MARCH/APRIL 2011
ARKANSAS
CAR BUSINESS
OFFICIAL PUBLICATION OF THE ARKANSAS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
MOBILE COMMERCE TAKES CENTER STAGE ALSO AIADA Looks to the Future PLUS The Lost Art of the Thank-You Note
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
Visit us at w w w.arkiada.org
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vAuto Helps Dealers Find Manheim Inventory
MAGAZINECONTENTS 6 AIADA Looks to the Future 8 The Lost Art of the Thank-You Note 10 Mobile Commerce Takes Center Stage
NIADA/Manheim Community Service Award Manheim, the world’s largest provider of vehicle remarketing services, cares about its employees, the environment and the communities it serves. From fundraising drives and tutoring kids after school to supporting long-term conservation efforts, Manheim and its employees are dedicated to giving back to their communities and know independent vehicle dealerships across the country share in this commitment. For the first time this year, Manheim is recognizing and honoring those dealerships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For more information, contact Georgia Brown, NIADA director of education, at 817-640-3838 or download the nomination form at niada.com (click on the Manheim Dealers Edge link under the Services tab).
ADVERTISERSINDEX 71B Auto Auction...............................................7 ADESA.................................... Inside Front Cover AutoTrader.com ................................. Back Cover Chase..............................................................13 Manheim.com ..........................Inside Back Cover SmartAuction ................................................. 9 Southern Pioneer Insurance . ..............................5 United Acceptance .......................................... 11 Western General / Protective .............................3
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 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 ARKANSAS CAR BUSINESS IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BOULEVARD., ARLINGTON, TX 76006-5203; PHONE (817) 640-3838. PERIODICALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OFFICES. POSTMASTER: SEND ADDRESS CHANGES TO NIADA STATE PUBLICATIONS, 2521 BROWN BOULEVARD., ARLINGTON, TX 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AND AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF ARKANSAS CAR BUSINESS OR THE 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 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing
vAuto’s proprietary stocking module can now allow its customers to quickly and efficiently source used vehicles at Manheim auctions as well as access Manheim run lists.
“Partnering with Manheim is the first of many exciting integrations with our new AutoTrader.com relationship,” said Keith Jezek, vAuto president, in an early February announcement. “Combining vAuto’s stocking tool with Manheim’s comprehensive list of vehicles is a huge win for our customers. Manheim is a key player in facilitating the buying and selling of used vehicles for automotive dealers, providing vAuto’s customers the best resources to stock vehicles.” vAuto’s stocking module allows dealers to make their decisions for purchasing vehicles based on what the customers are actually buying in their own marketplace at that exact time, down to the level of year, make, model, trim and equipment configuration. In the past, dealers had to rely on historical data, not current trends, when making stocking decisions.
Discount code available for NADA Guide No dealer should be without the NADA Official Used Car Guide. These must-have guides feature pocket-size portability for quick and easy car-side appraisals. Additionally, NADA Online gives you 24/7 online access to used vehicle values, at your desk and out at the auction on your smart phone, while NADA e-Valuator for Dealers software combines more than 19 years of NADA values on your PC and offers an inventory feature. NIADA offers member subscription discounts for the NADA Official Used Car Guide, as well as NADA Online and NADA e-Valuator for Dealers. Contact your state association or NIADA at 800-682-3837 for your discounted subscriptions or complete the online ordering form at www.nada. com/niada. The promotional code for ordering discounted NADA products is NIADA199. This code will need to be entered during checkout to receive the discount.
NIADA199
INSIDE
AUCTION DIRECTORY ADESA Little Rock/ ADESA Springdale Satellite Auction 8700 Highway 70 North Little Rock, AR 72117 Call: 501-945-2444 Fax: 501-945-2605 Gen. Mgr.: Bill Smith Asst. GM: Phillip Willis Sales Mgr.: Angela Sims Fleet/Lease Mgr.: Mike Davis Springdale Satellite Sales Mgr.: Donna Johnson 479-725-1330 Fleet/Lease and Consignment Every Thursday in Little Rock at 9:00am Weekly Tuesday Satellite Auction in Springdale, AR at 9:00am Inoperative Auction Every Other ursday 8:00am Recreational and Specialty Auction Every Thursday in Little Rock at 8:30 am Heavy Truck and Equipment Auction Monthly. Contact Angela Sims for dates and times. Featuring: VRS-CAC, Arvest Bank, Drive Financial, Americredit, ARI, GE Capital, Enterprise RAC, Simmons Bank, PAR Remarketing, SST Remarketing, HSBC, Key Bank, and Arkansas Federal CreditUnion. AFC Financing On-Site Restaurant Airport Shuttle Service Full Service Detail Dept. Body Shop Title Services On-Site Mechanic Shop Local/Nationwide Transport Web site: www.adesa.com
DON’T FORGET TO VISIT OUR WEBSITE FOR IMPORTANT INFO: WWW.ARKIADA.ORG
Central Arkansas Auto Auction, Inc. Independent 205 Foster Drive - Beebe, AR 72012 Mail: P.O. Box 250 Beebe, AR 72012 Telephone: (501) 882-6447 Fax: (501) 882-5008 Web site: www.naaa.com
Dealers Auto Auction 1028 S. Portland Oklahoma City, OK 73108 405/947-2886 Fax: 405/943-8370 www.daaokc.com
PRIMARY CONTACTS: Delane Hooten, General Manager Debi Mitchell, Business Manager Type Of Sales Fleet/Lease Contact: Kim Miller & Neal Smith, Sales Consignment: Wednesday 9:30 a.m.
PRIMARY CONTACTS: Owner/ President: Gary Smith General Manager: Bruce Beam F/L Manager: Mike Egdahl Consignment Sale – Thursdays, 8:30am Featuring: Ford Credit, GMAC, AmeriCredit, Avis Budget Group, CitiFinancial, Hertz Carco, Hertz Corporation, RSA, LK Auto Remarketing, R.B. Leasing, W.M. Sales and Leasing, Bank Repos, Bob Howard Auto Group, Bob Moore Auto Group, David Stanley Auto Group, Joe Cooper Auto Group, Enterprise Holdings, Auto Advantage/ Express Credit Auto, Santander Consumer, Midwest Car Corp, ARI, Thrifty Car Rental, Finance Point, Liberty 1, Littleton, Automotive Solutions, BF Remarketing and many more. INOP Sale held weekly. Highline, Import and Special Interest sale as scheduled. GM Sponsored Closed Factory Sale - Every other Tuesday, 10am Auction Access accepted. A proud member of www.auctionpipeline.com Online purchasing available through Pipeline Simulcast. Full service Recon Facility (Paint/ Body, Mechanical, Detail)
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MEET THE 2011 AIADA BOARD OF DIRECTORS
FRAN CAVENAUGH STATE PRESIDENT
KENT STEGALL STATE VICE PRESIDENT
DON CAVENAUGH MOTORS Walnut Ridge
KENT STEGALL USED CARS El Dorado
DANE REED STATE TREASURER DANE’S AUTO SALES Pine Bluff
WILT LEAK STATE SECRETARY MAGNOLIA MOTOR CO. Magnolia
REGIONAL VICE PRESIDENTS Region Region Region Region
One: Aaron Christie, Affordable Rent to Own, N. Little Rock Two: Al Pledger, Al Pledger Motors, Russellville Three: Matt Erisman, Automatic Finance, Springdale Four: Kurt Weiand, Pioneer Auto Auction, Hardy
Region Region Region Region
Five: Keith Bayird, Bayird Motors, Paragould Six: Kenneth Caruthers, Caruthers Auto & Equip. Sales, McRae Seven: Marty Davis, Davis Used Cars, El Dorado Eight: Open
FROM YOUR E XECUTIVE DIRECTOR
AIADA Looks to the Future
It’s a brand new year with new opportunities and new challenges for all of us. Consumers have been favorable to the independent dealers, especially with some of the automakers pulling out of the smaller markets.
Well, 2011 is here and AIADA is ready for the challenge. I’m Fran Cavenaugh, AIADA’s new president. My husband,
With most consumers searching the Internet for their next purchase, whether its automobiles or airline tickets, it gives independents an even greater advantage than in the past. Websites have come down in price and up in technology with ease of use. Handled correctly, a website can put you on a level playing field with any size dealership. Certified pre-owned vehicles are continuing to become important to the car shoppers. There are a number of companies out there calling on independent dealers about CPO programs that will add to the customer’s level of confidence in a particular vehicle. Remember, if you certify a vehicle under the pretense your dealership will be covered by a service contract company, you better know that company well enough to stake your business on their ability to handle a claim. When it comes to your dealership, don’t ignore the obvious. You can add more value to your inventory with soap and water for less money than anything else you do. Also, cut the grass, post your hours, answer your phone like you wanted to come to work today, and do the many other things you would expect if you were the purchaser. Legislators descended on Little Rock on Jan. 10, most of them anyway. That Arkansas weather proved to be too much for a few of them. The legislative session is the most valuable time and the most dangerous time for the used car dealers.
It’s valuable because it’s the time to correct the things we feel are a hindrance to our success in the car business. It’s also the most dangerous time for us because legislators may pass a law that would prove too costly for the average dealers to comply. This is the most stressful time of my life because there’s always more going on at one time than I can get done. I will be depending on every dealer in the state to help push bills forward we feel would be beneficial. Please call your legislator if you’re asked to call him or her. With more than two thousand bills filed in the last legislative session and that many again predicted this session, there won’t be a lot of reaction time. When called upon for help, you can’t wait. Luckily, we have a chairperson over our political action committee who’s no stranger when it comes to rallying the troops. Sylvia Curry, Jacsil Motors in Pine Bluff, is one that loves God, country and the used auto business. If you’re wondering whether you’ve met her yet, Sylvia has served this association in almost every capacity and has spent countless hours and dollars trying to improve our association and our industry. Membership is important to any association for a lot of different reasons. One is the sheer number of members indicates to whomever is listening that it’s in fact worth listening to. If you benefit from a viable used auto industry, I’m asking you to join us for a better future. The dues are minimal and the return is without measure. Lamar Murphy
Donald, and I are dealers from northeast Arkansas. It is a privilege to serve the dealers of this great state. I look forward to working with you to make AIADA a stronger advocate for the Arkansas dealer. As a dealer, I understand the complexity and challenge of running a dealership in this economy. Last year was challenging for many dealers and 2011 looks to bring us many new changes and challenges, too. That’s why AIADA is so important now. Without an association, we will have no one representing us dealers. Without representation, our voice cannot be heard at the state or federal level. As a fellow dealer, you understand what can happen when our voice is not heard. Laws and regulations that negatively affect our business are easily passed. AIADA is your VOICE! Help us help you, the dealers in Arkansas. A strong association makes for strong and productive dealers. To make a strong association, we must have your support. This simply means you need to become a member. Membership is quick and easy. We must come together as a dealer body to thrive. Without an association, we might survive but we will not thrive. As your new president, I will work hard to make sure your voice is heard. But if we, as an association, don’t hear from you, your voice will be silent. I will work with AIADA to keep you abreast of all the new changes that will affect our business. I want to hear from you. I want to understand your issues and your needs. AIADA is your association and we want to serve you. AIADA is looking to the future. Let’s make 2011 the year the Arkansas dealers’ voice is heard. We don’t want it to be a whisper, but a roar! This year can be the year of the dealer! Feel free to contact me to discuss any issues. You can reach me at 870-886-4007 or fran@ cavautogroup.com. Remember, AIADA is your association! Fran Cavenaugh AIADA State President Don Cavenaugh Motors
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e t o N u o Y k n a Th
When was the last time you wrote a customer a handwritten thank-you note? Not an e-mail or text message, but a real, handwritten note with paper and pen, mailed in a stamped envelope? That’s what
I thought. We have become so addicted to instant communication the very idea of writing someone a thank-you note seems as ancient as 8-track tapes. Even the speed of text messages and e-mails isn’t fast enough for some people, giving the rise to a host of abbreviations I can’t even begin to keep up with. And whether we realize it or not, the true meaning of thank you is lost in all electronic communications. Like most people, we don’t say thank you often enough. A handwritten thank-you note is a personal thing, even more now because we receive so few of them. They matter because they are personal in an increasingly disconnected world and because they take time and effort to produce. I read somewhere gratitude expressed in words is more meaningful and true to life. People will realize the genuine appreciation you have for them and people want to feel appreciated for the things they’ve done. Sociologists tell us the last impression you make on another individual is the one they’re most likely to remember. So send a thank-you note to a customer even when they didn’t buy. Send one when they refer someone to your store. Send another thanking them for their patronage, their assistance, for their forgiveness when your company makes a mistake. Send a note of congratulations when your customer wins an award or appears in the media. It will surprise your customer. Companies spend thousands of dollars on advertising trying to target new customers when reaching out to your existing customer base will usually generate a higher return on your advertising dollar, plus, you already have a captive audience. I read an article some years back that suggested writing three thank-you notes every day, either to a customer, prospect or vendor. Take fifteen minutes out of your day and write three thank-you notes and by the end of the month you’ll have reached at least ninety people. In the end, one of the greatest benefits of writing these notes is it forces you to slow down and think about your greatest asset, your customer. And all of us can benefit from slowing down a little. So think of a customer who’s recently purchased from you or just stopped in to visit your store, and write a thank-you note. You’ll be glad you did. Wilt Leak AIADA State Secretary Magnolia Motor Co. wilt@magnoliamotorcompany.com
WEBINAR
THE LOST ART OF THE
LIQUID MOTORS, NIADA TO PRESENT SOCIAL MEDIA WEBINAR
NIADA members can learn how to leverage social media to garner brand recognition, build consumer confidence and drive new business opportunities during a social media webinar presented by Liquid Motors and NIADA in April.
Learn how to leverage social media to build consumer confidence and drive new business opportunities quickly and easily! Social media continues to be the fastest growing segment on the Internet. As of September 2010, Facebook has over 135 million active users in the U.S. and each user averages seven hours per month on the site, more than double that of any other site on the Internet. THE SEMINAR, SET FOR APRIL 12 AT 10 A.M. CENTRAL, WILL PRESENT THE FOLLOWING:
GETTING STARTED IN SOCIAL MEDIA l
Building a Social Media Marketing Plan - Setting Budget, Goals, Objectives and Guidelines: We’ll cover how to build an effective social media marketing plan Reputation Management: We will help NIADA members understand why this is critical and how to simply and effectively make sure that consumer positive experiences are portrayed and how to respond to negative postings Building a Presence: We will cover how to secure social media accounts and how to configure the accounts for the most effective brand presentation and user experience
LEVERAGING SOCIAL MEDIA TO GROW YOUR DEALERSHIP l
Build Followers and Fans: We’ll discuss how to effectively grow your followers and fans including the dos and don’ts for posting content to social media Leveraging Check-ins: We’ll help members understand how to leverage new location based services to market their dealership on social media sites Dealers also will learn the key metrics to use to track the progress and success of their social media efforts and how to utilize technology to simplify and improve results tracking.
TO REGISTER, CALL 877-573-6877 OR SEND A REQUEST TO socialmedia@ liquidmotors.com.
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M O B I L E C O M M E R C E takes center stage with consumers looking for vehicles, parts and accessories This past holiday season, surveys and statistics showed what many analysts and industry observers were thinking: mobile commerce is growing by leaps and bounds, and every industry is in on the trend, including automotive.
In 2011, smartphones are forecasted to account for half of the mobile phone market, according to The Nielsen Co. On top of that, an ABI Research report says mobile online shopping will generate $119 billion in sales by 2015, accounting for 8 percent of the e-commerce market. When car dealers make it easy for their business to be found through a mobile web browser, loyalty campaigns, marketing initiatives, text promotions and sales can attract and retain customers. What are consumers browsing with their smart phones? The same types of items they started browsing on computers: researching purchase decisions, cost comparisons and finding the location of physical items. Recently, eBay reported a substantial increase in mobile traffic, where sales more than tripled in 2010 to near $2 billion in gross merchandise volume. Last year, vehicle purchases led all categories on eBay mobile applications in terms of GMV, while parts and accessories were number two in terms of the total number of items purchased. Dealers know when they have a physical lot, customers still come to kick the tires when the sales office is closed. Now, today’s consumer might still come to the lot, but he or she will also pull out a smart phone, check the hours of the dealership and research the same make and model for competitive pricing. The same thing is happening even if the consumer doesn’t drive to a physical lot. A consumer may be in his garage working on a car and need to find a part or accessory. Instead of going inside and turning on the computer, he’s browsing his smart phone
to find the part, price and local availability. Just as e-commerce has completely changed the way we do business, wireless devices and smartphones are again altering what we know about consumers’ purchasing behaviors. Seeing similarities in mobile commerce and e-commerce, auto dealers ask themselves a familiar question: would anyone really buy a car from their smart phone? In 2010, more than $118 million in car and truck purchases were made via the eBay mobile application – more than 12,600 vehicles were sold. Parts were the second biggest category in mobile last year, with more than 911,722 parts purchased, and more than $60 million in sales. For independent dealers, mobile applications and mobile commerce are the must-have digital tools of 2011. With smartphones capable of surfing, downloading apps and connecting with coworkers and friends in an instant, researching and shopping for vehicles, parts and services is a natural extension. For example, a business traveler waiting at an airport may use that downtime to look for a needed part for his car or browse available vehicles for a new truck. If an independent dealer’s inventory is not readily available on a mobile app, chances are there’s an entire customer segment that may not see what’s for sale. A recent ForeSee Results survey found 30 percent of consumers used a mobile phone to research products on the Internet, compared with 11 percent in 2009. Those making a purchase through a mobile phone increased from 2 percent in 2009 to 11 percent in 2010. For example, Tilo Steurer, founder and owner of Eurocar, the West Coast’s largest independent dealership of its kind, sells and buys vehicles and regularly uses eBay’s mobile app to buy cars, parts and accessories. “I purchase anywhere from five to 10 cars every month, most of the time through the
eBay mobile app,” Steurer said. He also uses the eBay mobile app to keep track of his business while not in the office. With any form of sales – online, mobile or in-store – customers consider the credibility of the seller and business before making a purchase. Building that credibility takes consistent communication, which is made easier when dealers can keep in touch through mobile and online sources. “Communication is very important, especially when making an expensive online purchase such as a luxury car,” Steurer said. “With the eBay mobile app, I can respond more quickly to customer questions, which builds credibility and increases the opportunity for a sale.” To accommodate this growing trend, eBay Motors is launching a mobile app that will provide a customizable buying experience optimized for vehicles, parts and accessories, as well as unique social and community features for the enthusiast. Features include VIN scanning and a virtual garage to give enthusiasts personalized information. After searching for a vehicle, users can share it with friends and social networks or ask the seller a question. Users can create “car cards” for their vehicles which display photos and stats about the vehicle and can be used in searches for parts and accessories. On the garage tab, consumers can input and store the vehicles they own or scan the VIN barcode with the iPhone’s camera to populate information. In the garage, car owners can create to-do list for vehicle projects, store custom parts searches and share the garage with their social network. For dealers, having parts, accessories and vehicles at a consumer’s fingertips is an ideal way to extend marketing and sales without a lot of development and technical effort. Mobile commerce is still in its infancy but is growing at a faster pace than e-commerce. With the Internet available wherever consumers are with their smart phones, it’s only a matter of time before mobile commerce becomes a dominant form of purchasing. Because of the similarities to e-commerce, consumers are quickly adopting m-commerce and expecting businesses to be on board.
B Y C L AY T O N S TA N F I E L D, E B AY M O T O R S 10
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Independents Remain Profitable in Challenging Environment BY TO M WEB B
Our team at Manheim Consulting had the pleasure of interviewing NIADA President Anthony Underwood for a question and answer session discussing the state of the used vehicle market from the perspective of independent dealers as we compiled the recently released, 16th annual Used Car Market Report (UCMR).
Underwood framed the challenges facing independent dealers in a way that confirmed what our data was telling us: independents are encountering higher prices for inventory at the wholesale level and finding fewer pre-owned vehicles in the marketplace. In response, these dealers are focusing on sound inventory management practices, and using all available sales channels – including online – to source just the right inventory to meet their customers’ needs. We examined these and other trends in the UCMR, which is Manheim’s annual
analysis of the forces shaping the used auto industry. As part of the ManheimNIADA Dealer’s Edge partnership, I’m happy to let you know you can download the entire report free of charge by taking a very brief survey at www.surveymonkey. com/s/manheim. As a comprehensive analysis of the trends shaping the automotive industry, the 2011 UCMR contains much more valuable information pertaining to independent dealers, as well as chapters on other aspects of the industry, including rental, leasing, fleets, repossessions and salvage. I encourage NIADA members to download their free copy of the UCMR, and as always, please e-mail me any time with your questions. Tom Webb is chief economist for Manheim Consulting. Contact him at Thomas.webb@manheim.com, follow him via Twitter at www.twitter. com/TomWebb_Manheim and read his blog at www.manheimconsulting.typepad.com.
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NEW APPROVED MEMBERS FOR DECEMBER 2010 REGION 8 8
COMPANY NAME
CONTACT
Bell's Auto Wholesale AAA Transport/Auto Sales
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Central Auto Sales
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Callahan Motor Company, Inc. Satterfield Motor, Co.
ADDRESS
City
ZIP
PHONE
Michael Bell
214 Higdon Ferry Rd.
Hot Springs
71913
501-627-2049
Charles Pike
135 Reindeer Ct.
Hot Springs
71913
501-520-1099
Mike & Stacey Steven-Assheuer
3925 Central Ave.
Hot Springs
71913
501-520-4777
Michael Callahan John Landreaux
7821 Alcoa Road 22615 I-30
Benton Bryant
72015 72022
501-794-1022 501-213-0081
RENEWED MEMBERS FOR DECEMBER 2010 5
Legend Motors
Larry Barnett/Bobby Malone
P.O. Box 19006
Jonesboro
72402
870-931-7700
Bradley Warford
1323 S. School Ave.
Fayetteville
72701
479-443-0411
Van Thomas
P.O. Box 9
Gassville
72635
870-435-6291
Carroll Towell
P O Box 728
Manila
72442
870-561-4577
Barry A. Roop
5333 W. Kiest Blvd
Dallas Heber Springs Hampton
75236
214-330-1800
72543
501-362-5815
71744
870-798-2600
Ashdown
71822
870-898-5172
Paragould
72451
870-236-8784
John Payton
P O Box 466
7
Warford Motor Company Van Thomas Auto Sales Towell & Sons Auto Sales Manheim Dallas Payton Select Automotive, Inc. Myers Enterprises
Victor Myers
8
Auto Exchange, Inc.
Chuck Cox
5
Bayird Motors Tri State Auto Auction
Keith Bayird
P. O. Box 1077 Hwy. 71 South, P.O. Box 13 P.O. Box 488
Berl Harris
P.O. Box 96
Gravette
72736
479-787-5433
Steve Mitchell
P.O. Box 2590
Mountain View
72560
870-269-3970
Barney & Angela Burrow
818 Hwy. 64 East
Conway
72032
501-796-3344
Danny & Linda Linn
P O Box 2230
Conway
72032
800-862-6464
Kurt Searvogel
168 Grant 748
Sheridan
72150
870-942-4322
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A-3 4
Mitchell 's Used Cars Countryside Motors, Inc. Linn's Auto, Inc. Applied Computer Solutions
1 1 A-7
Arkansas Independent Automobile Dealers Association
SIGN-A-FRIEND
CREDIT TO: (Your Name)____________________________________________________________________________
Knowledge-Support-Success
Type of NEW Membership: Regular ______
APPLICATION FOR MEMBERSHIP Associate ______(non-dealers)
Company Name: _________________________________Owner’s Name: _______________________________________ Mailing Address: ______________________________ City/ State/ Zip: __________________________________________ Phone Number:
__________________ Fax: _________________ E-mail Address: __________________________________
Kind of Business: (check all that apply) Independent ___ Wholesale____Auction House____
Annual Dues $250.00
Franchise___ Retail____ Buy Here Pay Here____
Body Shop____ Re-builder____ Salvage Yard____ Classic Cars_____
Make checks payable to: AIADA
Stay Informed
P.O. Box 147
Magnolia, AR 71754
Stay Legal
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Going Mobile in Your Dealership One of the new keys to the success of your business is your smart phone. You can
operate your dealership on-the-go, making fast, informed decisions that will ultimately improve your bottom line. More than 440,000 mobile sites and over 500,000 mobile apps exist today, including a growing number of auto-industry related apps. It may seem daunting to integrate this emerging technology into your business, but these tools are a must-have for both acquisition and retail. What are ‘mobile apps’ and how do they help dealers? An app is a software application that helps people accomplish tasks faster. Among other things, an app can use the hard drive of the mobile device to store data for faster recall and operation, perform calculations, access hardware features such as camera and GPS – and all without an Internet connection. At its core, the Internet revolution was about how technology harnessed the power of information to generate efficiencies, and this is exactly the opportunity mobile apps offer to dealerships today – providing information onthe-go and tying it all together to take action. How can mobile apps streamline your business?
Mobile browser-based tools provide dealerships with more on-the-go visibility but lack a built-in ability to act in real-time on information organically across the dealership. But, just as a mobile app enables on-the-go stock trading, for example, an app such as eCarList’s ‘True Target Mobile’ allows dealerships to take a massive dataset and a complex, multi-step, -vendor and -personnel process and make it all work from a single handheld device. The ‘True Target Mobile’ app gives dealerships mobile access to pricing data from multiple books, current data from top online marketplaces and the ability to filter, organize and view the data geographically for territory (including vehicle pricing from competitive dealerships). Other functions include VIN scans, taking/adding/removing photos, integrating Carfax Vehicle History Reports and sharing appraisals and pricing with other mobile devices. Are there other benefits to going mobile? On the acquisition side, smart phones provide access to information you need to stock your lot with cars that customers want. It’s no secret that the used car supply is decreasing due to rising demand, so the competition for quality units is getting tighter. Think about the top concerns your
customers have when shopping for a used car: previous damage, maintenance, ownership history, and of course, price. Tools like Carfax Vehicle History Reports are readily-available through various mobile devices to verify this important information and bid with confidence. Having your mobile device handy helps you tie it all together quickly and successfully acquire the right cars for your lot. Today’s mobile devices provide access to information that brings transparency and process effi ciency to dealers. The possibilities mobile is opening up for our industry are truly extraordinary – and in the current economic climate, leveraging new and user-friendly technology is key to moving more cars and saving money in the process. BY LEN CRITCHER AND LANCE VICKERY Len Critcher is CEO of eCarList, provider of award-winning inventory management and online marketing solutions that make it easy for dealerships to fully own and control the vehicle merchandising process through one unified platform. Lance Vickery is director of dealer business at Carfax and has spent more than 25 years in the auto industry.
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Carfax Debuts Mobile App for iPhone Carfax launched the first mobile app dedicated to providing on-the-go dealers with access to Carfax Vehicle History Reports. The ‘Carfax for Dealers’ app is available for free download to all dealers on the App Store. With an iPhone or other Apple mobile device, dealers can run Carfax Reports using their existing Carfax account to better evaluate used cars anytime, anywhere. “The free ‘Carfax for Dealers’ iPhone app is just what our business needed,” said Justin Villa, pre-owned sales manager with David McDavid Automotive in Irving, Tex. “We downloaded it the day it came out and already we’re saving a ton of time evaluating cars. It’s helping us win at auction and evaluate a customer’s trade faster. After all, time is money.” Running Carfax Reports is a key component to a dealer’s acquisition process. Users start by entering the 17-digit vehicle identification number (VIN) or scanning the vehicle barcode to run the Carfax Report. Any vehicle run through the ‘Carfax for Dealers’ app is automatically added to the dealer’s inventory manager at carfaxonline.com. The reports are saved for up to 30 days and dealers can mark vehicles they’re most interested in as favorites within the app. “We’ve always been quick to embrace new technology to help maintain our competitive edge,” said Michael Townsend, used sales manager at Townsend Honda in Tuscaloosa, Ala. “When we heard about the new ‘Carfax for Dealers’ app, we went and got it immediately. The app is fast and makes appraising cars easy. It’s my new favorite tool on my phone.”Free access to Carfax Reports also is available through apps from several wireless technology providers. Dealers looking for additional pricing and product integration functionality can visit:
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AutoRevo www.autorevo.com eCarList TrueTarget www.ecarlist.com VIN Viper www.vinviper.com vAuto www.vauto.com
Sorting Through Exceptions to the Risk-Based Pricing Notice Curbstoned cars are often cheap, but state and local governments pay a high price. The FTC’s risk-based pricing notice requirements became effective Jan. 1. To
comply with these requirements, dealers must alert consumers when they are getting different credit terms than others based on credit information. The good news is the requirements give options for how and when you provide the notice. That’s also the bad news because the options and exceptions can make it difficult to figure out if you’re in compliance. To help you sort through the maze, here are some of the important exceptions and how they apply to you. Your dealership doesn’t need to provide a notice if: l
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You don’t use credit reports in any way to make a credit decision. If your dealership directly contacts employers and other references and is not otherwise using any third party information, then the risk-based pricing notice is not required (it sounds rare, but there are dealers who qualify for this exception).
A notice isn’t required for a specific transaction if: l
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“Our customers tell us how important immediate access to Carfax Reports is to their success, especially at acquisition,” said Larry Gamache, Carfax communications director. “The ‘Carfax for Dealers’ app now puts the power of this information in the palm of your hand. And, you can run as many reports as you need through the app if you’re on the Unlimited Carfax Reports Program for dealers.” Dealers not attending the convention may contact their Carfax account manager or call 800-274-2277. To download the app for iPhone, visit http://itunes.com/apps/ CARFAXInc/CARFAXforDealers. An Android version of the ‘Carfax for Dealers’ app is coming soon.
You don’t do risk-based pricing of credit terms. This applies if every consumer whose application is approved is offered credit on the same terms.
The credit requested is not for a consumer purpose (personal, family or household use). The transaction is a consumer lease. Th e consumer applies for a specific credit product and is approved for those terms. Y ou offer specific terms to a pre-screened group and extend credit on the offered terms to one of them. Th e consumer is a co-signer (which is different from a coborrower), guarantor, surety or endorser in the transaction. Th e consumer’s application is denied and you provide an adverse action notice. Y ou provide the consumer with the credit score disclosure instead of the risk-based pricing notice. The disclosure is an alternative form authorized by the regulations. If you use it, you must provide it to all consumer applicants instead of providing a risk-based pricing notice only to the portion of applicants who are not receiving your most favorable credit terms.
It is likely some of these exceptions apply to your dealership and its transactions. Before relying on an exception, review the regulation or discuss it with your legal counsel to be sure you implement it correctly. The regulation can be found at 16 CFR §§ 640.1-.6. BY C H I P Z Y VO LOSK I Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.
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