S TAT E A F F I L I AT E
ALABAMA
A L A B A M A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I AT I O N A P R I L / M AY 2 0 17
SAVE THE DATE
AIADA CONVENTION
JULY 20-22
PERDIDO BEACH RESORT ON THE PRISTINE WHITE SAND BEACHES OF ORANGE BEACH, ALA.
PA G E 10
DALLAS, TEXAS Permit No. 2079
PAID
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V I S I T U S AT W W W. A L A B A M A I A D A .O R G
INSIDE
WELCOME NEW MEMBERS
06.....................................................................App-Driven Life 08............................................................Ensuring Compliance 14................................................................. Tips for Subprime 15................................................Autotrader Names Top Tech 16......................................................Where Is My Customer? 18....................................................................Dealer Spotlight 22........................................ Reasons Your Facebook is Failing
WHAT’S NEW
Tire Safety Week Dates Announced
The dates for National Tire Safety Week 2017 are May 28-June 3. An initiative of the Rubber Manufacturers Association, the event promotes tire safety among consumers. Auto dealers join the tire and auto industry to encourage drivers to “be tire smart.” For more information, or to request print materials, visit www.betiresmart.org.
ADVERTISER’S INDEX
Ace Motor Acceptance ..........................................................7 ARA GPS.................................................................................. 3 AutoZone ...............................................................................14 Black Book............................................................................ IBC DAA Dealers Auto Auction Group, LLC ..................................5 Manheim ................................................................................11 Manheim Pennsylvania..........................................................13 NextGear Capital....................................................................12 NIADA CPO........................................................................... IFC PassTime.................................................................................15 STARS GPS ..............................................................................9 VAuto....................................................................... Back Cover
OFFICE
Harmon Lisenby
Matthew King
Scott Grantland
Julian Joiner
Jonathan Brown
James Stokes
Michael Graydon
Leisha Inman
Tarryl Moody
Donna Kolb
Shirlee Scott
Allen & Anna McConathy
A & H Auto Alabaster
ASF Motors Hueytown
Brian Barton
Devante Braxton
Dealership Capital Partners Macon, GA
Nick Starnes
Braxton Automotive Birmingham
Lisa Bundy
CarGirl Jacksonville, FL
DriveOne Automotive Bessemer
Camille/Don Thomas East Limestone Autoplex Inc. Athens
Grantland Motors Rainbow City Graydon Motors Trussville
Family Legacy LLC dba Honorable Used Auto Sales Montgomery
Jeremiah Mote
Jeremiah Mote DBA CM Auto Sales Jasper
Joe Scott
Joe Scott Motor Co Montgomery
Joiner Auto Sales Dothan Just Lookin Auto LLC Moulton
Mac Auto & Collision Inc. Hueytown
Douglas M. Melton Melton Automotive Alabaster
Mary Powers
Powers Used Car Sales Atmore
Derwin Perry The Car Guys Millbrook
EXECUTIVE COMMITTEE
DIRECTORS Barry Searcy
Larry Morris
Lester Avery
President
John Dunn
Reed Ingram
Joe Smith
Lance Turner
Kelly Steely
Chris Mundy
Willie Colvin
Darrell Pettie
Randy Sheffield
Bryan Cooper
Jerry Giles
Chris Hadder
Ethan Hunt
Wayne Wilkinson
Chris Mullinax
Tim Duke
Roderick Underwood Ricky Young
Jay Saul
Randy Little
Randy Crump
Erek Yarbrough
Todd Oden Birmingham
Vice President Chad Tillery Jemison
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Alabama Independent Automobile Dealers Association 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 AIADA 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 © 2017 by NIADA Services, Inc.
Roggi Garcia
BB Wholesale Auto LLC Muscle Shoals
President Elect
NIADA HEADQUARTERS
Coastal Automotive LLC Bay Minette
Automotive Excellence Daphne Detail LLC Pleasant Grove Daphne
Pokey Brimer Oxford
120 Vulcan Road Birmingham, AL 35209 Phone: (205) 942-1000 Fax: (205) 942-3565 Website: www.alabamaiada.com To become a member of AIADA, please call (800) 239-2423
Clement Motor Company Homewood
Secretary/ Treasurer Robbie Case Hartselle
Chairman of Board Paul Claborn Albertville
Muscle Shoals Sylacauga Anniston
Tuscaloosa Huntsville Mobile
Birmingham Jasper Jasper
Birmingham
Montgomery Hoover
Pleasant Grove
Tuscaloosa Florence
Bessemer
Oxford
Montgomery Chelsea
Thomasville Jasper
Hoover Boaz
Satsuma
Pleasant Grove
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com PRINTING
Nieman Printing
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April/May 2017 AIADA
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ASSOCIATION NEWS
BY CHAD TILLERY, AIADA PAC CHAIRMAN
AIADA PAC FUND
Help us Build This Important Program
We really appreciate you dealers who are following through with your commitment for the AIADA Auto PAC! These dealers pledged to donate $1 per sale each month to this very important program. If you are not contributing, we would encourage you to do so. The more money in our PAC program, the more we can support legislators who help our auto industry. We have supported some of our dealer members who ran for local office in their counties or cities. We also supported one of our dealer members for Congress. We have contributed to several Alabama legislator spots, such as attorney general and secretary of state. We contributed to Luther Strange as attorney general, and now he is moving to U.S. Senate to replace Jeff Sessions. This is a very important program, and we would like to encourage you to help us in building it up. If you have any questions, please contact me at cktillery@hotmail.com or contact the association office.
ASSOCIATION NEWS
SAFETY WATCH
GRANTING A CHILD’S WISH
VEHICLES WITH UNFIXED RECALLS ON THE RISE
Ladies Auxiliary Update
In just a few short months we will be preparing for our 48th annual AIADA Convention in Orange Beach. This year is going to be super exciting, so definitely make plans to be there. Friday night we will be granting a child’s wish through Make A Wish Alabama. The child will be attending the convention, so you will get to experience all the excitement of the wish granting. We will hold a silent auction on Thursday and Friday and have a few items for the live auction on Friday night. If you have any items you would like to donate for the auction, just let any of the Ladies Auxiliary members or the association office know. We are selling T-shirts to wear on Friday night. Please preorder shirts by contacting Judy Benton. We sincerely appreciate all of the support you give us. Looking forward to seeing everyone! Sherri McFarland Secretary/Treasurer AIADA Ladies Auxiliary
MANAGEMENT MATTERS BY NEXTGEAR CAPITAL
AUTOMOTIVE FLOORPLAN MANAGEMENT BEST PRACTICES Capitalize on Your New Capital
Once a dealer is cleared to use an automotive floorplan, they instantly have access to more capital to aid in purchasing inventory. However, along with that instant access to more capital is a new set of management responsibilities. Keeping these best practices in mind will help dealers integrate their new capital into their current business plans, allowing them to use their floorplan more effectively. Fit the floorplan to the dealership. Dealers need to be aware of their own business numbers to optimally manage an automotive floorplan. What is the dealership’s average inventory turn time? How many cars need to be sold to meet operating expenses? What is the average profit margin per car? Knowing the answers to questions like these can give dealers key insights to help establish where they are, where they are going and how long it will take for them to reach their goals. The answers to those questions can also provide clarity on how an automotive floorplan can fit into the current shape of the business.
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Use floorplans for discipline. When a dealer uses cash or a regular business loan, there is no incentive to sell a car or profit quickly. Additionally, a dealer’s initial investment will depreciate depending on how long the vehicle stays on their lot. Floorplanning can help provide a dealership with discipline. Dealers have a given amount of time available until they have to pay a vehicle off. Use that deadline to the dealership’s favor. If a dealer hasn’t received a profitable offer on the vehicle due for payoff, that approaching deadline can jumpstart their inventory exit strategy process. Whether that exit strategy includes selling the car at auction, working with other local dealers, or holding out for a more profitable offer, the floorplan deadline ensures a dealer doesn’t just let their inventory, and their initial investment, depreciate. Always floorplan responsibly. A dealer’s business data combined with a floorplan can lead to excellent dealership profits. However, dealers need to make sure they floorplan responsibly. If a dealer uses their entire line of credit and those vehicles haven’t sold once payoff time arrives, that dealer is going to have a pretty hefty bill. Space out inventory purchases. That way, payoff dates are spaced appropriately for dealership cash flow, just in case inventory hasn’t sold before payoff time. Used together, these best practices allow dealers to purchase the inventory needed, provide incentive to profit and allow for manageable floorplan payments.
One in Four Vehicles Americans Drive Has Open Recalls
This year, millions more lives may be at risk from people driving and buying vehicles with unfixed safety recalls. According to Carfax, more than 63 million recalled vehicles now are in use across the country, an alarming 34 percent increase from 2016. The annual research also suggests this issue affects nearly one in three vehicles in Texas, the highest rate in the nation. Behind Hawaii, the other Gulf Coast states of Mississippi, Louisiana and Alabama round out the top five. In addition, people in California, Texas, Florida, Pennsylvania and New York have the most vehicles with open recalls. “Reducing the number of open recalls on the road is an ongoing effort,” said Carfax communications director Larry Gamache. “Safety is our number one concern. Carfax, manufacturers and the government are working together to make it easier for drivers to get accurate information and timely alerts about open recalls. It may be inconvenient, but people driving recalled cars should make getting them fixed a high priority.” The new data also suggests family life may be a factor for some vehicle owners not knowing about a recall or getting it fixed. Minivans and SUVs – family-oriented vehicles – are the ones most likely to have unfixed recalls. With myCarfax.com, vehicle owners simply enter their license plate, a feature unique to the service, or VIN to get started. The service sends recall alerts to users’ mobile devices or email for up to five saved vehicles. In addition, anyone worried about buying a car with an unfixed recall can shop with confidence at carfax.com. Every vehicle listed for sale there comes with a free Carfax report, which includes open recall information reported to Carfax. To learn more visit www.carfax.com.
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April/May 2017 AIADA
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EXECUTIVE’S LETTER
BY RANDY JONES, AIADA EXECUTIVE DIRECTOR
APP-DRIVEN LIFE Are Smartphones Changing Our Lives?
Apps are becoming more a part of our everyday lives. It’s how we check the weather, music, Facebook, bank accounts, Internet and email. I remember when I got my iPhone. One of the guys I worked with said, “It will change your life.” Well, it did. My new favorite phrase is, “Let me Google that.” I’m like millions of Americans who rely on my phone. The app-driven life has kickstarted a new computer revolution. The world has adopted smartphones and tablets 10 times faster than it embraced personal computers in the 1980s, twice as fast as it logged into the Internet boom of the ‘90s, and three times faster than it joined social networks in the new millennium. So isn’t it time we catch up? AIADA is proud to introduce the AIADA Auction Coupon app! GOOD OR BAD? Before you make up your mind, read with an open mind some of the features of the new AIADA Auction Coupon app. Changes you will like: • Buying online. You can use coupons online at some auctions (not all online auctions have that access yet). • You should never forget your coupon book again – all of your AIADA auction coupons are on your cellphone. If you lose your phone or your phone crashes, no problem – just download the app on your new phone. Your data is never kept on your phone – it is protected on a server and is always up to date. Have more than one buyer at your dealership? You can put your coupon app on more than one phone. You and your buyers can use your coupons at different auctions at the same time. Because your data is kept in one place, it keeps your coupon app up to date. Just like in the old paper book, coupons can only be used as they are set up in the book. All this is under your AIADA member number and cannot be misused. Every time your coupon app is used, you will receive an email showing the auction, vehicle purchased, phone number used, time and date. You can receive a special text if an auction is having a special sale. You can also opt out of text notifications. AIADA, making your buying experience easier! The AIADA Auction Coupon App has some great reports for its members. Would you like to know how many coupons you used at ADESA, ABC, DAA or any of the other auctions listed on the AIADA Coupon App? Now you can get the total numbers used, the vehicles the coupon was used
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on, the date used and the total amount of discounts you have received year to date. You can also get that report on individual auctions or a report on all the auctions you have used. What about all the auctions you have not used – how much money are you leaving on the table? Wouldn’t that be something you should know? THE VALUE OF YOUR ASSOCIATION AIADA is now the sixth-largest independent automotive association in the nation. Be recognized as a professional – become a member of AIADA! Here are a few of the benefits we offer: • If you are a new dealer, you will need banks to finance your customers’ vehicles. Most customers today want you to provide financing for them. We have a way to get you lenders like Wells Fargo, America Credit and many more, even with no experience or a short time in business. This program is offered to AIADA members only at no cost. • Do you know which forms you need with each type sale? Today’s class is ETAPS Only, in which we show you all the other forms you will need with each sale. I will send you a complete list of all forms needed, both federal and state. • Individual help. You don’t have to be alone in an ever-changing and challenging industry. Qualified and experienced staff members offer prompt attention and answers, not lip service. DEALER BENEFITS We offer discounted rates on the following services and products for AIADA members: • Buy/sell auction discounts. • Garage liability discounts (up to 12 percent). • Floorplanning: We have five of the top floorplan companies in the country. • Finance programs: prime, secondary and deep subprime – we get you access to all. • Advertising and websites. • Account purchase programs for BHPH dealers. • Dealer management software. • Car rental systems. • Collateral protection systems. We also have attorneys on call for expert legal advice. We have POA’s, title extensions, title correction forms and much more. We offer title and ETAPS support, and we can help you make sure you are getting all the correct forms signed. More on what we offer: • Need some of the best ideas in the nation on getting more customers to your dealership? • Need to know what your inventory should be like? • Need a better relationship with your lenders? • Need to buy high-quality parts at the lowest discount rate?
AIADA, ALONG WITH NIADA, REPRESENTS THE INDEPENDENT AUTOMOTIVE DEALER. WE HAVE ANSWERS TO ALL THE QUESTIONS ABOVE, PLUS MANY MORE. • Need our government representatives in Montgomery and Washington, D.C., to understand our industry? • Need to know which vendors will go the extra mile for you? • Need legal advice from someone who knows the automotive industry and has years of experience? AIADA, along with NIADA, represents the independent automotive dealer. We have answers to all the questions above, plus many more. What your association does: • We promote you in Montgomery and Washington, D.C. • We help you comply with all city, county, state and federal laws. Example: The “FTC Buyers Guide” just changed in January. The Buyers Guide must be on every vehicle you show for sale. The fine can be $40,000. Our members learned about this in November 2016. We sent a copy and showed you how to fill it out. This is just one of the many things we keep you up to date on. • We constantly work to improve our industry to better serve the public. • We take information from all over the nation and compile it to give you a better understanding of your marketplace. • We anticipate future issues and the needs of our independent dealers. • We will expose and halt any scheme designed to deceive or defraud the automotive industry. • We will encourage the American system of free enterprise. • We protect your business interest. • We work to make you more successful. • We help you make your dreams come true! We started in business 48 years ago, and we are just a phone call away. You can join today for only $290! Call (205) 942-1000 or email randyejones@live. com.
www.alabamaiada.org
DMV NEWS
ENSURING COMPLIANCE WITH DEALER LICENSE LAWS Dealer Investigations
The Alabama Department of Revenue, Motor Vehicle Division, is responsible for issuing dealer regulatory licenses and designated agent authority to Alabama entities. This responsibility also includes the authority to conduct dealer investigations. The Motor Vehicle Division Audit Unit is responsible for conducting dealer investigations, as well as other types of motor vehicle investigations. The purpose of dealer investigations is to ensure dealers are complying with state dealer regulatory license laws as provided in sections §40-12-390 thru §40-12-400, Code of Alabama 1975. Dealer investigations are often the result of irregularities noted during the dealer regulatory license application process. They are also the result of information received from county licensing officials, law enforcement, motor vehicle dealers and the general public. The primary type of dealer investigation is known as a site visit, which is normally conducted prior to the issuance of a new (first time) dealer license. A site visit involves an auditor visiting the location, taking pictures of the lot and signage, conducting interviews and relaying the findings to the Dealer License Unit. When warranted, the Motor Vehicle Division may conduct a full investigation. A full investigation includes the same procedures as a site visit, but also includes the examination of a dealer’s records to ensure records are being kept to substantiate each and every vehicle acquired and sold as prescribed by §32-8-45 and §40-12-399, Code of Alabama 1975. All issued dealer license plates, dealer transit plates, and temporary tags are inspected to certify the dealer has physical control of all dealer plates issued, and the plates are being used in accordance with §4012-264, Code of Alabama 1975. If warranted, joint investigations with other divisions of the Department of Revenue, such as income tax or sales tax, may occur. Furthermore, the status of the surety bond and insurance are verified. Note: Insurance companies normally contact the Motor Vehicle Division when the surety bond or insurance has been cancelled. The Dealer Licensing Unit will issue, deny, or revoke the dealer license based on the auditor’s findings. The most common finding from dealer investigations is commonly referred to as a “sham operation.” This is when an applicant for a dealer regulatory license has provided a physical location in Alabama but the
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investigation reveals there is no actual place of business at this location. The locations reflected on the dealer regulatory license are usually located in rural areas, abandoned buildings, virtual office, UPS stores, etc. The law requires that new and used vehicle dealers must have a retail business location in Alabama. Wholesale dealers and rebuilders need only have a location in Alabama where business is being conducted. Another common finding is curbstoning. Curbstoning is a commonly used term for vehicles sold to the public by individuals without a dealer regulatory license, or retail sales by licensed wholesale dealers. Curbstoning normally occurs when vehicles are placed for sale on the side of the road, in a vacant lot, in a high visibility area, or on the Internet. As provided under §40-12-390(12), Code of Alabama 1975, anyone displaying motor vehicles for sale at retail to the public, or anyone buying, selling, exchanging, advertising or negotiating the sale of five or more vehicles during a calendar year (whether owned or not) for retail sale to the public, must be a licensed dealer. Curbstoning is most effectively handled by local law enforcement using local/state ordinances, zoning laws, etc. Dealer investigations have revealed that residents of other states attempt to obtain an Alabama dealer regulatory license because it allows them the ability to access vehicle auctions throughout the country and purchase dealer license plates, evade taxes, etc. The Motor Vehicle Division is contacted regularly by law enforcement officers in New York, Maryland, Illinois, New Jersey and Pennsylvania regarding vehicles operating with Alabama dealer license plates involved in illegal activity. Non-residents often use Internet dealer licensing services to obtain a dealer license from the state of their choice. When asked why Alabama is selected as the state of choice, individuals often say it is due to relatively low dealer license fees, bond requirement and ease of obtaining dealer license plates. Since 2013, the Motor Vehicle Division has conducted nearly 400 dealer investigations. A vast majority of investigations have resulted in revocations, or denial of the dealer regulatory license, and fines that exceed $1,500. Individuals can be cited for operating without a proper license and are subject to the penalty provisions of §40-12-29, Code of Alabama 1975, which is initially a $500 fine, but can be as much as $1,000. Violations of dealer license plate law as provided in §4012-264, Code of Alabama 1975, are subject to a $100 fine for the first violation and a $500 fine for each subsequent violation. Additionally, if it is determined during the investigation a dealer has willfully misstated or filed documents with erroneous information to obtain dealer license plates, it may result in a Class A misdemeanor, and a civil penalty of $1,000 can be assessed by the
IF YOU OR SOMEONE YOU KNOW HAS INFORMATION REGARDING POSSIBLE DEALER REGULATORY LICENSE VIOLATIONS, PLEASE CONTACT THE MOTOR VEHICLE DIVISION AT DEALERLICENSE@ REVENUE.ALABAMA.GOV OR (334) 242-9000. department. If the dealer refuses to comply with dealer license laws, they can be subject to the provisions of §40-12-400, which upon conviction carries monetary and criminal penalties. If a dealer has been fined, upon non-payment after the 30-day appeal period a claim can be made against the dealer’s surety bond. This tool is very effective against non-compliant dealers as it makes it very difficult for them to continue operating in Alabama. If you or someone you know has information regarding possible dealer regulatory license violations, please contact the Motor Vehicle Division at dealerlicense@ revenue.alabama.gov or (334) 242-9000.
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REGULATORY NEWS BY JEFF INGRAM
WHAT IS GOING ON AT THE CFPB Update on CFPB Structure
The Consumer Financial Protection Bureau, from its inception, quickly became the major force behind the regulation of consumer financial transactions. Despite controversy, it has extended its reach into most areas that affect consumers, including the sale of motor vehicles. Shortly before the 2016 election, the structure of the CFPB was dealt a major blow when a federal court held its structure to be unconstitutional. The three judge panel attempted to correct that issue by declaring the director of the CFPB could be removed at the president’s discretion. The United States Court of Appeals for the D.C. Circuit on February 16 granted a petition for rehearing en banc. This means the case will now be decided by all of the judges in that court. The initial ruling had little immediate effect because the director was supported by President Obama. With the election of President Trump, that issue, among others, has risen quickly in importance. Two months after the election, what, if anything, has changed and what is likely to change? For now, director Richard Cordray remains in place. In January he stated the change in administration “really shouldn’t change the job at all.” He reportedly said he intended to continue pursuing banks and other financial firms aggressively. Some senators have called for Cordray to be fired. President Trump’s spokesman said “no decision has been made at this time” on whether there would be a shakeup at the CFPB. There have been stories President Trump is likely to replace Cordray with retired Texas Congressman Randy Neugebauer. Congressman Neugebauer has been a frequent critic of the CFPB. The difference between Cordray and Neugebauer can be seen from Congressman Neugebauer’s support of keeping payday lending as an option for consumers. Cordray has refused to say whether he would fight any effort to remove him. President Trump has signed an executive order designed to cut back significantly on federal regulations. President Trump’s treasury secretary, Steven Mnuchin, testified during his confirmation hearings that Congress should maintain the agency but control its budget. For now, the CFPB proceeds as if nothing has changed. What will ultimately happen will depend first on how the entire D.C. Circuit rules. If it reverses the panel’s decision, Cordray will remain in place. If it affirms the panel’s decision, President Trump could act quickly. Whatever the panel does is subject to a further appeal to the U.S. Supreme Court. Because of that,
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any final decision might not happen until after Cordray’s term ends in July 2018. What happens if President Trump does not wait for a final answer from the courts? It is possible he could, at any time, attempt to remove and replace Cordray. If that happens, there is no certainty about who will actually be in control at the CFPB. The only certainty appears to be that Cordray will be gone from the CFPB before August 2018. The question is how soon he will leave. Jeff Ingram, of Galese & Ingram, P.C., is licensed to practice law in Alabama, Mississippi and Tennessee.
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ASSOCIATION NEWS BY POKEY BRIMER
FROM THE DESK OF THE PRESIDENT AIADA Convention
One of the joys of being AIADA president is working with the convention committee preparing for the annual AIADA convention. It is the pinnacle of a president’s tenure. It is the president’s responsibility, and he or she is relied on to influence the direction for the convention’s success. I am excited about this year’s lineup and location. It will be held at the beautiful Perdido Beach Resort on the pristine white sand beaches of Orange Beach, Ala. The dates are July 20-22 – three days of training, learning and sharing ideas, along with some sun and sand and so much fun. Beachfront rooms are only $249 per night but exterior rooms are limited so reserve yours early. Register at www. perdidobeachresort.reservations.com and use promo code 13031. We are going to kick off the three-day event with two great bands: a southern rock band and a pure country band. Pair that with great food and the beach as a backdrop and we will have a redneck luau on the Redneck Riviera. We are going to party until we drop, laughing, dancing and having the time of our lives. Everybody will start the weekend upbeat and energized for a great convention. Friday we will have a kickoff breakfast and opening ceremony, followed by two tracks of quality classes offering knowledge to increase your income and improve your bottom line. We will have two sets of breakout classes with the best speakers in the nation. We will have classes to improve your collections and control your repossessions for BHPH dealers and to improve your percentage of approvals for retail dealers. After three hard hours of improving our businesses, we will have a power lunch with our vendors and a very powerful political speaker, who will explain the process of legislation and how to avoid overregulation of your business through proactive lobbying. We are a nonprofit organization and exist to provide education for and help protect our member dealers. AIADA has made an arrangement with Galese & Ingram to provide a compliance workshop in the afternoon. The CFPB has stated many times that if a dealer has made a concerted effort to train, educate himself and try to be compliant, it is a strong deterrent for the agency to place punitive fines on the dealer if any violations occur. The certificate you will receive will be proof of that effort. If you attended a similar class, the expense of attending would greatly exceed the cost of the convention. Don’t miss this opportunity to learn how to comply, protect your business
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and save money while accomplishing that goal. The workshop will end at approximately 3:30 p.m. so you can have a couple of hours in the sun and sand before the night’s festivities begin. Friday night, we will have a great dinner and the ladies auxiliary’s charity auction. We will also have Make A Wish Alabama director Pam Jones fulfill a chosen child’s wish, provided by the charity through donors such as AIADA. It is a blessing to all who witness one of these events and fills your soul with love. Last year the ladies raised more than $30,000 for charity in the name of AIADA. This year, with Jeff Bynum and big Dave Roberts in the lead, we fully expect to exceed that amount. There is sports memorabilia, Vera Bradley merchandise, bags, paintings, collector’s items and much more. Last year, two fiddles autographed and donated by Charlie Daniels were sold to two bidders. They battled for one fiddle, then Mr. Daniels, via a phone conversation, donated a second fiddle for the second-place bidder. I was thrilled to watch my friend Ken McFarland’s jaw drop to his chest when he thought he had run up the price and dropped it on his friend Chris Mullinax – only to find out he was also a “winner.” Those two great guys took it all in stride, laughing and enjoying a good time and providing for worthy charities. It reflects to the public what we have always known – the most caring and giving people in the world with the biggest hearts are independent automobile dealers. We are extremely proud to be involved in this work, but we have such a good time ribbing each other we forget all of our problems and pains as we help those challenged with life much more than ourselves. It really becomes a labor of pure love and the auction takes on a life of its own with everyone on board. We really give until it hurts. There is not a better feeling, even if you only witness the acts of love and giving. Saturday we will start with a power breakfast with one of the most powerful elected officials in our state speaking. It will be exciting if you are interested in the direction of business and politics in Alabama. The speaker will provide you good insight into the workings on Goat Hill in Montgomery. It also gives each of you the opportunity to personally meet and greet the leadership of the state. I have never been disappointed by the committee’s choice of political speakers. In the past we have had Steve Windom, Luther Strange, John Merrill, Mo Brooks, Mike Rogers, Del Marsh and many others. It is good business to promote these relationships. How do we expect our elected officials to understand our industry and the people who provide jobs and income for the state without building these bridges? I am very committed to this and think it is important to showcase our industry to our
elected representatives. The senior attorney of the Federal Trade Commission, Gideon Sinasohn, will discuss the changes in and the agency’s plans for enforcement of the new Buyers Guide. He will also discuss what the FTC looks for in false and misleading advertising. This will be Mr. Sinasohn’s third appearance at our convention and we look forward to his presentation. It is always informative and helpful. Don’t miss this opportunity for your business. We all advertise and we must use Buyers Guides – make sure you do both right. We will have the commissioner of the Revenue Department of Alabama, two assistant directors of the Revenue Department of Alabama, the director of the Motor Vehicle division and the assistant supervisor of Motor Vehicles. That group will inform us of new laws and regulations, changes in tag and title policy or process of titles, and will discuss the future proposed changes in title, tag or sales tax CONTINUED ON PAGE 12 www.alabamaiada.org
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reporting. There will also be a question and answer period. This is always a great informative discussion for both our members and the department. We are fortunate in Alabama to have such a good relationship with the department. After that session, our present plans are for a free and fun afternoon on the beach or at the pool with your favorite beverage of choice. We start out with a party and throw in a little relaxation time after an intense two days. We wrap up our convention with our grand banquet, including the award for our Alabama State Quality Dealer of the Year, which is always exciting. We will have our special membership drawing with more than $18,000 in cash prizes, as well as our vendor drawing of $500 for visiting the vendors during the convention. Of course, we’ll also install of our officers for 2017-2018. Sprinkled into the convention, we will have training on leveraging social media to your advantage, along with a review of the best and most efficient methods of Internet selling. We’ll also have sessions on inventory control, buying and selling and the trends coming for the industry, and other current issues facing today’s dealer. We will have more than 40 vendors with the latest and greatest products for your review and trial. Price negotiation is always best when someone is aggressively seeking your business, so come prepared with all the information you need to make a purchase commitment and save yourself some money while you are at the convention. The vendors attend expecting to speak to the best and brightest in the industry, and those who have purchase power to improve their businesses. Whatever you need for your business, it will most likely be there for you.
For many years, much like many of you, I did not think I had time to invest in the convention. I could not afford to leave the business – it was too small, I had no one to run the business, and a thousand more reasons. To be honest, the first time I attended a convention I went home and thought it was a waste of time. Then during the year a couple of the tips I had picked up came to me and I applied them – they worked. They made my life much easier and my profits greater. After attending a couple of more conventions I realized I had not made a commitment to make the most of my convention experience. I had gone expecting to be hit with a magic wand and have intelligence automatically enlightened within my head and money flowing into my pockets. Boy, was I naive. I found I had to participate, ask questions and make sure the concept was clear in my head about how I could use the processes to improve my business. Once I realized that, I have never left a convention without at least one idea or practice that has produced, either in sales or the bottom line, many times over the investment I made by attending the convention. I don’t think now I can afford not to go to convention, even if I had to close for a couple of days. I believe the net benefits I would receive from attending would far exceed the days I closed the business. Won’t you join us this year? It will be a great experience and you will not be disappointed if you come with an open mind and a participating heart. Please accept an open personal invitation from me. I hope to see you there! I want to meet you, so please give me the opportunity
ASSOCIATION NEWS
2017 NIADA & COX AUTOMOTIVE COMMUNITY SERVICE AWARD Nomination Deadline May 12
Nominations are now open for the 2017 NIADA & Cox Automotive Community Service Award, presented by Manheim. The deadline for submission is May 12. Reward your favorite charity with $10,000. Nominate a deserving independent dealership that works to find innovative and meaningful ways to collaborate with community partners. The winning dealership will be recognized at the 2017 NIADA Convention and will receive $10,000 for their local charity of choice, courtesy of Manheim. Dealerships must be a current member of NIADA to qualify. Nominate your dealership today at www.coxautoinc.com/communityservice-award.
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NOMINATE YOUR DEALERSHIP TODAY AT WWW.COXAUTOINC. COM/COMMUNITY-SERVICE-AWARD. www.alabamaiada.org
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ACCELERATE
BY GWC WARRANTY
TIPS FOR A SUBPRIME SLAM DUNK Ensure Your Subprime Business Doesn’t Fluctuate
As the pendulum swings with subprime lending, it becomes increasingly difficult for dealers to give their subprime customers the best deal possible. But regardless of which way the subprime breezes are blowing, there are certain steps used car dealers can take to ensure their own subprime business doesn’t fluctuate with the annual ebbs and flows of the subprime market. The Right Inventory It starts with selection of inventory and moves on to the inventory you present to each individual customer. Head to auction with the subprime customer in mind. Do some research with your lenders beforehand to see which vehicles they’ve had subprime success with and target a few of those each time you’re acquiring inventory. Once they’re on your lot, present them to customers who pre-screen with subprime credit. Once you engage with the customer, try something along these lines: “Thanks for reaching out, Mr. Smith. I have three great vehicles here that match what you’re looking for and they’re vehicles I know we can get financed for you.”
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The Right Lenders Part of being able to select, present and finance the right vehicle for a subprime customer is having strong lender partnerships. Seek out lenders who know the subprime space well and operate in it frequently. Many can be local providers, so finding lenders who know your area well will help, too. Lenders that meet these criteria will be more consistent with their decisions and help you get more subprime deals approved on a regular basis. The Right Protection A common struggle on a subprime deal can be adding a vehicle service contract on the back end with a limited subprime advance. This is an obstacle you can certainly overcome – especially if you’ve worked on the first two points we’ve discussed. It’s a simpler solution than you might think, too. Just ask. And you might have to ask more than once, but good subprime lenders will understand the value of a service contract on a vehicle. Remind them of that if you need to. A service contract will keep a car on the road, protect a customer’s monthly budget and, in turn, lower the likelihood of a default. As you look at ways to breathe some life into your subprime business, remember three keys to successful subprime sales: the right inventory, the right lenders and the right protection.
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MARKET WATCH BY USED CAR NEWS
AUTOTRADER NAMES TOP TECH
Trending Auto Technology
With new automotive technology constantly emerging and 2017 model-year vehicles now flooding dealer lots, the editors at Autotrader recently named their MustHave Automotive Technology for 2017. Automakers like Mercedes-Benz, Tesla and Volvo are rolling out self-driving systems that can put many autonomous features together in one advanced package, appealing to even the most die-hard auto enthusiasts, especially when it comes to the more boring parts of driving like commutes or long highway trips. While Tesla’s Autopilot may currently be among the most advanced (and better-known) of these systems, several other automakers offer an impressive look at the future, including Volvo’s Pilot Assist system. Formerly only seen on ultra-high-end sports cars, adaptive suspension is making its way into other models, allowing you to custom tailor your car’s suspension based on the experience you want to have, with modes like “comfort” and “sport.” For drivers who
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often find themselves critiquing a car’s ride, or for those who spend a lot of time on rough roads or driving tight corners, the ability to change your driving experience with the push of a button can be well worth the cost. Many new vehicles now offer a suite of autonomous safety tech, including lane keep assist, automatic forward collision braking and adaptive cruise control - and the great news is that these systems are getting more affordable and are no longer only reserved for pricey luxury cars. Affordable new compact models like Honda Civic, Hyundai Elantra and Mazda Mazda3 all feature impressive autonomous safety tech features. Say goodbye to the little sticker on the corner of your windshield that reminds you of your next oil change - now many cars deliver this information and more in a handy app, making it easier to keep track of everything. Some automakers like Hyundai even have the Hyundai Assurance Car Care App, which not only tells you when your vehicle needs its next service, but it can even schedule it for you. Gesture control is the wave of the automotive future. It allows you to control various features of your vehicle using gestures instead of pressing a button, touching a screen or using voice commands. Currently BMW is the only automaker to offer this feature (and only on its high-end 7 Series), but expect this to reach more
vehicles in the coming years. Huge screens seem to be replacing many gauges and buttons in the cockpit of new cars, operating similarly to a smartphone with ultra-sensitive touch and the ability for details to be reconfigured. While some may worry about the future reliability of such screens in lieu of simple buttons, experts praise the more clean presentation and easier-to-use infotainment systems versus former complex controls or tiny buttons. Electric drivetrain technology is now becoming more widespread and delivers not only the obvious fuel-economy benefit, but also performance benefits. Modern exotic sports cars like the Acura NSX, BMW i8, Porsche 918 Spyder and LaFerrari all feature electric drivetrains. For everyday drivers, features ranging from fully electric to plugin gas/electric hybrids mean several options for the driving masses.
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DEALER PERSPECTIVE BY JAY SAUL
WHERE IS MY CUSTOMER? A Lesson from Mona Lisa
In 1911, the Louvre Museum fell victim to a great art heist. The Mona Lisa was stolen. It remained missing for two years. In the time it was missing more people went to stare at the blank space than had gone to look at the masterpiece in the 12 previous years. The story of the Mona Lisa reminded me of something a lot of us do in life. We fail to appreciate precious things in our life while we have them. When they are taken away from us, however, we become painfully aware of the blank space in our lives. Take a minute and look around. Life is full of Mona Lisas, countless blessings that grace us daily. Sometimes we are too oblivious to notice, but they are there anyway. In the past 12 months I have had three friends, including the best man from my wedding, pass away. When each one of these men passed away I looked back and thought of all the times I could have brought more to the friendship but I was too busy to notice. Anne Frank was truly right when she said, “Dead people receive more flowers than the living because regret is stronger than gratitude.” For a few months I could not shake this
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story of the Mona Lisa. Sometimes when you are hard headed like me it takes a while for things to sink in. The year 2016 for us started out like most years in Buy Here-Pay Here. The first quarter was great, the second quarter was real good, and the third quarter was good also. About this time I was thinking this could be a fantastic year and then came October and we hit a wall. Whichever way we turned we were blowing out deals. Nothing seemed to go right. Finally we reached October 31 and somehow showed a profit. We were looking forward to November. Well, November was as tough as the previous month but again we did turn a profit. December turned out to be, well, December. We got through 2016, and even with a tough last quarter we turned out pretty good. I was so looking forward to tax season. Well, then the IRS said they are delaying all the returns until the end of February. The month of January was OK, nothing special. As of this writing we are still looking for the rush. When times get slow in business, sometimes I rehash deals in my mind we did not put together and think how I could have handled it better. What could I have done to make it come together? Finally, after three months with my lightning fast mind, it came to me – maybe customers are also like the Mona Lisas in our life. We never really
appreciate them until they are not around. The last few months have taught me about valuing customers more than I have in the past. More than that, the story of the Mona Lisa has taught me to value people in my life – family, friends, and those who need a helping hand. In the movie Schindler’s List the main character, Oskar Schindler, a very wealthy factory owner, has an awakening moment and starts buying people back from the Nazis. He uses up all his money to redeem Jewish men, women, and children from the death camps. Without a doubt it’s the hardest movie I have ever watched. In the last scene of the movie, when the war was over, he had saved thousands of people. He was leaving one of his factories to go into hiding. Outside, all the people he had saved were there to say goodbye. He looks at his car, starts crying and says, “My car, I could have sold my car and saved 10 more people. My watch, I could have sold my watch and saved more people.” Here is a man who gave up all he had to save his fellow human beings and yet wanted to give more. When I think of what he did it makes me ashamed of how I have treated people in my path of life. Let me ask you a question today: Who are the Mona Lisas in your life? As always, thanks for reading, Jay Saul jay@e-zautocredit.com
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MANAGEMENT MATTERS BY SCOTT BATES, CPA
SMART DEBT MANAGEMENT Support Cash Flow and Valuation
There are two common scenarios that lead to auto dealership cash flow problems. Some dealers focus too much on buying vehicles, tying up their cash in inventory and experiencing a lag between car sales and collections. For the more frugal dealerships that try to balance inventory investment with receivables, it is difficult to sustain cash flow due to the nature of car financing. Until they reach a certain size, dealers don’t collect enough in receivables alone to support regular investment in inventory, coverage of overhead or anything else. Even if their balance sheet is healthy, dealers on the shy side of $1 million in receivables will likely get a less favorable interest rate on credit than more established or larger dealers. That does not mean smaller dealers should accept rates of 10 to 15 percent. They do, however, need to understand how a bank or private equity firm will consider things like the health of their loan portfolio, location, traffic and collections to justify their terms. Dealers might be required to provide reviewed or audited financial statements. Because of that additional expense – and to get more favorable terms – dealers should actively seek lower interest rates. It is perfectly acceptable to shop around. Contact competing banks as well as your existing lender and ask about new credit options. Talk to colleagues about the banks they are using. Request multiple offers. Strong accounting, tax and compliance practices help with that process. On the accounting side, owners need regular financial statement preparation to view trends and forecast cash flow – helping them prepare for lending conversations and extensions of credit at the right time each year. On the tax side, the number one tax planning technique for Buy Here-Pay Here dealers is the discount on the sale of notes from the dealership to the RFC, which requires cash. Dealers can also qualify for opportunities such as bonus depreciation and deductions with regard to employee perks and compensation. Management might also consider a review of operational efficiencies or gaps in controls that can affect cash flow. Keep in mind every dealership is different when it comes to managing cash flow, so best practices must occur within your own dealership. As BHPH dealerships grow to portfolios of $4 million and above, more favorable financing opens up. But it’s not a guaranteed scenario. Dealers should weigh the benefits of obtaining more financing against the extra administrative costs of public accounting
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services. Once you have the credit you need, there are various ways to reinvest in your business. Some dealers might decide to purchase their location – adding real estate holdings that support the extension of credit in the future. If the dealership has a service department, cash flow can be set aside to cover repairs and maintenance on recently sold cars. Some dealers choose to cover repairs on cars shortly after purchase to support a customer’s ability and willingness to keep making monthly payments. For example, a repair might cost $800, but it leads to another six to 12 months of customer payments. At certain points in the life of a dealership, you will still experience challenges. Some of those challenges can’t be handled alone. Whether you’re with a big bank and have secured a favorable interest rate or your dealership is still considered high risk for lenders, don’t ignore cash flow problems. Your CPA can help you formulate a plan to show numbers and communicate effectively with lenders in a way that is focused on solutions rather than the immediate problem. Lenders don’t like to call a loan for a shortterm issue, and there is usually room for negotiation on loan modifications that will support cash flow as well as repayment. However, year-over-year problems make lenders less willing to keep taking a risk on default. As soon as an issue comes to light, prepare your strategy to keep a strong lender relationship. Work through it like you and your lender are on the same side. It’s in the best interests of you and the lender to find a solution. DEBT MANAGEMENT ALSO SUPPORTS VALUATION It is in the best interests of the dealership long-term to show a consistent history of loan financing, healthy cash flow and debt management. Owners want to show a return on investment and consistent profitability tied to valuation of the business. There are different approaches to valuation. A key component, however, is determining equity value, which is the market value of the dealership assets minus the market value of its liabilities. Assets include such things as the dealership’s auto inventory and fixed assets, including real estate. They can include intangible assets such as the goodwill value of the dealership’s name and location and sales and service agreements, and also synergies such as multiple locations and strong management. Liabilities include debt, excess compensation, tax and rent issues, inventories and contingent liabilities such as environmental issues related to the storage and disposal of fuel, oil or batteries. The bottom line is that a well-performing
portfolio, a good location and healthy foot traffic – combined with properly managed debt – will be attractive to a potential buyer. A dealership that is attractive to lenders is also attractive to buyers or outside investors, even with debt factored in. If your dealership struggles with cash flow either intermittently or throughout the year, don’t let it hinder your opportunities to grow. Use your debt more effectively to fill the gaps between inventory and collections. Scott Bates, CPA, is an assurance and business services partner at Cornwell Jackson, PLLC and supports the firm’s auto dealership practice group. Contact him at (972) 2028000 or scott.bates@cornwelljackson.com.
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DEALER SPOTLIGHT
BILL KENNEDY
One of the Oldest Dealers in Alabama
To determine the way to a successful career in the pre-owned automobile industry, as well as success in life, one only has to spend some time with Mr. Bill Kennedy, one of the oldest car dealers in Alabama. At the young age of 92, Mr. Bill has earned the respect and admiration of his many associates, fellow car dealers and friends. He can be found every day at his dealership on Hwy. 431 in Boaz, still buying and selling cars as he has done most of his life. Born in Waterloo, Alabama, in 1924, Mr. Bill grew up on a farm where he and his family grew cotton, corn, and sorghum cane as most Alabamans did during that time. He worked hard and decided it was too much to attend school and work on a farm, so he ended his formal education after the sixth grade. While working at Reynolds Metal in nearby Florence, Bill purchased his first car, a 1929 Chevrolet. When the man riding with Bill to work offered to buy the car, he sold it. Bill then rode a bus to town and bought a ‘36 Chevrolet. He was 18 years old at the time. From that day forward, Bill traded cars. Without any thought of a career, Mr. Bill had started in the car business! At the age of 24, Bill and his bride Elizabeth moved to Boaz, where Mr. Bill worked at a dry cleaning store, a hardware store and as a truck driver, hauling ice for Fred Watson. One day Mr. Watson suggested they go into the car business together, which sounded good because Mr. Bill had always enjoyed the buying and selling of older cars. Plus, he now had two daughters to support and could use the money. Thus began a career that continues today. In 1962, Mr. Bill struck out on his own. “With $1,200 cash in my pocket, I caught the train in Attalla headed for Cleveland, Ohio to buy a car, as did several others, like Earl Brothers,” said Bill. “Back then, car dealers had to do business with cash because automobile dealers up north only accepted cash.” He drove a car home, sold it and went right back. After a few trips, he bought a tow bar and brought back two cars. Bill Kennedy Motors had begun. Soon, car dealers discovered a better place to buy cars, Chicago, Ill., which was 100 miles closer to home. Billy Vines, and Hot Price Motors of Jasper, discovered Mr. Bill’s trips and the cars he brought back. They even learned his schedule and would be knocking on his door the next morning when he returned from Chicago. Sometimes, he made two trips a week. He and Gene Pankey bought two car haulers to get more cars home. At that time, he didn’t have to sell cars – people wanted and needed to buy them. The building on Highway 431 really helped propel the auto industry on Sand Mountain.
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One night, on what would be his last trip to Chicago to buy cars, someone broke into his motel room and attempted to rob him. He started searching for cars in Huntsville and Birmingham to sell at his new shop. He went to auctions in Attalla, Birmingham, and Huntsville to sell his cars. His business grew. Randy Baugh, owner of Gilbert-Baugh Ford in Albertville, worked for Mr. Bill from 1987-1995. Randy said, “Bill always worked hard and was very conscientious about the product he put out. He is a man of integrity and instilled that in me during my time with him. I credit Mr. Bill for my success today in the car business. On a lighter note, I always take Mr. Bill out for lunch on his birthday. This past September when we went out, I told him that when he turns 100, he would have to start paying the bill. Mr. Bill laughed and agreed to it.” Mr. Bill never borrowed money to start in the automobile business. He made it for years on hard work and reputable business practices. He worked hard at cleaning up cars, finding suitable cars, and growing his business. He has never missed a payment on anything. His pleasant personality has made him a favorite of those who did business with him. When does he plan to retire? “When I get to the place where I’m not physically able
THE MAIN DIFFERENCE MR. BILL SEES IN THE CAR BUSINESS NOW AND WHEN HE STARTED IS THE NUMBER OF CAR DEALERS. “IT’S HARD TO MAKE IT NOW,” HE SAID. “INSTEAD OF ABOUT 200 DEALERS FROM GUNTERSVILLE TO GADSDEN, ANYONE CAN FIND A PLACE TO PURCHASE A CAR ON JUST ABOUT EVERY BLOCK.” to get to work,” Bill said. The main difference Mr. Bill sees in the car business now and when he started is the number of car dealers. “It’s hard to make it now,” he said. “Instead of about 200 dealers from Guntersville to Gadsden, anyone can find a place to purchase a car on just about every block.” Also, he said people aren’t as trustworthy as they used to be. What kind of feeling does he have about this last 62 years? “Like I’ve done a good deed, and I’m still going! It’s been a rough road, but I’ve enjoyed it.” Mr. Bill and his wife Elizabeth were married for 65 years until her passing in 2011. He has been a member of Westside Baptist Church for 44 years. He has two daughters, three grandchildren and four great grandchildren. Loving children, Mr. Bill has given continually to the St. Jude Foundation for years. What more does one need for success in the car business or in life?
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2017
&
When Christopher Columbus set out on his voyage in 1492, he didn’t have a map. And while Columbus’ journey landed him in the history books, the fact is he never did reach his intended destination. So what can we learn from this? To get where you’re going, it’s vital to know where you’re headed and what lies between you and that goal. And it helps immensely to have a map to guide you. Which brings us to our theme for 2017 NIADA Convention & Expo: Chart Your Course. Independent used vehicle dealers need maps (metaphorically speaking) to guide them through the obstacles in order to arrive at their ultimate destination – success. Our job at NIADA is to provide the maps and knowledge – through our educational content in the unmatched training of the NIADA Convention. So let’s get started and set sail toward your goals!
OVERVIEW OF CONVENTION EDUCATIONAL AREAS OF FOCUS:
ROOMS FOR ONLY $150 PER NIGHT!
RETAIL: NIADA director of dealer development and industry icon Joe Lescota is featured in multiple tracks that cover all aspects of retail operations, including sales, marketing, financing, inventory management, CPO and much more.
OPERATIONAL STANDARDS: NIADA senior vice
BUY HERE-PAY HERE: NIADA national director of 20 Groups Chuck Bonanno and the BHPH world’s best and brightest guide you through best practices in underwriting, collections and more, as well as the latest payment assurance technology.
CERTIFIED PRE-OWNED: Learn why CPO is the hottest
INDUSTRY EXCLUSIVE
president of legal and government affairs Shaun Petersen is among the legal and industry experts who will get you up to date on the ever-changing regulatory and legislative issues that affect your business, and offer strategies to stay on the good side of regulators.
item in the used vehicle industry and how you can get your share of the record-setting certified market from 2016 NIADA CPO Dealer of the Year Todd Hoagey and other top CPO dealers.
Presenting for the first time ever, 2017 Buy Here-Pay Here Industry Benchmarks, provided by NABD and powered by NIADA data.
Chuck Bonanno
Ken Shilson
KEYNOTE SPEAKER: CAPTAIN RICHARD PHILLIPS Keynote speaker sponsored by:
The inspiration for the hit movie Captain Phillips and author of A Captain’s Duty: Somali Pirates, Navy SEALS, and Dangerous Days at Sea, Captain Richard Phillips was at the center of a dangerous drama in 2009 when his merchant vessel, the MV Maersk Alabama, was seized by Somali pirates in the first hijacking of a U.S. ship in more than 200 years. Having risked his own life to protect his crew, Phillips was taken by the pirates as a hostage and held in a small lifeboat. After a five-day ordeal, he was rescued by members of the famed Navy Seal Team 6. He’ll offer his perspective on the power of leadership, teamwork, training, belief in self and an unyielding, never-give-up attitude.
Book rooms at The Mirage for only $150 per night including resort fee, in-room Internet and fitness center access!
REGISTER TO ATTEND BY APRIL 15 FOR A SPECIAL DISCOUNTED RATE OF $449 PER PERSON. A TOTAL SAVINGS OF $200!
*USE PROMO CODE: StateDealer
*DEALER ATTENDEES ONLY
www.niadaconvention.com • 800-682-3837 www.alabamaiada.org
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AIADA FORMS
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AUCTION DIRECTORY
SHIPPING CHARGES ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010
GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061
ABC BIRMINGHAM 1046 A.E. Moore Drive Moody, AL 35004 Sale every Wednesday 12:30 p.m. Inops at 12 pm Phone: (205) 640-4040
HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.
ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277
KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095
ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010
LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030
ADESA KNOXVILLE 1011 Adesa Pkwy Lenoir City, TN 37771 Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m. Phone: (865) 988-8000
LOUISIANA’S 1ST CHOICE AUTO AUCTION 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 8:30 a.m. Phone: (985) 345-3302
ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300
MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000
ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709
MANHEIM NASHVILLE 8400 Eastgate Blvd. Mt. Juliet, TN 37122 Ford Factory Sale every other Monday 11 a.m. Open Sale every Wednesday 9 a.m. GM Factory Sale every other Thursday 10 a.m. Nissan Factory Sale once per month Friday 9 a.m. Phone: (615) 773-3800
ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211
MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550
AUTO AUCTION OF MONTGOMERY 6142 Troy Highway Pike Road, AL 36064 Sale: every Thursday 10:00 a.m. Phone: (334) 288-3399
MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652
BAMA AUTO AUCTION 4103 Gault Avenue South Ft. Payne, AL 35967 Sale: every Thursday 6:00 p.m. Phone: (256) 304-0947
MIDFIELD CAR AUCTION 1468 Hartman Industrial Blvd. Midfield, AL 35228 Sale every Wednesday and Saturday-6:30 p.m. Phone: 205-923-6535
BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030
PENSACOLA AUTO AUCTION 401 West Burgess Rd. Pensacola, FL 32503 Sale every Thursday 9:30 a.m. Phone: (850) 477-3063
CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Monday 6 p.m. Phone: (205) 856-6527
SHOALS NORTH ALABAMA AUTO AUCTION 651 Fairground Road Muscle Shoals, AL (256) 381-2745 Sale every Tuesday night @ 6:30 p.m.
CHATTANOOGA AUTO AUCTION Chattanooga Auto Auction, Public Sale every Tuesday @ 6:30 PM, Dealer Sale Thursday @ 10:00 AM and IN-OP sale begins 9:00 on Thursdays
SOUTH ALABAMA AUTO AUCTION LLC 27472 Wilcox Road Robertsdale, Al 251-964-7012 Sale Days – Tuesday & Thursday 6:30 p.m. Sat. Auction @ 11 a.m.
DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201 DEANCO AUTO AUCTION 3664 South Oates St. Dothan, AL 36301 Sale every Wednesday 10 a.m. Phone: (334) 792-1116 GEORGIA-CAROLINA AUTO AUCTION 884 E. Ridgeway Rd. Commerce, GA 30529 Sale every Wednesday 3 p.m. & Friday 6 p.m. Phone: (706) 335-5300
YOUR AUCTION 3010 Scherer Dr. N St. Petersburg, FL 33716 Sale every other Tuesday 11 a.m. – Birmingham The Jim Burke Automotive Group Phone: (800) 675-4444
GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555
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SOCIAL MEDIA BY KATHI KRUSE
REASONS YOUR FACEBOOK PAGE IS FAILING Make It Work For You, Not Against You
Not all Facebook pages are created equal. It’s hard to ignore the opportunities available with Facebook to engage would-be customers, but building a highconverting Facebook page has been elusive for many dealers. It’s important to know the elements of a successful Facebook page and it’s even more crucial now to recognize the reasons your Facebook page is failing. Engaging customers on Facebook is challenging because it requires publishing the type of content they want to engage with. This means employing a content strategy that works for your store both culturally and operationally. In addition, Facebook ads promote your content, increase clicks to your website and, ultimately, turn fans into customers. Is achieving consistent engagement on Facebook a struggle for your store? Here’s a list of reasons why your Facebook page is failing with tips to make it work for you rather than against you. You Don’t Publish Regularly Consistency is a cornerstone of Facebook (or any other) marketing. Users need to see your posts in their newsfeeds for you to stay relevant. It’s a battle right now for attention, and inconsistency will kill you. Posting a few times per week or per month is not going to capture anyone’s attention. Post two to three times per day during the week and one to two times per day on the weekend. Your Page Lacks the Human Touch Facebook pages fail because posts focus on products instead of people. There’s a complete disconnect from the human side on most dealership Facebook pages. Content that demonstrates why people choose you seems to be nonexistent. If you approach Facebook with the sole mindset of “making money” you will end up wasting your time. Facebook is first and foremost a social network, not a business network. You’re Not Using the Three-Geared Content Approach Facebook is a powerful tool for engaging customers. The challenge lies in producing high quality, original content on a consistent basis. Use our three-geared approach to increase engagement: • Entertain. Most people who engage with your page are not immediately inmarket. The inability to engage this type of prospect is where many pages fail. • Educate. Fans who are thinking
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about a purchase appreciate answers to their questions. • Excite. Offer something worthy of their time. Exciting offers compel people to click in anticipation. Your Posts Look and Feel Counterfeit Every dealership has a personality – characteristics, features, and traits – that makes it unique. Customers prefer dealers who communicate exactly who they are and the impact they want to have in their customers’ lives. Publishing benign content that can be found anywhere is the shortest distance to the bottom. This happens when dealers hire outside providers (and sometimes shady vendors) to “do social media” for them. The provider’s lack of personality comes through and it’s obvious someone other than you is doing the work. It’s not a good look for those who want to engage real people. Real people are behind your brand so let that shine through in your content. You’re Not Targeting In-Market Customers Facebook Ads’ deep data allows dealers to laser-target customers who are in-market. Building target audience profiles improves your Facebook marketing tenfold. • Determining the “buyer personas” of your core audience improves the way you solve problems for your customers. • Establishing customer pain points helps create content that’s useful to your prospects (and builds authority with search engines). • Useful, high quality content increases engagement and builds your social presence. • Website content (i.e. blog posts) published on Facebook and clicked through to your site increases search ranking. You Don’t Regularly Conduct a Facebook Page Audit Whether your social media marketing is in-house or outsourced, it’s difficult to know where the gaps are between your current successes and where you need to be. There are many ways to benefit from a social media audit. Given today’s accelerated rate of Facebook failures, a social media audit will help you engage more customers and achieve goals faster. You’re Ignoring Comments and Messages Facebook is a communication channel just like email and phone. Customer service via social media is a game changer, but if you don’t have a process to monitor, listen and respond to messages, you’re dead in the water. • 71 percent of consumers who experience positive social customer care are likely to recommend the brand to others, compared with just 19 percent of customers who do not get a response. • Today’s tech-savvy consumers want their online questions to be addressed
promptly – 42 percent expect a response within one hour. • 83 percent of respondents in a recent survey said they liked – or even loved – when a company responded to them on social. You Lack Clear Goals Highly-engaging Facebook pages start with clear, well-defined goals. At Kruse Control, we begin with an outline of four goals and then build out the specific strategies that help each client achieve them: 1. Attract. 2. Engage. 3. Convert. 4. Retain. You’re Not Leveraging the Power of Facebook Ads Facebook has become one of the most powerful platforms to engage customers and build business. Facebook pages fail because they either aren’t using Facebook Ads correctly or they’re not using Facebook Ads at all. No Facebook page will work without Facebook Ads. Why? Because you must pay Facebook to reach your target audience and deliver the right content to the right customer at the right time. No pay, no play. You’re Not Measuring and Analyzing Your Results Dealerships that don’t review their Facebook results are doomed to repeat their mistakes over and over again. Facebook Insights is your best friend. It provides all the metrics you need to judge how your page is doing. You can see which content got the most organic and paid interaction, what you did right, and what didn’t work so well. Analyzing results lets you deliver a better experience for fans, make better decisions on your content and determine if you’ve reached your goals. Next Steps... If you’re not getting the results you want, review your page using these tips. If your page doesn’t size up and you need help to improve, reach out to me (www. krusecontrolinc.com). We’ll work together to create social media strategies that work! Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.
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