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WELCOME NEW MEMBERS
04.........................Become Your Best in Today’s Marketplace 08........................................................Ladies Auxiliary Update 12..................................Protect Your Customers and Yourself 14............................................ Managing Dealership Reviews 16............................................................. Ralph Smith Motors 18.....................................Seize the Leads You Wish You Had
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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
Pokey Brimer Oxford
President Elect Todd Oden Birmingham
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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.
Who Needs A Ride Auto Sales LLC Birmingham
Chad Tillery Jemison
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June/July 2017 AIADA
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ASSOCIATION NEWS BY RANDY JONES
TO BECOME YOUR BEST IN TODAY’S MARKETPLACE Executive Director’s Letter
To make it in business you must believe in yourself and understand your strengths, talents, values and goals. Knowing this will bring self-awareness, confidence, self-trust and, most importantly, the power to listen to your heart. You must put your heart in your plan. If you do not have the heart to go the extra mile and the dedication to keep up with our changing market, your chances of being the best, or even surviving, will be greatly reduced.
YOU MUST PUT YOUR HEART IN YOUR PLAN. IF YOU DO NOT HAVE THE HEART TO GO THE EXTRA MILE AND THE DEDICATION TO KEEP UP WITH OUR CHANGING MARKET, YOUR CHANCES OF BEING THE BEST, OR EVEN SURVIVING, WILL BE GREATLY REDUCED.
The way we learn is also changing. Along with books, we learn from speakers and trainers working in our day to day marketplace. They travel all over the nation and work in real time with dealers to help them learn and grow. These guys are the movers and shakers. You may hear 20 different ways to work in today’s marketplace, but some will work great for you and your business model. If your child is good at sports and he or she says, “I want to the best,” what do you tell them? Just keep doing the same thing and everything will be alright? No, you tell them they need to practice, find out what the best players are doing and learn from them. You also tell them it’s going to take dedication and sacrifice.
Dedication and sacrifice: This is where the rubber meets the road. Let’s look at your business. Is your primary customer seeing your inventory as they drive by your location, or as they are surf the Internet? What are the best vehicles to get finance with our lenders? What are the best vehicles to pull customers to your location, whether the physical lot or online? Is your Facebook page or website the best way to reach customers? How about using one of those large search engines like www. autotempest.com, www.cars.com, or www. autotrader.com? Is your website OK? Is it creating traffic? What are other successful dealers doing? These are some of the questions you need answers to. Remember what you would tell your child they will need for success. Dedication and sacrifice: This is where the rubber meets the road. You will learn the answers to these questions, along with many more, at AIADA’s 48th Annual Convention and Trade Expo. Our customers expect a lot. I know you work hard to be the best you can be, as well you should. Our customers today respect your success and want to buy from the most successful dealers. They know they are buying one of the most important purchases of their lives. They want the best dealer to help them with their needs. There is an onslaught of recalls and new regulations like the FTC Buyers Guide and the new compliance issues. Along with all this, our customers are changing. They are better educated on car buying. They expect more from us. They are counting on us to know everything about our market and get them the best possible vehicle at the lowest price. They want us to assure them the vehicle will last a long time with no problems. All this at a moment’s notice or on a phone call they want only to last a few minutes. And you are supposed to know all their needs and answer all their questions in this little interview. With this in mind, at this year’s AIADA 48th Annual Convention and Trade Expo our goal is to help you achieve success and be better prepared as we move into the future! This year’s theme is Show Me the Money. Learn the best ways to make your dealership more profitable. New Dealer or a Veteran Dealer I don’t care if you have been in business one year or 20 years, you cannot afford to miss this event! Never before have we had this lineup of speakers and teachers. All classes are included in the registration fee of $349 (Spouse $99). Even the $475 compliance workshop is included!
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CONTINUED FROM PAGE 04 Make plans now! Join us at the beautiful Perdido Beach Resort in Orange Beach, Ala. Book your reservation today for Thursday, July 20 through Sunday, July 23. AIADA’s group code is 13031. Don’t wait! Rooms are booking up quick. If you want gulf view you have to ask. Get your rooms today! Call (251) 981-9811 or go to www.perdidobeachresort.com/ alabama-independent-automobile-dealersassociation. This will be 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 your rooms early. Remind the staff at the resort you will be attending the AIADA convention and use the promo code 13031. THURSDAY, JULY 20, 2017 6:00 p.m. – 10:00 p.m. Meet and Greet Vendor-Dealer Party All our vendors will be arriving Thursday, and can set up displays after 1:00 p.m. Then get ready: We are kicking off the three-day event with two great bands, a southern rock band and a pure country band, combined with lots of heavy hors d’oeuvres, a cash bar and free nonalcoholic drinks. All this is on the white sandy beaches of the Gulf of Mexico. This is a family event. We have the popular glow in the dark beach volleyball, a bonfire with all you can eat s’mores and a guided crab hunt for the kids to build memories to last a lifetime! I think you will agree – this will be a great way for the vendors and dealers to get to know each other.
12:00 a.m. - 1:00 p.m. Lunch with Exhibitors/Vendors and Alabama Speaker of the House Mac McCutcheon 1:30-3:00 p.m. Compliance Workshop #3 We are a nonprofit organization. We exist to provide education for and help protect our member dealers. AIADA has made an arrangement with Galese & Ingram to provide a compliance workshop for the afternoon. The CFPB has stated many times that when investigating a possibly non-compliant dealer, if the dealer has made a concerted effort to train, educate themselves and try to be compliant, that history of training will be a strong deterrent for the agency to place punitive fines directed at the offending dealer. The certificate you will receive will be proof of this effort to be compliant. If you attend a similar class elsewhere, the registration fees and expense of attending will much exceed the cost of this convention. Don’t miss this opportunity to learn how to comply, protect your business and save money while accomplishing this goal. 3:10-4:30 p.m. Legal Meeting with Jeff Ingram, John Galese, and Cassandra (Sandy) Harris Kalupa
9:15-10:45 a.m. Revenue Panel Discussion We will have the Commission of the Revenue Department of Alabama, two assistant directors of the Revenue Department of Alabama, the director of Motor Vehicle and the assistant supervisor of Motor Vehicle. The commissioner will address the group and the remaining staff will appear on a discussion panel informing attendees of new laws and regulations and changes in tag and title policy or process of titles as well as discuss proposed changes in title, tag or sales tax reporting. There will also be a question and answer period if you have any tag, title and tax questions with the department. 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.
7:10 p.m. Ladies Auxiliary Program Friday night we will have great dinner and the Ladies Auxiliary Charity Auction. We will also have Pam Jones, director of Make-AWish Alabama, fulfill a wish provided by the charity through donors such as AIADA to a chosen child recipient in attendance. It’s a blessing to witness one of the events and fills your soul with love. Last year the ladies raised over $30,000 for charity in the name of AIADA, representing all of the independent automobile dealers across the state. This year, with Jeff Bynum and big Dave Roberts in the lead, we fully expect to exceed this amount. There is sports memorabilia, Vera Bradley merchandise, bags, paintings, collector items and much more. This 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. Also, we have such a good time ribbing each other we forget 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 in your heart, even if you only witness the acts of love and giving.
11:00-11:50 a.m. The senior attorney for the Federal Trade Commission, Gideon Sinasohn, will go over the new FTC’s Buyer’s Guide.
SATURDAY, JULY 21, 2017 8:00-9:00 a.m. Saturday morning will start with a power breakfast with one of the most powerful
FRIDAY, JULY 21, 2017 8:00-9:00 a.m. Opening Ceremony with a Buffet Breakfast
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elected officials in our state, attorney general Steve Marshall, speaking to the group. This will be exciting if you are interested in the direction of business and politics in Alabama. This speaker will provide you very good insight into the workings in Montgomery. It also gives you the opportunity to personally meet with the leadership of the state and have answers to your questions from the horse’s mouth. I have never been disappointed with the committee’s choice of political speakers – they have all been great. 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. 10 a.m. - 12 p.m. Dealer Panels: Learn from the Top Dealers in Alabama Learn about inventory, what works best for each type dealer, what type vehicles they stock in each season, whether they use floorplans, what type advertising works best, how they pay their employees, whether they do their own repairs, what banks work the best for them, which book they buy from – Black Book or NADA – and so on. The best thing about attending is you don’t need to know the right question to ask, you need the answers from the questions other dealers ask! I would like you to help build these dealer panels. Each of you has a few dealers that get your program – they always have the right vehicles, sell the right products and put the customer in the correct vehicle. And we all wish we had more dealers like them. Send me a list at randyjones@live.com of dealers who work well with you, who know your programs. Tell me which panel they should be on. We are looking for four or five dealers on each panel. They can be from any city in Alabama. After this session, lunch is on your own. Enjoy a fun afternoon on the beach or at the pool with your favorite beverage of choice, a little relaxation after an intense two days. Just don’t get too relaxed – join us back at 6 p.m. at the Grand Ball Room Banquet. 6 p.m. We wrap up our convention with our Grand Banquet. This will include the award for our Alabama Quality Dealer of the Year, which is always exciting. We will have our special membership drawing with over $18,000 in cash prizes and our vendor drawing of $500 for visiting the vendors during the convention. Of course, we’ll also have the installation of our officers for the 2017-2018 year. Remember what you would tell your child they will need for success? Dedication and sacrifice. These three days could change lives.
www.alabamaiada.org
ASSOCIATION NEWS
LADIES AUXILIARY UPDATE Wish Granted for Local Teen
Spring has sprung and the summer convention is right around the corner! Registration is still open for those of you who have not signed up. This will be a convention you do not want to miss! Go to our website for all the details: www.alabamaiada.org. On April 18, the ladies auxiliary granted a wish through the Make-a-Wish Foundation in Huntsville to Ian Thomson, a 19-year-old who had a kidney transplant three years ago. It was a very special day for this Huntsville teen. Four years ago, Ian Thomson was going through kidney failure due to Alport syndrome. He has since received a new kidney, and now a new car in a way.
INDUSTRY NEWS USED CAR NEWS Make-A-Wish, along with Dealers Auto Auction of Huntsville/Athens and the ladies auxiliary of the Alabama Independent Automobile Dealers Association, raised enough money to completely remodel Ian’s 2007 GMC Sierra. Among the work done was a complete new paint job, body work, LED lights on top of the cab, a new sound system, LCD touchscreen radio, chrome wheels, new tires, white camo interior, brush guard, blacked out head and tail lights, new carpet and new windshield. City Auto Garage in Hueytown also installed a new fuel pump, fan belt pulley, wheel bearings and other mechanical components to put Ian’s truck in top mechanical condition. Ian was surprised. It didn’t look like the same truck! He was overwhelmed with joy and not used to being the center of attention. Ian wanted to thank everyone who donated to the cause. Roger Fields of Dealers Auto Auction said he pooled car dealers, vendors and other individuals, and it took almost no time to raise money for Ian’s wish. Fields said, “Car dealers have some deep pockets and the biggest hearts when it comes to giving.” Randy Jones with the Alabama Independent Automobile Dealers Association agreed wholeheartedly. He said, “It is an honor and a blessing to be a part of the automotive industry. It is people like Roger Fields and David Andrews (owner of DAA) who not only have a passion of giving back to the community, but do it time after time.” The ladies auxiliary is composed of automotive dealers’ spouses. They give of their time year-round to help raise money for many different charities across the state. We would like to give a special thanks to Ashley Miller and Pam Jones with MakeA-Wish of Alabama – for letting us be part of their wishes – as well as Roger Fields, David Andrews and DAA’s family. Thanks to Barnett Collision of Hueytown for all the body and paint work they did on Ian’s truck, the Trim Shop of Hoover for donating the camo seat covers and more, City Auto Garage of Hueytown for donating the labor to put Ian’s vehicle back in top notch condition, and all the dealers and vendors associated with the automotive industry in Alabama. Because of your giving, you help make so many wishes like Ian’s come true for the children of Alabama’s Make-A-Wish. A huge thank you to Roger Fields with Dealers Auto Auction in Huntsville for hosting this special event! Come join us Friday, July 21, at Perdido Beach Resort in Orange Beach, Alabama. During our 48th AIADA Annual Convention and Trade Expo, we will again grant a wish for an Alabama Make-A-Wish child. Hope to see you all in July at the convention! Sincerely, Gina Oden Ladies Auxiliary President
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AUTOTRADER RAISES MONEY FOR NASCAR CHARITY
$23,500 Raised Through Challenge
Autotrader’s recent head-to-head charity challenge #Speed4Need, in collaboration with Team Penske Monster Energy NASCAR Cup Series drivers Joey Logano and Brad Keselowski, raised a total of $23,500 benefiting the drivers’ non-profit foundations, the Joey Logano Foundation and Brad Keselowski’s Checkered Flag Foundation.
USING FACEBOOK AS THE SOLE PLATFORM FOR THIS SUPERCHARGED PROGRAM, THE DRIVERS UTILIZED THEIR PERSONAL PAGES, AS WELL AS TEAM PENSKE AND EACH OF THE FOUNDATION’S PAGES, TO INCREASE DONATIONS FROM FANS AND WORD-OF-MOUTH ABOUT THEIR RESPECTIVE CAUSES.
Launched at the beginning of the NASCAR season in early March, the #Speed4Need campaign featured Autotrader-sponsored drivers Joey Logano and Brad Keselowski competing against each other in a series of head-to-head speed challenges on Facebook to raise both awareness and money for their respective foundations. The campaign concluded on April 16, and after tallying the final donations, Logano won the friendly competition with $12,500 for his foundation, while Keselowski raised a formidable $11,000 for his foundation. Using Facebook as the sole platform for this supercharged program, the drivers utilized their personal pages, as well as Team Penske and each of the foundation’s pages, to increase donations from fans and wordof-mouth about their respective causes. Logano and Keselowski added to their overall fundraising tally by winning a series of challenge rounds as part of the campaign, and Autotrader contributed $500 to the winner of each challenge round.
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PRODUCTS AND SERVICES
PROTECTIVE ASSET PROTECTION LAUNCHES PROGRAM New Higher Mileage Service Contract Program
Protective Asset Protection has launched its new Protective Auto Care Plan program. This new service contract program is focused on providing a service contract solution that meets the needs of higher mileage vehicles. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. Additionally, the program provides terms to support late model vehicles and “wrap” plans to add coverage to existing warranties. The Auto Care Plan includes other benefits such as rental car
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reimbursement and emergency roadside service. “We worked closely with dealers and independent agents, in addition to conducting research to develop a plan tailored to the needs of higher mileage vehicles. The Protective Auto Care Plan is the result of these efforts and we feel this is the service contract program that will meet the needs of the industry today and into the future,” said Protective Asset Protection vice president for independent auto sales Mark Edmundson. The new Protective Auto Care Plan provides dealerships with an opportunity to provide greater peace of mind for car buyers, while point-of-purchase and digital materials are available to help inform customers of the program’s value. Protective Asset Protection senior vice president for distribution Rick Kurtz said, “With the average age of vehicles on the road remaining high and the projected growth of pre-owned inventories, we see this program serving an important role in dealerships’ F&I offering.” About Protective Asset Protection Protective Asset Protection provides vehicle protection plans, GAP, credit insurance, training and other F&I services
through vehicle dealerships. Protective Asset Protection has been serving dealers for 55 years and currently provides products and services to automobile, marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation. For more information about Protective Asset Protection call 800-323-5771 or visit www.protectiveassetprotection.com.
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June/July 2017 AIADA
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LEGAL MATTERS
BY JEFF INGRAM, GALESE & INGRAM, P.C.
PROTECT YOUR CUSTOMERS AND YOURSELF Take Reasonable Steps
What is the most basic thing you can do to protect your business? I have always thought it was not giving your customers a reason to be upset with you, but that is not always easy. They may have unreasonable expectations of the vehicle you sold them. Despite your best efforts, you may have failed to spot a legitimate problem in a vehicle you sold. As with society in general, they may be offended by some comment from you or your employees you considered to be totally innocent. It is often hard to place yourself in your customer’s position and see how they view the issue. However, there is at least one issue that should not be difficult for you. Each person who owns a motor vehicle dealership is not just a business owner. He or she is also a consumer. Each owner probably has multiple bank accounts, credit card accounts and loans in their personal name as well as their business name. What do you expect from those companies? At a minimum, I bet you expect them to take steps to protect the information you provide them. What does this mean? You provide to your bank some of your most personal information. Your bank knows your name and social security number. It has records showing how much you earn, the sources of your income, who you pay and how much you pay them. What would your reaction be if you learned every employee of your bank had the ability to review all of that information? Would you be happy if your neighbor could just look at your information on the bank’s computer at any time? What if your paper files were left in files open to every employee of the bank? Would you be happy? I doubt it. If you would not be happy in these situations, do you think your customers would have a right to be upset to learn you did not take reasonable steps to protect their financial information? As with your bank, you have your customers’ names, social security numbers, employment and salary information. You may also have other sensitive information from those customers. Do your customers have a right to expect you to take reasonable steps to protect that information from disclosure? The answer seems obvious. It does not take a great deal of imagination to see the potential harm to your customers. Maybe, unknown to you, you have an employee undergoing financial or drug problems. They need money. They know someone who, with a name and social security number, will
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open credit card accounts they can then use to “buy” thousands of dollars’ worth of merchandise in your customer’s name. You could suddenly be faced with claims from a customer or, even worse, scores of customers who have sustained real damage because you did not protect their information. What do you do? Look at your operation. Determine what personal information you obtain from customers. If you are not required to keep that information and do not need it, dispose of it in a safe manner. If you have to keep the information, maintain it in a safe manner. Require every employee who has access to your computers to have a password and login that only they use. Give them access only to the information they need. Keep written records in locked filing cabinets and/or in locked filing rooms. Do not allow these documents to be out on employee desks open to the general public. You may not be able to stop everyone. Some crooks can and will defeat whatever steps you take if they have sufficient time and determination. If you do not believe this, just read about the information WikiLeaks has published that it obtained from the most secure sources in the world. You can, however, take reasonable steps to protect your customers. You depend on those customers to make a living. Don’t you owe them something in return?
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MANAGEMENT MATTERS BY NEXTGEAR CAPITAL
MANAGING DEALERSHIP REVIEWS
Best Practices for Your Customer’s Digital Experience
Encouraging a car buyer to shop at a particular dealership is no longer just a matter of simply being the closest dealership. For today’s customer, the car buying experience begins online. According to a study from Autotrader and Kelley Blue Book, car buyers spent 60 percent of their time online in the vehicle purchasing process. The time to influence where a customer shops begins with a dealership’s digital presence, and when a customer is deciding on a dealership to visit they are bound to run across a number of dealership reviews. Feedback should always be appreciated, and review sites make earning dealership feedback easier than ever. In an industry where the digital experience can make or break a potential customer’s decision to purchase at a location, it’s important to monitor and respond to dealership reviews. Take the below best practices into
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consideration to ensure your dealership’s reviews encourage, and don’t discourage, potential customers from visiting your lot. Monitor reviews. Take note of the review sites where your dealership has earned reviews. What are customers saying about the dealership? Are there any issues mentioned in the dealership reviews that can be addressed? Every dealer and dealership will have to decide how frequently they monitor and respond to reviews. Find a cadence that works best for the team member in charge of monitoring and responding to reviews. Comment on reviews, both good and bad. Every customer leaves a dealership either satisfied or dissatisfied with their experience. For the customers that leave positive dealership reviews, make sure to thank them for their feedback. They took the time to share their positive purchasing experience with the rest of the digital world. While it might be tempting to just ignore negative dealership reviews or tell the reviewer why their opinion is misguided, it will better serve the dealership if the response asks to reconcile the negative experience with the reviewer. Encourage feedback. Feedback can give dealers an idea of what they need to do to improve service for their customers. Be willing to ask customers if
they would like to contribute a dealership review after their purchase. Their feedback can lead to valuable insights on ways to improve the dealership experience. Dealerships that ask for and implement feedback are more likely to be in tune with the wants and needs of their customers. Though dealership reviews have the potential to influence a potential customer’s visit, when managed correctly, those reviews can bring out the best qualities of a dealership, provide insight on dealership processes that could be improved and encourage customers to visit and purchase.
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DEALER SPOTLIGHT
RALPH SMITH MOTORS CELEBRATES 75TH ANNIVERSARY Three Smiths, One Dream
In 1941, Ralph O. Smith was selling cars at McGough Chevrolet in Montgomery, Alabama. If circumstances had not dictated otherwise, he might have stayed there forever. But history had other plans. On December 7, 1941, the Japanese bombed Pearl Harbor, and America was war-bound. WWII would change everything. All our national resources were directed toward one thing – victory. On February 22, 1942, manufacturing of new automobiles ceased. Every factory was converted to support the war effort. Airplanes, jeeps, tanks and munitions were now rolling off the lines. Automotive production wouldn’t return to America until 1945. So, what does a new car salesman do when there are no new cars? Ralph Smith decided to start his own business. He purchased a lot on the corner of Molton and Church Street in downtown Montgomery, and Ralph Smith Motors was born. From the very beginning Mr. Smith ran his dealership his way. He was not moved by the customs of the time. He was motivated by a desire to succeed, and to treat everyone who did business with him as a valued asset. This was 1942 in the heart of Alabama. It is difficult for us to understand just how separated the races really were. But Smith never hung the “Whites Only” sign. On the contrary, he welcomed all, and treated all with respect. If you hang out at the dealership today, you are bound to see an elderly black customer come in who remembers. They have probably bought several cars over the years from Smith. Their uncles, aunts, and parents also bought cars here. It was known that everyone, regardless of race, would be treated fairly by Mr. Smith. For that reason, he earned the respect and loyalty of the entire community of Montgomery. Ralph Smith Motors did not only sell used cars. As soon as the factories fired back up in 1945, Ralph O. was in the new car business. This was before dealer agreements and protected areas. New car manufacturers would sell their vehicles by mail order, in department stores, or through local, independent dealers. Mr. Smith would send trucks to Detroit monthly. Ralph O. Smith piloted the ship for nearly 50 years before handing over the helm to his son, Ralph Joseph Smith, in 1991. To avoid confusion with his dad, the second Smith preferred to be called Joe. He was 10 years old when his father started Ralph Smith Motors, so he grew up learning the business and how his father treated his customers. These lessons
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stayed with him throughout his life. From an early age, Joe demonstrated an adventurous spirit and desire to get all he could out of life. Whether it was tricking his mother into signing a permission slip for him to take flying lessons at 16 or racing motorcycles throughout the southeast, Joe never did anything halfway. Even though Joe was a man’s man – competitive to the core and larger than life – the lessons of his father stayed with him. He treated everyone with respect and truly cared for his customers, his employees, and, most of all, his family. During the Korean War our nation reinstated the draft. As a licensed private pilot, Joe was drawn to the Air Force. Recently married to Martha, Joe served four years in the service. Upon his discharge, Joe returned to the family business. Around this time his father decided to enter the junk/salvage business. He opened a salvage lot on N. Ripley Street in Montgomery and put Joe in charge. Here, with his long hair and love for motorcycles, Joe got the nickname “The Hippie on North Ripley” or “The North Ripley Hippy.” This nickname would stick with him the rest of his life. Joe decided to leave the family business in the early 60s. He went to work at Cob Kirkland Pontiac and had a very successful sales career there for over 20 years. In 1988, when his father started having some health issues, Joe returned to take the lead in the family business. He would stay at it for another 20 years. Things changed a lot under his control, but Joe was true to the course, adjusting and adapting to changing times and technologies, with a little pushing from Joe, Jr. Through it all, Joe never lost his compassion for people, or his passion for life. Martha, Joe’s wife of nearly 70 years, recalls he would ride his motorcycle every Sunday, when traffic was lighter, up until the last year of his life. And don’t think this was an old man motorcycle. He rode a rice rocket sport bike, and he let it scream. By the way, it is impossible to quantify the contributions made by Martha Smith. She is still in the dealership every day taking care of deposits and mail. She has a stronger work ethic and dedication to Ralph Smith Motors than anyone you will meet. Ralph Joseph Smith, Sr. passed the day to day operations over to Ralph Joseph Smith, Jr. in 2008. Joe Smith, Jr. – also known as Little Joe, Hollywood, or R Joseph by Senior when agitated – started working in the family business at 15. Working in the salvage yard, Joe, Jr. pulled parts off junk cars. He was on the lot every day after school and every weekend. Little Joe worked the salvage yard until he was 18, when he moved over to selling cars. At the time there were some seasoned salesmen who did not take kindly to the boss’s kid coming in and taking a slice of the pie. They tripped him up every chance they got. About that time, Joe, Jr. found his niche – collections. For those of you unfamiliar with
the Buy Here-Pay Here world, collections is as important, if not more important, than selling. Poor collections practices have closed more BHPH dealerships than anything else. It was Joe, Jr.’s ability to get the money that finally earned him the respect of his fellow salesmen, his father, and his grandfather. Joe, Jr. left the family business at 26 to follow another passion. He became a certified addictions counselor and went to work at Humana helping recovering addicts. This is something he is still very involved in, and very passionate about. He returned to Ralph Smith Motors in 1991 to “continue the path that was created for me long before I was born,” he said. As the younger Smith, Hollywood was focused on the future. He saw the changing technologies and was instrumental in bringing Ralph Smith Motors into the digital age, including the advent of credit card processing, creating an online presence and developing the marketing. It was this future vision that gave him the desire to eliminate the salvage business. Even though the math indicated it was not possible to survive without it, he knew it had to be done. This turned out to be a stroke of genius. With the salvage business gone, and all scrap sold, Joe, Jr. could focus on inventory and building accounts receivable. The math that said, “No,” turned to, “Heck, yeah!” One of Little Joe’s proudest moments was when his father, who had been against closing the salvage business, told him he had done the right thing. It was then he knew this was his business, and sink or swim it was on him. After Joe, Sr. passed, Joe, Jr. was on his own. While he understood the business, and was moving forward, he knew enough to know there were things he did not know. A chance meeting with an old friend of his grandfather’s really put everything into focus. Jimmy Johnson ran a local finance company in Montgomery. He and Ralph were good friends and had come up together in the 40s. If anyone had any insight into the “whys” behind the “whats,” it was him. The long haired, tattooed young buck and the elderly retired banker became fast friends. Mr. Johnson would sit for hours talking about account management, numbers to watch, why things were set up the way they were and how to control all of it. It was a tremendous learning experience. In learning these business lessons, Joe, Jr. learned the bigger lesson, the lesson his grandfather had passed on to his father at an early age. The lesson his father had passed on to him. The lesson he knew, but didn’t know he knew. This young buck did not see this elderly man as most young guys see old men. He saw the value in him, as he does in everyone. He approached him with respect and humility. In doing so, he gained much needed knowledge, and reinforced those inbred principles. All three Smiths were fiercely independent, strong willed, competitive and lovers of life and family. All three had their own ideas but the same goals. And all three treated everyone with respect, regardless of age, race, social
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status or life circumstance. This is the real secret of Ralph Smith Motors’ success. While three colorful men have taken turns running the company, it is the thousands of customers that have kept the doors open. They are the unsung heroes. It is easy in the Buy Here-Pay Here world to lose sight of the big picture. You are primarily dealing with people on the lower side of the social economic scale. You are going to have a higher level of repossessions, spend more time doing collections, and deal with a lot more drama than the larger franchise, conventional financing dealerships. Many dealers have become jaded by this business. Many have lost sight of the most valuable element – the customer. And many have lost their businesses because they began to look down on their customers and treat them as second class citizens. This has never been the case at Ralph Smith Motors. Not one of the three Smiths would tolerate that. If you work for a Smith, you know who the boss is. It is that customer in front of you, and you better treat them right. There are many examples of this. Customers who had been repossessed have come in with their heads hung in shame only to be greeted with huge smiles and appreciation for coming back. They heard, “Things happen. We are still friends. What can we do for you today?” It is this attitude of respect, approaching all with humility and seeing value in everyone, that has kept the doors open for 75 years. It is this approach that has kept customers, their children, and their grandchildren coming back again and again. And it is this attitude that will keep Ralph Smith Motors going for the next 75 years. Editor’s Note: To be completely honest, the first time I saw Joe, I didn’t know what to expect. But what I didn’t expect was to meet someone his age to be so knowledgeable of the independent automobile business. The more we talked, the more impressed I became. Joe, Jr. is very humble. In this article, he didn’t tell you about all the things they do for their customers and the community. Nor did he tell you about his love and compassion for his customers, his fellow employees and his business. Joe is blessed to have his family business. Montgomery is blessed to have Ralph Smith Motors. We are all blessed to have members like Joe “Hollywood” Smith. If you are ever in Montgomery, Alabama, go by and see my friend Joe “Hollywood” Smith and meet the rest of the Ralph Smith Motors family. You will be glad you did. I hope you enjoyed this article. I really wanted to share this story with each of you. I know we have other dealers across Alabama like Ralph Smith Motors with a completely different story. I want to share these dealers with the rest of Alabama, so please tell me about your dealership or a dealer you know. Contact me, Jay Saul, at jay@e-zautocredit.com and include a little about the dealership’s story.
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Ralph Smith Motors celebrated their 75th anniversary in March 2017. To commemorate this milestone, they commissioned local artist Bo Pittman to create a mural dedicated to the life and legacy of Ralph O. Smith.
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ACCELERATE
BY GWC WARRANTY
SEIZE THE LEADS YOU WISH YOU HAD
Generate Your Own Leads
As a dealer you’ll search high and low for the next great source of leads. At times, you might even pay for services that cut into your profits. But what if you could generate new, repeat and referral business all on your own? It may seem like a daunting task, but you have everything you need on your computer or stashed away in a filing cabinet – it’s your own network of past customers. If you’re looking to generate your own leads and save the cost of an outside vendor, nothing is more important than an up to date rolodex. It starts with gathering contact information up front and maintaining regular communication to gather any updates. This way, you never lose touch with satisfied customers and simultaneously open a potential window into their wide networks. A BrightLocal survey found consumers find word of mouth referrals to be just as reliable as online reviews, so maintaining constant contact with customers will keep you front of mind as they encounter others in the market for a vehicle.
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If you make getting accurate contact information a habit, you can chase lead sources that have seemed like a distant dream for far too long. Expired Vehicle Service Contracts If you like selling longer-term service contracts, knowing which customers are about to run out of coverage gives you a perfect reason to give them a call. You can use the expired contract as a segue to bring them in to browse for a new vehicle. If they’re not interested, a VSC renewal opportunity could bring in some revenue as well. You can build a process to find these customers on your own, or your VSC provider may be able to alert you to these opportunities. GWC Warranty elite dealers get free access to the elite lead generator, which puts this list of customers just a click away. Regular Email Communication and Social Activity You’d be surprised by the value of staying front of mind with customers. Regular email newsletters or simple timely messages can help your dealership stay on the tip of every customer’s tongue. Even if a customer who comes across your content in an email or on social media isn’t in the market for a vehicle, they may have just spoken with a friend or family member who is. Before you know it, your phone will ring with referral customers who heard about you from a past customer
who just so happened to read your email the week before. Ask for Referrals Sounds simple enough, right? At the end of a transaction or service visit, don’t be afraid to ask if someone a customer knows might be in the market for a new vehicle. The BrightLocal survey mentioned earlier also discovered that seven of 10 consumers will leave a review if they were only asked. The same concept can be applied to referrals. Just a simple ask can go a long way, not to mention if you build promotions and discounts around referring friends who go on a test drive or purchase a vehicle.
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MOTOR VEHICLE NEWS
OFF-SITE SALES EVENT Stipulations
The Motor Vehicle Division continues to receive inquiries regarding off-site licenses. Dealers may conduct sales of new and used motor vehicles from locations off-site of their permanent locations on the following conditions: 1) The off-site sales events shall not exceed three per dealer per license year. 2) The sale shall not exceed 10 consecutive calendar days in duration. 3) Off-site sales of new motor vehicles by new motor vehicle dealers shall be conducted only at a location within the new motor vehicle dealer’s area of responsibility as defined in the contract or franchise agreement between the new motor vehicle dealer and its manufacturer or distributor. 4) Off-site sales of used motor vehicles shall be conducted only at a location in the county or city where the new or used motor vehicle dealer maintains a permanent location.
county licensing official a county license for the off-site location. Motor vehicle dealers can electronically apply for and receive an off-site sales event license using the Motor Vehicle Dealer Regulatory Portal at https://dealerlicense. mvtrip.alabama.gov. A new motor vehicle dealer temporarily displaying new vehicles at a shopping mall, auto show, or other location solely for advertising or display purposes and from which location sales are not conducted, shall not be deemed to be conducting an off-site sale and no off-site sales license shall be required.
An off-site sales license shall not be required for wholesale sales between licensed motor vehicle dealers or for retail sales by new or used motor vehicle dealers conducted at the permanent location of an auction company, which is licensed as a used motor vehicle dealer. The fee for an off-site license is $25. As mentioned above, dealers are limited to three off-site licenses during the license year. Please contact the Motor Vehicle Division at dealerlicense@revenue. alabama.gov or (334) 242-9000 if you have any questions.
AN OFF-SITE SALES LICENSE SHALL NOT BE REQUIRED FOR WHOLESALE SALES BETWEEN LICENSED MOTOR VEHICLE DEALERS OR FOR RETAIL SALES BY NEW OR USED MOTOR VEHICLE DEALERS CONDUCTED AT THE PERMANENT LOCATION OF AN AUCTION COMPANY, WHICH IS LICENSED AS A USED MOTOR VEHICLE DEALER. 5) The motor vehicle dealer shall display a temporary sign at the location where the off-site sale is conducted identifying the name of the motor vehicle dealer who is conducting the sale. All advertisements and notices of the sale must be conducted in the name of the licensee as listed on the dealer regulatory license. 6) At least one calendar day before conducting the off-site sale, the motor vehicle dealer shall obtain an off-site sale license from the Department of Revenue. If more than one motor vehicle dealer participates in the same off-site sale, each motor vehicle dealer participating in the sale shall obtain an off-site sale license. 7) The motor vehicle dealer shall obtain from the judge of probate or other
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AIADA FORMS
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AIADA June/July 2017
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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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! E R E H S IT’
THE HIGHER C S V E G A E L I M S R E L A E D M A PROGR R O F G N I T I A HAVE BEEN W
. D E V I R R A S HA INTRODUCING THE NEW PROTECTIVE AUTO CARE PLAN Higher mileage vehicles need a higher mileage protection plan. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans
STAY FOCUSED ON YOUR CUSTOMERS Visit protective-acp.com
or call 866 924 7513 to learn more.
and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. The plan includes other benefits such as rental car reimbursement and emergency roadside service providing true peace of mind.
Protect Tomorrow. Embrace Today.™ VEHICLE PROTECTION PLANS | GAP COVERAGE | CREDIT INSURANCE | LIMITED WARRANTY PRODUCTS DEALER PARTICIPATION PROGRAMS | F&I TRAINING | ADVANCED F&I TECHNOLOGY Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Protective Property & Casualty Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.