F&I and Showroom June 2011

TRENDS: TOP 10 ACCESSORIES | MAD MARV: IT’S THE LITTLE THINGS | LEGAL: SOCIAL POLICYMAKING

A BOBIT PUBLICATION FI-MAGAZINE.COM

OUTLOOK

The Disaster in Japan Halted Production, But the Rising Cost of Gas Is What Has Industry Watchers Concerned

Specialty Retailers Like EuroCar’s Tilo Steurer Have Made eBay Motors a Key Part of Their Business. Learn How the Online Marketplace Plans to Use New Support Programs to Make Their Model Work for Dealers of All Stripes.

MAKING A

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Contents

Endorsed as the official publication of the Association of Finance & Insurance Professionals

June 2011 Volume 14, Issue 6

Features Dealer Profile

14 Making a Bid eBay Motors’ online marketplace is no longer exclusive to sellers of unique and one-of-a-kind vehicles, with more dealers using it to expand their market reach and increase sales.

14

Finance and Insurance

18 Make the Most From the Leased Tom Wilson of Riverside Auto Group, the magazine’s 2010 F&I Dealer of the Year, opens his playbook to reveal six tried-and-true products that make for great lease add-ons.

Market Analysis

20 Cloudy Outlook The March 11 disaster in Japan is testing the industry once again, but no one is panicking. Gas prices could change that.

18

Compliance

26 A Dealer’s Guide to Connecting Technology and Compliance

20

Before you select your next compliance software tool, read this primer on connecting technology to your dealership’s compliance processes.

Departments 4 Letters 6 Editorial 8 Developments 34 Sales Driver 35 Mad Marv 36 Legal 40 Bottomliners 41 Ad Index 44 Industry Trends

26 F&I and Showroom (ISSN 2154-1728) (USPS 018-706) (CDN IPM# 40013413) is published monthly, by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals Postage Paid at Torrance, California 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to F&I and Showroom, P.O. Box 1068 Skokie, IL 60076-8068. Please allow six to eight weeks for address changes to take effect. Subscription Prices: United States $20 per year; Canada $35 per year; Foreign: $35 per year. Single copy price: $10; Fact Book: $30. Please allow six to eight weeks to receive your first issue. Bobit Business Media reserves the right to refuse nonqualified subscriptions. Please address editorial and advertising correspondence to the executive offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication June not be reproduced either in whole or in part without the consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.

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Letters It’s Time to Respond TO THE EDITOR: The industry needs to issue an official rebuttal to the report you detailed in your May column (“Consumer Advocates Are At It Again”). And we need to do this in print, online and as prominently as possible. That rebuttal also needs to be sent to the organization that issued this report, the so-called Center for Responsible Lending, as well as to those individuals who receive the organization’s reports.

Let’s start with the Center’s second conclusion, which states: “Dealers tend to mark up interest rates more for borrowers with weaker credit.”

It’s amazing to me how these analysts can’t see the obvious. Of course rates are marked up based on the strength of credit. Loans for used vehicles and smaller amounts are riskier because the borrower isn’t as invested as someone looking to borrow a larger amount on a new car. What makes these people “vulnerable targets” for increased rates is their own credit and payment histories. If you have poor credit, you’re not going to get the best rate. Please tell me you’re going to officially refute these bozos.

Michael White Luckily for all of us, brighter minds than mine, including our own legal columnists, Tom Hudson and Michael Benoit, were present at the roundtable discussions the Federal Trade Commission hosted in Detroit in April. And from what I hear, it didn’t take long to refute the now-familiar anecdotes and baseless accusations trotted out by the consumer advocates in attendance. So, I think the industry has rebutted the study’s supposed findings, and it did so in front of the people that really matter: policymakers. — Gregory Arroyo

Mixed Feelings The whole e-contracting system (“Solving the eBusiness Puzzle,” May 2011) sounds good on paper (pardon the pun), but after

TO MATT NOWICKI:

using it for six months, I have to say that it’s a lot slower to implement than just printing a form and having it signed by the customer. Yes, deals get funded quicker, but it takes a lot longer to deliver the customer. And when I have three customers waiting outside of my door, I hate having to e-contract.

Over the last two months, I started using a new online menu that offers e-contracting and e-rating capabilities, and it’s slow. Loading and printing the menu takes forever. I think the concept of e-contracting is great, but there really needs to be some upgrades to speed things up.

Chris Cipriano F&I Manager Hanover, Mass.

Your article provided a nice overview of the different aspects of e-commerce as it relates to aftermarket and finance. I am a huge believer in the power of e-contracting and e-rating, and agree that the perception among dealers is that eBusiness takes longer.

When I first started e-contracting, it was a pain. But after ironing out the wrinkles, things are running smoothly. Today, I e-rate almost all of my service contracts and nearly 80 percent of my contracts are e-contracted. There are even times when the customer’s finance contract is funded before they leave my office, which is the biggest profit incentive for those who are still on the fence about this way of doing business.

Best of all, through e-contracting, you can keep your contracts in transit at less than five days consistently, which will make your controller your new best friend. Even better, if you have a new trainee, eBusiness will ensure he or she doesn’t miss signatures, pull the wrong contract or forget a surcharge. Yes, it takes a little work at first, but that shouldn’t hinder my fellow finance professionals from jumping on board.

TO MATT NOWICKI:

Kelly Wadlinger F&I Professional Annville, Pa.

Vice President Group Publisher, Auto Group Sherb Brown Publisher, Dealer Group National Sales Manager David Gesualdo 727-947-4027 david.gesualdo@bobit.com Executive Editor Gregory Arroyo 310-533-2592 gregory.arroyo@bobit.com Managing Editor / Art Director Tariq Kamal 310-533-2470 tariq.kamal@bobit.com Senior Editor Justina Ly 310-533-2496 justina.ly@bobit.com Great Lakes Sales Manager Robert Brown Jr. 248-601-2005 rbrown8799@aol.com Sales & Marketing Coordinator Tracey Tremblay E-Media and Print Production Manager Brian Peach 310-533-2548 brian.peach@bobit.com Web Manager Sam Kim 310-533-2492 sam.kim@bobit.com Audience Marketing Manager Tony Napoleone

Chairman Edward J. Bobit President & CEO Ty F. Bobit Chief Financial Officer Richard E. Johnson Business and Editorial Office Bobit Business Media 3520 Challenger St. Torrance, CA 90503 Phone: 310-533-2400 Fax: 310-533-2503 Change Service Requested Return Address: Bobit Business Media PO Box 2703 Torrance, CA 90509 Subscription Inquiries 888-239-2455 BobitPubs@Halldata.com Printed in U.S.A.

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Letter from the Editor

Reinventing Our Conference The magazine’s annual conference is quickly taking shape. The editor provides a breakdown of some of the new features you’ll see in September. By Gregory Arroyo

L

et me just say that I’m really excited about the magazine’s annual conference. Some of the ideas we had to expand the conference are finally coming to fruition, and I hope you and the rest of your front-end staffers can be with us this year. We’ll be at the Las Vegas Hilton, with festivities set to kick off on Monday, Sept. 26.

Let me start by saying, I hear you.

Good salespeople are hard to come by.

The good ones have been scooped up by the competition, leaving you with Gen Y and “Mr. Forgotten,” Gen X. And they just don’t get it, right? Well, I’m not going to bridge any generation gaps here, but I want to tell you that this year’s conference is offering something that just might help.

See, Cory Mosley, our Sales Driver columnist, recently launched “Control Your Sales Destiny,” a new seminar series he designed to deliver newschool techniques to salespeople of all ages. Well, Cory has added our annual conference to his seminar tour route, and he’ll be in Vegas for a special preconference event on Sept. 26.

As you’ve probably read in his columns, Cory preaches a new-school philosophy to car sales. He’ll spend a good portion of his seminar reviewing his philosophy, and will touch on the opportunities that exist in the social media realm. However, what I wanted to call your attention to is the time management segment of Cory’s seminar. So, if you want to give your salespeople a good foundation for success, Cory will lay out a daily routine your salespeople can follow.

I hope his event, which runs from 8 a.m. to 4 p.m., is enticing enough to get

some of your sales staffers out there. I also think running your salespeople through some of the F&I courses offered at this year’s conference also will serve to bridge the gap between your store’s front-end departments.

But, like I said, Cory’s seminar is only one of four events kicking off on Monday. Greg Goebel, regarded as one of the leading minds in special finance, has agreed to move his annual Special Finance Conference from Dallas to run alongside the F&I Conference. His event kicks off Monday at 4:30 p.m. and runs through Wednesday. And with 25 percent of Americans claiming a credit score of less than 600, Greg’s conference is a must-attend event for your special finance or used-car manager.

This year we’ve also added a new pre-conference event called Buy Here, Pay Here for Franchised Dealers. It also starts on Monday and is being hosted by Rod Heasley and Gary Perdue of Peritus Portfolio Servicess, a purchaser of auto loan paper.

Ken Shilson, founder and president of the National Alliance of Buy Here, Pay Here Dealers (NABD), is helping to plan the event and will be there to explain how BHPH can be used to maximize your used-vehicle inventory. If you’ve ever considered making the leap into the BHPH business, then you need to be at this event.

Also on Monday, David Robertson and his Association of Finance and Insurance Professionals will host a certification class. It runs from 10 a.m. to 4 p.m., and it’s the perfect opportunity to get your team certified at a special show rate.

Now, the F&I Conference and

Expo opens Tuesday morning after a Monday night reception. Like last year, the event will carry a trainingheavy theme with more than 17 educational sessions. Now, as I type this sentence, members of our advisory board are casting their final votes on the topics our agenda will field this year. And let me just say, I think our board has hit the mark again.

One thing you can expect is an update on the Dodd-Frank Wall Street Reform and Consumer Protection Act, which goes into effect on July 21.

There were a number of unknowns that came with this new piece of legislation and our legal experts will be there to provide the dirty details.

The conference agenda also will field several topics outside of the F&I realm, including digital marketing, social media and sales. Now, this brings me to my next point.

See, this year we’re marketing our annual get-together under the Industry Summit tagline. Like the magazine, we’re looking to expand our conference into more of a front-end conference. Yes, we want to help you roll more cars, but our main focus is on helping you roll more profitable deals.

Lastly, stay tuned into www.fimagazine and www.industrysummit. com for updates and announcements.

Also be sure to be on the lookout for two new contests the magazine is launching this year. One is our annual F&I Dealer of the Year contest, while the other is a new contest that aims to find the best F&I presentation in the nation. Hey, at stake are cash prizes and an all-expense paid trip to the Industry Summit, so keep an eye out for it.

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Developments NABD 2011 Draws Record Attendance THE NATIONAL ASSOCIATION OF

Buy Here, Pay Here Dealers drew a record crowd to its annual conference in Las Vegas, setting the stage for an East Coast edition in November, organizers said.

The association’s founder, Kenneth Shilson, credited the attendance increase to the addition of a two-day Dealer Academy, two which began May 16. w The inaugural event, T which Shilson plans to w expand next year to e include two educational in tracks, helped expand the trac larger event’s attendee base.

“Overall attendance was up more than 20 percent this year and included more than 1,800 total attendees,” Shilson said. “It was a great five days.”

Marking its second year at the Venetian/Palazzo resort, NABD 2011 ran from May 18–20. The program featured more than 80 speakers, including F&I and Showroom contributors Thomas B. Hudson and Melinda Zabritski of Hudson Cook LLP and Experian Automotive, respectively, as well as keynote speaker Greg Link of Franklin Covey and Manheim’s Tom Webb.

The agenda’s panel discussions and workshops covered standbys such as benchmarks, remarketing and payment assurance technology as well as social media and mobile technology. The exhibition space broke new ground as well.

“The exhibit hall included 120 sponsors and was the largest in the history of the [BHPH] industry,” Shilson said. “Attendees networked with other attendees, experts, sponsors and recovery professionals who offered products and services which increase profits and cash flow.”

For more information on the East Coast event, scheduled for Nov. 6-8, 2011, in Atlanta, or to download presentations from NABD 2011, visit www.bhphinfo.com.

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In April, Detroit’s Wayne State University played host as dealer and consumer advocates participated in a series of FTC-moderated panels.

FTC Finds Dealers Compliant With Consumer Protection Rule

A

fter completing its investigation of nearly 50 automobile dealers, the Federal Trade Commission found broad compliance with the agency’s Rule Concerning Preservation of Consumers’ Claims and Defenses, more commonly known as the “Holder in Due Course” rule.

The rule protects car buyers when dealers sell buyers’ credit contracts to other lenders. Under the rule, if a dealer engages in fraud or makes

misrepresentations in selling a car on credit, a consumer can raise the dealer’s conduct as a defense to the lender’s demand for payments.

The rule currently does not require dealers to include the notice in credit contracts when the amount financed exceeds $25,000. However, as a result of the Dodd-Frank Act of 2010, which takes effect on July 21, 2011, the rule will require the notice in these contracts of up to $50,000.

Gov. Brown Signs Bill to Fix California GAP Problem

L

egislation aimed at amending a California law that prohibited the inclusion of deductible coverage in the sale of GAP was signed into law May 9 by Gov. Jerry Brown, ending a four-month effort led by several trade organizations and an F&I product provider.

Dealers can now once again Brown include deductible coverage in the sale of GAP. The law’s passage came 25 days after the California Department of Insurance was to begin enforcing a rule that required GAP providers to remove deductible coverage from their agreements and barred dealers from including deductible coverage in the sale of GAP if they had not obtained an insurance agent’s license.

The fixer legislation was spear-

headed by San Diego-based OwnerGUARD Corp., which gained support from the California New Car Dealers Association, the Guaranteed Asset Protection Alliance, The American Financial Services Association and the Consumer Credit Industry Association.

Michelle Dicks, who serves as general counsel for OwnerGUARD, believes the campaign to amend the rule also could benefit dealers in other states. “This is a valuable product to consumers and the industry,” she said. “And if a similar situation comes up in other states, the industry now has some legislative history in California to work with.”

To read the online version of this story, go to www.fi-magazine.com/ fix-gap.

WAYNE STATE UNIVERSITY PHOTO BY ANDREW JAMESON VENETIAN RESORT PHOTO BY ZOOFARI

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Developments

NADC, NAE Step Up for Signet Dealers

T

he sudden closure in March of Vacaville, Calif.-based Signet Financial Group left many dealers responsible for service-contract refund agreements. Several companies, however, have stepped up to help.

So far, North American Dealer Co-Op (NADC) and National Automotive Experts (NAE) have separately offered to honor current Signet contracts.

The Oregonian reported in March that Greg Lehmann, Signet’s owner, sent a letter to consumers informing them that Signet had worked out a solution with the Colorado-based North American and its sister company, National Administrative Dealer Services, “that will allow dealers to continue to write contracts without interruption.”

Chad Greenlee, NADC administrator, said the coop has offered its moneyback program for the last 17 years. “We’ve always been friendly competitors, and when Signet was going under, we were notified

[on March 24] that they were closing their doors,” he said.

Dealers can honor current Signet contracts through North American, which will provide coverage through its insurance provider, Western Insurance Company.

If dealers put money into a dealer reserve account held with Western, the insurance company will then assume liability for the remainder of those Signet contracts but will not be offering refunds on currently expired contracts. NADC’s policy for Signet customers will be provided through the co-op and will allow dealers to see the entire policy before they sign up.

National Automotive Experts also is accepting Signet contracts through its NUNL (“No Use, No Lose”) service contract refund program. The company says contracts must be less than 24 months old

to qualify and that dealers must remit the NUNL paperwork as well as the original Signet contract to receive payment. In addition, NAE will charge dealers a $25 surcharge for contracts over six months old and a $50 surcharge for ccontracts that aare more than 112 months oold. The comppany says it w will mail custo tomers a new co contract with a le letter explainin ing the circumsta stances.

“We aren’t relying on the program to create income for our NUNL program, but to enhance the selling of our service contracts and other products,” said Kelly Price, president of NAE. Gary Fagg, who serves as a consulting actuary at Hurst, Texas-based CreditRe, said refund products are a good value in theory but can be problematic from an actuarial standpoint. Costs can add up if one considers that most agreements promise to pay

the VSC-related losses for consumers with claims and refund the retail VSC price to the consumer if he or she didn’t file a VSC-related claim. “It takes every ‘gotcha’ you can dream up to keep the loss costs in a manageable range,” Fagg said.

And that’s why companies like NAE don’t mind being the cheapest. “Service contract refund programs can be effective if reserved correctly,” said NAE’s Price. “As many companies in the past have been less expensive than ours, we have held strong to keeping the reserves at levels that, in some cases, were as much as the ‘cost’ of the other programs. We know we aren’t the cheapest, but we intend to be around for a long time.”

Greenlee added: “It’s a program that’s been around long enough that, if it’s done properly, can sell a lot more service contracts and protect a lot more customers.”

To read the online version of this story, go to fi-mag azine.com/signet-folds.

Ally Financial America’s Largest Auto Finance Company, Report Finds

A

lly Financial claimed the title of largest auto finance company in the United States in 2010, according to Auto Finance News’ annual “Big Wheels” ranking of car lenders and lessors. Ally Financial, the bank holding

company formerly known as GMAC, amassed an auto finance portfolio of $74 billion last year, $10 billion more than Toyota Financial Services, which ranked second.

The Top 10 auto finance companies in the U.S. in 2010 were:

6

Bank of America Dealer Financial Services

7

American Honda Finance Corp.

8

BMW Financial Services

Ford Motor Credit Co.

9

Nissan Motor Acceptance Corp.

Wells Fargo Dealer Services

10

Santander Consumer USA

1

Ally Financial

2

Toyota Financial Services

3

Chase Auto Finance

4 5

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Developments Study Reveals Top 10 Reasons Shoppers Leave Dealerships

GM Financial Posts $77 Million Net Income

Triad Founder Launches New Subprime Unit

GENERAL MOTORS FINAN-

FOUR FORMER TRIAD

A STUDY BY CAR-RESEARCH

cial Co. reported net income of $77 million for the quarter that ended March 31, 2011, up from $63 million in the year-ago period. Loan originations ended the quarter at $1.1 billion, up from the $935 million recorded in the fourth quarter 2010 and up from the $624 million recorded in the year-ago period.

Receivables totaled $8.7 billion on March 31, according to the company.

Financial executives have partnered with a PerWeinberg Partners ella W affiliate to form af CarFinance Capital C LLLC, a direct and iindirect auto finance ccompany catering to the nonprime market. th Based in Irvine, Calif., Base CarFinance Capital will launch on the West Coast and expand to Texas in June. Triad founder Jim Landy will serve as president and CEO, and former Triad executives Dennis Morris, Jeff Butcher and John O’Dowd, will be part of the executive team.

XRM, a CRM solution provider, revealed the Top 10 reasons prospective car buyers walk off the lot without buying. At the top of the list were sales and management staff issues, such as rude treatment of customers and lack of knowledge about products or financing. “Sales and management staff issues” finished first, followed by “Shopping,” “Price,” “Financial,” “Inventory,” “Style,” “Payments,” “Trade,” “Time,” and “Decision maker.”

Chrome Provides VIN Data, Decoding Solutions to eBay Motors CHROME SYSTEMS INC.

will provide VIN data and decoding solutions to eBay Motors. The solutions were designed to make listing vehicles and parts and accessories easier for sellers. Chrome’s Automotive Description Service and Chrome IQ solutions will give eBay Motors the capability to enhance searches, providing one-to-one vehicle matching for the most detailed brand, model, trim and equipment descriptions, according to the company.

Moves and Hires The Warranty Group Inc., an underwriter, administrator and marketer of service plans and related programs, has appointed Joel Appelbaum as chief underwriting and actuarial officer. He previously served as the North America chief risk officer for Zurich. Appelbaum also held positions with CNA Insurance and Argonaut Great Central Insurance Co. Resource Automotive, a unit of The Warranty Group Inc., named Joe Amendola as senior vice president of national sales. He is responsible for all sales and marketing activities within Resource’s U.S. retail automotive segment. Amendola joined Resource in 1994 as an F&I specialist.

First Extended Service Corp., a unit of The Warranty Group Inc., has named John Luckett as senior vice president of sales and marketing.

He will be responsible for all sales and marketing activities within First Extended’s U.S. agent distribution segment.

Safe-Guard Products International LLC has promoted Randy Barkowitz to CEO and David Duncan to president. Barkowitz served as Safe-Guard’s CFO for four years and was responsible for several strategic initiatives. As senior vice president, Duncan has been responsible for account management, sales and business development with OEMs, F&I agents and national retailers.

JM Family Enterprises Inc. has promoted Carmen Johnson to executive vice president of JM Family, and Dan Chait to senior vice president of subsidiary World Omni Financial Corp. Johnson joined JM Family in 2007 as vice president of human resources. She will continue to serve as the company’s principal legal advisor and oversee the human resources, learning and organizational development, benefits and healthcare services functions.

Chait joined World Omni in 2002 as vice president of asset management. As senior vice president, Chait will have primary responsibilities for Southeast Toyota Finance portfolio management, dealer services, operations, sales and marketing.

12 F&I and Showroom June 2011

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Dealer Profile

Bid

eBay Motors’ online marketplace is no longer exclusive to sellers of unique and one-of-a-kind vehicles, with more dealers using it to expand their market reach and increase sales. By Justina Ly

Making a

N

estled in a nondescript business park in Costa Mesa, Calif., is EuroCar, an independent dealership that sells preowned luxury and exotic vehicles.

EuroCar’s unassuming concreteand-glass building gives passers-by no hint at the multimillion-dollar inventory of Aston Martins, Bentleys, Ferraris, Porsches and Rolls-Royces parked inside the dealership’s warehouse showroom.

“You’ll drive by us and you won’t recognize what this is,” says Tilo Steurer, EuroCar’s founder and owner. “It’s a huge warehouse. You can’t see any cars outside.”

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EuroCar’s modest exterior belies its success. The independent dealership reached $76 million in sales volume last year. Eight-five percent of total sales are Internet based, and 60 percent of monthly sales come from eBay leads. The dealership is recognized by eBay Motors as a “top-rated seller” and has earned a 100 percent positive feedback rating from buyers.

The Upscale Auctioneer

A native of Germany, Steurer started EuroCar in 2006 after spending several years in the vehicle service and wholesale industries. He lists 75 to 80 vehicles on eBay Motors each week on a 10-day auction cycle. His

store’s average monthly retail volume is 65 to 70 vehicles, and eBay helps Steurer reach customers all over the world, including Australia, Canada, China, Russia and Sweden.

“For us, [eBay Motors is] a great lead generator and a great relationship builder,” Steurer says. “It’s not a blind sale. You get to know your clients over the phone, via e-mail and in person.”

Steurer says his dealership has been successful because its inventory fits the quintessential eBay Motors business model. “eBay is more of a unique market for unique items,” he says.

Since its launch in 1995, eBay has become known as the marketplace PHOTOS BY GREGORY ARROYO

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Dealer Profile “where practically anyone can buy and sell practically anything,” as its Website aptly describes. The eBay Motors division has sold 4.3 million vehicles since it received its own site in 2000 and now receives more than 14 million unique visitors per month.

In the first quarter of this year, 74 percent of vehicles sold on eBay Motors were sold across state borders.

Additionally, the site lists 30,000 franchised and independent dealerships.

Clayton Stanfield, manager of dealer training for eBay Motors, believes the e-commerce Website is a viable marketplace for franchised dealers because it can broaden their reach, deliver stronger leads and generate incremental sales. “Franchised dealers always believed they were at a disadvantage. They always believed that ‘indies’ could sell cars cheaper,” he says. “We had to teach them that they have a huge advantage because they have certifications and warranties. They have available financing which no one else can really do.”

ployees make contact with all of their eBay Motors leads. They call customers who bid for vehicles and offer to answer any questions they may have. She says making first contact lets customers know there is dealership support available to them. In addition, Johnson’s store offers free shipping on any vehicle sold as well as airport valet service.

Johnson says she puts in extra effort for eBay shoppers because they tend to be solid leads. “They’re toward the end of their buying cycle. They’ve bid on that vehicle,” she says. “Now, whether they’ve hit reserve [price] or not, they are buyers and that’s what I like about eBay customers.”

Stanfield says a proactive approach like Johnson’s is key to any dealer’s success. “EBay Motors is a marketplace. We bring the buyer and seller together. The sellers who don’t do as well are the ones who expect the marketplace to also sell the car and make gross,” he says. “You have to be transparent and you have to reach out to your customers.”

Embracing an eBay Business

Bethany Johnson is the Internet manager at RBM of Atlanta-North, a franchised Mercedes-Benz dealership in Alpharetta, Ga. Johnson uses eBay Motors to sell her dealership’s preowned inventory, including MercedesBenz’s and other trade-in vehicles like Hondas and Mazdas. “I’ll launch anywhere from 25 to 35 [listings] at any given point. I do the seven-day auctions because I find that they’re the best bang for the buck,” she says.

Johnson believes her dealership’s embrace of selling vehicles through eBay Motors is atypical of other highline dealerships. “They worry that they won’t get high enough bids on the vehicle or it’s not going to work for them,” she says.

But RBM North is proof that eBay works for luxury franchised dealerships. Johnson estimates that nearly 50 percent of the dealership’s total Internet sales, which account for 35 to 40 percent of the store’s total sales volume, originate from eBay Motors.

Johnson and her team of two em-

Different Markets, Different Results

Unfortunately, even transparency and communication do not guarantee sales success for all franchised dealerships. Chris Carlson, a sales manager at Scott Robinson Honda in Torrance, Calif., sold new and used vehicles for about a year before closing his dealership’s eBay account in April 2011.

“We took a crack at it and we sold some cars off of it,” he says. “[We

Top 10 Selling Vehicles on eBay Motors OCTOBER 2010 –MARCH 2011

1 2 3 4 5 6 7 8 9 10

Ford F-150/F-250/F-350 Ford Mustang Chevrolet Corvette Chevrolet Camaro BMW 3-Series Jeep Wrangler Honda Civic Ford E-Series Van Cadillac Deville DTS Honda Accord

EuroCar’s inventory of specialty vehicles fits the eBay Motors business model perfectly, and owner Tilo Steurer now lists 75 to 80 vehicles per week on a 10-day auction cycle.

sold] anything from cargo vans to a flatbed truck. We did sell some new vehicles — Accords, Civics and Elements.”

Carlson says the downside to selling popular makes and models on eBay is the competition. He had to outpace other sellers and manage bids that were below MSRP. “You call and try to work the lead, but there’s nothing to work,” he says. “It was a steady, consistent flow of ridiculous [leads].”

Despite the hurdles, Carlson says the dealership managed to sell 18 cars and made a profit of $18,000. Still, he decided to close the dealership’s account because of the expenses related to running auctions, which included paying an employee to manage them.

Fred Dixon, a used car and Internet sales manager at Langdale Ford in Valdosta, Ga., also had minor success with eBay Motors. He used the online marketplace for three months last fall, listing 20 vehicles and selling two. “One of them was a HarleyDavidson F-150 Super Crew,” says Dixon. “It’s a specialty vehicle. When we use [eBay Motors] again, it’ll be for a specialty vehicle like that.”

Dixon says that preparing each listing — uploading photos and writing vehicle descriptions — was the most time-consuming part. “For the return on effort, it just wasn’t worth it, even though it’s not that expensive,” Dixon says.

Stanfield says dealers can use eBay Motors’ free suite of services to help manage their listings and improve

16 F&I and Showroom June 2011

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eBay Motors Training for Dealers EBAY MOTORS LAUNCHED ITS eDealer Training Program in 2009 to teach dealers tips, tricks and selling strategies. Since then, the program has trained 2,100 dealers.

Forty-five percent of these dealers had never used eBay before

attending the training program.

The average dealer will have 20 listings running at one time.

For more information about the free training program, visit www.ebaymotors.com/training.

online performance. These services include listing software, photography, vehicle description creation, customer data collection, inventory management and marketplace consultation.

“If you are a dealership that is small and doesn’t have a listing tool, you could use our tool to push your vehicles to eBay,” he says. Dealers also can choose from a host of third-party service providers to create and manage vehicle listings.

Right Time for Used-Car Buyers

The experiences that Johnson, Carlson and Dixon have had with eBay Motors illustrate a growing trend among consumers who are purchasing late-model vehicles from the online marketplace. The site has always attracted car collectors and enthusiasts, but now a more mature buying market is using it to find vehicles like the Camry and Ford F-150, which can be financed, says Stanfield.

“Sixty-five percent of the vehicles that sell on eBay are between two and seven years old,” he says. “Cars that are seven to eight years old and 20 years old aren’t as big of a segment on eBay, because those are the $5,000 to $7,000 cars. Those are more easily sold locally. “[Dealers] are the only people in the world who can finance these vehicles right now at a good rate, or at least offer them a complimentary vehicle,” Stanfield adds. “I think it’s a fantastic time for franchised dealers on eBay right now.”

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Finance and Insurance

Make the The magazine’s 2010 F&I Dealer of the Year opens its playbook to reveal six tried-and-true products that make for great lease add-ons. By Tom Wilson

I

t’s that time again. Leases are making their way back into the finance mix, and F&I managers are diving for cover. Fear not, intrepid finance professionals. Just because it’s a lease doesn’t mean it’s time to roll over and watch your percopy sink like the proverbial stone.

Here are a few pointers and products to help you avoid the lease blues.

There’s still profit out there to be had; you just have to change channels and realize the motivation of your customers. Once you dial in on their needs and wants, the rest, as they say, is history.

Most From t

tion. After all, paying to fix a bankowned car is like knocking on your neighbor’s door and offering to pay for the repairs on his truck. It just doesn’t make sense.

Offer Products That Work

So what should you look for that makes sense to the customer and earns profit for you? Two words: value and convenience. Here are some product suggestions that add a lot of both but won’t break the bank:

1

Appearance Packages: Stories

about acid rain, environmental fallout and harsh climate conditions abound. Read any warranty manual and look at all

the exclusions to the factory paint warranty. At Riverside Auto Group, we pair a Teflon-based paint sealant with a resin-based interior protectant to keep the car looking good inside and out. The customers love it. The treatment makes cleaning a breeze and virtually eliminates the chance they’ll get dinged for excessive wear at the end of the lease.

2

Windshield Treatments: Space-

age technology has made its way to auto retail. Companies such as Crystal Fusion and Diamon-Fusion have produced superior glass treatments that are perfect for leased vehicles. The chemical bonding properties of

Get a Feel for the Deal

Start with a walk-around on the vehicle your customer wants to trade in. What condition is it in? How does the paint look? Are there any dented panels? Are there a lot of stains inside, windshield chips, etc.? If the customer is a returning lessee, will he or she get billed for excess wear and tear?

A lessee wants the same conveniences and benefits that a buyer does.

Yes, the lessee is in a short-term contract, but that doesn’t mean you can’t make money on the deal. If your lessee is in a short-term cycle and anticipates driving around 12,000 miles a year, maybe offering the service contract isn’t the way to go.

On the other side of the coin, if the customer is driving for a term longer than 36 months or anticipates higher miles, then, by all means, offer the end-to-end service contract protec18 F&I and Showroom June 2011

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m the

Leased

the treatments not only protect the glass from chips and nicks, but also provide superior water shedding and enhanced visibility. After all, who wants to see a bill for a new windshield at lease turn-in?

3

Road Hazard and Key Fob Protection: AAA recently released

figures showing that tires are the second largest expense on a car, right after fuel. Add to that the fact that many municipalities are on a tight budget and have reduced the amount of money they spend on road resurfacing. That’s a recipe for some very costly repairs.

Point out to your lessee that the No. 1 exclusion on their tire warranty is road hazard. Without a cost effective tire-and-wheel warranty standing guard over their wallet, the lessee is looking at a huge bill if he or she hits a pothole or debris, blows a tire or bends a rim. Many policies also offer an upgrade to cover lost keys and fobs. Think those aren’t expensive? Check with service to see what a remote fob costs, especially for a push-button ignition.

tracts. Make sure you point out to your lease customers that a lease is not designed to build equity. In the event of a total loss, they could be exposed to several thousands of dollars of risk.

The leasing company will cheerfully accept the check from the insurance company and stick their hand out for the rest. With GAP, they’re safe.

Without GAP, they’re in trouble.

5

Maintenance Plans: What a great way to drive a vehicle! Keep the gas tank full, and the rest of your maintenance is covered. Lessees looking for a convenient way to prebudget their auto expenses will enjoy the features of a “gas-and-go” lease.

Some manufacturers already cover maintenance for a specified period, but for those that don’t, the maintenance plan is a great add-on. It puts profit in F&I and retains a customer through service.

6

Dent, Ding and Excess Wear:

offered by Toyota Financial Services, don’t include GAP in their con-

There are many vendors and leasing companies that offer excess wear-and-tear waivers or policies.

These are a great add-on, especially for a car that will be driven in an urban setting. The lessee’s car will be exposed to a variety of hazards in various parking lots and city streets.

This sample menu from Wilson’s Riverside Auto Group shows the base offerings for a new 2011 Toyota 4Runner in four packages: Economy, Standard, Preferred and Premium.

Thi sample This l menu h has b been customized to meet a customer’s F&I product needs. There are three F&I product packages: A La Carte, Standard, Preferred and Premium.

4

GAP: Some leases, such as one

Even the neighborhood Little Leaguers can inflict some damage while the car is sitting right at home in the driveway. Excess wear policies go a long way in easing the minds of the lessees and removing the stress and worry about getting a bill at the end of their lease.

So, you have a variety of products that lend themselves to creating a great driving experience for your lessees and profit for F&I. You’ll feel better about writing a lease with these products at your fingertips. Your customers will love you for taking the time to customize a worry-free lease experience for them. And you can bet they’ll be back again, looking for that same experience on their next car.

Remember, when you’re looking for profit in your department, a little plus a little plus a little equals a lot.

Customize your menu offerings by using value-added products along with some rate markup, where applicable, and you’ll be smiling after every lease and looking for more.

Tom Wilson is the F&I director for Riverside Auto Group in Escanaba, Mich., and the magazine’s 2010 F&I Dealer of the Year. Contact him at tom.wilson@bobit.com.

Riverside Auto Group presents this “Accept/Decline” form to each customer to confirm the F&I products he or she has selected or declined to purchase.

June 2011 F&I and Showroom 19

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Market Analysis

R

andy Martin, an Internet manager at Columbia, S.C.’s Dick Dyer Toyota, says that May started out with a practically empty incentive sheet. But by the middle of the month, Toyota began offering subvented rates and special leases on several models. It’s not dealer cash like he wanted, but it’s something.

“We were informed in April that we’d see a lot less incentives and inventory,” Martin says. “We were told it would be that way for the next three months.”

Martin’s initial concern was that a cut in incentives might drive customers to other brands, which was an encouraging prospect for Bill Pearson’s single-point Ford store in Peoria, Ill. But it’s Pearson’s used-vehicle depart-

ment that has him excited. “National statistics show that there are four used customers to one new, so there’s high demand for used vehicles,” he says. “Some of that has to do with the economy, some of it has to do with fuel economy and some of it has to do with what happened in Japan.”

Paul Taylor, the NADA’s chief economist, says the industry was facing a post-World War II situation following the March 11 earthquake and ensuing tsunami that struck Japan. The year was 1945, and vehicle production facilities were either wiped out or needed to be reconverted from wartime-goods makers to car producers.

“That was the last time we faced a situation where the supply side of the market was restrictive,” Taylor says.

“Of course, the pressure was higher then, because the capacity for vehicle production in Europe and Japan had largely been destroyed.”

Market watchers like Taylor see a rough summer ahead. Come September, however, it’s anyone’s guess what the market will look like for the rest of the year and beyond.

A New Paradigm

Analysts estimate that the disaster in Japan will result in the loss of 300,000 to 400,000 new vehicles. But U.S. dealers are now selling three used for every new vehicle sold, according to TrueCar.com, so most analysts believe the used market will feel the pressure the most.

“I think July and August is when that pipeline is really going to dry

Cloudy Outlook T industry is facing another possible crisis, but nobody The se seems to be in panic mode just yet. By Gregory Arroyo

The situation was fluid in the weeks following the March 11 disaster in Japan. Toyota initially said it would take until June before production levels returned to 70 percent capacity, but the news brightened in late May when the company raised its projections to 90 percent in late May. Dealerships like Randy Martin’s Dick Dyer Toyota (inset) saw some of its best incentives pulled for the month of May in reaction to Toyota’s initial production estimates. Two weeks later, however, incentives were back.

20 F&I and Showroom June 2011

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PHOTO COURTESY TOYOTA MOTOR CORP.

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Market Analysis up,” says Black Book Managing Editor Ricky Beggs. “The speculation will be, ‘Do I go ahead and buy used cars now, hold onto them for 30, 60, 90 days so when I don’t have new, I’ll at least have used product to sell?’”

Complicating matters are gas prices, which increased by 37 percent from January to April. The concern is that rising prices will cause dealers to unload gas guzzlers in a panic like they did in July 2008, when the U.S. average price for regular gasoline hit an all-time high of $4.11 per gallon and wholesale prices on used trucks and SUVs plummeted by about $12,000 virtually overnight.

May data from AuctionNet, a wholesale auction database, showed that supplies of SUVs, large pickups and intermediate compacts at auction were down 17, 40 and 26 percent, respectively. Jonathan Banks, who manages the NADA Used Car Guide’s data and editorial services, says that’s an indication that dealers aren’t dumping vehicles in a panic.

That could change if gas prices hit $4.50 a gallon. Taylor, however, says recent evidence shows that prices could fall to $3.80 a gallon, which would allow manufacturers to sell their full range of vehicles, including higher-valued vehicles like SUVs and trucks.

Also encouraging is the credit situation. As of March, average loan amounts generated through auto finance companies were up 88 percent over 2009, according to Equifax.

“What we’re seeing is a number of loans across different segments increasing,” notes Michael Koukounas, a senior executive with Equifax.

“They’re not increasing to pre-recession levels, but they’re increasing in general, and automotive is one of the industries leading the way.”

Koukounas attributes the increase to automakers being able to get more for their products, a belief supported by recent incentive data from Edmunds.com. In April, average incentive spending per new vehicle sold fell to its lowest point since October 2005. The NADA’s 24 F&I and Showroom June 2011

FI0611market.indd 24

Banks attributes that to the industry’s new reality.

“I call it a new paradigm, because we had real strong diligence on the new-car side in terms of production and sales, which kind of lowered incentives and kept supply and demand in check,” he says. “And everyone was able to be profitable at these lower sales levels because we’re selling more vehicles on a pull-type basis.”

But this new reality also has made the market more sensitive to shocks to the system, as was seen following the Japan disaster. Wholesale prices for intermediate compacts increased 10 percent in March and should have, at most, remained flat for April. Instead, prices increased another 6 percent after Toyota and Honda announced that dealer allocations would be at about 50 percent for May and June.

Dealers Better Prepared

The good news is that dealers are getting more for their vehicles at retail. Black Book’s Beggs says retail

“People thought I was crazy when I began lowering prices on my used cars based on market demand, and that resulted in a 300 percent increase in business.”

— Bill Pearson, Finish Line Ford prices for three-year-old used vehicles in May were up 22 percent, or about $3,700. Prices on entry-level vehicles and compact SUVs were up almost 29 and 7.5 percent, respectively. “The consumer is saying, ‘I don’t want to be tied up with a $25,000 to $26,000 loan for five or six years, but I’ve got to have good transportation,’” he says. “So the thinking is, ‘I’ll tie up half of that much money for half that period, and maybe I’ll be able to get the car I want three years from now.’”

Data from AutoTrader and J.D. Power and Associates confirms that dealers are now able to pass on the PHOTO COURTESY FINISH LINE FORD

6/3/11 2:47:54 PM

higher prices they’re paying for vehicles to consumers, but many believe that’s because of tools like vAuto’s inventory management software.

Pearson’s Finish Line Ford is a vAuto user. He says the software has kept all five of his used-vehicle buyers dialed in. “Most dealers don’t calculate days supply, and that’s one of the things vAuto does real well,” says Pearson. “Right now, the software is showing me that there’s only a 35-day supply of SUVs. Now, I’m not looking to pick up 20 or 30 of them, but if I see a 30-day-supply vehicle and no one else is bidding, well …”

Pearson is looking to move 3,000 used vehicles this year, which he’s done in each of the last two years.

He’s even tinkering with the idea of his Internet department adopting an out-the-door pricing strategy, which he knows doesn’t lend itself to F&I production.

“If we’re really selling value, and we have good F&I products that are backed by good providers, then what are we afraid of?” he asks. “Hey, people thought I was crazy when I began lowering prices on my used cars based on market demand, and that resulted in a 300 percent increase in business.”

Worse Projected, Not Expected

What’s encouraging to Taylor is that brands poised to capture market share are striking a chord with consumers, but he says their ability to produce cars consumers want while keeping quality high will be tested over the next four months.

“Supply is a constraint, but if the ability to stock cars is low, it’s the improvement in the flow of new production to the marketplace that’s encouraging,” says Taylor. “We have stock models and floor models and this is a tight stock, but a flow that was retrained is starting to pick up.”

News out of Japan also began to improve at the end of May. Toyota officials hope to reach 90 percent production by the end of June, and Honda announced it will be at 100 percent

by August. Meanwhile, Justin Leech,

a spokesperson for Toyota Financial Services, says the company is using its response to last year’s recalls as a template for helping dealers through the expected product shortages.

In April, the company rolled an offer to extend leases for up to a year in six-month increments. That will give dealers the opportunity to keep returning customers on the line until the new car they want becomes available. The company also announced that it would increase residual values by two points on all 2011 model-year Toyota and Lexus vehicles, an offer that runs through August.

“What we’re going through now is not unlike what we went through during the recalls,” Leech says. “We created a program specifically to help our dealers manage through that period and I think we were the first captive to announce support programs this time around. So we were pretty quick to respond then and we were pretty quick to respond now.”

Ford stopped making some vehicles for one week after the crisis in Japan. A resulting shortage in parts was partially responsible, but Todd Nissen, a Ford spokesperson, says the company also was responding to slowing demand for its F-Series trucks. Ford also faced a potential shortage of certain colors produced in Japan, a problem that was quickly rectified when the OEM located replacement colors.

“There were several layers of supply chain that were affected by what happened in ways I think people never even imagined,” Nissen says. “It was a bit of a learning experience, but, at the same time, it was an opportunity to put contingency plans into use.”

Although the picture was beginning to clear up, the NADA’s Taylor admits his vision of the future is clouded. “We’re hopeful that manufacturers headquartered in Japan can not only get back to near peak levels of products, but can sustain those levels through the end of the year,” he says. “But we simply don’t know what the outlook is from August through the end of the year.”

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Compliance

A Dealer’s Guide to

Connecting Technologyand Compliance Before you select your next compliance software tool, read this primer on connecting technology to your dealership’s compliance processes. By Joe Bartolone

T

he Federal Trade Commission (FTC)’s RiskBased Pricing Rule is the latest example of how compliance creates industries, as a slew of solution providers lined up to help dealers navigate the industry’s newest regulation.

The technology they developed will undoubtedly add efficiency and accuracy to their dealer clients’ compliance efforts, but it can’t be effective without the right processes and procedures in place.

Before you begin your search for new software, let’s review some areas of the sales and F&I processes where technology can support your dealership’s compliance efforts.

Sales: Discriminatory Lending and UDAP Claims The Goal: Although dealers escaped litigation from the

class action discrimination lawsuit filed against five captive lenders early last decade, they need to be careful that the processes they use to quote payment avoids any hint of discriminatory practices. The suit, which ended in a multimillion-dollar settlement, is still fresh in the minds of plaintiffs’ attorneys and regulators, so expect the new Consumer Financial Protection Bureau to continue to monitor auto lending practices.

The multimillion-dollar ar settlement against five captive ve lenders for discriminatory ry practices early last decade will ill be fresh in regulators’ minds ds for years to come. Dealers who ho demonstrate a willingness and d ability to play within the rules es will benefit as auto lending g continues its comeback. k.

26 F&I and Showroom June 2011

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Compliance

Dealerships are vilified by the courts when staff members are accused of fraud, but customers who know how to work the system also represent a potential area of exposure.

Second, dealers need to be cognizant of potential claims of Unfair and Deceptive Acts and Practices and enact procedures that foster full disclosure. Remember, attorneys are on watch for these types of issues because UDAP awards typically provide for treble damages if the court finds evidence of willful misconduct.

Sales Finance: Bank Fraud The Goal: Falsifying credit app information, stips, down payments and collateral are potential areas of exposure for dealers. However, your employees are not the only ones you need to watch. There are customers who’ve been around the block a few times and know how to work the system.

The Process: If your dealership runs credit before present-

ing the first pencil, a good best practice for avoiding charges of discrimination is to develop a rate matrix based on credit scores. The matrix can be broken down in increments of 25 or 50 points. One method would be to take a captive finance rate matrix and add two points to the tier-two buy rates. So, in practice, every customer who has a 625 score should be quoted a payment using the same first pencil rate.

If your store doesn’t run credit before the first pencil quote, then establish a “store” rate that is used for all customers. This rate could be based on an average rate of sold deals over the last 90 days. The key here is consistency.

Full disclosure is critical to avoid UDAP claims when the deal reaches the negotiation stage. That means giving each customer all the necessary deal terms, including the selling price, trade allowance, payoff, down payment, rebate, the amount financed, payment, term and rate. Transparency will not only help answer any future questions about what the customer agreed to, it also will eliminate the potential for payment packing or using hidden or unrealistic terms or rates to calculate payments.

Technology Breakdown: A computer desking system can

be your greatest weapon against discrimination or UDAP claims. Look for a solution that integrates with your dealership management system, as this will allow desk managers to quickly and accurately work a deal while computing multiple combinations of finance and lease terms. Built-in rate matrices are another nice feature, allowing managers to compute first-pencil payments based on credit scores.

When a solution is selected, be sure to lock down the defaults on the rate matrices, and to retain the first-pencil and final agreed-to term worksheets.

The Process: There are two key processes to consider:

First, have customers complete their own application.

When an application must be completed on the customer’s behalf, have him or her sign the application and initial key credit determinates, such as time at address and job. This is not a legal requirement, but it will provide a nice defense if the customer provides false information.

Dealers also must institute safeguards to ensure that hold checks, deferred down payments and credit cards aren’t accepted without the lender’s knowledge. Not only is this found to be in violation of dealer-lender agreements, but accepting these types of payments and disclosing them as a cash down on the retail installment sales contract could be a violation of the Truth in Lending Act’s Regulation Z. Dealers also must take steps to ensure the value of the collateral is properly stated. That’s why it’s a good practice to create a book-out sheet for trades and purchased used cars added to inventory. These sheets should be signed by the manager who created and submitted them to the lender.

Additionally, all stipulations should be authenticated.

Benefit letters from the Social Security Administration can be authenticated by understanding the codes embedded in the letter. Stips such as pay stubs, utility bills and tax statements also should be scrutinized.

Technology Breakdown: A solution to electronically sub-

mit credit applications will definitely speed up the process, but the real benefit of these tools is they can print out the data in a format that discloses the credit app, deal terms and the collateral description. This can serve as an exceptional auditing tool to ensure the information provided and submitted match up.

28 F&I and Showroom June 2011

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June 2011 F&I and Showroom 29

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6/2/11 4:42:31 PM 3/23/11 4:23:18 PM

Compliance Automated inventory systems also provide protection against powerbooking, a practice where the seller artificially inflates a vehicle’s value by listing a higher trim level or nonexistent options. The right system will timestamp any modifications made to each vehicle’s record and record the name of the person who made the change.

Rebates/Dealer Incentives: Eligibility Checks

IRS and FinCen Reporting: Form 8300 The Goal: Reporting to the Internal Revenue Service and the Financial Crime Enforcement Network (FinCen) transactions for which more than $10,000 is received from a single buyer can’t be overlooked. Those who intentionally disregard the rule’s requirements could be fined $25,000, or the amount of cash they received but failed to report, whichever is greater. The required reporting document is called the Form 8300. Check out the IRS Publication 1544 for more instructions on complying with this rule.

The Goal: Most new-car sales are tied to some form of factory rebate and/or dealer incentive, so it’s critical that you take measures to ensure that Automated your dealership, the customer and the inventory systems vehicle are eligible for the incentive also provide protection claim submitted to the factory.

The Process: Ensuring that no

The Process: Your cash receipting

system should provide a detailed

description of the form of cash tenagainst powerbooking, dered, as disclosing that money a practice where the seller received was cash, check or credit artificially inflates a vehicle’s card does not provide enough devalue ... The right system will tail to support a good Form 8300 timestamp any modifications process. That’s why each cashier made to each vehicle’s record should be provided with a set of standard abbreviations to properly and record the name of identify the form of cash received — the person who made was it currency or a personal check, the change.

mistakes are made requires a joint effort between sales, F&I and the administrative office.

First, sales should print a copy of the inquiry to the incentive program, confirming the amount of the rebate, promotional rate or dealer incentive available.

Sales should then be required to collect any of the required documentation for consumer-specific programs. The finance office should then ensure that the incentive is properly applied to the deal and that the customer properly executes documentation confirming the amount of the rebate and assignment to the dealer.

Following the delivery, all rebate documentation should be collected and attached to an acknowledgement form indicating that all three departments agree that the rebate is valid. Also, be sure to file the paperwork in the deal jacket.

As for dealer incentives, remember that they are vehicle-specific and may have a volume bonus attached..

Eligibility is usually tied directly to the vehicle’s delivvery date and the incentive payable is generated when n the dealer writes up a retail delivery report. That’s why hy it’s critical that your dealership’s RDR reconciliation on process ensures that vehicles reported monthly to the factory match the sold vehicles detailed in the DMS and then eventually match the credits applied by the factory. ory.

Remember, charge-backs resulting from factory audits dits can be the most expensive penalty a dealer will face.

cashier’s check, money order, bank draft, credit card or something else?

Technology Breakdown: Most DMS offerings include

an automated cash receipts application, which generally provide for multiple classifications of the type of money received. This will assist the accounting office in making sure the Form 8300 is filed within 15 days after receiving a payment, as mandated by this requirement.

The IRS requires the completion of Form 8300 for any transaction in which more than $10,000 is received from a single buyer. Dealers who fail to comply can be fined upwards of $25,000 per violation.

Technology Breakdown: Gaining knowledge of the factory applications and working with your DMS providers ders can provide you with exception reporting tools to manage nage this important component of your operation.

30 F&I and Showroom June 2011

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Compliance

Id Identity theft remains a key concern for government g agencies and a consumer privacy advocates, a and should be for fo dealers as well. With the moratorium on Red t Flags enforcement lifted F as a of Dec. 31, 2010, there is i no excuse left for not implementing a written i policy for protecting p your customers against y identity thieves. i

Identity Check: Red Flags Rule The Goal: The enforcement moratorium the FTC placed

on the Red Flags Rule was finally lifted as of Dec. 31, 2010. That means dealers must have a written “Identity Theft Prevention Program” in place to identity, prevent and mitigate ID theft. Currently, the law sets $3,500 as the maximum civil penalty per violation, but that doesn’t include civil liability.

The Process: This rule requires dealers to designate a

compliance officer and perform a risk assessment to identify the threats of identity theft relevant to their operation.

Dealers must also develop written policies and procedures for detecting, preventing and mitigating identity theft, and employees must be trained to follow them. Audits on the effectiveness of the dealership’s program must be performed periodically, and an annual report detailing the success and shortcomings of the program — as well as any required improvements — must be submitted to the dealership’s board of directors or senior management.

Technology Breakdown: Many companies offering con-

solidated credit reports, F&I menus and specialty ID theft

32 F&I and Showroom June 2011

FI0611comply.indd 32

services have incorporated automated “Red Flag” tools.

These solutions use a variety of indicators to suggest the likelihood of identity theft. Some tools display pass or fail indicators, while others will use proceed-with-sale or a do-not-proceed indicators. Other solutions use a numerical value (e.g., buyer index score, customer identity score).

It’s important to remember that these indicators are generated as a result of searches conducted by data aggregators that track fraud-related activities from other industries and other public records. In other words, these solutions may miss discrepancies in the customer’s credit report.

They also can’t measure Red Flag behavioral patterns detected during the sales process.

Out-of-wallet questions are another great weapon against ID thieves. These questions are typically based on information available in public records. They’re a good way to catch customers who may be posing as someone else. You probably can think of a few such questions yourself, but most solution providers can electronically generate a set for you.

Joe Bartolone is an associate with gvo3 & Associates, a nationally recognized sales and F&I compliance consulting firm. He can be reached at joe.bartolone@bobit.com.

PHOTO ©ISTOCKPHOTO.COM / DAVE WHITNEY

6/2/11 4:42:34 PM

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6/2/11 4:57:46 4:42:39 PM PM 2/17/11

Sales Driver

No Training, No Complaining Can’t find good salespeople? Gen Y have you perplexed? The magazine’s sales columnist offers a few thoughts. Will you be willing to listen? By Cory Mosley

B

y the title of this column, you might assume that my message this month is directed at sales professionals, but it isn’t. What I want to do is drive home that message to those of you in decisionmaking roles, those of you in control of the information that flows to the employees on the frontlines of your stores.

Steve Jobs, Apple’s iconic founder, has an interesting quote that I often repeat when working with dealership decisionmakers. He said: “You cannot mandate productivity; you can only create a conducive environment where people can excel.” Unfortunately, this often is not the case.

It seems like many dealers spend a ton of time on the “what” and not nearly enough time on the “how.”

These individuals use every meeting to hammer home the message that the dealership needs to sell more cars, conduct more customer follow-ups, and mine the customer database. Typically, the meetings end with them shouting, “Everyone needs more appointments for Saturday.” Unfortunately, that’s not going to get it done.

I speak to sales professionals daily.

Some are past clients while others are longtime friends from my days on the sales floor. All of them seem to be telling the same old stories. So, I’d like to announce a new rule for you decisionmakers out there: If you don’t train, then you can’t complain about how slow business is, how you can’t find and keep good salespeople, how everybody seems to be giving cars away, and how frustrated you are about management refusing to use the new system correctly.

Training isn’t just about drills or word-tracks; it’s about process, procedure, creating a great culture, improving teamwork and leading the way. If your store isn’t producing at its potential, ask yourself: What new skills have you, as a decisionmaker, given to your team to help them be more successful?

I’m not talking about daily training sessions that recycle techniques from 30 years ago, nor am I talking about buying some new technology product or service to improve business. I want you to encourage you to be progressive and understand the human factor. Let me explain: ■ Expand or Become Expendable: It is my opinion that tough de-

cisions will need to be made in the coming years, as the competition and flow of information increases and the attack on gross profit continues.

I mean, how can we possibly do the same things today that we did 30 years ago?

Not long ago, I was told by a dealer that I was the first person in 11 years to conduct training at his dealership.

Amazing, right? I mean, think about this: How much of that information you’ve learned about today’s customer or that new software solution actually trickles down to the sales team? An even better question is: How hard do you push to inject new ideas into the mix or encourage your people to take a fresh look at the way your store conducts business?

■ Say Hello to Gen Y: My guess is most of the people making up your sales team are in the dark about those customers who were born between 1981 and 1994. It’s unfortunate if

that’s the case, because that market is 75 million customers strong. This is a generation that is four times more likely to respond to text messages than voicemails, and currently accounts for 25 percent of all car buyers. Most experts believe that percentage will increase to 40 percent in the next 10 years.

Now, those stats only skim the surface as to what motivates this generation. One thing you can be certain about is word-tracks such as, “What would it take to earn your business?” and “If I could, would you?” aren’t going to work on this generation.

It’s time to move forward, folks.

It’s no longer about whether your team is good or bad; it’s about how we can get better. See, as the challenges become more sophisticated, so do the strategies needed to ensure continued success. The good news is, most problems can be attributed to a deficiency of knowledge, which can be corrected fairly quickly. And with the right long-term plan of action, it can be cured forever.

As a decisionmaker in a dealership, you control what information gets disseminated to the sales pros on the frontlines. So, I would ask that you make an effort to seek out a fresh perspective and treat your mind like an umbrella, which, as you know, works best when it’s open.

Cory Mosley is principal of Mosley Automotive Training, a company focused on new-school techniques, products and services. He also is the creator of the “Control Your Sales Destiny” seminar series. E-mail him at cory.mosley@ bobit.com.

34 F&I and Showroom June 2011

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6/2/11 4:09:50 PM

Mad Marv

Catching the Little Big Things The magazine’s from-the-trenches columnist provides advice on how to keep the little things from snowballing out of control. By Marv Eleazer

W

ay back in 1954, Kitty Kallen recorded a popular song titled, “Little Things Mean A Lot.” It was a lovely tune from a lady to her beau about how important the little things are in a relationship. Well, the lesson this song teaches can be applied in the F&I office, because it’s the little things that can really make a difference.

Take an F&I colleague of mine who consistently runs north of $1,100. He had just suffered through a rough month in which his production was basically cut in half. While backtracking to figure out what went wrong, he discovered that his downfall wasn’t the result of any major blunders on his part. No, what got him were the little things.

How many times have you made a presentation, discovered another party was going to be involved in the decision, then learned they were unavailable? Why is the customer even in your office, right? How could the sales department be so blind?

The Bible’s King Solomon once wrote, “There is no new thing under the sun.” Wise words, right? But how do they apply to us in the automotive retail industry?

For starters, have you ever noticed that, no matter how many conferences, workshops and seminars you’ve attended, the message never changes?

Yes, the delivery may vary, but not the message. That’s because there are certain steps in the finance process that must be followed to deliver the unit profitably and within the bounds of federal and state regulations. So, why should you ever attend another training session, right?

The answer is simple: There are times in every F&I manager’s career when we need to hear the message again. We’re creatures of habit, right?

Think about it: How is it that bad habits are just as easy to pick up as good ones?

In this business, the ability to recognize a bad habit and make a change often separates the successful from the not-so successful. But, as we all know, recognizing when change is needed is easier said than done.

That’s because we all have a tendency to stray a little here and a little there from what works, which is usually how bad habits begin to surface. And before you know it, you’re in a slump.

The best way to keep those bad habits at bay is to be active. It’s easy to surf the Web and make personal calls when things are slow, but it’s better to use that time to sharpen your skills. You may even want to see if there are any deals you can rehash with your sales manager. Maybe it’s time to visit the service drive to offer a pep talk about referring vehicle service contract (VSC) prospects. You may even want to dust off that cash menu and do a little fine tuning.

See, the biggest problem with not keeping yourself sharp is you tend to make mistakes when business picks up and you get swamped. Little mistakes, such as forgetting a signature, can be costly. You lose credibility with the customer when you have to reel them back in. Even worse, they may get second thoughts about that service contract they opted for.

Here are some suggestions to help keep you sharp during downtime: ■ Get out of your office and inves-

tigate what’s going on around you.

■ Offer to sit in on deals at the desk and take turnovers.

■ Forecast your goals.

■ Constantly check what you expect of yourself.

■ Become an ally, rather than an adversary, to the sales department.

■ Study and become familiar with your local market dynamics.

■ Sign up with new lenders that can compete with the local credit unions and banks.

■ Make sure your service writers are referring VSC prospects and that you’re spiffing them for doing so.

■ Develop a menu option for VSC offerings that work well with cash customers.

■ Get involved with online forums where like-minded F&I staffers swap sales ideas.

■ Keep your office organized.

■ Always be mentally prepared to deal with the next customer.

■ Learn how to leave your personal issues at home.

I know what you’re thinking: There’s nothing new here. Well, that’s the point. You have heard it all before, but maybe it’s time you pick up these simple habits again. I can almost guarantee you’ll see amazing results.

Listen, there is only one person you can truly affect, and that’s you.

The little things can have a huge impact on your daily success, so make sure you’re paying attention to those small details. The big problems will take of themselves.

Marv Eleazer is the finance manager at Langdale Ford in Valdosta, Ga. E-mail him at marv.eleazer@bobit.com.

June 2011 F&I and Showroom 35

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Legal

Social Policymaking Is Not the Solution Can the FTC balance what consumer advocates want and what industry reps say is needed? The magazine’s legal wiz says that time will tell. By Michael A. Benoit

L

ast month, my colleague, Thomas Hudson, provided his take on the first in a series of roundtable discussions hosted by the Federal Trade Commission (FTC).

This month I’d like to offer my take on what happened inside the Wayne State University Law School in Detroit. I felt it was a worthwhile exercise, but there was an interesting theme that emerged that day.

To get everyone caught up, the FTC is on a mission to learn all it can about the auto sales and finance business so it can appropriately exercise its newly minted authority — courtesy of the Dodd-Frank Wall Street and Consumer Protection Act of 2010 — to regulate dealers.

The discussions were spirited and the industry responded well to most of the allegations of abuse levied by consumer advocates. Most of the transgressions they pointed to are already prohibited by state and federal laws. As Tom wrote last month, “If you eliminated the discussion about things everyone agreed were illegal, the entire program would have taken about 15 minutes.”

The point the industry tried to make was that enforcement of existing law, rather than the creation of more regulations, will do more to help stop alleged abuses. Neither the dealer community nor finance sources have any incentive to prop up or protect the abusers, and I suspect both communities would support the enforcement of the myriad laws already available to stop them.

But while industry reps were focused primarily on market forces and using economics as a means of

incentivizing behavior, consumer advocates seemed bent on utilizing social policymaking to do the thinking for consumers. Unfortunately, these are two very different philosophical approaches that cannot be easily reconciled.

The government engages in social policymaking all the time. For example, the Equal Credit Opportunity Act makes it illegal to discriminate against a protected class in a credit transaction. But that doesn’t mean you can’t charge members of a protected class more for credit if there is a legitimate business reason to do so. You just can’t base a decision on class status.

Remember, every American is part of at least two protected classes: race and gender. So, while it would be illegal for me to create underwriting standards that treated men more adversely than women, it would not be illegal for me to charge a man with a 550 FICO score more for credit than a woman with a 750 score. And while it would be illegal to have one price for men with a 550 score and a better price for similarly situated women, it is not illegal per se to charge credit-challenged consumers more for credit. Last I checked, having a poor credit score did not make one part of a protected class.

My view is that people will pay for credit exactly what it is worth to them, just like we do with plane tickets. I recently flew from Washington, D.C., to Texas. The best fare I could get, given my time constraints, was $1,600. Now, the woman sitting next to me paid a little more than $200 for her ticket. She made a determina-

tion that the ticket was worth $200 to her; I made a determination that the ticket was worth eight times that to me. Did the airline make a lot more money off of my ticket? You bet. Do I feel discriminated against?

Not one iota.

See, no one held a gun to my head and said I had to buy that ticket. Yes, I would have liked to pay less, but that doesn’t mean I want my government fixing the price of plane tickets and dictating to airline shareholders how much the value of their shares are permitted to grow. That’s a recipe for economic ruin.

The same goes for credit. At the end of the day, no one pays more for credit than it is worth to them, and the market determines what that cost is. If asked, I expect most consumers would agree they have a responsibility to understand the legal obligations they submit themselves to. I also think that consumers are perfectly capable of learning, given the proper tools. So, if we want to tinker with social engineering, how about we consider incentivizing consumer education and personal responsibility? I think that is far better for society in the long term than deputizing our government to protect us from ourselves.

Michael Benoit is a partner in the Washington, D.C., office of Hudson Cook LLP. He is a frequent speaker and writer on a variety of consumer credit topics.

He can be reached at michael.benoit@ bobit.com. Nothing in this article is legal advice and should not be taken as such. Please address all legal questions to your counsel.

36 F&I and Showroom June 2011

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6/3/11 5:55:11 PM

FIC05-61summit_3pp.ind

September 26-28, 2011 Las Vegas Hilton

www.IndustrySummit.com

Register Today and Reserve Your Spot!

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September 26-28, 2011 Las Vegas Hilton

www.IndustrySummit.com

Executive Leadership Program Day

Keynote Speakers

Monday, September 26, 2011

10:00AM – 4:00PM

Monday, September 26, 2011

8:00AM – 4:00PM

AFIP Certification Program

5:10PM – 6:00PM

Control Your Sales Destiny

This program was designed to provide the regulatory and legal knowledge F&I professionals need to excel and a strong foundation for industryspecific ethical practices.

Additional charge applies

Opening Keynote: No Shortcuts: Building a Sustainable Auto Franchise

Leading sales trainer Cory Mosley’s new seminar series was designed to maximize front-line profits by leveraging new-school training principles.

Additional charge applies

Capital One Auto Finance’s Kevin Borgmann will share his analysis of industry trends and his vision for a successful franchise in the new economy.

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12:30PM – 4:30PM

Use your smartphone’s code reader to scan the code above. You’ll be led directly to the Industry Summit site and all the latest updates!

Buy Here, Pay Here for Franchised Dealers

Tuesday, September 27, 2011

Peritus Portfolio Services’ Rod Heasley will tackle the processes, pitfalls and profit potential of adding a BHPH operation to a new-car dealership in this comprehensive, two-part course.

Additional charge applies

Keynote Address: The Future of Dealer-Assisted Financing

2:05PM – 3:00PM

NADA’s 2011 chairman, Stephen Wade, will outline the association’s efforts on behalf of dealers and provide an up-to-date report on the state of the industry.

Register now at IndustrySummit.com o FI0611legal.indd FIC05-61summit_3pp.indd 38 2-3

6/3/11 5:55:13 PM

F&I Conference and Expo Now entering its eighth year, the F&I Conference and Expo is the must-attend event for dealers, sales and finance managers, trainers, agents and

finance executives. Targeted training sessions will cover all aspects of auto retail and finance, including management, lender relations, deal structuring, marketing, Internet and social media strategies, lead generation and much more! This

year’s event starts with a keynote address on Monday, September 26 at 5:10pm, followed by an evening reception and two full days of workshops, panel discussions, and a full exhibit hall — plus plenty of opportunities for networking!

Special Finance Conference Kicking off on Monday, September 26 at 4:30pm, the 2011 Special Finance Conference, brought to you by Special Finance Insider, offers a separate agenda focused on

providing an unrivaled subprime auto finance education. From basic operations to advanced deal structuring, benchmarking and more, Greg Goebel — along with experts from top

finance companies and suppliers — will outline a plan to leverage changes occurring in the subprime market! Visit www.IndustrySummit. com today to register or for more information, including the agenda, list of speakers and more!

Meet the F&I Conference Advisory Board!

This team of experts put their heads together to build an agenda designed to help front-end staff maximize profits in every aspect of their dealership operations!

Advisory Board Chair Gregory Arroyo F&I and Showroom

Marv Eleazer Langdale Ford and F&I and Showroom

Steve Veldkamp Great Lakes Companies

George Angus Team One Research and Training

Jim Maxim Jr. MaximTrak Technologies

Tom Wilson Riverside Auto Group/ Northern Motor Co.

Bob Corbin Innovative Aftermarket Systems (IAS)

Cory Mosley Mosley Training LLC

Ricky Wolfe Interstate National

Patrick DeMarco Ristken Software Services

Kelly Price National Automotive Experts (NAE)

David Duncan Safe-Guard Products International

Ronald J. Reahard Reahard & Associates Inc.

m or call 800-576-8788 today!

FI0611legal.indd 39

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by Augus 26 to tak t advantag e our early e of -b discount!ird

6/3/11 5:55:15 5:51:10 PM

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Bottomliners ACC to Aid Dealers in Filing Oil Spill Prevention Plan IAS and DataDot Partner to Provide Anti-Theft System F&I AFTERMARKET PROGRAMS

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provider IAS has added DataDot Dealer Services’ “microdot” system to its anti-theft product portfolio.

Each microdot is the size of a grain of sand and is laser etched with a unique microscopic identification code registered to a secure database and a network of insurance companies and law enforcement agencies, according to the company. For more information, visit www.datadotdna.com.

Finance Express to Release iPhone, Android Apps FINANCE EXPRESS, A PROVIDER OF

Web-based financial services for independent dealerships, has introduced iPhone and Android mobile applications. The apps were designed to allow dealers to scan VINs, evaluate vehicles, review vehicle history reports, create auction run lists and add vehicles to their inventory, according to the company.

For more information, visit www. financeexpress.com/mobile.asp.

AUTOMOTIVE COMPLIANCE

Consultants is working to assist dealers in certifying their EPA-mandated Spill, Prevention, Control, and Countermeasure (SPCC) plans before the new regulation takes effect in November. Dealerships located near navigable waters or adjoining shorelines with individual, aggregate aboveground oil storage capacity greater than 1,320 gallons or buried storage capacity greater than 42,000 gallons are affected by the rule.

For more information, visit www.compliantnow.com.

Polk Launches Loyalty Analytics Tool POLK HAS LAUNCHED THE WEB-BASED

Loyalty Analytics Tool, which provides information on U.S. lightvehicle transactions in the last decade. The solution offers data on vehicle characteristics, including manufacturer, make, model and segment information; demographic information, such as age, gender, income or ethnicity; and standard geography, including national, state, designated market area and ZIP code. For more information, visit www.polk.com.

Product Feature BMW Captive Offers New Facebook Content BMW GROUP FINANCIAL

Services now offers specialized content on the Facebook fan pages of BMW Financial Services and MINI Financial Services. The BMW USA Facebook page, www.facebook.com/BMWUSA, has a dedicated BMW Financial Services tab, which directs consumers to information on financing and products.

The MINI Financial Services Facebook page, www.facebook.com/MINIUSA, offers the “World of MINI” tab, which directs visitors to the MINI “Protection” viral video, the MINI Financial Services Mobile Website, and the “Liquid Assets” game, which can be downloaded directly through a link to the iTunes App Store.

40 F&I and Showroom June 2011

FI0511cudl.indd 1 FI0611bottom.indd 40

4/12/11 5:10:16 PM 6/2/11 4:14:39 PM

Ad Index Company

Phone

Web

Association of Finance & Insurance Professionals (AFIP)

817-428-2434

afip.com

31

American Financial & Automotive Services

800-967-3633

afasinc.com

C4

AUL Corp.

800-826-3207

aulcorp.com

15

CARLAW Auto Dealer Suite

877-464-8326

counselorlibrary.com

41

Chem Etch Manufacturing Inc.

877-564-2565

chemetchmfg.com

42

800-345-0191, ext. 720

cnanational.com

C2-1

215-512-5596

continentalwarrantyltd.com

42

877-744-2835, ext. 2334

cudl.com

40 17

CNA National Continental Warranty Inc. CUDL

Page

DealerLink

800-890-8850

dealerlink.us

Friendly Finance Corp.

800-872-2877

friendlyfinancecorp.com

27

Industry Summit

800-576-8788

industrysummit.com

37-39

800-346-6469, ext. 8989

smartdealerproducts.com

3, 43 42

Innovative Aftermarket Systems (IAS) JM&A Group

800-553-7146

jmagroup.com

NAC (National Auto Care Corp.)

800-548-1875

nacsolution.com

7

National Automotive Experts

800-810-8859

nationalautomotiveexperts.com

9

800-331-3780, ext. 7386

orias.com

29

Protective

Old Republic Insured Automotive Services Inc.

800-794-5491

protectiveassetprotection.com

11

Reahard & Associates Inc.

866-REAHARD

go-reahard.com

5

Resource Automotive

800-527-3448

resourceautomotive.com

22-23

United Car Care

800-571-6412

unitedcarcare.com

25, 42

United Development Systems Inc. (UDS)

800-282-1154

udsealerservices.com

21

Warrantech

800-833-8801

wtcookie.com

C3

Wise F&I

800-849-1080

wisefandi.com

29

Zurich

877-368-7513

zurichna.com/fis

13

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June 2011 F&I and Showroom 41

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6/3/11 3:51:26 PM

Products

42 F&I and Showroom June 2011

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6/3/11 3:51:32 PM

Industry Trends

Style Trumps Utility in Accessory Sales A new report shows that consumers are favoring stylish accessories over utilitarian add-ons, with upgraded exteriors, upholstery and electronics leading the way.

W

ith the economy on the rebound, the accessories market seems to be following suit with steady progress in the first quarter of this year. A new trend report reveals that many of the top-selling items boast a walletfriendly price point, indicating that car shoppers are ready to buy accessories if the price is right.

San Francisco’s AddOnAuto (AOA), an accessories sales solution offered by izmocars, surveyed 140 dealerships across the United States to compare accessory sales in the first quarter of this year. The survey found that factory exterior, upholstery and electronics led all categories in volume, revenue and profit.

With accessory sales at dealerships reaching $9.6 million for the first quarter of this year, AOA says auto dealers have already sold half their total accessory sales for 2010 ($20 million). Average gross profit

and net profit margins on accessory sales have remained fairly consistent with last year, rising from 45 to 46.4 percent and from 28 to 32 percent, respectively.

The top-ranked add-ons in the parts category by sales volume were splash guards, cargo trays and remote starts, all of which feature relatively low price points. Consumers also tend to gravitate heavily to electronic add-ons, helping the category to secure the No. 1 spot in overall dealer profits for the first quarter.

Remote starts led all electronics by volume, revenue and profit, and proved to be increasingly popular at dealerships in regions with colder climates. Security systems also placed high on the electronics list, landing in the No. 2 spot for profit. The category also captured notable rankings under volume and revenue. Keyless entry was another top seller in electronics by volume.

The report also showed that climate greatly influences which products sell best in certain locations. Considering that remote starts topped electronics sales, it’s no surprise that electronics were the volume leaders in the colder Mid-Atlantic and Midwest regions.

In the South, window tint led the pack but didn’t land in the top five for any of the other areas. Factory exterior and body side moldings were consistently popular sellers across every region surveyed.

As for the most accessory-friendly brands, the study found that Toyota and Honda lead all OEMs in revenue and profit per sale. Fellow import brands Acura, Lexus and Scion rounded out the top five, removing Ford from its 2010 rank as one of the best-dressed makes. Surprisingly, trucks were not among the five most accessorized models, which could be attributed to inconsistent gas prices around the country.

Top 10 Electronics, Q1 2011

Top 10 Accessories Categories, Q1 2011 RANK

BY VOLUME

BY REVENUE

BY PROFIT

RANK

BY VOLUME

BY REVENUE

1

Factory exterior

Upholstery

Electronics

BY PROFIT

1

Remote start

Upholstery

Electronics

Back-up sensor

Bluetooth

Security system

2

Window tint

Wheels

Step bars

2

3

Floor mats

Step bars

Upholstery

3

Audiovox remote start

Security system

Bluetooth

4

Factory interior

Electronics

Wheels

4

Security system

Back-up sensor

Wheels

5

Keyless entry

Back-up camera

6

Keyless entry

Factory exterior

7

Remote start and alarm system

Parking assist sensors

Paint protection

8

Remote start with light

Vehicle intrusion program

Viper 5101

9

Universal back-up camera

Fog lights

Video

10

Pursuit keyless entry remote start

Audiovox remote start

Rearview mirror with camera

5

Roof racks / cargo carriers

6

Dealer packages

7

Body side moldings

Body side moldings Factory exterior Navigation

Paint protection

8

Electronics

Video

Dealer packages

9

Step bars

Paint protection

Video

10

Spoilers

Window tint

Navigation

44 F&I and Showroom June 2011

FI0611trends.indd 44

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