the Post Sale Inspection within the auction; this peace of mind is an added value for the buyer allowing you to concentrate on bidding and purchasing vehicles in the lanes. Make sure you, as a buyer; closely pay attention in the lanes during the announcements of a vehicle then follow the in lane monitors to ensure you are aware of all conditions on the vehicle you are attempting to purchase.
Turn your insurance insurance problem probleminto intoaaprofit profitcenter! center! 2 minute minute video: video: WhyReinsurance.com WhyReinsurance.com
(804) (804) 824-9533 824-9533
AATim TimByrd Byrd&&Associates AssociatesCompany Company spring 2016 | The Virginia Independent News | 21
NEWS in BRIEF! By: Alvin Melendez, cmd
Joyce Koons GMC • Pontiac • Honda Manassas, VA
Ways To Recondition Without Breaking the Budget! A penny saved is a penny earned! It is important to shop smart and spend wisely when it comes to reconditioning your inventory. While it is a good idea to use professional grade products on certain areas of the vehicle, a generic product will do the trick in other areas. For instance, when I had my dealership, I would go to Wal-Mart to buy hubcaps. They come in all the sizes, with a variety of styles, and at $20 for a set of 4 they were much less expensive than at an Auto Parts store. The same goes for floor mats and other products. Also, using a flat or shiny spray paint for fixing hubcaps or steel wheels is cheap and easy. They even sell a special product for restoring shine to dull or faded plastic bumpers and moldings. Glass cleaner, paper towels, and shammys can be purchased at the dollar store. For the more important items like buffers, pads, heavy-duty compound, polishes/waxes, degreasers, glaze, tire shine, sticker removal spray, etc. always use a reputable vendor that specializes in professional grade products. They can demonstrate how to use the products and give you other cost saving tips. Waste and theft are two areas that often get overlooked. Vendors have various sizes available to help cut costs, like buying in bulk. Ask them based on your sales volume how much product you should purchase. Make sure your employees are trained to know when and how much of the product to use. Keep track of the volume used per week/month etc. Keep products locked up, and hold employees accountable for inventory management. Some vendors have a special locking mechanism that allows for better inventory control. By being able to buy different products from different vendors and closely monitor employee use, I was able to save thousands of dollars each year.
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Dear Alvin, Very nice job putting together the VIADA Auction Education Workshop at Manheim Fredericksburg earlier this week. I thought it was very well done and well worth my time. Thanks. - Larry Gordon, Car Ministry
”
22 | The Virginia Independent News | spring 2016
Auction Education ►► Auction Access set-up ►► Introduction to Auction staff ►► Lane Awareness • Green, Yellow and Red Light • Announcements • Types of Sellers • Auctioneers ►► Arbitration policies ►► Auction walk around ►► Review the “Must Have Apps” ►► How to Buy on Budget and Book ►► Quick class on how to look at a car • Cosmetically • Operationally • What tools are needed to properly check out a car ►► Managing / Monitoring Floor Plans • Curtailments, Titles, etc.
Introductory Price $395 Contact VIADA State Office at
(800) 394-1960
n
ry
Why Reinsurance? Tim Byrd DealerRE President / Founder (804) 824-9533 It would make sense to me that most car dealers are conservative, primarily because car dealers are Capitalists. Not to mention intrusive government is something we live with every day. We would all love smaller, less intrusive government regulations. We recognize, of course, there is and has been some very helpful things as a result of government oversight, such as seat belt or emissions directives. I am old enough to remember when bad exhaust could be seen and smelled coming out of every car. I don’t know about you, but today when I get behind a very old car, I really have trouble breathing. Most new regulations, however, have been a direct result of reining in some unscrupulous business practices. Like, for instance, the Consumer Finance Protection Bureau (CFPB). Of course, as seems true with the government, they turn loose a bunch of bureaucrat lawyers on the biggest fish, chop off a few heads to strike fear into the rest of us and end up finding less abuse than they thought. One thing plainly clear to us who have been around a while: the free market usually straightens things out. For example, let me just mention the Ford Courier, Mercury Bobcat, K Cars, AMC Pacer and VW Rabbit diesel. And that list could go on forever. I say all that to lead to this question… who are you going to vote for, for President? My opinion is that safety and a strong economy are tops on your list. That should certainly point you away from anyone who wants to put you in a 90% tax bracket. If that wouldn’t stifle just about everything in the economy, I don’t know what would. Hey, I’m not here to tell you how to vote. (However, if you call me I will give you my opinion). I do want to share with you an idea that has weathered the economy and political swings of the last 40 years.
Voting for President Reinsurance Why Reinsurance? Reinsurance puts you in the driver’s seat to be a better, more profitable dealer. Reinsurance gives you ultimate control to do what is best for your customer and your dealership. It increases your profitability with a return on investment better than any other single endeavor available to you in the car business. Since there are various versions of reinsurance, be aware that some are better than others. Whether your are a franchise dealer, traditional used car dealer, a Buy Here Pay Here dealer, or all three under one management, this advice is the same. Number 1, make sure you are setting up an Administrator Obligor reinsurance company. Rolling the dice on any other structure could be disastrous. Number 2, make sure you are dealing with reinsurance experts that know just as much about the car business you are in, as you do. In other words, not just reinsurance experts, but car business experts. No matter what type of car dealer you are, you need a reinsurance expert that can be a trusted advisor. Team up with a Reinsurance Managing Agency with the expertise to give you the sound advice that either a franchise dealer, traditional used car dealer or Buy Here Pay Here dealer must have for success. The franchise car dealer with a used car super store and a Buy Here Pay Here operation are more common now than ever before. The reinsurance experts for the franchise stores are numerous. However, how many of your franchise reinsurance experts have introduced you to an accelerated profit access program? And what do they know about your Buy Here Pay Here operation? What products do they have to offer you that solve problems and create capital in BHPH?
Further, the majority of traditional used car dealers don’t have a reinsurance company at all. Most are not aware that they can own a reinsurance company. Many are sending $15,000 or $20,000 a month off to third party warranty companies and then end up paying a claim out of pocket to keep from losing a good customer. And, most Buy Here Pay Here dealers don’t offer their customers a Vehicle Service Contract at all because they cannot afford to front the premium to the warranty company. Half of the cars financed by Buy Here Pay Here dealers are uninsured. A reinsurance company can provide premium finance to the BHPH dealer making it affordable to sell a Vehicle Service Contract or Collateral Protection. You may not take my advice on who the next President should be, but I do hope you will heed my advice on reinsurance. If you don’t have a reinsurance company don’t wait any longer. If you do, make sure those that advise you are giving you the advice you deserve. Your future business economy & security could depend on it! -Tim Byrd is an author, Founder and President of DealerRE a Tim Byrd & Associates company, a managing agency located in Gloucester, VA, a Auto Industry Expert on Dealer Owned Reinsurance Companies, BHPH Operations, Dealership and F&I Development. A 25+ year veteran of the car business, Tim is a trusted advisor to many car dealers. Tim is a sought after speaker and co-author of the #1 Best Selling book “Unfair Advantage” and the just released new book “Race to the Finish Line”. Tim can be reached at www. DealerRE.com or by calling 804824-9533.
spring 2016 | The Virginia Independent News | 23
VIADA Renewals - january 1st, 2016 - february 29th, 2016 Thank you for 56 years of continued support, William cones of dixie motors co in suffolk! 40+ Years
TAS Inc T/A TriState Wholesalers • Thomas Parsons • Mt. Crawford • 48 EF Motorsports • C Edward Falk • Chesapeake • 44 ABC Virginia Auto Auction • Jason Brinkley • Virginia Beach • 44 Courtesy Auto Sales • Don Boucher • Virginia Beach • 42 Steve’s Auto Sales, Inc • L Steve Gossett • Norfolk • 41 Pembroke Auto Sales • Thomas Joynt • Virginia Beach • 40 Price Is Right Auto Sales, Inc • Sonny Arrington • Vinton • 40
30 - 39 Years
R J Motors Ltd • Richard Jones • Hayes • 39 University Motors LLC • David Kiser • Harrisonburg • 37 Donovan’s Used Cars • Edward Donovan • Harrisonburg • 36 Cosner Brothers Body Shop, Inc • E Grant Cosner • Charlottesville • 35 A & G Auto Sales • Andreas Loizou • Virginia Beach • 31 Newmarket Motors, Inc • Mark Walker • Newport News • 31 Davis Auto Sales II • James Davis • Richmond • 31 Rt 1 Auto Exchange, Inc • Brandon Boltz • Glen Allen • 31 Jack’s Auto Sales, Inc • Jack Whitacre • Winchester • 30 Terry’s Automotive, Inc • Terry Wood • Newport News • 30 Superior Motors, Inc • Ted Bowman • Bristol • 30 Beach Auto Brokers, Inc • Brian Jones • Norfolk • 30 Dandee’s, Inc • Aaron Brewster • Cedar Bluff • 30 Larry Crigger • Larry Crigger • Rural Retreat • 30
19 - 29 Years
Greensboro Auto Auction, Inc • Dean Green • Greensboro • 29 Steve Farmer Auto Sales, Inc • L Steve Farmer • Altavista • 29 Campbell’s Used Cars, Inc • Tunis Campbell • Leesburg • 28 W. E. Smith Auto Sales • W E Smith • Afton • 27 L & B Auto, Inc • Paul Martin • Rustburg • 27 Wamsley Service Center • Neil Wamsley • Colonial Heights • 26 Shenandoah Auto Parts, Inc • Anthony Walrond • Roanoke • 26 M & M Auto Rental, Inc • Bill Moss • Dillwyn • 26 Baldwin’s Auto Sales, Inc • William Baldwin • Crewe • 26 Richmond Auto Auction • Bruce McGeorge • Richmond • 26 Ellis Auto Sales, Inc • Gina Altman • Highland Springs • 24 Key Truck & Equipment, Inc • Kenneth Jones • Keysville • 24 Auto Market, Inc • Stephen Gowens • Newport News • 24 Hess Family Auto Center • Debra Bower • Winchester • 23 Bill’s Auto Sales • Tim McGuire • Roanoke • 23 Kenny’s Auto Mart • Kenny Snyder • Harrisonburg • 22 Motley’s Car Connection, Inc • Randy Motley • Danville • 22 Wally’s Wholesale • Walter Werness • Manakin • 22 Porter’s Automotive, Inc • John Porter • Roanoke • 22 Wood Brothers Auto Brokers • Ronald Wood • Portsmouth • 22 Nu-Wheels • Harry Hall • Norfolk • 22 The Car Ministry • Larry Gordon • Falls Church • 21 Preferred Warranties Inc • Helen Sluzis • Orwigsburg • 21 Snyder’s Auto Sales, Inc • David Snyder • Harrisonburg • 21 Byerly’s Auto Mart • Michael Byerly • Powhatan • 21 Central Virginia Rental • Daniel Showalter • Waynesboro • 20 Virginia Truck & Trailer Sales, Inc • Ronald Gibbs • Ashland • 19 Woodson Auto Sales • Thomas Woodson • Goochland • 19 Car Credit Nation • Chris Maher • Winchester • 19
24 | The Virginia Independent News | spring 2016
5 - 18 Years
Earl’s Credit Auto Sales • Rick Johnson • Portsmouth • 18 Handpicked Western Trucks LLC • Mark Grehlinger • Leon • 18 Peaks Motors, Inc • Joe Tate • Bedford • 17 The Salvation Army • Jocelyn Owens • Virginia Beach • 17 Brookside Auto Sales • Jerry Kidd • Roanoke • 17 Gary McCann Auto Sales, Inc • Gary McCann • Tazewell • 17 Keysville Auto Center • Randy Claybrook • Keysville • 17 Drive Time Sales & Finance Corporation • Jon Ehlinger • Tempe • 17 1 Stop Auto • Steve Sivak • Norfolk • 16 DealerTrack • John Hancock • Groton • 16 Heritage Motor Co, Inc • Stelios Karayiannis • Virginia Beach • 15 K’s Auto Center • Howard Kershaw • Hampton • 15 East End Auto Sales, Inc • Leo Gay, Jr • Richmond • 14 Jerry’s Auto Sales • Elva Pugh • Danville • 14 New Millennium Auto Sales, Inc • Timothy Higginbotham • Glen Allen • 14 Semones Automotive, Inc • Richard Semones • Blairs • 14 Auto Center, Inc • Mark Smoot • Front Royal • 14 Ike’s Auto Sales • Jeffrey Ballard • Pulaski • 14 Auto Land Auto Sales Inc • Hamid Abdolahzadeh • Virginia Beach • 13 The Auto Connection • Michael Hughes • Norfolk • 13 LA Auto Star, Inc • Vitali Livits • Virginia Beach • 12 Hayden’s RV’S • Charles Cheek • N Chesterfield • 12 Davis Auto Sales II • Gail Davis • Richmond • 12 JTZ Enterprise Custom Website Design • John Summer • Fredericksburg • 11 Auto Max of Gloucester • Dianne Niblett • Hayes • 11 Mountain Valley Motors LLC • Linford Berry • Dayton • 11 ESG Insurance & Financial Services • Michael Warren • Toano • 11 Atkinson Truck Sales • JR Atkinson • Chatham • 11 Drive Away Motors • Tere Phillips • Ruckersville • 11 Smith’s Auto Sales • Jody Smith • Glade Hill • 10 Mack’s Auto Sales #2 • Joseph Floyd • Disputanta • 10 Ray’s Auto Recovery Sales Rental LLC • Raymond Wilborne • Ringgold • 10 NAE Federal Credit Union • Amy Stout • Chesapeake • 10 Millner Motors LLC • James Millner • Charlottesville • 10 Auto Dealz LLC • Paul Dovel • Shenandoah • 10 Collier Motors, Inc • Ned Collier • Petersburg • 9 Willow Spring Garage • Woodrow Herring • Chantilly • 9 Crown Motors, Inc • David Gripshover • Colonial Heights • 9 Car Choice • Shahab Rahimzadeh • Virginia Beach • 9 Easy Ride Auto Sales, Inc • John Hattar • Chester • 9 GoldStar Motor Co • Thomas Maad • Winchester • 9 Tim Byrd & Associates, Inc, DealerRE • Tim Byrd • Gloucester • 9 Sinclair Communications • Chris Lagey • Norfolk • 9 Ace Motor Acceptance Corp • Russ Algood • Matthews • 9 Purcellville Motors, Inc • Russell Weaver • Purcellville • 8 Scott’s Cars • John Martin • Vinton • 8 Mobility Supercenter • Kaye Crenshaw • N Chesterfield • 8 Noland Company Drilling Equipment • Virgil Bruinekool • Roanoke • 8 Bailey’s Auto Sales • Bobby Bailey • Cloverdale • 8 Hunting Hills Motorcars • Gary Yamine • Roanoke • 7 Shore Drive Auto World • William Robinson • Virginia Beach • 7 Piedmont Motors • Mack Chehreh • Warrenton • 7 Airport Auto Sales • Steve Brown • Stafford • 7 Village Auto Center, Inc • John Serrell • Harrisonburg • 6 Abingdon Auto Specialist, Inc • Joe Scroggin • Abingdon • 6 Brookeview Motors, Inc • Barry Riddleberger • Roanoke • 6 Liberty Motors • Hassen Allani • Chesapeake • 6 Mount Landing Sales • Gene Sydnor • Tappahannock • 6 Culpeper Recycling LLC • Jacob Klitenic • Culpeper • 6 Mink Motor Sales, Inc • Jerry Mink • Galax • 6 Long Island Motor Sales LLC • Clinton Hall • Long Island • 5 Fastlane Performance • Kim O’Conner • Roanoke • 5 Ideal Auto Sales LLC • Stephen Wyrick • Troutville • 5 Chartwell Motors • Jerry Clark • Clifton Forge • 5 60 West Auto Sales • Mike Daggett • Richmond • 5 West Truck Sales & Service • Donna Davis • Chesapeake • 5 J. D. Byrider of Richmond • Craig Baker • Richmond • 5 BNH Auto • Mac McManus • Ashland • 5
VIADA Renewals - january 1st, 2016 - february 29th, 2016 5 - 1 Years
Beverage Tractor & Equipment, Inc • Charlie Beverage • Stuarts Draft • 4 Autos By Choice, Inc • Jason Adams • Fredericksburg • 4 Fred’s Executive Auto • Fred Abbasi • Woodbridge • 4 Elite Motors • Savvas Sakkadas • Virginia Beach • 4 NextGear Capital • Lori Kahre • Carmel • 4 Action Automotive Pre-Owned Cars • Muhammad Faroaq • Alexandria • 4 Royal Auto Sales • Necip Gulben • Portsmouth • 4 Murphy Motors • George Murphy • Mineral • 4 G & J Motors LLC • Owen Johnson • Richmond • 4 East Coast Auto Sales LLC • Sante Deserio • Virginia Beach • 4 My Car LLC • Mike King • Virginia Beach • 4 Noor Motor, Inc • Buzarg Sayeed • Fredericksburg • 4 CC Capital LLC • David Putnam • Chevy Chase • 4 2 Amiga Auto Sales LLC • Elsa Hite • Virginia Beach • 4 Cavalier Motor Works LLC • Robert Buck • Pound • 4 Campbell Equipment Inc • James Campbell • Palmyra • 4 Express Motors • Joe Habr • Virginia Beach • 4 Augusta Sign Co • Mark Hackley • Waynesboro • 4 Garrett Motors, Inc • Ronald Garrett • Hampton • 3 Nixon Auto Sales, Inc • Peter Nixon • Virginia Beach • 3 1st Choice Auto Sales, Inc • Leslie Tibbitt • Newport News • 3 B & M Motorcars • Vasily Mulyar • Leesburg • 3 Best Motors, Inc • Sudir Dutta • Fredericksburg • 3 Unique Auto Sales & Repair • Kirk Higginbotham • Richmond • 3 Certified Car Center, Inc • Hamed Rod • Fairfax • 3 Lighthouse Truck and Auto LLC • Robert Hart • Dillwyn • 3 Blankenship Auto • Robert Blankenship • Accomack • 3 Carz Unlimited LLC • Krystal Niles-Smith • Richmond • 3 Park Drive Motors, Inc • David Johnson • Fredericksburg • 3 CarDirect LLC • Brian Jones • Virginia Beach • 3 Auto Chiefs, Inc • Raj Lal • Fredericksburg • 3 Benson Quality Cars • James Benson • Petersburg • 3 Duke’s Auto Sales • Doug Harris • Richmond • 3 Cars for Sale, Inc • Mirna Rubio • Dumfries • 3 Star City Car Sales • William Roberts • Roanoke • 3 Davis Auto Center, Inc • Jamie Davis • New Church • 3 Wayne Talley Auto Sales • Wayne Talley • Lancaster • 3 Wise Motors • Wais Abbasi • Fredericksburg • 3
The Car Man Company • Victor Moes • Henrico • 2 M & M Auto Sales • Michael Mozingo • Culpeper • 2 Manassas Auto Truck • Mike Aghili • Manassas • 2 R C Restoration & Repair, Inc • Ricky Conner • Salem • 2 Top Auto Sales • Brenda Tharp • Petersburg • 2 Escro Motors II LLC • Jose Trigueros • Richmond • 2 Car Web • Farshad Fakhriyazdi • Fredericksburg • 2 Cars 4 Best • Baber Chaudhry • Stafford • 2 VIP Auto, Inc • Hamid Sawez • Fredericksburg • 2 CARRVA • Amine Chafi • Richmond • 2 GN Auto LLC • Gaby Touma • Chantilly • 2 EcarGarage • Brenda Withrow • Fredericksburg • 2 North King Auto & Cycle Inc • John Grosso • Hampton • 2 Carex Inc • Zeke Pryor • Fredericksburg • 2 Scott’s Auto Wholesale LLC • Scott Breon • Locust Grove • 2 First Landing Auto Sales LLC • Mark Anderton • Virginia Beach • 2 New Testament Automotive Ministry LLC • Gary Proffitt • Moneta • 2 Hill City Auto Sales LLC • Sean Hardy • Lynchburg • 2 Friedman Associates • Neil Friedman • Virginia Beach • 2 DJ’s Auto Center LLC • Dennis Jack • Covington • 2 Monticello Motors LLC • David Treccariche • Charlottesville • 2 Select Imports II LLC • Karen Cavallaro • Portsmouth • 2 MTK Auto • Michael Wiggins JR • Richmond • 2 Approved Auto LLC • Adam Tanoukhi • Moseley • 2 Big-Country Motors • Steven Chiccehitto • Luray • 2 Lyman Automotive • James Lyman • Midlothian • 2 USA Auto, Inc • Mike Abrarahadi • Roanoke • 1 Copart • Delinda Nelson • Sandston • 1 George Lester • George Lester • Vinton • 1 AP Fairfax • Mostafa Shafiei • Fairfax • 1 3-D Automotive LLC • Avis Young • Millers Tavern • 1 Starzone Auto • Rauf Cheema • Sterling • 1 Imports of Tidewater II • Cameron Proctor • Virginia Beach • 1 CarBucks Floor Plan • Teresa Kea • Greenville • 1 King George Motors • George Kashouh • King George • 1 Rick’s Auto Solution • Ricky Miles • Danville • 1 Professional Insurance Design, Inc • Gene Aubry • Warrenton • 1 DLUX Motorsports, Inc • Marc Lux • Fredericksburg • 1 Commonwealth Motorcars Sales and Svcs LLC • Nasir Kashmiri • Chantilly • 1
New Members - january 1st, 2016 - february 29th, 2016 Abingdon Family Auto, LLC • Scott Woods • Abingdon • A. Melendez / P. Iaricci / S. Wingo Auto Finance Center • Javed Jobal • Fredericksburg • T. Allman / R. Fisher Autoxport Corp • Marco Guerrero • Newport News • P. Iaricci / J. Davis Big Racing, LLC • Robert Gery • Carrollton • P. Iaricci / J. Davis Blue River Moters, LLC • Michael NG • Goochland • V. London / D. Gripshover Car Castle • Paul Tashner • Richmond • David Gripshover Dinwiddie Motor Company, LLC • Amy Bishop • Dinwiddie • T. Allman / D. Gripshover Express Tag and Title • Valerie Sell • Moneta • L. Keenan / B. White F & J Auto Sales, Inc • Farshad Popal • Vinton • A. Dazzo / E. Haley Forza Autos Corporation • Nick Yawer • Culpeper • P. Iaricci / L. Hooper Friendly Motors, LLC • Emmanuel Saintil • Richmond • V. London / D. Gripshover Gaita Auto Sales • Joe Gaita • Poquoson • A. Dazzo / J. Davis Hilltop Auto Sales & Service, Inc • Kenneth Peeples, Jr • Rural Retreat • V. London / S. Wingo Iconic Motor Car Co • Brenden Updyke • Harrisonburg • V. London / E. Haley Loudoun Used Cars, LLC • Zafar Sabir • Leesburg • V. London / R. Fisher One Direction Motors • Valentine Anthony • Richmond • T. Allman / D. Gripshover Orange Auto, Inc • Sharri Keller • Virginia Beach • A. Melendez / J. Davis Prime Choice Auto • Christopher Johnson • Chesterfield • P. Iaricci / L. Hooper Pro Automotive, Inc • Jeffrey Barrow • Martinsville • V. London / S. Wright Smithfield Auto and Truck Center • Anthony Macioci • Smithfield • P. Iaricci / L. Hooper South Norfolk Auto Sales, LLC • Dante Gilmore • Chesapeake • Jamie Davis Southside Auto Sales • Mark Dease • Evington • V. London / M. Stevens Turners Auto, LLC • Alfred Ankomah • Hampton • A. Melendez / V. London / J. Davis Virtuous Motors, LLC • Khaliq Shabazz • Fredericksburg • V. London / R. Fisher spring 2016 | The Virginia Independent News | 25
RESTORATION TIPS!
We know eac reconditioning secret to rem
er, Inc. t, Davis Auto Cent en id es Pr 1 ry new tires and t ric st Di cmd eir takeoffs are factoat they cost new. th of y an M ls. BY Jamie Davis, ee wh t wh e sh for a fraction of es and aftermarke rs that sell new tird they are happy to turn them into cave at least one that does detailing. W it, ale de al loc ur yo t wa ha an to ld ys Contac em ou th da sh w to fe ne en a ually giv o. Everyo lds, etc. If you have wheels which are ustool in our detail shop called a tornad hubs, intake manifo hise parts department, get the part are w ne , es ing ot an m re cle a ss e nc keyle e fra it. We We us rts. I usually call th can on eBay. From savings are worth purchase what we ve between $30 to $100 on those pa an account with Dorman, and the g the same lines, you can you can usually sa a search for it online. We also have ones from the salvage yards. Alon personal vehicle and listed number and then doel wheels for the same price as used individual has removed from their it must be popular! site, so you know able to buy new ste od deals on wheels and tires that an ls and tires on their u can log on, use a usually get some go aigslist now has a section for whee local parts store. Youally have some nice eir th Cr or , g. or PA st. NA sli e, aig us on Cr ram through Advanc ck or not, and theye phone for someone at find out if it is in sto th be on an online prog All dealers should find the parts you need, get prices, part. This cuts down on waiting on ld the transmission pan to drop-down menu toechanic to make sure it is the correctyou need to know how many bolts ho pictures for your m nch the parts in, and then find out time waiting on hold. the parts store to pu e online programs save us a lot of the transmission. Th
BY Rob Fisher - District 4 President, Northside Auto Sales When it comes to reconditioning there seem to be as many different plans of attack as there are automobile dealers. While some dealers prefer selling late model cars that are “wash and wear�, others concentrate on older inventory that takes much more attention. Being in the latter category we have developed a system that starts when the car or truck arrives on the lot. A condition report is generated on the car covering fifty two items including a full walk of the unit checking all body panels, glass, tires, gauges, and complete interior assessment. The report lists all items as to condition and whether they need attention or are considered serviceable. The shop foreman has pre-approved spending limits and if the unit exceeds these limits he takes it to the manager for approval. As we know, reconditioning costs are moving ever higher and must be controlled at every phase. In this high tech day and age what used to be a simple fix can turn into thousands of dollars in repairs. With more diagnostic tools at our disposal it is possible to avoid many of these costly fixes. After the condition report is assessed it goes to the technician who test drives the vehicle on a prescribed course to check for any drivability problems. He returns to the shop to check state inspection items as well as anything found on the condition report. He also checks belts and hoses as well as other wearable items. When this has taken place and it is state and emission inspected the next stop will be any bodywork that may need to be addressed. After that it is on to the detailing shop for its final appearance reconditioning. I cannot stress enough this important step. If the unit is not visually appealing and clean, it is hard to go to the next step. Odors also have a great influence on first impressions. It is a good idea to put a few dryer sheets under the seats to keep a pleasant smell after the unit sits on the lot closed up. If the vehicle has a persistent odor there are effective ozone machines for that purpose. In conclusion, it is very important to have a system in place from start to finish in the reconditioning process. We are all operating used car factories and need to keep that in mind as we build these systems. 26 | The Virginia Independent News | spring 2016
BY jo
e tat
e - Pe aks M We pu otor, I nc. machi rchased an prograne that allo aftermark et w m com puter s us to mak key keys. e and
BY glen daniels - Holly Point Auto Faded unpainted plastic exterior trim can be renewed with careful use of a heat gun. Practice in an inconspicuous spot first.
We know each Dealer does certain things to save a few dollars in conditioning costs. Either you shop for parts on eBay or know that ecret to remove Kool Aid stains from carpets. Here are some tips from VIADA Dealers
BY jason hughes - Manheim Harrisonburg
ion Cars and Classics BY Kenny Martin - Competit pieces on a vehicle, To restore faded black plastic trim steady heat will use a heat gun on them. Slow and new. make them black again, just like
BY Dennis Jack - DJ’s Auto Center LLC Use Bug Off spray to clean tarnished headlights.
ngo Automotive District 8 President, Wi o ng wi eve St BY Tornador. in reconditioning is the The main tool we use a plastic of top mpet mounted on tool will It looks like a small tru le litt is Th it. se hooked to ho air an th wi r ine nta co isture which vehicle with minimal mo ptable odor clean everything in the n acce vehicle with a less tha we all know leaves a out the heavy All you do is vacuum if not dried thoroughly. in the Tornador ion lut ial cleaning so ter ac tib an me so t pu stuff, liners). Then out rubbing even on head (no ted ec dir as an cle you have a good e in the Tornador and your favorite fragranc dy for the lot. vely dry automobile rea smelling, clean, relati ely love it if lut ling (employees abso It’s our #1 tool in detai liners). I have ad he d stains out of be rub nd ha er ev ve they ha 110% of the time evie who is at the lot St n so my to ed ss expre od, 3rd you now , 2nd it’s gotta smell go od go k loo tta go it’s t 1s sell the vehicle. rtunity to present and have an excellent oppo can be bought on LD! The Tornador gun Eyes, nose, ears, SO ble price. eBay at a very reasona
Reconditioning services can really make a difference when you are selling vehicles. Below are some tips that can make your vehicles POP and stand out to your customers. We all know that a nice detail will help a vehicle sell but what does that entail? Of course a good vacuum is in order and under the seats is a commonly missed part of the interior cleaning. Many professional detailers will even take out the seats, if possible, to make sure little things are left for the next owner. It’s amazing how McDonald’s French fries get lodged between the seat belt and the seat. Also don’t forget the AC vents as they collect a lot of dust over time. We have found that little brushes (old toothbrush) are great for this exercise. If the seats, floor mats or carpeting has some stains it’s best to treat them with a carpet/ fabric cleaner, we call this “spot shot” and use an all-purpose cleaner for these tougher stains. If the unit has leather seats use a leather conditioner to protect and keep them nice. Also, no one likes a smelly car, so if you have a bad odor, there are chemicals that will help reduce the odor or totally eliminate them. Exterior wash, wax and tire dressings are always nice, but don’t forget about cleaning under the hood and don’t neglect the door jams because your customers will notice if you have. Clean the wheels to remove the acid water stains so that they shine! Buffing the headlights will make the whole front end of the vehicle look brand new so, if you notice foggy headlights, take the extra time to make those look nice. “Claying” is a procedure that will take tree sap and other stubborn foreign materials off the paint as well as the glass and lights. Then of course finish with a wax and buff for that brand new look! If you follow these tips it will lead to more profits in your pockets!!
Symbol of Quality
BY Don Boucher - VIADA Chairman of the Board, Courtesy Auto Sales Contact your local dealers that sell new tires and aftermarket wheels. Many of their takeoffs are factory new tires and wheels, which are usually given to them and they are happy to turn them into cash for a fraction of what they cost new. We use a cleaning tool in our detail shop called a Tornador. Everyone should have at least one that does detailing. Google it to watch a video on it. Saves a lot of time. spring 2016 | The Virginia Independent News | 27
Virginia Independent Auto Dealers PAC Contributors The independent dealers political action committee was established in 1987 as “INDEPAC”. In 2010, to better identify the PAC contributions to Legislators, the name was changed to “Virginia Independent Auto Dealers”. Virginia Independent Auto Dealers, PAC, is licensed in the Commonwealth of Virginia to solicit funds from independent dealers for contribution to candidates for statewide elections. These include the offices of Governor, Lt. Governor, Attorney General, and candidates for the General Assembly. All contributions are voluntary.
Report includes contributions made October 1, 2015, through February 29, 2016 Gold ($500 to $999 annually)
Enterprise Car Sales
Moss Motor Company, Inc.
Northside Auto Sales
Silver ($250 to $499 annually) Airline Auto Sales, Inc.
Auto Center Inc / Smoots Davis Auto Sales II
Steve Farmer Auto Sales, Inc.
Bronze ($100 to $249 annually) Alars, Inc. Chesapeake RV Solutions
Davis Auto Center, Inc. Don’s Auto Exchange, Inc.
Easy Ride Auto Sales, Inc. Roanoke VIADA – District 3
Basic ($45 to $99 annually) Autoxport Corp Bill’s Auto Sales Gary McCann Auto Sales, Inc.
Hobert Motorsport, LLC J. D. Byrider of Richmond
28 | The Virginia Independent News | spring 2016
Northside Auto Leasing Smithfield Auto and Truck Center Wamsley Service Center
Fixing Scratches BY scott Cartine, Robo’s Detail Supplies You don’t need fancy tools to distinguish a scratch from a mark. A fingernail drawn over the surface at 90 degrees to the defect will tell you if it’s gouged into the paint or sitting on top of it. If it’s a mark that appears to be from rubber, plastic or even other paint, it may come off easily with an aerosol tar or adhesive remover. Stubborn marks often can be removed with acetone or lacquer thinner on a soft rag. If the mark is still there after using one of these solvents, try hand rubbing or polishing compound. First, clean the area with soap and water then spread rubbing compound on the mark and rub the area in a circular motion until the mark disappears. Once it’s gone, switch to a back-and-forth motion to remove circular buffing marks. Buff the area with a clean cloth to remove rubbing compound. Afterwards, use a fresh pad, and clean the area with polishing compound to remove the fine scratches left by the rubbing compound. Finish by sealing the surface with a good car wax. Modern cars are almost always clear-coated over the color layer of the paint. This is done to provide a shinier finish, as well as to prevent ultraviolet light from fading the pigment underneath it. Nitty-Gritty Time To repair a scratch, start by washing the panel with soapy water and then drying it thoroughly. To fix the scratch you won’t really be removing it at all. Rather, you’ll be sanding down the paint surrounding the damaged area until they are both at the same level. As you might guess, the goal is to sand down to the level of the scratch without sanding through to the next layer. The key to sanding safely is to use ultra-fine 1500 to 3000 grit wet/dry sandpaper. Place the paper on a rubber sanding block or a wood block, and then dip it in a bowl of cold water. Add two or three drops of liquid dish detergent to make the water more slippery and to improve cutting action. Sand the scratch area using light, short strokes at alternating 60-degree angles to the scratch. Move up and down the length of the scratch, stopping frequently to rinse the paper in the water. The goal is to work slowly and lightly until you see the contrasting mark disappear. Once it is gone, dry the sanded area thoroughly and inspect it for any signs of the scratch. Once the scratch is gone – and you haven’t sanded down to the next layer – buff the area with rubbing compound. A power buffer works fast. When the sandpaper scratches are gone, use a soft cloth to remove any of the relatively coarse compounds. You may need to wash the area with water. Replace the rubbing-compound pad on the machine with a foam polishing-compound pad, and buff the entire area with very fine compound or swirl mark eliminator. Once the polishing is done, inspect the area, then seal the paint with car wax. This is just a basic breakdown on removing scratches. My name is Scott Cartine
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I’m a sales representative with Robo’s Detail Supplies located in Ashland ,VA. I have been working for Robo’s for over 5 years. I’ve been a customer for over 10 years. I’ve been in the detailing field for over 30 yrs. Our address is: 11026 Air Park Road. Unit #3 Ashland, VA 23005 Office number is (804)798-8020 My cell is (757) 814-0829 spring 2016 | The Virginia Independent News | 29
The Internet Corner Where is Everyone Advertising Online?
Pr
BY John Summer, JTZEnterprise.com, 877-286-1564 By now, everyone knows that in order to effectively and efficiently reach today’s car shoppers a car dealership must have a website. However, while some feel that a website is the only necessity, many successful dealerships have come to realize this is only the beginning. The Internet has revolutionized how people buy cars. Therefore, it has also revolutionized how car dealerships spend their advertising dollars. One thing is still the same, though. Most car dealerships budget how much money they dedicate to advertising. Instead of spending it on newspapers or radio, today they spend it on the Internet. Internet advertising is said to be considered a more inexpensive means of advertising than other traditional media options, but I would contend that is no longer true. Today, there are so many websites for dealerships to advertise with that it has become impossible for any one dealership to use them all. Often times the only way you can figure out if a particular website is a good fit for your dealership is to try them out. If you see sales from your efforts, you continue advertising with that site. If not, you discontinue and chalk it up to a learning experience. Sometimes those learning expenses can add up. Today, I want to help you get ahead of that trial and error method of finding the best advertisers by letting you know where all other dealerships are advertising. I will list the most used companies and then try to explain why certain advertisers may be good for one dealership and not such a good fit for another. Below is a list of other online advertisers currently getting data from JTZ Enterprise. The percentage indicates how many of all dealerships utilizing our feed service are utilizing each particular advertiser. VAUsedCarDealers.com – 100% Carfax – 61% Auto Trader – 53% Cars.com – 37% *Local – 27% OVE – 16% True Car – 11% SmartAuction – 5% CarGurus - *4% OpenLane – 3%
Backpage – 3% Trader BHPH – 3% This list has a couple of interesting things to point out. First, VIADA’s site, VUCD is at the top. That is because all VIADA members enrolled in our feed services automatically get their listings included in the search results of this site. VUCD has a great following with over 126,000 car shoppers visiting in 2015. Most of those shoppers are in Virginia. I list this site at the top because with the dramatic increase in mobile users and Internet traffic in general, today it is more important than ever for a dealership to focus some of their advertising on sites like VUCD that are considered regional advertisers and are local to them. Even though www stands for World Wide Web, car shoppers still want to do business with dealers in their backyard. While some will fly across country to find that one vehicle, most would prefer working with a local dealership because they need help with financing, service and maintenance before and after the sale. The next advertiser, Carfax, is a new comer to the top of the list. In the last few months Carfax has worked to produce many advertising packages specifically for the Independent dealers. As a result, we have seen a sharp increase in the number of dealerships requesting to have their listings added to the Carfax feed. Carfax may not be the best fit for a dealership who sells a lower quality, higher mileage car. However, if you are a dealership specializing in low mileage, one owner cars, this might be the best online advertiser for you. The next two results, Auto Trader and Cars.com are really no surprise. They are considered more national than local and therefore probably top the list when it comes to the cost a dealership must pay to advertise with them. They spend large amounts of money advertising in other media outlets like television and radio. They are well known to car buyers across the country. Both sites are really Price conscious. This often rules these two advertisers out for BHPH dealerships who are often not considered competitively priced. Recently, Auto Trader tried to produce a site specifically for BHPH dealerships
30 | The Virginia Independent News | spring 2016
but so far that has not been picked up by many of our BHPH dealerships. The next result is listed as Local. Print media makes up most of this category. We send data to dozens of classified magazine advertisers who also have a website. www.VADealer. com, www.VAAutoGuide.com and www.DealersLotInc.com are just a few advertisers representing local advertisers. These companies are often the ones BHPH and smaller independent dealerships utilize more than the national ones because they are often much cheaper and are more focused on availability than they are pricing. CarGurus.com is actually both a free and a paid advertiser, meaning car dealerships do not have to pay to advertise with them, but if they enroll in an advertising plan, they get more high quality leads than those who don’t. While the percentage of paid advertisers is low, this is a good source of consistent online leads. Likewise, True Car’s numbers are not impressive, yet, but they just came on the scene in Virginia not long ago and continue to enroll new dealerships every day. The next few results are actually auctions, not advertisers. More and more dealerships are moving everything to online, including their wholesale duties. OVE has been around the longest, but other venues include Smart Auction and OpenLane. Backpage is waning in numbers, but it does bring up another important advertiser not listed, Craigslist. When Craigslist started charging $5 per post, they actually became a better advertiser for dealers. If that $5 ran you away from them, I strongly encourage you to consider going back. I have heard many dealerships say they get more calls from 4-5 Craigslist posts each week (about $100/month) than many of those other advertisers. Once your website is up and running, you are just getting started. The next step will be to find out what is the best mix of other online advertisers for your dealership. If you want a free review of either your website or your other online advertisers, don’t hesitate to contact us, today.
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Jason JasonBrinkley Brinkley- General - GeneralManager Manager| Nate | NateSeeley Seeley- Assistant - AssistantGM GM auctionbroadcasting.com auctionbroadcasting.com| |abcvirginia.com abcvirginia.com spring 2016 | The Virginia Independent News | 31
abc abcVirginia Virginia| | 656 656South SouthMilitary MilitaryHWY HWY | | Virginia VirginiaBeach, Beach,VA. VA.23464 23464 | | 757.487.3464 757.487.3464
Virginia Independent Automobile Dealers Association 4700 Thoroughgood Square Virginia Beach, VA 23455 (800) 464-3460 | info@viada.org Symbol of Quality
VIADA’s 56 Annual Convention & expo th
Sheraton Roanoke Hotel & Conference Center October 20-23, 2016
32 | The Virginia Independent News | spring 2016