the Front Row - August 2023

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THE FRONT ROW

The official magazine of the WASHINGTON STATE INDEPENDENT AUTO DEALERS ASSOCIATION WSIADA.COM

707 Auburn Way South | Auburn, WA 98002 T: 253-735-0267 | F: 253-804-0844 staff@wsiada.com | WSIADA.COM

EXECUTIVE BOARD

Wasim Azzam, Board President

All Right Auto Sales | President@wsiada.com

Badie Darwazeh, Board Vice-President Seattle Auto Haus | VPresident@wsiada.com

J.T. Curry, Board Secretary Motors Northwest | Secretary@wsiada.com

Emil Scarsella, Board Treasurer Town & Country Auto Sales | Treasurer@wsiada.com

CHAPTER PRESIDENTS

Tony Bonnallie – North Cascade Mission Motors | NoCascade@wsiada.com

Victor Perez – North Sound Route527 Motorsports | NoSound@wsiada.com

David Magarrell – South Sound Auto Sales Consultants, LLC | SoSound@wsiada.com

Rachel Frankel - Vancouver

Top Auto Brokers | Vancouver@wsiada.com

Vacant Position – Yakima Yakima@wsiada.com

Vacant Position – Tri-Cities

Tri-Cities@wsiada.com

Vacant Position – Spokane

Spokane@wsiada.com

AT-LARGE BOARD

Randy Fletcher, Board President (Emeritus)

In-N-Out Auto Sales

Ken Williamson, Board President (Emeritus)

John’s Auto Mart, LLC

WSIADA STAFF

Rick Olson, Director of Operations

Mila Froman, Membership Manager

Mary Walton, Accountant

Lane Schulz, Retail Associate

PRODUCTION EDITOR

Professional Mojo

Copyright 2023 | WSIADA

2 SEATTLE EDUCATION FAIR HEATS UP! Make sure you’re part of this informative and entertaining event!

3 WASHINGTON STATE DEPARTMENT OF LICENSING UPDATES: E-permitting, important dates, FAQs and more!

6 WHY MORE DEALERS ARE ENABLING SALES STAFF TO PRESENT F&I PRODUCTS EARLIER IN THE SHOPPING PROCESS

F&I products are not a one-size-fits-all menu, so it’s pivotal to have a menu lineup that will address the needs of each individual buyer.

8 ELEVATE YOUR DEALERSHIP’S CONTENT

Consider these actionable and effective ways to elevate your content from ho-hum to engaging.

9 THE 2023 NIADA CONVENTION: POSITIONED FOR THE FUTURE

10 3 KEY AREAS TO FOCUS ON FOR FIXED OPS SUCCESS

A well-managed BDC can significantly impact sales, raise service profits, and increase retention, but achieving success in this field requires three key ingredients: Focus, People, and Consistency.

13 HB 1790’S NEW TEMP PERMIT PAPER MAKES ITS DEBUT

14 SUPPORTING AUTOMOTIVE IN ITS PURSUIT OF SUSTAINABILITY GOALS

The entire value chain is working toward a future where every vehicle can be taken apart at the end of its life, processed and brought back into production as a new vehicle.

16 9 WAYS TO REDUCE CAR DEALERSHIP EXPENSES

19 MANHEIM ENHANCES MMR, OPENS ACCESS TO ALL WHOLESALE MARKETPLACES

20 READ & RESPOND QUIZ

Important Changes to E-Permitting, Effective June 29, 2023

House Bill 1790, passed during the 2022 legislative session, directed the Department of Licensing (DOL) and vehicle dealers to issue temporary license plates in place of existing temporary permits.

This goes live June 29, 2023. Please review the information and dates below as they may impact your interactions with DOL and its systems.

IMPORTANT DATES

• June 29, 2023 – Temporary license plates replace temporary permits generated in e-permitting system.

• July 14, 2023 – Last day to issue existing paper permits purchased from vehicle licensing offices.

• July 15, 2023 – Last day to assign paper permits to vehicle transactions in e-permitting system.

• September 1, 2023 – Any dealer temporary permits remaining on vehicles considered invalid.

Frequently Asked Questions

Q: How do I complete the missing information on the unassigned temporary license plates we use when the system is down?

A: Please use any type of permanent black marker or “Sharpie” for expiration date, make, model, VIN, and year of vehicle.

Q: What happens if a customer’s temporary license plate is stolen or removed from their car? Do we issue another temporary license plate?

A: Dealerships should not issue a second temporary license plate or use an unassigned temporary license plate.

Customers should do the following:

1. File a police report.

2. Contact the dealership and alert them the temporary plate has been stolen.

Dealerships should do the following:

• Revoke the temporary license plate in the e-permitting system and identify as stolen.

• Transfer the vehicle to the customer and supply them with the permanent metal plates and registration.

• If immediate transfer is not possible for permissible reasons, instruct customer to visit the nearest vehicle licensing office with a copy of the police report, purchase order, and temporary license plate number. Vehicle licensing offices will provide one 15-day departmentissued temporary permit.

Q: Can I purchase unassigned temporary license plates from my local vehicle licensing office?

A: We encourage dealerships to purchase unassigned temporary license plate credits through the e-permitting system. Unassigned temporary license plates can be purchased from a vehicle licensing office. However, vehicle licensing offices will only sell to individuals listed as business licensee officer(s) or administrative staff in the e-permitting system. These individuals will need to show valid identification prior to purchasing or receiving unassigned temporary license plates.

Q: Are dealerships permitted to issue more than one set of temporary license plates?

A: This may be allowed in some instances. RCW 46.70.180(8) defines permissible reasons to issue more than one temporary license plate.

Q: Where can I find temporary license plate reference or training material?

A: E-Permits: Vehicle and vessel dealers | Washington State Department of Licensing: Within this page is the License eXpress for Vehicle Businesses E-Service Account User Guide.

Questions and concerns should be addressed to TempLicPlateInformation@dol.wa.gov

Important Reminder: Auto Dealer Endorsement Plate Usage

The WSIADA received calls on July 11 concerning local police departments initiating traffic stops due to increased enforcement of auto dealer endorsement plates usage.

As a reminder, RCW 46.70.090 (1) states a vehicle dealer license plate shall be attached to the rear of the vehicle only. Plates cannot be on a seat, dashboard, in a front or rear window. A dealer would use plate magnets, or nylon bag, to follow through with the statute.

In reference to the Identification cards: Under WAC 308-66-160 section 3, it states that the following are permitted to use the dealer endorsement plate:

• Is a dealer, officer, manager or member of an L.L.C.

• Is a spouse of a dealer, officer, manager, or member of an L.L.C.

• Is an employee

Please ensure your dealership staff are properly displaying the vehicle dealer plates and carry the dealer blue card, shown below, along with insurance and drivers license.

Law enforcement could issue a citation of $500 to the individual who doesn't possess a blue card while driving on the dealer plate. The dealer plates may also be confiscated by law enforcement if they find evidence of the misuse of the plate.

You may purchase Vehicle Dealer Identification Cards at store.wsiada.com.

WSIADA TITLE WORKSHOP

$125 MEMBER // $175 NON-MEMBER

This Workshop is designed to give dealers an in-depth understanding of the business practices, state/federal requirements, and forms needed to complete a transaction. This course offers 3 hours toward Continuing Education requirements and allows attendees to ask the instructor individual and dealership-specific questions. Any employee of a dealership may take this course. Continuing Education hours are issued to the dealership, not to individuals attending.

The curriculum for this workshop includes, but is not limited to:

• How to transfer a title properly in Washington State

• Avoiding common dealer errors including how to detect and avoid fraud.

• How to use e-Permitting, Contracted Plate Search, and other state systems accurately.

• Proper procedures on processing Consignments, Trade-In’s and Private purchases.

• Tips on how to avoid costly penalties with efficiency and organization skills.

You may register and pay online. You’ll receive an email confirmation after your registration is complete. Registration is available until 2:00PM the day the class. In-person registrations on the day of the class are not accepted.

Why More Dealers Are Enabling Sales Staff to Present F&I Products Earlier in the Shopping Process

BY TIM BLOCHOWIAK, VICE PRESIDENT OF DEALER SALES, PROTECTIVE ASSET PROTECTION

It has been well established that the importance of selling F&I products is currently at an all-time high. From helping to further boost profits and offsetting floor-planning cost erosion, to solidifying higher customer satisfaction through better protection of investments, F&I is a cornerstone of any retailer’s success.

It’s certainly important to have the right F&I product options that best fit for your vehicle inventory. F&I products are not a one-size-fits-all menu, so it’s pivotal to have a menu lineup that will address the needs of each individual buyer.

Aside from the products themselves, more retailers are taking a closer look at the process of selling F&I products when customers are closing the transaction –most likely still in the showroom. Yes, online research and digital retailing are growing, but many of today’s final transactions still take place inside the showroom walls.

Online F&I Is Still a Work in Progress

Part of this reason can be attributed to the fact that the online F&I research and selection process is still a work in progress. Either the product options aren’t readily available online, or the pricing is unavailable or inaccurate, which frustrates car shoppers.

Furthermore, experts are confident F&I product sales growth would occur, and F&I time would be preserved if retailers displayed accurate payment calculations online. Sixty-nine percent of dealerships said recently that online payment estimator tools provide shoppers an inaccurate or unrealistic perspective more than half the time. Thus, a majority of F&I consultations and sales still take place at the dealership.

Selling F&I products and vehicle maintenance can be challenging, and this difficulty is frequently caused by the design and management of dealerships. Auto retailers frequently (unintentionally) create siloed business practices by defining boundaries between professionals in sales,

service, and F&I. Since departmental cooperation is crucial to a dealership’s overall success, it’s imperative to promote a cooperative culture and avoid isolating important business segments. Nevertheless, how can well-established dealerships consider a more unified selling framework?

Empowering Sales Staff Is Key to F&I Success

Establishing a more consistent customer experience between departments is one way more dealers can develop a successful F&I ecosystem. Instead of potentially frustrating customers at the point of purchase, a growing number of dealers are allowing and encouraging salespeople to grow their understanding of F&I products. By communicating the value of auto financing and insurance earlier in the conversation, dealerships can make a stronger case for the value of these supplemental offerings.

In addition to establishing stronger education and value earlier on in the sales process, the customer begins to view F&I products in a different light. Because the salesperson has done a good job building trust with the customer, he or she is then presenting F&I options as a benefit that can help protect the investment. When customers are handed off to a different person at the end of the transaction, trust needs to be re-established and the customer may feel like the additional options are nothing more than a way for the dealer to make a few extra dollars.

Sure, F&I products boost a dealer’s profitper-vehicle, and most customers realize this. But when they’re offered and presented by a salesperson who has gained a customer’s trust, the shopper is more inclined to look at it through a different lens.

Training Makes All the Difference

Offering sales personnel many opportunities for training and skill development is one of the best ways to

enhance interdepartmental collaboration and position to promote from within. For example, allowing sales representatives to shadow the F&I department can provide a fresh perspective on protection products and enable them to carry over the trust and goodwill they have developed with customers to the later stages of the purchasing process along with providing sales an additional career path. On the other hand, giving members of an F&I department the chance to collaborate with sales representatives in-person can give them useful time on the sales floor and a more accurate understanding of today’s consumers and their preferences.

F&I provider partners also now offer a bevy of in-person and web or video-based tutorials to help sales staff understand and sharpen their skillsets and knowledge of F&I and protection products. These are extremely critical because they can often cover product details in an elevated way that are sometimes overlooked by simply shadowing an employee at the dealership.

Enabling sales staff to also present F&I products isn’t necessarily a new strategy for auto retailers. However, in this era of profit preservation every little detail may offer a dealer a competitive edge. n

ELEVATE YOUR DEALERSHIP’S CONTENT

BY PROFESSIONAL MOJO

As an independent dealer, you read a lot about creating engaging social media content to reach more buyers and sell more cars. Agencies talk about it. Your in-house marketing coordinator talks about it. Maybe even your sales folks talk about it, too. Talking about what's "engaging" in the industry landscape, though, and creating an actional list of potential content are two very different things. One thing we all can agree on is that engaging content is essential for capturing and retaining the attention of your potential buyers. So, consider these actionable and effective ways to elevate your content from hohum to engaging:

DO MORE WITH YOUR VISUALS

Make the visual component of every post the best it can be. You already know the value of high-quality images of your inventory, but consider including a great visual with every non-inventory post, too. These can include appropriate memes, videos of your staff or parts of the buying process, or infographics sharing interesting consumer stats. Visuals grab attention much more quickly and help convey your message in an easily digestible format. Choose vibrant, on-brand colors and

compelling imagery to make your content stand out in the crowded social media landscape. Pro Mojo Tip: Ensure every visual component includes your phone/ URL and looks like your brand.

USE MORE INTERACTIVE CONTENT

It's time to move beyond the static post. Consider engaging your audience by creating interactive content that encourages participation. Polls, quizzes, contests, and interactive stories are excellent ways to involve your followers and make them feel like an active part of your community. Encourage them to share their opinions, experiences, or create user-generated content related to your brand.

TELL YOUR STORY TO BUYERS

Leverage the power of storytelling to create emotional connections with your prospects. Any good salesperson knows that a new ride has an emotional impact! Share real-life buyer experiences, success stories, or user testimonials that showcase the impact of your dealership, how you support the community or even highlights your staff/sales team. Authentic storytelling helps build trust, fosters en-

gagement, and encourages meaningful conversations. Not sure where to start? Consider these types of compelling stories: Asking for action from the reader, Illustrating your dealership's core beliefs or values, inspirational stories.

STRIVE TO DELIVER VALUE

Valuable content educates, informs, entertains, or solves a problem for your prospects. Your dealership offers solutions to prospects who need or desire a new ride, so build on that. Share tips, tutorials, how-to guides, industry insights, or behind-the-scenes glimpses to provide value to your community. These types of tips, tricks, and hacks are especially impactful on TikTok and other platforms geared to quickly consumable video. Your dealership staff has a lot of knowledge that can be mined for this purpose.

One last Pro Mojo Tip: One size does not fit all. Think through your content and adapt some of these ideas to suit the specific social media platform(s) you are using. Each platform has its own nuances and best practices, so tailor your content accordingly. n

The 2023 NIADA Convention: Positioned for the Future

Recently, WSIADA’s Director of Operations, Rick Olson, and Membership Manager, Mila Froman, attended the 2023 NIADA Conference held at the prestigious Wynn Las Vegas Hotel. WSIADA was able to experience the opportunities and benefits that our WSIADA members can expect. We want to emphasize the significance of how attending events like this, as well as the Education Fairs, can have a positive impact on Washington independent dealers – and not just for education purposes. With the recent leadership changes at NIADA, as Jeff Martin takes on the CEO position, the future is looking brighter for the industry. Jeff is off to a great start by organizing an impactful convention, including keynote speaker Sugar Ray Leonard, who inspired us all. Another highlight of the convention was the presentation of the Quality Dealer Awards, which recognize the best of the best in the country. WSIADA, as you know, was unable to present one this year, but we hope to for 2024. We can’t wait for what the future holds!

DEALER EDUCATION ON POINT

Rick and Mila attended several seminars and breakout sessions throughout the conference. While WSIADA did not need to attend these educational sessions, we wanted to see what our members could expect and we were impressed by the wealth and variety of information available. Topics ranged from FTC to Accounting, improving sales at your lot and more. The conference highlighted the importance of continuous learning and staying ahead of industry trends, regulations, and best practices. These seminars and breakout sessions give WSIADA members a competitive edge and enhances their expertise, which will drive their dealerships to new heights.

INDUSTRY SOLUTIONS AND INNOVATIONS

The Expos (Finance Expo and the Expo Hall) were highlights of our time at the NIADA Conference, as well. On the crowded floor, we saw members connecting with numerous vendors representing various sectors of the automotive industry. We walked away having talked to many of these vendors. We hope to bring them on not only as affiliates and sponsors for WSIADA, but to also start a dialog between them and our members.

COLLECTIVE MEMBERSHIP

It is important to note that WSIADA members automatically become members of NIADA, giving you an array of additional benefits on top of your WSIADA membership offers. This collaboration allows WSIADA to tap into an even wider network, providing every dealer with access to a vast pool of educational, industry, professional, and

federal resources. With the NIADA benefit, WSIADA ensures that its members receive more than just the outstanding benefits offered by the state association.

As WSIADA continues to foster its partnership with NIADA, members can anticipate a brighter future and a stronger support system. The leadership change at NIADA brings a renewed vigor and commitment to empower our independent auto dealers. By embracing and taking on the opportunities presented at the NIADA conference, WSIADA members are positioned to thrive in a competitive landscape, driving the automotive industry forward and embracing the promising possibilities that lie ahead. n

Keynote Speaker Sugar Ray Leonard discusses how to win, learn from losing and doing the best possible.

Dan Dwyer of the FTC discussing safeguards.

Three Key Areas to Focus on for Fixed Ops Success

Awell-managed BDC can significantly impact sales, raise service profits, and increase retention, but achieving success in this field requires three key ingredients: Focus, People, and Consistency. Without these elements working in tandem, even the most intuitive technology with the best team, delivered at the right time will fail.

Focus – Are you Singularly Focused on the Success of this Program?

One of the primary keys to any successful undertaking in automotive is maintaining a strong focus; both internal and external. Internally, your team should have a clear understanding of their goals, objectives, and performance metrics. They should be aligned with the dealership’s overall business strategy and strive to enhance it. This requires a deep understanding of the dealership’s products, target market, and customer needs.

Externally, the BDC and team should be customer-centric. Understanding the customer’s journey, preferences, and pain points enables the team to deliver exceptional service. By focusing on the customer experience, your team builds trust, enhances loyalty, and increases sales conversion rates.

Resources/People – Do you have the right people, in the right seats, at the right time?

You can have a singular focus on making a process successful, for instance, increasing CSI scores, but hiring, training, and

BY BOB GOWER, COO, TRAVER CONNECT!

retaining the right individuals to do so is crucial. If you don’t have the right people, in the right seats, at the right time, there will not be the support needed to build out your goals.

Investing in ongoing training and development programs is essential to keep your team up to date with industry advancements, technology, and customer engagement strategies. Regular coaching and feedback sessions can help identify areas for improvement and enhance the team’s overall performance.

In addition to training and development of your team, don’t forget to build out enough time to have them implement the new solution or process. You need both for success.

Consistency – Do you, and your team, do it the same way, every day? Consistency in processes, messaging, and service delivery is crucial for building trust and credibility with customers. By maintaining consistency, customers know what to expect from the dealership and your team, this, in turn, enhances their confidence in your team, and over time, cements their brand loyalty.

Consistency in data management and analysis is equally important. DMS and CRM tools need to be used effectively to track interactions, capture relevant data, and identify trends and patterns. This data-driven approach enables your team to make informed decisions and continuously improve their performance.

But don’t we have technology to run and optimize these things? Yes. But I believe that technology is not the solution, but rather the enabler of the above three. The answer is High Tech with High Touch!

You can have 100% focus on implementing a new AI solution that will help you communicate quickly with service customers, but without the resources to implement the solution, it will fail. Why? High Tech without High Touch, requiring a blended approach to reach every customer. Similarly, you can staff up and ensure your team has the hours to create a new pick-up and delivery program, but without consistent scheduling processes, it will also fail. It’s only when you have all three of the above working together that the technology needed to run the solution will work properly and help create efficiencies.

Today’s dealerships have more solutions at their fingertips than ever before. Evolving customer-centric programs like mobile scheduling, pickup and delivery and AI-based retention programs are flourishing. It’s an exciting time to be in our industry but can also feel fragmented if we don’t stay focused, ensure our resources are blended and align, while creating a consistent process and experience every time. n

TEMP PERMIT PAPER - 500 CASE

2022 House Bill 1790 Transportation Budget requires dealerships to use a durable material for 45-day temporary permits beginning July 1, 2023. This product meets the exact requirements by the Department of Licensing to utilize within the DRIVES system.

Specifications:

• 8 1/2” x 11” paper

• 4.7 Mil Thickness compatible with laser or inkjet printers

• Waterproof/tearproof paper

The WSIADA WEBSTORE offers a variety of popular products, supplies, and forms that dealers find most useful at discounted prices. Members get 15% off on most products. Save yourself time by ordering through the online store and have it picked up from one of our locations. Be sure to check the store and buy from WSIADA!

HB 1790’s New Temp Permit Paper Makes its Debut in July

BY WSIADA STAFF

The time has finally come for the new 45-Day Temporary Permit paper to be implemented by Department of Licensing and the auto dealers in Washington State. The new synthetic paper replaces the previous 45-Day “Hard Temp” Permits used by dealerships and vehicle licensing offices for many years.

There were multiple reasons as to why this change has occurred. For auto dealers, there was an issue of dealers not properly assigning the hard temps into the DRIVES system. This was the most common problem that needed to be overcome.

The Association has been vocal with dealers on what to expect as information was presented to us from the Department of Licensing during their planning and rollout to ensure dealerships were fully understanding these changes.

The most consistent back-and-forth was concerning credit issued for those who purchased more than a reasonable amount of hard temps when the prices increased last year. Our office recommended against buying more than a handful of the hard temps at a time in case of no credit being given for the paper hard temps.

Ultimately, the decision was against credit for existing hard temps. Those with the

paper hard temps had until July 14 to use them.

As soon as the Department of Licensing notified the Association of the manufacturer of the synthetic paper they were contracting with, we contacted the vendor for the availability to provide the synthetic paper for Washington State dealers through us.

In early June, the Association received the first shipment from the manufacturer and began to provide dealers with the new synthetic paper. We started out with an optional 100 starter pack quantity and the 500-quantity ream quantity and immediately sold out.

Each order replenishment sold out in a few days of receipt in our office. We are not the only entity selling the paper. If you need the synthetic paper, google for other vendors that have it available.

This was the reason our online store was limiting maximum quantities to 1 pack or 1 ream to a dealer endorsement to ensure as many could get an initial startup of the synthetic paper and not monopolize the inventory on hand.

A few days into July, the Association received calls with several dealers scoffing at the law by stating they would use regular

paper instead. Dealerships can use regular paper but be aware a customer will be held liable for the citation ($529 under RCW 46.16A.030) and the customer may file a report against the dealership with the Department of Licensing which may take civil action against the dealer to recuperate the cost of the citation and any costs (RCW 46.16A.200(7)(b) through (7)(d)).

Is it really worth the litigation potential to not use the correct synthetic paper?

After the initial roll out, the starter pack of 100 was discontinued for the auto temporary version and only the 500-quantity ream would be available going forward. Some dealers will say “I only sell 10 cars a year, I don’t need 500.” but forget this synthetic requirement is not for a short term but will be needed for several years.

What about motorcycles and trailers?

Will WSIADA carry this paper because its different than the other type?

Answer: Yes! These will be available with the WSIADA for our Miscellaneous dealer endorsement customers. These will come in 100 packs as trailer and cycle only needs one page for their permits. Our inventory will ebb and flow for a time, please be patient as we have more inventory available for purchase. n

Supporting Automotive in Its Pursuit of Sustainability Goals

The

BY JOHN PUNCHES, COMMERCIAL SALES DIRECTOR, PLASTICS-NORTH AMERICA, TRINSEO

Sustainability is a vital strategic goal for all industries as regulations, consumer demands and a sense of responsibility all increase. The automotive industry has made significant strides in addressing sustainability concerns, and recapturing materials from end-of-life vehicles can bring the entire industry one step closer to a future with full, infinite circularity.

Meanwhile, the plastics industry is supporting automakers with innovative material solutions created and developed through collaboration and minimizing manufacturers’ impact on the planet. Whether born out of corporate responsibility or outside pressure, automakers are seeking novel solutions to the environmental goals they need to meet. Working with sometimes moving targets, and often with different definitions of sustainability, their needs vary, meaning suppliers need to be flexible, share their same values and possess the know-how to meet and exceed manufacturers’ needs.

The plastics sector has been a trusted partner to OEMs and tier suppliers in automotive for decades, offering critical materials for vehicle interiors and exteriors, as well as supporting the growth of electric vehicles in various ways including components for electric-vehicle batteries. With materials such as engineered plastics with recycled content and bio-based chemistries for plastics and latex binders, plastics manufacturers are increasingly working to help OEMs achieve their sustainability objectives with solutions that do not compromise perfor-

mance while preserving resources and reducing carbon footprints.

AUTOMOTIVE CIRCULARITY

With the goal of full circularity, the entire value chain is working toward a future where every vehicle can be taken apart at the end of its life, processed and brought back into production as a new vehicle, with no need for additional all-prime inputs: a door comes back as a door, a dashboard is a dashboard once more, etc.

But realistically, a vehicle’s lifetime is 10 to 15 years, meaning there is still a way to go before closing the loop, so OEMs must look outside of their industries to source recycled plastics and bridge that gap to lower emissions now.

A focus on identifying sources of recycled feedstock broadly can help prevent material value loss and minimize emissions, especially when materials retain their quality for multiple lifecycles. Remanufacturing can reduce emissions during production and increase asset value. The plastics industry is developing technologies and investing in closedloop recycling technologies that maintain the same quality standards as virgin materials.

MATERIALS WITHOUT COMPROMISE

Expanding recycling channels throughout the automotive supply chain is crucial, and companies should not limit themselves to a single method. The plastics industry has been on a sustainability journey for years and, in partnership with the automotive industry, has identified multiple routes to lowering the CO2 footprint of its products. Along with offering a robust portfolio of resins containing recycled materials, some plastics manufacturers now offer bio-attributed materials

which provide enhanced performance and a lower CO2 footprint comparable to their allprime counterparts.

Such bio-attributed materials can be made in accordance with the mass balance process, where fossil-based polymers are combined with renewable raw materials during polymerization. This means the finished product is chemically identical to its all-prime counterpart and can be used with existing equipment under the same process conditions.

VALUE CHAIN PARTNERSHIPS

As the push for sustainability continues, businesses in the automotive industry are recognizing the importance of adopting a circular approach to their operations. This means working together with value-chain partners in a seamless manner, from design to decommission, to create a closed-loop system that minimizes waste and maximizes resource efficiency.

Through partnership and collaboration, automotive companies can expand recycling channels to include dissolution, chemical recycling and feedstock cracking and close the loop on end-of-life materials. This way, they are providing sustainable solutions for their products without compromising on quality. The circular future of automotive businesses requires a shared vision and a commitment to work together toward a more sustainable and resilient future.

MOBILITY THAT KEEPS ON GOING

Composing a more comprehensive automotive sustainability strategy involves sustainable material choices, streamlined production processes and responsible endof-life treatment utilizing circular systems. There is no easy path toward achieving sustainability targets, as it requires longterm commitment and collaboration from all stakeholders in the value chain. Global alignment is key, with sustainability goals aligned with industrywide guiding principles and enforced throughout the supply chain, so that as regulations shift, all players can adapt to changing requirements.

Creating a sustainable future doesn’t necessarily mean abandoning vehicles and plastics, but rather finding efficient ways to maximize the usage of existing resources and regenerating them within a circular economy. It’s not about reinventing the wheel, but rather reusing it. n

entire value chain is working toward a future where every vehicle can be taken apart at the end of its life, processed and brought back into production as a new vehicle.

In a desire to be more accessible to dealers and maintain a footing in the ever expanding digital age, WSIADA has its own mobile app for dealerships to utilize features that the Association has available. The app is for members and nonmembers. It’s free and easily downloadable through your smartphone app store. Options that are available:

9 Ways to Reduce Car Dealership Expenses

BY AUTORAPTOR STAFF

Peter has a reputation around town as a savvy dealership business owner. He’s the top-selling auto dealer in his county, is known for his inventory of high-demand vehicles, and the customer service scores for his employees are off the charts. In addition to that, he spends a pretty penny on all types of advertising and has become a bit of a local legend for his one-of-a-kind television commercials.

From the outside, Peter appears to be doing everything right. He’s the envy of other local dealership owners; they all wonder what he’s doing to make so much money.

The truth? Peter’s profits are abysmal. He wants only the best for his dealership business—the best cars, employees, advertising—and he’s willing to spend big money to make that happen. Unfortunately, he’s spending too much, and his expenses aren’t in sync with his gross profits.

He likes to reason that, “You gotta spend money to make money!” but he has to get a grip on his expenses before his business implodes.

When you’re running a dealership, business expenses are always going to be there—but it’s up to you to determine how much you’re willing to spend.

Your situation may not be as dire as Peter’s, but if you think there’s room to trim your dealership costs, you’re probably right. Even if you think your input versus output is a well-oiled machine, it’s certainly worth your time to look at your books and see where you may be able to reduce your expenses–you could be very surprised.

Where to start making your dealership business more profitable

“Someone in your organization has to get into the weeds with your expenses…if not, you are clearly leaving as much as 25% on the table day after day, week after week, month after month, and year after year,” writes Doug Austin, founder and President of StrategicSource, Inc.

First, look at a month-by-month income statement for the last year of business. This

spreadsheet will allow you to compare your sales, cost of sales, gross profits, and expenses. Do you notice any trends?

Now, you’re going to want to start digging deep into your expenses. These costs should be separated into two different groups because not all expenses are created equal. You’ll have:

1VARIABLE EXPENSES

Expenses directly related to sales and inventory carrying costs. These should change proportionately to your sales and gross profits.

Types of variable expenses may include floor plan interest, demo expense, delivery expense, advertising, personnel, employee benefits, absentee wages.

2FIXED EXPENSES

These expenses remain pretty consistent month after month. Types of fixed expenses include office and shop supplies, credit card interest, legal, postage, repairs and maintenance, insurance, utilities.

Once you’ve narrowed down your expenses for the last year, don’t just skim over the numbers to see if everything “looks good.” You need to take each category, one by one, and evaluate the money that was spent and why. If you’ve never done this before, you’re probably going to find a lot of areas that you could easily reduce without affecting your normal flow of business.

DEALERSHIP BUSINESS EXPENSE CATEGORIES WITH ROOM TO TRIM

Where you ultimately choose to reduce costs will depend on your individual dealership, but here are some common areas where others may cut back:

1ADVERTISING

Advertising is essential when you’re running a dealership, but it needs strategic management. You can’t just throw money into commercials, print ads, and pay-perclick ads without also measuring results and ROI. You love producing your TV commercials, but you may find that the numbers aren’t adding up and they simply aren’t bringing in the amount of business they need to.

2PERSONNEL

Don’t go firing anyone, but an easy area to save money is by watching how much overtime your employees are clocking. Have management sign off on all overtime before it goes to payroll. Also, be smart about who you hire. Dealerships tend to have a lot of turnover, and that gets expensive–try to minimize that as much as possible by taking the time to hire the right people.

3OFFICE AND SHOP SUPPLIES

How can you reduce the cost of supplies if you need them to do business? Two simple ways are to shop around for discounts and keep supplies locked up at all times–appoint specific employees to be keyholders. Employees can sometimes get sticky fingers, especially when it comes to office supplies–“who’s going to miss an envelope?!”–but the costs add up over time and can impact your bottom line.

4INVENTORY

Those used cars sitting on your lot cost you money every single day. A 60-day rule on your lot could help (though it should preferably be 30 days) so your inventory keeps moving, but your money doesn’t.

You’re going to find that by taking the time to review your expenses and tightening the purse strings a little, your dealership business profits will vastly improve without too much effort.

5REVISING VENDOR CONTRACTS AND STREAMLINING BUSINESS PROCESSES

Another practical avenue to explore for cutting costs is to renegotiate your vendor contracts. Be it the IT support services, janitorial services, or vehicle maintenance equipment, there’s a good chance that you can find a more competitive rate than what you’re currently paying. By leveraging the prospect of a long-term relationship, you may be able to negotiate better terms with your current providers, or switch to a cheaper vendor that can deliver the same quality of services.

Streamlining your business processes is another great way to cut costs. By identifying inefficiencies and redundancies in your operations, you can devise methods to increase productivity while reducing overhead. For example, using dealership management software can automate a lot of tasks, minimizing errors and freeing up valuable time that can be better utilized. Digitalizing your documentation process, for instance, can help save costs on paper and printing, as well as make retrieving and sharing information more efficient.

6REEVALUATING MARKETING STRATEGIES

Digital marketing presents a cost-effective alternative to traditional advertising mediums like television commercials or print ads. According to Google, 95% of car buyers use digital as a source of information. Hence, shifting your marketing efforts towards channels like social media, search engine optimization (SEO), and email marketing could yield substantial savings.

Moreover, digital platforms offer advanced analytics tools, allowing you to track the performance of your campaigns and finetune your marketing strategies based on data-driven insights. By focusing on highperforming channels and eliminating underperforming ones, you can significantly reduce your advertising expenses while still reaching your target audience effectively.

7INVESTING IN EMPLOYEE TRAINING AND DEVELOPMENT

While this might seem counterintuitive, investing in your employees can lead to cost savings in the long run. Properly trained employees are more efficient, make fewer mistakes, and provide better customer service, leading to more sales and less waste. Additionally, providing opportunities for growth and development can increase employee loyalty and reduce turnover, which can save significant costs related to hiring and training new employees.

8 REDUCING ENERGY USAGE

Energy costs are another area where you can potentially save. Implementing energy-saving measures like using energyefficient lighting, insulating your buildings, and encouraging employees to turn off equipment when not in use can lead to substantial savings over time. Investing in renewable energy sources like solar panels can also yield significant returns in the long run, and they’re beneficial for the environment too.

9 IMPLEMENTING PREVENTIVE MAINTENANCE

Preventive maintenance of your dealership’s equipment and infrastructure can save you from costly repairs and replacements in the future. Regular maintenance can prolong the lifespan of your assets and ensure they’re running at optimal efficiency. This can be as simple as regular oil changes and tire rotations for your demo vehicles, or timely servicing of your HVAC systems and other utilities.

DRIVING PROFITABILITY BY STREAMLINING CAR DEALERSHIP EXPENSES

Reducing dealership expenses isn’t just about cutting costs—it’s about optimizing your resources to achieve the best results. With careful analysis and strategic planning, you can significantly reduce your expenses without compromising on the quality of service you provide to your customers. This way, you not only improve your dealership’s profitability but also its sustainability in the long run. Remember, every penny saved is a penny added to your bottom line. n

SERVICE PROVIDER DIRECTORY

WSIADA service providers are best in class.

We invite you to explore their services and please mention that you saw their listing in the Front Row magazine.

Accounting & Tax Services

CLA Connect (509) 664-9630 claconnect.com

RH2 | Rekdal Hopkins Howard (425) 658-1400 rh2cpas.com

Auctions

ACV Auctions (800) 553-4070 acvauctions.com

Adesa Portland (503) 492-9200 adesa.com/portland

Adesa Seattle (253) 735-1600 adesa.com/seattle

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

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

Ehli Auctions (253) 572-0990 ehliauctions.com

Insurance Auto Auction (IAA) Seattle (206) 658-6900

iaai.com

Insurance Auto Auction (IAA) Spokane (509) 891-2388

iaai.com

Kaman Auctions (425) 640-5111 kamanauctions.com

MAG Auctions Spokane (509) 244-4500 magauctions.com/daanw

Learn more on inside back cover

MAG Auctions Seattle (253) 737-2200 magauctions.com/daasea

Learn more on inside back cover

Manheim Portland (503) 286-3000 manheim.com

Manheim Seattle (206) 762-1600 manheim.com

Learn more on inside front cover

Yarbro Auctioneers (509) 765-6869 yarbro.com

Benefits & Health Insurance

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

Bonds and Commercial Insurance

Farmers - Karen Dunn Insurance Agency (253) 964-7070

business.farmers.com/karendunn

Shepard & Shepard Insurance Solutions (855) 396-0488

shepquote.com

Learn more on page 11

Dealer Management Systems

Carousel Software (509) 926-8848

carouselsw.com

Digital Marketing

Glo3D (416) 575-4448

glo3d.com/washington-glo3d

Finance and Insurance

Dynamic Dealer Services, Inc (208) 818-6931

dynamicdealerservices.com

NW Dealer Financial Services (425) 922-3560

northwestdealerservices.com

Learn more on page 12

OneMain FinancialSouthern WA (360) 726-3263

jason.eidsvik@omf.com

Learn more on page 7

Southwest Dealer Services (206) 571-3068

swds.net

Floor Plan Companies AFC (253) 333-0300

afcdealer.com

Learn more on page 12

Floorplan Xpress (503) 621-9260

floorplanxpress.com

Legal Services

Davies Pearson, P.C. (253) 620-1500

dpearson.com

Lending

Lobel Financial Corp. (503) 653-8000

lobelfinancial.com

Nationwide Northwest (206) 259-0203

nac-loans.com

Reliable Credit Association (253) 240-1818

reliablecredit.com

Satellite Radio

SiriusXM (866) 659-3961

siriusxmdealerprograms.com

Learn more on page 7

Risk Management

ATTM Technologies (206) 350-2886

attm-tech.com

Vehicle and Fleet Management

Passtime GPS

(866) 335-2611

passtimegps.com

Vehicle Service Plans

American Guardian Warranty Services

mercorpltd.com

(253) 229-6988

GWC Warranty

gwcwarranty.com

(425) 233-4705

Download the WSIADA App!

Online shopping, e-news, alerts and more!

In a desire to be more accessible to dealers and maintain a footing in the ever expanding digital age, WSIADA has its own mobile app for dealerships to utilize features that the Association has available. The app is for members and nonmembers. It’s free and easily downloadable through your smartphone app store. Options that are available:

• Dealer Alerts

• Events Calendar

• Online Store

• Smart Dealer Auction Discounts

• the Front Row Magazine

• Dealer Auction Schedules

• Sponsor Contact Information

• and much, much more!

Manheim Enhances MMR, Opens Access

to All Wholesale Marketplaces

The company has broadened the coverage of MMR to include more vehicles while making it more responsive to today’s fast-changing market dynamics.

Manheim recently announced the company has delivered several enhancements to the Manheim Market Report (MMR) to make it easier for wholesale buyers and sellers to make more informed decisions. Notably, the company has broadened the coverage of MMR to include more vehicles while making it more responsive to today’s fast-changing market dynamics. Clients will also enjoy a cleaner interface and more trustworthy estimated retail values. And finally, Manheim will now make MMR available to all wholesale marketplaces.

“The market is shifting faster than ever before, and our team has worked tirelessly to ensure that MMR moves at the same speed to reflect data from the Manheim Marketplace in real time,” said Zach Hallowell, senior vice president of Manheim Digital at Cox Automotive. “We’re very excited to offer clients across the industry a better, more accurate and more responsive tool that delivers the information they can use to make smart decisions.”

MMR is the industry’s most trusted source of wholesale vehicle valuations and is used by tens of thousands of consignors and dealers each month to value millions of used vehicles. In fact, it was used 2.5 billion times in 2022 to value vehicles.

With the latest updates, detailed below, Manheim said it has once again demonstrated its commitment to innovation and its dedication to helping buyer and seller clients succeed in the automotive industry.

• More Coverage: Previously, MMR was able to value 97% of all vehicles listed in the Manheim Marketplace. Today, that number is now 98.5%, covering half of the remaining cars that didn’t previously have an MMR value.

• More Accurate: In normal markets, MMR’s 30-day lookback was a trusted indicator of current vehicle values based on past sales. But today’s market swings faster — and now so does MMR. Today MMR is able to take into account broad marketplace fluctuations as they are happening, so it more closely reflects vehicle values in real time.

• More Insights: Understanding the potential retail value of a vehicle is important when buying and selling. In addition to more informed wholesale values, MMR now offers a new-and-improved retail value as well, based on real transaction data from Cox Automotive.

• Better Experience: Clients now enjoy a simplified interface that puts even more information at their fingertips. Thanks to an improvement in the user experience design, they can make better data-driven decisions, faster.

• More Widely Available: Previously, MMR was available to clients through Manheim. com and syndicated to third-party software providers; however, Manheim is now making it available to all wholesale marketplaces across the industry.

“The depth and breadth of Cox Automotive’s first-party data is truly unparalleled in the industry,” added Dr. Ben Flusberg, senior vice president, Data Solutions, at Cox Automotive. “These enhancements to MMR and increased access to the tool show our commitment to not just continual improvement but to making it easier for buyers and sellers across the industry to make more informed decisions — no matter where they do business.” n

READ & RESPOND: AUGUST

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

1: According to which RCW statute in Washington State allows for permissible reasons to issue more than one temporary license plate?

A: 46.70.180(8)

B: 46.70.090(1)

C: 46.70.128

D: 46.16A.200(7)(b)

2: WSIADA membership provides automatic membership in the National Independent Auto Dealers Association.

A: True

B: False

3: What percentage of dealerships stated online payment estimators were inaccurate or unrealistic?

A: 64%

B: 69%

C: 70%

D: 75%

4: To save money, regular maintenance of your dealership equipment can reduce costly repairs and replacements.

A: True

B: False

5: Remanufacturing of auto components can reduce what during production and increase asset value?

A: Supply Chain

B: Plastics

C: Latex

D: Emissions

6: Synthetic paper required by HB 1790 beginning July 1, 2023 is needed for what system to replace hard temp papers?

A: WSIADA.com

B: Contracted Plate Search

C: MYDOR

D: DRIVES

7: Dealerships can make a stronger case for the value of auto financing and insurance by providing this to employees?

A: F&I training

B: Bonuses

C: Promotions

D: Competition

8: This new solution may potentially help your dealership communicate with your service customers.

A: Social Media

B: Internet Advertising

C: Artificial Intelligence

D: Telephone calls

9: Dealer plates cannot be on a seat, dashboard or in a front or rear window when in use.

A: True

B: False

10: This date will be when any dealer temporary permit (hard temp) version is no longer valid?

A: July 14, 2023

B: August 1, 2023

C: July 15, 2023

D: September 1, 2023

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

q I have read and understand the disclaimer above.