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V I S I T U S AT W W W. A L A B A M A I A D A .C O M
INSIDE
04........................................................................... DMV News 06................................................ AIADA Goes to Washington 08.............................................................. Making More Sales 09............................................. Dealer Spotlight: John Cuellar 12.......................................................................CFPB Changes 15..........................................................Security Starts Within 16.............Strategic Ways to Drive Leads with Social Media 22..........................................................Compliance Overdrive
WHAT’S NEW
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
NEW CPO CHANNEL AND USED CAR WEEK
NIADA.tv just introduced a new channel devoted to CPOrelated programming, including marketing strategies and value perception of CPO. In addition, the site now offers 19 education and training sessions from the recent Used Car Week Conferences. Check out NIADA.tv for these videos and much more!
ADVERTISER’S INDEX
Ace Motor Acceptance...........................................................5 ADESA...................................................................................IFC AutoZone .................................................................................9 ARA GPS.................................................................................. 3 Black Book............................................................................ IBC Car Rental Business...............................................................14 Manheim ..........................................................................10, 11 Manheim Pennsylvania..........................................................13 NextGear Capital....................................................................12 STARS GPS............................................................................ 15 VAuto....................................................................... Back Cover
OFFICE
The Automotive Group Mobile
Los Reyes Auto Sales LLC Montgomery
Unlimited Motors Montgomery
Louis Birdsong Paul Sides, Troy Dennis, Lee Gifford Guardian Auto Sales Anew Auto Sales LLC Florence
NIADA.tv
Loyd Gray Motors Foley
Billy Williams
Billy Williams Auto Sales Inc. Phoenix City
J & S Cars for Less LLC Anniston
Birmingham
Hugh Fuller
Leroy Jackson Jaxx Auto Sales Montgomery
Mitchell Classics LLC Montgomery
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
Joe Dismukes
Justice Properties Inc./DBA Warbama Mobile
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
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
Todd Oden Birmingham
Rex Canterbury Fayette
Vice President Chad Tillery Jemison
NIADA HEADQUARTERS
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
STATE MAGAZINE MGR./SALES
Tim Duke
Joe Smith
EDITORS
Jay Saul
Chris Mundy
Randy Crump
Randy Sheffield
SENIOR ART DIRECTOR / PRODUCTION MANAGER
Larry Morris
Chris Hadder
PRINTING
Reed Ingram
Chris Mullinax
Kelly Steely
Ricky Young
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Alabama Independent Automobile Dealers Association is published bimonthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of AIADA or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc.
Muscle Shoals Sylacauga Anniston
Tuscaloosa Huntsville Mobile
Birmingham
Troy Graff • troy@niada.com
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com
Jasper
MAGAZINE LAYOUT & GRAPHIC ARTIST
Christopher Hanley • chris@niada.com
Jasper
Christy Haynes • christy@niada.com
Birmingham
Nieman Printing
Montgomery
Hoover
Tuscaloosa Florence
Bessemer Satsuma
Pleasant Grove Oxford
Montgomery Chelsea
Thomasville Jasper
Hoover Boaz
Darrell Pettie Pleasant Grove
www.alabamaiada.com
December 2016 / AIADA
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ASSOCIATION NEWS
FROM THE PRESIDENT ELECT Let’s Grow!
I want to start by saying “thank you” to our large delegation of members who recently attended the NIADA National Leadership Conference & Legislative Summit in Washington, D.C. Our AIADA and Southeast Region 2 were well represented. These type events make me proud to be from such a great state with so many great dealers. During a recent board meeting, I was honored to be asked to be the chairman of our newly formed membership growth committee. The other committee members are Roderick Underwood, Erek Yarbrough, Robbie Case and Chris Mundy. As members of this committee I feel we have a duty of care, loyalty and obedience to our membership.
I feel that we must constantly adjust the methods we use to reach for and gain new members. Membership is defined as being part of a group. Currently we are the sixth largest association in the nation. Our goal as a committee is to reach the 1,000 member mark as soon as possible. I am asking for your help. I am positive that every dealer reading this article knows at least one dealer who is not a member. I need every member to reach out and ask that dealer to join. If you are as proud of our association as I am, this will be an easy task. Individually we struggle to be heard. Collectively we cannot be ignored. We need our membership to grow so our voices can be heard in Montgomery and Washington, D.C. This is your association. Let’s grow! Honored to serve, Todd Oden, President Elect
DMV NEWS
BY LISA BLANKENSHIP
DMV NEWS Common Issues Regarding Title Applications
The Motor Vehicle Division staff frequently receives inquiries regarding rejected applications. This article briefly addresses the most common issues that delay the issuance of certificates of title. 1. Certificate of Title vs. Title Application. The name, mileage, lienholder and date of purchase in the title assignment must match the name, mileage, lienholder and date of purchase on the application for a certificate of title. 2. Federal Truth in Mileage Act of 1986 (TIMA). The purpose of the Federal Truth in Mileage Act of 1986 is to limit odometer fraud and ensure that the buyer of the motor vehicle knows the true mileage of the vehicle. The transferor (seller) of the motor vehicle is required to provide the transferee (buyer) a written certification of the vehicle’s mileage registered on the odometer in connection with the transfer of ownership. In keeping with the provisions of TIMA, the same person or representative of the same company may not sign the odometer certification as both the buyer and seller. 3. Affidavit of Correction to a Document to Support an Application for a Certificate of Title. When submitting an Affidavit of Correction to a Document to Support an Application for a Certificate of Title, form MVT 5-7, please ensure both the buyer and seller sign the document. Too often, this document is submitted without signatures or signature notarization. If the buyer and seller sign at different times, each signature must be notarized.
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4. Out of state transfers. Please ensure one of the boxes in the title assignment of the certificate of title pertaining to the odometer certification is checked before submitting paperwork to the department. 5. Title assignments. Each title assignment must be completed in detail at the time of transfer to include the purchaser’s name and address, date of sale, buyer(s) and seller(s) signatures, odometer reading and dealer license number. When all available title assignments have been completed, an Alabama Re-assignment Supplement (MVT 8-3) must be used and can only be initiated by an Alabama dealer. This form is printed on secure paper and can only be obtained from the Alabama Independent Automobile Dealers Association. The printed name in the title assignment area must be the name of the individual signing the certificate of title in the assignment area, not the company. Additionally, if the owner’s name contains Inc., LLC, LLP, etc. this needs to be included in the name in the assignment area. 6. Name Requirements. The owner’s name must be in agreement on all title documents. Any variance(s) in the owner’s name between title documents will require that the owner provide an affidavit attesting to the variance(s). For example, if Bill Jones is the name on the title application, but the power of attorney lists the name as William Robert Jones III, an affidavit attesting to the variance would be required. 7. Supporting documents. Please ensure you have the correct supporting documents submitted with title application packages before they are mailed to the department. Title Application packages must be submitted in the following order: A. Remittance Advice.
B. ETAPS Title Application. C. The manufacturer’s certificate of origin or certificate of title properly assigned to the owner. D. Other supporting documents, such as reassignment forms, bill of sale and power of attorney. 8. Secure POA. The Secure POA (MVT 8-4) can only be used when the title is physically held by lienholder or has been lost. This form is printed on secure paper and can only be obtained from the Alabama Independent Automobile Dealers Association. 9. Affidavits. Please make sure the same affidavits contain all current business names. To prevent future rejects, the dealer’s name (legal and DBA) on the vehicle MSO or title reassignment must match the name in the MVD systems (ETAPS and Dealer License). Ensuring that paperwork is submitted accurately by addressing these areas of concern will ensure certificates of title are issued in a timely manner upon the first submission of paperwork. Please contact the Motor Vehicle Division at dealerlicense@revenue.alabama.gov or (334) 242-9000 if you have additional questions.
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oF Tip THE Month
Using Social Media to Boost Sales: There is no better way to target a specific audience than social media. Facebook, Twitter, Google+, YouTube and LinkedIn are all great ways to find customers looking to purchase a car. A dealership should invest at least one to two hours per day into social media to increase sales. This means daily posting, responding to potential buyers and purchasing targeted ad campaigns to solicit potential buyers. Like most advertising not everything will work, but being consistent and measuring your success will certainly increase sales.
AMAC offers financing to qualified BHPH dealers looking to expand their business. What’s included:
Funding for Receivables You Collect or We Collect Floorplan Lines Simplified Insurance Tracking Reports Package Training Bulk Roll in for Existing Contracts Cash Flow from Payments
Ace Motor Acceptance Corp. (AMAC) specializes in supplying capital to BHPH dealers. Our BHPH in a Box™ program provides capital to fund contracts and floorplan lines of credit to purchase inventory. By offering both, AMAC improves your cash flow by allowing you to pay off your floorplan when the deal is funded. We understand what it takes to grow your business. AMAC allows you to maintain your customer relationship, leading to increased repeat and referral business. Instead of selling off your portfolio or doing an expensive payment stream, AMAC has a superior program that allows you to retain strong monthly cash flow from customer payments. We approve you, not your customer. The BHPH in a Box™ program is the most complete program in the industry. To learn more call AMAC today at 704-882-7100 ext. 7509.
Acemotoracceptance.com
704-882-7100 ext. 7509
ASSOCIATION NEWS
BY RANDY JONES, AIADA EXECUTIVE DIRECTOR
AIADA GOES TO WASHINGTON Meeting with Legislators about Key Issues
In September, members of the Alabama Independent Automobile Dealers Association joined dealers from across the nation in Washington D.C., for NIADA’s National Leadership Conference and Legislative Summit. We focused on two issues. Automotive Recalls The forming of NHTSA: In 2009, approximately 30,000 lives were lost on our nation’s highways. Although that number reflects a 28 percent decrease in traffic fatalities since 2006, much can still be done to address this issue. Traffic crashes are the primary cause of debilitating injuries in the United States and the number one killer of Americans under the age of 34. In addition to staggering emotional costs, the annual economic loss to society due to these crashes in terms of worker productivity, medical costs, insurance costs, etc., is estimated at more than $230 billion. Clearly, there is a need for dramatic improvement in motor vehicle safety. Getting unsafe vehicles off the road is integral to improving safety and saving lives. The National Traffic and Motor Vehicle Safety Act (originally enacted in 1966 and now recodified as 49 U.S.C. Chapter 301) gives the National Highway Traffic Safety Administration the authority to issue vehicle safety standards and to
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require manufacturers to recall vehicles that have safety-related defects or do not meet federal safety standards. Since then, more than 390 million cars, trucks, buses, recreational vehicles, motorcycles, and mopeds as well as 46 million tires, 66 million pieces of motor vehicle equipment, and 42 million child safety seats have been recalled to correct safety defects. What is a safety-related defect? The United States Code for Motor Vehicle Safety (Title 49, Chapter 301) defines motor vehicle safety as “the performance of a motor vehicle or motor vehicle equipment in a way that protects the public against unreasonable risk of accidents occurring because of the design, construction, or performance of a motor vehicle, and against unreasonable risk of death or injury in an accident, and includes nonoperational safety of a motor vehicle.” A defect includes “any defect in performance, construction, a component, or material of a motor vehicle or motor vehicle equipment.” Generally, a safety defect is defined as a problem that exists in a motor vehicle or item of motor vehicle equipment that: A. Poses an risk to motor vehicle safety, and B. May exist in a group of vehicles of the same design or manufacture, or items of equipment of the same type and manufacture. An article by David Kiley in Fortune called “The Takata Airbag Recall Is Now a Full-Blown Crisis” indicated only 8 million cars are fixed out of the 70 million recalled. In addition, U.S. regulators have estimated the fixes could take two years to complete. Now some math: · 70 million vehicles needed recalls on Takata airbags alone. · 8 million recalls fixed on Takata airbags. · 68 million vehicles still needing to be recalled for Takata airbags. That is not counting all the other types of automotive recalls! The stopping of sales on all vehicles with open
recalls would affect the used car owner, the used car buyer, the used car dealer, the auctions, floor plan companies and most our current vendors. As you can see, this would have a devastating effect on the automotive industry. Alabama dealers, along with dealers from across America, developed a game plan. On September 26, 2016, we all headed for Capitol Hill to urge Congress to reject the call for a complete ban on sales of vehicles with open recalls. The Consumer Financial Protection Bureau In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the Consumer Financial Protection Bureau, passed. The CFPB consolidates most federal consumer financial protection authority in one place. We set our sights on Senate Bill S.2663 – Reforming CFPB Indirect Auto Financing Guidance Act. You can view the bill here: https://www. congress.gov/bill/114thcongress/senatebill/2663/text. We needed to get the bill out of the Committee on Banking, Housing and Urban Affairs. We spent the next couple of days on Capitol Hill focusing on recalls and S.2663. During this time we worked on relationships and showing how important
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the independent dealer is to our economy. First we met with Congressman Mike Rogers. We shared our concerns and needs with him and his staff. Congressman Rogers has made a huge impact on getting our voice heard. Next we met with my good friend Congressman Robert Aderholt and his staff member Chris Lawson. Congressman Aderholt has helped us in the past and is always a phone call away. He understood our recall needs and is fully against the controls from the CFPB. At Congressman Gary Palmer’s office, we met with staff member Nonie Brown. She took her time understanding the recall needs and our problem of too much regulation. She said Congressman Palmer’s office will work with us on our needs. Next we went to Congressman Bradley Byrne’s office. We met with Chad Carlough and Miriam Fry. They surprised us by knowing as much about our needs as we did. They each spent a long time going over ways to get more out of Washington. It was very helpful! We also went to Congresswoman Martha Roby’s office, where we met with staff member Jessica Hamilton. Again we covered all our needs and asked for her help. She was very responsive to our needs. We spent a long time with Senator Richard Shelby and his chief of staff, going over ways to get S.2663 to the Senate floor with a bipartisan vote. Senator Shelby is one of the most powerful legislators in Washington, and a good friend of ours. The next morning we started with Senator Jeff Sessions’ office. We met with Chris Jackson and Drew Hudson, again very open to putting a stop to the overregulation of small business. Senator Sessions will vote yes on S.2663, and they pledged their support. Next we met with Congresswoman Terri Sewell.
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Even though Congresswoman Sewell came off the floor to meet with us, she never got in a hurry. She wanted to understand our needs. It was meetings like this that made our trip to Washington, D.C., a huge success. Next we met with Congressman Mo Brooks. He spoke at last year’s convention and made a lot of new friends. His wife, Martha, and the Congressman took us on a private tour of the Capitol building after hours. We all are very thankful to them for taking time out of their evening to show us around. Their stories about different things happening on Capitol Hill were captivating. Congressman Brooks spent a long time with us showing the details of getting bills passed. He is a good friend of ours and will help us with all our needs. Plus he will vote to keep regulations off small business and spend our tax dollars wisely. We also had meetings in which we listened to regulators tell us how their programs worked. We got a chance to tell them how many of these regulations are choking the small business and the automotive industry. We told the regulators this was hurting the consumer and would eventually limit the choices of vehicles a person could get financed. Our economy is not going to grow – our communities are going to suffer. We made it clear Washington needs to end all the bad regulations that stop us from creating more jobs and making it harder to reach the American dream. The CFPB is putting downward pressure on all small businesses, which are already having a hard time making ends meet. The CFPB is putting more obstacles in the way of consumers, which is not helping the consumer but makes it harder on all of us. Whether it’s taxes and/or regulations, Washington needs to understand small business is the backbone of America’s economy. The National Leadership Conference will set
the legislative agenda for 2017. It shows our strength in numbers of active dealers, our interest in how our government is run and our concern for America. This year’s National Leadership Conference had even more impact on Washington, D.C., than past years. I would like you to join me in giving a special thanks to everyone listed below, who took the time to travel to D.C. They studied the bills that needed our support and attended the many meetings to learn the ins and outs of Washington politics to help reach our goals. These people walked for miles, up and down stairs, getting up early and staying out to meet with our legislators and regulators. They left their families and businesses behind to help us make the federal government see the following: We do care about our federal government and we want America to be the best nation in the world – “One Nation Under God, with Liberty and Justice for All.” We made it clear to everyone Alabama is still a place where the American dream comes true!
THANKS FOR ALL YOUR SUPPORT! PAUL CLABORN WHOLESALECARS.COM, ALBERTVILLE, ALA. POKEY BRIMER POKEY BRIMER AUTO, OXFORD, ALA. TODD ODEN MTO MOTORS, BIRMINGHAM, ALA. CHAD TILLERY ELLISON AUTO SALES, INC., JEMISON, ALA. ROBBIE CASE ROBERT’S AUTO SALES, HARTSELLE, ALA. ANTHONY UNDERWOOD ANTHONY UNDERWOOD AUTOMOTIVE, BIRMINGHAM, ALA. WILLIE COLVIN COLVIN AUTO SALES AND SERVICE LLC, TUSCALOOSA, ALA. RUSS SAPP ABC AUTO AUCTION BIRMINGHAM, MOODY, ALA. EREK AND TAMARIA YARBROUGH FIRST CLASS AUTO SALES LLC, PLEASANT GROVE, ALA. HENRY MULLINAX MULLINAX AUTO SALES, INC, OXFORD, ALA.
December 2016 / AIADA
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SALES MATTERS
BY THE BRICK AND MOTOR
MAKING MORE SALES IN TODAY’S MARKETPLACE Podcast: Sales Tool of the Future
Is your business a little off from years in the past? Does your buyer know who you are? Does your buyer know your dealership? Do you really know your new buyer? Well, they want to know all about you! Millennials are known for learning as much as possible about the dealer, the vehicle and the dealer’s reputation. Who’s better to tell about you and your dealership than yourself? And it’s easy – you can do it with your phone! What is a podcast? A podcast is an episodic series of digital media files a user can set up so that new episodes are automatically downloaded via web syndication to the user’s own local computer or portable media player. Simple translation: It’s a “radio show” on the Internet. If you own a smartphone you have access to either GOOGLE Play or iTunes media platforms. People access the podcast through these two media platforms and listen to the content they select. Why is this important to you? It’s one of the ways marketing of your business will be done in the future if you want to continue selling to millennials. This of course won’t be the only platform for connecting to them, but it will absolutely be one of them. With the advent of Apple Play in cars, millennials and other consumers have the option to have all of their “on demand” content
at their fingertips. Radio will have to compete head to head with on demand content. I’ll let you decide who the winner will be. Sure, radio is still effective in a geographical location but how far do the radio waves reach? The Internet is everywhere. ITunes recently announced their 1 billionth download. That’s with a “B,” billionth. Considering the world’s population is around eight billion, these numbers are significant. One key of marketing that will always be true is “go where the people are.” This is where the people are and increasingly will be in the future. Millennials want transparency, engagement and genuine salespeople. Gone are the days of salesmen with their gold watches, pinky rings and hair you could use to grease the wheel bearings of a Boeing 747. They don’t want to be sold. They want you to be genuine, share the information with them they need to make a decision and then ask them to buy. Hard marketing is marginally effective, difficult to measure and expensive. People don’t want to be force-fed the information anymore. The successful salesmen and dealerships recognize that service, honesty and transparency are the sales tools of the future. Here’s where the Brick and Motor podcast comes in. It tells a story – our stories, our failures and our successes. How we made it from nothing to something and what makes us proud to be in an amazing country and to have the opportunities we have if we will only set our minds to doing something great. The people interviewed will be the automotive professional owners and operators. Dealers, finance people, insurance people, warranty people, detailers, and anyone who’s had to build their business from the ground up. I started with very little money, a lot of blind ambition and a financial fire breathing dragon chasing me. I had to do something about my
This is being offered specially to members of AIADA and is an added benefit you get for free with your membership, thanks to your AIADA leadership. poor financial status and I discovered a passion in the process. These interviews will connect the interviewees to their customers, and their customers to them. I’d like to invite any dealer or owner operator of an automotive related business who would like to use this platform to promote their business an opportunity to be on the podcast to tell their story. This is being offered specially to members of AIADA and is an added benefit you get for free with your membership, thanks to your AIADA leadership. If you would like to learn more about how you can leverage this platform to benefit your business, please contact us at Info@thebrickandmotor.com or visit TheBrickAndMotor.com.
PRODUCTS & SERVICES
DMS FOR INDEPENDENT AND BHPH DEALERS GOES LIVE
Web-Based Solution Tailored for Independent Dealers
After more than a year of dedicated development and collaboration with dealers, DealerSocket officially released iDMS at the company’s User Summit, Oct. 3-5, in San Antonio, Texas. iDMS marks the first of several upcoming product launches for DealerSocket’s full-scale, integrated technology platform tailored to independent dealers. “Our independent platform’s seamless integrations will provide tremendous flexibility
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AIADA / December 2016
for each product suite, including iDMS,” vice president of product strategy Jennifer Lee said. “Once all our independent products have launched on the platform, users will be able to access tools based on their job role, rather than by product line.” iDMS is a highly integrated solution including flexible accounting, powerful desking, an integrated lender portal, integrated service shop management, unsurpassed workflow and queuing processes, and robust reporting analytics, the company said. “One of the most useful benefits of iDMS is its scalability for all sizes of success,” director of product and engineering Jeff McCurry said. “This platform can help small to midsized dealerships get to the next level, as well as allowing larger stores to reach maximum efficiency in their operations. iDMS will scale as your dealership grows, so you will not be faced with future software decisions.” The new solution merges the features of FEX DMS and AutoStar Solutions – along with
adding some original features. Features include: • 100 percent web-based, cross-browser, cross-platform functionality, with a special focus on mobile devices so dealers can access iDMS in the F&I office, on the dealership lot, or while running errands. • Buy Here-Pay Here decisioning and integrated lender portal, so dealers can finance a deal without leaving the platform. • Real-time accounting integration with QuickBooks, as well as flexible general ledger account creation and mapping, which gives dealers granular control of GL transaction accounting. • Comprehensive desking solution for both Buy Here-Pay Here and independent retail dealers. • Robust collections, such as stacked promise-to-pay and dynamic queuing functionality. • Multitasking capabilities through an extra communication module at the bottom of each screen.
www.alabamaiada.com
DEALER SPOTLIGHT
JOHN CUELLAR International Auto
Wholesalers in Bessemer, Alabama John Cuellar was born in Colombia on Valentine’s Day, 1976. He is a successful businessman and devoted family man married to Claudia for 18 years with three children. While living in Colombia, John served in the military as a Marine and served as a bodyguard for former Colombian president Andres’ Pastrana. John moved to the United States in 2001 and began his career as a used car salesman at Brickell Motors in Miami, Florida, where he worked for five years. In 2006 he and his family moved to Birmingham, Ala., to join Yerby Bauer Auto Sales. In 2011 John started at Jim Burke Automotive in Birmingham. He worked in sales for a while and later transferred into management.
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In 2013, John moved to Landers McCarty Dealership to join the management team. It was here he began to dream of owning his own dealership. It soon came to pass. The dream was becoming real, and International Auto Wholesalers was in the works. Later that year, John decided it was time. He devoted all his efforts to bring the Birmingham area a dealership like none before. His dream was ready to give birth. There were lots of labor pains – finding the best location, finding the best sales team, finding the best lot guys, the best of everything. It seemed like forever, but finally, after all the blood, sweat and tears, John’s dream gave birth to International Auto Wholesalers in Roebuck, Ala. (Northeast Birmingham). With a big smile on his face and total support from his family, John Cuellar, a kid from Colombia, and his staff, started the long road of building his legacy. In November 2015, John took the opportunity to purchase the former Midfield Motors lot
located in Midfield, Ala., and began the next chapter of his business career. International Auto Wholesalers is a proud member of the Alabama Independent Automobile Dealers Association, a member of the Better Business
Bureau and an NIADA Certified Pre-Owned dealership. John is proud to be known as the #1 Hispanic dealership in Alabama. It’s John’s vision and desire to provide excellent customer service to all of his customers.
December 2016 / AIADA
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MANAGEMENT MATTERS BY SCOTT BERGERON
CRM TECHNOLOGY VS. CRM MINDSET It's a Tool, Not a Crutch
Have you ever wondered how dealerships sold in volume before CRMs, before the Internet, before websites and Internet leads? I consider myself an old-school car guy who
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knows how to use technology. I still believe there’s a place in this business for pen, paper and all the high-tech programs that make our lives easier. I started my career in the ‘80s and was lucky enough to work for a top 100 nationally-ranked dealership. We sold 500 vehicles, both new and used, per month. We did it directing our focus on advertising, ordering correctly, training, and a CRM mindset. In other words, we wanted all the information and we collected as much as we could. It wasn’t efficient compared to the tools we have now, but it worked because everyone was on the same playing field. Technology today works like a champ, when
it’s used as a tool and not a crutch. There are more ways than ever for potential customers to connect with a dealership. Online shopping is, by all estimations, the starting line for over 80 percent of all transactions. In the dealership, the CRM software is used to track, assess, notify and persuade consumers. It also lets you track the steps of the sale as well as who’s performing on your sales floor, and who needs help. We’ve all heard the phrase “garbage in, garbage out.” Technology is only as good as the information that goes in, and the process to get the information back out to reconnect with is where most dealerships lose deals. I’ve been in dealerships where their CRM reported a 100 percent closing ratio. They must have some pretty great salespeople, or they’re only entering their sales into their CRM, and forgetting about the other 80 percent of unsold prospects. And even if the leads automatically populate into the CRM, it doesn’t do any good unless someone is following up. CRM technology is limited without a common sense process within the dealership to make sure everyone gets touched, whether they’re Internet leads or face-to-face prospects. One thousand online leads and 300 visits in a month should show as 1,300 prospects, less the conversions to sales, which likely won’t show a 100 percent closing ratio. I’ll take bad news that’s accurate any day over grossly inflated closing ratios. An article on Adexchanger.com elaborates on the importance of dealership CRM as an all-encompassing relationship tool, not just technology, concept. Headlined “CRM: A Philosophy That Goes Beyond Data, Technology and Channel,” the article by digital specialist Mayur Gupta notes, “CRM software is not enough… Establishing a lifelong customer relationship and loyalty is not just a technology problem. Marketers need to bring the strategy, data and technology together to establish and operationalize a CRM capability. To do this, they must establish a customer relationship and experience strategy.” In the dealership, it’s as simple as asking, “What’s happening to my customers? Is my CRM helping me make more deals, or is our process breaking down?” So how does a dealer combine technology with a selling mindset that provides customers your undivided attention and connection before they say yes?
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How much tech is too much tech? How do you feel when someone is talking to you, but texting? How would you feel in a selling environment if your salesperson was entering data into their phone while they were showing you a vehicle? Probably not very good. But it’s reality in many dealerships that have invested fortunes in high tech, thinking it will “revolutionize their sales process.” Most customers aren’t buying it. No matter what a salesperson is doing on their phone, a vast majority of customers think they’re being ignored. In my opinion, when a salesperson is in front of a customer, their eyes need to be up and directed toward their customer. Look down at your phone and you’re likely to lose a deal. So the challenge really is how much technology do we need, and when is it best to use good old-fashioned rapport building and eyeball-to-eyeball selling? Old school or new school – It’s all good, if it’s done right. Once the sales force has learned (or relearned) the more traditional side of relationship-building and management, it’s time to show how mindset and technology together can forge a highly successful sales program. Technology can be a catalyst to help build traditional relationships to reach more people in more ways. When done right, it results in more deals. Used properly, tools such as Internet Lead Modules and CRMs can prime the pump efficiently. Using prospect and customer information, a smart CRM can store critical information about a prospect’s wants and needs, as well as timeline and budget. Technology does the heavy lifting, while customer engagement closes the deal. High Tech & High Touch High tech allows your sales team to be efficient. High touch, or client engagement, is what’s required to be effective. In other words, it doesn’t matter how efficient I am at auto responding to prospects if they don’t show up and buy. Most of us still want to do business with people we like, respect and trust – and that requires one-on-one interaction. For the best and most effective results, brainstorm about how best to use/blend the two – high tech and high touch. Then, test it in your next sales training session. Here’s one scenario using email as the springboard: Do what the others don’t. Instead of
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canned auto-responders for inbound leads, try a catchy, clever and, most importantly, personalized email that will spur a visit or at least put you higher up on the radar than the other guys. Try a subject line like, “Scott, I’ve been waiting for you to email me!” Most prospects shop online because they fear entering a dealership. They don’t want some pushy salesman. But, knowing you were low-key and fun to work with could help start a dialogue. Today’s customers don’t want the old sales gimmicks, but they also don’t want to be ignored, or feel like they’re going through a line at Walmart to buy
a car. This is a huge buying decision. They deserve your attention, your personality and the best experience you can provide. Remember, they can go anywhere in the world to buy their vehicle. Give them every reason to buy from you. Ultimately, it’s CRM technology and a selling mindset together that make customer relationship management work effectively in today’s auto sales world. Former dealer executive Scott Bergeron is the founder and principal at Daily Gameplan. com - a sales team performance company. Scott can be reached at 303.918.3169 or scott@dailygameplan.com.
December 2016 / AIADA
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LEGISLATIVE MATTERS BY JEFF INGRAM
THE CFPB CHANGES What Does It Mean For You?
The Consumer Financial Protection Bureau has been controversial from the start. One of the ongoing controversies has been the structure of the CFPB because it is extremely different than other federal agencies. The CFPB is different for a number of reasons. It does not depend on funding from Congress. Instead, the CFPB is required to be funded by the Federal Reserve. The amount to be given to the CFPB by the Federal Reserve is set by a fixed formula. Congress typically exercises control over agencies by limiting the amount of funds given to the agencies or by directing that no funds are to be used in certain ways by those agencies. Congress lacks that leverage over the CFPB. The CFPB is different because of its use of enforcement actions to create and implement policy instead of creating and implementing policy through regulations. The CFPB has the authority to issue regulations. There is a process that it must go through before regulations can become effective. However, the CFPB has to a large extent regulated the industries that it oversees by bringing enforcement actions against companies based on loosely defined statutes. Such statutes use terms such as “unfair” and “deceptive.” Instead of going through the necessary regulatory process to define those terms, the CFPB has instead brought actions against individual companies. This has had the effect of telling the industry that certain practices are prohibited without the CFPB having to go through the necessary process to define those practices as prohibited. The CFPB is also different because it is headed by a single person, not a commission, appointed for a five year term who, by statute, can only be removed “for cause,” meaning the president would have to establish the director had engaged in “inefficiency, neglect of duty, or malfeasance in office.” Under the legislation as written, the director could not be removed by a president even if the director worked directly at cross purposes with the president. There have been numerous challenges to the CFPB that, until now, have failed.
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A recent court decision, however, has declared at least part of the CFPB’s structure unconstitutional. This challenge was to the CFPB being headed by a single person accountable to nobody. In making this decision, the court stated “[t]he CFPB’s concentration of enormous executive power in a single, unaccountable, unchecked director not only departs from settled historical practice, but also poses a far greater risk of arbitrary decisionmaking and abuse of power, and a far greater threat to individual liberty, than does a multi-member independent agency.” The court called the director the “single most powerful official in the entire United States Government” whose power exceeds, in his area of influence, even the power of the president. Having declared the CFPB structure was unconstitutional, the court next had to decide what was to happen to the CFPB. The challenger to the CFPB requested the court shut down the entire CFPB until Congress made an appropriate change to the legislation that created the CFPB. The court would not go that far. Instead, the court invalidated the provision that allowed the removal of the director of the CFPB only for cause. Now, under this decision, the director of the CFPB serves at the pleasure of the president. What does this mean for you? Based on this decision, there are likely to be challenges to prior regulations and possibly even enforcement actions taken by the CFPB. It seems unlikely, however, that those prior actions cannot be saved in some fashion by the CFPB even if the CFPB has to start again in passing those regulations or enforcement actions. At most, this change likely delays but does not stop action by the CFPB. There is, however, the potential now for major changes to the CFPB going forward. The current director of the CFPB can now be removed at the sole discretion of the president. There is no indication that President Obama would ever consider removing the present director. Future presidents may feel differently. As previously structured, a change in the Congress or the president would have had little effect upon the CFPB. Now, a change in the presidency carries with it the possibility of major changes at the CFPB. For businesses regulated by the CFPB, this makes every presidential election even more important than before.
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WASHINGTON UPDATE
NIADA GOVERNMENT REPORT
Latest Governmental Issues and Activity Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA senior vice president of legal and government affairs Shaun Petersen.
REGULATORY REPORT By Shaun Petersen
FEDERAL TRADE COMMISSION A federal court judge approved the FTC’s $10 billion settlement agreement with Volkswagen over the company’s deliberate cheating on government emissions tests. The approval formally starts the process for owners of certain Volkswagen and Audi 2.0 liter diesel vehicles – including independent dealers with those vehicles in their inventory – to get compensation. In most cases, the owners of VW and Audi diesel cars fitted with the emissions defeat devices will receive between $12,500 and $44,000 each, depending on the model, year,
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mileage and trim of the car, as well as where the owner lives. A post on the FTC’s consumer blog, www. consumer.ftc.gov/blog/vw-buybacksand-lease-terminations-begin, provides additional background information on the settlement order, along with detailed instructions for affected owners about how and where to file a claim and the claimprocessing timetable. It also tells consumers how and where they can pick up buyback checks and noting those funds do not have to be used to buy a new Volkswagen. CONSUMER FINANCIAL PROTECTION BUREAU Supervisory highlights: The CFPB released its latest supervisory highlights report, which showed recent supervisory actions returned more than $11 million to more than 225,000 harmed consumers. The report outlined violations found in auto loan origination and servicing, including a claim that servicers refused to return personal belongings from a borrower’s repossessed car until the borrower paid a storage fee. If borrowers did not pay the fee in the allotted time, usually 30-45 days, depending on the state, the companies would dispose of the property instead of returning it to the borrower. The CFPB said it is an illegal and unfair practice to refuse to return a consumer’s personal property until a fee is paid. Service providers bulletin: The CFPB reissued its compliance bulletin on service providers, saying the amendment was needed to clarify that entities have flexibility, allowing for appropriate risk management of service providers. The new bulletin includes the same list of expectations for managing service provider relationships, such as verifying that service providers understand and are capable of complying with federal laws; requesting and reviewing service providers’ policies, procedures and training materials; and including in contracts clear expectations about compliance. The revised bulletin gives entities some flexibility and discretion when determining the level of oversight needed, based on the circumstances of the relationship and the particular activities of the service provider, as well as the potential for harm to consumers. Comments on payday lending rule: NIADA joined with NADA and the RV Dealers Association to submit comments to the CFPB regarding its proposed payday lending rule. Our comments raised concerns that the CFPB’s proposed rule needs greater clarity to ensure retail installment contracts for the purchase of personal property, such as automobiles, are not covered by the proposal. We also told the bureau the purchase money exemption must include all components of the transaction, including the purchase of voluntary protection products such as GAP, as well as negative equity.
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TECHNICALLY SPEAKING BY DAN DOMAN
SECURITY STARTS WITHIN Six Steps to Protect Your Dealership’s Data
According to data security firm Virtru, even as hackers become more and more sophisticated, much of the threat to your business actually comes from inside. The company notes that up to 28 percent of enterprise data security incidents come from inside an organization. They’re not saying any of your employees has malicious intent – though that is possible. What they are saying is your staff could be inadequately trained or your data security policies might be incomplete or not enforced. So here are six training and enforcement policies to help protect your dealership from possible threats: Strong passwords: While you’ve heard it before and it might seem obvious, enforcing strict password requirements – such as requiring a minimum of eight alphanumeric characters with symbols – and prompting users to change their passwords regularly are easy ways to protect against unauthorized access. A 2015 survey by TeleSign found 47 percent of people use passwords that are at least five years old. Don’t let your dealership’s employees be among them. Authentication: Require multi-factor authentication on every device that accesses your dealership’s data. The process requires users to register their devices to a particular user ID and password. Registering a device requires employees to select and answer a series of “security” questions not easily guessed by anyone but the employee. In the event a user name and password was compromised, a hacker would still be unable to access your dealership’s systems unless that device was authenticated to those credentials, adding another layer of security.
dealership systems that suit your business processes and the employees’ respective responsibilities. That will help control their ability to access personal and confidential customer data. Use your systems’ notification or activity alert tools: They can be configured to alert you of potentially suspicious employee activity, such as changes to a user’s “setup” or “preferences.” Run a report: Regularly run a user report to ensure all who have access truly need it. The reports should provide detailed information on users including dealer ID and dealer name (for dealer groups), user name, last successful login date, no user activity for more than 60 days, and admin. It is a sound security practice to check your
user reports against your active employee list. You should never have an ex-employee authorized to access your systems. Secure dealerships are successful dealerships, and maintaining a secure dealership begins with fundamental security practices. By implementing the six practices explained here, your dealership will be well on its way to helping ensure the security of your customers’ information – and a successful future. Dan Doman is chief legal and privacy officer of RouteOne LLC (www.routeone.com), a joint venture created by Ally Financial, Ford Motor Credit Company, TD Auto Finance and Toyota Financial Services. He is responsible for managing the legal, governmental, privacy, and security affairs of RouteOne LLC.
IP blocking: Use IP blocking to limit user access from only dealershipapproved IP addresses. That helps prevent unauthorized access from remote or mobile locations. Implementing IP blocking is a great opportunity to review and audit your dealership’s policies regarding remote access to integrated dealer systems and appropriate purposes and use. Now that you have secured the devices that are coming into your system, focus on your dealership’s employees’ day-today use. Check your user permissions: Not every employee needs access to all of your dealership’s data. Assign employee permissions and access to specific
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December 2016 / AIADA
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SOCIAL MEDIA BY KATHI KRUSE
10 STRATEGIC WAYS TO DRIVE LEADS WITH SOCIAL MEDIA Leveraging the Power
One of the most overlooked and underutilized practices in digital marketing is leveraging the power of social media to drive leads and sales. There are a lot of obstacles for dealers to overcome, including a true appreciation of the value, a lack of skills, and certain business cultures that don’t lend themselves to being social. However, if a dealer can eliminate the stumbling blocks, there are strategic, lucrative ways to drive leads with social media. Unfortunately, many dealers and GMs think of social media as an afterthought. Many believe its only value is in creating interest in the dealer’s brand. If this is your mindset then listen up because you’re leaving money on the table. Social media is a quickly evolving beast. Forty percent of marketers believe social media has become increasingly difficult in the past 12 months. Platforms are constantly changing algorithms, releasing new features and “changing the rules.” This requires dealership marketers to think on their feet and quickly adapt their approach at the drop of a hat. The landscape to grow your business with social media has never been more fertile: • 70 percent of the U.S. population has at least one social networking profile. (Statistica) • 52 percent of online adults now use two or more social media sites. (Pew Research) • In 2015, Facebook influenced 52 percent of consumers’ online and offline purchases, up from 36 percent in 2014. (The Drum) Laying the required groundwork is the key to driving leads with social media. Listening to understand your customers improves marketing success. Leveraging social media to engage people before you try to sell them something keeps customers coming back. You save big money because you laser-focus on interested buyers instead of blasting unwanted messages to strangers. Groundwork produces seedlings and the opportunities become plentiful. The next steps are to enact strategies to drive leads with social media. Be open to the possibilities here. Your level of willingness to adapt to the new ways of reaching customers has a direct effect on your results. 10 STRATEGIC WAYS TO DRIVE LEADS WITH SOCIAL MEDIA 1. Begin with a good plan. So many dealers admit they don’t have a marketing plan. They know how valuable marketing is in general, and make some marketing efforts, but inevitably they feel like they need to spend all their time on operations and sales.
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I totally understand how the day-to-day activities involved in running a store can make you wish there were more hours in a day. The irony is you can actually save time with a marketing plan because you’re operating more proactively rather than being in reactive mode. Mapping out a plan also means you can more easily hand off the work of implementing it to somebody else. Better time management is just one perk of a marketing plan and here are six additional ways a marketing plan can benefit your business: • Reinforces your brand. • P ositions your company in the marketplace. • Nurtures current customers. • Attracts new customers. •P repares company for growth. • Helps to analyze what works. 2. Publish useful, highquality, original content. Content strategy means getting the right messages to the right customers at the right time. This involves everything from your website content, blog, social media, and social advertising. High-quality content does not happen without a content strategy. Here are some benefits of developing a content strategy: • Influences buying decisions. • I mproves brand equity and reputation. • Earns customer loyalty. •A ttracts more of the right buyers. • Competitive advantage. • Increased leads and sales. 3. Be social. Always genuinely engage with your audience. Yes, you really do need to be social on social media. Instead of broadcasting the “benefits” of products and services to strangers, add the steps to attract interested buyers
by engaging with them on social media. • 71 percent of those who receive positive social care are likely to recommend your brand to others. • Only 19 percent of those who don’t get any response are likely to recommend that brand. When comments show up, respond. When online reviews are posted, respond. Be more accessible and you’ll notice more customers engaging. 4. Incorporate social selling tactics within your sales process. Social selling is the act of developing referrals, leads and sales using social media. Seventy-nine percent of salespeople who use social media in the sales process outperform those who don’t. Social selling is just like any other sales process. Salespeople build a network (online or offline) to increase referrals and leverage relationships to create warmer leads. Talented sales professionals already have an offline network they’ve nurtured for years. Savvy social salespeople have already been working social media to develop leads. But these individuals are your top performers. What will you do to engage the bottom 90 percent of your team? To attract, engage and sell to today’s hyper-connected buyers, dealers need to build a social selling process within their organization. 5. Leverage the awesome power of Facebook ads. No matter what your Facebook marketing goals are – grow page likes, boost reach and engagement, drive leads, etc. – Facebook ads will help achieve those goals. Facebook ads are by far the most powerful way to advertise your business on social media.
When a shopper is in the final stages of their research and ready to take action, strategic landing pages guide them further down your sales funnel. continued on page 18 www.alabamaiada.com
continued from page 16
6. Use well-designed landing pages to capture leads. When a shopper is in the final stages of their research and ready to take action, strategic landing pages guide them further down your sales funnel. Capture their attention through Facebook ads and convert buyers with actionable, urgent offers they can’t resist. Don’t forget the allimportant call-to-action and include a lead form to track and follow up. 7. Re-market to people who visit your website with Facebook ads. The more advanced Facebook ads strategies are difficult to master but the results are hard to ignore. Perhaps one of the most powerful tools Facebook has to offer is the ability to serve personalized ads to people who have visited your site. Use the targeting option “Custom Audience – Website Traffic” to re-market to people who have visited your site within a set time frame. Once you’ve placed a Facebook pixel on your site (a piece of code that
tracks visitors), you can set up specific audiences with filters based on pages they’ve visited. 8. Leverage the power of LinkedIn. If you’re a salesperson, there is no reason not to use LinkedIn to build your network as one of the ways to drive leads with social media. Make sure you have a 100 percent complete profile – no “lazy bones jones” on this one. People want to know about you and a well-constructed profile with a nice picture says, “Hey, I’m here to help.” Don’t waste time trying to connect with “everyone.” Be deliberate and thoughtful about who you’d like to know and who can introduce you or recommend you. Pro tip: write and publish a weekly article on LinkedIn that displays your knowledge and expertise. It will develop your “personal brand” as a thought leader and trusted resource. 9. Use Twitter for prospecting. To many companies and their salespeople, it seems like Twitter is a huge waste of time. And sometimes it is – if
you’re just messing around on the social network and pitching folks to get on a demo, it probably won’t be that helpful to you. Why? Because the goal of using Twitter isn’t to sell something at the very second you tweet. By using Twitter wisely, you can be part of the most relevant conversations as they happen. Spot opportunities first, build relationships, deepen customer trust and make a name for yourself. However, just having a presence on Twitter doesn’t lead to conversions. It’s how you use it that makes the difference between tweeting into the void and generating leads. Spend the time and effort to: • Find prospects. • Discover buying signals. • Gain insight on companies. •A ccelerate deals with conversation. • Build your following. •B uild relationships with influencers. 10. Show another side of you on Instagram. Instagram is a great place to promote your company’s
personality. Spend 10-15 minutes each day engaging with other users. I know a dealership that has gotten leads via their Instagram content. Ready to convert leads? Instagram now has more advertisers than Twitter. Facebook (who owns Instagram) allows ad creation and publication through the Facebook Ads Manager platform. Are you ready? These 10 strategic ways to drive leads with social media make it possible to eliminate the obstacles to converting your fans into customers. If you’re ready to take it to the next level, Kruse Control helps companies just like yours navigate the social media landscape. Please email me at kathi@krusecontrolinc.com. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.
MANAGEMENT MATTERS BY KENNY ATCHESON
PLANNING FOR 2017 Make Necessary Adjustments “If you always do what you’ve always done, you’ll always get what you’ve always got,” said Henry Ford. Albert Einstein said, “The definition of insanity is doing the same thing over again and expecting a different result.” Now is the time to plan what you will do differently next year to succeed. I’ve had conversations with dealers who spend from $5,000 to $120,000 per month in advertising. I have discovered that regardless of the budget, there are some people who are so afraid of change they choose to continue getting mediocre results in lieu of making
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any adjustments. The resistance to change is not budget specific, but it is success specific. In other words, most successful dealers are ready to make a change at a moment’s notice as long as there is evidence there is a need for it. An interviewer asked Lee Iacocca what order he used to make changes when saving Chrysler. Iacocca said, “Order? We did everything at the same time.” Iacocca made lots of changes at the same time. It’s a good practice when necessary. In his book, Power to Change, Jim Jackson explains how some people only make changes after a crisis. According to Jackson, “You are right where you have chosen to be.” If you sell 40 cars or 240 cars per month, you have chosen how many cars you are going to sell. You may “desire” to sell 15 percent more cars, but that requires the decision to make changes. I’m not saying you should chase every shiny object you hear about from media agencies, a Twenty Group meeting or an article. Invest in consultations with an expert who will give you the bold truth. Don’t approach someone at an ad agency and ask what they have for sale. Carl Sewell, author of Customers for Life and owner of Sewell Automotive with dealerships located throughout the country, wrote about how important consultants have been to him. He doesn’t always take their advice, but at least he knows he is getting the
opinion of an expert rather than a sales pitch for services. Another advantage to professional consultation before investing in new strategies and media is you get “outside eyes” diagnosing and analyzing your strategies and tactics. Outside eyes are typically free from bias. They are not emotionally tied to anything in particular. Let me explain what I mean by “emotionally tied.” I’ve consulted for dealers who have done something one way for up to 88 years. They are emotionally invested in a particular method. It is what got them where they are. It may be something that lifted them from poverty to riches. That creates an emotional attachment. It took an outside set of eyes, a different angle and explanation of a new strategy, to get them to realize it was time for some tweaks. Your existing strategy and plans may be good, and only require minor tweaks to be great. Find out. Kenny Atcheson is the president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy an Army to Battle for Your Business. Kenny teaches workshops, speaks at conventions and 20 Groups, and his company offers several marketing and advertising programs. His website is www.DealerProfitPros.com.
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HIT YOUR MARK APPLY TODAY
Complete the NIADA Dealer 20 Group membership application for an invitation to attend as a member candidate. → A Committed Board of Directors for Your Dealership → Dealers Average 25% Profit Increase in Their First 3 Years as Twenty Group Member → Groups for Small and Large Dealers → Tailored Monthly Composite → Proprietary Online Group Forum → Business Model Best Ideas Session → Consulting, Training & Expert Advice → Currently Forming Three New Groups
WE HAVE GROUPS TO SATISFY ALL DEALER INTERESTS. FIND YOUR PLACE
Retail Controller Auto Finance
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For more details, contact Diann Flanders at 888-906-2705 or diann@niada.com www.twentygroups.com
The National Independent Automobile Dealers Association’s recent acquisition of Leedom & Associates Dealer Twenty Groups will provide NIADA members 17 different group options to join to help your dealership improve profitability and identify opportunities for growth. Whether you are an independent retail dealer, a BHPH dealer, a store manager, or if you operate a franchise new car store, NIADA’s Dealer 20 Groups program has a group to fit your needs and expectations. Whether you are trying to take your business to the next level, train your staff or arrange financing for your dealership, we can help! The NIADA Dealer 20 Group program is dedicated to finding the perfect group to fit your dealership size, sales volume and overall operation.
AIADA FORMS
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AUCTION DIRECTORY
SHIPPING CHARGES ABC – ATLANTA 444 Joe Frank Harris Parkway Cartersville, GA 30120 Sale every Tuesday 6 p.m. & Friday 11 a.m. Phone: (770) 382-1010
GREATER NEW ORLEANS AUTO AUCTION 61077 St. Tammany Ave. Slidell, LA 70460 Sale every Wednesday 9:30 a.m. Phone: (504) 643-2061
ABC BIRMINGHAM 1046 A.E. Moore Drive Moody, AL 35004 Sale every Wednesday 12:30 p.m. Inops at 12 pm Phone: (205) 640-4040
HIGHWAY 101 DEALERS AUTO AUCTION 2100 Hwy. 101 Rogersville, Al (256) 247-3600 Sale Day – Thursday 10:30 a.m.
ADESA ATLANTA AUTO AUCTION 5055 Oakley Industrial Blvd. Fairbum, GA 30213 Sale every Wednesday 8:30 a.m. Phone: (770) 357-2277
KELLEY AUTO AUCTION 3485 US Hwy. 431 Attalla, AL 35954 Sale every Tuesday night Phone: (256) 538-9095
ADESA OF BIRMINGHAM 804 Sollie Dr. Moody, AL 35004 Sale every Monday 6:30 p.m. & Wednesday 9 a.m. Phone: (205) 640-1010
LONG BEACH AUTO AUCTION, INC. 8494 County Farm Rd. Long Beach, MS 39560 Sale every Wednesday 3 p.m. Phone: (228) 452-2030
ADESA KNOXVILLE 1011 Adesa Pkwy Lenoir City, TN 37771 Sale every Tuesday 6:30 p.m. & Friday 9:30 a.m. Phone: (865) 988-8000
LOUISIANA’S 1ST CHOICE AUTO AUCTION 18310 Woodscale Rd. Hammond, LA 70401 Sale every Tuesday 8:30 a.m. Phone: (985) 345-3302
ADESA OF MEMPHIS 5400 Getwell Rd. Memphis, TN 38118 Sale every Tuesday 9 a.m. Phone: (901) 365-6300
MANHEIM CENTRAL FLORIDA 9800 Bachman Rd. Orlando, FL 32824 Sale every Wednesday 9 a.m. Phone: (407) 438-1000
ALBANY AUTO AUCTION 1421 Liberty Expressway SE Albany, GA 31702 Sale every Thursday 6:30 p.m. Phone: (229) 435-7709
MANHEIM NASHVILLE 8400 Eastgate Blvd. Mt. Juliet, TN 37122 Ford Factory Sale every other Monday 11 a.m. Open Sale every Wednesday 9 a.m. GM Factory Sale every other Thursday 10 a.m. Nissan Factory Sale once per month Friday 9 a.m. Phone: (615) 773-3800
ATLANTA AUTO AUCTION 4900 Buffington Rd. Red Oak, GA 30272 Sale every Thursday 9 a.m. Phone: (404) 762-9211
MANHEIM MISSISSIPPI 7510 US Hwy. 49 N Hattiesburg, MS 39402 Sale every Monday 5 p.m. & Thursday 9 a.m. Phone: (601) 268-7550
AUTO AUCTION OF MONTGOMERY 6142 Troy Highway Pike Road, AL 36064 Sale: every Thursday 10:00 a.m. Phone: (334) 288-3399
MANHEIM METRO ATLANTA 2244 Metropolitan Pkwy SW Atlanta, GA 30315 Sale every Tuesday noon Phone: (404) 767-3652
BAMA AUTO AUCTION 4103 Gault Avenue South Ft. Payne, AL 35967 Sale: every Thursday 6:00 p.m. Phone: (256) 304-0947
MIDFIELD CAR AUCTION 1468 Hartman Industrial Blvd. Midfield, AL 35228 Sale every Wednesday and Saturday-6:30 p.m. Phone: 205-923-6535
BIRMINGHAM AUTO AUCTION 125 Meadland Circle Birmingham, AL 35023 Sale every Thursday 6 p.m. Phone: (205) 744-4030
PENSACOLA AUTO AUCTION 401 West Burgess Rd. Pensacola, FL 32503 Sale every Thursday 9:30 a.m. Phone: (850) 477-3063
CENTER POINT AUTO AUCTION 100 13th Ct. NE Birmingham, AL 35215 Sale every Monday 6 p.m. Phone: (205) 856-6527
SHOALS NORTH ALABAMA AUTO AUCTION 651 Fairground Road Muscle Shoals, AL (256) 381-2745 Sale every Tuesday night @ 6:30 p.m.
CHATTANOOGA AUTO AUCTION Chattanooga Auto Auction, Public Sale every Tuesday @ 6:30 PM, Dealer Sale Thursday @ 10:00 AM and IN-OP sale begins 9:00 on Thursdays
SOUTH ALABAMA AUTO AUCTION LLC 27472 Wilcox Road Robertsdale, Al 251-964-7012 Sale Days – Tuesday & Thursday 6:30 p.m. Sat. Auction @ 11 a.m.
DEALERS AUTO AUCTION OF HUNTSVILLE 26125 Hwy 72 Athens, AL 35613 Sale every Tuesday 9:30 a.m. Phone: (256) 232-0201 DEANCO AUTO AUCTION 3664 South Oates St. Dothan, AL 36301 Sale every Wednesday 10 a.m. Phone: (334) 792-1116 GEORGIA-CAROLINA AUTO AUCTION 884 E. Ridgeway Rd. Commerce, GA 30529 Sale every Wednesday 3 p.m. & Friday 6 p.m. Phone: (706) 335-5300
YOUR AUCTION 3010 Scherer Dr. N St. Petersburg, FL 33716 Sale every other Tuesday 11 a.m. – Birmingham The Jim Burke Automotive Group Phone: (800) 675-4444
GEORGIA DEALERS’ AUTO AUCTION 7205 Campbellton Rd. Atlanta, GA 30331 Sale every Tuesday 10 a.m. Phone: (404) 349-5555
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COMPLIANCE OVERDRIVE BY CHIP ZYVOLOSKI
AVOID THE “ONE SIZE FITS ALL” RETAIL SALES CONTRACT MINDSET Address Your Specific Terms Avoid compliance violations and potential fines by setting aside time to review your retail sales contracts. Wait, aren’t all forms “one size fits all?” Your credit documents need to address the specific terms of credit you offer – matched with state and federal disclosures and provisions. Mismatching your credit terms and contract provisions could cost you thousands of dollars in fines, damages and legal fees as well as harm your business reputation. Here are a few features you should review to make sure your retail sales contracts match the credit terms you offer. Type of Property Sold Motorcycles, autocycles, off-road vehicles, RV’s and other motorized vehicles may not be “motor vehicles” under your state’s retail sales laws. Required contract and disclosure terms can vary depending on whether you are selling a “motor vehicle” as defined in your state’s retail sales laws. With the variety of motorized vehicle types available, make sure the contract you are using is designed for the type of personal property you sell. The same is true of your license to sell motor vehicles. Make sure your dealer’s license covers the property you sell. Cash Down Payments Usually, the cash down payment is received at closing, but dealers sometimes allow buyers to make one or more down payments after closing. Under the Truthin-Lending Act and Regulation Z of the act, these “deferred down payments” or “pickup payments” must be made no later than the due date of the second regularly scheduled payment. They also cannot be subject to a finance charge. It’s helpful to have a contract provision with buyer’s promise to make deferred down payments. It must also be a line item in the Itemization of Amount Financed, which treats it as a credit even though it hasn’t been received yet. Although it’s not required, dealers should include the date and amount of a deferred down payment in the Fed Box Payment Schedule. If you allow deferred down payments, be sure your contracts support them or are flexible enough to handle them. Note: some states do not allow deferred down payments or require them to be paid sooner than under Reg. Z.
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Negative Equity Trade-Ins Under Reg. Z, a down payment in the itemization can never be less than zero. As a result, negative equity trade-ins require special handling. Reg. Z allows two methods of calculating the down payment. One way is to net all the cash and other credits against the negative equity in the trade-in (“netting”). Another way is to add all credits but not subtract any negative equity in the trade-in (“nonnetting”). The method used will affect the calculated down payment and the amount of a separate line financing the balance owed on the negative equity trade-in. You may not have much choice in selecting a contract with your preferred netting or non-netting method, but it’s important to understand which method your contract uses so you can explain it to buyers. Equal Installments. Balloon Payments. Equal monthly payments are a common payment frequency. Changing to more or less frequent equal payments can sometimes require changes to contract terminology and disclosures. Be sure to review your documentation and completion tools carefully if you require equal periodic payments other than monthly. Balloon payments are generally structured as a final payment that is more than twice as large as the average periodic payment. A balloon payment schedule can lower periodic payments, but the buyer might have problems paying the balloon. Dealers and lenders sometimes provide options for buyers who can’t pay the balloon amount. Those options may be included in the contract, especially if they are required by law. For example, one option is to allow a buyer to pay the balloon amount plus interest in installments, usually in an amount no greater than the prior installments. States sometimes require additional disclosures to warn the consumer of the final payment amount. Be sure to review your documentation if you offer balloon payment features. Arbitration Not all contracts include an arbitration provision. You should review your contract to confirm it has one if you want it. The CFPB has proposed a regulation that would preserve the buyer’s ability to join a class action lawsuit even if the dealer/ creditor has a contract right to require arbitration. If the CFPB’s proposal becomes final, you will want to review your decision to include an arbitration provision and either update or remove it. Conditional Delivery – Spot Delivery Is your retail sales contract conditioned on your ability to sell the completed contract to an assignee? If so, your retail sales contract should include a provision telling the buyer about it. If you do conditional deliveries, it can be risky to use a retail contract that doesn’t include a spot delivery provision
or specifically cross-reference a separate spot delivery agreement. In that case, someone reading the retail contract alone will not know it’s subject to another agreement. (The same concept also applies to arbitration provisions.) If spot delivery is an important element of your credit programs, make sure your contract addresses it in some way. Note: some states do not allow conditional delivery provisions. Fees and Charges Your retail sales contract probably has blank lines in the itemization and in other places. That does not mean you can put anything you want in the blank lines, especially fees. In many states, only specific fees with specific names are allowed. You should review your retail contracts to determine if they have any required disclosures or contract provisions for the specific fees you charge. What if there isn’t a contract provision or disclosure for your fee and it only appears on a blank line in the itemization? That may be okay for some fees in some states. The point is that you should research your state to determine what fee information is required and to confirm your retail contract has it. Like the seasons, your credit programs and terms can change over time. Now is a good time to review your credit documentation to make sure it is up to date. Chip Zyvoloski is a senior attorney for Indirect Lending at Wolters Kluwer. For more information, please visit www. wolterskluwerfs.com/indirect.
www.alabamaiada.com
www.alabamaiada.com
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