ALABAMA O C T O B E R / N O V E M B E R 2 016
A L A B A M A I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I AT I O N
THE 47TH ANNUAL
AIADA CONVENTION AT THE CHATTANOOGAN WAS A GREAT SUCCESS! PA G E 14
S TAT E A F F I L I AT E
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
V I S I T U S AT W W W. A L A B A M A I A D A .C O M
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INSIDE
04...........................................................New AIADA Officers 07.............................................. Thoughts from the President 08................................. Special Membership Ticket Drawing 09...........................How Much Risk Are You Willing to Take? 10..................... Tradition and Trends Need to Work Together 12.......................................Title Obtained Under Surety Bond 14............................................................... AIADA Convention 22................................. Some Dealers Never Seem To Learn
WHAT’S NEW
The NIADA National BHPH Summit will be held
Dec. 6-8 in Dallas, Texas. This year’s theme is “Reaching New Levels of Excellence.” The conference features industry leading speakers covering best practices in various BHPH related topics as well as industry updates and strategies for the upcoming year.
For more information contact Diann Flanders at diann@niada.com or (888) 906-8283.
ADVERTISERS INDEX
Ace Motor Acceptance..........................................................5 ADESA..................................................................................IFC AutoZone ................................................................................9 ARA GPS................................................................................. 3 Black Book...........................................................................IBC Manheim .........................................................................10, 11 Manheim Pennsylvania.........................................................13 NextGear Capital...................................................................12 Peritus Portfolio Services........................................................7 Spireon.................................................................................... 8 STARS GPS............................................................................. 6 VAuto......................................................................Back Cover
OFFICE
For information on how to become a member please contact Dwayne Tambling louisianaiada@gmail.com 877-513-6275.
NIADA HEADQUARTERS
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Alabama Independent Automobile Dealers Association is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. 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 individual authors and do not necessarily represent the views of AIADA or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com Christopher Hanley PRINTING
Nieman Printing
WELCOME NEW MEMBERS Casey Boothe
Walter Cafaro
Mike Gray
Dede Vinson
Deon Bell
Kerry Mitchell
Alfredo Rios
Anthony Mathews
216 Auto Sales McCalla
Carvana LLC Midfield
Alabama Auto Mall Birmingham
Chevrolet of Boaz Boaz
Loyd Gray Motors Foley
The Automotive Group Mobile
Los Reyes Auto Sales LLC Montgomery
Paul Sides, Troy Louis Birdsong Dennis, Lee Gifford Guardian Auto Sales Anew Auto Sales LLC Florence
Billy Williams
Billy Williams Auto Sales Inc. Phoenix City
Hugh Fuller
Budget Car Sales Montgomery
Tony Dughish Carbox Mobile
Gary Hilyer
Heath Sanderson, Branch Manager Birmingham Cynthia Luker, Timothey Scott Forbus/ Office Manager John H Owen Manheim Birmingham J & S Cars for Less LLC Anniston
Birmingham
Leroy Jackson
Mitchell Classics LLC Montgomery
Jaxx Auto Sales Montgomery
Joe Dismukes
Justice Properties Inc./DBA Warbama Mobile
Unlimited Motors Montgomery
Wheels of Ft. Payne Ft. Payne
Rhett Butler
Xtreme Automotive Odenville
Bill Mitchell
Robert Crowley
Robert Crowley Wholesale Moody
Justin Wilson
Signature Auto Sales Bessemer
EXECUTIVE COMMITTEE President
Pokey Brimer Oxford
Secretary/Treasurer Robbie Case Hartselle
President Elect Chairman of Board Todd Oden Birmingham
Rex Canterbury Fayette
Vice President Chad Tillery Jemison
DIRECTORS Barry Searcy
Jerry Giles
John Dunn
Wayne Wilkinson
Lance Turner
Roderick Underwood
Willie Colvin
Randy Little
Bryan Cooper
Erek Yarbrough
Ethan Hunt
Lester Avery
Tim Duke
Joe Smith
Jay Saul
Chris Mundy
Randy Crump
Randy Sheffield
Larry Morris
Chris Hadder
Reed Ingram
Chris Mullinax
Kelly Steely
Ricky Young
Muscle Shoals Sylacauga Anniston
Tuscaloosa Huntsville Mobile
Birmingham Jasper Jasper
Birmingham
Montgomery
Hoover
Tuscaloosa Florence
Bessemer Satsuma
Pleasant Grove Oxford
Montgomery Chelsea
Thomasville Jasper
Hoover Boaz
Darrell Pettie Pleasant Grove
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ASSOCIATION NEWS / BY RANDY JONES
NEW AIADA OFFICERS
>> Continuing to Help Make
You More Profitable
I WANT TO INTRODUCE
you to your new Alabama Independent Automobile Dealers Association officers for 2016-2017. But first I want to give a special thanks to Paul Claborn for all he did for the association last year. Paul led us to our largest increase in members in the association’s history, helped fight off a tax increase on our customers, and so much more. Thank you, Paul, for taking the time and effort to serve the association. AIADA would also like to thank each board member for their commitment to the association and making it one of the best in the country. All the men and women of AIADA serve at your pleasure. They donate their time and efforts to make Alabama a better place for the automotive industry. This team’s goal: This group of officers and board members will continue to help find better ways to help you grow your business and make it more profitable. As your new president Pokey Brimer said, “It’s time to start making more money!” The more our business becomes profitable, the more we can do for our employees, customers and community. AIADA board members focus regularly on long range strategic planning. They understand the mission of the Alabama Independent Automobile Dealers Association. The vision for the future is to identify the specific tasks needed to fulfill both. They’re looking at specific tasks and action steps to make the automotive marketplace friendly to business and Alabama “the best state in the nation to buy a preowned vehicle.” We need you to join us in defining, and meeting, our one, five, and 10 year goals.
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Chad Tillery
My wife is Kerri Tillery. We have been married for 15 years and have two children: Colin, 14, and Karley, 12. I started in the car business in April 1995 at Ellison Auto Sales Inc. and I’m still here today. I have been on the AIADA Board of Directors for six years. Currently, I am serving as vice president of AIADA and Chairman of the PAC Fund. The goals I have for the year ahead are to educate dealers on the importance of the PAC Fund and to raise money for the PAC Fund. I would also like to see the AIADA membership numbers go up and the nonrenewals go down. I will strive to do all that I can to make these happen. Thanks for allowing me to serve on the AIADA board for the last several years. It has taught me a lot about the business and surrounded me with some truly great people. I look forward to serving the dealers of Alabama as vice president of the Alabama Independent Automobile Dealers Association and Chairman of the PAC Fund Committee.
Pokey Brimer
Pokey Brimer is a 30-year veteran in the Buy Here-Pay Here industry. He is president of Pokey Brimer Auto Sales in Oxford, Alabama. He has two locations, and a service department that is dedicated to his customers. He also has a related finance company. Mr. Brimer and his wife of 27 years currently reside in Oxford, Alabama. They have two accomplished sons, both attending the University of South Alabama. He has spoken at numerous conventions across the country and he currently serves as a commissioner on the NIADA BHPH panel. While bringimg a lot of knowledge to his leadership role in AIADA, Brimer knows our industry is changing. He plans to do everything possible to help the independent dealer become more successful during his term. Join Mr. Brimer and help move Alabamato the next level!
Robbie Case
I am a mechanic by trade and got in the car business by accident. I bought and sold a few trucks I bought off of a job site I was working on and met a dealer who was selling cars on payments. We talked about opening a lot together. About a month later I called to see if he was still interested and we opened a lot in December 1999. I started with two cars and never imagined it would turn into what it has today. I opened my own dealership in 2001. One of the first people I met was Randy Jones with Frazer Computing. Little did I know then how valuable meeting him would be for me and my dealership. I am so thankful for the AIADA, Randy Jones and Judy Benton. Judy is always so helpful with anything I need. I know I can count on her and Randy when I need them. I would like to see the association grow more and be known for how we help all dealers, members and non-members alike. I would like for the rest of the world to know how good it is to have a compassionate association like ours, working as a collective group to help our communities thrive and become a better place for everyone. I thank God every day for the many blessings he has given me. I ask him to show me how to make a difference in someone’s life each day. I look forward to serving the dealers of Alabama as secretary treasurer. President Elect of AIADA and Chairman of the Board for New Membership Growth
Todd Oden
My wife Gina and I have been married for 19 years. Gina serves as the president of the AIADA Ladies Auxiliary. We have one son, Michael. He is 13 years old. I started in the car business in 1976 with my dad at Wee Finance Auto Sales. We had two locations – one in Rainbow City and one in Gadsden by Goodyear. I also worked for my dad at Oden and Son Classic Cars until I graduated. Our family moved to Birmingham in 1985. My dad and I opened MTO Motors that same year. I have now been at the same location for 31 years. My goals are to serve the association with honor and to grow our membership. I hope to give back to an industry that has been so good to me and my family. I look forward to serving the dealers of Alabama as president elect and chairman of the board for new membership growth.
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COX NAMES PRESIDENT FOR MEDIA SOLUTIONS GROUP >> Includes Autotrader, Kelley Blue Book and Dealer.com
COX AUTOMOTIVE ANNOUNCED Brian Geitner has been named president of the company’s
Media Solutions Group. Geitner will oversee the company’s Autotrader, Kelley Blue Book and Dealer.com business divisions and brands, leading the integration of Cox Automotive’s platforms. He began his new role Aug. 15, reporting directly to Mark O’Neil, chief operating officer of Cox Automotive. Geitner succeeds Jared Rowe, who is departing the company for a new opportunity outside of the automotive industry. Since 2015, Geitner has served as president of Financial Solutions Group at Cox Automotive responsible for the advancement of NextGear Capital. Geitner joined Cox Automotive in 2012 as chief executive officer of Dealer Service Corp.
ONLINE MARKETING / BY JOHN STERNAL, SWAPALEASE.COM
ARE YOU ON YOUTUBE?
>>
INDUSTRY NEWS / BY USED CAR NEWS
>> You Could be Missing a Key Opportunity
MANY CAR DEALERS use Facebook as a way to target, reach and promote deals to car shoppers. But are they missing out on a key opportunity by focusing mostly on Facebook? According to a recent poll by national car lease website Swapalease.com, most car shoppers actually turn to YouTube when researching their next vehicle. The online car lease marketplace polled roughly 2,500 car shoppers across the country in June and found the following social media preferences among car shoppers: • YouTube: 43 percent. • Facebook: 33 percent. • LinkedIn: 10 percent. • Twitter: 9 percent. • Instagram: 7 percent. • Pinterest: 5 percent. “Millions of car shoppers now utilize the Internet as a way to research their next vehicle, as well as look for the deal that’s right for them, and this includes social media websites,” said Swapalease.com executive vice president Scot Hall. “Our research tells us that YouTube is an effective social channel since it gives shoppers a virtual tour of the vehicle they’re looking at, as well as an opportunity to see how it handles on the road. Online videos can be powerful in car shopping, particularly as people gravitate toward the Internet and away from actual test drives at the dealership.” SAFETY WATCH /
CHRYSLER RECALLS TRUCKS, SUVS >> Transmission May Shift to
Neutral Unexpectedly
CHRYSLER IS RECALLING 412,855 model year 2014-15 Jeep Cherokee and 2015 Chrysler 200, Jeep Renegade and Ram ProMaster vehicles equipped with 9-speed automatic transmissions. The transmission sensor clusters may have insufficient crimps in the transmission wire harness, and as a result, the transmission may unexpectedly shift to neutral. If the vehicle unexpectedly shifts to neutral, there is an increased risk of a crash. Chrysler will notify owners, and dealers will update the transmission software to prevent the transmission from shifting into neutral due to a faulty crimp, free of charge. Chrysler’s number for this recall is S55. 6 AIADA / OCTOBER/NOVEMBER 2016 AL_1016.indd 6
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ASSOCIATION NEWS / BY POKEY BRIMER
EDITORIAL NOTE /
>>
THOUGHTS FROM YOUR PRESIDENT >> Direction for the Association
TO BEGIN WITH , let me just say I am a much better talker than I am a writer, as you will soon see. I would hope all incoming presidents have a plan to improve our association, and I am no different. Part of being a leader is having a vision for AIADA. So with my first article I will share a few of my thoughts as to what direction this association needs to go. 1. Shared ownership. Every member needs to understand we all are members and must share
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in the workload for our association to succeed. 2. We must increase membership! The more dealers that participate in our association the stronger we will be! 3. Increase our PAC Fund. Our industry is under constant attack from political forces who have no idea what it’s like to be a small business person trying to run an independent automobile dealership. We must work toward electing and educating our local and state politicians. 4. Bigger and better state convention. We do a great job at our annual conventions, yet turn out is less than we might hope. Our next state convention will be held at the beautiful Perdido Beach Resort at Orange Beach, Alabama, July 2022, 2017. Make plans to join us. You will be glad you did. In closing, let me say I am very humbled by this opportunity to be the AIADA president this year. I promise to do my best and work as hard as possible to improve our association. I can tell you this: I’m just a small town used car dealer from Oxford, Alabama, and for this association to reach its full potential it’s going to take effort from each and every member. That being said, I’m going to ask each of you to do me a favor. Don’t wait to be asked to help. I’m asking for your help today, right now! To get involved, email me at pbrimer6 @gmail.com.
COMPETING WITH FRANCHISE DEALERS AND COMING OUT ON TOP >> Correction
THE ARTICLE Competing with Franchise Dealers and Coming Out on Top in the August/September issue inadvertently listed the wrong author. It was actually written by Kathy Tafolla of Lobel Financial. Our apologies.
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SPECIAL MEMBERSHIP TICKET DRAWING >> $10,000 Grand Prize
HERE ARE THE RESULTS of the Special Membership Ticket Drawing at the convention. This was our $10,000 drawing. Money Winning Tickets 1st ticket drawn: #136 won $200 Jennifer Gant, sold by Judy Benton. 25th ticket drawn: #166 won $100 Tommy Fowler, sold by Mark Crump. 50th ticket drawn: #335 won $200 Robert Crenshaw, sold by Roderick Underwood. 75th ticket drawn: #53 won $100 BNT, sold by Pokey Brimer. 100th ticket drawn: #116 won $200 Dale Little, sold by Randy Little. 125th ticket drawn: #79 won $100 Britt Rasham, sold by Chad Tillery. 150th ticket drawn: #44 won $200 Maurice Popjoy, sold by Paul Claborn. 175th ticket drawn: #30 won $100 Michael L McLeod, sold by Tim Duke. 200th ticket drawn: #119 won $200 Hadley Little, sold by Randy Little. 225th ticket drawn: #195 won $100 Leslie Hamilton, sold by Ken/Sherri McFarland. 250th ticket drawn: #111 won $200 Randy Little, sold by Randy Little. 275th ticket drawn: #371 won $100
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Trans-south Remaketing, sold by Chad Tillery. 300th ticket drawn: #382 won $200 Kasey Kidd, sold by Todd Oden. 325th ticket drawn: #392 won $100 Jones D Howard, sold by Chad Tillery. 350th ticket drawn: #257 won $200 Chris Mullinax, sold by Chris Mullinax. 375th ticket drawn: #132 won $100 Lona Mullinax, sold by Henry Mullinax. Last 11 Tickets Drawn Out: Ticket #232 Robert Case, sold by Robert Case. Ticket #113 Ryan Little, sold by Randy Little. Ticket #294 Oak Tree Motors, sold by Tim Duke. Ticket #211 Bobby Horne U/C, sold by Del Miles. Ticket #58 Pat Graves, sold by Pokey Brimer. Ticket #157 Eric Crump, sold by Mark Crump. Ticket #412 Lester Avery, sold by Lester Avery won $300. Ticket # 209 Jim Hardy, sold by Ken/Sherri McFarland won $600. Ticket #411 Solomon Garrett, sold by Solomon Garrett won $800. Ticket #343 Jamie Riddle, sold by Roderick Underwood won $2000. Grand Prize $10,000: Ticket #413 Paul Claborn and Ken McFarland (partners of the ticket).
ASSOCIATION NEWS /
>>
ASSOCIATION NEWS /
LADIES AUXILIARY UPDATE >> $35,000 Raised For Charity
ON BEHALF of the ladies auxiliary, I would like to thank everyone who helped make the AIADA convention such a huge success! The silent and live auctions raised over $35,000 for one of our largest charities, Make A Wish. This would not have happened without the help of our live auctioneers Dustin Taylor and Dave “Big Dave” Roberts. With the money raised, not only can we help change a child’s life with Make A Wish, we can also help other charities in need. The ladies auxiliary cannot express enough gratitude to everyone who selflessly contributed. If you missed out on this year’s convention it’s not too late to join the ladies auxiliary! Sincerely, Gina Oden Ladies Auxiliary President
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BHPH PERSPECTIVE / BY DAVID MEYER
HOW MUCH RISK ARE YOU WILLING TO TAKE?
>>
>> A Way to Cut Costs and Mitigate Risk
AFTER YEARS OF declining sales, the automotive industry is once again on the rise. Fueling much of the resurgence in vehicle sales is the recent growth in subprime automotive financing. So what is fueling the increase in subprime auto loans? In the wake of the recent economic crisis, increasing numbers of car buyers found themselves saddled with poor credit resulting from job loss, foreclosure, bankruptcy and other financial woes. While still struggling with low credit scores, many of those customers are now moving toward financial recovery. They’ve found new jobs and careers, are earning decent salaries, have wiped the slate clean and are lowering their debts. Despite that progress, those creditchallenged customers still cannot qualify for traditional auto financing. But they still need vehicles. To meet that demand, increasing numbers of dealerships and lenders are approving more subprime auto finance, and are going deeper and deeper in the process.
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According to a recent report by Experian, “The percentage of auto loans to buyers with the poorest credit ratings is growing faster than the rest of the auto finance market.” Almost 21 percent of open auto loans are held by individuals with subprime and deep subprime credit ratings. However, with the uptick in auto loans, we are also witnessing one of the largest increases in auto loan delinquency rates on record. According to Fitch, increased loan originations, higher lender competition and looser underwriting standards in the subprime loan market have caused an influx of higher auto delinquencies. That’s a problem. Higher delinquencies mean higher rates of default. Which leads to the question: How can you better manage your portfolio and risk for success? As subprime auto lending continues to gain momentum and loans dive deeper, the associated risks continue to rise. Dealerships and lenders who offer subprime auto financing should be prepared for an increase in delinquencies, defaults, repossessions, collection staff time and resources – all of which come with significant costs that cut into profitability. BHPH dealers and lenders are now turning to GPS tracking as a smart business strategy that cuts costs and mitigates risk while also encouraging their customers to pay on time and improve their credit.
GPS tracking, in its most effective form, is a system that enables dealerships and lenders to verify customer information faster, ensure more on-time payments and locate vehicles in real time to manage their liability with high-risk vehicle collateral. The more advanced GPS vehicle tracking and collateral management systems include additional features such as payment reminders and advanced reporting. Those features further reduce business costs while also promoting on-time payments that help customers stay in their vehicles and rebuild their credit. In a study conducted on Spireon’s GoldStar GPS vehicle tracking, 87 percent of vehicle finance customers saw an increase on their return capital. Further, 77 percent saw a significant improvement of their customers’ credit ratings. The right type of GPS vehicle tracking can improve business profitability, reduce risk, help maintain CFPB compliance and help customers improve their credit. David Meyer is executive vice president of sales and client services for Spireon, bringing more than 28 years of vehicle finance and BHPH industry experience his role overseeing the company’s Automotive Solutions Group.
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MANAGEMENT GAMEPLAN / BY SCOTT BERGERON
TRADITIONS AND TRENDS NEED TO WORK TOGETHER
>>
>> Finding a Successful Blend
THERE’S A REASON traditions exist. They grow out of established, credible and time-tested circumstances. Trends, on the other hand, can be today’s hot attraction, which may or may not stand the test of time. How can a dealership capture the best of today’s trends and blend them successfully into a tradition-based program that drives more
sales on a consistent basis? CRM and Personal RelationshipBuilding There’s no question technology-driven Customer Relationship Management programs are firmly established as a trend. In all likelihood, CRM will become a tradition over time. But for now it’s still a relatively new and shiny toy many dealerships have embraced as a bedrock organizational and sales tool. CRM enables data mining about customers as well as regular communication with them. In essence, it can serve as the engine that drives relationship-building because it brings evidence-based intel to the table. Depending on the CRM used (and how consistently and completely it is adhered to), salespeople can gain valuable information about buying history and preferences, and communication preferences. It’s gotten to the point where CRM can tell a dealership how often to communicate with a customer via email, and what not to do (e.g., overwhelm with too many emails that end up alienating the customer). But without tires the vehicle won’t move very far. All the technology-driven protocols in the world can only go so far toward the time-honored tradition of relationship-building. This is the ability through interpersonal contact to establish and maintain trust, comfort and likeability with prospective and present customers. In the rush toward technology trends (e.g., Internet car-shopping and pricing tools), there’s a tendency to embrace the former and forget the latter. The truth is successful salespeople need both – the “scientific” piece that CRM systems can bring to the table and the “artistic” ability to develop rapport one-on-one. When the two work in harmony, dealerships get the best of both worlds. Buyers are “primed” by the CRM outreach that shows the dealership understands them and gives them useful information. In-person relationship-building then seals the deal. Here’s what can happen if the two aren’t working side by side: a prospective buyer walks into a dealership and is basically ignored by salespeople nearby because they’ve been schooled not to be too pushy or aggressive. (In some cases, it’s just plain laziness.) Armed with the amount of information available online, salespeople today too often assume a prospect will seek them out if interested. In the interim, they give them space. In reality, this is the worst way to proceed. It’s happened to me. I wound up feeling ignored rather than valued. Instead, a salesperson could have introduced himself/herself and offered to help – without coming across as pushy. This would have set the tone for a pleasant and productive discussion and potential sale.
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The trend is no-haggle pricing.
The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences.
a lower price through negotiation, they won’t buy at all – or at least they will be reluctant. Here’s another perfect example of how trend and tradition can complement each other perfectly. The trend is nohaggle pricing. The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences. So find out what those preferences are, then go one direction or another – or both. Read the prospective buyer carefully, then adjust as gut feelings dictate. If someone comes in and is adamant from the get-go about a firm price, so be it. If it’s unclear what their preferences might be, ask. (Then, have an option to fit their preferences. If they want to negotiate, be prepared to shift gears from one-price shopping.) Then, of course, there’s the hybrid – a
buyer who wants the firm price and wants to negotiate from there. Decide if/how to address this scenario. In short, prepare your salesforce to deal with all types of buyers. Because just as the U.S. is a melting pot of different ethnicities, so is the car buying population a melting pot of preferences. Those preferences can best be addressed by honoring both trends and traditions. Former dealer executive Scott Bergeron is the founder and principal at Daily Gameplan (www. dailygameplan.com), a sales team performance company. Daily Gameplan’s Red Books and cloudbased CRM have been used in thousands of dealerships throughout the United States. Bergeron can be reached at 303.918.3169 or scott@dailygameplan.com.
Internet Shopping vs. Instinct Another “trend” (yes, many will say it’s here to stay) is Internet-based car shopping and pricing. There’s no doubt the abundance of Internet information has led to much more savvy and educated buyers. This is great because it opens the door for a salesperson to build rapport based on instincts instead of just answering pedestrian questions about a potential car or sale. However, exercising those traditional instincts seems to be a lost art in too many dealerships. Salespeople often are cast as order-takers, there to follow through on customer requests. As with the CRM example above, this is leaving a big (some would say the biggest) piece of salesmanship on the salesroom floor. Instincts can be wonderful because they work at a level technology doesn’t. Properly tuned in, a salesperson can intuit buying clues just by observing a prospective buyer’s body language, movements, gestures and actions. For example, a prospect is viewing pricing information on a particular vehicle, then throws up his hands. That well could indicate frustration, or is it exhilaration? The alert salesperson will make sure to find out, and take the conversation in the direction it needs to go from there. While instincts themselves can’t be trained, awareness of when and how to use them can. This needs to become, once again, a key part of salesforce training – at the time of hiring, and periodically thereafter. Even if the new hire is a seasoned pro, the “hows” of exercising instinct may need to change depending on previous experience and current dealer aims. Iron-Clad Internet Pricing vs. Art of the Deal Following through on the trend of all things Internet, one-price-no-dickering shopping has become the rule, not the exception. Why? Yes, I know a gazillion surveys have said buyers don’t want to haggle or be hassled in the price-shopping arena, and that a one-price policy makes them feel much more at ease and trusting. Well, that’s great for those people. But what about those who like to haggle? There are still many buyers out there who live for the art of the deal. If they can’t feel like they’ve achieved
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DMV MATTERS / BY JAY SAUL
TITLE OBTAINED UNDER SECURITY BOND
>>
>> Necessary Steps
IF YOU RECEIVE incomplete or incorrect evidence of vehicle ownership or have lost the evidence of vehicle ownership and cannot contact the seller for the necessary documentation, you may have the option of using the bonded title procedure to transfer ownership of the vehicle. Applicant(s) may complete a request for an Alabama certificate of title under surety bond pursuant to Section 32-8-36 or 3220-24(2), Code of Alabama 1975, by utilizing the Motor Vehicle Surety Bond Portal. Upon approval of the surety bond request, the applicant(s) will be provided a certificate of title surety bond (form MVT 10-1) to be completed by the applicant(s) and the insurance company issuing the surety bond. Step 1: Apply for a surety bond application (Form MVT 10-1A). Go to the Surety Bond Portal: https:// bonds.mvtrip.alabama.gov/. Complete the application for surety bond. Step 2: Submit the requested documents. The applicant must provide one of the following documents for proof of ownership: (A) Bill of Sale (B) Registration (C) Outstanding Title. For manufactured homes, a copy of the deed is also acceptable. The proof of ownership documents should be uploaded during the application process or mailed to the PO Box listed at the top of the application. Step 3: The applicant/owner will receive an email with the status of approved or rejected. If the bond request is approved, the applicant will receive an email notice with a link to print the bond (Form MVT 10-1). If the application is rejected, the applicant/ owner will receive an email with the rejection reason and an opportunity to make any corrections to the application. Step 4: Take the bond to the insurance company. The owner must take the bond (Form MVT 10-1) to the insurance company of their choice. The insurance company must complete the MVT 10-1, sign and place their seal or stamp/sticker on the bond and provide a power of attorney form, indicating the agent is authorized to execute the bond on behalf of the surety. The owner must also sign the bond (MVT 10-1). • The bond amounts the state of Alabama requires is located on the surety bond portal under “Bond Amounts.” • The surety bond can be obtained by any insurance company that issues bonds and is licensed to issue a surety bond in the state of Alabama. An out of state insurance company may issue the bond provided they have a license to do business in Alabama. 12 AIADA / OCTOBER/NOVEMBER 2016 AL_1016.indd 12
• The bond will be underwritten by the insurance company. The owner will pay the insurance company a percentage fee to underwrite the bond. Step 5: Complete a title application using the completed Bond (MVT 10-1). After the insurance company has completed the MVT 10-1, an application for title transfer must be submitted in ETAPS by a designated agent. MVT 10-1 Bond should be selected as the primary supporting document. The designated agent will mail the ETAPS application, MVT 10-1 Bond form and power of attorney to the department so a title can be issued in the customer’s name. The application must be made within 90 days from the date the surety bond was executed. Please note: Bonded titles will not be issued to any vehicle that is salvage or was purchased as junk, parts only or without a motor. The revised unclaimed and abandoned motor vehicle law went into effect on July 1, 2016. Abandoned motor vehicles sold under the previous unclaimed/abandoned law must be titled by the end of the 2016 calendar year. Beginning January 1, 2017, the purchaser will be required to obtain a title surety bond in order to title the vehicle. Please contact the Motor Vehicle Division at dealerlicense@revenue.alabama.gov or (334) 242-9000 if you have additional questions.
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ASSOCIATION NEWS /
2016 AIADA CONVENTION >> A Great Success!
THANKS TO OUR VENDORS, our 2016 Convention was a great success! Next year we will be at Perido Beach Resort on the Alabama Gulf Coast, July 20-22. The event will start on Thursday evening with a big beach party. This will kick off the 2017 Convention and will be great time for our dealers to meet our vendors. We took suggestions from some of our vendors and have changed our vendors’ times to give more time with our dealers. Please make plans now to attend!
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ASSOCIATION NEWS /
2016 AIADA CONVENTION >> A Great Success!
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>>
ASSOCIATION NEWS /
LIFETIME ACHIEVEMENT AWARD >> John Dunn Honored
THE LIFETIME ACHIEVEMENT AWARD was presented to John Dunn of John Dunn Auto Sales in Sylacauga, Ala. Dunn was honored during the AIADA convention by the association in recognition of his many years of dedication and service as a pioneer in the automobile industry and an independent dealer as well as his service and time to the association.
ASSOCIATION NEWS /
MEMBERSHIP ACHIEVEMENT
Randy Jones presents Roger Fields from Dealers Auto Auction of Huntsville with Membership Achievement Award.
Randy Jones presents Eric Jenkins of ADESA Birmingham with Membership Achievement Award.
Randy Jones presents Russ Sapp of ABC Birmingham with Membership Achievement Award.
Sherri McFarland, last year’s President’s Hall of Fame award winner, presents Lisa Blankenship from the Alabama Department of Revenue this year’s non-dealer President’s Hall of Fame Award.
Charles Moring (left), last year’s President’s Hall of Fame Award for a dealer, presents Rex Canterbury this year’s award.
ASSOCIATION NEWS /
AWARDS
Roger Fields (right) presents Russ Sapp the Auction Hall of Fame Award.
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AIADA FORMS
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AUCTION DIRECTORY
SHIPPING CHARGES ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010
GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061
ABC BIRMINGHAM 1046 A.E. Moore Drive Moody, AL 35004 Sale every Wednesday 12:30 p.m. Inops at 12 pm Phone: (205) 640-4040
HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.
ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277
KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095
ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010
LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030
ADESA KNOXVILLE 1011 Adesa Pkwy Lenoir City, TN 37771 Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m. Phone: (865) 988-8000
LOUISIANA’S 1ST CHOICE AUTO AUCTION 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 8:30 a.m. Phone: (985) 345-3302
ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300
MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000
ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709
MANHEIM NASHVILLE 8400 Eastgate Blvd. Mt. Juliet, TN 37122 Ford Factory Sale every other Monday 11 a.m. Open Sale every Wednesday 9 a.m. GM Factory Sale every other Thursday 10 a.m. Nissan Factory Sale once per month Friday 9 a.m. Phone: (615) 773-3800
ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211 AUTO AUCTION OF MONTGOMERY 6142 Troy Highway Pike Road, AL 36064 Sale: every Thursday 10:00 a.m. Phone: (334) 288-3399 BAMA AUTO AUCTION 4103 Gault Avenue South Ft. Payne, AL 35967 Sale: every Thursday 6:00 p.m. Phone: (256) 304-0947
MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550 MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652 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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>> LEGAL MATTERS / JEFF INGRAM
SOME DEALERS NEVER SEEM TO LEARN
>> Make Sure All Your Advertisements Comply In 2014, the Federal Trade Commission announced Operation Steer Clear. At that time, the FTC investigated what it termed to be deceptive practices by a number of car dealers. One of those entities was a dealer group that operated multiple Kia dealers under the general name of Southwest Kia. To avoid further action, Southwest Kia entered into an agreement with the FTC restricting the way Southwest Kia operated. That agreement, in addition to requiring Southwest Kia to comply with the law, required Southwest Kia to maintain, for five years, all of its advertisements and promotional materials along with any supporting documentation. The FTC order implementing this agreement was to terminate in 2034. Despite the FTC’s action, Southwest Kia apparently did not get the message. Southwest Kia continued to advertise in a way the FTC deemed deceptive. For example, in a TV ad “targeted at people with major credit problems” the dealership advertised vehicles for $250 per month. In fine print was a disclosure the price was based on an interest rate of 4.25 percent. Most of the consumers at whom the ad was directed could not qualify for that interest rate. Southwest Kia also advertised on TV two cars for under $200 per month. In fine print that appeared for two seconds was a disclosure the offer was for a lease not a purchase. The lease also required a $1,999 payment at lease inception. The other listed issue was an ad for cars that could be purchased for $179 per month. In “fine print too small to read without magnification” was a disclosure that $1,999 would be due at inception and $8,271 “would be due at the end of a 38-month financing term.” Because of these and other violations
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of the FTC’s order, the FTC brought a suit against Southwest Kia in federal court for penalties and other relief. To settle that case, Southwest Kia has now agreed to pay an $85,000 civil penalty. It has also agreed to the entry of an injunction prohibiting it from further violations of certain statutes or making certain misrepresentations. That injunction is unlimited in time. Southwest Kia must also, for 20 years, submit, under penalty of perjury, compliance information to the FTC. We can only hope Southwest Kia now complies. If not, the next step to expect is an action for violation of this federal court judgment. Such a violation would likely result in even more significant penalties. What should this case teach you? You need to understand the importance of being sure all of your advertisements comply with all applicable laws. Ads include TV and radio ads. Ads also include any information on a website for your business. They also include any marketing material you mail to potential customers. It can also include information posted at your dealership. All of these materials must comply with the law. You should also understand that an ad being technically true is not necessarily enough. A true ad can still be deceptive. Deceptive ads are a problem even if they are true. Be sure your marketing materials are not deceptive. Ads that seem too good to be true usually are. They are also usually deceptive. If your ads fail to comply and this comes to the attention of the FTC, you can expect the first step, as in this case, will be the entry of an order by the FTC requiring you to comply with the law and requiring you to maintain proof of all your ads and your compliance with the FTC order. If you fail to comply with the FTC order, you can then expect an action by the FTC in federal court seeking further relief, including monetary penalties. Further non-compliance will likely result in action in court for violating a federal court injunction. None of this is fun for you. So what do you do? The starting point is knowing what is required in your marketing materials. If you do not know the requirements, you can never hope to comply with them. Once you know the requirements, you must be sure you, or someone else who knows the requirements, reviews all of your advertising materials to be sure they are compliant. If you use outside companies to create advertising materials, do not simply trust they know the law. Your contract with them should require them to design ads that comply with the law and indemnify you if the ads fail to comply. You should check out the history of these companies to be sure, as best you can, they know what they are doing and take compliance seriously. Finally, you should review materials prepared by them before they are ever shown to the general public. Southwest Kia is not the first, and will not be the last, car dealer to run afoul of the FTC. Be sure you are not next.
INDUSTRY NEWS / BY AUTO REMARKETING STAFF
CARS.COM ACQUIRES DealerRater
>> DealerRater Reviews Said to
Strengthen Transparency
CARS.COM RECENTLY announced the company has entered into an agreement to acquire DealerRater, one of the industry’s largest automotive consumer review websites. The companies pointed out reviews have become critical to the car buying process, with 79 percent of car buyers and 68 percent of service customers reporting review sites are one of the most helpful resources when selecting a dealership. “We are pleased to bring DealerRater into the Cars.com family of industry-leading products and people as we create the largest dealer review platform in the automotive sector,” said Cars.com chief executive officer Alex Vetter. “With this acquisition, Cars.com has solidified its position as the leader in online automotive reviews and the preeminent authority for car shoppers and owners on what to buy, where to buy and who to buy from.” Since Cars.com launched its reviews in 2011, the company insisted it has maintained its transparent model for generating consumer feedback, which can better serve shoppers and customers. The addition of DealerRater and its review database further strengthens this value proposition, according to executives. “We are happy to be joining Cars.com and are proud to share a similar foundation,” DealerRater chief executive officer Gary Tucker said. “DealerRater is uniquely positioned to lead the industry transition to finding not only the right dealer, but connecting consumers with the right person at the right dealer,” Tucker said. www.alabamaiada.com 9/16/16 10:46 AM
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