Sep oct nov dec 2016 by Christy Haynes

DEALER NEWS

O F F I C I A L P U B L I C AT I O N O F N I A DA N E VA DA D E C E M B E R 2 0 16

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INSIDE

05............................................................... Planning for 2017 06.................................................. Phone Ups that Show Up 08...............................................NIADA Government Report 10.................................. CRM Technology vs. CRM Mindset 12..............................................Bank More on the Back End 14....................................................... Compliance Overdrive

WHAT’S NEW NIADA.tv

NEW CPO CHANNEL AND USED CAR WEEK

NIADA.tv just introduced a new channel devoted to CPOrelated programming, including marketing strategies and value perception of CPO. In addition, the site now offers 19 education and training sessions from the recent Used Car Week Conferences. Check out NIADA.tv for these videos and much more!

ADVERTISER’S INDEX

ADESA.................................................................................. IBC AutoZone .................................................................................5 NIADA CPO .......................................................................... IFC Lobel Financial..........................................................................3 Manheim...........................................................................10, 11 NextGear Capital................................................................... 12 Spireon ..................................................................................13 VAuto ...................................................................... Back Cover

OFFICE

For information on how to become a member please contact Sally Leahy. sally@niada.com • 800-682-3837

NIADA HEADQUARTERS

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Nevada Dealer News is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of Nevada Dealer News or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES

Troy Graff • troy@niada.com EDITORS

Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com

MAGAZINE LAYOUT & GRAPHIC ARTIST

Christopher Hanley • chris@niada.com

SENIOR ART DIRECTOR / PRODUCTION MANAGER

Christy Haynes • christy@niada.com PRINTING

Nieman Printing

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Dealer News / December 2016

SALES MATTERS JOHN CHAPIN

SELLING IS CHANGING… NOT REALLY Facts That Remain the Same

This past week I’ve received three separate emails from various sales gurus talking about how much sales has changed. While the Internet, social media and advances in technology have altered some of the peripheral aspects of selling, the foundational principles and keys that lead to sales success have remained the same. FACT: SALES IS STILL A NUMBERS GAME Failure in sales is due to a lack of activity 99.9 percent of the time. In other words, not making enough calls. Now that we have the Internet, I know sales reps who spend hours looking up background information on prospects before they call them. That is a mistake. Look up the information a prospect would reasonably expect you to have, but don’t spend hours being perfect. Just look up some quick information and make the call. Another way technology can work against us is some people believe they have to be technical experts before they call anyone. An insurance agent I know spent a full six months in the office studying cyber liability because he had to know everything before he could speak to anyone. The insurance agent is a producer (salesperson) first, not an underwriter (technician). The reality is you will never know everything and this is usually just an excuse to avoid doing the hard work of making lots of calls. Just because you have the Internet to look up information doesn’t mean you should be spending hours “preparing” at the expense of making calls. Just get some basics and make the call. Learn what you need to learn so you don’t make any careless or “stupid” mistakes, but focus more on activity than on being technically proficient. FACT: YOU’RE STILL THE EXPERT While it’s true that today’s consumer is, generally speaking, better informed than in years past, you’re still the expert who has probably forgotten more than they will ever know. The famous author Malcolm Gladwell once said it takes roughly 10,000 hours of study to master one’s craft. While you might not be at the 10,000-hour mark yet, you are still far better off than someone who has spent five, 10 or even 40 hours on the Internet studying your industry and products. You live in your business every day – the prospect doesn’t. People still need an honest, straightforward salesperson who understands the subtleties and idiosyncrasies and can educate them on what’s best for them.

FACT: FACE-TO-FACE AND PHONE ARE STILL THE MOST EFFECTIVE WAYS TO SELL Have you ever not received an email someone swore they sent you? It just happened to me again two weeks ago. In addition to the fact you can’t always rely on email, LinkedIn in-mail, or other Internet communication, you also lose the most important parts of communication, such as voice tone and body language. Plus, electronic communication distances you and dehumanizes the experience. For those reasons, in-person communication is always the most effective, followed by Skype and other face-to-face apps, then by phone communication. Electronic communication serves its purpose – short-sweet, non-critical communication in which you are simply conveying information. What kills me is when I see salespeople using email for initial communication or during an important part of the selling process. In that case, they are simply hiding behind technology because they are afraid to make a call. Also keep in mind that even non-critical electronic communication has to be backed up with a phone call or in-person contact to ensure it was received. You have much more impact when people can see and/or hear you. Don’t hide behind technology and spam people on the initial and other important communications. FACT: IT IS STILL ALL ABOUT RELATIONSHIPS AND DOING WHAT’S BEST FOR THE OTHER PERSON There is no “new relationship selling” or “solution selling.” The best have always focused on the long-term relationship and the best possible solution for the prospect, even if it involved sending someone to the competition. The best have always been seen as a peer and business partner looking out for the best interests of the prospect. THE BOTTOM LINE: THE ONLY WAY SALES HAS CHANGED IS FOR THOSE DOING IT THE WRONG WAY Years ago you could pull the wool over someone’s eyes, get away with not knowing as much, have subpar sales and people skills, and not work as hard. That said, the people who have always done it right have found little has changed over the years. For them, being great at sales still requires you work hard and make the calls, communicate effectively, build the personal relationships, practice professionalism, be knowledgeable, put the other person first and embody the character traits of honesty and integrity. John Chapin is a sales and motivational speaker and trainer with more than 27 years of sales experience as a No. 1 sales rep. He is author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@ completeselling.com.

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MANAGEMENT MATTERS BY KENNY ATCHESON

PLANNING FOR 2017 Make Necessary Adjustments “If you always do what you’ve always done, you’ll always get what you’ve always got,” said Henry Ford. Albert Einstein said, “The definition of insanity is doing the same thing over again and expecting a different result.” Now is the time to plan what you will do differently next year to succeed. I’ve had conversations with dealers who spend from $5,000 to $120,000 per month in advertising. I have discovered that regardless of the budget, there are some people who are so afraid of change they choose to continue

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getting mediocre results in lieu of making any adjustments. The resistance to change is not budget specific, but it is success specific. In other words, most successful dealers are ready to make a change at a moment’s notice as long as there is evidence there is a need for it. An interviewer asked Lee Iacocca what order he used to make changes when saving Chrysler. Iacocca said, “Order? We did everything at the same time.” Iacocca made lots of changes at the same time. It’s a good practice when necessary. In his book, Power to Change, Jim Jackson explains how some people only make changes after a crisis. According to Jackson, “You are right where you have chosen to be.” If you sell 40 cars or 240 cars per month, you have chosen how many cars you are going to sell. You may “desire” to sell 15 percent more cars, but that requires the decision to make changes. I’m not saying you should chase every shiny object you hear about from media agencies, a Twenty Group meeting or an article. Invest in consultations with an expert who will give you the bold truth. Don’t approach someone at an ad agency and ask what they have for sale. Carl Sewell, author of Customers for Life and owner of Sewell Automotive with dealerships located throughout the country, wrote about how important consultants have been to him. He doesn’t always take their

advice, but at least he knows he is getting the opinion of an expert rather than a sales pitch for services. Another advantage to professional consultation before investing in new strategies and media is you get “outside eyes” diagnosing and analyzing your strategies and tactics. Outside eyes are typically free from bias. They are not emotionally tied to anything in particular. Let me explain what I mean by “emotionally tied.” I’ve consulted for dealers who have done something one way for up to 88 years. They are emotionally invested in a particular method. It is what got them where they are. It may be something that lifted them from poverty to riches. That creates an emotional attachment. It took an outside set of eyes, a different angle and explanation of a new strategy, to get them to realize it was time for some tweaks. Your existing strategy and plans may be good, and only require minor tweaks to be great. Find out. Kenny Atcheson is the president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy an Army to Battle for Your Business. Kenny teaches workshops, speaks at conventions and 20 Groups, and his company offers several marketing and advertising programs. His website is www.DealerProfitPros.com.

December 2016 / Dealer News

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SALES MATTERS

AUCTION NEWS

PHONE UPS THAT SHOW UP The Goal is Not Simply an Appointment

MANHEIM TRIPLES IMAGING OFFERING AVAILABILITY FOR CLIENTS Expansion in Response to

BY ALAN RAM

Every time I ask a group, whether it be dealers or salespeople, what the goal of a sales call is they tell me it’s to “set an appointment.” No, it’s not! Let me explain with two scenarios. Scenario A: You take a sales call. Everything goes great: You get a name, you get a number and, yes, the caller sets an appointment. You hear barking in the background, and you start talking to the caller about his dog. Now you’ve got some Golden Doodlerapport. Unfortunately, that appointment does not show up. Scenario B: Someone calls and you get her name and number. That’s no problem – you again use the highly effective technique that I call “asking them for it,” which works just about every time. This customer will not set up an appointment no matter how hard you try. She just won’t commit. But later on that evening, she comes in and buys. Which would you rather have? And that’s not a trick question. Clearly Scenario B, right? But she didn’t have an appointment. So what? The goal of a sales call is not to set an appointment but to have someone actually show up at your dealership. SHOW-UPS COUNT, NOT APPOINTMENTS. There’s a big difference between setting up appointments and having people arrive. I’ve had plenty of salespeople come up to me excited because they just used one of my word tracks on a customer on the phone and it worked great. My question is always, “Did the caller show up yet?” If not, nothing has worked “great” yet. Not until they show. Now, I’m not telling you not to set up appointments, so relax. Of course you want to set up appointments. But let’s face it, nobody comes into your dealership because you got their name and phone number. “Hey honey, that salesperson at Friendly Kia just got our phone number! Let’s get down there!” MESSAGING MATTERS By the same token, nobody comes into your dealership simply because you set up an appointment. They come in because of everything else you say. What reasons are you giving customers to come to your dealership, other than to see you? If you can’t answer that question, you need to figure it out. Most telephone training in the automotive industry is simple: 1. Get their name. 2. Get their phone number. 3. Smile, because a smile can be heard over the phone – that is true, by the way. 4. Then set up an appointment they probably won’t show up for. You need to step up your game. To get people to come to the dealership, you must give them solid reasons to show up. The next time someone asks you what your goal on a sales call is, I want you to say: “It’s to get someone to actually show up.” Alan Ram is president of Proactive Training Solutions.This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute. com) and is reprinted with permission.

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Dealer News / December 2016

Client Demand

In response to client demand, Manheim has nearly tripled the availability of Enhanced Vehicle Imaging, expanding from 25 to 74 auction locations throughout North America. EVI provides a consistent set of quality high-resolution images that showcase vehicles in an optimal way. Manheim said the service leads to a higher conversion rate for sellers and increased confidence about purchases for online buyers. “The Enhanced Vehicle Imaging service we use from Manheim Milwaukee has proven to be a big boost to our bottom line and has grown our online attendance,” Napleton Automotive Group remarketing manager Jeff Ricchio said. “And we love the positive feedback we get from buyers about the photos.” Manheim’s EVI produces photos superior to those traditionally available via the device used to take standard condition report photos. Using high-quality, state-of-the-art programmable cameras and software, certified photography staff members shoot the images after vehicles have been reconditioned. They display one car at a time and include a consistent set of views most important to buyers. High-resolution images, available in-lane and via Simulcast and OVE, enable viewers to pan the vehicle and zoom in and out to areas of interest on the vehicle. “Dealer interest in improving online sales and their success stories compelled us to broaden our EVI footprint and be an even better business partner,” Manheim senior vice president of inventory services Grace Huang said. The addition of Enhanced Vehicle Imaging helps consignors move vehicle inventory more efficiently, reaching up to 80 percent more online buyers with increased bids per sale, Manheim said. Manheim data also showed Simulcast listings with EVI images convert 16 percent better than two or three low-resolution photos, and 50 percent better than no photos. Dealers using EVI sell 27 percent more vehicles online than those who use two or three low-resolution images. EVI supports dealer efforts to sell less desirable, aged vehicles online – vehicles with expected low AutoGrade scores, high mileage or lower prices.

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The National Independent Automobile The National Independent Automobile Dealers Association’s recent acquisition of Leedom & Associatesrecent Dealer acquisition Twenty Dealers Association’s Groups will provide NIADA members 17 of Leedom & Associates Dealer Twenty different group optionsNIADA to joinmembers to help your Groups will provide 17 dealership improve profitability and identify different group options to join to help your opportunities for growth. Whether you dealership improve profitability and identify are an independent retail dealer, a BHPH opportunities for growth. Whether you dealer, a store manager, or if you operate are an independent retail dealer, a BHPH a franchise new car store, NIADA’s Dealer dealer, a store manager, or if you 20 Groups program has a group to fitoperate your a franchise new car store, NIADA’s Dealer needs and expectations. Whether you are 20 Groups has a togroup to fitlevel, your trying to takeprogram your business the next needs and expectations. Whetherfor you are train your staff or arrange financing your trying to take yourhelp! business to theDealer next level, dealership, we can The NIADA 20 Group dedicated to finding train yourprogram staff or isarrange financing for your the perfect group to fit your dealership size, dealership, we can help! The NIADA Dealer sales volume and overall operation.to finding 20 Group program is dedicated

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WASHINGTON UPDATE

NIADA GOVERNMENT REPORT

Latest Governmental Issues and Activity Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA senior vice president of legal and government affairs Shaun Petersen and NIADA lobbyist Sante Esposito of Key Advocates.

REGULATORY REPORT

By Shaun Petersen

FEDERAL TRADE COMMISSION A federal court judge approved the FTC’s $10 billion settlement agreement with Volkswagen over the company’s deliberate cheating on government emissions tests. The approval formally starts the process for owners of certain Volkswagen and Audi 2.0 liter diesel vehicles – including independent dealers with those vehicles in their inventory – to get compensation. In most cases, the owners of VW and Audi diesel cars fitted with the emissions defeat devices will receive between $12,500 and $44,000 each, depending on the model, year, mileage and trim of the car, as well as where the owner lives. A post on the FTC’s consumer blog, www.consumer.ftc.gov/blog/vwbuybacks-and-lease-terminationsbegin, provides additional background information on the settlement order, along with detailed instructions for affected owners about how and where to file a claim and the claim-processing timetable. It also tells consumers how and where they can pick up buyback checks and noting those funds do not have to be used to buy a new Volkswagen.

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Dealer News / December 2016

CONSUMER FINANCIAL PROTECTION BUREAU Supervisory highlights: The CFPB released its latest supervisory highlights report, which showed recent supervisory actions returned more than $11 million to more than 225,000 harmed consumers. The report outlined violations found in auto loan origination and servicing, including a claim that servicers refused to return personal belongings from a borrower’s repossessed car until the borrower paid a storage fee. If borrowers did not pay the fee in the allotted time, usually 30-45 days, depending on the state, the companies would dispose of the property instead of returning it to the borrower. The CFPB said it is an illegal and unfair practice to refuse to return a consumer’s personal property until a fee is paid. Service providers bulletin: The CFPB reissued its compliance bulletin on service providers, saying the amendment was needed to clarify that entities have flexibility, allowing for appropriate risk management of service providers. The new bulletin includes the same list of expectations for managing service provider relationships, such as verifying that service providers understand and are capable of complying with federal laws; requesting and reviewing service providers’ policies, procedures and training materials; and including in contracts clear expectations about compliance. The revised bulletin gives entities some flexibility and discretion when determining the level of oversight needed, based on the circumstances of the relationship and the particular activities of the service provider, as well as the potential for harm to consumers. Comments on payday lending rule: NIADA joined with NADA and the RV Dealers Association to submit comments to the CFPB regarding its proposed payday lending rule. Our comments raised concerns that the CFPB’s proposed rule needs greater clarity to ensure retail installment contracts for the purchase of personal property, such as automobiles, are not covered by the proposal. We also told the bureau the purchase money exemption must include all components of the transaction, including the purchase of voluntary protection products such as GAP, as well as negative equity.

LEGISLATIVE REPORT

By Sante Esposito

S.2663, REFORMING CFPB INDIRECT AUTO FINANCING GUIDANCE ACT Advocacy efforts heading into the lame duck session, which begins in midNovember, have been focused on urging Sens. Joe Donnelly (D-Ind.) and Heidi Heitkamp (D-N.D.) to cosponsor the bill, which rescinds the controversial auto

financing guidance action taken by the CFPB in March 2013 and provides for a more transparent and accountable process for addressing the issue of indirect auto lending. The effort is the result of a recent meeting with Sen. Richard Shelby (R-Ala.), chairman of the Senate Banking Committee, which has jurisdiction over the bill. In that meeting, Shelby committed to marking up the bill in committee during the lame duck session if two Democrats would cosponsor it. Donnelly is a small business advocate who was a featured speaker at NIADA’s 2016 National Leadership Conference and Legislative Summit. NIADA will also keep pushing its request for the Senate to convene a series of meetings with the CFPB and stakeholders to explore the possibility of an administrative solution to the issue. The CFPB’s guidance claimed dealer discretion on interest rates in indirect auto financing creates a “significant risk” of unintentional disparate impact discrimination. S.2609, MARKETPLACE AND INTERNET TAX FAIRNESS ACT This bill would allow states to charge sales tax on so-called “remote transactions,” such as Internet sales, but thanks to NIADA’s efforts it now specifically exempts vehicles, aircraft, vessels and business purchases – all cases in which states currently collect a use tax either when the vehicle is registered or because businesses pay their use tax. A summary of the text refers to the exemption as preventing “double taxation.” The Senate Judiciary Committee has received comments back from a wide range of stakeholders and is still deciding its legislative strategy. Rep. Bob Goodlatte (R-Va.), chairman of the House Judiciary Committee, and Rep. Anna Eshoo (D-Calif.) have developed a discussion draft bill on the remote sales tax issue. H.R. 6094, THE REGULATORY RELIEF FOR SMALL BUSINESSES, SCHOOLS, AND NONPROFITS ACT The bill, introduced on Sept. 21 by Rep. Tim Walberg (R-Mich.) with 76 cosponsors, would postpone the effective date of the Department of Labor’s rule revising income thresholds for determining overtime pay for executive, administrative, professional, outside sales and computer employees exempt from regular minimum wage and overtime pay requirements from Dec. 1 until June 1. The bill passed the House on Sept. 28 by a vote of 246-177. Seven Democrats, including National Leadership Conference speaker Rep. Henry Cuellar (D-Texas), voted in favor.

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MANAGEMENT MATTERS BY SCOTT BERGERON

CRM TECHNOLOGY VS. CRM MINDSET It's a Tool, Not a Crutch

Have you ever wondered how dealerships sold in volume before CRMs, before the Internet, before websites and Internet leads? I consider myself an old-school car guy who

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Dealer News / December 2016

knows how to use technology. I still believe there’s a place in this business for pen, paper and all the high-tech programs that make our lives easier. I started my career in the ‘80s and was lucky enough to work for a top 100 nationally-ranked dealership. We sold 500 vehicles, both new and used, per month. We did it directing our focus on advertising, ordering correctly, training, and a CRM mindset. In other words, we wanted all the information and we collected as much as we could. It wasn’t efficient compared to the tools we have now, but it worked because everyone was on the same playing field. Technology today works like a champ, when

it’s used as a tool and not a crutch. There are more ways than ever for potential customers to connect with a dealership. Online shopping is, by all estimations, the starting line for over 80 percent of all transactions. In the dealership, the CRM software is used to track, assess, notify and persuade consumers. It also lets you track the steps of the sale as well as who’s performing on your sales floor, and who needs help. We’ve all heard the phrase “garbage in, garbage out.” Technology is only as good as the information that goes in, and the process to get the information back out to reconnect with is where most dealerships lose deals. I’ve been in dealerships where their CRM reported a 100 percent closing ratio. They must have some pretty great salespeople, or they’re only entering their sales into their CRM, and forgetting about the other 80 percent of unsold prospects. And even if the leads automatically populate into the CRM, it doesn’t do any good unless someone is following up. CRM technology is limited without a common sense process within the dealership to make sure everyone gets touched, whether they’re Internet leads or face-to-face prospects. One thousand online leads and 300 visits in a month should show as 1,300 prospects, less the conversions to sales, which likely won’t show a 100 percent closing ratio. I’ll take bad news that’s accurate any day over grossly inflated closing ratios. An article on Adexchanger.com elaborates on the importance of dealership CRM as an all-encompassing relationship tool, not just technology, concept. Headlined “CRM: A Philosophy That Goes Beyond Data, Technology and Channel,” the article by digital specialist Mayur Gupta notes, “CRM software is not enough… Establishing a lifelong customer relationship and loyalty is not just a technology problem. Marketers need to bring the strategy, data and technology together to establish and operationalize a CRM capability. To do this, they must establish a customer relationship and experience strategy.” In the dealership, it’s as simple as asking, “What’s happening to my customers? Is my CRM helping me make more deals, or is our process breaking down?” So how does a dealer combine technology with a selling mindset that provides customers your undivided attention and connection before they say yes?

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How much tech is too much tech? How do you feel when someone is talking to you, but texting? How would you feel in a selling environment if your salesperson was entering data into their phone while they were showing you a vehicle? Probably not very good. But it’s reality in many dealerships that have invested fortunes in high tech, thinking it will “revolutionize their sales process.” Most customers aren’t buying it. No matter what a salesperson is doing on their phone, a vast majority of customers think they’re being ignored. In my opinion, when a salesperson is in front of a customer, their eyes need to be up and directed toward their customer. Look down at your phone and you’re likely to lose a deal. So the challenge really is how much technology do we need, and when is it best to use good old-fashioned rapport building and eyeball-to-eyeball selling? Old school or new school – It’s all good, if it’s done right. Once the sales force has learned (or relearned) the more traditional side of relationship-building and management, it’s time to show how mindset and technology together can forge a highly successful sales program. Technology can be a catalyst to help build traditional relationships to reach more people in more ways. When done right, it results in more deals. Used properly, tools such as Internet Lead Modules and CRMs can prime the pump efficiently. Using prospect and customer information, a smart CRM can store critical information about a prospect’s wants and needs, as well as timeline and budget. Technology does the heavy lifting, while customer engagement closes the deal. High Tech & High Touch High tech allows your sales team to be efficient. High touch, or client engagement, is what’s required to be effective. In other words, it doesn’t matter how efficient I am at auto responding to prospects if they don’t show up and buy. Most of us still want to do business with people we like, respect and trust – and that requires one-on-one interaction. For the best and most effective results, brainstorm about how best to use/blend the two – high tech and high touch. Then, test it in your next sales training session. Here’s one scenario using email as the springboard: Do what the others don’t. Instead of

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canned auto-responders for inbound leads, try a catchy, clever and, most importantly, personalized email that will spur a visit or at least put you higher up on the radar than the other guys. Try a subject line like, “Scott, I’ve been waiting for you to email me!” Most prospects shop online because they fear entering a dealership. They don’t want some pushy salesman. But, knowing you were low-key and fun to work with could help start a dialogue. Today’s customers don’t want the old sales gimmicks, but they also don’t want to be ignored, or feel like they’re going through a line at Walmart to buy

a car. This is a huge buying decision. They deserve your attention, your personality and the best experience you can provide. Remember, they can go anywhere in the world to buy their vehicle. Give them every reason to buy from you. Ultimately, it’s CRM technology and a selling mindset together that make customer relationship management work effectively in today’s auto sales world. Former dealer executive Scott Bergeron is the founder and principal at Daily Gameplan. com - a sales team performance company. Scott can be reached at 303.918.3169 or scott@dailygameplan.com.

December 2016 / Dealer News

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AUCTION NEWS

BY AUTO REMARKETING

ADESA LAS VEGAS HONORED Among Best Auto Auctions to Work For

Following a study conducted by the Best Companies Group, Auto Remarketing has announced the honorees in the inaugural Best Auto Auctions to Work For. ADESA Las Vegas was among those honored. At ADESA Las Vegas, general manager Brenda Aden said it’s “excellent teamwork and communication, along with a dedication to regular employee recognition and

development” that makes the Nevada auction stand out as a great place to work. Teamwork, in fact, is her No. 1 priority in managing her staff. “We take a personal interest in our team and communicate with them to encourage them to meet their goals,” she said when asked how she aims to boost morale as a manager. Having a positive environment in the workplace can be critical, she said. “Anytime you have employees who enjoy coming to work, it’s apparent to our customers. Our employees really put forth extra effort to ensure customer service is at its best,” Aden said. “This, in return, provides a comfort level for our customers who then enjoy working with us.”

ACCELERATE

BY GWC WARRANTY

BANK MORE ON THE BACK END The Ultimate Customer Satisfaction Experience

So much of what you do on a day-to-day basis is to preserve your front-end gross. You act with discipline when acquiring inventory, you carefully manage reconditioning costs, you price your cars based on demand and market and you work to sell them in a timely fashion. But what are you doing to make more profit on the back end of your deals? Statistics show very few dealers offer service contracts on every sale. But why? Beyond the fact you can better protect your customers after the sale, there are countless benefits that put more profit in your pockets. Think about the extra commas in your bottom line if you apply the same effort to your back-end profits as you do to protecting your front-end gross. Nice mental image, isn’t it? It starts with having a process: Think 300 percent. That means you offer 100 percent of your service contract menu to 100 percent of your customers 100 percent of the time. That doesn’t mean you’ll end up getting every single customer to purchase a service contract. But if you can bump your penetration from 25 percent to 50 percent, you’ve just doubled your profits from the back end of deals. Not to mention the more service contracts you sell, the more you stand to get back in return. You get out what you put in: A portion of every service contract you sell is set aside in the event a claim is paid on that particular vehicle. Check with your service contract provider to see what portion of that reserve, if any, you can get back when the contract expires.

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Dealer News / December 2016

GWC Warranty dealers who qualify for our Elite Dealer Program begin earning a portion of those reserves back when they reach certain service contract volume milestones. Create enough service contract volume and WealthBuilder dealers can qualify for up to 100 percent of their underwriting profits. Service contract volume isn’t the only driver of that profit center. Selling quality vehicles and focusing on reconditioning will help keep reserve accounts full, as fewer claims are paid from them. Up your game with upsells: When it comes to immediate profits, upsells to richer coverage levels with longer terms will help build up reserve account balances. If you’ve followed the first two steps of this process and you work in upsell opportunities, you’ll be offering better contracts more often, making more underwriting profits available and, perhaps most important, improving post-sale satisfaction, setting you up for long-term profitable benefits as well. Repeat, refer, rejoice: Where you stand to benefit the most from a standardized back-end profit approach is when it comes back to you on the front end. How does that work? Imagine the customer you protected for a longer term with richer component coverage. Now think about how he’ll feel when two, three, four or even five years down the road, the service contract you sold is still saving him money on unexpected repairs. It’s the ultimate customer satisfaction experience, and one customers will tell family and friends about. So when their cousin, friend or colleague needs a quality vehicle, where will they go? You guessed it – they’re coming to you. And when they’re in the market for another vehicle, you can be sure they’ll start their search where their last one ended – on your doorstep.

www.niada.com

11/18/16 12:33 PM

SAFETY WATCH

PRODUCTS & SERVICES

DMS FOR INDEPENDENT AND BHPH DEALERS GOES LIVE

Web-Based Solution Tailored for Independent Dealers

After more than a year of dedicated development and collaboration with dealers, DealerSocket officially released iDMS at the company’s User Summit, Oct. 3-5, in San Antonio, Texas. iDMS marks the first of several upcoming product launches for DealerSocket’s full-scale, integrated technology platform tailored to independent dealers. “Our independent platform’s seamless integrations will provide tremendous flexibility for each product suite, including iDMS,” vice president of product strategy Jennifer Lee said. “Once all our independent products have launched on the platform, users will be able to access tools based on their job role, rather than by product line.” iDMS is a highly integrated solution including flexible accounting, powerful desking, an integrated lender portal, integrated service shop management, unsurpassed workflow and queuing processes, and robust reporting analytics, the company said.

www.niada.com

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“One of the most useful benefits of iDMS is its scalability for all sizes of success,” director of product and engineering Jeff McCurry said. “This platform can help small to midsized dealerships get to the next level, as well as allowing larger stores to reach maximum efficiency in their operations. iDMS will scale as your dealership grows, so you will not be faced with future software decisions.” The new solution merges the features of FEX DMS and AutoStar Solutions – along with adding some original features. Features include: • 100 percent web-based, cross-browser, crossplatform functionality, with a special focus on mobile devices so dealers can access iDMS in the F&I office, on the dealership lot, or while running errands. • Buy Here-Pay Here decisioning and integrated lender portal, so dealers can finance a deal without leaving the platform. • Real-time accounting integration with QuickBooks, as well as flexible general ledger account creation and mapping, which gives dealers granular control of GL transaction accounting. • Comprehensive desking solution for both Buy Here-Pay Here and independent retail dealers. • Robust collections, such as stacked promiseto-pay and dynamic queuing functionality. • Multitasking capabilities through an extra communication module at the bottom of each screen.

FORD RECALLS HATCHBACKS May Accidentally Unlatch

Ford Motor Co. is recalling 64,038 model year 2013-17 Ford Focus hatchback vehicles manufactured Feb. 14, 2012 to Aug. 26, 2016, and equipped with a manual transmission. The hatchback of the affected vehicles may be unlatched with a single press of the interior latch release button. As such, the vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 206, “Door Locks and Door Retention Components.” With only a single press needed, the driver may accidentally unlatch the hatchback, increasing the risk of injury to any unsecured passengers in the back. Ford will notify owners, and dealers will reprogram the Body Control Module with updated software, free of charge. Ford’s number for this recall is 16C13.

December 2016 / Dealer News

13 11/18/16 12:33 PM

COMPLIANCE OVERDRIVE BY CHIP ZYVOLOSKI

AVOID THE “ONE SIZE FITS ALL” RETAIL SALES CONTRACT MINDSET Address Your Specific Terms Avoid compliance violations and potential fines by setting aside time to review your retail sales contracts. Wait, aren’t all forms “one size fits all?” Your credit documents need to address the specific terms of credit you offer – matched with state and federal disclosures and provisions. Mismatching your credit terms and contract provisions could cost you thousands of dollars in fines, damages and legal fees as well as harm your business reputation. Here are a few features you should review to make sure your retail sales contracts match the credit terms you offer. Type of Property Sold Motorcycles, autocycles, off-road vehicles, RV’s and other motorized vehicles may not be “motor vehicles” under your state’s retail sales laws. Required contract and disclosure terms can vary depending on whether you are selling a “motor vehicle” as defined in your state’s retail sales laws. With the variety of motorized vehicle types available, make sure the contract you are using is designed for the type of personal property you sell. The same is true of your license to sell motor vehicles. Make sure your dealer’s license covers the property you sell. Cash Down Payments Usually, the cash down payment is received at closing, but dealers sometimes allow buyers to make one or more down payments after closing. Under the Truthin-Lending Act and Regulation Z of the act, these “deferred down payments” or “pickup payments” must be made no later than the due date of the second regularly scheduled payment. They also cannot be subject to a finance charge. It’s helpful to have a contract provision with buyer’s promise to make deferred down payments. It must also be a line item in the Itemization of Amount Financed, which treats it as a credit even though it hasn’t been received yet. Although it’s not required, dealers should include the date and amount of a deferred down payment in the Fed Box Payment Schedule. If you allow deferred down payments, be sure your contracts support them or are flexible enough to handle them. Note: some states do not allow deferred down payments or require them to be paid sooner than under Reg. Z.

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Dealer News / December 2016

Negative Equity Trade-Ins Under Reg. Z, a down payment in the itemization can never be less than zero. As a result, negative equity trade-ins require special handling. Reg. Z allows two methods of calculating the down payment. One way is to net all the cash and other credits against the negative equity in the trade-in (“netting”). Another way is to add all credits but not subtract any negative equity in the trade-in (“nonnetting”). The method used will affect the calculated down payment and the amount of a separate line financing the balance owed on the negative equity trade-in. You may not have much choice in selecting a contract with your preferred netting or non-netting method, but it’s important to understand which method your contract uses so you can explain it to buyers. Equal Installments. Balloon Payments. Equal monthly payments are a common payment frequency. Changing to more or less frequent equal payments can sometimes require changes to contract terminology and disclosures. Be sure to review your documentation and completion tools carefully if you require equal periodic payments other than monthly. Balloon payments are generally structured as a final payment that is more than twice as large as the average periodic payment. A balloon payment schedule can lower periodic payments, but the buyer might have problems paying the balloon. Dealers and lenders sometimes provide options for buyers who can’t pay the balloon amount. Those options may be included in the contract, especially if they are required by law. For example, one option is to allow a buyer to pay the balloon amount plus interest in installments, usually in an amount no greater than the prior installments. States sometimes require additional disclosures to warn the consumer of the final payment amount. Be sure to review your documentation if you offer balloon payment features. Arbitration Not all contracts include an arbitration provision. You should review your contract to confirm it has one if you want it. The CFPB has proposed a regulation that would preserve the buyer’s ability to join a class action lawsuit even if the dealer/ creditor has a contract right to require arbitration. If the CFPB’s proposal becomes final, you will want to review your decision to include an arbitration provision and either update or remove it. Conditional Delivery – Spot Delivery Is your retail sales contract conditioned on your ability to sell the completed contract to an assignee? If so, your retail sales contract should include a provision telling the buyer about it. If you do conditional deliveries, it can be risky to use a retail contract that doesn’t include a spot delivery provision

or specifically cross-reference a separate spot delivery agreement. In that case, someone reading the retail contract alone will not know it’s subject to another agreement. (The same concept also applies to arbitration provisions.) If spot delivery is an important element of your credit programs, make sure your contract addresses it in some way. Note: some states do not allow conditional delivery provisions. Fees and Charges Your retail sales contract probably has blank lines in the itemization and in other places. That does not mean you can put anything you want in the blank lines, especially fees. In many states, only specific fees with specific names are allowed. You should review your retail contracts to determine if they have any required disclosures or contract provisions for the specific fees you charge. What if there isn’t a contract provision or disclosure for your fee and it only appears on a blank line in the itemization? That may be okay for some fees in some states. The point is that you should research your state to determine what fee information is required and to confirm your retail contract has it. Like the seasons, your credit programs and terms can change over time. Now is a good time to review your credit documentation to make sure it is up to date. Chip Zyvoloski is a senior attorney for Indirect Lending at Wolters Kluwer. For more information, please visit www. wolterskluwerfs.com/indirect.

www.niada.com

11/18/16 12:33 PM

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WE DON’T DO BALLPARKS The vAuto way is simple: Every used car decision is made with data-driven precision. This year, the 7,500+ Provision® dealers who rely on our industry-leading insights and exclusive Live Market View will continue to soar above the national averages in inventory turns and profitability. Thriving despite ever-thinner margins and more cars on the market. Starting with your pricing, you’ll see how precision pulls shoppers into your inventory, moves it faster and makes more total gross. You’ll see how precision results in better decisions, less guesswork and fewer aged cars. And you’ll see why Provision has proven time and again to be the only way the best dealers want to work.

vAuto.com/noballparks | 888-362-5783

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AUTO AUCTION DISCOUNT PACKAGES The calendar year auction directory listing packages below include the following exposures:

· L istings printed monthly in the printed version of Used Car Dealer Magazine (distributed to all NIADA dealer members and all NAAA members nationwide)

NATIONAL ONLINE

AUCTIONVCOMMERCE.COM

Contact: Kelly Bianchi

P: 855.998.8266

kelly@auctionvcommerce.com Locate, Rate, & Review Online Auto Auctions

“Think Outside the Blocks”

ABC BIRMINGHAM

·W ithin the online version of the magazine at www.usedcardealermagazine.com

P: 205.640.4040 F: 205.640.3071

· · · · ·

f ull contact info up to three employee lines all sale dates and times up to 10 consignor notations one color logo

1046 AE Moore Dr. • Moody, AL 35004

General Manager: Russ Sapp AGM / Fleet Lease: Roy Caldwell SALE DAY: Every Wednesday at 10:15 am Major Accounts: Santander Consumer USA,

Chrysler Capital, ARI, Automotive Remarketing Inc., C&F Finance, Caprock Remarketing, CPS, Credit Acceptance/VRS, Element Financial, Lease Plan, Motors Acceptance, One Main Remarketing, Prestige, Primeritus, PFS, Redstone Federal Credit Union, Westlake Financial, UACC

Option B- $840 yearly

(paid up front for the year by Nov. 15, $70/month)

· · · · ·

f ull contact info up to five employee lines all sale dates and times unlimited consignor notations up to three color logos

To list your auction in this directory, or for more information, contact Chase Tidwell at 817-640-3838 chase@niada.com

www.dealersauto.com

General Manager: Ramey Snider Sales Manager: Stefanie Uebelsteadt Fleet/Lease Manager: Cynthia Cofer SALE DAY: Every Thursday at 9:00am CST 1:00pm CST

· On NAAA’s website at www.naaa.com

(paid up front for the year by Nov. 15

P: 251.338.7653 F: 251.338.1687

Monthly GSA Public Sale: Thursday at

ALABAMA

Option A- $695 yearly

3030 McVay Drive North • Mobile, AL 36606

In-Op Sale biweekly at 8:45am CST

·O nline at www.niada.com along with a free hyperlink to your auction website

2017 NIADA/NAAA AUCTION DIRECTORY LISTING PACKAGES

DEALERS AUTO AUCTION OF MOBILE

CARMAX ALABAMA

CarMax Birmingham 2696 John Hawkins Pkwy. • Hoover, AL 35244 Every Tuesday at 2:00pm

We feature consignments from the area’s

largest new car franchise stores as well as Remarketing by Element, ARI, Automotive Remarketing Inc., Consolidated Asset Recovery, Check Into Cash, Arms Across America, and many more!

SHOALS NORTH ALABAMA AUTO AUCTION

651 Fairgrounds Rd • Muscle Shoals, AL 35661 www.snaaa.com

P: 256.232.0201 F: 256.232.8822 www.dealersauto.com

General Manager: Roger Fields Operations Manager: Terrence Cartwright Fleet/Lease Manager: Missy McCormack SALE DAY: Every Thursday at 9:00am CST

500+ consignments every week from new and used car dealers and fleet/lease

P: 916.991.5555 F: 916.991.5445 www.brasherssac.com

General Manager. John Brasher SALE DAY: Tuesday, 8:45am Ford Factory: Monday, 1:00pm (every other week) GSA: 10am (3rd Fri. of month) RV/Powerports: Tuesday, 9am (every other week) Featuring: Ally Financial, ARI, AvisBudget Group,

Bank of the West, Capital One, Chrysler Capital, Credit Acceptance/VRS, Dollar Thrifty Group, Enterprise, Exeter, Fiserv, Ford Credit, Ford Motor Company, Golden One, GM Financial, GSA, Honda/Acura Remarketing, Hertz, Key Bank, Lobel, PAR North America, Repo Remarketing, Santander Consumer USA, U-Haul, Wells Fargo Dealer Services, Westlake Financial, and the largest dealer consignment in Northern California. BRASHER’S

6801 Colony Street • Bakersfield, CA 93307

SALE DAY: Every Tuesday at 6:00 PM

Every Monday & Thursday at 1:00pm

DEALERS ONLY

Featuring New car trades from 10+ new car stores and repos from several local and national lenders.

CARMAX CALIFORNIA CarMax Bakersfield

Every Wednesday at 2:00 pm

CarMax Buena Park

6100 Auto Center Drive • Buena Park, CA 90621

CarMax Duarte

1131 Central Avenue • Duarte , CA 91010 Every Tuesday & Friday at 9:30am

CarMax Fresno

7180 North Palm Avenue • Fresno, CA 93650 Every other Wednesday at 9:30am

CarMax Irvine

9501 Research Drive • Irvine, CA 92618 Every Monday & Thursday at 8:00am

ARIZONA CarMax Phoenix 1041 N. 99th Ave • Tolleson, AZ 85353

26125 US Highway 72 • Athens, AL 35613

6233 Blacktop Road • P.O. Box 73000 Rio Linda, California 95673

General Manager: Jason Isbell 256.443.2836 • jason@snaaa.com Office Manager: Sue Amerson 256-381-2745 • sue@snaaa.com Sales: Sodonia Barnes 256.263.8990 • sodonia@snaaa.com

CARMAX ARIZONA

DEALERS AUTO AUCTION OF HUNTSVILLE

ADESA BRASHER’S

P: 256.381.2745 F: 256.381.2773

At CarMax Auctions, our mission is to provide our customer with an honest, open, and dealer-friendly auto auction with exceptional customer service. • 97-100% Sales Rate • Dealer-Only Auctions • Conditional Announcements Visit www.carmaxauctions.com today for more information.

CALIFORNIA

ALABAMA - CALIFORNIA

NAAA & NIADA have teamed up to provide all NAAA member auctions a discount on Used Car Dealer magazine's monthly auction directory listings.

AUTO AUCTION DIRECTORY

Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

CarMax Oxnard

2001 Lockwood Street • Oxnard, CA 93036 Every Wednesday at 9:30am

CarMax Sacramento

1000 Nichols Drive • Rocklin, CA 95765 Every Monday at 9:30am

CarMax Sacramento South

8185 E. Stockton Blvd. • Sacramento, CA 95828 Every Monday at 2:00pm

Visit www.carmaxauctions.com today for more information.

We feature consignments from Remarketing

by Element, ARI, Automotive Remarketing, Inc., Consolidated Asset Recovery, LeasePlan, PACE Financial, and many more!

WWW.NIADA .COM / NOVEMBER 2016 /

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COLORADO - FLORIDA

COLORADO CARMAX COLORADO

CarMax Colorado Springs 4010 Tutt Boulevard. • Colorado Springs, CO 80922 Every Monday at 9:30am

CarMax Parker 18220 Ponderosa Dr. • Parker, CO 80134 Every Monday at 1:30pm

Visit www.carmaxauctions.com today for more information.

CONNECTICUT CARMAX CONNECTICUT

SOUTHERN AUTO AUCTION

161 South Main Street • P.O. Box 388 East Windsor, CT 06088 P: 860.292.7500 F: 860.292.7598 www.saa.com

Owner: Larry Tribble Vice President/Operations: Rick Nadeau National Sales Manager: Scott Rodgers Factory Manager: Doug Briggs Dealer Sales Manager: Dennis Finkel Marketing Director: John Turcotte SALE DAY: Wednesday • America’s Largest Independent Auction • 20 Lanes, 4,000 Vehicles, Every Wednesday Since 1947 Featuring: Ally, Nissan / Infiniti Remarketing, Honda / Acura Remarketing, Hyundai / Kia Finance, Hyundai Motors , GM Financial, Toyota Financial Services, Remarketing by Element, Exeter, ARI. GM Sponsored , Subaru of America, US Bank, Chase Off-Lease Subaru, Fusion Auto Finance, U-Haul, Merchants , MotorLease, LeasePlan, Volvo, Harley-Davidson Financial, Synchrony Financial

CarMax Hartford 89 Weston St. • Hartford, CT 06120

Visit www.carmaxauctions.com today for more information.

CENTRAL AUTO AUCTION

CLOSEST INDEPENDENT AUTO AUCTION TO NEW YORK CITY 185 Welton Street • Hamden, CT 06517

DELAWARE CARMAX DELAWARE

CarMax Delaware 2070 Stafford Way • Newark, DE 19711 Every other Tuesday at 2:00pm

Visit www.carmaxauctions.com today for more information.

P: 203.787.2277 F: 203.787.6564 www.centralaa.com

President/General Manager: Peter Saldamarco VP/Office Manager: Sally Saldamarco Sales Manager: Anthony Saldamarco Dealer Liaison: Tori Richnavsky Online Coordinator: Ralph Signore Simulcast Coordinator: Elise Gallup Live Dealer Sale: Tuesday 10:30am; All lanes,

DISTRICT OF COLUMBIA

Featuring: Dealer Consignment, Fleet/Lease, Repo’s, Absolutes, Donations, Municipal and INOPS. Proud Member NAAA. Check & Title Insurance, Auto Check, AutoIMS. Floor Plans: Next Gear Capital, AFC, AutoUse, Credit Cards. Full Service Facility. Mechanical, Body Shop, Transportation, PSI, PDR, Windshield Repair

Manager: Gordy Zaritsky SALES every Saturday at 10:00am.

all vehicles on Simulcast.

“First Ct Sale Of The Week - Fresh Cars, Fresh Buyers”. Centralaa.com

CAPITAL AUTO AUCTION

1905 Brentwood Road, N.E. • Washington, DC 20018

CARMAX FLORIDA

ADESA ORLANDO

CarMax Boynton Beach 2000 Highridge Road • Boynton Beach, FL 33426

2851 St. Johns Parkway • Sanford, FL 32772

Every Wednesday at 2:00pm

P: 407.328.7300 F: 407.321.4466 www.ADESA.com/Orlando

7420 State Road 84 • Davie, FL 33317

General Manager: Jeff York SALE DAY Every Tuesday @ 1:45pm 2000+ consignments every week from over 50 new car dealers, fleet, lease and bank inventory featuring Avis Budget, CAC, Markone Financial, PFS, UACC and Westlake. ALLY Auto Remarketing & SmartLane at 3pm in lane 6 and online. GSA Sale, second Tuesday of every month.

CarMax Ft. Lauderdale

Every Monday at 9:00am

CarMax Ft. Myers

3000 Colonial Blvd. • Ft. Myers, FL, 33966 Every Thursday at 3:00pm

CarMax Jacksonville

11335 Atlantic Blvd. • Jacksonville, FL 32225 Every Monday at 9:00am

CarMax Miami

1300N.W. 98th Court • Miami, FL 33172 Every Monday at 1:30pm

CarMax Orlando

6375 S. Semoram Blvd. • Orlando, FL 32822 Every Monday at 9:00am

CarMax Tampa

BSC AMERICA TALLAHASSEE AUTO AUCTION

5249 Capital Circle, SW • Tallahassee, FL 32305 P: 850.878-6200 F: 850.942-9830

Every Monday at 9:30am

FLORIDA

www.bscamerica.com drodriguez@bscamerica.com

General Manager: Doug Rodriguez Fleet Lease Manager: John Coukoulis Operations Manager: Tim Myrick Sales Managers: Vann Lane, Angela Messick

14920 North Nebraska Ave. • Tampa, FL 33613 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

& Michael Phifer

Regular Sale FRIDAY @ 10am ET Inops – Mechanically challenged running after the regular consignment 2nd Friday of the Month - Power Sport, RV and Marine Sale after Regular Sale. 3rd Friday 5 Day Powertrain Guaranteed Sale 10am. Featuring Approximately 500 - 600 cars each week in three lanes. All lanes broadcast live via Simulcast. National Fleet/Lease accounts include: Element, ARI, Westlake, Automotive Fleet Management and U-HAUL Fleet sales, many local banks and credit unions. All new facilities, including 2 Bay Mechanical Shop and Reconditioning Facility, Postsale inspections including a complete Auto Check history. We accept floor planning through AFC, Car Bucks, FMC, World Omni, and others. Virtual solutions include OVE and Smart Auction - the wholesale marketplaces open 24/7.

YOUR AUCTION TAMPA BAY

3010 Scherer Drive St. • Petersburg, FL. 33716

P: 727.572.8800 F: 727.556.0889 www.yourauctiontampabay.com

VP/General Manager: Marc Rickey GSM: Bill Lynes AGM: Mario Allmond Office Manager: Kellie Kaser Operation Manager: Mark Porter

Every Tuesday at 4:00pm - 200+ units Every Wednesday 3:00pm start time

8 lanes of total excitement 800 + Units Per Week 85% New Car Trades

“The Home Of Incomparable Customer Service”

P: 202.269.3361

www.capitalautoauction.com dc@capitalautoauction.com

Charity donations, FBI field agent cars, consignments, boats, trailers, & RVs. The public is welcome. Check our website for weekly sales lists.

YOUR AUCTION MOBILE

3017 Palm Beach Blvd. • Fort Myers, FL. 33916

P: 239.461.5590 F: 239.332.4840 www.yourmobileauction.com

General Manager: Ryan Rickey Office Manager: Jessica Ryan Operation Manager: Justin Wold Sunset Automotive

5989 Clark Center Ave.• Sarasota, Fl. 33912

Headquarters Toyota

5895 Nw 167th St. • Miami, Fl. 33015

Scanlon Sutherlin Mega Sale

14101 Tamiami Trail Ft. • Myers, Fl. 33912

Sutherlin Nissan Orlando

8125 E. Colonial Drive • Orlando, Fl. 32817

Palm Auto Mall

1901 S. Tamiami Trail • Punta Gordan Fl. 33950

Eagle Buick GMC

1275 Suncoast Blvd. • Homosassa, Fl. 34448 Please contact Ryan Rickey or staff for time and dates

P: 866.924.7070 F: 239.332.4840 / 239.461.5590

“The Home Of Incomparable Customer Service”

/ NOVEMBER 2016 / WWW.NIADA .COM

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GEORGIA CarMax Norcross

1975 Beaver Ruin Road • Norcross, GA 30071 Every Monday at 1:30pm

CarMax Southlake 3100 Mt. Zion Pkwy. • Stockbridge, GA 30281 Every Wednesday at 2:00pm

CarMax Town Center

1215 Ernest Barrett Pkwy. • Kennesaw, GA 30144 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

DYER AUTO AUCTION

KANSAS

P: 815.874.7800 F: 815.874.1325 Toll Free: 800.830.4722

P: 219.865.2361 IL: 773.731.6181

CARMAX KANSAS

www.dyerauction.com for pre-sale inventory!

5937 Sandy Hollow Road • Rockford, IL 61109

www.GRAA.net info@graa.net www.facebook.com/greaterrockfordaa

President: Mark Clark General Manager: Chad Anderson Inside Sales Manager: Keeley Capriola SALE DAY: Established in 1974, full service

auction, 800+ vehicles weekly. Conveniently located in proximity to Chicago, Milwaukee, and the Quad Cities. 6 lanes of Fleet/Lease/Dealer Consignment. Vehicles available on simulcast. Featuring: Enterprise, Consumer Portfolio Services, TD Auto Finance, Automotive Remarketing, Inc., Remarketing by Element, Credit Acceptance/VRS, Tidewater Finance Company, Select Remarketing Group and the best dealer network in the world.

641 Joliet Street • Dyer, IN 46311

Contact: Mike Dean

WEDNESDAY 1:00pm

Hundreds of vehicles from ENTERPRISE and other rental and leasing companies FRIDAY 9:00am 9:00am Donation Vehicles 9:30am Regular Sale

Featuring:

2 LEASE LANES 2 NEW CAR TRADE LANES 4 LANES OF DEALER CONSIGNMENT

CarMax Kansas City

6801 E. Frontage Rd • Merriam, KS 66204 Every Tuesday at 2:00pm

GEORGIA - LOUISIANA

CARMAX GEORGIA

GREATER ROCKFORD AUTO AUCTION

Weekly Cash Drawings! Special Party Sales!

KENTUCKY ABC BOWLING GREEN

555 Blue Grass Blvd. • Bowling Green, KY 42104

P: 270.781.2422 F: 270.781.5361

ILLINOIS

INDIANA AUTO AUCTION

4425 W. Washington Center Rd • Fort Wayne, IN 46818

ABC ST. LOUIS

721 S. 45th St. • Centreville, IL 62207

P: 618.332.1227 F: 618.332.1228

General Manager: Todd Ritter Ass’t General Manager: Brian Hockett Fleet Lease: Duane Tabor SALE DAY: Every Thursday at 9:30 am Major Consignors: GM Financial, ally, ARI,

Automotive Remarketing Inc., Capital One Auto Finance, Chrysler Capital, Element Financial, Enterprise Holdings, Goodwill, Lease Plan, Santander Consumer USA, Scott Credit Union, Toyota Financial, Universal Acceptance, UACC, US Bank, Wells Fargo

INDIANA CARMAX INDIANA CarMax Indianapolis

9750 North Gray Rd. • Indianapolis, IN 46280 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

P: 260.489.2776 F: 260.489.5476 www.indianaautoauction.net

General Manager: Eric Autenrieth Fleet/Nat. Accts. Manager: Jeff Aisel Thursday Consignment Sale: Repos 10:00am, F/L 10:30, Dealer Consignment 10:30 (weekly).

Featuring: ACC, Caprock, CNAC, Exeter, First Investors, GSA, Nicholas Financial, RSA, SAC Finance, Santander, SCS Credit Corp., Springleaf Financial, Tidewater, Vehicle Remarketing Services. F/L Units Featuring: ARI, Avis/Budget Group, Emkay, Enterprise RAC, Flexco, Nationwide Fleet, Norfolk Southern, Union Bank, DTG Operations. Major New Car Dealer Trades Featuring: Allan Nott, Bob Rorhman Auto Group, Don Ayres, Integrity, Jim Schmidt, Mike Anderson, Preferred Automotive Group, Tom Ahl. Thursday - Wrecked, Damaged & Driveables 9:00am (weekly). Tuesday HD Truck Sale: 12pm (Biweekly).

CARMAX ILLINOIS

CarMax Hillside 101 N. Wolf Road • Hillside, IL 60162 Every other Monday at 1:30pm

CarMax Naperville

3320 Odyssey Ct. • Naperville, IL 60563 Every Tuesday at 1:30pm

CarMax Schaumburg

250 E. Golf Rd. • Schaumburg, IL 60173 Every Monday at 9:00am

CarMax Tinley Park 18800 S. Oak Ave. • Tinley Park, IL 60477 Every Tuesday at 9:00am

Visit www.carmaxauctions.com today for more information.

CLARK COUNTY AUTO AUCTION 1611 Highway 62 • Jeffersonville, IN 47130

P: 812.283.5555 F: 812. 288.0834

www.clarkcountyaa.com Member of NAAA & NIADA Serving the Louisville, KY Metro Area

President/Owner: Matt Fetter Sales Manager: Paul Fetter F/L Repo Contact: Sherry Mauk Online Sales: Keith Fetz Online Sales: Erik Laasanen Dealer Sales: Heather Gabhart Dealer Sales: Bruce Kempf Dealer Sales: Andres Ama SALE DAY: Every Wednesday at 5:30pm.

Established in 1982 – 4 Lanes – 600+ Vehicles weekly. Ultra-modern auction facility built in 2006. Conveniently located 3 miles from Downtown Louisville, KY. Over 300 New Car Trades weekly. Repos from Auto Truck FCU, Automotive Capital Resources, Chemco FCU, Community First Bank, First Harrison Bank, Fort Knox FCU, Indiana Bank & Trust, Jefferson County FCU, Kemba Louisville FCU, Kentucky Telco FCU, L&N FCU, Lendmark Financial, Louisville Gas & Electric CU, Park Community FCU, Personal Finance, Rural Cooperative CU, Springleaf Financial, Tri-State Financial & more.

General Manager: Jim Dodd Fleet Lease: Alex Fatzinger SALE DAY: Every Friday at 8:45 am Major Consignors: Santander Consumer USA,

Chrysler Capital, ARI, C & F Finance, CNAC, Consolidated Asset Recovery, Donlen Corp., Element Financial, Lease Plan, Nicholas Financial, Prestige, Primeritus, UACC

CARMAX KENTUCKY CarMax Louisville

9550 Bluegrass Pkwy • Louisville KY 40299 Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

IOWA CARMAX IOWA

LOUISIANA

10315 Hickman Road • Urbandale, IA 50322

ABC BATON ROUGE

CarMax Des Moines

Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

3960 Blount Rd. • Baton Rouge, LA 70807

P: 225.778.3737 F: 225.778.4030

Owner/Operator: Butch Royall General Manager: Coney Chancellor Fleet/Lease Manager: Joe Hockett SALE DAY: Thursday, 9am

A full Service Facility featuring 600 vehicle Sale-Weekly Consignment from Ally Bank, Chrysler Capital, CapitalOne, Santander, Westlake, GE, ARI, Element,Merchants Remarketing, Caprock Remarketing

WWW.NIADA .COM / NOVEMBER 2016 /

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LOUISIANA - NEBRASKA

LOUISIANA’S 1ST CHOICE AUTO AUCTION

CAPITAL AUTO AUCTION

P: 985.345.3302 F: 985.345.5735

www.capitalautoauction.com th@capitalautoauction.com

18310 Woodscale Road • Hammond, LA 70401 info@lafcaa.com • www.lafcaa.com

General Manager: Don Sistrunk Managing Partner: John Poteet Ass’t. Gen. Mgr Administration: Jacob Warren Ass’t. Gen. Mgr Operations: Matthew Alombro Sales Manager: Bridget Higginbotham Fleet Lease Manager: Michael McCollum Tuesday Consignment Sale: 9:00am

We are now a 6 lane auction running 700-800 cars weekly 700-800 cars 100% simulcast, 33 acres, 6 lanes, floor planning, reconditioning, transportation, 24 hour secured site, video recorded sales, Auto IMS, Auction Access, Auction Edge. Convenient location between Baton Rouge & New Orleans. 2014 & 2011 Auction of the Year for Automotive Resources International (ARI). Consignors include 1st Investors, ARI, Credit Acceptance/VRS, Consumer Portfolio Services (CPS), Emkay, Hancock Bank, National Auto Acceptance, North American Financial, Prestige Financial & more! We offer Auction Pipeline, OVE, & Openlane selling 365/24/7!

5001 Beech Road • Temple Hills, MD 20748 P: 301.316.4980 Manager: Gordy Zaritsky

Sales every Saturday at 9:00am. Internet auction

every week on Saturday at 2:00pm, go to www.capitalautoauction.com now to register and log in, IT’S FAST, IT’S EASY, & IT’S FREE! Charity donations, FBI field agent cars, consignments, boats, trailers, & RVs. The public is welcome. Check our website for weekly sales lists

CARMAX MARYLAND

MINNESOTA

MISSOURI

CARMAX MINNESOTA

CARMAX MISSOURI

6900 Lakeland Ave N. • Brooklyn Park, MN 55428

4990 N. Service Road • St. Peters, MO 63376

CarMax Brooklyn Park

Once a month on Monday at 9:30am

Every other Monday at 2:00pm

Visit www.carmaxauctions.com today for more information.

MID-STATE AUTO AUCTION

KCI KANSAS CITY

310 Bach Avenue • P.O. Box 100 New York Mills, MN 56567

CarMax Laurel

8800 Freestate Dr. • Laurel, MD 20723 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

MASSACHUSETTS

CarMax St. Louis

P: 218.385.3777 F: 218.385.3232 Toll Free: 800.458.5506

www.msaanym.com • msaanym@arvig.net

President & Manager: Robin R. Thompson Transportation Manager: Wendy Windels Fleet Lease Manager: Dee Sullivan Consignment Sale - Four Lanes Friday 10:00am.

Featuring: Advanced Remarketing Services, ARI,

Choice Auto Rental, DSC, Fleet Lease Disposal, GSA Fleet Sale, PAR North America, Navy Federal Credit Union, Southern Remarketing Solutions, Union Leasing, United Auto Credit Corp., Westlake Financial Services plus dealer consignment.

11101 N. Congress Ave • Kansas City, MO 64153

P: 816.502-3318 F: 816.801.8565 www.kciaa.com

General Manager: Doug Doll AGM of Sales: Jennifer Leocardi SALE DAY: • Every Thursday – 9:00am

• Equipment Auctions as scheduled/ Thursdays – 12:00pm • GSA Public Sales as scheduled/ Thursdays – 1:00pm • Monthly Promo Event Sales as scheduled/ Thursdays

CENTRAL MASS AUTO AUCTION 12 Industrial Park Rd East • Oxford, MA 01540

P: 508.987.8396 F: 508.987.6430

MARYLAND AUTO AUCTION OF BEL AIR 803 Bel Air Road • Bel Air, MD 21014

P: 410.879-7950 F: 410.893.1515 www.bscamerica.com

Owners: The Nichols Family General Manager: R. Charles Nichols Customer Service Manager: Jay Uzl Dealer Sales Manager: Christina Thorneycroft Floorplan Manager: Brenda Myers Dealer Consign: Michelle Nichols-Neff VP of Fleet Operations: Cindy Mitchell Salvage: Tommy Rogers Car & Truck Auction Contact: Nick Calvaresi OVE Coordinator: Jennifer Friedel Transportation Manager: Allison Wylam

www.cmaainc.com info@cmaainc.com

Managing Partner: Joe Smalley, Sr. General Sales Manager: Luke Semmelrock Online Sales Support: Jessica Groccia SALE DATE: Thursday 8:30am. Auction Features: Front Line Dealer Consignment,

Fleet, Lease and Bank Inventory and donation vehicles on Thursdays with 1000+ cars in 7 lanes. Simulcast, OVE, AutoIMS, effective telemarketing, increased web presence, monthly promotions, cash incentives. Come experience the CMAA difference!

Thursdays 8:45 am –

Features 2000 units weekly from GM Financial,

Ally Remarketing, Westlake Financial, Santander, Chrysler Capital, Exeter, Bank of America, Element, ARI, M&T Bank, Mile One Automotive Group, UAC, Avis Budget Group & many more. Transportation, Recon & Mechanic Shop on site. Post sale inspections available. Signature Provider for OVE. com and Smart Auction. Discounted hotel rates & airport pickup available. Power Sports Sale 10 am 2nd Tues. monthly, Equipment Sale 9:00 am 4th Tues. monthly, GSA 10:00am monthly, Wednesday 10:00am GM Financial Factory Bi-Weekly, Thursday 8:30am Rental Wrecks, Donations, F/L & Dealer Consign., Car & Truck Auction of Maryland Repo Sale 8:00 am weekly (open to the public).

LYNNWAY AUTO AUCTION

400 Charter Way • North Billerica, MA 01862

P: 781.596.8500 F: 781.581.5033 www.lwaa.com

President: Jim Lamb Vice President: George Russo VP of Operations: Richard Delfino SALE DAY: Every Wednesday: 9:00am

NEBRASKA MISSISSIPPI REA BROTHERS' MID-SOUTH AUCTION

1657 Old Whitfield Road • Pearl, MS 39288-7509

P: 601.956.2700 F: 601.956.5603 www.midsouthaa.com

Owners: John Rea & Jimmy Rea Sales Manager: Stacy Alexander SALE DAY: Every Tuesday at 9:45AM Featuring: Ally Auto Remarketing, Hyundai,

Kia Motor Finance, ARI, Avis, Enterprise, Budget Trucks, RSA, FLD, Next Gear Capital, Units from top local new car stores and independent dealers. Damaged & Disabled Sale: 1st & 3rd Tuesdays Tuesdays Specialty Sale: 3rd Tuesday of each month Government Auctions: 1st Thursday of each month at 10:00am. Featuring: State of MS, and other federal and state agencies. Rea Brothers‘ *

Mid~South Auction

AUCTIONEER LIC. # 717

Luxury, Foreign & Domestic, Trucks, Classics, Specialty. Online Simulcast: All 8-Lanes via AuctionPipeline

LINCOLN AUTO AUCTION

11909 Highway 6 • Waverly, NE 68462

Toll-Free: 800.830.3191 Local: 402.475.5500 F: 402.475.5508 www.lincolnautoauction.com

General Manager: Ryan Durst SALES DATES:

Every Wednesday 10am CDT. GSA Sales: Call for details & schedule.

YOUR NEW CAR TRADE HEADQUARTERS: Featuring Over 45 new car stores. Float Sales. Every Sale.

NEBRASKA AUTO AUCTION 7500 N. 56th St. • Lincoln, NE 68514

P: 402.466.8477 F: 402.466.7932

www.nebraskaautoauction.com SALE DAY: Every Tuesday: 10:00am CT ‘For Dealers by Dealers’

Large Consignments, High Sales%, Friendly Staff, Wide Variety, Quality Inventory, No Hassles, Fast Service, Full Dealer Services. NEBRASKA AUTO AUCTION

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NEW JERSEY

CARMAX NEVADA

CARMAX NEW JERSEY

1000 W. Warm Springs Rd.• Henderson, NV 89014

620 Cross Keys Rd • Sicklersville, NJ 08081

CarMax Las Vegas

Every Wednesday at 9:00am

At CarMax Auctions, our mission is to provide our customer with an honest, open, and dealer-friendly auto auction with exceptional customerservice. • 97-100% Sales Rate • Dealer-Only Auctions • Conditional Announcements

Visit www.carmaxauctions.com today for more information.

NEW HAMPSHIRE AUTO AUCTION OF NEW ENGLAND Exit 4 off Interstate 93 • 8 Action Boulevard Londonderry, NH 03053

P: 603.437.5700 F: 603.437.5800 www.aane.com

President: William P. DeLuca III General Manager: Steven DeLuca Director Sales & Marketing: Michele Pierog Sale Thursday 9:15am

Featuring: 6 Auction Lanes, 2 Fleet/Lease Lanes.

1200 Plus Units including Large Dealer Consignment. Floor Plan Financing available through Auto-Use, AFC, Citizen’s Bank, Sovereign Bank & more. A large number of Fleet/Lease accounts (call for details). Mechanical Repair, Reconditioning & Transportation Facilities. 10 minutes south of Manchester Airport, 40 minutes north of Boston. Member NAAA, AIA, IAA, NHADA, NEIADA, IARA, & Auction Pipeline.

P: 607.565.8151 F: 607.565.8659

Every other Tuesday, at 9:30am

President/Owner: Jeff Barber Commercial Accounts: Neal McEwen Sales Manager: Jim Terwilliger SALE DAY: 8 Lanes Every Friday at 9:20

Visit www.carmaxauctions.com today for more information.

NEW MEXICO 5500 Alameda Blvd. • Albuquerque, NM 87113 At CarMax Auctions, our mission is to provide our customer with an honest, open, and dealer-friendly auto auction with exceptional customer service. • 97-100% Sales Rate • Dealer-Only Auctions • Conditional Announcements

Visit www.carmaxauctions.com today for more information.

Internet auction every week on Saturday at 2:00pm, go to www.capitalautoauction.com now to register and log in, IT’S FAST, IT’S EASY, & IT’S FREE! Charity donations, FBI field agent cars, consignments, boats, trailers, & RVs.

The public is welcome. Check our website for weekly sales lists.

GREENSBORO AUTO AUCTION INC. 3907 West Wendover Avenue • Greensboro, NC 27407

P: 336.299.7777 F: 336.854.2689 www.greensboroaa.com

Owner: Dean Green General Manager: Jerry Barker Assistant General Manager: Kim Joyce Fleet Manager: Larry Hamill Fleet Manager: Tom Nelson Marketing Manager: Chrissy Connor Sale Every Wednesday – Damaged & Disabled @ 8:30am & Fleet/Lease/Consignment @ 9:00am. GAA’s state-of-the-art main facility offers 3,000 vehicles every week, 20 selling lanes, ALL lanes equipped with Simulcast!, 16 window dealer checkin/checkout counter. GAA offers fleet/ lease vehicles from ALLY Auto Remarketing, Avis Budget, Bank of America, Dollar Thrifty, Enterprise Holdings, Ford Motor Credit, Hertz, Hyundai, Hyundai Finance, Kia Finance, Nissan & Infiniti Remarketing Services, TD Auto Finance & many other fleet/lease accounts. Transportation & floor plan financing available on site. Factory Sales for Ford & Chrysler Motors. Simulcast available for all sales.

Tri City Blvd, Greensboro

Every other Tuesday at 9:30am

Ford Factory & Chrysler Motors Factory every other week, call for sale dates & times or visit greensboroaa.com/calendar

Main Facility – Wendover Ave., Greensboro -

NORTH CAROLINA

Kia & Mitsubishi sales the first Wednesday of every month, Subaru Factory and Hyundai Factory as inventory permits.

CARMAX NORTH CAROLINA CarMax Charlotte

NEW YORK CARMAX NEW YORK At CarMax Auctions, our mission is to provide our customer with an honest, open, and dealer-friendly auto auction with exceptional customer service. • 97-100% Sales Rate • Dealer-Only Auctions • Conditional Announcements

Visit www.carmaxauctions.com today for more information.

www.capitalautoauction.com nh@capitalautoauction.com

Manager: George Frey SALE DAY: Every Saturday at 11:00am.

AM 1100+ Vehicles Every Friday! GM Financial Closed Sale Alternate Thursdays.Toyota and Lexus Financial Services sale on Fridays as scheduled. Consignors & Features: Ally, Avis Budget Group, Consumer Portfolio Services (CPS), Credit Acceptance/VRS, Emkay, Enterprise, ESL Federal Credit Union, Five Star Bank, Gateway One Lending & Finance, GM Financial, Key Bank, T-Car, Tebo Financial, Toyota and Lexus Financial Services, U-Haul, United Auto Credit Corp. (UACC), Wells Fargo, World Omni, and more.

CarMax Albuquerque

Monthly on Monday at 9:30am

P: 603.622.9058

www.statelineauto.com

CARMAX NEW MEXICO

3600 Henrietta Rd. • Rochester, NY 14623

190 Londonderry Turnpike • Manchester, NH 03104

830 Talmadge Hill South • PO Box 351 Waverly, NY 14892

CarMax Sicklersville

CarMax Rochester

CAPITAL AUTO AUCTION

STATE LINE AUTO AUCTION

7700 Krefeld Dr. • Charlotte, NC 28227 Every Monday at 9:30am

CarMax Hickory

OHIO

Every Monday at 2:00pm

ABC CINCINNATI

8520 Glenwood Ave. • Raleigh, NC 27612

P: 513.679.7910 F: 513.679.7913

1935 15th Avenue Place • Hickory, NC 28602

CarMax Raleigh

Every Tuesday at 9:00am

Visit www.carmaxauctions.com today for more information.

120 Ctiy Centre Dr. • Cincinnati, OH 45216

General Manager: Lee Schoenling Assistant General Manager: Tony Schoenling Fleet Lease: Monta Mller SALE DAY: Every Wednesday at 9:30 am and Friday at 10:00 am

Major Consignors: General Electric Federal Credit

Union, Kemba Credit Union, P.F.S.C, Element Financial, Titlemax, Westlake Financial

ROCHESTER-SYRACUSE AUTO AUCTION

1826 State Route 414 • P.O. Box 129 Waterloo, NY 13165

P: 315.539.5006 F: 315.539.9508 www.rsautoauction.com 23 years experience

Owner/GM: Scott Prankie Assistant GM: Marci Keear Fleet, Lease, Repos: Marci Keear/Scott Prankie SALE DAY: Every Thursday, 5 pm, Simulcast

on all 4 lanes.

Featuring: ARI, Credit Acceptance/VRS, Tebo Financial, Union Leasing, Exclusive Wheels Inc Seller, Mike Albert Leasing, and many local banks. Big Enough to Serve You! Small Enough to Care!!

ABC DETROIT/TOLEDO

9797 Freemont Pike • Perrysburg, OH 43551

P: 419.872.0872 F: 419.872.8617

General Manager: Jay Wilson Assistant General Manager: Joel Maltese Assistant General Manager: Andy Spain SALE DAY: Every Friday at 9:00 am Major Consignors: Chrysler Capital, ARI, ACC,

Avis/ Budget, CNAC, Consolidated Asset Recovery, CPS, Credit Acceptance/VRS, Direction CU, Donlen Corp., Element Financial, Prestige, Primeritus, PFS, Titlemax, UACC, United Leasing, Universal, VPSI, Inc.

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CARMAX OHIO

OKLAHOMA

OREGON

12105 Omniplex Ct. • Cincinnati, OH 45240

CARMAX OKLAHOMA

ADESA NORTHWEST

CarMax Columbus

1121 E. Memorial Rd. • Oklahoma City, OK 73131

CarMax Cincinnati

Every Monday at 2:30pm

2700 Farmers Dr.• Columbus, OH 43235 Every Monday at 9:30am

CarMax Oklahoma City

Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

90485 Auction Way • Eugene, OR 97402

P: 800.905.3901 F: 541.689.6049 www.brashersnorthwest.com

General Manager: Mark Melton Regular consignment sale every Wednesday at 9:30am. RV Sales every 2nd and 4th Wednesdays

monthly.

Featuring: 8 lanes, Bank of America, ARI, Bank of the

4700 Groveport Road • Obetz, OH 43207

www.cfaa.com

www.daaokc.com

P: 614.497.2000 F: 614.497.1132

P: 405.947-2886 F: 405.943-8370

Chief Operating Officer: Greg Levi Chief Executive Officer: Alexis Jacobs Chief Financial Officer: .Scott Day Chief Information Officer: Steve Wycoff Vice President of Sales: Tim French General Manager: Chuck Dearing Assistant General Manager: Adam King Marketing Manager: Chris Feick SALE DAY: TUES: Factory Sales: GM Financial

Owner/President: Gary Smith General Manager: Jon Reininger Fleet/Lease Manager: Mike Egdahl

Closed Sale 10am every other week. WED: Subaru Closed Sale 10am Monthly GSA Monthly (Wednesday immediately following Repo Sale) Float Sale 9:30am on the last Wednesday of every month Consignment Sale 9am Lease Sale 9am Repo Sale 12pm Featuring: ACC, Ally Auto Remarketing, Ally Commercial Truck, GM Financial, AutoNow, Automotive Resources, Avis/Budget, Budget Truck, Byers Car Rental LLC, JP Morgan Chase, COCC, Columbus Finance Inc, DTAG, Enterprise Holdings, First Investors, First Merit, GM Financial, Guardian Finance, Huntington National Bank, Kemba Credit Union, Lease Plan USA, Honor Finance and Tebo Financial, Nicholas Financial, Professional Finance Financial Services, SST, Subaru of America, Tidewater Motor Credit, & Westlake Financial.

Consignment Sale – Thursdays, 8:30am

Featuring: Ally Financial, Automotive Solutions, Avis

Budget Group, Bank Repos, B.F. Remarketing, Bob Howard Auto Group, Bob Moore Auto Group, David Stanley Auto Group, Dollar Thrifty Automotive Group, DTG, Enterprise, GM Financial, Group 1 Automotive, Hertz Carco, Hertz Corporation, Joe Cooper Auto Group, Littleton Motor Company, Midwest Car Corp., One Main Remarketing, R.B. Leasing, RSA, Santander Consumer USA, The Key Financial, Thrifty Car Rental, W.M. Sales & Leasing, & many more. INOP Sale held weekly. GM Financial Closed Sale – Monthly @ 10:00am (check for dates) GSA Sale Once a Month (Check for Date & Times) Online purchasing available through Pipeline Simulcast. Auction Access accepted. A proud member of www. auctionpipeline.com. Full service Recon Facility (Paint/Body, Mechanical, Detail).

Z66 AUTO AUCTION

66 N Mingo Rd • Tulsa OK 74116

P: 918.794-0660 F: 918.794.0740 www.z66aa.com

GREATER CLEVELAND AUTO AUCTION “Everything We Touch Turns To SOLD”

5801 Engle Rd. • Brook Park, OH 44142

P: 216.433.7777 Toll Free: 800.929.4222 F: 216.676.4200 www.gcaacars.com

President: Patrick Morsillo Vice President: Michael Morsillo VP of Business Development: Jim Morsillo General Manager: Keith Glass 57 years of experience Sale Every Friday Public Sale @ 10:00 am. Dealer Sale @ 11:30 am

New Car Trades, Repossessions and Donations. Located minutes from Greater Cleveland International Airport. Full reconditioning and mechanical services available.

General Manager: Monte Freeman President of Sales: Doug Pirnak Auction Edge/Simulcast Sales: Gary Reeves Dealer Registration: Andrew Barnett Office Manager: Lisa McAnelly SALE DAY: every Friday at noon! INOPS every

1457 Manheim Pike • Lancaster, PA 17601 Every other Wednesday at 3:00pm

CENTRAL PENNSYLVANIA AUTO AUCTION

41 Airstrip Drive • Mill Hall, PA 17751

DEALERS AUTO AUCTION

1028 S. Portland • Oklahoma City, OK 73108

CarMax Lancaster

West, Capital One Auto Finance, Wells Fargo Dealer Services, Fiserv, Synchrony Bank, Wells Fargo, Key Bank, Kendall Auto Group, Hertz Car Sales. NORTHWEST

COLUMBUS FAIR AUTO AUCTION

CARMAX PENNSYLVANIA

CARMAX OREGON CarMax Portland

13750 SE Johnson Rd. • Milwaukie, OR 97222 Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

P: 570.726.4300 F: 570.726.7841 www.cpaautoauction.com

President/C.E.O: Grant Miller Vice President/C.O.O: Doug Miller Fleet/Lease Manager: Shanan Miller SALE DAY: Every Thursday at 10:00 am

UTILITY VEHICLE AUCTION: Every 3rd Thursday each month at 8:00 am ANNUAL ANTIQUE & CLASSIC CAR EVENT: 3rd Weekend in July-Every year Commercial Consignors: Verizon Fleet Services, M & T Bank, ESSA Bank and Trust, Cross Valley Federal Credit Union, U-Haul, Payless, Service 1st Federal Credit Union, Northwest Savings and many more.

PENNSYLVANIA ABC LANCASTER

1040 Commercial Avenue East • Petersburg PA 17520

P: 717.569.5220 F: 717.569.3109

Owner/Operator: M. Gregory Gehman General Manager: Eddy Fazio Assistant General Manager: Jim Fucci Sales Manager: Heidi Wallace Fleet/Lease Manager: Nancy Brosey SALE DAY: Wednesday 9:00, Featuring: 8 Lanes Every Week!! 1400+ Units 3

Franchise Dealer Lanes – Lanes 1,3 & 4. 2 Fleet Lease Lanes – Lanes 7 & 8 including consignments from Element, Enterprise, Avis, Santander, Chrysler Capital, ARI, Lease Plan USA and Pelican Finance. Bargain Boulevard Weekly at 10:45 in Lanes 7 & 8 – Flat Buy Fee $150, Flat Sell Fee $100, units typically under $4000. Full-Service Recon and Body Shop Facilities ON SITE!! Preview Inventory at www. abclancaster.net Bid Online at www.edgepipeline.com

Friday at 11:30 Specialty Sale last Friday of the month at 11:30 Tulsa’s FIRST and ONLY 7 lane auction! Average consignment 850 units per week. New car trades, REPOS and Fleet Lease

CORRY AUTO DEALERS EXCHANGE 12141 Route 6 • Corry, PA 16407

P: 814.664.7721 F: 814.664.7724 www.corryade.com

President/Owner: Merle Swift Auction Manager/Owner: Tad Swift Sales Department: Jeri Elmquist Commercial Sales/Fleet: Holly Callan SALE DAY: Thursday, 10:00am Commercial Consignors: U-Haul, Element,

Emkay, Flexco, A R I, Avis/Budget Group, United Auto Credit, MotorLease, V-Ride, Union Leasing, Northwest Savings Bank, First National Bank of PA, Northwest Savings Bank, Gateway One Lending & Finance and many local banks, credit unions and regional donation units. Franchise Dealers: Paddock Chevrolet, DeLacy Ford, Weber Harris Ford, Transitowne Group, Rick Case, Gary Miller Group, Cunningham Chrysler, Humes Chrylser, Mullane Motors, Mercedes Benz of Buffalo, A Crivelli Chevrolet Subaru, West Herr Auto Group, New Motors, Rick Case (Cleveland).

CAPITAL AUTO AUCTION

5135 Bleigh Avenue • Philadelphia, PA 19136

P: 215.332.2515

www.capitalautoauction.com pa@capitalautoauction.com

Manager: Gabe Piorko

Sales every Wednesday at 4:00pm & every Saturday at 11:00am.

Internet auction every week on Saturday at 4:00pm, go to www.capitalautoauction. com now to register and log in, IT’S FAST, IT’S EASY, & IT’S FREE! Charity donations, FBI field agent cars, consignments, boats, trailers, & RVs. The public is welcome. Check our website for weekly sales lists.

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GARDEN SPOT AUTO AUCTION

1605 Apple St. P.O. Box 501 • Ephrata, PA 17522

www.gardenspotautoauction.com

General Managers: Omar Landis, Kristi Kohl Consignment Sale Every Tuesday starting at 10:00am “Push”/In-Op starting at 9:30am

Featuring: 5 Action Packed Auction Lanes. Floor Plan Financing Available Through AFC, Auto-Use, BSC and NextGear Capital.

DEALERS AUTO AUCTION OF MEMPHIS

www.rawlsautoauction.com

P: 901.480.4250 F: 901.345.5384

RAWLS AUTO AUCTION

CARMAX SOUTH CAROLINA

P: 803-657-5111 F: 803-657-6763

CarMax Columbia 555 Jamil Rd. • Columbia, SC 29210 Every Monday at 2:00pm

CarMax Greenville 2800 Laurens Rd. • Greenville, SC 29607 Every other Monday at 9:00am

MANHEIM CENTRAL PENN

General Manager: Jimmy Rawls Business Development: Angela Williams Fleet Lease Manager: Kelly Dodd SALES: Every Tuesday – Damaged & Disabled

@ 8:30am Early Bird @ 9:15am Fleet/Lease @ 10:00am GSA Sale once a month Utility sale as scheduled

2560 Rental Road • Memphis, TN 38118

www.dealersauto.com

General Manager: Phillip Butler Fleet/Lease Manager: Susan Perkins SALE DAY: Every Thursday at 9:00am CST.

In-Op Sale biweekly at 8:00am CST. CHRYSLER FACTORY SALE: Tuesday. Biweekly at 11:00am CST

Auction Features: GM Financial, Westlake Financial, BBT, Regional Acceptance, Regional Finance, Caprock Auto Remarketing and more. Reconditioning Center with 8 bays, eight lifts & modern testing equipment. Up-to-date technology with online sale offered through AWG.

Featuring: 550+ consignments every week from new and used car dealers, fleet/lease, and repossessions. We feature consignments from Remarketing by Element, ARI, Automotive Remarketing Inc., LeasePlan, CAC-VRS, TitleMax and many more!

TENNESSEE

DEALERS AUTO AUCTION OF MURFREESBORO

P E N N S Y LV A N I A - T E X A S

P: 717.738.7900 F: 717.738.7930

P.O. Box 3069 • Leesville, SC 29070

SOUTH CAROLINA

488 Firehouse Road • Grantville, PA 17028

P: 717.469.7900

www.manheim.com

F: 717.469.0311

General Manager: Sal Cuomo Office Manager: Shirley Kennedy Transportation/OVE: Joe Lipinsk SALE DAY Every Monday 12:00 Noon EST

Specialty Sale Location: YES TRA Sale Location: YES

CAROLINA AUTO AUCTION

P.O. Box 5677864 • Anderson SC 29623-5677 “The Right Choice”

P: 864.231.7000

F: 864.231.7900

www.carolinaautoauction.com

Owners: Henry & Patty Stanley General Manager: Eric Autenrieth Fleet Lease Manager: Sal Terranova Sales every WEDNESDAY at 10:00am.

Featuring: Our facility sits on over 92 acres with

MANHEIM PENNSYLVANIA

1190 Lancaster Road • Manheim, PA 17545

P: 717-665-3571 F: 877-605-0377 www.manheim.com

VP/General Manager: Joey Hughes Auction Manager: Darren Teague For complete details and auction specials “Like” us at facebook.com/manheimpa

an 8 lanes hosting a large weekly consignment, salvage sales on 1st and 3rd week of the month, and fleet/Lease units weekly that include the best in the industry from: Donlen, BB&T, Exeter Finance, Credit Acceptance / VRS, Flexco, Fiserv, ARI, United Auto Credit, Regional, Wheels, Triangle RAC, Enterprise Holdings, Avis Budget Group and more! Carolina offers great monthly promotional sales, up-to-the minute run lists, market reports, inventory previews and a strong online bidding portal for our dealers. Visit us at www.CarolinaAutoAuction.com!

CARMAX TENNESSEE CarMax Knoxville

11225 Parkside Dr. • Knoxville, TN 37934 Every Tuesday at 10:00am

CarMax Memphis

7771 Highway 64 • Memphis, TN 38133 Every Monday at 10:00am

CarMax Nashville

2353 Gallatin Pike N. • Madison, TN 37115 Every Monday at 10:00am

1815 Old Fort Pkwy • Murfreesboro, TN 37129

P: 615.217.2848 F: 615.217.6994

www.dealersauto.com

General Manager: Stephanie Baker Sales Manager: Matt Burch Fleet/Lease Manager: Nikki McCoy SALE DAY: Every Wednesday at 2:00pm CST

Monthly GSA Public Sale: Wednesday at 12:00pm CST.

Featuring: 650+ consignments every week from new and used car dealers and fleet/lease. We feature consignments from Remarketing by Element, Automotive Remarketing, Inc., Caprock Auto Remarketing, Mariner Finance, Enterprise Holdings, EmKay, Consolidated Asset Recovery, City Fleet Lease, Check Into Cash, Auto Next, PACE Financial, Arms Across America, Citizens Savings and Loans, and many more!

SALE DAY: Every Friday: 8:30 am ET

Sale Highline Sale every other Thursday: 9:30 ET TRA Sale every Friday 8:30 ET Ford Closed Sale every other Thursday opposite Highline Sale: 9 am ET Value Sale on Highline Thursday’s: 2 pm ET Specialty Sale Location: YES TRA Sale Location: YES

DEALERS AUTO AUCTION OF CHATTANOOGA

RHODE ISLAND OCEAN STATE AUTO AUCTION

10 Industrial Drive • Exeter, RI 02822

P: 401.397.2801 F: 401.397-2474 www.osautoauction.com

General Manager: Leo Antonino Fleet Lease Manager: Jennifer Bickford SALE INFORMATION: All sales available

for online buying Weekly Sale Thursdays at 9:30am Weekly Inop & Salvage Sale Monthly Utility Sale – 3rd Thursday of Every Month at 9:30am

Featuring: 24/7 Buying and Selling opportunities with our Buy Now program. 8 lane facility on 44 acres located 30 minutes from Providence airport, 24 hour security and gate check-out, full reconditioning facility staffed with ASE Certified mechanics for all your body work, painting, and detailing needs, complete transportation, monthly promotional sales. Visit www.osautoauction.com to view our runlists, market reports, sale information, online buying, and more.

2120 Stein Drive • Chattanooga, TN 37421

CARMAX TEXAS

www.dealersauto.com

13300 North I-35 Service Road Southbound Austin, TX 78753

CHARLESTON AUTO AUCTION

P: 601.906.3004 F: 423.499.0304

651 Precast Lane • Moncks Corner, SC 29461

General Manager: Todd Rea Fleet/Lease Manager: Karin McKinney SALE DAY: Every Thursday at 9:00am EST.

“COUNT ON US”

P: 843.719.1900 F: 843.719.1909 www.charlestonautoauction.com

General Manager: Laura Taylor Fleet/Lease Manager: Chris Wise Assistant General Manager: Jay Davis Marketing/Sales Manager: Jason Moritz Sale Every Friday 10:00am. Damaged & Disabled

Sale 2nd & Last Friday of the Month 9:00am. Featuring: 6 state-of-the-art action packed lanes. Monthly Promotional Sales! Fleet/Lease/Bank & Daily Rental lane running weekly featuring: Wheels Inc., ARI, Mike Albert Fleet Leasing, Heritage Trust, Professional Financial Services, MarkOne Financial, First Investors, Flexco Fleet Services, Embarq & more. Member of: NAAA, NIADA, CIADA, GIADA, FIADA.

TEXAS

In-Op Sale biweekly at 9:00am EST. Tuesday Open Sale at 6:30pm EST.

Featuring: 400+ consignments every week

from new and used car dealers, fleet/lease, and repossessions. We feature consignments from Remarketing by Element, Element Fleet Management, ARI, Automotive Remarketing Inc., Consolidated Asset Recovery, Check Into Cash, TitleMax, Citizens Savings and Loans, Floorplan Xpress, Atlantic Fleet Services, and many more!

CarMax Austin

Every Tuesday at 2:00pm

CarMax Dallas/Irving

3100 Spur 482 • Irving, TX 75062 Every Monday at 9:30am

CarMax Ft. Bend

21930 Southwest Freeway • Richmond, TX 77054 Every Monday at 2:00pm

CarMax Ft. Worth

8400 Anderson Blvd. • Fort Worth, TX 76120 Every Monday at 2:00pm

CarMax Gulf Freeway

13100 Gulf Freeway • Houston, TX 77034 Every Monday at 2:00pm

CarMax Houston North

16110 North Freeway • Houston, TX 77090 Every Wednesday at 2:00pm

CarMax San Antonio

3611 Fountainhead Dr. • San Antonio, TX 78230 Every Tuesday at 9:30am

CarMax Southwest Freeway

6909 Southwest Frwy. • Houston, TX 77074 Every Wednesday at 9:30am

WWW.NIADA .COM / NOVEMBER 2016 /

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TEXAS - WISCONSIN

UTAH

WASHINGTON

825 Rankin Road • Houston, Texas 77073

CARMAX UTAH

CARMAX WASHINGTON

fcaa@1stchoiceaa.com • www.1stchoiceaa.com

11213 South Jordan Gateway South Jordan, UT 84095

7814 E. Sprague Ave.• Spokane Valley, WA 99212

HOUSTON’S 1ST CHOICE AUTO AUCTION

P: 281.821.2300 F: 281/821-2977

CarMax Salt Lake City

Vice President & General Manager: John Poteet Vice President Sales & Marketing: Ray Skaggs Auction Manager: Jim Shreeve Fleet/Lease Manager: Keith Sommerlatte Fleet/Lease Coordinator: Wendy Reyna Metro Salvage & Damaged/Inop Sale Tuesday 10:00am. Regular Consignment Sale Wednesday 5:00pm.

Featuring: 8 acres, 6 lanes, 1500 cars weekly

including dealer trades, banks, & fleet units, floor planning, 24 hour secured site, reconditioning, transportation, AutoIMS, convenient location near Bush Intercontinental airport. Offering exceptional customer service! See you in the lanes! 1st Investors, Woodlands Financial, Prestige & More!

Every other Monday at 10:00am

VIRGINIA ABC VIRGINIA

656 S. Military HWY • Virginia Beach, VA 23464

P: 757.487.3464 F: 757.487.0514

General Manager: Jason Brinkley Assistant General Manager: Nate Seeley Fleet Lease: Dody Nolan SALE DAY: Every Wednesday at 9:00 am Major Consignors: ABNB Federal Credit Union,

LUBBOCK AUTO AUCTION

1122 E. 34th Street • Lubbock, TX 79404

P: 806.744.1444 F: 806.763.1214 www.lubbockaa.com

General Manager: Monty Bond Office Manager: Shandyl Higgins Owner: Charles Furr SALE DAY: Every Thursday at 10am since 1946. Featuring: Oldest Independent Auto Auction in the

State of Texas and 2nd Oldest in the United States. Dealer Only, WTGSIMULCAST, Whann Technology Group, Auction Insurance and Auction Access, GM Financial Repo’s, Fleet/Lease Automotive Rentals, Inc., GE Capital Fleet Services, dba Element Fleet Management and many more.

ARI, Consumer Loans America, CPS, Credit Acceptance/ VRS, Element Financial, General Services Administration Fleet, Michael Wayne Investments, Tidewater Motor Finance, Westlake Financial

info@tlsaa.com • www.tlsaa.com

Visit www.carmaxauctions.com today for more information.

BADGER STATE AUTO AUCTION

215 N. Pioneer Road N. • Fond Du Lac, WI 54937 P: 800-554-1126 F: 920-922-6823 www.badgerstateautoauction.com

General Manager: Tim Netz Sales Manager: Craig Storts Operations Manager: Lola Voskuil SALE DAY: every Thursday at 2:00pm.

Damaged andDisabled Sale running every week. Features: 5–Full Action Packed Lanes Each Week! Full Service, Repair and Reconditioning Center. Complete Transportation Services available. Auction Features: ARI, Select Management Resources, Wheels For Wishes, Rawhide, “PayDay Loans Stores”, plus many more!

DAA NORTHWEST

2215 S. Hayford Rd. • Spokane, WA 99224

P: 509.244.4500 F: 509.244.8244 www.daanw.com

General Manager: Greg Mahugh Northwest Regional Sales Mgr.: Steve Doyle SALE DAY Information: • Weekly Sales – Thursday at 9am

• Monthly Heavy Metal Sales- Thursdays at 8:30am • Monthly RV Sales at 11am • Monthly MotorSports Sales - Thursday at 12pm • Monthly Promo Sales as scheduled - Wednesdays & Thursdays

Featuring: Ally Auto Remarketing, Avis Budget

Group, ARI, Bank of America, Enterprise Holdings Group, Ford Motor Company (Closed), FMCC, GM Financial, Harley-Davidson Financial Services, OneMain Remarketing, PAR North America, Remarketing by Element, Toyota Financial Services, Westlake Financial and more.

10400 Southpoint Pkwy. • Fredericksburg, VA 22407 Every Tuesday at 9:00am

CARMAX WISCONSIN CarMax Kenosha

8200 120th Ave.• Kenosha, WI 53142 Moved to weekly at 2:00pm

CarMax Richmond

11090 W. Broad St. • Glen Allen, VA 23060 3801 Bonney Rd. • Virginia Beach, VA 23452

2205 Country Club Dr. • Carrollton, TX 75006

CarMax Fredericksburg

CarMax Virginia Beach

P: 214-483-3597 Toll Free: 866-212-0821 F: 214-483-3814

Monthly on Wednesday at 9:30am

CARMAX VIRGINIA

Every Tuesday at 2:00pm

TEXAS LONE STAR AUTO AUCTION

CarMax Spokane

WISCONSIN

DAA SEATTLE

3130 D Street SE • Auburn, WA 98002

Every Wednesday at 2:00pm

P: 253.737.2200 F: 253.737.2201

General Manager: Dave Blake Northwest Regional Sales Mgr.: Steve Doyle SALE DAY: Information:

Visit www.carmaxauctions.com today for more information.

www.daaseattle.com

• Weekly Sales – Friday at 9:30am

• Monthly Heavy Metal Sales - every other week • Monthly Promo Sales as scheduled - Friday at 9:30am

FEATURING:

SALE DAY: Every Tuesday at 2:00pm Franchise

ARI, Avis Budget Group, Fox Rent A Car, OneMain Remarketing, PAR North America, Remarketing of America, Wheels, Inc and more.

and dealer consignments And Auctions Every Thursday at 2:00pm Franchise and dealer consignments

RICHMOND AUTO AUCTION “Driven to Provide the Best”

3600 Deepwater Terminal Rd • Richmond VA 23234

P: 804.232.7355 F: 804.232.1818 www.RichmondAA.com

President: Mark Motley CFO: Dick Menendez Director of New Car Sales: Johnny Nuttycombe Director of Remarketing: Bruce McGeorge SALE DAY: Every Friday beginning at 9AM Features: We have been a family owned and

operated auction for over 25 years. We offer 7 lanes in our brand new state of the art facility. We offer weekly sales which include Bank repos, Government, and Fleet lease. We also sell new car dealer trades for over 25 area dealerships. We are the only premier auto auction located in central Virginia conveniently located directly off I-95. If you can’t make it to our sale in person, be sure to look at our inventory and bid online using auctionpipeline.com

/ NOVEMBER 2016 / WWW.NIADA .COM

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BHPH Dealer THE

OFFICIAL

NIADA

PREMIER

SUBPRIME

AUTO

RESOURCE

•

DECEMBER

2016

MAGAZINE

IT’S NEVER TOO EARLY TO

DOMINATE

TAX REFUND SEASON PAGE 6

S U P P L E M E N T

O F

U S E D

C A R

D E A L E R

M A G A Z I N E

BHPH Dealer •

THE

OFFICIAL

NIADA

PREMIER

SUBPRIME

AUTO

RESOURCE

•

MAGAZINE

CONTENTS DECEMBER 2016

BHPH Dealer •

THE

OFFICIAL

NIADA

PREMIER

F E AT U R E S 6 COVER STORY

SUBPRIME

AUTO

RESOURCE

•

COLUMNS 4 Editor’s Message

MAG Z I N Eplanning process What’s your plan for 2017? Before theAstrategic can begin, BHPH DEALER editor in chief Chuck Bonanno says, you must determine your true goals.

Chip Wiley of TRS Tax Max explains how tax refund season can benefit BHPH dealers throughout the year.

10 Best Practices

Tim Byrd, founder and president of DealerRE, explains how BHPH dealers can prepare for the obstacles that lie ahead in 2017 by creating a dealer-owned reinsurance company.

8 Best Practices

12 Leadership

earnToLead’s Dave Anderson provides some “game-changer L mindset builders” to help develop the mental focus, toughness and consistency to execute daily.

NIADA 20 Groups moderator Mark Dubois offers three key steps that can help you create an effective business forecast.

14 Dealer Perspective

tlanta dealer Hudson Biondo reminds us it’s our job as dealers to A change the public’s perception of Buy Here-Pay Here.

16 BHPH Advocate

A D V E RT I S E R S AMERICAN CREDIT ACCEPTANCE / SPARTAN FINANCIAL PARTNERS 19 ARA GPS 14 AUTOZONE 11 CLIFTONLARSONALLEN 14 DEALERRE 10 DEALERSOCKET IFC INTERACTIVE FINANCIAL MARKETING 9,12 PASSTIME 13 PERITUS 16 QUOTEPRO 7 SPIREON 17 STARS GPS 15 TRANSFIRST 4,5

Do you GPS? If so, NIADA senior vice president of legal and government affairs Shaun Petersen warns, legislators and regulators are on the lookout.

18 Management

lanning might be difficult, David Brotherton, moderator/ P consultant for NIADA Dealer 20 Groups says, but it’s essential – it’s the difference between being prepared and being surprised.

ONLINE

→

Magazine Layout: Christy Haynes

www.niada.com/bhph_dealer_magazine.php Click on ads that link directly to advertisers’ websites. For advertising information, please contact Troy Graff at troy@niada.com.

DECEMBER 2016

← BHPH DEALER

→

EDITOR’S MESSAGE

ARE YOU PLANNING TO FAIL? As I travel the country moderating Twenty Groups, I always ask my members about their strategic plans. Those are the plans that go beyond a monthly sales goal or the annual budget. They are the plans that determine the organization’s and the dealer’s future – the big picture plans, the short-, medium- and long-term plans. They are the plans that lead to the annual budgets and monthly goals. They are the plans that require careful consideration, thought and introspection from the dealer. The two replies I get that are troublesome are: “I want to sell more cars,” and, “I hope we sell more cars.” I will start with the second reply first. Hope is not a strategy. Hoping and wishing for things is fundamentally flawed. It implies you have no control over achieving your goals.

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BY CHUCK BONANNO

Hope is what I use for things I cannot control, such as weather or peace on earth or my favorite hockey team winning the Stanley Cup. Hope can, however, play a role in your strategic plan. An example: I am hopeful subprime auto finance will contract and BHPH dealers will benefit. My plan will include strategies that take into account those things, which I cannot control. My plan(s) will include scenarios in which subprime retreats, remains static and even grows. My plan will take into account any eventuality. The most common reply to my question is, “I want to sell more cars.” I never understand that response. Our mission is not to just sell more cars. Selling more cars might help achieve your underlying goals but it is not the end, it is the means. Selling more cars in a BHPH environment will help you grow

your portfolio, create better cash flow down in the future, even justify your overhead. But BHPH car sales are a negative cash flow event. The more we sell, the weaker our cash position. As you create your strategic plan, think about your true goals. Those goals can include building wealth, creating cash, deleveraging, debt retirement, an exit strategy or a succession plan. Every one of these strategies involves a sales projection, but that projection and its successful implementation allow you to achieve the underlying plan, your true goal. Once you have determined your goal, then the strategic planning process begins. It requires you to project sales, collections and the expense control needed to achieve your goal. You need to communicate those goals to the key personnel in your organization. Those key people determine your ability to

achieve your goals. Don’t just dictate – get feedback and verify their comprehension of the goals. Be certain they understand their role and buy in to your vision. Without that, you are back to hoping. Finally, you need to review progress periodically to ensure you are moving toward your goal. If you are moving in that direction, make sure your team knows you are pleased. If you are not moving in the right direction, only periodic review will allow you to shift, modify or correct your course. The adage “failing to plan means planning to fail,” is a cliché, but clichés are often truths. As we near the end of 2016 and look forward to 2017, there is no better time to create your strategic plan and begin implementation. I hope you are successful.

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Think About Your True Goals

CHUCK BONANNO IS EDITOR IN CHIEF OF BHPH DEALER.

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BHPH DEALER

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COVER STORY

IT’S NEVER TOO EARLY TO DOMINATE TAX REFUND SEASON

ere it comes. Tax season is upon us … at least for the fortunate and the vigilant Buy Here-Pay Here dealers across the country. Sadly, many dealers sit and hope tax season comes in January, only to wonder where it went as St. Patrick’s Day approaches. Tax season is dead? How can it be dead when the average refund within the special finance market has more than doubled in the last 10-12 years? In my 15 years of helping car dealers maximize their tax refund season, I have learned many things. The one lesson that tops them all is the refund season is a dynamic animal. It is constantly changing from year to year and week to week. The phenomenon is dead for those who do not adapt and profitable for those who seek it. As the holidays approach, many Buy Here-Pay Here establishments are starting their second month of tax season. They aren’t merely preparing to sell cars in January and February. They are actively moving cars in October, November and December. They are stealing your customers from under you in the “slow” months before the traditional tax season. Some are even selling all 12 months of the year based on the customer’s future tax refund, with zero additional risk in their portfolios. But it’s not too late. Franchise dealers, Best Buy, furniture stores and manufactured home retailers will not be entering

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→ DECEMBER 2016

the market until January. You, as a Buy Here-Pay Here dealer, can still get in and steal their customers. How? • Find a tax refund partner to help you estimate a customer’s upcoming refund. Some due diligence will point you toward the right service provider with experience with car dealer customers. • An online calculator or the tax place down the street can help you calculate, but you need someone to help you sell with no additional risk. Don’t settle for an accountant or a website. Find a partner who understands your business and your customers. • Expedite and update your marketing. Customers cannot find you if you don’t tell them what you can do for them. “Why wait for the bus in the snow as you do your holiday shopping? We can put you in a quality car NOW in advance of your upcoming tax refund!” • Don’t forget to update the text of your website to maximize your Google results. Spread the word on Facebook and reach thousands of people within a few miles of your location for less than $100. • Train your staff. Teach them how to hold a customer’s hand to maximize the tax refund opportunity. Otherwise, customers will spend every dime of their $5,000$10,000 refund within 2448 hours. • When you have the right tax season partner, you will be able to have better control of the refund

BY CHIP WILEY

money. That is not so you can get $5,000 from it. The goal is to get an amount the customer is comfortable with and that helps reduce your overall risk. • Change your company’s culture. It’s about to get busy. Expect to see onethird to one-half of your annual business within 8-12 weeks. It’s time to get our hands dirty. That’s why we are all in business. • Negativity is not uncommon leading up to a successful tax refund season due to changes in duties and workflow. It is your job as an operator to assemble the parts of your organization into a successful selling machine. Explain that refund season is a time of opportunity for everyone in the organization. It ensures job security and enhances bonuses and commissions. • Set your underwriting criteria. Here’s a hint: Don’t change it! • Whether your customer has the funds to make the down payment you want or the down payment you are willing to settle for, the goal is to get a commitment for additional funds from the upcoming refund. • Limits do apply to that concept. Remember your customer, especially those who are indifferent to their credit and repossessions. • “Why would I give a dealer $3,000 of my refund for a car that is no longer ‘new’ when I can get another one down the street for $1,000 or $1,500 down?” • If you only commit them to $800 or $1,200 in February, that is no longer an issue.

• Start planning for January and February. You should see an influx of sales in addition to increasing your cash flow here as well. Breaking news: The PATH Act is now federal law. That means most Buy Here-Pay Here customers should not expect their refunds until Feb. 15 or later. Many tax professionals fear billions of dollars could hit the market within a couple of days. If you are not prepared, your competitors will be. It also makes sense to have an experienced tax partner who can make tax season a 12-month proposition instead of an unpredictable handful of days in February. Just like any government program, tax season can be delayed by uncontrollable forces such as weather. Eliminate the question marks by controlling your customers’ refund dollars and ensuring first access. The “sit and pray” approach to tax refund season no longer works. Sit and be prey is more accurate. There are too many sharks in the refund tank these days. If you do not actively pursue tax refund customers, more aggressive competitors from multiple industries will take them from you.

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Make Tax Season a 12-Month Proposition

CHIP WILEY IS THE DEALER TRAINING AND MARKETING SPECIALIST FOR TRS TAX MAX. HE HAS 15 YEARS OF EXPERIENCE, SPECIALIZING IN THE BUY HERE-PAY HERE DEMOGRAPHIC. FOR MORE INFORMATION, CALL (813) 987-2199 OR EMAIL TRS@ TAXREFUNDSERVICES.COM.

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BEST PRACTICES

THREE STEPS TO AN EFFECTIVE BUSINESS FORECAST Design, Manage and Execute Your Plan

ou have probably heard the expression, “Most businesses don’t plan to fail, they fail to plan.” As hard as that might be to accept, the truth is many businesses just don’t take the time to develop an effective business forecast. With 2016 winding down and 2017 on the horizon, it’s time to put some thought into your business forecast for the upcoming year. If you subscribe to the wild guess approach to business forecasting, the plan might take very little time to design but the results can range from terrible to shocking. On the other hand, if you make an effort to design a plan, then manage and execute the plan, the results will likely range from great to outstanding. To accomplish that task we will explore three steps to an effective business forecast.

EVALUATE YOUR CURRENT MARKET CONDITIONS Stop to ponder this for a moment. The market conditions your business competed in this year might not be the same market conditions your business will compete in next year. At the very least, it’s worth assessing what has changed in your market and the potential impact it would have on your business, both positive and negative. Evaluating key market elements will help determine if your market is in growth mode or decline mode. • Is the economy likely to be stronger or weaker next year? • Does the economic forecast equate to a growth opportunity for your BHPH business? • Will the BHPH industry as a whole return to growth mode next year? • Will subprime auto finance back off from the aggressive tactics we have seen in recent years? • Has your market experienced an increase or decrease in the number of BHPH dealers? • Will the increase or decrease in competition equate to a growth opportunity for your business? • Will the ACV of your vehicle inventory increase or decrease next year? Will wholesale auction prices and vehicle supply increase or decrease next year?

BHPH DEALER

→ DECEMBER 2016

BY MARK DUBOIS

• What other market conditions will impact your business next year? The answers to those questions might not be readily available or easy to predict. But a meeting with your management team to discuss and brainstorm the potential effects of those market conditions will go a long way toward developing an effective business plan for the upcoming year.

ASSESS YOUR BUSINESS STRENGTHS AND WEAKNESSES It’s time for a reality check. In most cases it’s difficult to conduct an impartial assessment of the strengths and weaknesses of your own business. We all like to think we do a pretty good job in all areas. But if you belong to a BHPH 20 Group, your business results are well documented. Comparing your business results to other BHPH dealers in addition to national benchmark averages will provide a more accurate measure of how well your business is performing, and what areas need time and attention to improve. Some of the more common areas dealers struggle with are:

Staff: Many dealers suffer from hiring too fast and firing too slow, so if you fall into that category you’re not alone. Like most things, hiring good staff requires time, effort and knowledge. The knowledge comes from knowing how to attract good employees, where to search for new employees and how to keep good employees. Details on those important strategies will be discussed in other articles. Chargeoffs: How much more profitable would your business be if you could reduce annual chargeoffs by just 10 or 15 percent? Having said that, reducing chargeoffs is not an instant or overnight fix. Excessive chargeoffs are not a result, they are a symptom. Poor deal structure, faulty underwriting and ineffective collections are usually the root cause of excessive chargeoffs. Once again, participating in a BHPH 20 Group will provide the benchmarks and comparisons into what would be considered excessive chargeoffs for your BHPH business and size of portfolio.

BEST PRACTICES

What other revenuegenerating opportunities are available for your business? Many dealers have success selling service contracts, collateral protections insurance, GAP insurance and other revenuegenerating products. Just be aware of the risk of loading your customers with more payment than they can afford and setting them up for failure. Decrease expenses: We have already touched on what is generally the largest expense item affecting the bottomline profitability of BHPH dealers – chargeoffs. The degree you can reduce net chargeoff dollars in your business will determine how much more profitable your BHPH business can be. Other opportunities to decrease expenses require an assessment of specific fixed expenses,

semi-fixed expenses and variable expenses. Once again, dealers in a BHPH 20 Group have the benefit of analyzing and comparing their expense numbers to the group average and benchmark average to determine if their expense structure is in line with the size of their operation. Many times we see a dealer has more staff than the revenue side of the business can support. Right-sizing your business is an important exercise in developing an effective business forecast. Policy adjustment, or repairs to customer vehicles that are paid for by your business after delivery, is another silent killer of profitability. Closely monitoring policy adjustment and taking corrective action to control that expense item can have a huge impact on increasing profitability.

Both: The best formula for attaining increased profitability is to develop a business forecast with a focus on both increasing revenue and decreasing expenses. Consider: A 10 percent increase in revenue combined with a 10 percent decrease in expenses can have a substantial impact on the bottom-line profitability of your business. Focusing on one area but not the other might not produce the same result. The most successful BHPH dealers take the time to develop an annual business forecast and view it as an integral part of their year-toyear business strategy. They have a structured approach, with details on specific areas of the business they will work on to improve. Those dealers also monitor the results on a monthly basis to

determine if they are on plan, and make adjustments to the business forecast if events occur that have a positive or negative impact on it. Finally, the most successful BHPH dealers network with other BHPH dealers in a 20 Group format to measure, analyze and compare business results. The end result is typically improved business results and greater profitability that is based on a sound plan – not a silly wild guess.

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IDENTIFY OPPORTUNITIES TO INCREASE REVENUE AND REDUCE EXPENSES In the most simplified terms, the formula to increase the profitability of your business is to first increase revenue; second, decrease expenses; and third, both. Increase revenue: Take a moment to assess new opportunities to generate additional revenue. Is your up-front gross profit in line with benchmark dealers selling similar ACV vehicles? In many cases new members in a BHPH 20 Group discover their gross profits are substantially lower than the benchmark average. That translates into money left on the table that could have gone directly to your bottom line profitability if your pricing model was more in line with benchmark averages.

MARK DUBOIS IS A MODERATOR FOR NIADA DEALER 20 GROUPS AND AN AUTO INDUSTRY VETERAN WITH MORE THAN 35 YEARS OF EXPERIENCE, INCLUDING SALES, MANAGEMENT, RECRUITING AND TRAINING, E-BUSINESS, MARKETING AND BHPH MANAGEMENT. HE CAN BE REACHED AT MARK@NIADA.COM.

DECEMBER 2016

← BHPH DEALER

BEST PRACTICES

BE PREPARED FOR OBSTACLES IN 2017 P Dealer-Owned Reinsurance Circumvents Insurance Companies ayments are the lifeblood of a BHPH business. So what can you do to get ready for 2017? One of the most effective things you can do is set up a dealer-owned reinsurance company. Why? Let’s identify the three greatest obstacles to reaching the ultimate BHPH goal of avoiding repos and maintaining uninterrupted payments. Customers’ personal financial mismanagement: There is little you can do about that. It’s why they are BHPH customers in the first place. Mechanical breakdown: As Murphy’s Law dictates, it often happens at the worst possible time. It’s responsible for up to one-third of all repos. Lapsed insurance: What dealer can afford collateral exposed to risk of loss? This is responsible

BHPH DEALER

→ DECEMBER 2016

for a large percentage of repos. Those last two issues are why owning a reinsurance company is essential. Mechanical breakdown: You know it’s going to happen. Why not reserve for it? Why not have a system so no matter where a breakdown occurs, you have a plan and the money set aside to get the customer back on the road and making payments? The beautiful thing is the customer is reserving for it. Warranty your cars and let your customers provide the reserve to keep the cars repaired and on the road. How? Your reinsurance company will provide premium finance for your customer’s warranty. You will no longer be required to pay the full price of the warranty up front, which depletes your lending pool.

BY TIM BYRD

Lapsed Insurance: Insurance adjuster nightmares. Collection calls burning up your man-hours. Repos. Why not circumvent insurance companies? You have an RFC to circumvent the finance companies, right? It’s profitable and reduces tax liability. You can do the same thing with a dealer-owned reinsurance company, using a tool called debt cancellation coverage. Debt cancellation coverage covers your collateral. By providing it at time of purchase, your collateral is never without coverage. Customers love it because it saves them time and money by eliminating the need for outside coverage from the insurance company. In most cases, in the event of a total loss, their debt is wiped clean and they can get in a nicer, newer car right away

(they still need liability insurance required by the state). You no longer have to make collection calls for the insurance company or be at the mercy of adjusters. In the event of a total loss, you keep the car, not the insurance company. You are in control. The premium from your warranty and debt cancellation coverage provide the capital you need to take care of problems that arise. What is not used to pay claims becomes underwriting profit for the stockholders.

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TIM BYRD IS FOUNDER AND PRESIDENT OF DEALERRE, A GLOUCESTER, VA.BASED MANAGING AGENCY, AND AN AUTO INDUSTRY EXPERT ON DEALEROWNED REINSURANCE COMPANIES, BHPH OPERATIONS, AND DEALERSHIP AND F&I DEVELOPMENT. HE CAN BE REACHED AT WWW.DEALERRE.COM OR (804) 824-9533.

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LEADERSHIP

STAY IN YOUR ZONE Game-Changer Mindset Builders

BY DAVE ANDERSON

ffective and consistent execution requires a combination of both skill set and mindset. The five-step execution process I laid out in my book It’s Not Rocket Science: Four Simple Strategies for Mastering the Art of Execution provides a framework to develop the skill set. But until you develop the mental focus, toughness and consistency to want to execute daily – and to hold others accountable for doing likewise – simply having another process that is implemented only occasionally won’t help much, if at all. Following are a handful of what I call “gamechanger mindset builders” – affirmations, of sorts – that focus on execution. I teach them in my workshops, and they have been helpful in influencing attendees to develop an execution mentality that helps them get more of the right things done, consistently and with more excellence. Reading them as part of your morning motivational routine, discussing them in meetings and working them into your everyday thinking and behavior can be a key to executing the daily disciplines necessary to reach your vision – to help you close the gap between knowing what to do and actually doing it.

BHPH DEALER

→ DECEMBER 2016

The reality is, until you’re thinking right, you are not likely to execute right. Just like an athlete or other performer, we all have a “zone” where we are laser-focused, energized, effective and resilient. Out of that zone, we are spread thin, overwhelmed, and trying to play catch-up. It’s tough to demonstrate a killer instinct or gain momentum when you are working outside your zone. When you are in your execution zone, work is fun, time flies and you are getting results and making a maximum impact. By getting in your zone daily – preferably before you even get to work – you will get more done in less time and do so with fewer people and opportunities. That’s the power of execution: you accomplish more of what matters most, with less. Despite having a great execution process, until you are mentally checked in and locked in each day you will miss your potential by a mile. Weaving these eight points into your thinking will help put you in your execution zone and keep you there, day in and day out. I avoid zone busters: Zone busters take me out of my zone. They break momentum, distract me

LEADERSHIP

empowers me and keeps me in my zone. Taking responsibility preserves my self-esteem, earns respect, and keeps me focused on moving forward. Blame makes me a victim. Blame is the anti-focus and is the language of losers. I will never blame. I will always take responsibility. I don’t allow external conditions to dictate outcomes: When things out of my control conspire against me, I still take responsibility. If I blame conditions it weakens me and takes me out of my zone, and I’m admitting I don’t have control or a solution – and I always proceed as though I have control and a solution. Thus, I will take responsibility and navigate through adverse conditions by focusing on the things I can control. I won’t let external conditions

dictate the outcome. I have situations, not problems: Problems are negatives, and I won’t automatically label something as a negative because it might be a positive in disguise. Problems weaken me and can take me out of my zone, whereas situations energize me and keep me laser-focused. I only have problems if I react wrongly to situations and thereby create them. I renounce excuses: I don’t make excuses because excuses weaken me and others and take us out of our zones. Excuses waste my energy and distract me from executing what matters most. I can’t have a killer instinct and make excuses simultaneously. Excuses are the DNA of underachievers, and they make me less as a person. They are the language of losers. I renounce them.

I own it: When it comes to my actions, doing my job, and handling any responsibility given to me, I own it. Regardless of the conditions or outcome, I take complete responsibility, even if it is not technically all mine to bear. I own it without excuse or explanation because owning it keeps me in control and in my zone. When conditions beyond my control conspire against me, I still own it, because my mindset is to navigate through conditions and still get results. I have two options every day: performance or excuses – and I never choose excuses because I own it. I will carry the load: Going into every day, I’m aware at least one person on my team might take the day off mentally, and possibly physically.

It will never be me. I will pick up the slack, lead by the right personal example and carry the team on my back if I have to. I’m the leader, and that’s what leaders do. Most leaders develop a game-changer mindset toward the end of the month, when time is running out and their paycheck and reputation are on the line. But if you want jump from being the occasional playmaker to the consistent gamechanger, you have to develop the mindset to bring the necessary toughness, focus and energy to execute incessantly every day. And every day means every day.

DECEMBER 2016

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and drain urgency and killer instinct. I avoid zone busters, and if I slip into one I get out fast. Zone busters include things like bitterness, blame, excuses, revenge, gossip, judging, wrong associations, garbage media, immoral activities, jealousy, envy, self-promotion, selfishness, worry, selfpity, complacency, taking offense and the like. I prove myself over again every day: Yesterday ended last night. I will prepare my mind and prove myself over again today. I won’t borrow credibility nor rehearse hurts from the past. I will bring it all, fully engage and be totally used up by day’s end. I will live with a “stay hungry” red belt mindset. I am responsible: I take responsibility because doing so

DAVE ANDERSON IS PRESIDENT OF LEARNTOLEAD.

← BHPH DEALER

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DEALER PERSPECTIVE

HELP IMPROVE THE PERCEPTION OF BHPH It’s Our Job to Change the Public’s Concept of Buy Here-Pay Here BY HUDSON BIONDO

have recently become more involved with NIADA because Buy Here-Pay Here is the industry I chose to make my career and I want to help change the general perception the mainstream has about the industry in general. The BHPH industry has had its share of bad press – some deserved and some not. But I’m a firm believer that what we do helps the community as a whole, and I want to keep doing all I can to help spread the word that there are plenty of honest, ethical operators in this space. Yes, there are some bad apples in our industry, but what industry is immune from that?

BHPH DEALER

→ DECEMBER 2016

It’s our job to change the public’s concept of BHPH. It starts with getting involved with your state and national associations. At my dealership we have a goal to assist every customer the same way, every time. The customer is not always right, but the customer is always the customer – our customer. Buy Here-Pay Here is a relationship business and your customers need to know they can count on you. We need them and they need us. Our customers need reliable transportation and it is our job to provide it to them. We have to make sure our customers receive assistance if their vehicle needs repair beyond their financial ability to pay, or if they have another financial bump in the road, like a lost job or a medical situation. Here is how we believe you can help your customers (and your dealership) be successful: · Provide your customers with a warranty or give them an option to purchase a service contract. It’s not only good for the customers – that’s how we change the industry perception – it’s also great for your reputation in the community. · Have policies in writing as to how you are going to assist a customer when there is an uncovered repair. Don’t let customers just imagine. Let them know. · Have a plan for how you are going to assist when a customer has a job change that puts him a little behind on his payments. A great way to get started is to know and understand the deficiencies within your operation, then create a strategy for improvement. Here are a few tips on what you can implement in your operation: · Compile a log with all customers who need assistance at the moment, then update it with new ones and remove the ones with a closed resolution. · Separate the log by mechanical and financial issues. Designate the most qualified team associate to handle each matter. · Have a deductible payment plan in place and uncovered repair payment assistance.

DON’T ABANDON YOUR CUSTOMER WHEN HE ASKS FOR ASSISTANCE. THAT’S WHEN HE NEEDS YOU THE MOST. Don’t abandon your customer when he asks for assistance. That’s when he needs you the most. Take great care of him – not just good, but great. Can he get that same customer service at your competition? We strive to answer that question with no, he cannot, because we train everybody on our team to deliver the best customer service experience ever, regardless if they are a sales rep, front desk, cashier, collector, porter, etc. I hope to have brought to the readers some ideas on how to improve the perception of our industry by being the best dealers we can be. Buy Here-Pay Here is what I do every day, and I’m proud to say I’m a Buy Here-Pay Here dealer.

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HUDSON BIONDO IS A BUY HERE-PAY HERE DEALER IN ATLANTA, OPERATING MASTERCARS AUTO SALES. HE IS A PROUD MEMBER OF GEORGIA IADA AND NIADA, SERVES ON THE NIADA BHPH COMMISSION AND BELONGS TO AN NIADA 20 GROUP.

DECEMBER 2016

← BHPH DEALER

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BHPH ADVOCATE

DO YOU GPS? Disclose Use of Payment Assurance Devices BY SHAUN PETERSEN

BHPH DEALER

→ DECEMBER 2016

s a parent of a teenage driver active in a bevy of extracurricular activities, I have to admit it is comforting to know I can activate an app on her smartphone and know where she is at all times. I also have to admit I am glad my parents did not have access to that technology when I was her age. Technological advances of any kind bring with them inherent policy and legal questions that never before had to be considered. The debate surrounding the use of GPS and starter-interrupt devices in automobile financing transactions is no different. On the one hand, industry advocates – including NIADA and our friends at the Telematics Service Providers Association – have been promoting the benefits of those devices, not only for creditors but also for consumers. Certainly, the creditor benefits by knowing it will have easier access to the collateral in the event of a default. But the consumer benefits are much more significant. Consider: The use of GPS/starter-interrupt devices provides immediate benefits to consumers before the device is ever turned on. Consumers often qualify for a better or more reliable vehicle. Creditors are more comfortable with providing consumers greater purchasing power because the risk of not being able to recover collateral in the event of default is diminished. Less risk to the creditor often translates to lower interest rates, higher loan-to-value ratios and longer term notes. After the transaction is consummated, consumers

BHPH ADVOCATE

to retrieve it without the additional expense that often comes with the unknown. Consumer advocates frequently raise concerns that can be lumped into three categories: safety, privacy and lack of disclosure. The advocates assert the use of a starterinterrupt device can disable a vehicle while it is in operation, a myth the industry continues to debunk. The more frequently raised and, quite frankly, more effective arguments from consumer advocates revolve around privacy and lack of disclosure. Advocates are convincing many that neither the existence of the devices nor use of the devices is being disclosed to the consumer. If it is disclosed, advocates claim, the creditor is misrepresenting the uses

of the device. As you might imagine, the debate is moving into the grand chambers of legislatures and the conference rooms of regulators across the country. Currently, several states are considering legislation that would impose significant regulatory burdens on dealers’ ability to use GPS and/or starter-interrupt devices. New Jersey is going so far as to propose a mandatory interest rate reduction of 10 percent if a device is used as a condition of financing. California, though not banning the devices, has imposed specific restrictions on their use, including clear disclosure, a warning 48 hours before use of starter-interrupt technology and providing codes for emergency use for 24 hours. Acting in the role of

consumer protection officers in their states, attorneys general have raised questions and concerns to us as we have interacted with them on motor vehicle-related issues. Lest you think this issue is being debated in the states only, it is also of great interest to the Federal Trade Commission and Consumer Financial Protection Bureau. Seldom does a meeting with those regulators pass that the issue is not broached in one way or another. It would not surprise me in the least to see the FTC or CFPB initiate an enforcement action against a finance company or dealer in which the use of the devices is a major component. So what should you do? If you are actively using

GPS/starter-interrupt technology, you’d better make certain you are disclosing its existence in writing to your customer before you finalize a deal. Your disclosure should include an explanation of how the device will be used, a waiver of right to privacy regarding location of the vehicle, the fact that emergency codes will be provided, etc. Most of all, your written disclosure should include the consumer’s consent to have the device installed and used. Have the disclosure document reviewed by an attorney to ensure compliance. In the meantime, NIADA will continue to advocate for the responsible use of these devices.

DECEMBER 2016

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realize benefits in the event of default that would not be present without the use of such devices. Lines of communication between creditors and consumers are more open. If a vehicle’s starter is rendered temporarily inoperable because a customer is in default, consumers will often cure the default much quicker so the vehicle can be restarted. Compared to the unavailability of the vehicle for up to several days in the event of a physical repossession, consumers can be back on the road much faster. The use of payment assurance devices invariably results in lower repossession costs – costs that ultimately are borne by the consumer. Creditors know exactly where the car is and can dispatch a recovery agent

SHAUN PETERSEN IS NIADA’S SENIOR VICE PRESIDENT OF LEGAL AND GOVERNMENT AFFAIRS.

← BHPH DEALER

MANAGEMENT

PLANNING IS ESSENTIAL

That process requires you to think about every moving part in your business and be honest about costs and your ability to influence various elements of the model. Once you’ve determined the big-picture goal, it is time to develop and implement a budget plan. There are five general steps to doing this: • Develop an operating pro-forma model. • Compare your budget to your own experience and industry benchmarks. • Allow a margin for error. • Review all expenses with a focus on both short- and longterm ROI. • Conduct variance analysis throughout the review period.

The Difference Between Being Prepared And Being Surprised BY DAVID BROTHERTON

e tend to spend so much time working in our business – leading, teaching, coaching and putting out various daily fires – that we struggle to find that extra time needed to work on our business and plan. It’s difficult for an owner-operator to set aside the time from the day-to-day to think about what is coming and the impact it will have on the business. Difficult – but essential. To get the most out of the coming year, you should do more than just think about what you want to accomplish. You should also develop a set of operational plans and a budget to work from for the coming year. Before you can begin developing an annual budget, it is important you start with writing down what you want to accomplish in 2017. Be as detailed as possible in describing the desired outcome as well as identifying the KPIs that drive your goal. In this case, you need to understand what moves what in the BHPH model. Don’t start in the middle. For example, starting with, “I’m going to increase my advertising next year,” isn’t appropriate. You might very well need to increase advertising but that isn’t the starting point. You would start with, “Increase net profit by 10 percent,” or, “Grow by 150 net accounts,” then determine everything involved in making that plan a reality.

DEVELOP AN OPERATING PRO-FORMA MODEL Developing the pro-forma model is the most timeconsuming part of the process because it requires you to develop the initial set of assumptions and examine all of the relationships between expenses and results. I recommend you start with your average expenses and results for 2016 and use them to determine the baseline. That means you should create a working model that approximates your actual results. Keep in mind you are dealing with averages and no model can predict everything – which is why you allow the margin for error. For this to work, it is necessary that you understand just what drives what in the model. For example, the model I use starts out with unit volume and average deal structure. Basically, getting that wrong would pretty much invalidate all of your other efforts, so I start there. The results are carried out to future months and need to make sense from the beginning. From that beginning, you develop the rest of your model accordingly. Assumption

Units Per Month Retail Price

Month

11,995

599,750

Unit Cost

6,125

306,250

Reconditioning

750

37,500

Closing Costs(Tax+Tag+Serv.Cont) $ $ Advertising

1,100

55,000

250

12,500

Sales Commissions

275

13,750

Wholesale Losses/Gains

(1,756) $

Personnel Expense

30,648

(1,756) $ 30,648

(1,756) 30,648

Fixed & Operating Expense

14,898

Direct Expense

23,195

Total Overhead

68,741

Down Payment

1,100

55,000

Net Down

(275) $

(13,750) $

55,000 (13,750)

Amount Financed

11,995

599,750

Finance Charges

4,998

249,891

Total of Payments

16,993

849,641

Term

Mo. Payment

$404.59

Cash Collection Percentage

103.25% $

849,641

$404.59

418

22.00%

1.80%

2.10%

Mo. Pct of Payoff Accounts

0.39%

Income Tax Basis

0.00%

100.0%

Interest Rate on Notes Static Pool Losses Per Month(Gross) Static Pool Losses # of Accounts(Gross)

Credit Line 100.0%

100.0%

Interest Rate on Line

9.0%

Advance Rate(Gross)

50.0%

1,000,000

Eligible Account Base Pct.

Credit Line Limit

BHPH DEALER

→ DECEMBER 2016

MANAGEMENT

COMPARE BUDGET TO BENCHMARKS One of the best ways to “stress test” a pro-forma model is to compare your assumptions and results to national averages. Comparing to industry benchmarks is a wonderful way to test the validity of your model. They aren’t the end-all-be-all but they can help identify where you are, perhaps, being overly aggressive in your assumptions. Look to your own historical percentages as well. After all, no one knows your business as well as you do. It also is important to remind again that you shouldn’t keep doing things the same way and expecting different results.

happen? Will you be able to move the money from other areas in the model? When you spend money, what is the expected return? Doing this part well requires a certain degree of ruthlessness on your part. There can be no sacred cows in the analysis. When people are not performing to standard, you have to either motivate them to better performance, provide the tools and/or training they might be missing or look at trading up for better personnel. What you can’t do in this analysis is tolerate more of the same. Management isn’t exempt from the analysis either. Is management doing its part to train, coach and develop people? If not, the same choices apply here as well. Ultimately, looking for the ROI in every expense helps you identify what your process and team needs.

CONDUCT VARIANCE ANALYSIS Each month’s results should be compared to the budget and the variances analyzed. Every variance should be questioned and, if you are over budget, determine what you need to do to correct the situation by year end. An example of that would be a soft tax season. You might well have to play catchup all year to make up for it. Variance analysis and a working pro-forma can help you determine what you’ll need to do each

month to catch up. Variance analysis can help identify where adjustments are needed. Meet with your senior people each month and share the results. That keeps everyone on the same page working for improvement. It also makes your budgeting process better each year and communicates why you do what you do.

ITEMS TO CONSIDER Here are some items that can really swing a pro-forma analysis: • Post-sale repairs. • Inventory outlook. • Turnover. • Compliance costs. • Technology investments. • Necessary training. • Shifts in repossession rates. • Funding growth. This is by no means an exhaustive list but it should give you a start. BHPH has gotten too big and too complex to operate by the seat of your pants. Planning – and sticking to that plan – requires a lot of soul-searching on your part, but, ultimately, it can make the difference between being prepared and being surprised.

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Once you have that in place and it makes sense, you start with your expectations for 2017. Your fixed expenses will likely remain fixed, so those are easily modeled. Your variable expenses should be looked at either as a per car sold item (sales commissions or recon) or a per active account item (repo collection expense) and modeled accordingly. This sample model summarizes the various expenses but it can be as detailed as you need it to be. It is important that you do not count on a substantial change in results without a substantial change in personnel, investment and/or process. In other words, don’t expect change just because you want it to happen. Lastly, you need to understand which KPIs drive the model and have the greatest impact on results. Consider: • Vehicle purchase price. • Recon per car sold. • Deal structure. • Repossession rate. • Cash collections rate. •A ny “per car” expenses, such as advertising or commissions.

DAVID BROTHERTON IS A MODERATOR/CONSULTANT FOR NIADA DEALER 20 GROUPS. HE CAN BE REACHED AT DAVIDB@NIADA.COM OR (941) 371-7999.

BUILD IN A MARGIN FOR ERROR No budget can perfectly predict every expense item every time. Some things will come up and you will likely have unexpected turnover. Allow for this in your planning and, if you’re planning on growth, think about when you’ll need to bring on additional help. It’s OK to pad an expense or two, but don’t stray too far. The point of the budget is discipline. LOOK AT THE ROI IN EVERY EXPENSE This part can be the most painful, as it forces you to examine and challenge your own decisions. Are you getting an adequate ROI out of every employee? Does a process produce the intended results? Is your advertising working as desired? You also should consider your expectations for change. In particular, what additional investment will be needed to make your desired change DECEMBER 2016

← BHPH DEALER

ALSO INSIDE:

Complete coverage of NIADAâ&#x20AC;&#x2122;s National Leadership Conference and Legislative Summit in Washington D.C. Page 58

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NOVEMBER

2 0 1 6 Volume 45 | Number 11

WHAT’S INSIDE

FEATURES

08 10 12 14 16 18 20 22

24 2016 NAAA Convention Preview The NAAA Convention joins Used Car Week’s

National Remarketing Conference to offer more educational content.

26 Auction Perspectives Incoming NAAA president Jerry Hinton, predecessor Mike Browning and other experts examine the state of the auto auction industry.

36 A Tool Kit ForWholesale dealers looking for a better, more efficient way to

IN EACH ISSUE

source inventory – and who isn’t? – online channels and technology tools can be the answer.

6 Frontline

44 Automatic While technologySuccess can be daunting, automating 13

A federal appeals court rules the CFPB’s structure unconstitutional; CPO sales for the third quarter were the second-highest ever; a study finds orange cars retain their value more than any other color; a news outlet finds the federal government is selling vehicles with open recalls; Reynolds and Reynolds acquires Wolters Kluwer’s indirect loan origination solutions; and more.

key workflows can create a more efficient dealership – and a healthier bottom line.

52 Making Technology Work Daily Gameplan’s Mark Bergeron cautions that even the most advanced tech tools won’t get results if dealers don’t address the humans using them.

62 Event Spotlight

NIADA’s inaugural National BHPH Summit, coming up next month, is poised to become the Buy Here-Pay Here world’s biggest event of the year.

58 Head the Table NIADA’s of influence in Washington grows as the 2016 National Leadership Conference and Legislative Summit sets records for attendance and impact.

The Road Ahead Washington D.C. Update Legal Musings FTC Perspectives Joe’s Garage Industry Insider Driving Traffic Association News

ONLINE Read us online at:

www.usedcardealermagazine.com Click on ads to link directly to their website. Visit us on Facebook and LinkedIn

FEEDBACK

Used Car Dealer Wants To Hear From You. Tell Us What You Think! Used Car Dealer encourages its readers to send comments, opinions and suggestions about the publication for reprint. Letters can by emailed to editor@ niada.com. Include your full name, address and phone number. We are unable to publish all letters and may edit letters for length and clarity. This is a great opportunity to hear back from our readers on what you think about the articles and what topics you would like to see covered in future issues.

52 4

/ NOVEMBER 2016 / WWW.NIADA .COM

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The Official Magazine of

NIADA SERVICES BOARD MEMBERS 2O16 - 2O17 CHAIRMAN Billy Threadgill billythreadgill@netzero.net VICE CHAIRMAN David Andrews dandrews@cityllc.com PRESIDENT Steve Jordan steve@niada.com SECRETARY/TREASURER Sandra Moss sandrafmoss@yahoo.com BOARD MEMBER Louis Tedeschi aspided@aol.com BOARD MEMBER Dan Reel dan@reelsauto.com BOARD MEMBER Luke Godwin luke@godwinmotors.com NIADA EXECUTIVE COMMITTEE 2O16 - 2O17 CHAIRMAN Frank Fuzy centurymotorscar@aol.com PRESIDENT Billy Threadgill billythreadgill@netzero.net PRESIDENT-ELECT David Andrews dandrews@cityllc.com CEO Steve Jordan steve@niada.com SENIOR VICE PRESIDENT Andrew Gabler writeitupandy@gmail.com REGION I VICE PRESIDENT Louis Tedeschi aspided@aol.com REGION II VICE PRESIDENT Billy Graham billy@grahamautos.net REGION III VICE PRESIDENT Gordon Tormohlen goodpeople@aeroinc.com REGION IV VICE PRESIDENT Marc Powell marc@recarnationabq.com SECRETARY Joe McCloskey joe@bigjoeauto.com TREASURER Scott Allen scotta@goodwheelsgooddeals.com USED CAR DEALER MAGAZINE PUBLISHER EDITOR V.P. OF MEDIA SERVICES SENIOR ART DIRECTOR PRINTING

Steve Jordan Andy Friedlander Chase Tidwell Christy Haynes Publishers Press

A Division of NIADA Services, Inc. Used Car Dealer (ISSN 0279425X) is published monthly with one additional special issue, Used Car Industry Report, that is published in May by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. Annual subscription rates for NIADA members: $8 per year. Non-member subscriptions $80 per year. Periodicals postage paid at Arlington, TX, and at additional offices. POSTMASTER: Send address changes to Used Car Dealer, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Used Car Dealer or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as member of NIADA, does not constitute an endorsement of the products or services featured. Copyright Â© 2016 by NIADA Services, Inc. All rights reserved.

ATLANTA, GA Visit this link and register today! www.niadacmd.com

WWW.NIADA .COM / NOVEMBER 2016 /

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Frontline November 2016

ADESA NAMES NEW DIRECTOR OF DEALER RELATIONS

National auction operator ADESA has promoted Trent Strauss to director of dealer relations, the company said. Strauss, who has served as district inside sales manager in Colorado Springs since joining ADESA in 2010, will lead the local auction dealer relations teams throughout the U.S. and oversee deployment of ADESA’s national sales and dealer relations strategy. “Trent’s career focus on customer service excellence and sales team coaching will be invaluable to our dealer sales professionals, who are dedicated to serving dealers’ wholesale auction needs,” vice president of dealer services Steve Dudash said. “His expertise in communication strategies and creating solutions for business projects will enable us to zero in on delivering a premium customer experience.”

REYNOLDS AND REYNOLDS ACQUIRES WOLTERS KLUWER ASSETS

Reynolds and Reynolds Co. last month completed its purchase of Wolters Kluwer’s indirect loan origination solutions in a $36 million cash transaction. The companies first announced they had agreed to the deal in September. The acquisition includes Wolters Kluwer’s AppOne software, risk mitigation services and bankers systems, as well as Wolters Kluwer’s preprinted and electronic sales and lease forms, which, Reynolds and Reynolds said, are similar to Reynolds’ LAW brand product line. “We see this step as another strategic investment in Reynolds Document Services and in the capacity we have to serve automotive retailers and lenders with a breadth of documents and compliance services,” Reynolds director of corporate communications Thomas Schwartz said. “Overall, the new businesses complement our existing expertise and strengths in documents and compliance services. At the same time, it expands the customer set and markets we can serve.” Wolters Kluwer said the sale will allow it to focus on what CEO Richard Flynn called “our core regulatory compliance business,” serving banks, credit unions and mortgage lenders.

U.S. GOVERNMENT SELLING RECALLED CARS

While some in the federal government call for a blanket ban on the sale of vehicles with open recalls, the government is selling vehicles with open recalls. An investigation by online news site Circa found the federal government’s General Services Administration, which auctions off cars and trucks no longer needed by various federal agencies, includes recalled vehicles among its auction inventory. In August, 427 of the 2,037 cars for

sale by the GSA had open recalls, Circa reported. Among the recalled vehicles were those with steering issues and the potentially deadly Takata airbag defect, the report said. A GSA spokesperson told FoxNews. com that the recalls are not specifically disclosed to buyers but noted, “GSA is in full compliance with the laws and regulations regarding auto auctions. “The agency notifies all auction

bidders and successful buyers that there may be outstanding recalls on the sale vehicle, and to contact either their local dealership or use the National Highway Traffic Safety Administration’s website to check the vehicle’s recall status.” Consumer advocate Clarence Ditlow of the Center for Auto Safety said he was shocked by the revelation. “Here they’re doing themselves what they say others shouldn’t do,” Ditlow said. “That’s just hypocrisy.”

DEFAULT RATES UP, BUT MARKET STABLE

Auto finance delinquencies have risen this year, but experts say the market remains stable and in good shape. Reports from S&P/Experian and the American Bankers Association showed delinquencies were up slightly in the second quarter of 2016 and rose again in August. But analysts said those increases were not a cause for concern. “The overall financing environment remains extremely favorable,” Cox Automotive chief economist Tom Webb said. “From the dealer standpoint, the availability of financing is not an issue at all. From the lender standpoint, although delinquencies are ticking up a little bit, they’re not overly alarming.” David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices, agreed. “Despite small monthly movements in consumer credit defaults, the overall default rates are stable and close to the lowest levels since shortly before the financial crisis,” he said. “Consumer credit – bank cards and auto loans – grew before, during and after the recent recession and is currently at an all-time high.”

ORANGE YOU GLAD YOU BOUGHT AN ORANGE CAR?

If you’re looking for a car that will retain its value, you might want to think orange. According to a study by automotive search engine iSeeCars, a vehicle’s color has a significant effect on its retained value. The study, which analyzed more than 1.6 million model year 2013 vehicles sold over the past year, found orange and yellow cars depreciated the least during the first three years of ownership. Orange vehicles depreciated 21.6 percent, followed by yellow (22 percent) and green (24.5 percent), well below the average 29.8 percent depreciation for all vehicles in that span. The most popular colors – black (30.2 percent), white (29.5) and gray (29.5) – were all close to the average. Gold cars had the worst threeyear depreciation at 33.5 percent. iSeeCars CEO Phong Ly said those numbers held up over most vehicle segments. “The more unusual colors are not as readily available, yet they are popular with enough car buyers to create a demand that directly affects resale value,” Ly said. “From a seller’s point of view, there may be more pricing power. From a buyer’s point of view, if that’s what they’re looking for, they may be willing to pay a bit more for it.”

/ NOVEMBER 2016 / WWW.NIADA .COM

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STUDY: SHOPPERS NOT INFLUENCED BY SOCIAL MEDIA

CFPB’S STRUCTURE RULED UNCONSTITUTIONAL

A federal appeals court issued a ruling declaring the current structure of the Consumer Financial Protection Bureau unconstitutional. In an Oct. 11 ruling, the U.S. Court of Appeals for the District of Columbia Circuit said the CFPB’s structure violates the Constitution’s separation of powers because the bureau’s lone director is not sufficiently answerable to the President. The court’s opinion relied on the historical practice of independent agencies being headed by multiple commissioners or board members, and raised concerns of the threat to individual liberty posed by an independent agency led by a single director with little accountability to the President. “We applaud the court for recognizing the overreach created when too much power is vested in an agency virtually unaccountable to anyone,” NIADA CEO Steve Jordan said. “NIADA supports a common sense approach to consumer protection and fair dealing in the financial marketplace, but the current structure of the CFPB accomplishes neither.” The court’s decision allows the CFPB to continue operating, but orders it to operate as an executive agency like other executive agencies headed by a single individual. During NIADA’s National Leadership Conference and Legislative Summit in Washington D.C., association members met with members of Congress to advocate for passage of the Financial CHOICE Act, which would restructure the CFPB to be led by a bipartisan, five-member commission like most independent federal agencies. The bill would also subject the CFPB’s budget to Congressional oversight through the appropriations process. NIADA encourages all of its members to contact their Senators and member of the House of Representatives and ask them to vote for the Financial CHOICE Act.

Q3 CPO SALES SECOND-BEST EVER

Sales of certified pre-owned vehicles were down slightly in the third quarter of 2016 – but only because secondquarter sales were the highest ever. In fact, the third quarter CPO sales figure of 675,725 units, compiled by Autodata

While social media is being used by more consumers in their car-shopping search, its influence is minimal, according to a study, by J.D. Power. J.D. Power’s 2016 New Autoshopper Study found 22 percent of Internet car shoppers use a social media site as a source during their search, up from 16 percent in 2015. But only 13 percent of those shoppers who use social media said the information influenced their purchase decision, and a mere 2 percent said a social media site was the “most useful site” they visited. “Social media plays a large role in many consumers’ lives, so it’s not surprising that it’s one of the tools they’re using during the vehicleshopping process,” J.D. Power vice president of automotive retail Mike Battaglia said. The study showed YouTube (13 percent), DealerRater (7 percent) and Facebook (5 percent) were the most popular social media sites used by Internet auto shoppers. “Social media platforms aren’t as useful as automotive shopping websites for automotive information, but they do serve the needs of consumers for unbiased dealer reviews, affirmations from other vehicle owners, accessing automotive-related videos and exchanging ideas and opinions with friends and family members,” Battaglia said.

WHAT’S NEW ON NIADA.TV Check in at NIADA.TV in late November to catch up on the happenings at Used Car Week, which runs Nov. 14-18 in Las Vegas.

We’ll have 19 educational sessions on various channels encompassing all four of the Used Car Week Conferences – the National Remarketing Conference/NAAA Convention, the CPO Forum, the SubPrime Forum and the Re3 (Recovery/Repossession/Remarketing) Conference.

Stay tuned!

Corp., was the second-best in history, just 0.4 percent off the record of 678,169 – which, of course, was set the previous quarter – and 3.4 percent better than Q3 of 2015. Those numbers are why Cox Automotive chief economist Tom Webb said he expects CPO sales for the year to surpass the record of 2.55 million units set last year. Webb projected 2016 sales to reach 2.7 million and perhaps approach 2.8 million units. That would require another record or near-record in the fourth quarter – Autodata showed CPO sales through the third quarter at just over 2 million units.

ADESA chief economist Tom Kontos said the increasing number of off-lease vehicles hitting the used car market will continue to drive CPO sales up. “Definitely certified pre-owned sales have been another really positive factor in the market out there, specifically with off-lease volumes because it’s a very certifiable unit,” Kontos said. “So with the growing awareness – both among dealers to pitch CPO sales and by consumers to be attracted to those types of sales and be aware that’s an option for them – that’s been a real positive on the demand side for used car sales.” WWW.NIADA .COM / NOVEMBER 2016 /

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THE ROAD

AHEAD

Our Commitment to the BHPH Dealer Three years ago, NIADA made a commitment. The commitment was to become a stronger advocate for a large and vital segment of the independent used vehicle industry – Buy Here-Pay Here dealers. The first step in that commitment was the formation of a Buy Here-Pay Here Task Force to discuss and act on issues specific to the BHPH sphere. That task force has since evolved into a permanent BHPH Commission, which has emerged as a strong and unified voice speaking on behalf of BHPH dealers nationwide.

That voice has made a difference. In Oregon, for example, the BHPH Commission played large role in defeating legislation that would have put severe restrictions on BHPH dealers, including rate caps, a ban on GPS and starterinterrupt devices and strict regulations of repossessions. Late last year, NIADA took our commitment to BHPH a giant step further with the acquisition of the assets of Leedom and Associates, and the addition of respected BHPH educator Chuck Bonanno to head those assets. That move added another facet to NIADA’s BHPH mix – a powerful educational component in the form of BHPH 20 Groups and Boot Camps as well as a vastly expanded agenda of BHPH content at the NIADA Convention and Expo and BHPH Dealer magazine, which currently runs as a bimonthly supplement to Used Car Dealer and has already become immensely popular in its own right. Now NIADA’s ongoing commitment to Buy Here-Pay Here is about to go to yet another level. Next month, NIADA will hold our first BHPH Summit – it’s scheduled for Dec. 6-8 at the Embassy Suites DFW Airport North in the Dallas area. It’s yet another addition to an NIADA toolbox that continues to expand our level of service to the BHPH industry. Every bit of that commitment I’ve been talking about is being poured into this event. It will be hosted by Bonanno, whose extensive BHPH experience and expertise is respected throughout the industry, along with NIADA 20 Group moderator/consultants David Brotherton and Mark Dubois, and they have included information about every aspect of a

We want to help every BHPH dealer become stronger, more efficient, more compliant and more profitable. We want to give them the latest information, the best tools and the brightest ideas to make that happen. BHPH operation, from sales to underwriting to collections to compliance to service to anything else you can name. Because of that, the BHPH Summit isn’t just for dealership owners and dealer principals. The entire dealership staff can take something valuable back from this event, and we’re encouraging dealers to bring their managers, salespeople, service staff and collectors by offering discounts for dealerships that bring multiple attendees. For details and to register, visit www. niadabhphsummit.com. While the scope of this event is large, the idea behind it is simple. We want to help every BHPH dealer become stronger, more efficient, more compliant and more profitable. We want to give them the latest information, the best tools and the brightest ideas to make that happen. We are committed to make that happen. That’s part of our commitment to all of you in the Buy Here-Pay Here industry. The other part, as embodied by the BHPH Commission, is to be as strong an advocate for BHPH-specific issues as we are for the independent used vehicle industry as a whole. We want to be the voice of the BHPH dealer, just as we are the voice of the independent dealer. Speaking of that, NIADA and its members certainly made their voice heard in Washington D.C. during the annual National Leadership Conference and Legislative Summit in September. Now in its fourth year back in D.C., that event was the biggest so far, drawing a record number of dealers to the nation’s capital and making its most significant impact yet. In all, more than 175 dealers and industry leaders met with 90 members of Congress and legislative staffers to educate them on how our business works and what it’s all about, and to discuss issues that affect independent dealers and their customers. We have complete coverage of that event in this issue of Used Car Dealer, beginning on page 58. Check it out. And if you haven’t been to the NLC, consider making the trip next year. It’s your chance to meet face-to-face with legislators and their staff, to show them the face of NIADA, to tell them your story as an independent dealer and to let them know how what they do in Congress affects your business in the real world. Steve Jordan is executive vice president of NIADA, president of NIADA Services, Inc., and publisher of Used Car Dealer magazine. He can be reached at steve@niada.com.

/ NOVEMBER 2016 / WWW.NIADA .COM

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16-M

WA S H I N G T O N U P D AT E

Washington D.C. Update Shaun Petersen

Sante Esposito

Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA senior vice president of legal and government affairs Shaun Petersen and NIADA lobbyist Sante Esposito of Key Advocates.

REGULATORY REPORT BY SHAUN PETERSEN CONSUMER FINANCIAL PROTECTION BUREAU The CFPB finalized an enforcement action against online lender Flurish, Inc., doing business as LendUp, for failing to deliver the promised benefits of its products. The company marketed its loans as a way for consumers to build credit and improve credit scores, and offered those who participated in the program the ability to progress to loans with more favorable terms, including lower rates and longer repayment periods. The CFPB said those claims were false – consumers could not improve their credit because Flurish failed to report credit information to credit reporting agencies. The CFPB ordered the company to provide more than 50,000 consumers with approximately $1.83 million in refunds and pay a civil penalty of $1.8 million. DEPARTMENT OF JUSTICE Wells Fargo settlement: DOJ reached a settlement agreement with Wells Fargo Bank N.A., doing business as Wells Fargo Dealer Services, over allegations it violated the Servicemembers Civil Relief Act by repossessing 413 cars owned by protected servicemembers without obtaining a court order between Jan. 1, 2008 and July 1, 2015. The agreement requires Wells Fargo to pay $10,000 to each affected servicemember, plus any lost equity in the vehicle with interest. Wells Fargo also must repair the credit of all affected servicemembers and pay a $60,000 civil penalty.

Auto loan scheme: Three people were convicted of money laundering for participating in a 2011 auto loan fraud scheme centered in Houston. One of the men claimed to be a used car dealer who sold luxury vehicles through his alleged Houston dealerships “EZ Auto Group” and “1st Choice Motors.” The alleged dealerships, however, existed only as websites. They had no physical existence, owned no cars and made no actual auto sales. The other two conspirators acted as “straw buyers,” and applied to lenders for auto loans in order to purchase nonexistent used Mercedes and Lexus vehicles from the supposed dealerships. Once the loans were funded and the funds had been deposited into the fake dealerships’ bank accounts, the phantom dealer kicked back a portion of the loan funds to the straw buyers, who then defaulted on their loans. The straw buyers applied for 16 fraudulent auto loans with a combined value of almost $700,000. FEDERAL TRADE COMMISSION The FTC filed a lawsuit against nine Los Angeles-area auto dealerships and their owners related to spot delivery – or, as the FTC called it, “yo-yo” financing. The FTC claimed the dealers used deception or other unlawful pressure tactics to coerce consumers who had signed contracts and driven off dealership lots into accepting a different deal.

The FTC also alleged the defendants packed unauthorized extra charges for aftermarket products and services, adding extended warranties, GAP and maintenance or service plans and charging customers without their consent, falsely claiming the products were required or free. The dealerships allegedly enticed consumers – particularly financially distressed and non-English speaking consumers – with print, Internet, radio and television ads that made an array of misleading claims, including that vehicles were generally available for the advertised terms and consumers could buy vehicles for low prices, finance with low monthly payments or make low down payments. The FTC claimed the defendants use phony online reviews to tout their dealerships and discredit negative reviews that highlighted their allegedly unlawful practices. With respect to spot delivery, the defendants allegedly represented falsely that consumers were required to sign a new contract with different terms. In other instances, the defendants allegedly told consumers who completed finance contracts that the contracts were cancelled and falsely represented that the dealerships were permitted to keep consumers’ down payments or trade-ins. When consumers requested compliance with the terms of the contract, the defendants supposedly falsely represented that consumers would be liable for legal action, including lawsuits, repossession or criminal arrest for a stolen vehicle.

LEGISLATIVE REPORT BY SANTE ESPOSITO S.2663, REFORMING CFPB INDIRECT AUTO FINANCING GUIDANCE ACT NIADA continues to advocate for Senate passage of S.2663, which would rescind the auto financing guidance action taken by the CFPB in March 2013 and provide for a more transparent and accountable process for addressing the issue. On Sept. 13, NIADA legislative committee chairman Henry Mullinax, senior vice president of legal and government affairs Shaun Petersen and Key Advocates met with the offices of Sen. Jon Tester (D-Mont.) and Sen. Bob Menendez (D-N.J.) in support of the legislation. The following week, NADA held a series of supportive meetings on the Hill with its membership. And NIADA followed with its Day on the Hill on Sept. 28. Coupled with those meetings was a key

fundraising event co-hosted by NIADA and NAAA, as well as various interaction events with key members of Congress. The strategy is to keep the pressure on the Senate to pass the bill this year, or to keep pushing on the request made by NIADA and NAAA for the Senate to convene a series of meetings with the CFPB and stakeholders to explore the possibility of an administrative solution to the issue. CFPB/FY17 APPROPRIATIONS PROCESS Prior to the pre-election recess, Congress passed a “clean” continuing resolution to fund the government until Dec. 9 at the current levels. “Clean” means there were no new major policy issues included (except for Zika and natural disaster funding). It also means several provisions intended to curb the CFPB’s authority, which were

included in the fiscal year 2017 Financial Services and General Government Appropriations bill that passed the House in July, are on hold pending final resolution of the appropriations process in December.

/ NOVEMBER 2016 / WWW.NIADA .COM

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LEGAL MUSINGS

FTC Says Dealers Put Customers on a Yo-Yo There was a point in time where mastering yo-yo tricks was one my life’s ambitions. I would roam the sidewalks of my little town with a friend trying to walk the dog and rock the baby, all while trying to go around the world. There might have been a few discussions among us as to which Smothers brother we wanted to be. I suspect if you asked an average 7-10 year old if she has ever played with a yo-yo, you would get a blank stare as she pulled her electronic device of choice to Google “yo-yo,” then post to social media how some dinosaur was inquiring about a toy from the Jurassic period. Though yo-yos are no longer a toy of

choice, the Federal Trade Commission believes yo-yoing is alive and well – in automotive financing. One of the ways government regulators and consumer advocates tell their story is to create clever phrases to describe practices in a particular industry with which they have concerns or outright objections. Obviously, those phrases paint a practice of the business victimizing a consumer. What the FTC calls “yo-yo financing” is commonly known to you and me as spot delivery. Spot delivery has long been a concern for the FTC, state attorneys general and consumer advocates. I have personally spoken with many of them about the practice. The FTC has put spot delivery practices squarely in its crosshairs with a recent lawsuit against nine related Los Angeles-area dealerships. In the complaint filed in federal court, the FTC said Sage Auto Group and its affiliates signed purchase and financing agreements with consumers, then let them drive their new purchases off the lot. The dealerships’ contract contains terms addressing spot delivery, providing the dealerships with a right to cancel the contract if they are unable to assign financing. The contract says the dealership must give the consumer written or actual notice of canceling the contract because of an inability to assign to a thirdparty financier within 10 days of the initial contract date. The contract also provides that if the dealership cancels the contract, the dealership must return all consideration received, including the down payment and trade-in vehicle. There is certainly nothing illegal about the practice described above. However, the FTC alleges the dealerships went way off that script. According to the FTC, if the dealerships could not assign the financing – and in some instances, the FTC suggests, the dealerships purposely elected not to – the dealerships would

What the FTC calls “yo-yo financing” is commonly known to you and me as spot delivery. call the consumer and indicate financing fell through. The FTC claims at that point, the dealerships falsely told consumers they were required to sign a new financing contract, often with less advantageous terms. The FTC also asserts that in some cases, the dealerships falsely told consumers that if they did not agree to new terms, they would lose their down payment or trade-in. To compound things, in the FTC’s eyes, the dealerships allegedly refused to cancel the contract according to the spot delivery terms. And in some instances when consumers resisted demands to sign a new contract, the FTC suggests the dealerships threatened to report their cars as stolen or repossessed and have the consumers arrested and prosecuted. If any of those allegations are true, you can see why the FTC would paint the consumer as a yo-yo bouncing up and down on the string. And you can see why consumer advocates might scream from the rooftops that spot delivery is facially deceptive and should be banned. Luckily, the FTC and most state attorneys general have not taken that position. In 2012, 32 state attorneys general sent a letter to the FTC asking the commission to regulate spot delivery practices. They offered seven suggestions to regulate spot delivery practices including: •R equiring dealers to retain consumers’ trade-in vehicles until financing is approved. •P recluding dealers from threatening to file or filing a theft or other police report due to a consumer’s refusal to return a vehicle to the dealership if financing is not approved. •R equiring dealers to offer consumers either a complete unwinding of the deal or seeking credit under other terms, with the consumer having the choice to decide which of those alternatives to accept. •B arring dealers from keeping deposits/ down payments when a deal falls through. While those provisions are not necessarily mandated in a formal regulation, they are certainly best practices for any dealers engaged in spot delivery. If you’re not doing them, be ready for regulators or plaintiffs’ attorneys to do the Atom Smasher on your wallet.

BY SHAUN PETERSEN

Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

/ NOVEMBER 2016 / WWW.NIADA .COM

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FTC PERSPECTIVES

Do’s and Don’ts of the VW Settlement As the historic Volkswagen settlement goes into effect this fall, hundreds of thousands of former VW TDI owners are going to spend their settlement money to replace their old cars. If you pitch your cars to those people, you’ve got to be honest about the settlement and your offer. FTC lawyers have already begun investigations into dealerships engaged in deceptive sales pitches. In addition, some people might be aiming deceptive sales pitches at your dealership. So it’s important for you to have the facts. Here are the basics. Under a partial settlement filed in June by the FTC, Volkswagen is agreeing to provide up to $10 billion to owners and lessees of VW and Audi 2.0 liter diesel cars it claimed had low levels of harmful emissions - but did not.

You can hire someone to help you navigate the buyback process, but you might be paying a premium for very little value. First determine whether you can handle the process yourself.

It’s the largest false advertising case in FTC history, affecting nearly 500,000 cars. VW also settled cases with a group of private claimants that requires the same payouts. The court approval process is underway. While nothing is guaranteed, we expect the court to approve and enter both settlements this fall. Once that happens, owners of Volkswagen and Audi 2.0 liter TDI diesel vehicles, including Jettas, Passats, Beetles, Golfs and Audi A3s, will have the option of selling their cars back to VW or getting an EPA-approved modification to their car (if available) plus some cash. To participate in the settlement, owners must apply at vwcourtsettlement.com. While there are other options available, we anticipate most owners will choose the buyback, and expect many to do so quickly. Anyone who takes the buyback should get enough money to buy a replacement car similar to the one they thought they had bought. The FTC negotiated a buyback amount based on the retail value the cars had in September 2015, before the scandal undermined their value, plus additional money to cover the time and effort of turning in the car and buying a replacement and other compensation. That means hundreds of thousands of people will need a car, and will have just received a significant amount of money. As used car sellers, you have an opportunity to market to a large group of potential customers. Some of you will take advantage of that opportunity through creative and competitive marketing campaigns. However, you cannot make misleading advertising pitches. If you do, you could face an FTC or state attorney general investigation. Even if you don’t come right out and say something false, it is still against the law to mislead reasonable consumers through innuendos and half-truths. Also, you are responsible for advertising pitches made by ad agencies or others acting on your behalf. Here are some simple rules to keep in mind: DO: Market to people who might be selling their cars back to VW through the settlement. You can offer deals to people who received buybacks. DO: Encourage anyone who might be eligible for relief under the settlement to

visit vwcourtsettlement.com and enter their VIN numbers to see what their options are. DON’T: Falsely claim or imply in any way that your dealership has any “official,” “authorized” or any other role in the settlement. For example, DON’T set up websites with names that imply a relationship with the settlement, or send out flyers claiming any relationship with the settlement. DON’T: Offer to “buyback” VW TDI cars from consumers as part of a deal on a car. The word “buyback” has a special meaning related to the settlement. DON’T: Purchase an eligible 2.0 liter VW TDI car from a consumer unless you are certain he has visited vwcourtsettlement. com, understands the amount he could get through a buyback in the settlement and still would prefer to sell you the car – and you feel confident you can later demonstrate all of that to a curious state or federal regulator. We will have access to all buyback data and will be investigating suspicious transactions. DO: Know your own rights under the settlement. If you are not a VW or Audi dealership and you have eligible cars on your lot, you may receive a buyback under the settlement. To find out, go to vwcourtsettlement. com and enter the VINs of your cars. If they are eligible, you could be entitled to a full or slightly reduced buyback, depending on when you purchased them. DO: Look out for deceptive pitches by others. Be extremely skeptical of anyone who contacts you claiming to have an official role in the settlement or directly offering you a buyback. With rare exceptions for certain fleet operators, no claims administrator or VW representative will contact you. You must apply for the settlement through the official website. We have already seen deceptive mailers to dealers seeking to “buy back” cars “under the settlement” for far less than they are worth. You can hire someone to help you navigate the buyback process, but you might be paying a premium for very little value. First determine whether you can handle the process yourself. Finally, if you have any suspicious activity, either aimed at you or in deceptive marketing by a competitor, please report it at FTC.gov/complaint.

B Y L E S L E Y FA I R

Lesley Fair is a senior attorney with the Federal Trade Commission’s Bureau of Consumer Protection and has represented the FTC in deceptive advertising investigations. She now specializes in business education and compliance.

/ NOVEMBER 2016 / WWW.NIADA .COM

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JOE’S GARAGE

Innovate or, ‘Bye!’ Going, going, gone! Blackberry, Motorola, Woolworth, Eastern Airlines, Blockbuster, Circuit City, etc. etc. etc. How many other major companies can you think of that were once king of the proverbial hill? We’re talking household names here. What happened? I’ll tell you what happened.

Great talent wants to work with and for great companies. It’s hard to find winners wanting to sign up for a losing ball team. Good companies always attract good people.

They failed to innovate and adapt to changing markets. While it’s easier to blame a change in consumer spending habits or a challenging economy, the fact remains: Any company that operates under the status quo is a company that is sure to go. Just like an independent dealer who fails to find ways to transact business more efficiently and in a more consumerfriendly way, it will soon find its way among the obsolete. Dealers who insist “the old ways are still the best ways” or “you’ve just got to keep doing your job and doing what you know you need to do” will soon find themselves dying of self-inflected wounds. I recently had an opportunity to sit among a group of franchised dealers as they discussed some of the challenges they feel they face in the current economy. I was hoping to learn new, out-ofthe box-thinking strategies but soon found myself listening to many of the same old solutions – which really don’t solve anything. Where an independent dealer might blame a bank for not getting a deal financed, or perhaps throw blame at the auctions for “ridiculously high prices,” the franchised dealers were quick to blame their manufacturer for failing to provide better and lower interest rates for consumers. They spoke of the manufacturer not offering rebates or incentives to the dealers and, of course, the current leasing programs offered just weren’t good enough. Because I was a guest, I was very limited in my ability to openly participate in their discussion, so I was forced to bite my tongue most of the time. It was only after they had exhausted themselves that one dealer turned to me and said, “Joe, you got any ideas or comments you would like to share?” I said thank you, and, yes, I would like to share a few things. I’m guessing a few who were in that room are sorry I was asked for my input. I stood and said, “First, thank you for permitting me to sit in on this meeting. Second, stop blaming the manufacturer for your lackluster performance.”

Any company that operates under the status quo is a company that is sure to go. I shared with them the same advice I share with you: You cannot blame others for your failures. As an entrepreneur, it is your personal responsibility to work around the challenges every business faces. Keep peeling back the onion of the problem until you find the cause, then take corrective actions to solve the problem. Stop throwing money at a problem and start throwing solutions at it. If it’s still taking you four hours to sell a vehicle in a market that is rapidly moving to a forty-five minute sale and delivery process – because that is what the automobile consumer wants – then you, too, will be on the endangered car dealer species list. If you’re still trying to maintain outlandishly high gross profits on the sale of your used vehicles in an efficient marketplace that is now selling vehicles at market value prices, you will soon find yourself among the likes of Borders Books or Hollywood Video stores. If your sales staff isn’t knowledgeable about the vehicles you sell or have access to, or if your staff isn’t consistently friendly and helpful, how can you expect to compete with dealers who can provide such salespeople and exemplary service? It is easy enough to blame the lack of available talent in your market, but is the problem that available talent in your market is unwilling to work in an environment that’s attempting to operate under the philosophy of the 1960s? Great talent wants to work with and for great companies. It’s hard to find winners wanting to sign up for a losing ball team. Good companies always attract good people. Are you still only willing to compensate your sales and management team solely on gross profit when gross profits on used vehicles have declined in the current efficient marketplace? Are high gross profits limiting your ability to capture more market share, which ultimately would lead to greater total gross profits, F&I profits, an opportunity for more trades and the opportunity to capture service business? Ultimately, the decision you make to innovate, adapt and focus on the ultimate consumer purchase experience will determine whether or not you fly high on the wings of success or say bye-bye to the opportunity to be among the independent dealers in this growing and profitable industry.

B Y J O E L E S C O TA

Joe Lescota, a veteran of more than 25 years in the automotive industry, is NIADA’s director of dealer development and instructor for NIADA’s Certified Master Dealer program. He can be reached at joe@ niada.com.

/ NOVEMBER 2016 / WWW.NIADA .COM

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I N D U S T RY I N S I D E R

Make Video Part of Your Merchandising Strategy Potential customers are looking at your dealership and your competition for reasons to pick one over the other, and they’re making those decisions quickly. According to J.D. Power, in-market shoppers are visiting fewer dealerships than ever – 1.4 down from five – and arrive on the lot more informed, thanks to extensive car shopping research online. That means your website needs to be as engaging and informative as possible. Dealership-shot inventory video is one of the best digital tools you can use to increase shopper engagement on your website, serving as a bridge that moves potential customers from behind their screens into your showroom.

Let’s learn how to construct your website’s inventory video experience, learn about your customers’ online needs and leverage video’s capabilities to build time on-site, nurture trust and entrench itself as an integral part of your social media strategy. Here’s how to get started. Start with sound quality: Just because you’re shooting video doesn’t mean you don’t have to consider how it sounds. Poor audio quality is going to cause your viewers to bounce – and probably discourage them from continuing down the road to the sale. Focus on audio quality first before you begin with camera work. Decide if you are in the market for a wireless or a wired microphone – either will do. A smartphonecompatible microphone is best, since it integrates with your mobile device and all of the video editing tools available through it. Wired mics are great if you’re shooting video yourself, but the wireless variety is best if you’re shooting as a team. Keep it short, sweet and pretty: Start with a manageable scope to keep your video strategy achievable. Keep the videos on each of your vehicle models to less than two minutes. According to a 2015 Cox Automotive Consumer Video Research Study, you’ve lost your audience with anything over three minutes. Some things to consider when shooting: •G et some wide-angle shots of the whole vehicle at the beginning or end of the video. Shoppers want to see the whole car. •A little planning goes a long way. Decide on your positioning and movement throughout each video ahead of time to allow your camera operator to easily follow you when shooting. For example, begin with the exterior front to back, then move to the interior. •K eep the camera as steady as possible. You might consider picking up a smartphone stabilizer. • I f it’s a sunny day, shoot in a shaded area or keep the sun to either side of you so you’re not shooting directly into the sun and you’re not seeing the camera operator’s shadow in the video. Make a YouTube channel for your dealership: It’s the easiest way to distribute your dealership videos. Since there are plenty of blogs and videos with instructions on creating a

Video gives you loads of data you can use to gauge your videos’ impact. YouTube channel and uploading videos, we don’t need to go into detail here. But basically, using YouTube to host your videos starts with a unique Google account for your business, an appropriately named channel, and an on-brand profile picture and channel art. Consider: •A dding a quality image to the header, or channel art, of your YouTube profile. • I ncluding a relevant, on-brand profile image, or channel icon. •F illing out any information about your dealership and why customers should view your videos. • I ncorporating your dealership’s value proposition. Why should customers buy a car from you? Use analytics to evaluate your videos’ performance: Video gives you loads of data you can use to gauge your videos’ impact. Among the most useful: •T ime on page, lead generation, phone calls, bounce rate and exits. •O verall website performance in terms of time on site, average VDP views per visitor and any other key metrics for your business. •S tyle and length of video your viewers were most engaged with (for those dealers using YouTube and its audience retention reports). Think about polling your customers to see where they’re getting their information. You know customers are arriving at dealerships unannounced – meaning no phone call or form submission. Odds are they are doing most of their research prior to their surprise arrival, most likely on your website. Ask them if they viewed the video walk-arounds or the videos on the VDPs. Review, rework, repeat: If performance in key areas increased as a result of your videos and your business saw a positive result, that’s great. You are off to a solid start. If not, identify things to do differently next time. Use the feedback from your customers and performance data to finetune your video strategy.

B Y B R A N D O N S T. C Y R , J I L L I A N C H A R E S T A N D PAT R I C K W Y L D Brandon St. Cyr, Jillian Charest, and Patrick Wyld are part of the Dealer.com Learning Solutions Team.

Brandon St. Cyr

Jillian Charest

Patrick Wyld

/ NOVEMBER 2016 / WWW.NIADA .COM

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DRIVING TRAFFIC

Get More From the Leads You’ve Already Got Every year we talk to hundreds of owners, general managers and automotive professionals. Many of those conversations hinge on their need to generate more leads so they can increase sales. And we get it. Traffic and leads can solve everything, which is great news because helping you get more leads is the easiest part of growing your business and reaching the next tier of success – if you know what to do. Why is generating more leads so easy? Because it is embarrassingly simple to sell and market something everybody wants. And everybody wants a better car than they’re driving right now.

But growing your business isn’t just about getting more leads. It’s also about making sure you get the maximum return on the investment you made in getting more traffic. Often the people we’re having these conversations with are current customers who are getting a massive amount of leads per month. We’re talking thousands of leads per month. So before we find ways to spend more on advertising, enter a different medium or generate more leads and traffic, we always advise them to make sure they’re fully capitalizing on the traffic they’ve already got. You should be doing the same thing. But how? The number one thing you can start doing right now to make sure you’re getting the most from the leads you’ve already got is manage and optimize your conversion funnel. Make sure you aren’t leaving any opportunities from your existing ad spend on the table. To do that, you need to start tracking some very important metrics. First, you need to find out how many unique, valid leads you’re getting each month. That should be pretty easy. Next, determine what your connect rate is. Your connect rate should be defined as the number of those unique, valid leads you actually interacted with. That could be a little more difficult to track down because whoever is handling your leads is probably counting any time he speaks with a prospect as a connect. But he should be tying that information back to the unique lead’s data. Each unique, valid lead can only count as a connect one time. You’re looking for a connect rate of 85 percent or higher. We defined that as the target connect

With the right strategy, you can target when and how often you call a lead to optimize the connect rate. rate because we have clients in markets of all shapes and sizes that are achieving it on a regular basis. Two of the biggest factors impacting whether you connect with a lead are how long it takes you to make the initial call after the lead comes in (speed to lead) and how many times you try to reach the lead. With the right strategy, you can target when and how often you call a lead to optimize the connect rate. Why is connect rate so important? Because if you aren’t getting in touch with people who have raised their hands and said they want to buy from you, you are leaving money on the table. The next number to look at is your schedule rate. Of the people you connect with, you should be scheduling appointments with those leads at a rate of 50 percent. So if you’re connecting with 500 people each month, you should be scheduling 250 appointments. Of course, of those 250 appointments, about half will show up and about 25 percent of those will buy. The key here is to get the people who want to drive home today in the doors so you can help them. The two places we see the biggest breakdown in the conversion funnel are optimizing connect rate and schedule rate. Even small improvements in those numbers can create a massive increase in store visits. Look, we understand that getting all of those numbers might be difficult. Most of our clients use an easy tool that tracks all of those metrics, such as Call Commando, which actually generates a full funnel report for them. But even if you aren’t using Call Commando, you should still be examining those numbers. To put it in perspective, if you are only connecting with 65 percent of your leads instead of 85 percent, you’re achieving only 75 percent of the target. So if you’re currently selling 100 cars, that means there is an additional 25 percent left on the table. That’s an extra 25 cars sold from leads you’re already paying for. Just think about what you could do if your dealership started selling 25 extra cars tomorrow.

BY JIMMY VEE AND T R AV I S M I L L E R

Jimmy Vee and Travis Miller are the founders of Rich Dealers® and authors of Gravitational Marketing. Visit www.trafficinstitute.com for more tips, tricks and techniques to generate traffic, leads and sales.

/ NOVEMBER 2016 / WWW.NIADA .COM

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A S S O C I AT I O N N E W S

CMD Goes West for First Session of 2017

NIADA’s Certified Master Dealer program is heading West. The first session in 2017 of the used vehicle industry’s premier dealer training program is set for Feb. 9-11 in Portland, Ore., part of NIADA’s commitment to bring the benefits of the CMD program and the unmatched industry expertise of instructor Joe Lescota directly to dealers nationwide. Lescota, an industry icon, provides the kind of knowledge that is now essential for an independent dealer trying to survive and thrive in an increasingly competitive market. His knowledge and experience have helped make the CMD course the most respected – and effective – dealer training program in the independent space. The CMD program teaches dealers how to take their business to a higher level by providing strategies for sustainable success in a more efficient and profitable dealership. It goes over all aspects of the dealership, from effective management practices and business planning to marketing to finances, offering new ideas for analyzing your business and increasing profitability. For more information or to register, contact Diann Flanders at diann@niada.com or 800-682-3837, or visit www.niada.com and click on “Certified Master Dealer” under the “Training” tab.

NIADA Foundation Provides Flood Aid

When record flooding in Louisiana damaged the offices of the Louisiana IADA and the home of LIADA executive director Dwayne Tambling, the NIADA Foundation – and many others affiliated with NIADA – stepped forward. Tambling’s house, which had been in the family for six generations, was left under nearly five feet of water by the historic floods that affected more than 100,000 in the Baton Rouge area. The nearby LIADA office suffered water damage and the loss of computer equipment and furniture. The situation was brought to the attention of the NIADA Foundation board during NIADA’s National Leadership Conference and Legislative Summit in September, and the Foundation trustees voted to donate $5,000 to help Tambling and the association rebuild.

IFMG On Board as National Corporate Partner

InterActive Financial Marketing Group, LLC, a provider of unique marketing solutions for auto dealers for more than 25 years, has joined with NIADA as a Bronzelevel National Corporate Partner. IFMG’s marketing solutions include its online lead generation program, CARLOAN. com, and telephony solutions, 1-800-CARLOAN, as well as its patent pending credit modeling system Intelli-Lead and TextFuel, a compliant texting solution built for car dealers, all of which allow IFMG to deliver the best credit-qualified car buyers online. IFMG has developed a number of marketing solutions specifically for independent dealers, including its online lead platform, NoHassle, which gives independents the ability to buy Internet leads on their terms, with no minimum purchase or term – buy what you want when you want at prices that make sense for you. Plans start at $19.99 with no hidden fees, and current NIADA members get a free trial. For more information, visit www. interactivefmg.com/NIADA.

Georgia IADA’s Paul John (right) led a drive that raised more than $33,000 for Louisiana IADA executive director Dwayne Tambling (left) and his wife, Becky.

Georgia IADA executive director Paul John then spearheaded a fundraising effort among his fellow state IADA executives, as well as dealers and industry partners. That effort was an overwhelming success – in all, more than $33,000 was raised. John presented a check to an emotional Tambling and his wife, Becky, at the LIADA Convention in Baton Rouge. “This show of support means so much to our family,” Tambling said. “It is a huge relief off our shoulders, and will go a long way to put us toward getting back into our home. “Please know how grateful we are to each of you, and how much this means to us. … We are feeling very blessed.”

Deluxe Corp. Offers Discounts on Checks, Forms and More Deluxe Corp., a supplier of automotive business products, has joined with NIADA as a new industry partner, offering members a discount on its products through the National Member Benefit program. NIADA members can order and save on everything from custom business cards to checks, forms, holiday cards, logo designs and promotional and apparel products. As a National Member Benefit partner, Deluxe is offering 50 percent off first-time orders and an everyday discount of 15 percent at deluxe.com/niada. “We have a tremendous product offering to help NIADA members grow their automotive business,” Deluxe partnership manager Andrew Isenberg said. “And NIADA does a great job supporting and advocating on their members’ behalf.” Deluxe, which has more than 100 years in business, has more than 115,000 automotive small business customers. “Deluxe has been a leader in small business checks, forms, banking tools and promotional products for many decades,” NIADA senior vice president of member services Scott Lilja said. “Through this very lucrative member benefit offering our members have the opportunity to save thousands of dollars while enjoying best in quality solutions that Deluxe offers.”

/ NOVEMBER 2016 / WWW.NIADA .COM

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F E AT U R E S T O RY

COMING TOGETHER NAAA Convention Joins Used Car Weekâ&#x20AC;&#x2122;s National Remarketing Conference to Offer More Education

/ NOVEMBER 2016 / WWW.NIADA .COM

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he National Auto Auction Association’s annual convention has always been a big event. Now – with a little help – it has become even bigger. Beginning this year, the NAAA Convention has merged with the National Remarketing Conference as part of Used Car Week, a mega-event put together by Cherokee Media Group that includes four conferences encompassing various aspects of the used vehicle industry – the NRC, CPO Forum, SubPrime Forum and the Re3 (Recovery/ Repossession/Remarketing) Conference. “The remarketing industry asked for fewer meetings, less cost and travel, and improved meeting content,” NAAA CEO Frank Hackett said. The goal, he said, is to produce “an action-packed week people will be talking about long after the meeting.” With the merger, the NAAA Convention will now be held each November – this year it’s set for Nov. 15-17 at the Red Rock Casino Resort and Spa in Las Vegas – and will include an expanded education agenda with 12 concurrent breakout sessions on Wednesday, Nov. 16. Those breakout sessions include some of the remarketing industry’s top speakers, such as economists Tom Webb, Tom Kontos and Ira Silver, Black Book’s Ricky Beggs and Anil Goyal, AFC’s Joe Keadle and Cox Automotive’s Derek Hansen. Among the topics to be presented are “The Power of Vehicle Data,” “Remarketing Open Recalls in a Pre-Regulated World,” “Creating Value to Impact Your Sellers’ Bottom Line” and “Unlocking The Hidden Value In Your Remarketing Portfolio to Maximize Your Return.” General session speakers include NextGear Capital’s Susan Moritz, Equifax’s Angelica Jeffreys and vAuto’s Majd Saboura, as well as NIADA CEO Steve Jordan and president Billy Threadgill. In addition, the NAAA Convention/NRC welcomes two impressive keynote speakers. Terry Bradshaw first earned fame as a Hall of Fame quarterback who led the Pittsburgh Steelers to four Super Bowl victories, but he has since shown his talents as a broadcaster, actor, author and singer. He’ll be featured at Wednesday’s Welcome Luncheon. The next morning, Jim Lovell – commander of the ill-fated Apollo 13 mission and the first man to fly in space four times – will speak about why he considers Apollo 13 a “successful failure.” After an explosion crippled his spacecraft, Lovell and his crew managed to return safely to earth thanks to the ingenuity and teamwork of the entire NASA program. The idea behind the combined NAAA/NRC event, the organizations said, is to “honor the tradition and embrace the future.” The NAAA Convention’s major events – the Opening Ceremonies and Luncheon, the Black Book Reception, the Presidential Gala and President’s Party – remain. “All of the great elements of the NAAA’s annual convention will be combining with the NRC to form an event that’s aimed to benefit all players in the wholesale space,” said Cherokee Media Group president and Used Car Week chairman Bill Zadeits, who called the merger “a natural fit.” For more information or to register, visit www. naaa.com.

2016 NAAA CONVENTION SCHEDULE NOV. 15-17, RED ROCK CASINO RESORT AND SPA, LAS VEGAS

TUESDAY, NOV. 15

8 a.m-9:30 p.m. Registration 12:30-1:30 p.m. Finance/Budget Committee meeting 1:30-2:30 p.m. Legislative and PAC Committee meeting 2:30-3:30 p.m. NAAASC/NADASC joint marketing meeting 3:30-4:30 p.m. Eastern, Midwest, Southern and Western Chapter board of directors meetings 4-5:30 p.m. Executive Committee meeting 4:30-5:30 p.m. Canadian Committee meeting 4:30-6:30 p.m. Networking Reception 6:30-9:30 p.m. Executive Dinner (by invitation)

WEDNESDAY, NOV. 16

7-8 a.m. NAAA 5K Fun Run 8 a.m-11 p.m. Registration 8-9:30 a.m. Independent Auction Group Committee meeting 9:30-10:30 a.m. Independent Auto Auction Services Corporation (IAASC) shareholders meeting 11:30 a.m.-2 p.m. NRC/NAAA Welcome Luncheon: (Terry Bradshaw, keynote speaker) 2-2:45 p.m. OVE user conference 2:15-2:45 p.m. Concurrent workshops 2:30-3:30 p.m. Auction Standards Committee meeting 2:45-3 p.m. Networking break 3-3:30 p.m. Concurrent workshops 3:30-3:45 p.m. Networking break 3:45-4 p.m. NRC/NAAA Conference welcome 4-4:30 p.m. General session: The Used Car Year in Review 4:30-4:45 p.m. National Remarketing Executive of the Year Award presentation 4:45-6:45 p.m. Networking Reception 9 p.m.-11:55 p.m. Attendee Reception, hosted by IAG and ServNet

THURSDAY, NOV. 17

7:30-8:30 a.m. Breakfast Honoring Best Auto Auctions to Work For 7:30-8:30 a.m. NAAA Past Presidents’ breakfast (by invitation) 8 a.m-11 p.m. Registration 8-8:30 a.m. Eastern, Midwest, Southern and Western Chapter all-member meetings 8:30-8:45 a.m. Day 2 welcome 8:45-9:45 a.m. General session: Apollo 13: A Successful Failure (Jim Lovell, keynote speaker) 9:45-10 a.m. Networking break 10-10:30 a.m. General session: Used Vehicle Values: Our History Tells Us Our Future 10:30-10:45 a.m. Networking break 10:45-11:30 a.m. General session: The National Panel 11:30 a.m.-1p.m. Auto Remarketing’s 40 Under 40 Award Ceremony Luncheon 1-2 p.m. NAAA Membership Committee meeting 1-1:30 p.m. Women in Remarketing Panel 1:30-1:45 p.m. Networking break 1:45-2:30 p.m. General session: Disrupting the Auto Industry 2:30-2:45 p.m. Networking break 2:45-3:15 p.m. General session: The Executive Suite 3:15-5:15 p.m. Networking Reception 3:30-4:30 p.m. NAAA Board of Directors meeting and current board photo 6-7 p.m. Black Book reception 7-9 p.m. NAAA Presidential Gala 9-11 p.m. NAAA President’s Party

WWW.NIADA .COM / NOVEMBER 2016 /

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AUCTION PERSPECTIVES Jerry Hinton, general manager of ADESA Portland, will succeed Manheim San Antonio general manager Matt Browning as president of the National Auto Auction Association during the NAAA Convention this month. In an interview with Used Car Dealer, both offered their views on the state of an industry with a strong connection to independent auto dealers.

Incoming NAAA President Jerry Hinton

hat is the current state of the auto auction industry? The commercial inventory vacuum created by the great recession several years back has been replaced by robust inventory levels across the board, and 2017 promises to be another great year for vehicle inventory. In addition, the industry has never worked together more closely regarding best practices, from arbitration and condition report standards to the universal safety of our customers and employees. How does the current industry climate, with used car supply continuing to increase, affect auctions? Auctions operate more efficiently with a greater number of vehicles in the lanes. They are designed to absorb large volumes of units, which creates a strong buyer-seller dynamic. That excitement and momentum is what establishes and cements customer loyalty. How have the many regulatory changes in the auto sales industry affected the auction business, and how much of a priority are NAAA’s efforts, in conjunction with NIADA and other industry associations, on the legislative and regulatory fronts? Auctions are fortunate to have the resources of NAAA. NAAA regularly monitors federal and state regulations, and through the joint efforts of its members and industry partners like NIADA, NAAA and its members can address any concerns and share best practices in handling any regulations. Auctions are resilient and adaptive and have been able to navigate regulatory changes without sacrificing their performance or level of service. What changes can independent car dealers expect to see from auctions in the future? Obviously, technology continues to be the primary industry piece that is constantly evolving. Most of the services auctions currently provide – and some that are still being developed – will become faster and more efficient. Pinch points will become fewer and fewer. However, the core of any auction’s success is the relationships it maintains with is customers. That will never change. What are your goals for your term as NAAA president? What do you hope to accomplish? I intend to continue developing the concepts and programs of our past two presidents – Ellie Johnson’s desire to create auction safety best practices and Mike Browning’s Auction of the Year award for community service. I intend to establish yearly industry safety awards that will honor auctions with exceptional safety efforts that help protect our employees and customers from injury. Also, I want to provide a universal forum for other industry best practices that will help our customers navigate from one sale to another with a minimum of pinch points.

Outgoing NAAA President Mike Browning

hat is your assessment of the current state of the auto auction industry? What an exciting time to be part of the remarketing industry. Auctions are full of optimism and excitement. Inventories are growing and the industry is finding new ways to match the consigners’ inventory with the right buyers. In-lane or online, auctions are proving to be the best way to buy or sell assets. How does the current industry climate, with used car supply continuing to increase, affect auctions? Auctions must be proactive. The old days of “build it and they will come” are gone. As I mentioned, we must find ways to match the right buyers with consigners’ inventory. Every day we must provide our customers with the highest quality service. How have the many regulatory changes in the auto sales industry affected the auction business, and how much of a priority are NAAA’s efforts, in conjunction with NIADA and other industry associations, on the legislative and regulatory fronts? Regulatory issues are top of mind with everyone in our industry. We must stay on top of the ever-changing landscape to ensure we’re not only compliant but proactive in keeping out unnecessary legislation that would burden everyone. Working closely with NIADA and NADA, we are actively involved in Washington. What changes can independent car dealers expect to see from auctions in the future? Availability. With growing new car sales and the expected lease return volume in 2017 and 2018, independent dealers should have more choices to fill their inventories. Looking back at the last year, what will you remember most? What have been the most significant moments or actions for NAAA in that year? What an amazing year. The people that I’ve met throughout my journey have been nothing short of amazing. From coast to coast, auction personnel have been engaged and excited. The support I received from Manheim and my own family has been humbling. The Auction of the Year award, which honors excellence in community service, was one of my most gratifying endeavors this year. The stories of service that our auctions perform in their hometowns is remarkable. People helping people – not because they have to, but because they want to – makes me proud to be part of such a wonderful industry. I will have a lifetime of memories from my year as president of the NAAA.

/ NOVEMBER 2016 / WWW.NIADA .COM

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AUCTION PERSPECTIVES Patience and Preparedness Pay Off

By Tom Webb

n the early stages of the 2010-2013 recovery, independent dealers, like everyone, felt relief as both retail and wholesale credit markets returned to normal after the severe financial collapse. But they were not able to take full advantage of the ensuing growth opportunities due to the shortage of inventory created by the earlier decline in new vehicle sales – also known as used vehicle production. Franchised dealers compounded the problem by snatching up end-of-term lease units and holding on to a larger share of tradeins. The normal gushing flow of vehicles from franchised dealers to independents became a trickle. But as we look toward 2017, wholesale supplies are ready to grow significantly. Whether off-lease, off-rental, repossessions, commercial fleet or dealer-consigned units, volumes will be up. Every market class, age, price point and condition level of vehicles will be available – and there are enhanced technological tools to help sort through all those vehicles to determine what to buy, where to buy and what price to pay. In addition, the remarketing industry offers a multitude of options for wholesale financing, transportation, post-sale inspections, reconditioning and assurance products. That leaves only the need for retail buyers. Will they be there? Absolutely. The beauty of the used vehicle market is that the 265 million vehicles in operation represent not only potential supply, but also demand. On any given day, there are literally hundreds of thousands of households that would like to trade up to something a little better if they can do so for an affordable monthly payment. Given that median household income in 2015 advanced for the first time in eight years – and at its fastest pace in more than 38 years – the definition of an affordable monthly payment has widened. Rising income, low delinquency rates, a stable labor market and liquid financial markets should keep auto lenders lending. To be sure, there is a coming pivot in Federal Reserve policy. The hike itself will be inconsequential, but market reaction to it might not be. Central banks around the world have been pursuing unorthodox monetary policy for some time, so we are destined for periods of volatility. During these good times, independent dealers should search for and develop the plans and partners they’ll need to get through the next cycle. Tom Webb is chief economist for Cox Automotive. Contact him at tom.webb@coxautoinc.com or follow him on Twitter at @ TomWebb_Manheim and read his blog at www.manheimconsulting.typepad.com.

Trucks Propping Up Wholesale Prices

By Tom Kontos

he slow growth that has characterized the postrecession recovery continued in the first half of 2016. GDP growth has remained in the 1 percent range for three consecutive quarters. But employment growth is impressive and the unemployment rate indicates the labor market is near full employment. That’s a good thing for new and used vehicle sales – consumers need pay-checks before they can make pay-ments. Retail new and used vehicle sales were up relative to 2015. The strength of new vehicle sales was concentrated in the truck segments, however – without them, new vehicle sales would be down. It will be tough for monthly SAARs during the second half of the year to match the second half of 2015, making it likely sales will be down overall from the record 17.5 million sold last year. That will make the increased use of new vehicle incentives, which are already rising, more likely. Used vehicle sales, on the other hand, should remain strong and continue to help absorb the growth in wholesale supply. Certified pre-owned sales are a particular bright spot in the retail auto market and are on the way to another record year, making up about 20 percent of franchised dealer used vehicle sales. Wholesale prices have softened, as one would expect given growth in supply, though it is sometimes hard to see at the top-line level and is better revealed when holding constant for model class, age and seller type. As in the new vehicle market, trucks have been propping up values, and without them average wholesale prices would be down. Also, off-lease volumes are contributing younger, lower-mileage, more expensive units that are tending to elevate average prices. Another complicating factor in 2016 has been the increasing recalls, which have resulted in “stopsales” that have curtailed the release of vehicles for remarketing. Thus, we don’t know how prices might have behaved if these vehicles had been sold. That will become a bigger factor in the second half of the year as replacement parts are delivered and installed and recalled vehicles are approved for sale. Tom Kontos is executive vice president of customer strategies and analytics for ADESA Inc. Follow his monthly Kontos Kommentary, offering analysis of the wholesale used vehicle market, at www.adesa.com/ kontos-kommentary.

/ NOVEMBER 2016 / WWW.NIADA .COM

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AUCTION PERSPECTIVES The Market Is Changing – Are You Prepared?

By Anil Goyal

e’ve had a really good run over the past five years, with several positive trends in the industry. New car sales have continued to increase. Credit availability has been strong. Job growth in the economy created high demand for vehicles while used supply remained tight. Now, though, we’re starting to see a plateau in those trends. The market is changing. New car sales have peaked and incentives are on the rise to push sales. Subprime portfolios are experiencing more delinquencies, leading to a tightening of underwriting criteria. We have ridden the wave of pent-up demand that now has been met. And as demand is leveling off, the supply of used vehicles is rising. More off-lease consignment volume means more inventory to choose from and more clean late-model units available. Some segments will continue to perform better than others. Segments that are lease-heavy and have declined in consumer demand will continue to have high depreciation. Not all vehicles depreciate alike, but in general, be prepared for higher depreciation of your inventory and expect to see residual values lower than current retention percentages. Be selective about your inventory and review your strategies to acquire vehicles to continually adapt to the changing market. Contrary to some headlines, we don’t see a bubble in our industry – though the risks are increasing. We expect the market to reach a gradual normalization over the next three years. The biggest concerns include continuously increasing lease penetration helped by heavy subvention leading to residual losses on the returns, and longer loan terms leading to negative equity for customers with trade-ins. Our residual forecasts show a four-point drop in retention over the next three years compared to current retention figures. Using timely and accurate collateral data, as well as the right analytics to help interpret that data, is key to making better decisions in this changing environment. Our industry will continue to evolve for the next few decades as new, disruptive technologies, along with social changes, gain more ground. The evolving trends include the rise in ride-sharing in urban areas, longer-range and lower-priced electric vehicles and development of improved safety technologies and autonomous vehicles. The only thing certain is change. Find the opportunities in the change and position yourself to take advantage of the exciting times ahead. Anil Goyal is vice president of automotive valuation and analytics for Black Book, a provider of vehicle pricing information. For more information, visit www.blackbookauto.com.

ServNet Auction Owners Committed to Leadership By Kevin Brown

n May, ServNet’s auction owners and executive staff met in Dallas for its annual spring owners meeting and a luncheon with some of the nation’s largest remarketers. More than a dozen national remarketing companies and industry members attended, participating in discussions with members of ServNet’s leadership, including the owners of the 20 independent auctions in the ServNet auction group. ServNet’s Meet the Owners events have set a new standard in the industry since we initiated them nearly 10 years ago. The meetings showcase the strength, heritage and capabilities of ServNet member auctions and give remarketers the opportunity to meet directly with the auction owners to discuss issues of mutual concern, address challenges in the market and strengthen important personal relationships that contribute to successful business opportunities at the auctions. It is more important than ever for remarketers to recognize they are doing business with some of the most successful auctions in the country when they consign vehicles to ServNet auctions. And they are dealing directly with the person whose name is on the building and who is ultimately accountable for that business. We have enjoyed a 28-year history as a group of the best independent auctions in the nation, and we continue to build on that legacy. The ServNet brand is stronger than ever. We remain committed to the role independent auctions play in the auto remarketing industry. ServNet auctions from coast to coast continue to provide the very best service and a superior auction experience for every dealer and commercial customer. As many ServNet auction owners represent second and even third generations in family-owned businesses, the ServNet organization is balancing its leadership with next generation participation. Those next-generation owners are continuing a tradition of accountability and leadership that not only shapes their own operations, but is felt throughout the broader auction industry. National remarketers appreciate the certainty of knowing they will be dealing with those thriving businesses with strong roots in the industry – today, tomorrow and far into the future. Kevin Brown is president of ServNet and owner/general manager of Missouri Auto Auction in Columbia, Mo.

/ NOVEMBER 2016 / WWW.NIADA .COM

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AUCTION PERSPECTIVES Commercial Consignment Keeps Volume By Ira Silver Growing

IAG Refreshes Brand, Strengthens Online Presence

Second quarter growth in real GDP came in at 1.4 percent, the third quarter in a row growth has been anemic, averaging only about 1 percent per quarter at an annual rate. That comes after a weak expansion in which growth has averaged about 2 percent compared to more than 3 percent in similar periods after past serious recessions. Slow growth during this business cycle has not created the conditions that in stronger past expansions have led to recessions, as inflation and interest rates remain historically low for an expansion that is almost seven years old.

It is officially the age of in-lane and online. Just a decade ago, many in the industry still thought Twitter was a fad, LinkedIn was Facebook for grown-ups and social media was just for millennials. Now social media dominates our industry, and independent auctions are an established and viable part of that trend. With increasing volumes of wholesale vehicles becoming available, independent auctions are positioning themselves for expansion. Independents are building up and branching out with increased acreage, new and upsized facilities and, of course, upgrades in technology. In keeping with our own need to stay up to date, IAG introduced a redesigned logomark and launched a refreshed web design at the 2016 Conference of Automotive Remarketing in Las Vegas. IAG’s new responsive website is easier to read and navigate across a wide range of devices, from laptops to desktop computer monitors to mobile phones, and minimizes the need for resizing, panning and scrolling. The IAG member auction map is larger and more accurate, and the directory and map are both searchable, with multiple ways to search: by auction name, by state and by clicking on the map. During the industry’s most recent awards season, IAG once again received multiple accolades from our commercial consignors and industry media. More than 40 awards were presented to independent auctions between September and March, and I was honored to be named Remarketer of the Year at the CAR by Bobit Media’s Mike Antich. IAG’s mission has always been to promote independently owned auctions and to sustain an alliance within the industry to give its membership a group conscience and voice. Continuing our partnerships with industry governors NAAA, NIADA and IARA strengthens our position and increases our reach throughout this industry to create better opportunities for us all.

ECONOMY

LIGHT VEHICLE SALES

New light vehicle sales growth slowed in the first half of 2016 to less than 2 percent, while used sales rose almost 5 percent. That’s the first time since early in the recovery that growth in used vehicle sales has been higher than new sales growth. Prolonged low gas prices appear to have reduced the appeal of new energy-efficient passenger cars relative to less expensive used vehicles. Despite the slowdown, new vehicle sales are still running slightly ahead of last year’s record pace. But the sales pace will have to pick up in the second half for 2016 to be another record year.

AUCTION VOLUME

According to AuctionNet data, year-to-year auction volume growth slowed in the first half compared to 2015. However, gains remain respectable, with an almost 5 percent increase year-to-date. The shift from dealer consignment-led growth to commercial consignment-led growth that started in 2013 accelerated in 2016 as new sales and hence trade-in growth slowed. That was occurring as commercial consignment volume was boosted by the return to the auction lanes of fleet and lease vehicles that were initially sold during the strong new sales years of 2012-2014. Continued gains in commercial consignment this year and next should more than offset any weakness in dealer consignment, keeping total auction volume on a growth path. Paralleling the new vehicle sales pattern of strength in light truck sales, year-to-date light truck auction volume growth is stronger than passenger car auction volume growth.

AUCTION PRICES

After rising about 4½ percent in 2015, auction average price increases moderated in 2016, with a year-to-date gain of about 3½ percent. Strong increases in commercial consignment supply have contributed to the moderation of auction inflation this year. Dr. Ira Silver is the economist for the National Auto Auction Association. His quarterly reports are available at www.naaa.com.

By Lynn Weaver

Lynn Weaver is co-chairman of IAG and partner and general manager of America’s Auto Auction in Harrisburg, Pa.

/ NOVEMBER 2016 / WWW.NIADA .COM

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F E AT U R E S T O RY

A WHOLESALE TOOL KIT For Dealers Looking for a Better, More Efficient Way to Source Inventory – and Who Isn’t? – Online Channels and Technology Tools Can Be the Answer By Derek Hansen

/ NOVEMBER 2016 / WWW.NIADA .COM

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as there ever been a time when you weren’t looking for a better, more efficient, more affordable way to source inventory? Probably not. But the pressure is even greater today because profit margins are tighter than ever before. While you might not be making as much money per vehicle as you used to, there are ways you can protect your profitability by driving more speed and efficiency into your wholesale operation. And the timing couldn’t be better, with millions of off-lease vehicles coming in and used car sales remaining strong. According to the 2016 Manheim Vehicle Solutions Study, only 52 percent of wholesale buyers are satisfied with their current process. That might indicate a lack of awareness and understanding of resources that are readily available to help wholesale buyers make the right decisions and conduct their business. Taking advantage of the technology and solutions, and rethinking processes, can help dealers create more streamlined, efficient and profitable operations.

SOURCING AUCTION CARS

Auction cars are always available, but one of the biggest challenges dealers face is acquiring auction vehicles efficiently and with precision, based on real and timely data. The days of gut-driven guesswork can, and should, be put to rest. Today, your best bet is to use tools to evaluate and buy vehicles that are in demand in your market. You can then look at the best inventory from a wide net of resources for quicker, more confident decisions. There are four operational imperatives for sourcing auction cars. Know exactly what to buy: Many dealers and their buyers believe they know the exact cars that will best advance their used vehicle objectives, so they don’t do much homework before they arrive at an auction. The cars they purchase end up being aged units, month after month. What gives? The bidding and buying process doesn’t always lead to profitable outcomes. The challenge is the variety and number of available auction cars coupled with today’s hyper-competitive retail market. Without the help of technology and tools, it’s impossible to know how a specific vehicle’s color, equipment, mileage, ownership history and trim level will play against competing cars. CONTINUED ON PAGE 38

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Dealers who reinvent their acquisition strategies use that car-specific precision to build auction shopping lists that include alternative choices if they can’t get the cars they want the most. Today, there are digital sourcing solutions that are built to tackle the most complex challenges in wholesale buying. They let you source inventory from auction houses in every corner of the country – Manheim, ADESA, SmartAuction and more – with no preferential treatment given to any auction. Cars are automatically ranked by profit potential. Know where to buy: With increased competition to acquire auction cars, many

dealers recognize they need to expand their sourcing efforts beyond the local auction. The challenge then becomes how to easily and efficiently determine the auctions where the cars that best fit your retailing objectives are available. The most proficient dealers and buyers have expanded to online channels – simulcast and online auction sites where you can bid, buy and sell 24/7, which can be done from a mobile device. Currently, only one-third of dealerships attend a simulcast auction every month, according to Manheim data, which presents an opportunity for savvy

One of the biggest challenges dealers face is acquiring auction vehicles

EFFICIENTLY AND WITH PRECISION, based on real and timely data. The days of gut-driven guesswork can, and should, be put to rest.

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The time saved by acquiring inventory online can contribute to dealers’ speed to market, and, as a result, faster turn, with fewer cars sitting in inventory for long times. That increased velocity can ultimately lead to

IMPROVED DEALERSHIP PROFITABILITY.

Dealers who are not tapping into the efficiencies gained from digital acquisition channels are already falling behind the curve. dealers to become the leaders of the pack in wholesale operation innovation. Those early adopters also use technology to facilitate the transfer of the purchased units back to the dealership. The end result: They are more efficient and productive buyers every time they go to an auction. Buy at the right price: Dealers who reinvent their auction sourcing efforts eliminate the guesswork that once guided their bidding on auction cars. Today, they know the maximum they can afford to pay on every vehicle. How? They use technology and tools to calculate each unit’s profit potential – taking into account the costs of acquisition, transportation, reconditioning, a pack, etc. – before they make a first bid. Of course, it takes discipline to stick to those parameters in the lanes (even in the virtual lanes), particularly if you get frustrated by losing cars you really wanted. But the bidding precision and accompanying discipline are critical to ensure you make your margin when you acquire an auction car. Do it all faster: With technology, dealers and used car managers can prepare for auctions in minutes, not hours, and more dealers are starting to realize the benefits and efficiency of acquiring inventory through online channels. In fact, Manheim reported its online transactions in 2016 are up 22 percent year-over-year, with 18 million total visits and more than 400,000 units sold through digital channels – 250,000 of them were sold on OVE.com, its online auction site. The time saved by acquiring inventory online can contribute to dealers’ speed to market, and, as a result, faster turn, with fewer cars sitting in inventory for long times. That increased velocity can ultimately lead to improved dealership profitability. Dealers who are not tapping into the efficiencies gained from digital acquisition channels are already falling behind the curve.

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Not only do online channels save time and travel expenses, they let you expand your buying radius, giving you access to more vehicles that align with your vehicle selection strategy and inventory needs.

Online channels cut down on trips to auctions where the cars you need might not be. Not only do online channels save time and travel expenses, they let you expand your buying radius, giving you access to more vehicles that align with your vehicle selection strategy and inventory needs. In an effort to gain even more efficiency and speed as they acquire auction cars, some of the most progressive dealers now rely solely on online sources, a timesaving shift that improves showroom efficiency by enabling managers to be in the dealership, working deals and managing their teams. Here’s a tip: When acquiring vehicles from farther distances that might take longer to reach your dealership, have a process in place when possible to get those cars listed online before they arrive at your lot. Mobile apps are another way to speed up the buying and selling process so you can do business from anywhere. Manheim’s mobile app, for example, lets you perform full vehicle searches and edit saved searches, scan a VIN or QR code and get the Manheim Market Report automatically, view vehicle condition and history reports, manage your workbook and place bids or purchase vehicles from anywhere – even if you’re actually at an auction and just want to bid on inventory in a different lane. The apps available throughout the industry allow you to manage purchases, check your buying activity, view your purchases and set up and receive post-sale inspection, title and vehicle availability notifications.

MITIGATING RISK

Granted, there is now a wealth of inventory online and multiple ways to acquire that inventory online. But just like a consumer buying a vehicle, most dealers like to “kick the tires” to make sure they’re not purchasing a problem vehicle. Let’s face it, all inventory acquisitions carry a measure of risk, and acquiring inventory online might seem like an even riskier proposition. However, there are solutions available to help you mitigate risk and offer peace of mind with your online purchase. Rely on condition reports to avoid problem vehicles. Manheim’s sales data shows buyers are three times more likely to bid and four times more likely to purchase a vehicle with a condition report, which is an important consideration for sellers. And for buyers, that same data shows units with condition reports have a 37 percent decrease in arbitration. Over the past two years, there has been unprecedented volume increase in condition reports at Manheim auctions, averaging around 20 percent year-overyear growth. CONTINUED ON PAGE 42

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Tools can also increase sellfor-cash and trade-in vehicles coming to your dealership, which can help improve your ability to acquire high-demand used vehicles for your market.

Dealer adoption is driving the “take rate.” More than 70 percent of large dealers and 46 percent of small- to mid-sized dealers now use real-time data about a vehicle’s current condition to make better decisions, especially when acquiring online. If arbitration is a concern preventing you from embracing online channels, consider wholesale vehicle purchase protection programs. Some of those programs offer automatic purchase protection applied to every vehicle you purchase. Having that type of safety net allows you to decrease recon costs, eliminate costly mistakes and expand your inventory mix. Most offer everything from a basic frame check to a full buy-back guarantee. Post-sale inspections are another smart option that doesn’t require you to be at the auction. Typical PSIs inspect the frame/unibody, the engine and transmission, and can come with seven- or 14-day guarantee options. The benefits of condition reports, PSIs and purchase protection are significant and provide confidence you’re making the right purchase so you can minimize unexpected repair costs. They give you peace of mind with on-the-ground information and save time because you can do everything before the vehicle even leaves the auction.

TAPPING INTO THE ONLINE RETAIL MARKET

According to Autotrader’s 2016 Car Buyer Journey Study, two-thirds of car shoppers have a vehicle to trade. Between KBB.com and Autotrader.com alone, there are 30 million shoppers a month, and 21 million of them have a car to trade. With the right trade-in tools, dealers can find and acquire a wide variety of inventory with less risk and cost. Tools can also increase sell-for-cash and trade-in vehicles coming to your dealership, which can help improve your ability to acquire high-demand used vehicles for your market. There are online trade-in valuation tools available from third-party partners that can help you connect with vehicle disposers online and help validate the process for car buyers. Think about it in terms of documentation replacing negotiation. Trade-in valuation tools offer a trade-in range to car buyers online and provide a reality check on the true condition of their vehicle while demonstrating how much dealers might be willing to pay for it within the current marketplace. That information can also help minimize contentious negotiations in the store about the value of a vehicle while creating opportunities for dealers to acquire inventory. As vice president of digital inventory solutions, Derek Hansen is responsible for Manheim’s inventory solutions in the ever-evolving digital space and works closely with teams from Manheim, RMS Automotive and vAuto to create a customerfocused digital strategy that takes advantage of those brands’ expertise.

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F E AT U R E S T O RY

AUTOMATIC SUCCESS Technology Can Be Daunting, But Automating 13 Key Workflows Can Create a More Efficient Dealership â&#x20AC;&#x201C; and a Healthier Bottom Line By Rob Wilson

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ith as much technology as most of us rely on to run our dealerships, it’s hard to believe there’s something we could be missing. Perhaps we’re stuck in tunnel vision, content with manual processes we know like the back of our hand. Or perhaps our software is in need of a long overdue upgrade. Whatever the case, I’ve seen countless independent dealerships that are overlooking 13 key workflows that absolutely should be automated.

WHY AUTOMATION?

First, we must answer the common objection: Why automate when your current process works just fine? I’ve found the biggest hurdle to strategically using automation in your business is your own mindset. Sometimes automation solves issues that have been plaguing you for years. But other times, it simply multiplies your success. Imagine, if you’re doing great now, how much better you could be doing by exponentially improving efficiencies. So take a moment to consciously clear your mind of any preconceived notions. Besides, once you try automating one or two (or all) of the workflows we’ll discuss, your profit numbers will speak for themselves.

WORKFLOW 1: MARKET TO SOLD CUSTOMERS

If you’re like most independent dealers, you already have a solid base of repeat customers. Think of how many more sales you could earn by proactively marketing to previous buyers using pure statistical analysis – pinpointing the customers most likely to be in the market for another vehicle. Equity mining software can track the initial deal terms, interest rate, purchase date and more. Combine that with the opportunities available today for a lower interest rate and/or lower payment and you’ll uncover ideal customers to upsell. After identifying that list of prospects, some software can even be set to immediately reach out to each person through a series of tailored marketing emails. That approach can capture customers who would be willing to purchase from you again, but haven’t actively begun the search for a new vehicle. Ultimately, it’s a matter of which dealership reaches the right buyers at the right time, and who gets to those prospects before they start shopping the competition. CONTINUED ON PAGE 46

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WORKFLOW 2: DISTRIBUTE LEADS TO THE RIGHT SALESPERSON

If you aren’t already automating the process, you likely send all web leads to one person, who manually assigns them out. Compare that to a CRM that automatically distributes leads in roundrobin style based on: Vehicle: Do some sales staff specialize in a certain segment, like trucks or higher-end cars? Schedules: Which team members are in the office vs. on vacation? History with the customer: Is this a repeat buyer who should be sent back to

the original salesperson? Even when you use software to route leads, you can still see all of them coming in, so you never give up visibility into that part of your business. It’s just a matter of getting leads into the hands of the right person faster.

WORKFLOW 3: REGULARLY FOLLOW UP WITH ACTIVE LEADS

Did you know 80 percent of sales are closed between the fifth and 12th contacts? That is, actually making contact with the customer, not calling and getting voice mail. That should make it even more

concerning that only 10 percent of salespeople ever move past contact No. 3. An automated follow-up work plan can help. Most CRMs for independent dealers focus on the initial follow-up only – the salesperson must manually schedule activities after that. Some technology, however, will create an intelligent work plan that automatically follows up with the lead, reminds the salesperson to do so or some combination of the two. Sophisticated software allows complete customization of your plan, so you can set the frequency of contact to whatever you’re comfortable with.

WORKFLOW 4: REACH OUT TO WEB VISITORS

Notice this process says “web visitors,” not “web leads.” Hopefully, you already have a way for interested customers to submit a lead through your website. But what about those visitors who came into your store, didn’t buy and then hopped on your website several days later? Or someone who has already submitted a web lead but is visiting your site again and spending a significant amount of time on the pages of certain cars? Most dealers would probably want to know that information but have no way of getting it. Today’s technology offers the ability to capture the IP address of any lead and track where that person goes on your site and how long he or she stays. Gathering that kind of detail is invaluable for salespeople, who can leverage such knowledge during follow-ups. For example, if a customer visited your store and was initially interested in a four-door sedan but later visits the website and looks at seven trucks, your salesperson would proactively follow up with more information on the trucks in your inventory. Remember, you can only act on the information you know, and customers rarely share all they are really thinking. Use technology to paint a more complete picture of what your prospects are truly after so you can show them your store can provide it.

WORKFLOW 5: ADD NEW INVENTORY

Think of all the steps that must be taken before a vehicle is ready for sale – conducting an inspection, detailing the interior and exterior, performing necessary repairs and more. Your DMS should have the ability to flag new inventory for certain tasks, then include any vehicle with that flag on corresponding reports. For example, can your current system automatically produce a list of all cars waiting to be detailed? CONTINUED ON PAGE 48

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Once the task in question has been completed, the flag could be removed automatically. It’s the simplest way to keep your inventory organized and help each department stay on track with where a particular vehicle is in the process.

WORKFLOW 6: VIEW SERVICE REPAIR ORDERS ON EACH VEHICLE IN YOUR DMS Imagine if every time a car from your inventory goes into your shop for a repair, your salespeople could automatically see the repair status plus how much money the repair cost. They would know the car is not yet ready for sale and they would be aware of the increased investment – a key piece of knowledge to preserve your profits during negotiation. Without manually entering repair orders or ensuring extremely tight communication between each department, most dealerships would not have that level of visibility into each vehicle’s status.

WORKFLOW 7: RE-EVALUATE YOUR INVENTORY EACH MONTH

It’s a sad fact of the car business – every day your vehicles sit on the lot, they depreciate. If they sit too long, you might need to adjust the price. But that process doesn’t need to be a hassle. Instead of manually pulling

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book values, simply set your DMS to automatically reassess your inventory every month, comparing it to the latest book values without you lifting a finger.

WORKFLOW 8: REPRICE YOUR VEHICLES

How many partners do you use to advertise your cars? If your repricing isn’t automated, you likely log into each platform separately, navigate to the section where you can change the price and manually set the new price. But how much time would it save to change the price in just your DMS, then automatically syndicate that price to all of the online platforms and third-party providers that promote your inventory? You can use that same functionality to keep inventory on your website up to date, so whenever a vehicle is sold, it’s automatically removed from your site.

WORKFLOW 9: REACH OUT TO KEY PROSPECTS AFTER PRICE CHANGES Whenever a vehicle price is lowered, one of the first tasks on your sales staffs’ list should be to contact all prospects who were recently interested in that particular car. That group represents low-hanging fruit, and the reduced price might entice them into a purchase. But that type of activity can be too time-consuming without proper

technology backing it up. Rather than asking your sales staff to dig through months of notes, your CRM should automatically populate a list of every customer interested in a particular vehicle as soon as the price is lowered.

WORKFLOW 10: MOVE A CUSTOMER FROM WEBSITE TO CRM TO DMS In this day and age, no dealer should have to input a customer’s information multiple times into multiple systems as they progress through the sales process. Find a well-integrated platform that allows you to push a customer’s data through all systems, so when a web lead turns into an in-person visit, no extra manual work is necessary. Your CRM will even create a follow-up work plan. When that same customer is finally ready to buy, you don’t need to keep him waiting – all of his information can be pushed to your DMS.

WORKFLOW 11: SUBMIT DEALS TO LENDERS

Gone are the days of manually compiling your deal package, faxing it to a lender and waiting for what seems like forever for a response. With DMS lender portal platforms, you can seamlessly submit deals and receive decisions in real time without ever leaving the system. You can always see a deal’s

status in your DMS, so feel free to move on to other activities instead of constantly following up with the bank.

WORKFLOW 12: CUSTOMIZE YOUR COLLECTIONS QUEUES

If you’re a Buy Here-Pay Here dealer, you already know excellent collections is key to keeping your business in the black. As important as that department is, manually determining who each collector should call every day, and in what order, is not the best use of your time. Take advantage of a DMS that can proactively automate payment reminders for customers, as well as queue up customers for the collector who is the best fit. For example, you likely want a different person speaking with your late-delinquency customers vs. earlydelinquency customers.

WORKFLOW 13: RESOLVE COMPLAINTS

Recent technology can help you intercept complaints before they make it to social media, review sites, the CFPB or a local attorney’s office. Just by automating follow-up surveys to buyers – then using that information to create QA events that are handled right away – you make customers feel heard, CONTINUED ON PAGE 50

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F E AT U R E S T O RY

MAKING TECHNOLOGY WORK Even the Most Advanced Tech Tools Won’t Get Results If Dealers Don’t Address the Humans Using Them By Mark Bergeron

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To make technology work to its full potential, it’s critical to take several steps, all of which revolve around establishing the solutions you want to achieve and how the technology can plug in to make those solutions a reality.

he auto industry has fallen hard for new and shiny technology marketed as a way to achieve better sales team tracking and performance, leading in turn to higher revenues. Or that’s the theory, anyway. As the Edsel proved so well, offering something new and shiny doesn’t automatically equate to robust sales. The same is true with today’s dealer technology – both hardware and software designed to rev up sales engines. According to what we’ve been hearing, just having the stuff will magically transform lackluster sales teams into dynamos. Here are the realities. Until or unless sales forces are properly and thoroughly trained on it, technology won’t do the job. Unless sales forces adopt and gravitate to it, it won’t do the job. If the customer doesn’t like it, it won’t do the job. Without discipline and consistent use/ follow-through with the technology, it won’t do the job. Management, convinced that these shiny objects will be their holy grail, find themselves scratching their heads, criticizing their sales teams for continuing subpar performance, and often doubting the ability of the technology to do what was promised. Much of the problem stems from our collective preoccupation with two auto industry-centric mindsets: Our love of shiny, new toys in general, as demonstrated by our love affair with cars, and our mistaken belief that “if you build it, they will come.” In this case, the Field of Dreams line simply translates to a desire to buy it, power it up, and have the sales magically come as a result. Sort of like starting a vehicle and driving to a destination. To make technology work to its full potential, it’s critical to take several steps, all of which revolve around establishing the solutions you want to achieve and how the technology can plug in to make those solutions a reality. Here are some recommendations to help you get there. Keep in mind that these suggestions address those dealers already possessing a variety of shiny objects, so the perspective by nature is reactive. Obviously, taking these steps proactively can help steer you in the right direction. Get sales force buy-in: Often, sales reps will attempt to ignore or circumvent technology they don’t understand or don’t like, or that demands a level of commitment that doesn’t resonate. CONTINUED ON PAGE 54

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For example, it can be very difficult to get sales-oriented stars to consistently follow a technology process they feel isn’t needed for their special brand of “excellence.” Sometimes they feel the technology is “beneath them,” stifling their seemingly God-given talent to sell cars out of the blue. And, of course, there are few challenges in life more daunting than spending valuable sales time loading up the CRM. Getting sales force buy-in requires both tough love and TLC. On one hand, they must understand there are important, proven, technology-related processes they will need to follow. Regular meetings to assure understanding and check accountability are key to the success of that effort. A bit of TLC also helps. Showing proof of sales increases with a particular process, such as sales lead charting and tracking, can make even the most hard-headed, arrogant salesperson take notice. And encouragement, via acknowledgement and incentives, doesn’t hurt either. Ensure the technology performs as desired: Substantial disruption and dysfunction work against the solution. Bottom line, if it feels like an irritant rather than a relief it is unlikely to help in the way intended. It’s unrealistic to expect a sales workforce to “waste” time on technology that

is balky, redundant or incomplete. If it’s not performing up to speed, it’s critical to remedy the problem(s) quickly or find a better solution. Of course, the reality in many situations is that dealerships will stay with the “problem child” because of the investment. But if it isn’t doing the job, what’s the cost in lost productivity (on all levels, from administrative to sales), creating an unhappy workplace and potentially setting up conflicts between high-performing salespeople and managers forcing them to use something that just doesn’t work right? Invest in thorough training: This should be a no-brainer. Familiarity breeds contentment, right? Get everyone well trained on a specific process and they will flock to it because they have now mastered a new “toy” and can see its potential to help rev up sales. Instead, it’s often a non-starter for one or more reasons, such as a lack of budgeting for the needed training, leading to learning on the fly, which typically is counterproductive; a lack of management involvement in the time and resources needed to train correctly; and/or sales force resistance to invest their time in training. In a perfect world, all those considerations can be dealt with before buying a technology system. The solution is to

make sure the program you’re looking at is thoroughly vetted, the required training is thoroughly vetted, and the process and scheduling the sales force for its introduction can be handled properly. However, we live in the real world, where often the issues are addressed after going live with a technology solution. What to do? Start with the easiest fixes if possible. Ask yourself a few questions. What other sales tools or processes can complement/ enhance existing technology with minimal training and disruption? How can training be offered in “bite-size” chunks available during slow times or off-hours? Many online options such as on-demand videos and recorded webinars a salesperson can view anytime are becoming much more common and affordable. In many cases, those can serve as a suitable substitute for group on-site, in-person training. Interface old-school solutions with new technology: Many dealers with “shiny object syndrome” assume the more technology, the better. In reality, the sales process is still a very delicate human interactive experience, so small changes in technology can make a big difference in customer perceptions. Always view your new shiny technology in the eyes of your customers. Sometimes, age-old tools like pen and paper still go a long way and can help create the proper interaction.

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People don’t always view technology as awesome if their human experience is lacking. Writing down wants and needs versus thumbing information into a smartphone can build rapport, help make a deal and contribute to getting a customer for life. Regardless, you would be well advised to survey the entire landscape, including both digital and paper solutions, to see what will work best for your customers and your team. Look for the solution that seems best suited for your needs and that has a proven track record, regardless of how sexy or shiny it may be. Hold people accountable consistently and reliably: Quick quiz: How many of you use the lion’s share of features and benefits on your Windows or Apple devices? Who maximizes the efficiency and effectiveness of their time management, email, scheduling and task management programs? Who knows all the bells and whistles of efficiently and effectively formatting a document? Who can use Excel, PowerPoint and other whiz-bang programs without a hitch? Most of the computer-using world only knows a fraction of those often valuable features. In our already packed-to-themax days, we learn what we need to know to get by and tend to ignore the rest – at least until some compelling development

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requires us to change our ways. What results from that? Inefficiency, dysfunction, frustration and ultimately diminished performance. Is there anyone out there who hasn’t spent way too much time trying to make document formatting line up to desired specifications because they didn’t understand how to work the software? The same issues apply when viewing technology for sales performance. If a sales rep only knows or uses a small portion of a customer relationship management program – and inconsistently, at that – how can you expect robust results? The old adage “garbage in-garbage out” means pretty much that for a lot of dealerships’ CRM software. Armed (hopefully) with enthusiastic buy-in and ample training, the critical third piece is accountability. This doesn’t happen in a vacuum. Hold regular meetings to review, reflect and revise. In those sales meetings, review how each team member is using the technology, calling for details that prevent him or her from “faking it.” Once everyone has weighed in, reflect on the group’s reports to determine usage trends, insights and tips that merit further consideration for team efforts moving forward. Then revise processes as appropriate to put individual team

member input to the best use of the entire management team. Besides improving efficiency and effectiveness with the technology, that type of sharing and encouragement to find individual breakthroughs further builds buy-in, enthusiasm and a desire to keep going strong. In the final analysis, Aristotle had it right: Everything in moderation. Use of the latest “shiny object” technology can help drive sales productivity and customer retention. Or it can do just the opposite if not deployed and used to the best benefit. But no amount of the latest and greatest technology will replace the importance of the very human qualities of intuition, rapport, knowledge and experience that ultimately add to the bottom line. By using both in a coordinated and efficient way, the ability to capture, track, follow up with and close deals will be reliable, consistent and powerful. When everything in your dealership works in sync, it creates a better, more profitable work environment. Former dealer executive Scott Bergeron is founder and principal of Daily Gameplan (www. dailygameplan.com), a sales team performance company. He can be reached at (303) 918-3169 or scott@dailygameplan.com.

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HEAD OF THE TABLE NIADA’s Influence in Washington Grows as the 2016 National Leadership Conference and Legislative Summit Sets Records for Attendance and Impact By Andy Friedlander

n Washington, the saying goes, if you’re not at the table, you’re on the menu. The reaction in D.C. to NIADA’s 2016 National Leadership Conference and Legislative Summit provided a clear indication of where the association sits. And it’s not on a platter. “All we wanted when we began was a seat at the table to state our position,” said Henry Mullinax, chairman of NIADA’s legislative and regulatory affairs committee. “Now sometimes we have the head seat at the table. “When we go into a Congressional office, they know who NIADA is. Many times they call us now for input on bills related to the automobile business.” More than 175 independent vehicle dealers and industry leaders – the most

since the event returned to Washington in 2013 – came from across the country in September to the nation’s capital to meet with federal legislators and regulators and make the voice of the independent dealer and small business heard. As always, the event’s highlight was the Day on the Hill, when 14 teams of NIADA dealers and industry partners converged on Capitol Hill and met with 90 members of the Senate and House of Representatives or their legislative staff. That obliterated the previous record of 63 meetings set during last year’s event. “NIADA’s footprint in Washington today is by far the largest it’s ever been,” NIADA senior vice president of legal and government affairs Shaun Petersen said. “In the four years since we began doing this, we’ve seen it grown exponentially.

“When we told people we had almost 180 dealers in 14 teams on the Hill, it really opened some eyes in Congressional offices. And that’s all because of the commitment of NIADA members to be in Washington and make sure their voice is heard.” Among the teams were a record 10 representing NIADA’s affiliated state associations. Teams from Georgia, North Carolina, South Carolina, Alabama, Texas, Ohio, Pennsylvania, Colorado, Florida and New Mexico visited all or most of their representatives and senators. “This was a great opportunity to actually sit down face-to-face with decision-makers and really allow them to understand – not just tell them – our point of view and the issues we’re facing,” said Tamaria Yarbrough of First Class Auto Sales in Pleasant Grove, Ala. “To actually be able to

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Among the teams were a record 10 representing NIADA’s affiliated state associations. educate them on how those issues affect our businesses, as well as our customers, is vital.” Once again, NIADA’s teams focused on the issues of automotive recalls and the Consumer Financial Protection Bureau. Dealers urged Congress to reject calls for a complete ban on sales of vehicles with open recalls, pointing out that independent dealers by law cannot make recall repairs and grounding those vehicles would have devastating effects on small businesses and consumers. They also expressed support for the Financial CHOICE Act, an alternative to the controversial Dodd-Frank Act that, among other provisions, would restructure the CFPB’s leadership from a single, unaccountable director – which was recently ruled unconstitutional by

NLC

NATIONAL LEADERSHIP CONFERENCE & LS EUGMIMS LI TAT2I0V 1E 6

SEPTEMBER 26-29 • WASHINGTON, D.C.

MAKE

a federal appeals court – to a bipartisan five-member commission. In addition, the NIADA contingent pressed senators to act on S. 2663, the companion bill to H.R. 1737, which passed the House overwhelmingly last year and would rescind the disputed auto financing guidance action regarding dealer discretion on interest rates issued by the CFPB in March 2013 and provide a more transparent and accountable process for dealing with the issue. The NLC’s opening day included a new event, the inaugural Friends of the Auto Industry Congressional Member Reception, which brought six Congressmen – Reps. Roger Williams (R-Texas), Tom Reed (R-N.Y.), Steve Pearce (R-N.M.), Jeff Denham (R-Calif.), Kevin Yoder (R-Kan.) and Bill Posey

YOUR

VOICE

HEARD

(R-Fla.) – to the Dupont Circle Hotel for a meet-and-greet with conference attendees. Williams, himself a car dealer in Weatherford, Texas, said overregulation from the federal government has made past eight years “the toughest it’s been to be in business as an auto dealer. … If there ever was a time for this industry – the independent auto dealers – to stand up and say enough is enough, it’s now.” Yoder – like Williams, a member of the Congressional Auto Caucus – praised the dealers in attendance for their tenacity and for taking the initiative to make the trip to D.C. “We know most of the jobs in this country are created by small business owners, entrepreneurs, people getting up every day and putting everything they’ve CONTINUED ON PAGE 60 WWW.NIADA .COM / NOVEMBER 2016 /

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got into their business,” Yoder said. “And they watch Washington D.C. put more burdens and pressure on them every single day. “We get that, but you coming up here and reminding us of that is very helpful, because this town is very forgetful. We’re happy to be soldiers in the army for free enterprise and entrepreneurship and opportunity for every American, and it starts with mom and pop companies all across this country.” Featured speakers also included Sen. Joe Donnelly (D-Ind.), who spoke at the PAC Cup dinner, and Rep. Henry Cuellar (D-Texas), who addressed attendees during the Day on the Hill at a luncheon in the historic Kennedy Caucus Room of the Russell Senate Building. Donnelly, a former small business owner

who called independent dealers “the embodiment of the American dream,” expressed concern about the negative impact on small business of the CFPB and other federal regulatory agencies. “I’m an elected representative of Indiana,” he said. “I am not part of a regulatory government agency. If we regulated like some of them, we’d all be thrown out on election day. … That’s where the CFPB has to understand it’s not all academic. It’s not all on a piece of paper. It’s real life.” Like Donnelly, Cuellar also criticized overregulation by the CFPB and others, telling dealers that Congress must create “legislation to stop the bad regulations that might affect you and try to either change it, modify it or stop it completely.” Cuellar told dealers their annual visit to Washington is important to educate

legislators about their industry and how policies set in Washington affect them in the real world. But he added that process must continue when the dealers return home, and urged them to invite their representatives and senators to visit their businesses. “You can e-mail, you can send a letter, you can make a phone call, but there is nothing like sitting down with a member of Congress or a senator or their key staff and explaining how something is positive or something is negative,” he said. “That is why it’s very important for you to keep making these trips. “There’s nothing like a show and tell. What does that mean? If you want members to understand your industry better, invite them to your industry. … Everybody has a member of Congress. Everybody has two senators. Invite them over whenever you

/ NOVEMBER 2016 / WWW.NIADA .COM

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can. … Go over the rules and regs you have to deal with.” In addition to legislators, representatives of several federal regulatory agencies spoke to attendees, providing regulatory updates and answering specific compliance questions from dealers. The speakers included John McNamara of the CFPB, Lois Greisman of the Federal Trade Commission, Department of Labor branch chief Derrick Witherspoon and Daniel Mosteller of the Department of Justice. That afternoon, the keynote speaker, author and political consultant Ralph Reed, offered an analysis of the current election season. The day was capped by the awarding of the coveted NIADA-PAC Cup, the prize of a fundraising effort in which the association’s four regions compete to contribute the most money to the NIADA-

PAC fund between the NIADA Convention and Expo in June and the NLC. Region II – the Carolinas, Georgia, Florida, Alabama, Tennessee and Kentucky – won the Cup fundraising competition for the third consecutive year by raising $28,500, barely defeating Region III (Midwest), which raised $27,350, thanks to a flurry of lastminute donations. Between them, the four regions contributed $79,850 to the NIADAPAC fund, a record for the competition, surpassing last year’s total by more than $23,000. More than $61,000 was contributed during the NLC. “This is an important event for us because the funds raised will advance our industry and help elect legislators who will work to support our industry and small business,” NIADA president Billy Threadgill said. “The winners here are all of our dealer members.”

That’s the takeaway not only for the PAC Cup, NIADA CEO Steve Jordan said, but for the entire National Leadership Conference and Legislative Summit. As NIADA’s presence in Washington continues to grow, so will the effects of having that seat at the table – to the benefit of independent vehicle dealers nationwide. “Four years ago, we felt it was really important for us to come back to Washington D.C. in a meaningful way and really talk about the independent dealer – who we are, what we do and what we represent,” Jordan said. “I’m really excited to see this event grow into what it is today. “For as much as we’ve succeeded, we still have much more work to do as we continue to advocate on behalf of our dealers and assist our members in telling their stories.” Andy Friedlander is NIADA director of communications and editor of Used Car Dealer magazine.

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EVENT SPOTLIGHT

NIADA National BHPH Summit Dec. 6-8, Dallas Ready to reach new levels of excellence in the Buy Here-Pay Here sphere? The chance to do just that is coming soon at the inaugural NIADA National BHPH Summit. The latest step in NIADA’s evergrowing commitment to serve the Buy Here-Pay Here industry, the National BHPH Summit, set for Dec. 6-8 at the Embassy Suites DFW Airport North, is poised to become the BHPH world’s biggest event of the year. The Summit features the BHPH-specific insight and experience of NIADA national director of 20 Groups Chuck Bonanno and NIADA Dealer 20 Groups moderators/ consultants David Brotherton and Mark Dubois as well as other top BHPH speakers and compliance specialists. The education sessions encompass all areas of a Buy Here-Pay Here operation, including sales, underwriting, collections, service, inventory management, compliance, marketing technology, social media and more – plus industry

benchmarks, a regulatory update and strategies to succeed in 2017. With all that information available, the Summit isn’t just for dealer principals. It’s for all staff members involved in the operation, including owners, managers, collectors and sales and service staff. Which is why discounts are available for dealerships that bring multiple attendees. There are also a discounts for NIADA Dealer 20 Group members. “We are excited to host the BHPH Summit,” Bonanno said. “It is the industry-leading event for all executives, managers and team associates involved in all aspects of BHPH, including inventory acquisition, reconditioning, sales and marketing, underwriting and collections, compliance and technology. “Please don’t miss this event. It will change your world.” For more information or to register, visit www.niadabhphsummit.com, email diann@niada.com or call 888906-2705.

CHUCK BONANNO

/ NOVEMBER 2016 / WWW.NIADA .COM

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AUTO AUCTION DISCOUNT PACKAGES The calendar year auction directory listing packages below include the following exposures:

· L istings printed monthly in the printed version of Used Car Dealer Magazine (distributed to all NIADA dealer members and all NAAA members nationwide)

NATIONAL ONLINE

AUCTIONVCOMMERCE.COM

Contact: Kelly Bianchi

P: 855.998.8266

kelly@auctionvcommerce.com Locate, Rate, & Review Online Auto Auctions

“Think Outside the Blocks”

ABC BIRMINGHAM

·W ithin the online version of the magazine at www.usedcardealermagazine.com

P: 205.640.4040 F: 205.640.3071

· · · · ·

f ull contact info up to three employee lines all sale dates and times up to 10 consignor notations one color logo

1046 AE Moore Dr. • Moody, AL 35004

General Manager: Russ Sapp AGM / Fleet Lease: Roy Caldwell SALE DAY: Every Wednesday at 10:15 am Major Accounts: Santander Consumer USA,

Option B- $840 yearly

(paid up front for the year by Nov. 15, $70/month)

· · · · ·

f ull contact info up to five employee lines all sale dates and times unlimited consignor notations up to three color logos

To list your auction in this directory, or for more information, contact Chase Tidwell at 817-640-3838 chase@niada.com

www.dealersauto.com

General Manager: Ramey Snider Sales Manager: Stefanie Uebelsteadt Fleet/Lease Manager: Cynthia Cofer SALE DAY: Every Thursday at 9:00am CST 1:00pm CST

· On NAAA’s website at www.naaa.com

(paid up front for the year by Nov. 15

P: 251.338.7653 F: 251.338.1687

Monthly GSA Public Sale: Thursday at

ALABAMA

Option A- $695 yearly

3030 McVay Drive North • Mobile, AL 36606

In-Op Sale biweekly at 8:45am CST

·O nline at www.niada.com along with a free hyperlink to your auction website

2017 NIADA/NAAA AUCTION DIRECTORY LISTING PACKAGES

DEALERS AUTO AUCTION OF MOBILE

CARMAX ALABAMA

CarMax Birmingham 2696 John Hawkins Pkwy. • Hoover, AL 35244 Every Tuesday at 2:00pm

We feature consignments from the area’s

largest new car franchise stores as well as Remarketing by Element, ARI, Automotive Remarketing Inc., Consolidated Asset Recovery, Check Into Cash, Arms Across America, and many more!

SHOALS NORTH ALABAMA AUTO AUCTION

651 Fairgrounds Rd • Muscle Shoals, AL 35661 www.snaaa.com

P: 256.232.0201 F: 256.232.8822 www.dealersauto.com

General Manager: Roger Fields Operations Manager: Terrence Cartwright Fleet/Lease Manager: Missy McCormack SALE DAY: Every Thursday at 9:00am CST

500+ consignments every week from new and used car dealers and fleet/lease

P: 916.991.5555 F: 916.991.5445 www.brasherssac.com

6801 Colony Street • Bakersfield, CA 93307

SALE DAY: Every Tuesday at 6:00 PM

Every Monday & Thursday at 1:00pm

DEALERS ONLY

Featuring New car trades from 10+ new car stores and repos from several local and national lenders.

CARMAX CALIFORNIA CarMax Bakersfield

Every Wednesday at 2:00 pm

CarMax Buena Park

6100 Auto Center Drive • Buena Park, CA 90621

CarMax Duarte

1131 Central Avenue • Duarte , CA 91010 Every Tuesday & Friday at 9:30am

CarMax Fresno

7180 North Palm Avenue • Fresno, CA 93650 Every other Wednesday at 9:30am

CarMax Irvine

9501 Research Drive • Irvine, CA 92618 Every Monday & Thursday at 8:00am

ARIZONA CarMax Phoenix 1041 N. 99th Ave • Tolleson, AZ 85353

26125 US Highway 72 • Athens, AL 35613

6233 Blacktop Road • P.O. Box 73000 Rio Linda, California 95673

General Manager: Jason Isbell 256.443.2836 • jason@snaaa.com Office Manager: Sue Amerson 256-381-2745 • sue@snaaa.com Sales: Sodonia Barnes 256.263.8990 • sodonia@snaaa.com

CARMAX ARIZONA

DEALERS AUTO AUCTION OF HUNTSVILLE

ADESA BRASHER’S

P: 256.381.2745 F: 256.381.2773

CALIFORNIA

ALABAMA - CALIFORNIA

NAAA & NIADA have teamed up to provide all NAAA member auctions a discount on Used Car Dealer magazine's monthly auction directory listings.

AUTO AUCTION DIRECTORY

Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

CarMax Oxnard

2001 Lockwood Street • Oxnard, CA 93036 Every Wednesday at 9:30am

CarMax Sacramento

1000 Nichols Drive • Rocklin, CA 95765 Every Monday at 9:30am

CarMax Sacramento South

8185 E. Stockton Blvd. • Sacramento, CA 95828 Every Monday at 2:00pm

Visit www.carmaxauctions.com today for more information.

We feature consignments from Remarketing

by Element, ARI, Automotive Remarketing, Inc., Consolidated Asset Recovery, LeasePlan, PACE Financial, and many more!

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COLORADO - FLORIDA

COLORADO CARMAX COLORADO

CarMax Colorado Springs 4010 Tutt Boulevard. • Colorado Springs, CO 80922 Every Monday at 9:30am

CarMax Parker 18220 Ponderosa Dr. • Parker, CO 80134 Every Monday at 1:30pm

Visit www.carmaxauctions.com today for more information.

CONNECTICUT CARMAX CONNECTICUT

SOUTHERN AUTO AUCTION

161 South Main Street • P.O. Box 388 East Windsor, CT 06088 P: 860.292.7500 F: 860.292.7598 www.saa.com

CarMax Hartford 89 Weston St. • Hartford, CT 06120

Visit www.carmaxauctions.com today for more information.

CENTRAL AUTO AUCTION

CLOSEST INDEPENDENT AUTO AUCTION TO NEW YORK CITY 185 Welton Street • Hamden, CT 06517

DELAWARE CARMAX DELAWARE

CarMax Delaware 2070 Stafford Way • Newark, DE 19711 Every other Tuesday at 2:00pm

Visit www.carmaxauctions.com today for more information.

P: 203.787.2277 F: 203.787.6564 www.centralaa.com

DISTRICT OF COLUMBIA

Manager: Gordy Zaritsky SALES every Saturday at 10:00am.

all vehicles on Simulcast.

“First Ct Sale Of The Week - Fresh Cars, Fresh Buyers”. Centralaa.com

CAPITAL AUTO AUCTION

1905 Brentwood Road, N.E. • Washington, DC 20018

CARMAX FLORIDA

ADESA ORLANDO

CarMax Boynton Beach 2000 Highridge Road • Boynton Beach, FL 33426

2851 St. Johns Parkway • Sanford, FL 32772

Every Wednesday at 2:00pm

P: 407.328.7300 F: 407.321.4466 www.ADESA.com/Orlando

7420 State Road 84 • Davie, FL 33317

CarMax Ft. Lauderdale

Every Monday at 9:00am

CarMax Ft. Myers

3000 Colonial Blvd. • Ft. Myers, FL, 33966 Every Thursday at 3:00pm

CarMax Jacksonville

11335 Atlantic Blvd. • Jacksonville, FL 32225 Every Monday at 9:00am

CarMax Miami

1300N.W. 98th Court • Miami, FL 33172 Every Monday at 1:30pm

CarMax Orlando

6375 S. Semoram Blvd. • Orlando, FL 32822 Every Monday at 9:00am

CarMax Tampa

BSC AMERICA TALLAHASSEE AUTO AUCTION

5249 Capital Circle, SW • Tallahassee, FL 32305 P: 850.878-6200 F: 850.942-9830

Every Monday at 9:30am

FLORIDA

www.bscamerica.com drodriguez@bscamerica.com

General Manager: Doug Rodriguez Fleet Lease Manager: John Coukoulis Operations Manager: Tim Myrick Sales Managers: Vann Lane, Angela Messick

14920 North Nebraska Ave. • Tampa, FL 33613 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

& Michael Phifer

YOUR AUCTION TAMPA BAY

3010 Scherer Drive St. • Petersburg, FL. 33716

P: 727.572.8800 F: 727.556.0889 www.yourauctiontampabay.com

VP/General Manager: Marc Rickey GSM: Bill Lynes AGM: Mario Allmond Office Manager: Kellie Kaser Operation Manager: Mark Porter

Every Tuesday at 4:00pm - 200+ units Every Wednesday 3:00pm start time

8 lanes of total excitement 800 + Units Per Week 85% New Car Trades

“The Home Of Incomparable Customer Service”

P: 202.269.3361

www.capitalautoauction.com dc@capitalautoauction.com

Charity donations, FBI field agent cars, consignments, boats, trailers, & RVs. The public is welcome. Check our website for weekly sales lists.

YOUR AUCTION MOBILE

3017 Palm Beach Blvd. • Fort Myers, FL. 33916

P: 239.461.5590 F: 239.332.4840 www.yourmobileauction.com

General Manager: Ryan Rickey Office Manager: Jessica Ryan Operation Manager: Justin Wold Sunset Automotive

5989 Clark Center Ave.• Sarasota, Fl. 33912

Headquarters Toyota

5895 Nw 167th St. • Miami, Fl. 33015

Scanlon Sutherlin Mega Sale

14101 Tamiami Trail Ft. • Myers, Fl. 33912

Sutherlin Nissan Orlando

8125 E. Colonial Drive • Orlando, Fl. 32817

Palm Auto Mall

1901 S. Tamiami Trail • Punta Gordan Fl. 33950

Eagle Buick GMC

1275 Suncoast Blvd. • Homosassa, Fl. 34448 Please contact Ryan Rickey or staff for time and dates

P: 866.924.7070 F: 239.332.4840 / 239.461.5590

“The Home Of Incomparable Customer Service”

/ NOVEMBER 2016 / WWW.NIADA .COM

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GEORGIA CarMax Norcross

1975 Beaver Ruin Road • Norcross, GA 30071 Every Monday at 1:30pm

CarMax Southlake 3100 Mt. Zion Pkwy. • Stockbridge, GA 30281 Every Wednesday at 2:00pm

CarMax Town Center

1215 Ernest Barrett Pkwy. • Kennesaw, GA 30144 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

DYER AUTO AUCTION

KANSAS

P: 815.874.7800 F: 815.874.1325 Toll Free: 800.830.4722

P: 219.865.2361 IL: 773.731.6181

CARMAX KANSAS

www.dyerauction.com for pre-sale inventory!

5937 Sandy Hollow Road • Rockford, IL 61109

www.GRAA.net info@graa.net www.facebook.com/greaterrockfordaa

President: Mark Clark General Manager: Chad Anderson Inside Sales Manager: Keeley Capriola SALE DAY: Established in 1974, full service

641 Joliet Street • Dyer, IN 46311

Contact: Mike Dean

WEDNESDAY 1:00pm

Hundreds of vehicles from ENTERPRISE and other rental and leasing companies FRIDAY 9:00am 9:00am Donation Vehicles 9:30am Regular Sale

Featuring:

2 LEASE LANES 2 NEW CAR TRADE LANES 4 LANES OF DEALER CONSIGNMENT

CarMax Kansas City

6801 E. Frontage Rd • Merriam, KS 66204 Every Tuesday at 2:00pm

GEORGIA - LOUISIANA

CARMAX GEORGIA

GREATER ROCKFORD AUTO AUCTION

Weekly Cash Drawings! Special Party Sales!

KENTUCKY ABC BOWLING GREEN

555 Blue Grass Blvd. • Bowling Green, KY 42104

P: 270.781.2422 F: 270.781.5361

ILLINOIS

INDIANA AUTO AUCTION

4425 W. Washington Center Rd • Fort Wayne, IN 46818

ABC ST. LOUIS

721 S. 45th St. • Centreville, IL 62207

P: 618.332.1227 F: 618.332.1228

General Manager: Todd Ritter Ass’t General Manager: Brian Hockett Fleet Lease: Duane Tabor SALE DAY: Every Thursday at 9:30 am Major Consignors: GM Financial, ally, ARI,

INDIANA CARMAX INDIANA CarMax Indianapolis

9750 North Gray Rd. • Indianapolis, IN 46280 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

P: 260.489.2776 F: 260.489.5476 www.indianaautoauction.net

General Manager: Eric Autenrieth Fleet/Nat. Accts. Manager: Jeff Aisel Thursday Consignment Sale: Repos 10:00am, F/L 10:30, Dealer Consignment 10:30 (weekly).

CARMAX ILLINOIS

CarMax Hillside 101 N. Wolf Road • Hillside, IL 60162 Every other Monday at 1:30pm

CarMax Naperville

3320 Odyssey Ct. • Naperville, IL 60563 Every Tuesday at 1:30pm

CarMax Schaumburg

250 E. Golf Rd. • Schaumburg, IL 60173 Every Monday at 9:00am

CarMax Tinley Park 18800 S. Oak Ave. • Tinley Park, IL 60477 Every Tuesday at 9:00am

Visit www.carmaxauctions.com today for more information.

CLARK COUNTY AUTO AUCTION 1611 Highway 62 • Jeffersonville, IN 47130

P: 812.283.5555 F: 812. 288.0834

www.clarkcountyaa.com Member of NAAA & NIADA Serving the Louisville, KY Metro Area

General Manager: Jim Dodd Fleet Lease: Alex Fatzinger SALE DAY: Every Friday at 8:45 am Major Consignors: Santander Consumer USA,

Chrysler Capital, ARI, C & F Finance, CNAC, Consolidated Asset Recovery, Donlen Corp., Element Financial, Lease Plan, Nicholas Financial, Prestige, Primeritus, UACC

CARMAX KENTUCKY CarMax Louisville

9550 Bluegrass Pkwy • Louisville KY 40299 Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

IOWA CARMAX IOWA

LOUISIANA

10315 Hickman Road • Urbandale, IA 50322

ABC BATON ROUGE

CarMax Des Moines

Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

3960 Blount Rd. • Baton Rouge, LA 70807

P: 225.778.3737 F: 225.778.4030

Owner/Operator: Butch Royall General Manager: Coney Chancellor Fleet/Lease Manager: Joe Hockett SALE DAY: Thursday, 9am

A full Service Facility featuring 600 vehicle Sale-Weekly Consignment from Ally Bank, Chrysler Capital, CapitalOne, Santander, Westlake, GE, ARI, Element,Merchants Remarketing, Caprock Remarketing

WWW.NIADA .COM / NOVEMBER 2016 /

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LOUISIANA - NEBRASKA

LOUISIANA’S 1ST CHOICE AUTO AUCTION

CAPITAL AUTO AUCTION

P: 985.345.3302 F: 985.345.5735

www.capitalautoauction.com th@capitalautoauction.com

18310 Woodscale Road • Hammond, LA 70401 info@lafcaa.com • www.lafcaa.com

5001 Beech Road • Temple Hills, MD 20748 P: 301.316.4980 Manager: Gordy Zaritsky

Sales every Saturday at 9:00am. Internet auction

CARMAX MARYLAND

MINNESOTA

MISSOURI

CARMAX MINNESOTA

CARMAX MISSOURI

6900 Lakeland Ave N. • Brooklyn Park, MN 55428

4990 N. Service Road • St. Peters, MO 63376

CarMax Brooklyn Park

Once a month on Monday at 9:30am

Every other Monday at 2:00pm

Visit www.carmaxauctions.com today for more information.

MID-STATE AUTO AUCTION

KCI KANSAS CITY

310 Bach Avenue • P.O. Box 100 New York Mills, MN 56567

CarMax Laurel

8800 Freestate Dr. • Laurel, MD 20723 Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

MASSACHUSETTS

CarMax St. Louis

P: 218.385.3777 F: 218.385.3232 Toll Free: 800.458.5506

www.msaanym.com • msaanym@arvig.net

President & Manager: Robin R. Thompson Transportation Manager: Wendy Windels Fleet Lease Manager: Dee Sullivan Consignment Sale - Four Lanes Friday 10:00am.

Featuring: Advanced Remarketing Services, ARI,

11101 N. Congress Ave • Kansas City, MO 64153

P: 816.502-3318 F: 816.801.8565 www.kciaa.com

General Manager: Doug Doll AGM of Sales: Jennifer Leocardi SALE DAY: • Every Thursday – 9:00am

• Equipment Auctions as scheduled/ Thursdays – 12:00pm • GSA Public Sales as scheduled/ Thursdays – 1:00pm • Monthly Promo Event Sales as scheduled/ Thursdays

CENTRAL MASS AUTO AUCTION 12 Industrial Park Rd East • Oxford, MA 01540

P: 508.987.8396 F: 508.987.6430

MARYLAND AUTO AUCTION OF BEL AIR 803 Bel Air Road • Bel Air, MD 21014

P: 410.879-7950 F: 410.893.1515 www.bscamerica.com

www.cmaainc.com info@cmaainc.com

Managing Partner: Joe Smalley, Sr. General Sales Manager: Luke Semmelrock Online Sales Support: Jessica Groccia SALE DATE: Thursday 8:30am. Auction Features: Front Line Dealer Consignment,

Thursdays 8:45 am –

Features 2000 units weekly from GM Financial,

LYNNWAY AUTO AUCTION

400 Charter Way • North Billerica, MA 01862

P: 781.596.8500 F: 781.581.5033 www.lwaa.com

President: Jim Lamb Vice President: George Russo VP of Operations: Richard Delfino SALE DAY: Every Wednesday: 9:00am

NEBRASKA MISSISSIPPI REA BROTHERS' MID-SOUTH AUCTION

1657 Old Whitfield Road • Pearl, MS 39288-7509

P: 601.956.2700 F: 601.956.5603 www.midsouthaa.com

Owners: John Rea & Jimmy Rea Sales Manager: Stacy Alexander SALE DAY: Every Tuesday at 9:45AM Featuring: Ally Auto Remarketing, Hyundai,

Mid~South Auction

AUCTIONEER LIC. # 717

Luxury, Foreign & Domestic, Trucks, Classics, Specialty. Online Simulcast: All 8-Lanes via AuctionPipeline

LINCOLN AUTO AUCTION

11909 Highway 6 • Waverly, NE 68462

Toll-Free: 800.830.3191 Local: 402.475.5500 F: 402.475.5508 www.lincolnautoauction.com

General Manager: Ryan Durst SALES DATES:

Every Wednesday 10am CDT. GSA Sales: Call for details & schedule.

YOUR NEW CAR TRADE HEADQUARTERS: Featuring Over 45 new car stores. Float Sales. Every Sale.

NEBRASKA AUTO AUCTION 7500 N. 56th St. • Lincoln, NE 68514

P: 402.466.8477 F: 402.466.7932

www.nebraskaautoauction.com SALE DAY: Every Tuesday: 10:00am CT ‘For Dealers by Dealers’

Large Consignments, High Sales%, Friendly Staff, Wide Variety, Quality Inventory, No Hassles, Fast Service, Full Dealer Services. NEBRASKA AUTO AUCTION

/ NOVEMBER 2016 / WWW.NIADA .COM

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NEW JERSEY

CARMAX NEVADA

CARMAX NEW JERSEY

1000 W. Warm Springs Rd.• Henderson, NV 89014

620 Cross Keys Rd • Sicklersville, NJ 08081

CarMax Las Vegas

Every Wednesday at 9:00am

At CarMax Auctions, our mission is to provide our customer with an honest, open, and dealer-friendly auto auction with exceptional customerservice. • 97-100% Sales Rate • Dealer-Only Auctions • Conditional Announcements

Visit www.carmaxauctions.com today for more information.

NEW HAMPSHIRE AUTO AUCTION OF NEW ENGLAND Exit 4 off Interstate 93 • 8 Action Boulevard Londonderry, NH 03053

P: 603.437.5700 F: 603.437.5800 www.aane.com

President: William P. DeLuca III General Manager: Steven DeLuca Director Sales & Marketing: Michele Pierog Sale Thursday 9:15am

Featuring: 6 Auction Lanes, 2 Fleet/Lease Lanes.

P: 607.565.8151 F: 607.565.8659

Every other Tuesday, at 9:30am

President/Owner: Jeff Barber Commercial Accounts: Neal McEwen Sales Manager: Jim Terwilliger SALE DAY: 8 Lanes Every Friday at 9:20

Visit www.carmaxauctions.com today for more information.

The public is welcome. Check our website for weekly sales lists.

GREENSBORO AUTO AUCTION INC. 3907 West Wendover Avenue • Greensboro, NC 27407

P: 336.299.7777 F: 336.854.2689 www.greensboroaa.com

Tri City Blvd, Greensboro

Every other Tuesday at 9:30am

Ford Factory & Chrysler Motors Factory every other week, call for sale dates & times or visit greensboroaa.com/calendar

Main Facility – Wendover Ave., Greensboro -

NORTH CAROLINA

Kia & Mitsubishi sales the first Wednesday of every month, Subaru Factory and Hyundai Factory as inventory permits.

CARMAX NORTH CAROLINA CarMax Charlotte

Visit www.carmaxauctions.com today for more information.

www.capitalautoauction.com nh@capitalautoauction.com

Manager: George Frey SALE DAY: Every Saturday at 11:00am.

CarMax Albuquerque

Monthly on Monday at 9:30am

P: 603.622.9058

www.statelineauto.com

CARMAX NEW MEXICO

3600 Henrietta Rd. • Rochester, NY 14623

190 Londonderry Turnpike • Manchester, NH 03104

830 Talmadge Hill South • PO Box 351 Waverly, NY 14892

CarMax Sicklersville

CarMax Rochester

CAPITAL AUTO AUCTION

STATE LINE AUTO AUCTION

7700 Krefeld Dr. • Charlotte, NC 28227 Every Monday at 9:30am

CarMax Hickory

OHIO

Every Monday at 2:00pm

ABC CINCINNATI

8520 Glenwood Ave. • Raleigh, NC 27612

P: 513.679.7910 F: 513.679.7913

1935 15th Avenue Place • Hickory, NC 28602

CarMax Raleigh

Every Tuesday at 9:00am

Visit www.carmaxauctions.com today for more information.

120 Ctiy Centre Dr. • Cincinnati, OH 45216

General Manager: Lee Schoenling Assistant General Manager: Tony Schoenling Fleet Lease: Monta Mller SALE DAY: Every Wednesday at 9:30 am and Friday at 10:00 am

Major Consignors: General Electric Federal Credit

Union, Kemba Credit Union, P.F.S.C, Element Financial, Titlemax, Westlake Financial

ROCHESTER-SYRACUSE AUTO AUCTION

1826 State Route 414 • P.O. Box 129 Waterloo, NY 13165

P: 315.539.5006 F: 315.539.9508 www.rsautoauction.com 23 years experience

Owner/GM: Scott Prankie Assistant GM: Marci Keear Fleet, Lease, Repos: Marci Keear/Scott Prankie SALE DAY: Every Thursday, 5 pm, Simulcast

on all 4 lanes.

Featuring: ARI, Credit Acceptance/VRS, Tebo Financial, Union Leasing, Exclusive Wheels Inc Seller, Mike Albert Leasing, and many local banks. Big Enough to Serve You! Small Enough to Care!!

ABC DETROIT/TOLEDO

9797 Freemont Pike • Perrysburg, OH 43551

P: 419.872.0872 F: 419.872.8617

General Manager: Jay Wilson Assistant General Manager: Joel Maltese Assistant General Manager: Andy Spain SALE DAY: Every Friday at 9:00 am Major Consignors: Chrysler Capital, ARI, ACC,

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CARMAX OHIO

OKLAHOMA

OREGON

12105 Omniplex Ct. • Cincinnati, OH 45240

CARMAX OKLAHOMA

ADESA NORTHWEST

CarMax Columbus

1121 E. Memorial Rd. • Oklahoma City, OK 73131

CarMax Cincinnati

Every Monday at 2:30pm

2700 Farmers Dr.• Columbus, OH 43235 Every Monday at 9:30am

CarMax Oklahoma City

Every Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

90485 Auction Way • Eugene, OR 97402

P: 800.905.3901 F: 541.689.6049 www.brashersnorthwest.com

General Manager: Mark Melton Regular consignment sale every Wednesday at 9:30am. RV Sales every 2nd and 4th Wednesdays

monthly.

Featuring: 8 lanes, Bank of America, ARI, Bank of the

4700 Groveport Road • Obetz, OH 43207

www.cfaa.com

www.daaokc.com

P: 614.497.2000 F: 614.497.1132

P: 405.947-2886 F: 405.943-8370

Owner/President: Gary Smith General Manager: Jon Reininger Fleet/Lease Manager: Mike Egdahl

Consignment Sale – Thursdays, 8:30am

Featuring: Ally Financial, Automotive Solutions, Avis

Z66 AUTO AUCTION

66 N Mingo Rd • Tulsa OK 74116

P: 918.794-0660 F: 918.794.0740 www.z66aa.com

GREATER CLEVELAND AUTO AUCTION “Everything We Touch Turns To SOLD”

5801 Engle Rd. • Brook Park, OH 44142

P: 216.433.7777 Toll Free: 800.929.4222 F: 216.676.4200 www.gcaacars.com

New Car Trades, Repossessions and Donations. Located minutes from Greater Cleveland International Airport. Full reconditioning and mechanical services available.

1457 Manheim Pike • Lancaster, PA 17601 Every other Wednesday at 3:00pm

CENTRAL PENNSYLVANIA AUTO AUCTION

41 Airstrip Drive • Mill Hall, PA 17751

DEALERS AUTO AUCTION

1028 S. Portland • Oklahoma City, OK 73108

CarMax Lancaster

West, Capital One Auto Finance, Wells Fargo Dealer Services, Fiserv, Synchrony Bank, Wells Fargo, Key Bank, Kendall Auto Group, Hertz Car Sales. NORTHWEST

COLUMBUS FAIR AUTO AUCTION

CARMAX PENNSYLVANIA

CARMAX OREGON CarMax Portland

13750 SE Johnson Rd. • Milwaukie, OR 97222 Every other Monday at 9:30am

Visit www.carmaxauctions.com today for more information.

P: 570.726.4300 F: 570.726.7841 www.cpaautoauction.com

President/C.E.O: Grant Miller Vice President/C.O.O: Doug Miller Fleet/Lease Manager: Shanan Miller SALE DAY: Every Thursday at 10:00 am

PENNSYLVANIA ABC LANCASTER

1040 Commercial Avenue East • Petersburg PA 17520

P: 717.569.5220 F: 717.569.3109

Friday at 11:30 Specialty Sale last Friday of the month at 11:30 Tulsa’s FIRST and ONLY 7 lane auction! Average consignment 850 units per week. New car trades, REPOS and Fleet Lease

CORRY AUTO DEALERS EXCHANGE 12141 Route 6 • Corry, PA 16407

P: 814.664.7721 F: 814.664.7724 www.corryade.com

President/Owner: Merle Swift Auction Manager/Owner: Tad Swift Sales Department: Jeri Elmquist Commercial Sales/Fleet: Holly Callan SALE DAY: Thursday, 10:00am Commercial Consignors: U-Haul, Element,

CAPITAL AUTO AUCTION

5135 Bleigh Avenue • Philadelphia, PA 19136

P: 215.332.2515

www.capitalautoauction.com pa@capitalautoauction.com

Manager: Gabe Piorko

Sales every Wednesday at 4:00pm & every Saturday at 11:00am.

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GARDEN SPOT AUTO AUCTION

1605 Apple St. P.O. Box 501 • Ephrata, PA 17522

www.gardenspotautoauction.com

General Managers: Omar Landis, Kristi Kohl Consignment Sale Every Tuesday starting at 10:00am “Push”/In-Op starting at 9:30am

Featuring: 5 Action Packed Auction Lanes. Floor Plan Financing Available Through AFC, Auto-Use, BSC and NextGear Capital.

DEALERS AUTO AUCTION OF MEMPHIS

www.rawlsautoauction.com

P: 901.480.4250 F: 901.345.5384

RAWLS AUTO AUCTION

CARMAX SOUTH CAROLINA

P: 803-657-5111 F: 803-657-6763

CarMax Columbia 555 Jamil Rd. • Columbia, SC 29210 Every Monday at 2:00pm

CarMax Greenville 2800 Laurens Rd. • Greenville, SC 29607 Every other Monday at 9:00am

MANHEIM CENTRAL PENN

General Manager: Jimmy Rawls Business Development: Angela Williams Fleet Lease Manager: Kelly Dodd SALES: Every Tuesday – Damaged & Disabled

@ 8:30am Early Bird @ 9:15am Fleet/Lease @ 10:00am GSA Sale once a month Utility sale as scheduled

2560 Rental Road • Memphis, TN 38118

www.dealersauto.com

General Manager: Phillip Butler Fleet/Lease Manager: Susan Perkins SALE DAY: Every Thursday at 9:00am CST.

In-Op Sale biweekly at 8:00am CST. CHRYSLER FACTORY SALE: Tuesday. Biweekly at 11:00am CST

TENNESSEE

DEALERS AUTO AUCTION OF MURFREESBORO

P E N N S Y LV A N I A - T E X A S

P: 717.738.7900 F: 717.738.7930

P.O. Box 3069 • Leesville, SC 29070

SOUTH CAROLINA

488 Firehouse Road • Grantville, PA 17028

P: 717.469.7900

www.manheim.com

F: 717.469.0311

General Manager: Sal Cuomo Office Manager: Shirley Kennedy Transportation/OVE: Joe Lipinsk SALE DAY Every Monday 12:00 Noon EST

Specialty Sale Location: YES TRA Sale Location: YES

CAROLINA AUTO AUCTION

P.O. Box 5677864 • Anderson SC 29623-5677 “The Right Choice”

P: 864.231.7000

F: 864.231.7900

www.carolinaautoauction.com

Owners: Henry & Patty Stanley General Manager: Eric Autenrieth Fleet Lease Manager: Sal Terranova Sales every WEDNESDAY at 10:00am.

Featuring: Our facility sits on over 92 acres with

MANHEIM PENNSYLVANIA

1190 Lancaster Road • Manheim, PA 17545

P: 717-665-3571 F: 877-605-0377 www.manheim.com

VP/General Manager: Joey Hughes Auction Manager: Darren Teague For complete details and auction specials “Like” us at facebook.com/manheimpa

CARMAX TENNESSEE CarMax Knoxville

11225 Parkside Dr. • Knoxville, TN 37934 Every Tuesday at 10:00am

CarMax Memphis

7771 Highway 64 • Memphis, TN 38133 Every Monday at 10:00am

CarMax Nashville

2353 Gallatin Pike N. • Madison, TN 37115 Every Monday at 10:00am

1815 Old Fort Pkwy • Murfreesboro, TN 37129

P: 615.217.2848 F: 615.217.6994

www.dealersauto.com

General Manager: Stephanie Baker Sales Manager: Matt Burch Fleet/Lease Manager: Nikki McCoy SALE DAY: Every Wednesday at 2:00pm CST

Monthly GSA Public Sale: Wednesday at 12:00pm CST.

SALE DAY: Every Friday: 8:30 am ET

DEALERS AUTO AUCTION OF CHATTANOOGA

RHODE ISLAND OCEAN STATE AUTO AUCTION

10 Industrial Drive • Exeter, RI 02822

P: 401.397.2801 F: 401.397-2474 www.osautoauction.com

General Manager: Leo Antonino Fleet Lease Manager: Jennifer Bickford SALE INFORMATION: All sales available

for online buying Weekly Sale Thursdays at 9:30am Weekly Inop & Salvage Sale Monthly Utility Sale – 3rd Thursday of Every Month at 9:30am

2120 Stein Drive • Chattanooga, TN 37421

CARMAX TEXAS

www.dealersauto.com

13300 North I-35 Service Road Southbound Austin, TX 78753

CHARLESTON AUTO AUCTION

P: 601.906.3004 F: 423.499.0304

651 Precast Lane • Moncks Corner, SC 29461

General Manager: Todd Rea Fleet/Lease Manager: Karin McKinney SALE DAY: Every Thursday at 9:00am EST.

“COUNT ON US”

P: 843.719.1900 F: 843.719.1909 www.charlestonautoauction.com

General Manager: Laura Taylor Fleet/Lease Manager: Chris Wise Assistant General Manager: Jay Davis Marketing/Sales Manager: Jason Moritz Sale Every Friday 10:00am. Damaged & Disabled

TEXAS

In-Op Sale biweekly at 9:00am EST. Tuesday Open Sale at 6:30pm EST.

Featuring: 400+ consignments every week

CarMax Austin

Every Tuesday at 2:00pm

CarMax Dallas/Irving

3100 Spur 482 • Irving, TX 75062 Every Monday at 9:30am

CarMax Ft. Bend

21930 Southwest Freeway • Richmond, TX 77054 Every Monday at 2:00pm

CarMax Ft. Worth

8400 Anderson Blvd. • Fort Worth, TX 76120 Every Monday at 2:00pm

CarMax Gulf Freeway

13100 Gulf Freeway • Houston, TX 77034 Every Monday at 2:00pm

CarMax Houston North

16110 North Freeway • Houston, TX 77090 Every Wednesday at 2:00pm

CarMax San Antonio

3611 Fountainhead Dr. • San Antonio, TX 78230 Every Tuesday at 9:30am

CarMax Southwest Freeway

6909 Southwest Frwy. • Houston, TX 77074 Every Wednesday at 9:30am

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TEXAS - WISCONSIN

UTAH

WASHINGTON

825 Rankin Road • Houston, Texas 77073

CARMAX UTAH

CARMAX WASHINGTON

fcaa@1stchoiceaa.com • www.1stchoiceaa.com

11213 South Jordan Gateway South Jordan, UT 84095

7814 E. Sprague Ave.• Spokane Valley, WA 99212

HOUSTON’S 1ST CHOICE AUTO AUCTION

P: 281.821.2300 F: 281/821-2977

CarMax Salt Lake City

Featuring: 8 acres, 6 lanes, 1500 cars weekly

Every other Monday at 10:00am

VIRGINIA ABC VIRGINIA

656 S. Military HWY • Virginia Beach, VA 23464

P: 757.487.3464 F: 757.487.0514

General Manager: Jason Brinkley Assistant General Manager: Nate Seeley Fleet Lease: Dody Nolan SALE DAY: Every Wednesday at 9:00 am Major Consignors: ABNB Federal Credit Union,

LUBBOCK AUTO AUCTION

1122 E. 34th Street • Lubbock, TX 79404

P: 806.744.1444 F: 806.763.1214 www.lubbockaa.com

General Manager: Monty Bond Office Manager: Shandyl Higgins Owner: Charles Furr SALE DAY: Every Thursday at 10am since 1946. Featuring: Oldest Independent Auto Auction in the

ARI, Consumer Loans America, CPS, Credit Acceptance/ VRS, Element Financial, General Services Administration Fleet, Michael Wayne Investments, Tidewater Motor Finance, Westlake Financial

info@tlsaa.com • www.tlsaa.com

Visit www.carmaxauctions.com today for more information.

BADGER STATE AUTO AUCTION

215 N. Pioneer Road N. • Fond Du Lac, WI 54937 P: 800-554-1126 F: 920-922-6823 www.badgerstateautoauction.com

General Manager: Tim Netz Sales Manager: Craig Storts Operations Manager: Lola Voskuil SALE DAY: every Thursday at 2:00pm.

DAA NORTHWEST

2215 S. Hayford Rd. • Spokane, WA 99224

P: 509.244.4500 F: 509.244.8244 www.daanw.com

General Manager: Greg Mahugh Northwest Regional Sales Mgr.: Steve Doyle SALE DAY Information: • Weekly Sales – Thursday at 9am

• Monthly Heavy Metal Sales- Thursdays at 8:30am • Monthly RV Sales at 11am • Monthly MotorSports Sales - Thursday at 12pm • Monthly Promo Sales as scheduled - Wednesdays & Thursdays

Featuring: Ally Auto Remarketing, Avis Budget

10400 Southpoint Pkwy. • Fredericksburg, VA 22407 Every Tuesday at 9:00am

CARMAX WISCONSIN CarMax Kenosha

8200 120th Ave.• Kenosha, WI 53142 Moved to weekly at 2:00pm

CarMax Richmond

11090 W. Broad St. • Glen Allen, VA 23060 3801 Bonney Rd. • Virginia Beach, VA 23452

2205 Country Club Dr. • Carrollton, TX 75006

CarMax Fredericksburg

CarMax Virginia Beach

P: 214-483-3597 Toll Free: 866-212-0821 F: 214-483-3814

Monthly on Wednesday at 9:30am

CARMAX VIRGINIA

Every Tuesday at 2:00pm

TEXAS LONE STAR AUTO AUCTION

CarMax Spokane

WISCONSIN

DAA SEATTLE

3130 D Street SE • Auburn, WA 98002

Every Wednesday at 2:00pm

P: 253.737.2200 F: 253.737.2201

General Manager: Dave Blake Northwest Regional Sales Mgr.: Steve Doyle SALE DAY: Information:

Visit www.carmaxauctions.com today for more information.

www.daaseattle.com

• Weekly Sales – Friday at 9:30am

• Monthly Heavy Metal Sales - every other week • Monthly Promo Sales as scheduled - Friday at 9:30am

FEATURING:

SALE DAY: Every Tuesday at 2:00pm Franchise

ARI, Avis Budget Group, Fox Rent A Car, OneMain Remarketing, PAR North America, Remarketing of America, Wheels, Inc and more.

and dealer consignments And Auctions Every Thursday at 2:00pm Franchise and dealer consignments

RICHMOND AUTO AUCTION “Driven to Provide the Best”

3600 Deepwater Terminal Rd • Richmond VA 23234

P: 804.232.7355 F: 804.232.1818 www.RichmondAA.com

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O C T O B E R 2 0 1 6 Volume 49 | Number 10

FEATURES

the November 26 Reinventing Elections Through Your Vote

NIADA senior VP of legal and government affairs Shaun Petersen provides a preview of the candidates’ economic plans that could shape your future.

36 Knowledge Is Money Gary Biskup of EFG Companies explains that to get more loans approved, all you have to know is two things: your lenders and your customers.

42 Joe’s Garage: Gold-Medal Effort NIADA’s Joe Lescota offers a reminder to focus like an

Olympian and run your business as though your life depended on it – because it does.

48 A Soft Touch Adding a soft-pull finance application to your website gives customers what they want while providing your dealership with crucial information.

WHAT’S INSIDE

08 10 12 14 16 18 20 22 24

The Road Ahead Washington D.C. Update FTC Perspectives Industry Insider Management Matters Marketing Matters Association News Entrepreneurial Spirit Industry News

IN EACH ISSUE 6 Frontline

ONLINE

Read us online at:

www.usedcardealermagazine.com Click on ads to link directly to their website. Visit us on Facebook and LinkedIn

FEEDBACK

NIADA’s Dan Reel and Ray Chorfi are among the industry’s top young talent recognized by Auto Remarketing; NextGear Capital president Brian Geitner takes over Cox Automotive’s Media Solutions Group; Cars.com will be spun off into a separate, publicly traded company by its parent company; a study shows displaying a code of ethics is good for business; and more.

52 Industry Calendar

NIADA’s inaugural National BHPH Summit, coming in December, is poised to become the Buy Here-Pay Here world’s biggest event of the year.

Used Car Dealer Wants To Hear FromYou. Tell Us What You Think! Used Car Dealer encourages its readers to send comments, opinions and suggestions about the publication for reprint. Letters can by emailed to editor@niada.com. Include your full name, address and phone number. We are unable to publish all letters and may edit letters for length and clarity. This is a great opportunity to hear back from our readers on what you think about the articles and what topics you would like to see covered in future issues.

/ OCTOBER 2016 / WWW.NIADA .COM

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The Official Magazine of

Steve Jordan Andy Friedlander Chase Tidwell Christy Haynes Publishers Press

ATLANTA, GA Visit this link and register today! www.niadacmd.com

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Frontline NIADA’s Reel, Chorfi Recognized Among Industry’s Top Young Talent

NIADA members Dan Reel and Ray Chorfi are among the automotive industry rising stars featured in the 2016 edition of Auto Remarketing magazine’s “40 Under 40.” Auto Remarketing started the annual “40 Under 40” last year to recognize and celebrate “current and next-generation leaders of the business who are making big differences in the industry and at their companies.” Reel, 37, is co-owner and vice president of Reel’s Auto Sales in Ordwell, Ohio, as well as an NIADA Certified Master Dealer and past president of the Ohio IADA. This year he was named Ohio Quality Dealer of the Year and was first runner-up for NIADA’s National Quality Dealer award. “What I enjoy the most about the business,” he told Auto Remarketing, “is being able to provide an opportunity for my staff to personally and professionally grow, the ability to give back to the community in any way possible and to constantly learn new methods to operate our business.” Chorfi, 35, is president of Dallas Pre-Owned Auto Group in Carrollton, Texas, an operation he started from the ground up and has grown into a successful dealership that sells vehicles nationwide through its strong online presence. “I am proud of my humble beginnings from a one-man operation to the current team we have, without whom none of this would be possible,” he told the magazine. “I’m also proud of the fact we are trying to change customers’ perception of the industry, one customer at a time.”

Cars.com to Be Spun Off by Corporate Owner

Survey: Ethics Code Can Draw Customers

A recent survey showed consumers still don’t trust car dealers – and found they’re more likely to shop at a dealership that displays a code of ethics. According to the online survey conducted by compliance auditing firm Total Dealer Compliance, nearly 65 percent of consumers polled said they believe dealership business practices are unethical. But more than 50 percent said they would be more likely to shop at a dealership that displays its code of ethics – such as the NIADA Code of Ethics – in the showroom and on its website. “A code of ethics is designed to reinforce a dealer’s personal commitment to quality service and high ethical standards,” TDC president Max Zanan said. “Our survey confirmed that the trust between the consumer and car dealer is truly broken. Ensuring a code of ethics is on display will be the first step in rebuilding the consumer’s trust, where compliance is a top priority.” Even so, 40 percent of the respondents said a visible code of ethics would not make a difference to them. “Car dealers have a lot of work to do when it comes to changing the public’s perception,” Zanan said.

NextGear’s Geitner to Head Cox Automotive Media Solutions Group

Brian Geitner, who founded what is now NextGear Capital and served as president of the Financial Solutions Group for Cox Automotive, has been named president of Cox Automotive’s Media Solutions Group. Geitner will oversee Cox’s Autotrader, Kelley Blue Book and Dealer.com brands. “We are thrilled to have Brian lead the Media Solutions Group and continuing to oversee the evolution of marketplace to matchmaker, positioning the businesses to bring the right buyer to the right customer through an experience that leaves both parties fulfilled,” Cox Automotive chief operating officer Mark O’Neil said. Geitner founded floorplan provider Dealer Services Corp. in 2005, building it into a successful operation that was purchased by Cox Automotive in 2012. Within a year, DSC was merged with Manheim Financial Services to create NextGear Capital and Geitner was installed as president of the combined operation. Last year, Geitner was promoted to head of the Financial Solutions Group as well as retaining his position with NextGear. Manheim senior vice president of vehicle solutions Shane O’Dell, one of DSC’s founding members and former COO of NextGear Capital, will replace Geitner as leader of both the Financial Solutions Group and NextGear.

Online auto shopping platform Cars. com will be spun off into a separate, publicly traded company, its parent company announced. TEGNA Inc., which was called Gannett until it spun off its newspaper business last year, said the spinoff will likely be finalized in the first half of 2017. “As an independent company, Cars.com will be able to focus more sharply on its key strategic priorities,” TEGNA said in a news release, “including rapid innovation within a growing marketplace and active evaluation and pursuit of acquisitions to open up new, adjacent opportunities.” Cars.com has already begun pursuing acquisitions, reaching an agreement in July to purchase automotive consumer review site DealerRater. TEGNA officials said the spinoff will provide Cars.com with the flexibility to pursue more acquisitions or mergers. “It’s great validation to all of the hard work that has taken place over the years to get Cars.com ready,” Cars. com president and CEO Alex Vetter said in an interview with Auto Remarketing. “I think it increases our focus on our mission and strategy. It allows us to bring more talent on board to help pursue strategic priorities.” TEGNA, which owns 42 television stations reaching about one-third of all television households nationwide, said it is also “evaluating strategic alternatives” for online job search site CareerBuilder.com, in which it owns a controlling interest.

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10.2016

Experian Data Shows No Subprime Bubble The auto finance industry is showing no sign of an impending subprime auto finance bubble, according to Experian’s latest State of the Automotive Finance Market report. The report showed finance sources made more than five times as many loans to super-prime customers – 17.9 percent of total auto loans and leases – than to deep-subprime customers (3.5 percent) during the second quarter of 2016. The share of subprime and deepsubprime combined for new and used auto loans and leases fell to 22.8 percent from 23.3 percent a year previously. “Subprime loans have actually dropped as a percentage of the total market,” Experian senior director of automotive finance Melinda Zabritski said. “That,

combined with only a slight uptick in delinquencies, makes clear that the sky is not falling.” Much of the super-prime increase has been fueled by the used car market. The report said 43.3 percent of super-prime consumers bought a used vehicle during Q2, a 10 percent increase over 2015. As a result, the average used vehicle loan amount was a record $19,101 and used cars accounted for 55.61 percent of all vehicle loans, also a record. “One of the biggest trends we continue to see is the shift to used vehicles by customers with excellent credit,” Zabritski said. “As vehicle prices continue to rise, savvy consumers are looking for ways to control costs. That appears to be pushing more customers toward used vehicles.”

Speed Not No. 1 Consideration on Finance Sources

Dealers care more about the relationship they have with their finance sources than speed when it comes to selecting automotive lenders, according to J.D. Power’s 2016 U.S. Dealer Financing Satisfaction Study. Jim Houston, senior director of J.D. Power’s automotive finance practice, said that result means finance sources must shift from a transactional relationship with dealers to a more consultative one. “Speed has been king and the area lenders have traditionally focused on,” he said, “but as the market gets tougher, lenders need to center their attention on their relationships with dealers or they

Cost Estimate Is Top Factor for Service Customers

are going to lose business.” The study found less than half of dealers receive consistent sales rep calls or visits from their finance sources, each of which boost overall satisfaction by around 7 percent. “Dealers value a lender that can help them handle the tough issues and solve those outside-the-box situations,” Houston said. Houston said dealers want three things from lenders that are not consistently being delivered: maintain consistent performance among dealer relationship managers, identify their best dealers and prioritize those relationships, and focus on areas most important to dealers.

Getting a transparent cost estimate is the most critical concern for customers when making appointments to get their vehicles serviced, research from Xtime showed. A study of 668 respondents found more than 70 percent considered cost estimates “extremely important” or “very important” when setting appointments, outranking all other factors, such as ability to choose the time or day of the appointment, the availability of transportation options and the option of choosing their service advisor. Currently, only 30 percent of service visits take

WHAT’S NEW ON NIADA.TV

If you missed NIADA’s National Leadership Conference and Legislative Summit last month in Washington D.C., you can still get the latest compliance information directly from the federal regulators themselves on NIADA.TV. All of the conference’s regulatory sessions are now available for viewing on the Legal/Compliance and BHPH channels.

Among the sessions are:

• Department of Labor explains the new overtime rules and other wage issues. • Federal Trade Commission examines marketing and advertising rules. • Department of Justice discusses fair lending regulations and servicemember issues. • Consumer Financial Protection Bureau covers collections.

Northwood Students Awarded Minority Dealers Scholarship

Northwood University students Norma Benavides and Isabelle Daoud were awarded the annual NAMAD Private Donor Scholarship. EFG Companies, the National Association of Minority Automobile Dealers and Northwood created the scholarship in 2015 to encourage future leaders in the automotive industry. The scholarship will fund the remainder of Benavides’ and Daoud’s four-year tuition in the Automotive Marketing and Management Program at Northwood. Benavides, a senior from Laredo, Texas, had a firsthand look at dealership operations through her father’s independent dealership. She has served as public relations chair for the Northwood University Auto Show, made the dean’s list every semester and has earned Association of Finance and Insurance Professionals certification. “This scholarship perfectly fits my career aspirations, as well as my background,” she said. “My career goal is to one day become an automotive dealer and operate a dealership.” Daoud, an incoming freshman from Troy, Mich., has long been involved in community service – as a 12-year-old, she obtained an emergency disaster grant from Lions Club International to help recovery efforts from a tornado. She also volunteers through the Lions Club, Salvation Army, Forgotten Harvest Food Pantry and many other charitable organizations.

place in dealerships, according to the Cox Automotive Maintenance and Repair Study, partly because customers believe dealership service departments are more expensive than independent repair shops. But the same study showed the average cost of routine maintenance at a dealership is comparable to third-party providers, which, Xtime’s Jim Roche said, means providing cost estimates during the scheduling process can help dealers alleviate the misconception of higher costs and increase their chances of winning more service appointments. WWW.NIADA .COM / OCTOBER 2016 /

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THE ROAD AHEAD

Tapping Into the Power of Many For the past few years now, we at NIADA have made it a high priority to get one message in particular out to our members. Make your voice heard. Of all the things NIADA does – and believe me, your association has a lot going on – getting that message to independent vehicle dealers might be the most important one. Because our ability as an industry to make our voice heard by engaging in the political process on all levels has a direct effect on our businesses, our customers and the American economy.

The message is so vital we’ve made it the tagline to the National Leadership Conference and Legislative Summit, our annual venture to Washington D.C. to inform Congress about the used vehicle industry and lobby in its interest. It’s attached to the legislative dealer alerts we send from time to time, asking for action from you supporting or opposing bills that would have a significant impact on our membership.

And it’s working. We’ve seen the voice of the independent dealer make a difference again and again – in the defeat of the Blumenthal Amendment that would have banned all sales of vehicles with an open recall, in the House’s overwhelming passage of a bill to rescind the CFPB’s controversial auto financing guidance, in the defeat of overly burdensome Buy Here-Pay Here restrictions in Oregon, in raising the threshold for the ban on renting recalled cars and more. All of those instances are a powerful testament to what we as an association and as independent dealers can do if we work together and make use of the strength of our numbers. In a matter of weeks, another opportunity to flex that muscle is coming. On Nov. 8, America goes to the polls to elect a new President as well as the entire House of Representatives and a third of the Senate. There’s a lot at stake for all of us – and that includes independent used vehicle dealers. So what should we do? That’s right. Make your voice heard. For the industry, this election, like the issues mentioned previously, represents a chance to exert the collective power we wield as a solid voting bloc. NIADA currently has about 16,000 members. The most recent estimates show there are roughly 40,000 independent dealers nationwide. That might not sound like a lot compared to the U.S. population of some 325 million, but the reality is it’s a very significant chunk of votes. Consider these U.S. Census Bureau statistics from the 2012 election: About a third of that overall population – more than 100 million people – is not eligible to vote because they’re too young or felons or residents who are not citizens. About a third of those eligible don’t bother to register to vote. And a sizeable portion of those registered voters, some 15 percent, don’t actually make it to the polls.

So of those 325 million people living in America, less than half – around 40 percent in 2012, according to the Census Bureau – will cast a vote. In non-presidential election years, that percentage drops considerably. In the 2014 midterm elections, for example, less than 30 percent of the population voted. That means in a two-person race in which a candidate can win with 50 percent plus one vote, 20 percent of the population or less controls the outcome. In a multiple-candidate race where only a plurality is needed, that percentage is even smaller. The point of all these numbers is simple. A group of 16,000-40,000 voters is a significant number. Significant enough to get the attention of candidates at all levels of government, from the local to the national, and significant enough to make a difference. But to make that difference, we have to use that power. How? By making sure you register to vote. Making sure you research the issues and thoroughly understand them and their potential impact on our industry and your dealership. And, of course, by using that understanding to vote for candidates who will support the used vehicle industry and create a climate conducive to success for small business. To help you, beginning on page 26 of this issue of Used Car Dealer you’ll find a look at the upcoming elections from NIADA senior vice president of legal and government affairs Shaun Petersen. He takes a dive into the economic plans of the presidential candidates, focusing on their ideas about small business and what they might mean to independent dealerships, as well as offering an overview of the House and Senate contests. Take a careful look, and consider your choices carefully. This election offers us a chance to reinvent the government from the top down – not only the Presidency, but Congress as well – but only if you take advantage of it by studying the issues and voting. By doing so, you, our association and our industry can play a large part in reinventing our government.

BY STEVE JORDAN

Steve Jordan is CEO of NIADA, president of NIADA Services, Inc., president of the NIADA Foundation board and publisher of Used Car Dealer magazine. He can be reached at steve@niada.com.

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WA S H I N G T O N U P D AT E

Washington D.C. Update

Shaun Petersen

Sante Esposito

REGULATORY REPORT BY SHAUN PETERSEN FEDERAL TRADE COMMISSION The FTC has warned dealers about misrepresenting the scope of Volkswagen’s settlement with the FTC regarding buybacks of VW and Audi diesel vehicles that were equipped with devices designed to cheat emissions tests. The terms of the settlements between VW and the FTC, other government agencies and private owners can be found at vwcourtsettlement.com. The FTC has also published a blog, available at www.ftc.gov/news-events/blogs/ business-blog/2016/08/dealers-vw-ownersdeserve-straight-story, explaining dealers’ expectations concerning the settlement and buyback opportunities. DEPARTMENT OF LABOR DOL settled an enforcement action against a plastering company for paying workers as independent contractors as opposed to employees. The workers, hired as independent contractors, did work only for the company and provided no services to any other business. In addition, the company supplied all of the materials and paid hourly rates set by company staff. The company was found to have violated the overtime pay requirements and was required to pay $365,291 in back wages.

CONSUMER FINANCIAL PROTECTION BUREAU The CFPB settled an enforcement action against First National Bank of Omaha related to ancillary products associated with credit cards. For a decade, the bank offered debt cancellation products with its credit cards, which the bank promoted as providing monthly payments to the cardholder’s account in the event of involuntary unemployment, hospitalization or disability. Cardholders were charged a monthly fee. The bank also offered credit monitoring for potential identity theft or fraud and to provide consumers with copies of their credit reports. The CFPB alleged the bank engaged in unfair billing practices and deceptively marketed the debt cancellation add-on products, forcing consumers to listen to sales pitches about the products by implying they had to stay on the phone while their cards were activated when that was not the case. The bureau said the bank falsely led some consumers to believe they would not have to pay for the debt products or they were eligible for the products. The CFPB also claimed the bank made cancellation difficult and billed for services that were not provided. The bank is required to refund $27.75 million to 257,000 customers and pay a $4.5 million penalty.

LEGISLATIVE REPORT BY SANTE ESPOSITO RETURN FROM RECESS Congress returned from its annual summer recess after Labor Day and began work on the fiscal year 2017 appropriations bills, arguably the most important legislation. At press time, however, those bills were considered unlikely to pass before FY ’17 began on Oct. 1. As in most prior years, Congress will have to pass a short-term continuing resolution to keep funding flowing to federal agencies. CRs usually provide funding at current levels. The big question was how long the CR would be. Some were pushing for a short CR through December with the hope Congress can complete some or all of the individual agency funding bills during the post-

election lame duck session – perhaps packaged together in a series of “minibus” bills. Others wanted to extend the CR into the spring to give the new administration a chance to get settled in and establish its funding priorities. Still others suggested a yearlong CR. H.R. 5485 FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 2017 This bill is among the FY 2017 appropriations bills still pending after passing the House in July. As previously reported, the bill includes provisions to curb the CFPB’s authority – among them, a provision that the CFPB

DEPARTMENT OF JUSTICE Dealer pleads guilty: Timothy Williams, owner of Lindsey Street Motors in Norman, Okla., and finance manager Stephen Butz pleaded guilty to bank fraud. Court records say Williams entered into a floorplan agreement with the Bank of Union on behalf of Lindsey Street Motors, then he and Butz sold collateralized vehicles out of trust without the bank’s knowledge or permission. Williams and Butz obtained duplicate vehicle titles, which they provided to buyers, without notifying the bank of the vehicle sales or repaying on the floor line. Both men admitted their conduct caused a loss of $550,000 to $1.5 million. The defendants face up to 30 years in prison, a $1 million fine and up to five years of supervised probation. They will also be ordered to pay restitution. Repossession settlement: DOJ settled with HSBC Finance Corporation over allegations the company violated the Servicemembers Civil Relief Act by repossessing 75 cars owned by protected servicemembers without obtaining the necessary court orders, even when it had evidence in its own records suggesting some of the borrowers could be protected servicemembers. HSBC will pay up to $11,000 per repossession and repair the credit of all affected servicemembers. would be funded through the annual congressional appropriations process rather than through transfers from the Federal Reserve as currently provided by DoddFrank in order to make the bureau more accountable. Another provision would require the CFPB to further study pre-dispute arbitration agreements before issuing any regulations on that issue. After conducting a controversial study, the bureau in May proposed a rule that would prohibit arbitration agreements that bar consumers from filing or participating in class action lawsuits and would require the lender to submit arbitration records to the CFPB. None of those provisions were included in the Senate’s version of the bill.

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FTC PERSPECTIVES

Nothing Lovely About This Second Time Around

According to the Sinatra standard, “Love is lovelier the second time around.” But here’s something that isn’t lovelier the second time around: alleged misrepresentations about auto financing and leasing. As part of the 2014 Federal Trade Commission law enforcement sweep targeting deception in auto ads known as Operation Steer Clear, the FTC settled charges with a group of jointly owned and operated dealerships in Texas.

Among other things, the complaint alleged the dealerships’ ads touted cars for a specific low monthly payment when, in fact, consumers would owe a final balloon payment of more than $10,000. Other ads claimed consumers could drive a car off the lot for a low initial amount and low monthly payments. What did the FTC say wasn’t clearly conveyed to prospective

buyers? That the deal was actually a lease that required consumers to come up with substantially more money up front. The 2014 lawsuit also alleged violations of the Truth in Lending Act and the Consumer Leasing Act. The order in that case prohibited material misrepresentations about financing or leasing and mandated that the companies include clear and conspicuous disclosures when ads contain triggering terms under TILA or the CLA. Fast forward to 2016, and the FTC says the companies have violated that order. According to the complaint, the dealers ran deceptive ads, showcasing eyecatching deals in the headlines that consumers couldn’t actually get, burying key terms in hard-to-read fine print and, in some instances, failing to disclose material conditions at all. In addition, the group failed to include required TILA and CLA disclosures in a clear and conspicuous fashion and failed to maintain documents required by the original order, including complete versions of its ads. For example, one TV ad promised consumers could “get up to $7,000” off new models in stock and offered two vehicles for “under $200 per month.” What followed were visuals of cars prominently advertised for $179 or $189 per month. Such a deal? Not so fast – because buried in a dense 13-line block of all-caps text that flashed on the screen for just two seconds was the fact that the advertised terms were for a lease, not a sale. What’s

more, that offer required consumers to cough up $1,999 at lease signing. The dealer used similar tactics in a direct mail piece that touted a $179 monthly payment for a certain model. Only in print so small that it was illegible without magnification did they “disclose” – and we’re using that term loosely – that consumers would have to pay $1,999 up front and an additional $8,271 at the end of the 38-month financing term. The complaint also cited an online banner ad that featured a car for “$179 per month for 36 months.” Was that advertised monthly payment for a sale or a lease? Consumers were left guessing because the visible portion of the ad failed to give them that fundamental piece of information. If it was a sale, what was the down payment and APR? If it was a lease, what was the total due at lease signing and was a security deposit required? The FTC said by choosing to tout the monthly payment in the ad, the dealers had to disclose that information clearly and conspicuously under the terms of the 2014 order, as well as TILA or the CLA. Another TV ad that targeted consumers facing “repos or foreclosures” advertised cars for $250 down and $250 per month. The fine print specified that those payments were based on a 4.25 percent annual percentage rate – an APR few (if any) borrowers facing repossession or foreclosure would qualify for. The FTC said the defendants used similar illegal tactics in Spanish-language ads. For example, one TV ad claimed “por solo $500 de enganche puedes salir manejando” – “for only $500 down, you can leave driving.” But nowhere in the ad did the company disclose key terms consumers would need to evaluate the offer – for example, even whether it was a sale or a lease. The settlement includes an $85,000 civil penalty for violating the 2014 order. It also should serve as a reminder to car dealers that the FTC continues to look closely at auto ads.

BY LESLEY FAIR

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I N D U S T RY I N S I D E R

When and How to Switch to a New CRM We’ve all been dazzled into trying a “new and improved” product because of pretty new packaging or the promise of bells and whistles. When it comes to changing auto dealership customer relationship management tools, though, it’s not as simple as trying out a new shampoo or getting takeout from the new Chinese food joint around the corner. That said, there are certainly legitimate reasons to switch CRMs, such as: Your current CRM can’t scale as your dealership grows: Unless you’re planning to stagnate or shrink, you need a system that expands with you.

Your provider doesn’t help you get the most out of its tool: Most CRMs are grossly underused. While some responsibility for that falls on the dealer, the provider’s role is to proactively reach out to users with education, training and personalized insight to maximize investment. Your CRM is not adapting as the industry changes: Has your provider

announced any major improvements over the past several years? Your CRM must evolve as quickly as the auto industry so you can stay competitive. Your provider is no longer responsive to your needs: It might have been a solid partner once, but if client service now takes a back seat, it could be time to look elsewhere. Once you’ve decided you’re ready for a change, keep in mind that there are efficient ways and frustrating ways to go about it. Here’s a checklist to ensure a smooth transition: Step 1: Enlist management input as you assess CRM options. One of the biggest mistakes dealers make is unilaterally deciding to sign up for a particular CRM, then communicating that to their teams with no context or reasoning. Employee buy-in is much stronger if department managers feel they have input into the decision. Plus you’ll gain insight into how the CRM will affect each team’s frontline, dayto-day responsibilities. Step 2: Decide as a team what features are non-negotiable. Some of the useful CRM features to consider include: • A mobile app to enable customer responsiveness regardless of location. •The ability to filter, prioritize and market to various categories of customers, depending on where they are in the buying process. • In-depth reporting capabilities so team members are held accountable. • A desking tool that allows you to present various scenarios with professional, printed documents. • Texting functionality to manage your messaging and ensure privacy rules are followed. • Website integration to automate and maximize online leads. Step 3: Check the improvements your current provider has already available or in the works. You might be surprised what your existing CRM is capable of now or will be in the near future. It’s better to check

now than to go through an intensive transition period only to discover you could have achieved the same benefits without switching. The same advice applies to new general managers or dealer principals who take over a store and immediately want to change to a CRM they’re familiar with from a previous position. First get to know the system in place. When properly used, it might actually deliver more than that previous software. Step 4: Document your processes. Most dealers have defined processes but don’t take the time to document them. Whether you can provide detailed documentation to your new CRM provider is one of the strongest predictors of whether your transition will succeed. It is such a crucial step that if you don’t have much documentation in place, we recommend delaying any switch until you do. Step 5: Commit time to the onboarding process. Too many dealers don’t realize what they’re getting into when they decide to change CRM providers. You will have lots of calls and WebEx meetings, and they aren’t optional. If you want a seamless transition, you must engage in those meetings or appoint someone whose opinion you fully trust to make decisions on your behalf. Step 6: Start slow to maximize ROI from your new tool. After the dust has settled, it’s tempting to turn on every automation feature your new CRM offers – simply because they’re there. But you will achieve more impressive long-term ROI by remembering less is more. Start with one automation focus, secure understanding and buy-in from your team, then add another from there. With a strategic, incremental approach, you’ll avoid drowning your customers. Your CRM is only a tool – albeit a mighty important one. When properly selected and implemented, it will enable your team to perform at its full potential.

BY CHAD PERRY

Chad Perry, DealerSocket’s national director of account management, has installed, implemented and managed the DealerSocket system at more than 2,000 dealerships in 11 years. He can be reached at cperry@ dealersocket.com.

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M A N A G E M E N T M AT T E R S

You’re Paying for Training – Whether You Know It or Not Every company pays for training. You either pay for it up front or you pay for it through poor results at many times the cost of doing it right. People don’t think about it that way, but maybe they should. Let me tell you a story about how a lack of training cost a company $1.68 million a year. A chain of nine floor covering stores doing $12 million in annual sales had a goal to increase profits, which were at an average 34 percent margin on products sold.

Knowing it could improve that margin if it focused on training and raised pricing, the company trained salespeople to use sales tools and helped customers

understand the true value it offered. It focused on solving customer problems by concentrating more on their needs and helping them find the right products. By demonstrating value and being better in helping its customers meet their needs, the company increased margin and sales. As a result, the margin increased from 34 percent to 48 percent. For that $12 million company, the result was a $1.68 million increase in gross profit, plus increased sales. The true differentiator was the training. If the company had simply changed its merchandising without doing the training, it would have had a much smaller impact. Another way to look at it is that for years, a failure to train was costing that company $1.68 million a year in gross profit. The cost of training was in essence $1.68 million per year, because it didn’t spend any money on training. You see, every company pays for training, either up front or through poor results. Are you too paying for training without knowing it? Train staff to close more sales: Let’s say your staff should be closing 40 percent of sales, but is currently only closing 30 percent. That means you are losing 25 percent of potential sales. If your company is doing $10 million in annual sales, you are losing $3.33 million in sales. With training, increasing a close rate from 30 to 40 percent is a reasonable expectation. It can come from training staff how to be more polite, listen better, present products more effectively – and ask for the order. If you are not doing it, you are paying

for training without realizing it. Which is more costly, losing $3 million in sales or investing in training? Train to improve employee retention: Losing employees is costly. According to a study by the Center for American Progress, the cost of replacing a worker who earns $30,000-$50,000 a year is 20 percent of annual salary, or about $10,000. Replacing employees who earn more than $50,000 costs even more. The link between training and retention is well documented. Well-trained employees are happier and therefore less likely to leave. And because they do their jobs better, you have to fire and replace fewer of them. Train to improve customer retention: If your company does that same $10 million in annual sales and your customer retention rate drops five percentage points, you have lost $500,000 in sales. Yet the right kind of training in areas likes sales and customer service has been shown to retain many more customers. Again, it is “doable.” And the result can be a big improvement in profitability. Which is cheaper, losing $500,000 worth of customers a year or training? You pay for training, one way or another. Every company pays for training. You can either pay for it up front or you pay for it through poor results at many times the cost of doing it right. Your company results are affected by the quality of the training it provides. Investing in training up front will provide you a 10 times or greater return on your dollar. Additionally, training is the safest investment you can make. If you spend more money in advertising, it might or might not be effective in bringing customers to your business. Training is about improving results with the customers you already have coming to your business. Every business is different, but how much is poor training costing you? How could investing in training up front improve your profits?

BY EVAN HACKEL

Evan Hackel is CEO of Tortal Training, an executive coach, speaker and author of Ingaging Leadership: A New Approach to Leading that Builds Excellence and Organizational Success. For more information, visit www.tortal.net.

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M A R K E T I N G M AT T E R S

Five Simple Ways to Improve YOUR SEO SEO – search engine optimization, for those who don’t know – is a term that often makes dealers nervous. But creating a simple strategy around SEO doesn’t have to be as complicated as the phrase makes it seem. Thing is, it takes some serious patience and dealers can be apprehensive about shelling out resources on something that doesn’t always have an immediate return. But in a competitive industry with a rapidly growing web presence, being found in search is essential for long-term success.

For those who aren’t technically savvy but still want to be relevant online, here are a few simple strategies: Relevant keywords: I know it isn’t the most groundbreaking message, but content is king. By “relevant keywords,” I don’t mean listing buzzwords one after another. That is exactly what Google does not want you to do. Rather, choose a few select keywords

you’d like to rank for and that have relevance in your market. If you’re located near a major metropolitan area or specialize in a certain type of vehicle, that should be your key focus. For example, if you’re based in Denver and you sell 4x4 trucks, it would be very beneficial to write content on your site about the use of 4x4 trucks in Denver due to heavy snowfall in the area. That way, when a consumer is searching “4x4 trucks Denver,” your dealership is much more likely to be found. Strategic keyword placement: Not only does it matter which keywords you use, there’s also a huge emphasis on where those keywords are placed on your site. Google and other search engines scan your website to determine which terms are most important – the ones eyes are immediately drawn to. By placing your select keywords in page titles, header tags and URLs, you’re essentially highlighting those terms for search engines to mark as important phrases, emphasizing your site’s relevance for those specific keywords. Social media: Having a social media presence is no longer optional for businesses – it’s essential. Each platform is an additional opportunity for you to be found when consumers search for local dealers in your area. Crosslinking between your site and social platforms is also a great way to bring site traffic and promote specials in real time to your customer base. The most underrated social media strategy is Google My Business verification. It’s not the most used consumer-facing platform, but when you verify with Google, your business is more likely to show up on Google platforms in searches for vehicles or dealers in your local area. Responsive design/user experience: Changing to a responsive website can

be easy or not depending on your site provider, but with mobile users now exceeding desktop users online, the importance of responsive design cannot be stressed enough. Since its new mobile-friendly algorithm took effect last year, Google has put a major emphasis on mobile usability. So if your site is non-responsive – meaning the site’s content doesn’t scale to the screen it’s viewed on – your mobile search results will be hindered. If you’re not sure how to test whether your site is responsive, visit automanager.com/ mobiletest. Search engines not only take responsiveness into account, but user experience as well. So if your font is unreadable, buttons are too small, site elements are touching or containers are broken, Google will mark it against your site. Customer reviews: Consumers trust other consumers. I’ll gladly admit I won’t go to a restaurant with less than a fourstar Yelp review, and that’s just for a good quesadilla. Now imagine how much emphasis is placed on customer experience in the purchase of one of people’s most expensive possessions: their car. This strategy requires two things: verifying your site on the main review platforms and reaching out to customers who had great experiences and giving them links to your review pages. So when customers search “best used car dealer” in a specific city, your site will rank well on those platforms. Not only that, but every review site you’re on is an additional link pointing to your site, which is great for SEO. With so many dealer and business review sites out there, I recommend sticking with the most popular – Google My Business, DealerRater, Edmunds, Cars.com and Yelp. That marketing approach is just the tip of the iceberg when it comes to SEO, but it give you a solid foundation for making your online presence relevant in a fiercely competitive space.

BY MARK STANSBURY

Mark Stansbury is marketing manager for AutoManager, a provider of dealer websites and SEO services, marketing solutions and dealer management software. For more information, visit www.automanager.com.

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A S S O C I AT I O N N E W S

Your Last Chance in 2016 to be a CMD

Your last chance in 2016 to become a Certified Master Dealer is coming up quickly. NIADA’s acclaimed dealer training program, featuring the unmatched industry acumen of NIADA director of dealer development Joe Lescota, is heading South for its final class of the year. The session will be held Nov. 1-3 in Atlanta. Lescota, a true icon of the used vehicle industry, provides the kind of knowledge that has become essential for an independent dealer to survive and thrive in an increasingly competitive market, helping make the CMD course the most respected – and effective – dealer training program in the independent space. The CMD program teaches dealers how to take their business to a higher level by providing strategies for sustainable success in a more efficient and profitable dealership. It goes over all aspects of the dealership, from effective management practices and business planning to marketing to finances, offering new ideas for analyzing your business and increasing profitability. “Everyone gets something different from the CMD class,” said CMD Darla Booher of Deal Depot in Greer, S.C. “There are certain things you take from the CMD class that stay with you, regardless of how long it’s been since you’ve been through it. They become your core.” For more information or to register, contact Diann Flanders at diann@niada.com or 800-682-3837, or visit www.niada.com and click on “Certified Master Dealer” under the “Training” tab.

DealerAssist Now Offers Custom Vehicle Comments

Dealer Assist Now has joined with NIADA as its latest National Member Benefit partner, offering handwritten custom vehicle comments to the association’s independent and NIADA Certified Pre-Owned dealers. “Given that most vehicle searches start online, having quality vehicle comments is critical. So we are thrilled to partner with a company that makes them easy,” NIADA senior vice president of member services Scott Lilja said. NIADA members who sign up for Dealer Assist Now receive discounts on personal writers and self-service library access. daN provides custom vehicle comments/descriptions for dealership inventory, offering custom descriptions that go far beyond the information provided by a VIN decoder or autogenerated comment. daN tells the story of the vehicle to help potential owners get a real feel for what each vehicle would be like to own and drive. They include keywords to support keyword searches and SEO, highlight unique features and are checked for accuracy. Dealers get an experienced team of automotive writers working to helping them make sales – at a fraction of the cost of hiring an in-house writer – with self-service or full-service options. “Our only goal is to help dealers sound their best online, every day, with every vehicle,” Dealer Assist Now founder Aaron Johnson said. “We’re excited to offer NIADA members a way to speak to the buyer in a way that helps them choose your vehicle out of the mix because it sounds the best.” For more information or a consultation, call (402) 679-7223 or visit www.dealerassistnow. com.

Frazer Becomes NIADA National Member Benefit Partner

Frazer Computing, Inc., provider of the popular Dealer Management Software, has become the newest member of NIADA’s National Member Benefit program. While it is new to the NMB program, Frazer has a long affiliation with NIADA, having joined the association’s Georgia affiliate in 1992. Frazer is currently a member of more than 30 of NIADA’s state associations. “NIADA and its state associations are an incredible resource for independent dealers” Frazer president Michael Frazer said. “We love the state associations and are now proud to call ourselves partners with the national association.” More than 16,000 customers use the Frazer DMS to help run their dealership. The system features hundreds of integrations with other vendors and thousands of features, including vehicle management, printing forms, vehicle marketing, processing sales, Buy Here-Pay Here and accounting. “We heartily welcome Frazer Computing, a longtime leader in the independent auto dealer DMS marketplace, as our newest NIADA National Member Benefit partner,” NIADA senior vice president of member services Scott Lilja said. “Thousands of Frazer dealers are also NIADA members, and now we’re expecting even more to start joining their state associations and NIADA.” For more information, visit www.frazer.com.

NIADA Foundation Announces Key Charity Initiative

The NIADA Foundation, in conjunction with NIADA National Member Benefit partner High Tech Locksmiths, has created a new initiative to raise funds for charitable contributions. Through the “Keys for NIADA Foundation” campaign, NIADA members can contribute used keys and remote key fobs to the NIADA Foundation. High Tech Locksmiths will contribute an average $7.50 per key/fob to the foundation. Old keys and remotes that are taking up space in your drawer or cabinets can help give a hand to a person in need. If just 100 members contributed 100 keys/fobs each year, it would raise $75,000 toward the many worthy charitable causes the NIADA Foundation contributes to each year. The donation could also be tax deductible – consult your tax advisor to be sure. The “Keys for NIADA Foundation” initiative is the latest example of NIADA’s renewed commitment toward increasing charitable giving through the NIADA Foundation. In 2015, the foundation’s activities included significant donations to the Heart of a Warrior Foundation, the Austin Disaster Relief Network and other charities. To learn more and begin contributing, visit www. keysforniada.com.

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ENTREPRENEURIAL SPIRIT

Work-Life Balance: Find the Right Job for Your Purpose The corporate world is susceptible to fads. Work-life balance, a push to properly prioritize work in relation to lifestyle, features the kind of fad-ish thinking that can lead gifted people down the wrong path. Think of those who love their job. For them, it’s not exactly “work” as they exercise their capabilities fully toward a

goal they believe in. Finding the right fit – whether an organization is searching for leadership or an individual is seeking the right job – is more important than people realize. The problem of work-life balance starts farther upstream. When the appropriate person is aligned with the appropriate goal, balance is natural. A concept like work-life balance is a claim on how we should prioritize our lives, which, if believed, can be confusing. Let’s review how an organization’s employees can benefit from a more helpful perspective. Don’t buy into the notion of the “work you” as being separate from the “real you”: We spend 8.8 hours of each day working, according to the United States Bureau of Labor Statistics. That’s the largest amount of time spent in any single activity – sleeping is second at 7.6 hours. Work-life balance enforces a strange notion that you are essentially different on the clock than off the clock, which hurts both employers and employees. Who wants this divided personality? Why not be yourself while doing what’s important – providing for your well-being and that of your family? Costumes are for Halloween. In my line of work

– a leadership search firm – I want to offer leaders who are authentic and not some impostor version of who they really are. Not everyone is working for the weekend: Rather than work-life balance, it’s more helpful to think of your role in a company or business as work-life symbiosis. Just do the math. Working nearly nine hours every weekday in a role you do not like doesn’t stack up well with two days that quickly pass by – assuming you hate your job. How many years of your life do you want to waste not doing what would make you happier? Most important of all is aligning the right people with the right role. That means aligning the purpose and values of an organization to the purpose and values of the right people. Everyone owes it to themselves to find the right organization. Take a cue from your technology: In today’s world, we simply cannot compartmentalize different areas of our lives like people used to. You can communicate with your spouse at any time and know people better through social media than through real-life interaction. And most of us carry our work around in our smartphones. We get text messages and emails sent to our phones. Whether through our technology or the software running in our brains, we don’t simply turn off work when we leave the office. We should drop the idea that “work” and “life” are somehow separate. They’re not. Ask yourself, “Is my current work meaningful?” Like most of you, I am going to spend at least one-third of my life earning a living. As a young college graduate, I didn’t know what I wanted to be or how I was going to earn my living. I knew I was going to work, but never had the vision of what or where. I didn’t let the trappings of a decent compensation tether me to work or to a company whose purpose I didn’t find meaningful. I continued searching until I found it. Now that I’ve found it, it’s been a huge contributor to my happiness.

BY BRIAN MOHR

Brian Mohr is co-founder and managing partner of Y Scouts (yscouts.com), a purpose-based leadership search firm. He previously worked as a talent strategist and in management for P.F. Chang’s China Bistro and Jobing.com.

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I N D U S T RY N E W S

NIADA Q3 Business Confidence Survey Heading into the fourth quarter, independent dealers have a reasonably positive outlook for the remainder of 2016. Despite mixed industry and media reports regarding vehicle sales for the next two quarters, NIADA’s third quarter Business Confidence Survey indicates independent auto dealers remain confident that the industry will continue to perform steadily. With GDP growth crawling along at less than 2 percent for the year to date, uncertainty surrounding the upcoming presidential election and regulatory burdens only increasing, with a record 600 new federal regulations introduced in the past eight years, NIADA members are continuing to conserve cash flow and are not expecting to make major new investments. More than 240 independent dealers responded to the survey, sharing their outlook on general economic conditions and their expectations for their businesses for the fourth quarter of 2016. More than half (57 percent) of survey respondents indicated they believe Overall, does your dealership expect economic conditions to improve, stay the same, or decline in the auto industry over the next quarter? IMPROVE STAY SAME DECLINE

Do you anticipate your dealership will invest in more, the same, or less retail inventory to meet anticipated retail demand over the next quarter?

MORE STAY SAME LESS

Q1 Q2 Q3 36% 28% 23% 46% 51% 57% 18% 21% 20%

Does your dealership plan to expand its business over the next quarter? (i.e. add new equipment, enhance your building/property)

YES NO

Q1 32% 68%

economic conditions will remain the same, up from 51 percent in the previous quarter’s survey, while 23 percent expect the economy to improve, down from 28 percent in Q2. In all, 80 percent of the dealers surveyed expect overall conditions in the industry to remain the same or improve, and 71 percent expect credit availability to stay the same with 23 percent expecting credit to expand. Those results align with U.S. consumer spending, which has continued to grow at a steady pace. In addition, July auto sales reached an eight-month high, with independent auto dealers’ year-to-date retail sales increasing by 7.3 percent. The steady flow of credit to independent dealers is likely a result of the continued strong performance of auto loans. Equifax data shows total auto loan delinquency rates have remained below one percent since March 2016. That said, NIADA members continue to face unprecedented competitive pressures that have crimped retail pricing power and

Q1 45% 43% 12%

Q2 34% 53% 13%

GROW STAY SAME DECREASE

Q1 56% 34% 10%

Q2 44% 43% 13%

Q3 46% 44% 10%

What percentage of the following categories makes up your total retail automobile sales?

Will your dealership increase, hold, or decrease vehicle retail prices over the next quarter?

PRIME BHPH SUBPRIME

INCREASE HOLD DECREASE

Q1 46% 30% 24%

Q2 42% 32% 26%

Q3 44% 29% 27%

Q1 Q2 23% 15% 65% 70% 12% 15%

Q3 13% 70% 17%

Do you expect your dealership’s credit availability to expand, stay the same or reduce over the next quarter?

Do you see your dealership’s cash flow improving, staying the same, or declining over the next quarter?

EXPAND STAY SAME REDUCE

I MPROVE STAY SAME DECLINE

Q1 20% 73% 7%

Q2 20% 74% 6%

Q3 23% 71% 6%

Do you anticipate your dealership’s total expenses (cost of business) to increase, stay the same or decrease over the next quarter?

Q2 41% 40% 19%

Q3 32% 49% 19%

Does your dealership expect customer traffic to increase, stay the same or decrease over the next quarter?

Q1 Q2 Q3 INCREASE 60% 55% 55% STAY SAME 35% 40% 40% DECREASE 5% 5% 5%

Q1 INCREASE 57% STAY SAME 32% DECREASE 11%

Considering the following marketing channels, *DIGITAL 44% 52% 4% TV 4% 64% 32% please indicate the RADIO 8% 65% 27% level of investment your dealership plans to make over the next quarter. Increase

Q1 42% 40% 18%

Hold

Decrease

Q2 34% 48% 18%

Increase

BY SCOTT LILJA AND PETER OBURU

Scott Lilja is NIADA’s senior vice president of dealer services. He can be reached at scott@ niada.com. Peter Oburu is leader of Equifax Automotive Vertical Analytics, leading, designing and managing the development of advanced analytical solutions for Equifax clients.

Does your dealership anticipate hiring any new staff over the next year? Q1

Q3 36% 54% 10%

Do you anticipate your dealership’s retail sales to grow, stay the same or decrease over the next quarter?

Q2 Q3 37% 35% 63% 65%

corresponding gross margins. Dealer confidence in industry stability coincides with a seasonal sales lift that typically occurs near the end of the year. But dealers are not relying on industry trends. Many are primed to further capitalize on the continued demand through advertising across digital channels. In the upcoming quarter, 44 percent of dealers surveyed plan to increase their digital spend and 52 percent plan to hold their level of investment. Only 4 percent plan to decrease their investment in digital advertising. Independent auto dealers have spoken and have said they expect consumer traffic to stay fairly robust, with corresponding sales

Hold

Q3 38% 45% 17%

Decrease

NEWSPAPER 9% 58% 33% OUTDOOR 13% 59% 20% DIRECT MAIL 9% 61% 30%

NO 76%

YES 24%

NO 66%

YES 34%

NO 67%

YES 33%

In which department does your dealership anticipate hiring new staff over the next quarter? Q1 Q2 Q3 SALES 62% 53% 47% FINANCE 10% 4% 5% SERVICE 21% 39% 30% 7% 4% 18% OTHER

What is the single most important problem facing your business today? Q2

Q2 4%

1% 18%

10%

13%

17%

9% 12%

12%

GOVERNMENT REGULATIONS/ RED TAPE HEIGHTENED COMPETITION FROM FRANCHISE DEALERS

7% 15%

22%

ECONOMIC CONDITIONS

15%

LACK OF QUALITY WHOLESALE INVENTORY

LACK OF QUALITY RETAIL INVENTORY

INCREASED COST OF DOING BUSINESS

LACK OF FINANCING/ CREDIT RESOURCES

14%

LACK OF CUSTOMER PROSPECT TRAFFIC/ LEADS OTHER

*ONLINE AND MOBILE

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F E AT U R E S T O RY

BY SHAUN PETERSEN

A PREVIEW OF THE ECONOMIC PLANS T HAT W I L L SHAPE YOUR FUTURE

n Nov. 8, voters across the country will head to the polls to decide for the 58th time the nation’s top electoral prize – the Presidency of the United States. In the first two presidential elections, George Washington was essentially unopposed and was elected unanimously. Things have changed a bit since then. Perhaps at no time in history has the race for the White House involved such colorful candidates, or so many of them, as in the 2016 campaign. According to the Federal Election Commission, more than 1,800 individuals filed an official Statement of Candidacy form seeking to become the 45th President.

PRESIDENTIAL CANDIDATES Starting with Sen. Ted Cruz’s announcement in March 2015, the field of Republican candidates grew to 17 before it was narrowed down to real estate mogul Donald Trump. Mr. Trump selected Indiana Gov. Mike Pence as his vice presidential running mate. Gov. Pence is a former member of the U.S. House of Representatives – and a childhood friend of Carolinas IADA executive director John Brown. On the Democrat side, former Secretary of State, U.S. Senator and First Lady Hillary Clinton was the first to announce her candidacy, and she is the last one standing, defeating five others who ran for the nomination. CONTINUED ON PAGE 28

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R U YO

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She selected Sen. Tim Kaine of Virginia, a former governor of Virginia and past chair of the Democratic National Committee, as her running mate. While the majority of the press is focused on Trump and Clinton, they are not the only nominees of political parties seeking the presidency. Jill Stein, a physician and former professor of medicine at Harvard who resides in Lexington, Mass., is the Green Party’s choice for President. She became an environmental health advocate and organizer after concluding

many of her patients’ ailments stemmed from environmental pollution. Dr. Stein has selected Washington D.C. human rights activist Ajamu Baraka as her running mate. The third-party candidate getting the most media attention is former New Mexico governor Gary Johnson, running on the Libertarian Party ticket. Gov. Johnson ran for President in 2012 and received more than 1 percent of the popular vote. He has selected former Massachusetts governor William Weld as his running mate. Both Johnson and Weld are former

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TO HELP YOU M A K E T HAT DECISION, N IA DA TA K E S A L O O K AT T H E C A N D I DAT E S’ PERSPECTIVES ON ISSUES WE BELIEVE ARE I M P O RTA N T – I N L A R G E PA R T B E C AU SE W E H AV E H E A R D FROM YOU T HAT T H E Y A R E I M P O RTA N T T O YOUR BUSINESS.

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members of the Republican Party. Before you cast your vote, it is important to understand how the candidates view the issues affecting your dealership and our industry. To help you make that decision, NIADA takes a look at the candidates’ perspectives on issues we believe are important – in large part because we have heard from you that they are important to your business. Independent automobile dealers embody the spirit of American entrepreneurism, and as a result NIADA is dedicated to ensuring the success of small businesses. More than 40 percent of NIADA’s dealer members have been in business for more than 20 years and more than two-thirds have fewer than five employees. What do the candidates believe the role of small business is in the American economy and what will they do to ensure small business success?

Trump believes those losses can be attributed largely to the new regulations on financing, including those imposed by the CFPB. He cites a Heritage Foundation finding that the Obama administration has imposed 229 major regulations – those with a cost of $100 million or more – at a cost of $108 billion annually. The Trump economic plan calls for a temporary pause on new regulations and a review of previous regulations to see which rules can be ditched. If elected, Trump would require each federal agency, including the CFPB, to prepare a list of all regulations imposed

on American business. The agency would be required to rank them from the most critical to health and safety to least critical. Those considered least critical would be prioritized for repeal. In addition to removing what he calls unnecessary regulations, Trump would remove federal bureaucrats he believes are job killers and replace them with experts who can create jobs. Trade reform: The Trump plan would include renegotiating or withdrawing from trade agreements he believes are harmful to domestic production. CONTINUED ON PAGE 30

THE PLATFORMS AND YOUR DEALERSHIP DONALD TRUMP Mr. Trump released an economic plan developed with the goal of making it easier to hire, invest, build, grow and produce in America – in his words – to create a level playing field for American workers and businesses in global competition. The Trump plan proposes to accomplish those goals by calling for reforms in several key areas. Tax reform: Trump wants to simplify the tax process and streamline deductions for all taxpayers. His proposal would lower taxes for everyone. He proposes reducing the number of income tax brackets from seven to three, with rates set at 12, 25 and 33 percent, and emphasizes many American workers’ tax rate would be zero. He also proposes allowing parents to fully deduct child care expenses. As it pertains to the corporate tax rate, his proposal would limit taxation of business income to 15 percent for every business. He believes that would make the United States’ corporate tax the most competitive globally. In conjunction with personal and corporate tax reform, he proposes to end the estate tax. Regulatory reform: According to Trump, regulations may have cost the U.S. economy as many as 600,000 small businesses and 6 million jobs since the start of 2008.

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Trump says the U.S. trade deficit is costing Americans good-paying jobs and economic growth. He cites concerns about the effects trade agreements have had on the automotive industry because agreements have not resolved the non-tariff barriers to American-made cars being sold in other countries. Miscellaneous reforms: The Trump plan calls for a complete repeal and replacement of the Affordable Care Act (Obamacare), though he has yet to explain exactly what that would entail. He has also indicated his desire to reinvest in infrastructure, which would come as a result of the rest of his economic plan. HILLARY CLINTON Sec. Clinton has proposed a plan she contends will make starting a business as easy as setting up a lemonade stand in the front yard. The plan has six cornerstones. Make it easier to start a business and become profitable: She wants to push states to make it easier and faster to get business licenses and would incentivize states with federal funding for any losses incurred by having a faster process.

Make it easier to get financing and find investors: Clinton says she would streamline regulation and cut red tape for community banks and credit unions while defending the new rules that have been imposed on Wall Street through the Dodd-Frank Act. She would allow entrepreneurs to defer student loan payments with no interest while they get their ventures off the ground. She also says she would promote a 100 percent tax exclusion on capital gains for long-term investments in small businesses. Make it cheaper and faster to file taxes, and provide tax relief: Clinton suggests the smallest businesses spend an average of 150 hours and $1,100 per employee to comply with federal tax laws, which she says is 20 times more than larger businesses pay. Clinton wants to create a new standard deduction for small businesses like the one available to individual filers. Under her plan, small businesses could still opt to track and deduct individual expenses. Her tax relief plan for small business would allow them to immediately expense up to $1 million in new investments and would quadruple the start-up tax deduction to significantly

lower the cost of starting businesses. Make it easier to offer health care and other benefits to employees: The Clinton plan would simplify and expand the health care tax credit for small employers as defined by the Affordable Care Act (Obamacare). She says small businesses with up to 50 employees would still be eligible for the credit, and she would simplify the phaseout and eligibility rules. She also plans to allow more small businesses to pool together to offer retirement plans. Make it easier to work with the federal government: Clinton says small businessesâ&#x20AC;&#x2122; interaction with the federal government is too complicated and burdensome. She wants to invest in technology to make it easier to interact with the government. She wants to guarantee a 24-hour response time to small businesses with questions about federal regulations and access to capital programs. She also says she would work to ensure federal regulations do not unnecessarily hold up small businesses, and would increase federal contracting opportunities for women-owned, minority-owned and veteran-owned small businesses. CONTINUED ON PAGE 32

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Make it easier to fight back when you’re getting stiffed: Clinton says she would ensure agencies like the FTC and Department of Justice can investigate patterns or practices of big businesses engaged in unjustified breaches of contract, stiffing, fraud or deception against small businesses, and bring enforcement actions when appropriate. She believes small businesses should have a new private right of action under federal law and easier standards for class-action certification, including treble damages and attorney’s fees awarded in egregious cases.

THIRD-PARTY CANDIDATES Jill Stein of the Green Party has called her platform the “Power to the People Plan.” She wants to create a “Green New Deal” to halt climate change and invest in clean renewable energy. She has said jobs are a right for all Americans who need work. As part of her Green New Deal, she wants to create 20 million jobs in sustainable energy, clean manufacturing, organic agriculture and other similar sectors. She would provide grants and low-interest loans to green businesses and cooperatives, with an emphasis on

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CONTROL OF T H E S E NAT E IS VERY MUCH AT S TA K E . small, locally-based companies. Specifically addressing workers, she proposes a guaranteed “living wage” job for everyone with a $15 minimum wage. She would increase the tax rate for Wall Street banks, big corporations and the wealthy. Stein believes “too big to fail” banks should be broken up and the Federal Reserve should be democratized. She also believes democratically run public banks and utilities should be the norm. Gov. Johnson’s ideas for economic growth start with a simplification of the tax code. The libertarian candidate calls for the elimination of what he terms “special interest tax loopholes.” He wants to eliminate the current system of double taxation on businesses (income and payroll taxes) and replace it with a federal consumption tax. He believes a shift to a consumption tax would avoid what he calls a penalty on the savings and productivity the country needs. Johnson is fond of saying that as governor of New Mexico he did not create a single job – because the government does not create jobs. He believes entrepreneurs, businesses and economic prosperity are the building blocks for job growth. Accordingly, he wants to create a regulatory and tax structure that does not pick winners and losers in the marketplace. He believes that too often, regulation is being used to manipulate the economy, manage private lives and businesses, and place unnecessary burdens on economic drivers.

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With that in mind, Johnson has called for the reduction and elimination of unnecessary laws and taxes that divert resources away from job growth because of the overburdensome cost of compliance. CONTROL OF CAPITOL HILL While the Presidential election has taken center stage, there are also a number of Congressional races of significance to independent dealers. All 435 seats in the House of Representatives are up for grabs, including that of Speaker Paul Ryan and Minority Leader Nancy Pelosi. Currently, the Republicans hold a 60-seat majority. Political pundits are calling about 30 House seats “battleground” races, and over the past decade, Democrats have consistently gained seats in the House during presidential election years. But the consensus is the Democrats are unlikely to win enough seats to take control of the House. Control of the Senate, however, is very much at stake. The Republicans hold a 10-seat majority with 34 of the 100 Senate seats up for election this year. Twenty-four of those seats are held by Republicans, most of them freshmen swept into office during the Republican wave of 2010. The pundits suggest about a dozen Senate races will be decided by a margin of 5 percent or less. Of those, 10 are currently held by Republicans. Those races – and thus, control of the Senate – could go either way. We have seen the negative impact when anti-business legislation is able to race through Congress straight to the President’s desk. Conversely, we have seen what can happen when pro-business members of both parties work together to pass favorable legislation and, when necessary, kill provisions detrimental to the interests of small business. Having pro-business majorities in both chambers of Congress, regardless of who resides in the White House, is essential to creating and maintaining an environment where entrepreneurs can succeed.

would have been different. If that can happen in a race in which more than 100 million votes were cast, it can certainly happen in congressional and local races with far fewer individuals determining the results. In addition, while your single vote has a significant impact in individual races, the power of the independent dealer community as a collective voting bloc cannot be underestimated. As you go to the polls and become politically engaged, more candidates will seek your input and craft their positions to favor your interests. When they see you

united with other dealers sharing similar objectives, your influence can spread across the nation like wildfire. As the campaigns head into their final weeks, NIADA urges you to register to vote, study the candidates and their positions on the issues important to your dealership, and cast an informed ballot. In doing so, you can be a driver in reinventing the federal government. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

THE POWER OF ONE, THE POWER OF MANY Perhaps you have had the question cross your mind: Does my single vote make a difference? Absolutely. You need only to look at the 2000 presidential election and the battle for the state of Florida to realize every vote counts – and every vote is counted. Had even a few individuals decided to sit home that day, the outcome of the race WWW.NIADA .COM / OCTOBER 2016 /

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F E AT U R E S T O RY

Knowledge Is Money B Y G A RY B I S K U P

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TO GET MORE LOANS APPROVED, A L L Y O U H AV E TO KNOW IS T WO THINGS: YOUR LENDERS AND YOUR CUSTOMERS

ver the past few years, independent dealers have benefitted from a growing subprime market. More lenders expanded their consumer base into deeper subprime categories, creating competition for dealer business. Now that trend is beginning to reverse. While subprime paper is still being bought, lenders are now beginning to think about when to pull back from the market. According to Experian’s first quarter State of the Auto Finance Market Report, both 30- and 60-day delinquency rates rose as the percentage of loans in the subprime portion of open portfolios grew. That trend, compounded with an increase in amount financed, terms, rates and subprime payments, has caused waves of concern among auto lenders in the subprime space. Going forward, independent dealers can expect a movement among lenders to reduce their subprime book of business, meaning lenders will not be as competitive for subprime paper and dealers will need to work harder to get more loans approved. LENDER CRITERIA So how do you get more paper approved? It all boils down to two things: knowing your lenders and knowing your customers. Every lender uses its own set of criteria for approving loans. Some base their decisions on five credit tiers. Some deep subprime lenders use dozens of tiers and qualifications. Some focus mainly on loan-to-value. Others require several stipulations to be submitted with the application before approval. And some lenders use software to auto-approve or deny claims, while others are more old school. Your team needs to know how each lender works like the back of their hand. If you use F&I software to submit applications, each lender’s requirements should be stored in the system for easy access. If you work with lenders that don’t accept applications through F&I software, you should have documentation available for your team to review their processes. The easiest way to quickly determine loan requirements is to set up a rate matrix that takes into account each lender’s requirements, using averages to determine terms and rates based on vehicle model year and credit tier. CONTINUED ON PAGE 38

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At left is an example of a rate matrix based on five credit tiers. With a rate matrix like that in hand, your team should have a good starting point to structure loan applications correctly for consistent approvals. That is key – most lenders will not negotiate a loan that is automatically denied. LENDER BOOK OF BUSINESS So what do you do if you have an application that is likely to be denied? Compare the application to your rate matrix and make the necessary changes to get it approved. Then get on the phone with the lender to negotiate and get the application as close to what the customer wants as possible. Again, negotiating with lenders depends on how well you know their business. Beyond getting an initial application approved, think about their total loan portfolio. Your lenders will want enough business in the credit tiers in which they specialize to justify taking on paper outside of their specialty. At the beginning of each month, make a mental picture of your preferred lenders, evaluating two things: • How many applications you send their way versus how many approved loans you book with them. • How much business you send them that falls within their specialty versus outside of it. Each lender has its own goals for look-to-book. Some want to book as much as 50 percent of the applications sent their way. Some are happy with less than 10 percent. CONTINUED ON PAGE 40

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Make sure you are meeting those look-to-book goals to help with your negotiations. And don’t be shy about asking lenders what those goals are. In addition, the majority of the business you send to lenders should always be within their specialty. If not, the majority of your applications will be denied and you could potentially lose that lender relationship. Set your monthly goals for the amount of business you send to each lender, then work those goals. Once you meet their benchmarks, it will be much easier to negotiate with them for those applications that fall slightly outside of their specialty. KNOWING YOUR CUSTOMERS All too often, dealers fall into a trap by landing customers in vehicles for which they can’t qualify. Dealers then have to backtrack and reduce the cost of the vehicle, reducing and/or eliminating front-end profit to accommodate the more lucrative backend profit. Or they have to inform the customer he can’t afford the vehicle and try to land him in a new vehicle. How likely do you think customers will be to stay to find a new vehicle? Probably not very, especially since they’ll be embarrassed and upset they can’t get

what they want. What’s more likely is that the customer will go to your nearest competitor and buy from them. So when it comes to getting loan approvals, it is equally important to know your customers as your lenders. You want to put them in a vehicle they can afford and your lenders will approve. Think about the sales process from the finance standpoint backwards. Before a customer gets his heart set on a certain vehicle, qualify him for the inventory on your lot. You don’t have to run a credit check as soon as he walks through the door, but you can ask some qualifying questions before looking at vehicles, such as: • How long have you been at your current position? • About how much do you make each month? • Do you own or rent your home? How much is your monthly rent or mortgage? • What are you budgeting for a monthly payment? • How long have you owned your current vehicle? Is it paid off or still under a loan? How much do you still owe, or how long have you owned your vehicle outright? • How much are you planning to put

down on the vehicle today? The answers to those questions can give you a basic idea of how the application will look. For example, if a customer who is recently employed, making $2,560 per month with a $1,200 rent/mortgage payment, comes into the dealership expecting to purchase a car for no money down except a trade-in, you can make an educated guesstimate on the type of vehicle he can qualify for. The sporty, red 2003 Porsche that caught his eye might be out of the picture, but the 2013 Kia Rio might meet his needs – and the lender’s – perfectly. Rather than letting customers dictate the car selection process, educate them on what they are likely to qualify for, then show them the vehicles within that range. That practice protects your front- and back-end profit by structuring a deal with loan-to-value in mind from the very beginning. ADD INVENTORY TO THE MIX Now, let’s say you have a customer who comes in set on a particular vehicle that is slightly out of reach, and she won’t hear about any other vehicles on your lot. That’s OK. You can still work with her to try to increase her down payment. And if you have to, you can cut down on your

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front-end profit to make the deal work. The point here, once again, is to fill out the application to be approved. Once you have the approval, get on the phone with the lender to see what you can do to massage the approval into something that works for your customer’s budget and your dealership’s profit. But, really, who wants to give up profit for any reason? With independent dealers specializing in pre-owned vehicles, it can be very easy to fall into a trap in which a given inventory simply won’t qualify for loans. Ten, 11 and 12-year-old highmileage vehicles often fall into that category. For those dealers attached to selling high-mileage inventory, I’m not saying you have to stop. Just understand that the majority of your deals will be cash deals, which makes it much more difficult to sell products to increase your back-end profit. Evaluate your inventory mix based on your rate matrix to determine where adjustments can be made. Replace some of those highmileage vehicles with late-model, lowmileage vehicles that qualify for financing. Take a look at the manufacturer warranties for those vehicles to better determine how to present your F&I products for maximum penetration.

BIG PICTURE THINKING One common practice that should be avoided at all costs is “shotgunning” an application to every lender you work with, hoping one will bite. Here’s the problem with that. It increases the number of deals your dealership submits to lenders that are denied, reflecting poorly on your dealership’s business practices. It has the potential to throw off lookto-book ratios with the lenders that do approve – assuming more than one lender approves the deal. It negatively affects the customers’ credit and can honestly make them angry when they start receiving all the rejection letters, which could result in refinance. That goes back to understanding the lender. By the time your team has helped a customer select a vehicle and complete the application, they should have all the information they need to know to which lender to submit the application. Make it a priority for your team to always submit applications that can be approved by learning lender requirements, qualifying customers and submitting everything required to receive an automatic approval. Dealers who keep finance objectives in

mind when approaching sales are more likely to consistently submit paper that can be approved. Remember, the more deals you submit that are approved, the easier it will be to negotiate with lenders. In addition, dealers who consistently make their lenders’ goals for look-to-book will have an easier time building lender relationships and get more leeway on deals that fall outside of the lender’s specialty. From a dealer perspective, approaching the sales process from a finance mindset makes it possible to submit an application that is likely to be approved, with room to sell products on the back end, without reducing front-end profit and with an increased overall PRU for the vehicle sold. In addition, customers should leave the dealership happier, knowing they are driving a car they like and can afford, with protection products that will help them keep the car on the road without drastically affecting their budget. That results in fewer chargebacks due to refinance or product cancellation and more money to the dealership’s bottom line. Gary Biskup is regional vice president of independent dealerships for EFG Companies, a provider of F&I products, services, administration and training to independent dealers nationwide. He can be reached at gbiskup@efgusa.com or (214) 470-6859.

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F E AT U R E S T O RY

Gold-Medal Effort B Y J O E L E S C O TA

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FOCUS LIKE A N O LYM P IA N AND RUN YOUR BUSINESS AS THOUGH YOUR LIFE DEPENDED ON I T – B E C AU SE IT DOES

f you received notification you would lose your home, your family and everything you own – including all of your financial resources – if your business did not show a remarkable improvement in sales and net profitability within the next 30 days, would you manage your business any differently than you do now? Would you focus more of your daily energy on seeking ways to generate more sales, generate more total gross profits and reduce and maintain operating expenses within the guidelines of the industry? Would you manage your staff differently? If you knew you would lose everything if your business did not turn around within the next 30 days, would you Facebook less, stay at work a little longer, get to work a little earlier, review your purchasing habits more closely and inspect your inventory daily to be sure the vehicles are ready for sale? What I’m getting at is this: It has been my personal observation that truly successful entrepreneurs and leaders approach each and every business day with a focused determination and drive, as though their life depended on it. Obstacles that block the path of truly successful entrepreneurs are overcome because their life depends on it. They also know the livelihoods of their employees and the well-being of their employees’ families, not to mention their own families, depend on their ability to create ways to generate sales and profits and to overcome whatever problems happen to appear along the way. The year 2015 was a very good one for used vehicle sales, and sales of vehicles by independent dealers through July 2016 increased 7 percent from the same period last year. That is very good news. Yet there are many independent dealers who are just squeaking by financially. Too many dealers are accepting mediocre performance from themselves and their employees. Individuals can choose either to accept defeat or fight until all reasonable and extreme efforts by all employees have been exhausted. There is no Plan B. There is only a Plan A. Successful entrepreneurs are very careful not to have an alternative plan to fall back on should their first attempt fail. Dealers can’t give up on September if sales are off and rationalize October will be better. You cannot say, “It’s okay, guys, October will be a better month. I’ll have another salesperson on board, we’ll have better inventory, we’ll get our website going. We’re going to buckle down and get back to basics.” CONTINUED ON PAGE 44 WWW.NIADA .COM / OCTOBER 2016 /

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What happened to your plan for a great September? I’ll tell you what happened. You had a Plan A for September, but when you felt the plan wasn’t working you gave yourself and your employees a chance to relax, rationalize, slow down and surrender September to other dealers. Did you really give up on your Plan A or did you fail to implement your Plan A? Did you even have a plan or did you just hope to have a good September? Was your plan to tell your team, “Hey, guys, we need it this month. We need to make it happen. We’ve got to sell some cars and make some money”? Over the 15 years I was chairman of the Automotive Marketing department at Northwood University in Michigan, countless students asked me this question toward the end of each semester: “So, professor, what’s my average so far? I’m trying to figure out the lowest possible grade I can make on my final exam so I can pass this class.” Really? You want me to tell you to what degree of mediocrity you should perform in order to get by? I don’t think so. Yes, there really is such a thing as a stupid question. Those students asked it. It would never occur to me to support such irrational thinking. It was my

duty and my responsibility to teach my students how to think like leaders and perform like leaders. But many dealers employ such people and tolerate such behavior on a daily basis. Salespeople aren’t challenged and held accountable for their sales results. Don’t you think some salespeople are calculating the minimum work they can perform, as opposed to the maximum attainable? Don’t you think some salespeople have already calculated their means of achieving financial success while still failing to achieve unit sales? They do the math. If they do not see 14 sales for themselves in Plan A they fall back on Plan B, which is to sell a couple of the oldest units in stock and collect the outrageous spiff or bonus you put on those units. And perhaps also to make a high gross profit on just one “good kill,” and boom – financial achievement. In the meantime, the store fails to reach unit sales projections, inventory continues to age, F&I income suffers, the dealer loses $4,000 on the old units the salesperson did sell (not including the $1,000 in total spiffs), the dealership didn’t take in those much-needed trades to help restock the shelves with

inventory and market share is lost to the competition. You see, once the backup plan is reviewed and analyzed, it becomes the dominant goal to be achieved, and the first goal is abandoned. How does a dealership overcome this phenomenon? How do you get employees to focus on the main goal of the dealership? This is where the main goal and objective must be discussed and reviewed each and every day by the dealer or general manager. It has to be an obsession. If has to be implemented and carried out as if your life depended on it. I ask dealers all the time, “What does your month look like? How do you think you’re going to finish up?” The worst possible answer I get is, “We might miss our objective this month. It’s not looking good. We got off to a slow start.” Or, “We got off to a great start but things fell off the second half.” Why are you telling me this? Why are you telling me that you’re not going to hit your objective when you should be telling me what your strategy is to make dang sure you do hit your original objective. If you’re telling me you’re not going

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to make it, what in the world are you telling your employees? What message is being relayed to them by your words and your actions? Why expect employees to continue to fight the good fight until the end when the leader has already emotionally surrendered? I have a wonderful opportunity to visit independent and franchised dealerships throughout the year. It’s one of best parts of my job. I get to see first-hand how dealers manage day-to-day operations in this highly flexible and rapidly changing environment. So many times I observe employees at their various dealerships working to beat the band. I mean, it’s as if I need to stand back while the sawdust flies all around them because they’re so focused on their tasks. Hands are flying, keyboards are being pounded, lunch is eaten at the desk, deals are being processed. Being inquisitive as I am, I humbly ask, “Is it always this crazy around here? You seem to really be cranking out the work.” That’s when the “aha” moment hits me. The employee looks up at me as though I’m interrupting the work of a nuclear physicist and responds, “Oh, no, I’m just trying to get ahead of things so I can leave early tonight. My husband was off work today and he has the boat all gassed up and ready to go. He wants to get out on the lake before the crowds.” I was impressed. That individual was working as if her life depended on it. By the way, that was the same individual who earlier in the week had complained to me that the dealership needed to hire another person to help her out because she had so much work to do. You see, when people work as though their life depends on it, work gets done – and it might even get done more efficiently and quickly. I suppose it’s just a matter of questioning who the employees are really working for and what they’re working toward. In this instance, the employee was surely not working for the company. It’s time to take inventory of your daily activities. I mean, truly take an inventory of every single activity you’re involved with each and every day. You’ll be amazed at how many distractions you have either created or accepted that are preventing you from achieving your company’s fullest potential both in sales and in net profit. I enjoyed watching the Olympics this year. I was especially drawn to the CONTINUED ON PAGE 46

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“Baltimore Bullet,” Michael Phelps. In one heat, the TV camera got clear, close-up shots of the swimmers’ faces. I immediately noticed one swimmer kept checking his position against Phelps. Instead of focusing on the finish, he was obviously wanting to know where he was in relation to the champ. The camera shot of Phelps, on the other hand, revealed a man determined to win. He was swimming as though his life depended on it. He was focused on the goal. The rest, as you know, is history.

Phelps won the gold medal. Watch any great athlete perform and you’ll consistently notice how focused the athlete is. Not sometimes, but all of the time. Think about it. Have you ever found yourself Facebooking or phoning your colleagues to see how they’re doing compared to you? In your heart what you’re hoping to discover is there are others out there also struggling with sales or inventory acquisition or having challenges with personnel. Ask yourself this question: What good purpose does it serve to hear others tell

SUCCESSFUL BUSINESS LEADERS AREN’T WORRIED ABOUT THE COMPETITION. THEY’RE FOCUSED ON WINNING. T H E Y H AV E A MISSION. me, “Oh, yeah, this is the worst month we’ve ever had,” or, “Tell me about it, I’ve been trying to hire a decent salesperson for, like, a year now.” Successful business leaders aren’t worried about the competition. They’re focused on winning. They have a mission. Olympic runner Mo Farah was accidentally tripped during the 10,000 meter race. The guy is 33 years old, but he got back up after being tripped and won to claim the Olympic gold. During an interview at the end of the race he explained to a reporter how difficult it was to get back up and win. He said he was determined to do it for his stepdaughter Rihanna. He had a goal. He ran like his life depended on it. He was focused. Michael Phelps did not show up at the Olympics to swim. He came to win gold. Mo Farah did not show up at the Olympics to run. He came to win gold. Are you showing up at work to sell a car or are you coming to earn gold? Are your employees showing up to work to earn a check or are they coming to win gold? Joe Lescota, a veteran of more than 25 years in the automotive industry, is NIADA’s director of dealer development and instructor for NIADA’s Certified Master Dealer program. He can be reached at joe@niada.com.

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EVENT SPOTLIGHT

Industry Events

DEC. 6-8, DALLAS

NIADA National BHPH Summit

Ready to reach new levels of excellence in the Buy HerePay Here sphere? The chance to do just that is coming soon at the inaugural NIADA National BHPH Summit. The latest step in NIADA’s ever-growing commitment to serve the Buy Here-Pay Here industry, the National BHPH Summit, set for Dec. 6-8 at the Embassy Suites DFW Airport North, is poised to become the BHPH world’s biggest event of the year. The Summit features the BHPH-specific insight and experience of NIADA national director of 20 Groups Chuck Bonanno and NIADA Dealer 20 Groups moderators/ consultants David Brotherton and Mark Dubois as well as other top BHPH speakers and compliance specialists. The education sessions encompass all areas of a Buy Here-Pay Here operation, including sales, underwriting, collections, service, inventory management, compliance, marketing technology, social media and more – plus industry benchmarks, a regulatory update and strategies to succeed in 2017. With all that information available, the Summit isn’t just for dealer principals. It’s for all staff members involved in the operation, including owners, managers, collectors and sales and service staff. Which is why discounts are available for dealerships that bring multiple attendees. There’s also a $100 discount for early registration – before Oct. 31 – as well as discounts for NIADA Dealer 20 Group members. “We are excited to host the BHPH Summit,” Bonanno said. “It is the industry-leading event for all executives, managers and team associates involved in all aspects of BHPH, including inventory acquisition, reconditioning, sales and marketing, underwriting and collections, compliance and technology. “Please don’t miss this event. It will change your world.” For more information or to register, visit www. niadabhphsummit.com, email diann@niada.com or call 888-906-2705.

For an interactive calendar, including links, contract information and more, visit www.niada.com and click on the Events tab.

2016

October 3-5 4-6 7-9 8 8 11 13 20-22 20-23 21 22 23-24 31-Nov. 3

DealerSocket User Summit NIADA Boot Camp Georgia IADA Board Meeting Michigan IADA Awards Dinner/Dance Oregon IADA Convention and Expo Texas IADA Board of Directors Meeting New Mexico IADA Convention and Expo 14-15IADA of California Fall Convention Florida IADA Convention and Expo Virginia IADA Convention and Expo Arizona IADA Poker Tournament Ohio IADA Annual Expo NAAA Auction Standards Training Automotive Aftermarket Products Expo (AAPEX)

San Antonio, Texas Dallas Augusta, Ga. Sterling Heights, Mich. Portland, Ore. Austin, Texas Albuquerque, N.M. Lake Tahoe, Nev. Orlando, Fla. Roanoke, Va. Phoenix Lewis Center, Ohio Manheim, Pa. Las Vegas

November 1-3 NIADA Certified Master Dealer Class Atlanta, Ga. 1-3 NABD Orlando BHPH Conference Orlando, Fla. 1-4 SEMA Show Las Vegas 5-6 Mid-Atlantic Regional IADA (MARIADA) Conference Philadelphia 10 Arizona IADA Dealer Conference Mesa, Ariz. 10 Automotive News Leading Women Network Dearborn, Mich. 14-18 Used Car Week Conferences Las Vegas 15-18 NAAA Convention/NRC Conference Las Vegas 15 NADA/J.D. Power AutoConference LA Los Angeles 18 Arizona IADA Golf Tournament Mesa, Ariz. 18-19 NAAA Auction Standards Training Orlando, Fla.

December

6-8 NIADA NATIONAL BHPH SUMMIT • DALLAS 10 Colorado IADA Charity Gala

Westminster, Colo.

2017

January 10-11 20-22 24-26 25-27 26-29 30

Automotive News World Congress Nebraska IADA Convention AFSA Vehicle Finance Conference and Expo SAE Government/Industry Meeting NADA Convention and Expo Texas IADA Board of Directors Meeting

March 1-2 NAAA/Conference of Auto Remarketing (CAR)

Detroit Kearney, Neb. New Orleans Washington, D.C. New Orleans Austin, Texas Las Vegas

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