ALABAMA
A L A BA M A INDEPENDEN T AU T OMOBIL E DE A L ERS AS SOCIAT ION | JUNE /JULY 2019
AIADA’S 50TH ANNUAL CONVENTION & TRADE EXPO July 18-20, 2019
Celebrating Our 50th Anniversary •L earn the best ways to make your dealership more profitable. •G et more customers on your lot. •D iscover where to find the hard to get investor. •M eet vendors face to face. •L earn from the best in the nation. •M ake plans now to join us at Perdido Beach Resort!
E arly Bird registration specials are in effect now! Call our office today at (205) 942-1000 or go to www.youraiada.com
See registration form on page 13.
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ACCELERATE |
INDUSTRY NEWS
3 HURDLES COX AUTOMOTIVE TAPS DATA EXEC TO VSC SALES By GWC Warranty
Mark Luber Joins Team
How to Clear Them
The numbers are in. Consumers have spoken. There are three main reasons customers don’t protect themselves with service contract coverage. The good news is dealers can easily clear these hurdles with the right program in place. A study recently released by Pegasystems surveyed more than 1,000 consumers to understand whether or not they saw value in service contract coverage and what stops customers from purchasing a VSC with their vehicles. Overall, the study found 63 percent of customers do not have a service contract despite seeing the value in one. Why is this? Let’s dive into what stops customers from buying a VSC and how you can overcome those obstacles. Cost Thirty-five percent of customers say they can’t afford a service contract. But when you compare the small increase in monthly payment to what a major repair could do to a tight monthly budget, it’s easy to see which scenario is easier to withstand. With so many used car buyers on tight monthly budgets, a service contract’s monthly investment can easily pay off in the long run. Not Thinking They Need One Thirty-two percent customers think they’ll never encounter the need for a service contract, but trends say otherwise. A simple question of how long the customer plans on owning the vehicle he or she is purchasing is just what you need to clear this hurdle. With the average length of ownership on the rise, chances are your customers will be in their vehicles for a long time. Used cars are inherently more likely to break down, especially as they approach and surpass 100,000 miles, making it more likely than ever a customer will need a VSC at some point during his or her ownership. Lack of Availability at the Time of Purchase To solve for the 29 percent of customers who aren’t offered a VSC at the time of purchase, all you have to do is turn to the 300 percent rule. The first step is having a service contract provider that offers the product versatility – from both a vehicle and term perspective – that fits your inventory. Once that’s in place, it’s vital you present 100 percent of your products to 100 percent of your customers 100 percent of the time. You’ll never bat 1.000, but you’ll get better at your presentation as you continue to get real-world practice and you’ll inevitably see the results in your F&I profits.
Mark Luber is joining Cox Automotive in the newlycreated role of chief data officer, reporting to chief product officer Marianne Johnson. In this role, Luber will lead
the Cox Automotive Data Solutions team, overseeing the company’s data strategy. In addition, he will lead the operations of Cox Automotive’s data business, own the data roadmap, and
oversee data governance for the company. Associate vice president of enterprise data product management Woodson Savage and a team of more than 150 will report to Luber.
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ASSOCIATION NEWS
AIADA’S 50TH ANNUAL CONVENTION & TRADE EXPO July 18-20, 2019
Inside
05.............................................Executive’s Letter 06.............................Connecting with Customers 07...................................Finance Market Changes 08........................................... 5 Social Media Tips 10.........................Be Careful With Credit Reports 14.................................. Bill of Sale Requirements
Advertisers Index
NEW MEMBERS
Welcome to the following new members: Anthony Williams A & J Motors Akron
Advantage GPS by Procon Analytics Irvine, CA
Robby Storey Auto Expo Meridianville
Conniejo Jinright CJ’s Used Cars Steele
What’s New
David Jones Auto Sales Robertsdale
Quality Dealers from across the nation will gather in Las Vegas to compete for the coveted title of National Quality Dealer during NIADA’s Convention & Expo. Even if you’re unable to attend in person, don’t miss this exciting event! Watch the live webcast on NIADA.tv on Thursday, June 20, 7 PM PDT (9 PM CDT).
Office
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
NIADA Headquarters
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. 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 © 2019 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT Christy Haynes PRINTING Nieman Printing
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Generational Logistics LLC Talladega
Brian Boling, CEO/ Bill Cheney, CTO/ Jeff Leroy Hoover Auto Sales LLC Corinna Tutor
Manheim............................................................. 11 NextGear Capital............................................. 8-9 vAuto................................................... Back Cover Stars GPS............................................................. 3 Warrantech...................................................... IBC N AT I O N A L Q U A L I T Y DEALER WEBCAST JUNE 20
Patrick Morris
Lindsey Bozeman Coliseum Motor Co Montgomery
David Jones
Steve Deluca
Errol Tractor Trailer Sales & Leasing LLC Lincoln
Philip McElhaney McElhaney Motors Valley Head
Jerry D Jones
Tuscaloosa
Mid-City Auto Sales LLC Sheffield
Ray Williams
Bailey Killian
J & R Automotive 1 LLC Birmingham
Oak Mountain Motors Birmingham
Douglas Howard
Sean Eden/Kep Eden
JMW Auto Sales LLC Birmingham
RMR 4X4 LLC Birmingham
James Johnson
Jeffery Smith
Johnson Classic Auto Selma
Rocket City Car Brokers LLC Athens
Talia Morris
Sanjay Kirpalani
M & D Auto Sales LLC Gadsden
SGK Enterprises LLC Dothan
Matthew Bell
Cale Sparks
M & M Automotive Rainsville
Sparks Motors LLC Alabaster
Seth Merrifield
James Tedder
McCall’s Auto Sales LLC Brewton
Tonya Williams Tonya Williams Insurance Agency Arab
Mark Brewer, Area Mgr. / Mark Zumsteg, Div. Mgr. of Sales
United Auto Credit Corp Newport Beach, CA
Tedder Auto Sales Attalla
BOARD OF DIRECTORS PRESIDENT Chad Tillery
DIRECTORS Barry Searcy
Jemison Cktillery@Hotmail.com
Muscle Shoals
PRESIDENT ELECT Robert Case
Sylacauga
Hartselle Robertsautosales1@Live.com
VICE PRESIDENT Roderick Underwood
Joey Bryant Lance Turner Anniston
Willie Colvin Tuscaloosa
Bessemer Runderwood@ Anthonyunderwood.com
Tim Duke
SECRETARY Erek Yarbrough
Jasper
Trussville
Jay Saul
Pleasant Grove Yarbroughbiz@Yahoo.com
Randy Little
TREASURER Randy Crump
Del Miles
Satsuma
Jacksonville
Jasper Fas_jasper@Yahoo.com
Kelly Steely
CHAIRMAN OF BOARD Todd Oden
Chris Mundy
Birmingham Mtomotorsinc@Gmail.com
EXECUTIVE DIRECTOR Randy Jones
Hoover
Columbiana
Jennifer Gant Harlow Arab
Michael Bratton Jr. Phenix City
Jerry Giles Tuscaloosa
Danny Delich Georgia
Ricky Young Boaz
Patrick Graves Moody
Mike Osaji Harvest
Jeff Demeis Hoover
INDUSTRY PERSPECTIVE |
By Randy Jones
POLITICS
Love or Hate It, It’s our Process to a Better Alabama! Does it start here?
A few years back, I started going to some local neighborhood political meetings across Alabama. Maybe 15-30 people show up and we all eat a hot dog and listen to a political candidate speak. I always stayed around to meet with each speaker. We talked about what they wanted to change, some pet peeve that has been bothering them for years and/or their reason to run for office. I can’t really remember how many of these I have been to. I wasn’t sure if they were doing any good at all. Sometimes I just wanted to go home and chill! My wife kept pushing. She said, “You will only be there for short while and you will feel better when you get back.” And I did (most of the time). Or did it start here?
A few years ago, we started bringing our political leaders to our local chapter meetings and our state conventions in hopes of building relationships. Over the years we have had attorney general Luther Strange, Senate Pro Tem Del Marsh, Speaker of the House Mac McCutcheon, Representative Chris Pringle, Representative Reed Ingram, Representative Steve McMillan,
Congressman Mo Brooks, attorney general Steve Marshall, secretary of state John Merrill and a few others. Little did I realize we would develop some strong friendships between our dealers, vendors and political leaders. I came to realize the AIADA Convention is a showcase to all Alabama just how dedicated our dealers, vendors and political leaders are to the economic success of our state. We also provide the best education in the nation to support the growth of our dealers. We need to realize the used automotive industry drives many of the major components of Alabama’s economy! I believe it really starts here: With you – the independent dealer! Our dealers are working in one of the most competitive industries in the nation!
You are providing Alabama residents with some of the best transportation money can buy! This is one of the most important purchases in our customers’ lives. This vehicle must start every morning, take kids to school, take us to work, take us to the grocery store, plus a thousand other things. You must research your ever-changing marketplace, buy the vehicles everyone wants at a price the bank will finance while trying to make a profit! Get your vehicles in front of the buyers who can buy, make sure the vehicles you bought this week are serviced and repaired – with recalls fixed, tires good, lights working, brakes working, paint good – cleaned up and ready to sell. Do all this while knowing your competition is pricing the same type vehicle! Don’t forget about all the regulatory requirements, making sure the title and Carfax is clean, your DMS is up to date, your employees are following all your guidelines, and avoiding any dangerous situations. And then you can still have a customer trash your dealership on social media! Wow, the week is over. You got all the vehicles you bought last week ready and sold with no problems! Now it’s time to do this all over again next week! You may be asking yourself, “What does
this have to do with politics?” No matter where you start, a bad political environment can destroy all the above. We are fortunate to have one of the best political environments in the country. It takes a lot to keep it! We need to attend these local neighborhood political meetings together. We all need to attend the AIADA conventions – express your needs to your political leaders while learning from some of the top teachers in the nation! Plus, we must keep our AIADA PAC Fund healthy to support our current political leaders and change out the ones not working for our interest. It doesn’t take a lot of money. If you send just $1 for each vehicle you sell to your AIADA PAC Fund, we will be fine. In Closing I have been working as your AIADA CEO for five years. There are many working parts. Our goal is for Alabama to be the best state in the nation to own a used automotive dealership and the best place to raise our families! Together we can do this! Become a part of the Alabama Independent Automobile Dealers Association. We are now the sixth largest independent dealers’ association in the nation! We are comprised of the most successful and progressive independent dealers and associate members to be found. We promote a general duty of integrity, honor and fair dealing toward the general public. We are passionate in learning the best ways to provide transportation to our customers. We help our dealers and vendors build stronger communities for our customers and our families. We help you become the dealer you want to be. It’s not easy, but being the best never is! The hard fact is the future of our dealerships and our communities lies in our hands. It’s our responsibility to work with our political leaders in Montgomery and Washington, DC to better understand our business needs. Support the ones who help and vote out the ones who don’t! No one is better able to explain our business than you – our dealers and vendors! The better our government understands our business and our needs, the more of an ally they become to the growth of the independent automotive dealer. Nothing great comes from accident! It comes with organization and strategic planning to achieve our goals. At AIADA, this is what we do! If you’re not an AIADA member, join us now! Call our office at (205) 942-1000 and start you way to a great success! Randy Jones is CEO of AIADA.
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ONLINE MARKETING |
By Brandy Allison
CONNECTING WITH CUSTOMERS
Developing Your Online Presence Traveling across the state of Alabama, I have had the opportunity to speak with dealerships about what marketing tools they have used to their benefit. I’m always excited to learn a dealer is using social media and other web-based tools to promote their business, especially free social media. Today’s consumers are doing more research online and visiting fewer dealerships in person, affecting the opportunity to engage before a car-buying decision is made. The cost of marketing has increased over the years, impacting many dealerships’ bottom lines. Dealers have been forced to find new ways to achieve marketing goals and many have found that building an online presence can greatly improve their business’ overall sales performance at little to no cost. Social media is great way to start and can be a powerful marketing tool that brings new customers into your dealership. It can create demand within your community while also establishing a wider target area. It allows you to connect with customers and gain repeat business while giving you the means to provide customer service outside of the dealership. Using social media – such as Facebook, YouTube and Instagram – as a marketing tool gives you the opportunity to present your vehicles with photos and videos on a platform through which potential customers can contact you. For years, dealers have used Facebook to attract customers and promote dealer/consumer engagement. In 2016, the company introduced Facebook Marketplace as a convenient marketing tool that allows actively-seeking car buyers to view posts of pre-owned inventory. Over 550 million shoppers visit Facebook Marketplace every month and you can post for free! Your vehicles are showcased in newsfeeds of users who have clicked on your inventory previously, and it will also alert them to new listings that match their saved search criteria. Facebook Marketplace has collaborated with third-party marketplaces to make inventory listing even easier by linking shoppers to more intelligent local searches for vehicles at local dealerships. Thirdparty marketplaces for listing inventory include ActivEngage, Auction123, AutoManager, AutoRevo, AutoSweet, Binge. AI, BuyerBridge, Cars.com, Carsforsale. com, CarNow, CDK Global, Contact at Once!, DealerOMG, DealerSocket, Dealers United, Dominion Dealer Solutions, Edmunds, Engage To Sell LLC, Friendemic, Gubagoo, HomeNet, Cox Automotive, LotVantage, Podium, PureCars, Socialdealer, Talkinto, TapClassifieds,
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TurnKey Marketing, V12 Software, and VinList. Some consumers are also using websites like Edmunds and TrueCar to find relevant information about vehicles. You can reach those shoppers by having your videos tagged to show up in their search results on these sites. YouTube is another strong marketing tool that is great for posting videos of vehicles on your lot, showing off key features and specifications and posting reviews. Social media is an outlet to polish your brand and YouTube provides an excellent opportunity to promote your brand while interacting with customers. Use it to speak to current and potential customers – illustrate who you are and why your dealership is the one they should choose, post videos, highlight customer reviews, provide detailed car listings with pictures, encourage your employees and happy customers to share posts and leave feedback/reviews to build your online presence. Instagram uses images and short verbiage to quickly connect with targets visually. It can be used to promote vehicles, sales events and promotions and is a clever way to brand yourself without being obviously commercial like the traditional radio and TV ads customers are used to. You can gain followers with hashtags as a way for your customer to search for that image and serve as an indirect plug for your business. For example, with #fifty+yearsinthebusiness, #ProGuardWarranty, and #avocapa, I was able to convey meaning, brand, and create usable search criteria in three simple hashtags. To promote specific vehicles, use the # of your city name on detailed posts of inventory to reach local leads and make sure to include essential information such as make, model, price, year, and mileage. Use hot button items or a link that entices consumers to click on it to help your dealership trend. For example, if you have a child or cute family pet, take a picture of the subject “washing” a vehicle and caption it “our newest employee” or “we start them young in a family-owned business.” The caption is designed to grab attention and connect your brand with your audience without directly advertising. Google My Business is another free online marketing tool that contains key information about your business. As consumers search through Google results, your GMB listing can draw customers to your website and possibly your dealership. By creating your GMB listing, you can get your dealership’s location on both Google Maps and Google Search, using keywords and images to increase your rank in search results. Google continually monitors activity
between your dealership and consumers, so be diligent in keeping your GMB listing active and up to date to increase your chances of a better ranking, both locally and organically, in search results. Unfortunately negative feedback does occur. It’s the nature of the business. But don’t ignore or delete the negative comments, especially if it’s a public post. Take time to think about your response but don’t wait too long. Engage customers who post complaints as an opportunity to resolve the issue in an honest, transparent manner that can increase customer loyalty and illustrate you put the customer first. Your response can potentially win back that dissatisfied customer as well as demonstrate you take customer feedback seriously. Also work to gain more positive reviews by asking happy customers to post their positive experience. And if your customer has taken the time to leave you a positive review, return the favor by replying and letting them know how much they’re appreciated. A digital “thank-you” note could gain their repeat business and be seen by others, which can influence potential customers. A web-based presence can be an asset for customers at every stage of the shopping process. You want your dealership to be the one on the forefront of their minds when they’re ready to make a purchase. To make sure your posts are consistent, entrust an employee to run your online accounts. If you don’t have the staff to maintain your online presence, consider a local marketing student to intern or work for you on an as-needed, consulting basis. Hiring an intern familiar with current marketing tools could greatly benefit your online presence and some students may even do an unpaid internship to gain credits as well as enhance their academic and professional development. Post regularly – daily is ideal – and be conscious of the timing to reach the most consumers. Here are optimal posting times: • 7-9 a.m. • 11 a.m. to 2 p.m. • 5-7 p.m. YouTube, Facebook, Facebook Marketplace, Instagram, and Google My Business are all free social media tools to better promote your business. Why not take advantage of them and increase your online presence to sell more vehicles and make your dealership more successful? Brandy Allison is a dealer consultant at ProGuard Warranty.
SAFETY WATCH
F&I MATTERS |
By Lisa Bundy, CarGirl
BMW FINANCE MARKET EXPANDS CHANGES RECALL FOR FIRE RISK What it Means for Dealers
PCV May Short Circuit
BMW of North America, LLC (BMW) is recalling 184,505 2006 525i, 525xi, 530i, 530xi, 530xi Sports Wagon, 325i, 325xi, 325xi Sports Wagon, 330i, 330xi, Z4 3.0i and Z4 3.0si vehicles. The heater for the positive crankcase ventilation (PCV) valve may short circuit. This increases the risk of a fire, even when the vehicle is not in use. BMW will notify owners, and dealers will replace the PCV valve heater, free of charge. This recall is an expansion to recall 17V-683.
AUCTION NEWS
ADESA LAUNCHES SIMULCAST PLATFORM
Cloud-Based Solution
ADESA recently announced the launch of ADESA Simulcast, powered by Auction Frontier’s Velocicast, a cloud-based auction simulcast solution. ADESA, working with Auction Frontier, is transitioning from its current ADESA’s LiveBlock platform to ADESA Simulcast. The new platform is launching on ADESA.com, ADESA.ca and ADESA’s mobile app. At the physical auctions, ADESA Sacramento and ADESA East Tennessee have transitioned. All other ADESA U.S. and Canada auction locations will be fully transitioned by the end of June.
What is going on in the auto finance market? And why should I care? You may think you are a car dealer but in reality you are a link to financing, whether you finance in-house, use outside finance companies, or send your customer down to the local credit union or bank to pay for the car they want to buy and you want to sell. That means that what happens in the finance arena affects you and your business. So changes in the market, interest rates, access to capital, etc., can spell “good times” or “rocky road ahead.” Here are some things that have precipitated the changes we’ve seen. • F eds raising interest rates is great for us who are saving but not so great if we are using institutional money. It also means those companies that buy our deals (point of sale or bulk) are paying more for their money and if they are already charging state cap it just means the margin is slimmer. • C apital gets moved into another industry such as housing or tech. Wall Street loved the auto finance industry back in 2011, but not as much today. As I keep telling dealers, they were never going to marry us – they were just dating and now they have found someone prettier and younger with more ROI potential. • U sed car prices have been pretty stable the last eight years and thanks to increased new car prices the demand for used cars will continue to hold good value. However, competition from new car franchises and super stores have put them in our (the used car dealer) market and it can be hard to compete when they have captive lenders who pay much less for their money through securitizations versus assetbacked lines of credit. • W hen margins get squeezed, smaller companies have to “lean up” by reducing markets that are not as profitable, make program changes to reduce losses and lean more towards automation to reduce the personnel cost. That means we have lost some companies altogether and others have cut off dealerships for various reasons such as app-to-fund ratio or performance of the contracts. • B anks and credit unions are making a shift from consumer products to commercial products, for several reasons. One is that it
is easier to manage one loan than 100 loans. Secondly, the interest rate they can charge is usually higher and comes with resets in 3-5 years, which consumer does not. So what does all this mean to the used car dealer? It means we need to know who is still in the market. Research, call your association and find out if new players are in your state. Try to reunite with old companies you swept aside when someone else was “buying deep.” What are they buying and not buying as a customer and inventory? If their model has changed, have you? If they are no longer buying cars over 10 years old, are you still buying those cars? The same goes for the customers. If no one is buying first timers, should you buy the inventory that first timers buy if you do not have an option for them? Match your inventory up with your finance sources and your advertising up with the finance companies’ desired customer. Otherwise you are in for a frustrating few years. That will automatically push some customers to the BHPH model, which can be another way to succeed if that’s your model. Use the inventory and customer profile that is falling by the wayside. Treat all finance sources like partners because if they don’t succeed, neither do you. Every time we lose another lender, it hurts the used car business in some way. The loss of a finance source weakens the overall finance options for our customers as well as our access to capital to run our businesses. I get asked if the auto finance market is headed down the path of subprime mortgages and I can’t see the parallels they try to draw. Here in the US, people will always need a way to get around, whether they are old, young, rich, or poor. That means transportation is king and regardless of whether they own a car or use Uber and Lyft, there is a car involved. We have not figured out how to transport someone electronically (“Beam me up, Scotty”) to the doctor, grocery store, or nail salon yet. And even if we are buying everything from Amazon, someone brings it to our door in a car or truck. The drones are not working on heavier packages or in dense urban locations. What is changing is whether or not the finance needs of our industry are getting met by Wall Street or Main Street. WWW.ALABAMAIADA.ORG JUNE/JULY 2019 AIADA 7
SOCIAL MEDIA | By Kathi Kruse
5 SOCIAL MEDIA TIPS FOR CAR SALESPEOPLE
Put Your Professional Brand into Action Building a recognizable professional brand opens up professional opportunities. Social media can be very helpful for car salespeople to build authority, engage current and wouldbe customers, and set appointments. Every time you are online, in a meeting, at a conference, networking reception, or even a backyard BBQ, be mindful of the following: 1) What others are experiencing about you. 2) What you want others to experience about you. In each of your engagements, your customers, peers and even friends and family are evaluating you. When you’re solid in your professional brand, there is no difference between #1 and #2. As a car salesperson, being new to this idea of a professional brand can be challenging. However, when you begin to see yourself living through the “lens of a brand,” your perspective will change and you’ll become more mindful about how you approach the professional brand you are trying to define and aiming to live.
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Customers have changed how they shop: • 95 percent of car buying begins online (Google). • 96 percent of consumers are influenced by online reviews (eMarketer). • 80 percent of car buyers are more likely to turn to social media than a salesperson (Crowdtap). • There is expectation of price without having to talk to anyone (DrivingSales). • The average consumer visits 1.6 dealerships in person (Autotrader). Putting your own professional brand into action allows you to greet the customer where they are and help facilitate a purchase (or a purchase through their friends and family). We call this “social selling.” These five “social selling” steps will help you put your professional brand into action. Look Your Best Your image is just as important in the digital world as it is in the real world. Online, your profile image is the first thing prospective clients will see. Make a
good impression with a professional image that isn’t too stuffy but still makes you look trustworthy and friendly. The copy in your bio on any social network has to accomplish everything a greeting, handshake or elevator pitch would do in person. Write every word with your prospect in mind and write in the first person, not the third. And be sure to very clearly share your contact info. Share multiple avenues if there is room. On a site like LinkedIn, where you have more real estate to expand upon in your summary section, tell a story about who you are, why you do what you do and how you can help. Remember, LinkedIn is different from a resume. Use your headline not just for your title but also for a short phrase or keyword explaining how you help your clients. Build Your Credibility Your store has a solid reputation, but do you? Social networks can help you build your personal brand. With every Facebook post,
Instagram post, LinkedIn comment or Tweet, you can grow your reputation and establish a solid foundation. It’s a great record of your authentic self and a great place to demonstrate your understanding of your industry and potential clients. High credibility can be achieved by sharing relevant articles about the auto industry and your dealership as well as adding thoughtful insights to conversations and solving problems your prospects may have. It’s all in the name of establishing trust. When you share interesting thoughts, others will re-share them, tag you or start a conversation with you. Track Your Social Selling Efforts The best way to get better at social selling is by learning from your existing efforts. Collect insights from your current efforts and see what’s effective as well as what isn’t. Based on this data, ask yourself what you should be doing differently and what you can do better. This can help you gain clearer direction of how you should adapt your efforts to deliver even better results. Track these metrics and set personal goals to improve: • Inbound connections and network growth. • Content engagement rate (how many people are engaging with your content each week?). • Follower quality (followers who find and engage with your content).
• Prospect referrals. • Lead activity. Pro tip: LinkedIn has a “Social Selling Index” (SSI). LinkedIn should be one of your preferred channels to prospect. Check out your own SSI at business.linkedin.com/salessolutions/social-selling/the-social-sellingindex-ssi. Monitor Relevant Conversations to Find Prospects The most effective tactic to understand what your prospects want and need is to listen to them. You can then customize your messaging and/or offering based on this knowledge. All you need to do is pay attention to what your prospective and current customers are saying. Monitor relevant conversations about your vehicles to see what issues existing customers are experiencing. Maybe they’re venting their frustrations about your service on social media. Or they could be raving about you but mentioning some areas that need improvement. You can make use of all of this information to provide solutions to your existing customers and address their issues. So you’ll be nurturing your relationship with them to enhance their loyalty. Pro tip: Participate and engage in Facebook and LinkedIn Groups. You can share your valuable expertise and content, ask relevant questions or engage with group members to build a relationship.
Find Your Prospects Social networks are a great place to learn more about your potential clients. Pay attention: where do your potential clients turn to seek more information about problems they may have? Do they belong to a LinkedIn group? A public or private Facebook group? A weekly Twitter chat? Plant yourself there, listen to their conversations and get involved. While LinkedIn is the place to turn for business connections, Twitter has a much better search function and has a lower barrier to entry. You can follow anyone you want, from a CEO to a celebrity, and they don’t have to accept your request as they do on LinkedIn or Facebook. They might even follow you back. Once you’ve found some prospects, they may be able to lead you to others. For example, check out whom they are following and start following those people as well. On LinkedIn, some of the best conversations happen in industry-specific groups. Check the profiles of your prospects and see which groups they are a part of, and then join them. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@ krusecontrolinc.com.
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ACCELERATE |
LEGAL MATTERS |
By Jeff Ingram
BE CAREFUL WITH CREDIT REPORTS
Follow the Proper Procedures Obtaining and using a customer credit report is one of the most common actions taken by car dealers. Each credit report should be treated with care because each one represents potential liability to you. There are numerous restrictions on the use of those credit reports. Generally, what you obtain is a “consumer report.” Use of such a report is governed by a federal statute. A “consumer report” includes more than just what you may normally think of as a credit report. A consumer report is a written, oral or other communication of information by a consumer reporting agency bearing on a customer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used or collected to serve as a factor in establishing the consumer’s eligibility for credit or insurance, employment purposes or any other purpose authorized by statute. Credit reporting agencies are limited in furnishing a consumer report. Such a report can be furnished only if the consumer report is to be used: 1) in connection with a credit transaction involving the consumer; 2) for employment purposes; 3) for insurance underwriting purposes; 4) for a legitimate business need in connection with a business transaction initiated by the consumer or to review the consumer’s account. How do credit reporting agencies ensure their reports are used only for these purposes? By obtaining warranties from you confirming the report is being obtained for one of these permitted reasons. If you take an adverse action based in whole or in part upon the information in a consumer report, you must provide: 1) notice of that action to the consumer; 2) the name, address and telephone number of the agency that furnished the report; 3) a statement that the agency did not make the decision to take the action and cannot provide the reasons why the action was taken; and 4) notice that the consumer can obtain a free copy of the report from the agency and dispute anything therein that is inaccurate or incomplete.
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An adverse action is not just a refusal to provide financing. An adverse action can include offering a financing rate in excess of the amount requested by the customer. If you deny credit for personal, family or household purposes or increase the credit charge based on information gathered from someone other than a consumer reporting agency, you must, if requested by the consumer in writing, disclose the nature of the information to the consumer. Be sure you have reasonable procedures in place to assure compliance with these sections. Such procedures could be an important defense in a claim brought by a consumer. It has long been thought that you do not have to supply the adverse action notice if the credit decision is made by someone else. For example, if you submit a credit application to a potential financing source and that source refuses to extend credit, that source must supply the adverse action notice. If their notice if sufficient, you probably do not have to furnish one. There has, however, been litigation as to whether or not dealerships must also send an adverse action notice even if the financing source sends one. To be safe, you should send your own notice to everyone who has an adverse action taken against them. Many dealership computer systems automate this process, making it easy to send out those notices. Once you obtain a credit report, you must take steps to protect that information. Do not allow employees or other persons to view the report unless there is a legitimate business reason for them to view the report. Do not simply throw the report away. When you dispose of a report, you should do so in a secure manner such as by shredding the report. Store reports in a secure manner to prevent unauthorized access. Obtaining credit reports is a necessary part of your business. Do not let it cost you money for failing to follow the proper procedures.
By GWC Warranty
VEHICLE PHOTOS THAT SELL
Set Your Inventory Apart
Every picture you take of your inventory and post online can be the one click that sells a car or sends your customers on to a competitor’s website. When it’s time to get your camera ready for that new score from auction, be strategic to make sure your customers see everything that’s good about your inventory. Focus on the Details Things like tire treads, shots of clean engine compartments, high-quality stitching on upholstery and other small items can show your attention to detail that will attract customers and save them on repairs after the sale. These items may seem small, but can give the customer the impression they’re buying a meticulously maintained vehicle.
Highlight Your Reconditioning You spend valuable time and money on getting your cars ready for primetime. Show this to your customers. You can even go as far as to show off an invoice or list of work done on the car to get it ready. It shows your customers how this car can stand out from similar models on sale elsewhere. Try Video A tool like Covideo gives you the ability to bring a standard vehicle walk-around to life. It gives you the ability to give your customers a firsthand look at the car. You can take them behind the wheel, in the seats and up close with every bell and whistle to show it off like a photo never could.
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ASSOCIATION NEWS | By Randy Jones
AIADA CELEBRATING 50TH ANNIVERSARY
A Convention for the Record Books
This will be a convention for the history books. Your AIADA’s 50th annual Convention and Expo will be held July 18-20 at Perdido Beach Resort in Orange Beach, Alabama. We are extremely proud of the convention this year. We will celebrate the achievements of president Chad Tillery with Ellison Auto Sales in Jemison and welcome our incoming president, Robbie Case with Robert’s Auto Sales in Hartselle. Chad has done a great job this year in leading AIADA to bigger and better things. Robbie has his goals set on getting more done in Montgomery and Washington DC. Each year your association president works on your behalf to make the automotive industry in Alabama a better place to have your business and raise your family. But you need to remember it is not a one man show. It takes a lot of teamwork! A lot of us have different party lines and political platforms, but we all have the same love for our country! At this convention we have several politicians attending as our guests. These politicians need to get to know us, especially you and your family! We want the people working on the front line of setting the policies that steer our state and country to know us. We want them to share our industry needs and goals so we can work together to build a stronger Alabama and America!
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We need each of you dealers and vendors to set aside the third week of July 2019 to do your part in making Alabama the best state in the nation to be in the automotive business! As we offer different types of events, we have the opportunity to do some networking. Last night we met with someone who can help us with one of our biggest problems. Now we are on the road to possibly getting it solved! Again we want to thank Peak Performance, one of many vendors who give back to your industry and are investing in your future! AIADA is building a better tomorrow for you, your family and your customers! Please be sure to thank Mike and Danny as well as your fellow dealers who made this possible! As a big plus, this year’s convention offers various classes meant to keep you up to date on the latest compliance issues, regulatory changes and best practices. Our research has shown us we must provide you the best-in-class dealer training and education. Your convention committee has done just that. They have made tremendous effort to get the best of the best for this convention. I’m sure I can speak for you in saying Alabama dealers, vendors and our buyers have gone through a lot of changes in the last few years. And the changes are not slowing down! The world as we know it is changing all around us – the customers, our vehicles, the way we advertise, just about everything!
This is a must attend convention! You will learn more in two days than you usually learn in four or five years. We have some of the top speakers in the nation, hands down! At AIADA we are not waiting to see what happens tomorrow. We have planned some very aggressive training platforms to face tomorrow with the education and tools for your success! AIADA conventions are for all Alabama’s independent dealers – Buy Here-Pay Here, retail, dealers with multiple locations, cash only dealers, mom and pop stores, secondary financing stores, prime financing stores, etc. We have something for you! Being the best is never easy, but it is worth it! Bring your family – let them enjoy the white sands and the blue water of the Gulf of Mexico while you build for your success. Make new friends and watch your business grow. We have great list of vendors and you will be able to meet all of them face to face. Some of the most respected voices in the automotive industry will tell you, AIADA – hands down – puts on the best automotive convention in the nation! We must agree! Come find out for yourself. Join us as AIADA celebrates its 50year anniversary! Call our office at (205) 942-1000 and let’s get started today!
DEALER Convention Registration Form
ALABAMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION PERDIDO BEACH RESORT, ORANGE BEACH, AL 50th Annual Convention – July 18-JULY 20, 2019
Participant Information: Member Name (as it will appear on badge) Name of Spouse/Guest (as it will appear on badge) Age
Names of Children attending 1. ***(Please fill in age) 3.
Age
2.
Age Age
4.
Dealership or Business Name
Contact Person _____________
Address:
Email Address:
City:
State:
Zip:
Telephone:
Fax:
*** Please give us a count on how many in your party are attending each meal. This will help us 13 yrs & up 6 yrs to 12 years with the meal count for the hotel. MEALS: Fri. Breakfast Adults _ Children Children Fri. Lunch Adults Children Children DEADLINE FOR Fri. Dinner Adults _Children Children REGISTRATION IS Sat. Breakfast Adults Children Children JULY 10, 2019 Sat. Banquet Adults _ Children Children Registration Fees: (0 to 5 years are free) Member: $349 IF YOU REGISTER BY JUNE 1, $399 AFTER JUNE 1 $ Member’s Spouse or Guest: $149 IF YOU REGISTER BY JUNE 1, $189 AFTER JUNE 1 $ Employee of Business: $349 IF YOU REGISTER BY JUNE 1, $399 AFTER JUNE 1 $ Employee’s Spouse or Guest: $149 IF YOU REGISTER BY JUNE 1, $189 AFTER JUNE 1 $ Ages 13-16 years----------------------------------------------------------- $110 = $ Ages 6-12 years ------------------------------------------------------------- $99 = $ Children 0 to 5 yrs. FREE (# of children coming 0-5 years old) TOTAL REGISTRATION PAYMENT = $ (Please make check payable to: A.I.A.D.A. Payment must accompany registration form.) (please check )
Card #_
CREDIT CARD TYPE: Visa
, Mastercard
Expiration
, Discover
CVV#
BILLING ADDRESS FOR CARD (if different from above) NAME ON CARD
>>>Please return registration form to:
Amex
(3 numbers on back of card)
or (4 numbers on front of AMEX)
SIGNATURE CARD HOLDER
A.I.A.D.A., P.O. BOX 19627, BIRMINGHAM, AL 35219 OR FAX to 205-942-3565 or you can EMAIL TO judypbenton@gmail.com • •
TO MAKE RESERVATIONS FOR HOTEL CALL 1-800-634-8001 GROUP ID# 14974 RESERVATION DEADLINE IS JUNE, 17, 2019 WWW.ALABAMAIADA.ORG JUNE/JULY 2019 AIADA 13
REGULATORY MATTERS |
By Revenue Department
BILL OF SALE REQUIREMENTS Common Questions and Errors The Motor Vehicle Division frequently receives questions concerning bill of sale requirements. Listed below are the minimum requirements provided in Administrative Rule 810-5-1-.246. (a) Name of purchaser(s). Both names should be listed if joint ownership. Names should be identical to the title application. (b) Complete physical address of purchaser(s). (c) Date of sale. (d) Complete vehicle description: vehicle identification number, make, year, model or series number, body type. (e) Name of seller(s), including DBA (doing business as) name(s). (f) Complete address of seller(s). (g) I f the seller is a licensed retail dealer, the following language shall be printed, stamped or otherwise inscribed in a bold and conspicuous manner on the bill of sale or other sales document: “Penalty of fifteen dollars ($15) due if vehicle is not registered in the name of the new owner within 20 calendar days” as required under Section 40-12-260, Code of Alabama 1975. (h) Signature(s) of seller(s) and purchaser(s) or authorized representative of seller(s) and purchaser(s). (i) Purchase price of vehicle. (j) If the vehicle is sold by a licensed dealer, the purchase price upon which any state, county or municipal sale tax was paid, and the amount and rate of sales or gross receipts tax collected at the time of purchase for the state, municipality and county where the sale was made, as provided under Section 40-23-104, Code of Alabama 1975. Example: Sale price $25,000 State of Alabama (2%) $500 Montgomery Co. (.333%) $83.25 City of Montgomery (1.25%) $312.50 (k) Designated agent and/or dealer license number, if applicable. Title Application Fees The Motor Vehicle Division has become aware of confusion, for some dealers, regarding the amount that may be charged for a title application. As a result, some dealers are not in compliance with the amount set forth by state law.
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As provided in Section 32-8-6, Code of Alabama, a designated agent may add the sum of $1.50 for each title transaction fee of $15. The total charge for a title application shall not exceed $16.50. As provided in Section 32-8-7, Code of Alabama, counties/licensing offices may collect $1.50 commission fee in addition to the $1.50 designated agent commission fee. Therefore, a county/ licensing official can charge a maximum of $18 for a title application. However, a dealer may not charge more than $16.50 for a title application. Sales Tax County licensing officials have noticed an increase in errors involving sales tax and the Motor Vehicle Division would like to address some of the most common errors dealers are making. • A licensed retail dealer cannot “let the customer pay the sales tax at the courthouse.” Licensed retail dealers are required to collect the sales tax and furnish the purchaser with documentation showing the amount of sales tax collected for the state, city, and county where the sale was made. • The state, county, and city sales taxes must be itemized on the bill of sale so the county licensing official may collect the correct amount of local use tax, if any, on vehicles required to be registered. If the amounts are not itemized, the license official should send the purchaser back to the seller to obtain a correct sales invoice/bill. • The rate of tax is 2% for state, while the city and county rates are determined by those jurisdictions. A directory of city and county sales tax rates is available on the Sales & Use Tax Division homepage. • The tax should be collected on the basis of the full purchase price, including freight and handling charges, while finance charges and insurance costs are excluded when separately stated on the invoice/bill of sale. The tax treatment for common amounts are listed below: • Title fees – Not taxable •D ealer Discount – Not Taxable •D ocument Fees – Taxable • Manufacturer’s Rebate –Taxable • Processing Fees – Taxable •F inance and Insurance Charges – Not Taxable For more information regarding sales tax, please visit the Sales & Use Tax Division at: https://revenue.alabama.gov/ sales-use/.
MARKET WATCH |
By Used Car News
CONSUMERS SAY THEY WANT ONLINE FINANCING
FICO Survey on Consumer Perception
There is a disconnect between consumers’ finance preferences for current loans and consumers’ finance preferences for future loans – with the largest gap centered on digital. That is a key finding of FICO’s second annual global survey on consumers’ perceptions of their vehicle financing experience. The research looked at how consumers view the financing of their new and used vehicle purchases, as well as how vehicle finance companies are currently meeting customer expectations. More than a quarter of consumers (28 percent) listed online financing as their first choice for their next loan, an increase from the number of current online borrowers (13 percent). Meanwhile, 63 percent of consumers applied for their current automotive loans from the dealership, but only 40 percent said dealership financing would be their first choice for their next automotive loan. While dealership financing continues to be the preferred loan option, online loans are gaining traction, driven by changing consumer expectations.
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