ALABAMA
ALABAMA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
OCTOBER /NOVEMBER 2018
2018 AIADA CONVENTION
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage S TAT E A F F I L I AT E
VISIT US AT W W W.AL ABAMAIADA.ORG
RACING TO THE FINISH LINE
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ASSOCIATION NEWS |
By Randy Jones
EXECUTIVE DIRECTOR’S MESSAGE
Only One Constant
There’s one constant in the universe — nothing stays the same. Independent retailers know this as well as anyone. If you’re a Baby Boomer and have been in this business for some time, you’ve gone through gasoline shortages and price spikes, consumer credit peaks and valleys, poor automobile quality and recalls, the rise of the Internet, and so much more. You’ve come to accept the fact that change is inevitable. As long as you’re able to secure quality inventory, recondition, market, and sell vehicles at the right price, and you are able to put bread on the table and money in the bank, you’re good. But change is coming at a faster pace than ever before. It took a while for dealers to adopt fax machines and a computerized DMS, but earlier this year General Motors CEO Mary Barra said automotive retailers will experience more change in the next five years than they have in the last 50. Ouch! Carvana, whose website states its mission is to “cut out dealerships,” predicts it will sell 360,000 units annually by 2020. CarMax predicts it will sell 800,000 units annually by the same year. That’s nearly 1.2 million units combined that traditional independents will not sell in three short years. If you’re like most dealers, these enterprises have come to a marketplace near you. The Great Recession destroyed many franchise and independent retailers as consumer and business credit evaporated. Think about what “Cash for Clunkers” did to quality inventory independents could easily sell. Instead it was simply crushed for scrap. Some predicted the independent marketplace would take decades to recover. Predictions of the automotive retail industry’s imminent demise have come and gone over the years. Some have been accurate, while others have not. Still, the consensus today by Cox Automotive, KAR, and many others is that major shifts in the way retailers conduct business are coming. The question is how long it will take. Add “artificial intelligence” to this mix and our industry may change in ways that are simply unforeseeable. Should dealers wait for the inevitable because there is little we can do? Or should we be proactive and keep our finger on the pulse of what’s happening around us, be nimble, and be capable of responding thoughtfully? I go back to those awful days after September 11, 2001. No one knew exactly what would happen or what to expect, but just about everyone knew things would change. I recall the debate: “Should I hold on to the cars I just bought last week and wait for prices to rebound? Or should I cash out, take my hit, go back to auction and find vehicles at the right place for the new market?”
We all know with the benefit of hindsight it was those that were proactive who succeeded in returning to profitability sooner. So now dealers ask themselves if it’s worth it to stay in this business. Dealers unfamiliar with Facebook ads, text message marketing, and completing at least part of the transaction online before the consumer ever comes to finalize at the dealership wonder if it’s worth it. Are the millennials in this business better equipped to adapt and respond to a changing marketplace? Are they better at technology? My guess is no. They are in the same uncharted waters as older operators. Millennials may be more adept at technology but may not have the wisdom that comes only from experience — many failures and a handful of successes. A dealer with 25 years in the business should have far greater repeat and referral business than a relative newcomer. That retailer should also have a big network they can call upon to find capable employees in a tight job market with under 4 percent unemployment. Any dealer, regardless of age, can have a huge advantage over his or her competition if they join the Alabama IADA. Our members get an enormous value proposition. If they attend local chapter meetings and take advantage of our annual statewide convention, they will get a wealth of information and knowledge from experts in our industry. Our staff in Birmingham wakes up every day thinking of ways to provide excellent customer service to our members and assisting them with their questions and concerns. We’re also anxious to hear their suggestions. Our members can also join an NIADA 20 Group. Twenty Group members share similar business models and data as well as best ideas and best practices. So, for instance, if text message marketing is a challenge, you may have someone in your group that excels at this or someone who knows someone that does. Education, training, and 20 Groups are all resources you can get through Alabama IADA membership. We can assist any dealer with becoming profitable, and also with climbing up the hill to see what’s on the horizon. So let’s recap. Good quality vehicles are hard to find. Prices are high. Banks are booking vehicles too low. It’s not just the automotive marketplace that is changing, it’s everything. The way you and I buy shop and research products is changing. If that isn’t challenging enough, everything we do – every customer we sell to – we have to exceed expectations. We have to ask for and get a five-star rating. It’s what we have to do to attract new customers and keep those we have coming back. The million dollar question is, can I do this? The short answer is, “Yes!” You are not in this alone. We will bring you answers to your questions, put resources at your fingertips, and lobby legislators and regulators on your behalf. We are here for you. Give us a call anytime at (205) 942-1000 or send an email to randyejones@live.com. www.alabamaiada.org
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INSIDE
ALABAMA
A L A BA M A INDEP ENDEN T AU T OMOBIL E DE A L ERS AS SOCI AT ION
03 ............................................ Executive Director’s Message 06........................................................................Raffle Results 08................................................................AIADA Convention 12........................ Alabama Dealers Receive National Honors 14...................................Cox Donates Car to Local Red Cross
WHAT’S NEW
Certified Master Dealer Program Next Class November 5-7 Developed in 2001, the Certified Master Dealer program is one of the industry’s most respected training programs. Recently revamped, the program is taught by NIADA’s Justin Osburn, who brings over a decade of experience in retail and Buy Here-Pay Here executive management. The next class is November 5-7. Contact Diann Flanders at 888-906-8283 or diann@niada.com for more information.
ADVERTISERS INDEX
AmTrust Financial....................................................................7 ARA GPS................................................................................. 4 DAA Dealers Auto Auction Group, LLC................................. 5 Manheim............................................................................... 11 NextGear Capital...................................................................12 Stars GPS.............................................................................IBC TrueCar..................................................................................IFC VAuto......................................................................Back Cover
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
NEW MEMBERS. WELCOME. TODD SEDAK
Auto Quest of Mobile LLC Mobile
JOE & MICHELLE HOLLY Big H Auto Clanton
NIADA HEADQUARTERS
G & H Automotive Southside
KAL AL FALIH
TROY J. GASTON
NICK KENDALL
J & S Auto LLC Birmingham
MJM Automotive Mobile
JAY MOSLEY
BOARD OF DIRECTORS PRESIDENT
DIRECTORS
TREASURER
Chad Tillery Jemison cktillery@hotmail.com
Randy Crump Jasper fas_jasper@yahoo.com
PRESIDENT ELECT
CHAIRMAN OF BOARD
Robert Case Hartselle robertsautosales1@live.com
VICE PRESIDENT
Roderick Underwood Bessemer runderwood@ anthonyunderwood.com
Todd Oden Birmingham mtomotorsinc@gmail.com
EXECUTIVE DIRECTOR Randy Jones
SECRETARY
Erek Yarbrough Pleasant Grove yarbroughbiz@yahoo.com
CHRYSLER RECALLS 1 MILLION TRUCKS
Gates Might Fly Open
Chrysler (FCA US LLC) is recalling 1,149,237 2015-17 Ram 1500, 2500, and 3500 pickup trucks equipped with a power locking tailgate and either a 5-foot
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com PRINTING
Nieman Printing
October/November 2018
GUS JERONTKIS
BOBBY & BEVERLY STRANGE
RPM Autoland Anniston Sunbelt Car Wash Services-LED Lighting Mobile
Paramount Auto Sales LLC Birmingham
STATE MAGAZINE MGR./SALES
AIADA
Equip Line LLC Roanoke
Barry Searcy Muscle Shoals Joey Bryant Sylacauga Lance Turner Anniston Willie Colvin Tuscaloosa Tim Duke Trussville Jay Saul Jasper
Randy Little Satsuma Del Miles Jacksonville Kelly Steely Hoover Chris Mundy Columbiana Jennifer Gant Harlow Arab Michael Bratton Jr. Phenix City
SAFETY WATCH
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 © 2018 by NIADA Services, Inc.
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7-inch or 6-foot 4-inch bed. The tailgate actuator limiter tab may fracture and cause the tailgate to unlatch and open while driving. Chrysler will notify owners, and dealers will repair the vehicle, free of charge. Chrysler’s number for this recall is U74.
ACCELERATE
| By GWC Warranty
SAVED TIME IS MADE MONEY
Maximize Time in the F&I Office
F&I is the final step in a long car-buying process for your customers. The quicker you can provide value, get a signature and make the sale, the better your chances are for growing your profit potential on the back end of deals. Just like every second of your time equates to dollars and cents in your pocket, wasted time in the F&I office can cost you a valuable service contract sale. Maximizing the time you spend with customers in the F&I office helps them be more receptive to the value of a service contract and helps you make the most of every sale’s final moments. With a few small tweaks to your sales and F&I processes, you can save your customer’s time while simultaneously saving your bottom line. F&I Videos in Your Showroom You can start planting the seed about a service contract sale even before a customer steps in the F&I office. If you have a monitor in your showroom, put it to use. Turn off the news and run some videos that help explain the value of a service contract. Doing so gets the customer thinking about protection from out-of-pocket repair bills and understanding why it’s important to them.
Electronic Tools Modern online and electronic tools help speed along the process to get your customers out of the F&I office just as quickly as they got into it. When customers can sign electronically, view educational information on the fly and navigate the process without leafing through papers and signing or initialing multiple places, it makes the entire process simple and painless. Self-Service Post-Sale Tools Having a service contract provider that provides customers with on-demand resources that answer common questions can help you save time in the F&I office. You can save time explaining certain details if your customers have a place to get the answers they need once they leave your dealership. Information like how to file a claim, where to find a shop and looking up coverage details are just a few examples of information your customers should be able to find on their own whenever they need it. Quality Follow Up Reminding your customers of the coverage they have, where to find answers to questions and how to utilize their service contract coverage may be common practice, but there may be ways you can do it more effectively. Tools like Covideo can add a personal touch to the routine email or phone call commonly used in sales and F&I follow ups. Giving your message a better chance to be heard only increases the likelihood that it resonates with customers and results in the experience you desire for them.
ASSOCIATION NEWS ASSOCIATION NEWS
RAFFLE RESULTS
Special Membership Tickets
NON-DEALER HALL OF FAME AWARD
Missy Rogers
Missy Rogers with Microbilt Corporation won AIADA’s Non-Dealer Hall of Fame award. Missy Rogers: “Thank you so much for this honor! Words cannot express how grateful I am and honored. I was totally shocked – seeing it makes it a little more real. All of the members of the AIADA have always had a special place in my heart and it’s a conference I look forward to every year because it is family!”
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Special Membership Ticket Results at 2018 AIADA Convention Money-Winning Tickets: • 1st ticket drawn – #375 won $200 – Roger Fields, sold by Judy Benton. • 5th ticket drawn – #092 won $1000 – Auto Max USA, sold by Jerry Giles. • 50th ticket drawn – #241 won $200 – Charles Moring, sold by Charles Moring. • 75th ticket drawn – #095 won $100 – Mark Jackson, sold by Jerry Giles. • 100th ticket drawn – #360 won $200 – Joe Holley, sold by Chad Tillery. • 125th ticket drawn – #270 won $100 – Jerry Giles, sold by Jerry Giles. • 150th ticket drawn – #386 won $200 – Jacob Ellis, sold by Judy Benton. • 175th ticket drawn – #257 won $100 – Lynn Whitehead, sold by Todd Oden. • 200th ticket drawn – #341 won $200 – Spence Thrash, sold by Chad Tillery. • 225th ticket drawn – #053 won $100 – Chance May & Robert Case, sold by Robert Case. • 250th ticket drawn – #110 won $200 – T & M Wholesalers, sold by Tim Duke. • 275th ticket drawn – #131 won $100 – Jimmy Henry Used Cars, sold by Tim Duke.
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• 300th ticket drawn – #305 won $200 – Scott Briggs, sold by Tim Duke. • 325th ticket drawn – #071 won $100 – Price Auto Sales, sold by Mark Crump. • 350th ticket drawn – #036 won $200 – The Mule Trader, sold by Chad Tillery. Last 10 Tickets Drawn Out: • Ticket # 022 – Auto Auction Montgomery, sold by Chad Tillery. • Ticket #344 – Maryann Pridgen (Door Prize Ticket). • Ticket #358 – The Tillery’s (Door Prize Ticket). • Ticket # 283 – Dewey Barber, sold by Tim Duke. • Ticket #395 – Pat Graves, sold by Pat Graves. • $300 – Ticket #059 – Robert & Tina Case, sold by Robert Case. • $600 – Ticket #144 – Mark Burgholzer, sold by Judy Benton. • $800 – Ticket # 097 – Jeff Donaldson, sold by Jerry Giles. • $2,000 – Ticket #038 – Brad Blankenship, sold by Chad Tillery. Grand Prize of $10,000: Ticket #399 – Pat Graves of LR Auto Sales, sold by Pat Graves. Top Ticket Sellers: Tim Duke with 102 tickets, Chad Tillery with 36 tickets, Todd Oden with 34 tickets, Jerry Giles with 28 tickets and Judy Benton with 24 tickets.
www.alabamaiada.org
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ASSOCIATION NEWS |
RACING TO THE FINISH LINE
CONVENTION
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ASSOCIATION NEWS |
By Peter A. Salinas
ALABAMA DEALERS RECEIVE NATIONAL HONORS
Randy Crump & Jennifer Harlow
Two longtime Alabama IADA members thrust the association into the national spotlight this summer when they were selected for two of the most prestigious honors NIADA bestows. Randy Crump, owner of Friendly Auto Sales in Jasper, Ala., was the 2018 recipient of the NIADA National Quality Dealer of the Year award. Jennifer (Gant) Harlow, owner of two A&D Motors dealerships in Arab and Baileyton, Ala., earned the NIADA and Cox Automotive National Community Service Award, which included a $10,000 check to the charity of the dealership’s choice. “We are so proud that these two deserving dealers from our state earned these awards,” said AIADA executive director Randy Jones. “Alabama is now tied with Texas as the state with the most National Quality Dealer awards at seven.” Past Alabama IADA recipients of the National Quality Dealer award include Berford Brown from Trussville in 1981; Charlie Morris from Tuscumbia in 1982; Larry Hillsman from Albertville in 1984; H.M. Freeman from Gadsden in 1998; Anthony Underwood from Bessemer in 2003; and Paul Claborn from Albertville in 2010. “I had no idea I was going to win. If I had I would have worn a better suit and shaved a little closer,” Randy said with a laugh. Crump, a 1990 graduate of Northwood University in Midland, Mich., became the used car manager at his father’s dealership, John Crump Mazda in Jasper, shortly after graduation. He had been steeped in the automotive retail business as a child. At the young age of 7 years old, Randy swept floors and emptied trash cans at John Crump Toyota. “I had a good understanding of the business and a fabulous education at Northwood,” Randy said. “I learned the importance of hard work and dedication early on and it’s helped me throughout my career.” Friendly Auto Sales opened in 1999 as a Buy Here-Pay Here dealership in Jasper, not too far from the family franchise operations. Today the dealership sells about 20-25 units a month, and has a solid, growing portfolio. The NIADA Quality Dealer of the Year award goes to dealers that operate efficiently and profitably. Randy Crump attributes much of his success to his membership in a 20 Group. “In fact, I just got back from my NIADA 20 Group meeting the other day,” Crump said. “I’ve been a member for nearly 15 years now, and I can’t tell you how much it has helped my business.” He said the personal and professional relationships have helped him grow his business, and he’d recommend the program to just about any dealer.
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“I guess I wouldn’t recommend it to a dealer operating across the street from me,” Crump joked. Randy Crump’s has been active with Alabama IADA since he became a member. He noted he’s been very pleased with the current leadership and the goals the association has set for continued improvement in services and membership growth. “We’re at about 800 members statewide, and we’d like to get that to 1,000,” Crump said. “Randy (Jones) and his team are working hard every day to make that happen. If you have a question or concern about your business, they will get you an answer quickly.” Randy Jones said Alabama IADA is continuously running a membership drive. “We rely on people like Randy and Jennifer to be ambassadors for our association,” Jones said. “In fact, we rely on all of our members to send us contacts of people they feel would benefit from association membership.” Randy Crump said he’s been especially impressed with the level of importance both NIADA and its affiliate state associations have placed on lobbying and legal and regulatory efforts on behalf of members. “The NIADA National Leadership Conference in the past several years has garnered attention from national and state legislators and regulators,” Randy Crump said. “We need that kind of representation, and we’ve been fortunate to have gotten it from leadership at the national and state levels, and especially for us in Alabama in Montgomery.” Jennifer Harlow of A&D Motors echoed that sentiment. She said the efforts on behalf of members by the leadership of the state and national IADAs cannot be understated. “For what dealers pay in dues, we’re getting a tremendous value,” she said. “Just on the basis of our Alabama IADA member benefit coupon book, you get what you paid in back 10-fold. We can and will increase membership. All we have to do is get each member to sign up one new member. It’s not because dealers out there don’t care, it’s because they are not informed about what the IADA does on their behalf.” A&D Motors’ two locations sell a combined 30-40 units a month and are predominantly Buy Here-Pay Here. The operations have 13 employees. Harlow, who just remarried in June, said it’s been a whirlwind of a summer. Running the dealerships, managing the people, earning the community service award, her philanthropic endeavors, and getting married have tested her durability. “It’s been nonstop, but it’s all been wonderful,” she said. Founded in 1992 by her late husband, Don Gant, A&D Motors has been profitable and a real boon to the community. Harlow took over the dealership in 2000 and worked closely with her husband until he passed away in 2014.
Jennifer was recently named to the Alabama IADA board of directors. While the dealerships have been members of the association since the outset, this is the first time she’s been on the board. “I’m really looking forward to it,” she said. “I’ve also joined an NIADA 20 Group, and I’ll attend my first meeting later this year.” Jennifer said one of the dealership’s core values is to make a difference in people’s lives, and she’s made every effort to demonstrate that to the community. “Our community has one of the highest rates of poverty in the county,” she said. “We always think about what we can do for the people of the towns in which we live and work.” One of the programs she supports is the “Backpack for Kids Program.” Through grassroots fundraising with raffles, benefits, and food drives, the program, which she helped to spearhead, purchases backpacks for students who need assistance. Backpacks are filled on Thursdays with food that can be consumed over the weekend. The students return the backpacks on Mondays, and the process starts over. “At Christmas time, we provide gifts for children and extra food such as turkeys and hams,” Jennifer said. The dealership has been a big supporter of the Parkside Outreach
Program. This program is designed to assist individuals and families who have financial or other needs. Recently, the program raised $20,000 to assist a family whose sole provider suffered an illness. “It’s so good to be able to help, and we make every effort we can to do just that,” Jennifer said. Randy Crump has also been a big supporter of the community. His wife, Barlene, taught fifth grade at Valley Junior High for 25 years, and the dealership was keenly aware of the needs of the school. It helped that the Crumps lived next door and that their sons attended the school. “We assisted the school in building a ball field with bleachers,” Randy Crump said. He had also purchased a motel as a business investment but made sure the local homeless coalition had access to the facility through a privately funded program. “We’ve given away cars to families that needed them,” he said. “This is our town, and we’re proud to live here, and see it as our job to give back.” Both Harlow and Crump were very surprised by the attention they’ve gotten as a result of their respective awards, but they are proud to represent Alabama IADA and the NIADA, and hope their stories attract new members.
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INDUSTRY NEWS
EMERGENCY VEHICLE DONATED TO LOCAL AMERICAN RED CROSS
Cox Automotive Presents Car on Behalf of Randy Crump
Generous, genuine, determined, humble, and funny. Those were the words Jasper, Alabama, mayor David O’Mary, AIADA executive director Randy Jones, and Randy Crump‘s wife, Barlane, used to describe Randy Crump. Randy has owned Friendly Auto Sales since 1999. After 19 years in the business, he was named the 2018 National Quality Dealer of the Year at the NIADA Convention and Expo for his commitment to community, his clients, and the industry. He comes from a family whose roots are deeply entrenched in the auto industry. Beginning with his great-great uncles and working its way through every generation since, Randy has car sales in his blood. From a young age Randy worked at his father’s Mazda dealership. “I was seven years old when my automotive career started,” Randy said. “I worked at my father’s car lot sweeping the shop for 25 cents an hour. I worked my way through all departments, and then worked there through the co-op program in high school. After college, I worked at his Mazda store until 1999.” From there, he decided to make his own way in the auto world and open his own dealership. Unlike his father’s business, Randy opened a Buy Here-Pay Here lot. Over the past 19 years, he has been dedicated to making sure people in Jasper have a reliable source of transportation and tailored financial terms based on their ability to pay. Randy treats each person who walks through his door as if they were family. These qualities aided in Crump’s recognition at NIADA. Since its inception, the National Quality Dealer of the Year has come to embody all that it means to be a dealer who is committed to quality, excellence, outstanding customer service, and to making their community a better place for everyone. Randy and his team check off each of those boxes every day. “I like being from a small town. The best thing for this community is the ‘mom and pop’ type businesses that are established here,” said Randy. “Friendly Auto Sales is an example. We buy everything we can in my hometown. We purchase all parts for our vehicles locally instead of turning to the Internet or other means. When we spend money here, then other businesses spend their money here, too. That is what keeps a small town going.” Through Cox Automotive’s sponsorship of the National Quality Dealer Awards Banquet, an emergency response vehicle was to be donated on behalf of the evening’s winner. On Thursday, September 13, that emergency response vehicle was shipped to Friendly Auto Sales for Randy to hand over the keys to Katie Comer, director of development for the American Red Cross, and Richard Tucker, fleet and facilities coordinator for the Birmingham chapter of the American Red Cross. The day began with Randy’s team, NextGear Capital team members, Cox Automotive team members, and volunteers from the American Red Cross coming together to assemble 150 comfort kits. Comfort kits contain a wide array of personal hygiene items to be given to those who have been displaced from their homes and put in temporary housing. The local American Red Cross volunteer at the event had responded to a housefire earlier in the week. While the family lost everything, she was able to provide the bare necessities in their time of need. After the comfort kits were assembled, Cox Automotive director of industry events Lori Kahre opened the donation ceremony with a few words to welcome guests, thank everyone for battling the heat to show their support, and spoke about how Randy and his team’s commitment to community service align with those of Cox Automotive and NextGear Capital. Katie Comer shared how critical the emergency response vehicles are to help carry out the American Red Cross’ mission: “They serve as a beacon of hope. These emergency response vehicles are the first
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many community members see when natural disaster strikes.” This Chevy Equinox is the sixth emergency vehicle donated to the American Red Cross through a Cox Automotive company. Since 2015, Cox Automotive has donated more than $750,000 to the American Red Cross in support of disaster relief. Randy thanked everyone for their support and spoke to his commitment to clients and community: “I’m honored to be able to further support the community through an emergency response vehicle that will serve as an invaluable resource for the American Red Cross and their local disaster relief mission.” Jasper mayor David O’Mary said, “Anytime you have a business person that can distinguish themselves in that fashion, at that level, brings nothing but positivity to our city.” The day ended with a catered lunch for Randy, his team, and his guests provided by Cox Automotive as a part of the National Quality Dealer sponsorship.