C A ROL IN AS INDEP ENDEN T AU T OMOBIL E DE A L ERS ASSOCI AT ION A P R I L / M A Y 2 0 17
AUTO DEALER NEWS
MAGAZINE
NIADA REPRESENTATIVES ATTENDED THE PRESIDENTIAL INAUGURATION PAGE 8
DALLAS, TEXAS Permit No. 2079
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V I S I T U S A T W W W .T H E C I A D A . C O M
S TAT E A F F I L I AT E
INSIDE
08.....................................................Presidential Inauguration 10................................................Is Your Sales Process a Hit? 12...........................................Combatting Negative Reviews 14................................................ NIADA Government Report 16..................................................................Van’s Auto Sales 20................................................................ Tips for Subprime 24...................................................................Dealers Beware 26........................Rethink How You Source Auction Vehicles
WHAT’S NEW
Tire Safety Week Dates Announced
The dates for National Tire Safety Week 2017 are May 28-June 3. An initiative of the Rubber Manufacturers Association, the event promotes tire safety among consumers. Auto dealers join the tire and auto industry to encourage drivers to “be tire smart.” For more information, or to request print materials, visit www.betiresmart.org.
ADVERTISER’S INDEX
SAFETY WATCH
BMW RECALLS CARS FOR REAR JOINT ISSUES Driveshaft Joint May Fatigue and Break
BMW of North America, LLC is recalling 8,752 certain 2011-2012 135i Coupe, 1 Series M Coupe and 135i Convertible vehicles, 2011 Z4
EXECUTIVE COMMITTEE
Ace Motor Acceptance ........................................................17 Auto Auction of New England ..............................................15 Auto Use.................................................................................. 8 AutoZone ...............................................................................18 Black Book................................................................................3 CARFAX ...................................................................................5 Carolina Auto Auction...........................................................IFC Charleston Auto Auction......................................... Back Cover Greensboro Auto Auction .......................................................7 Manheim ................................................................................11 Manheim Pennsylvania..........................................................13 NextGear Capital....................................................................12 NIADA CPO ............................................................................19 PassTime.................................................................................22 STARS GPS...............................................................................9 VAuto.................................................................................... IBC
Immediate Past Chairman
OFFICE
Kim Bradshaw 1st Nations Auto Sales Burlington, N.C.
5643 Harrisburg Industrial Park Dr. Harrisburg, NC 28075 Phone: 704-455-2117 or 1-800-432-4232 Fax: 704-454-5567 www.theciada.com CIADA is a non-profit 501(c)6
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Carolinas 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 CIADA 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 © 2017 by NIADA Services, Inc.
sDrive 35i, 335i, 335d, 335i Coupe, 335is Coupe, 335i Convertible, 335is Convertible, 535i, 535i xDrive, 535i Gran Turismo and 550i xDrive Gran Turismo vehicles and 2012 740i and 740Li vehicles. The rear driveshaft constant velocity (CV) joint on the affected vehicles may fatigue and break. BMW will notify owners, and dealers will inspect the rear driveshaft CV joint and, based on its production date, will replace it, free of charge.
Luke Godwin Godwin Motors Inc. Columbia, SC
Chairman
Will Davis G & B Auto Louisburg, NC
CIADA STAFF SC Vice President
Executive Director
NC Vice President
Controller
Treasurer
Education & Membership Services
Darryl Jackson Crown Automotive Sales and Finance Rock Hill, SC Steve Matthews Matthews Motors Inc. Clayton, NC
President
Darla Booher Deal Depot, Inc. Greer, SC
President-Elect
John Brown 5643 Harrisburg Industrial Harrisburg, NC
Debbie Braswell
Kevin Pendergrass Carolina Auto Sales of Myrtle Beach Myrtle Beach, SC
Jenny Myrick
Secretary
Jayne Harris
Steve Wetmore McAdenville Motors Gastonia, NC
Education & Membership Services DRIS Insurance Martha Brown
MISSION STATEMENT The Carolinas Independent Automobile Dealers Association was organized in 1955 to assist members in enhancing their reputation in the marketplace, gain political influence and provide opportunities to interact with and meet other dealers for the purpose of sharing
business and marketing ideas. As a mature and long-standing Association, we are proud to maintain the ideals and principles set by the founders. But today, we offer more…far more. With a fulltime professional staff, modern technology and world class educational programs, we have become a strong,
effective and influential organization that exists for one reason only: To represent the independent, non-franchised automobile dealer! CIADA is the only not for profit association that represents the independent automobile dealer in the Carolinas with a National affiliation.
THE CIADA EXECUTIVE COMMITTEE
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com PRINTING
Nieman Printing
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AUTO DEALER NEWS April/May 2017
www.theciada.com
ASSOCIATION NEWS
ASSOCIATION NEWS
CLASS SCHEDULE APRIL TO JULY
ALL HANDS ON DECK! Act Now to Fight Legislation
Tax Hike on Horizon The South Carolina Legislature has proposed an increase in the sales tax consumers will pay on the purchase of a vehicle as a “Road Use Fee” to pay for road and bridge repairs in South Carolina. The increase would raise the sales tax 60 percent, from $300 to $500. While we support improvements to South Carolina’s Road and Highway infrastructure, the Carolinas IADA is opposed to HB3516 and SB54 as currently written. Here’s why: • Low-income residents bear an unfair burden since the 5 percent tax is capped at $500. • Dealers who finance consumers in-house would have to tax up front, raising prices. • Sales and gas tax hikes jeopardize consumer’s ability to make timely car payments. The time to act is now! Contact your legislator at www.scstatehouse.gov. Let your representatives know this law, as currently written, is unfair to millions of South Carolina residents. Make sure your customers know about this unfair tax hike, and share it on every social media platform to which you have access! The CIADA is working for you! Join our association today!
ASSOCIATION NEWS
LETTER FROM THE EXECUTIVE DIRECTOR Health Insurance for Your Dealership
It is with great pleasure and pride I write to you today as your executive director. We as an association strive to bring you products that will improve your efficiencies, add savings, and give you tools to help you grow your business. We know how passionate our members are regarding their employees, their wellbeing, and providing for them. In the coming weeks, CIADA will introduce a new opportunity to help you provide much more for your employees and their families. We understand health insurance has been a great concern for our membership. By partnering with Dealers Risk Insurance Services (DRIS), CIADA has a cost effective alternative that can save you and your employees from the outrageous cost of health insurance.
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AUTO DEALER NEWS April/May 2017
Group medical insurance in our industry today simply doesn’t make sense for you or your employees. It just isn’t cost effective for either. CIADA has partnered with Dealers Risk & Insurance Services to bring this cutting edge solution to you. Finally, some good news to the small business out there struggling to take care of the family. You can now offer individual choice of coverage, add a package of additional benefits, and save thousands over the small group plans we’ve been saddled by the last 20 years. Be prepared to be enlightened in the coming weeks as we roll out our new world of benefit options. Be on the lookout for emails introducing the good news and how you can take advantage. CIADA and DRIS are very excited to offer this kind of savings for our members. Thank you for your support and we look forward to an outstanding 2017! Respectfully, John Brown Executive Director
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ASSOCIATION NEWS
NIADA REPRESENTATIVES ATTENDED THE PRESIDENTIAL INAUGURATION
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AUTO DEALER NEWS April/May 2017
www.theciada.com
MANAGEMENT MATTERS BY NEXTGEAR CAPITAL
AUTOMOTIVE FLOORPLAN MANAGEMENT BEST PRACTICES Capitalize on Your New Capital
Once a dealer is cleared to use an automotive floorplan, they instantly have access to more capital to aid in purchasing inventory. However, along with that instant access to more capital is a new set of management responsibilities. Keeping these best practices in mind will help dealers integrate their new capital into their current business plans, allowing them to use their floorplan more effectively. Fit the floorplan to the dealership. Dealers need to be aware of their own business numbers to optimally manage an automotive floorplan. What is the dealership’s average inventory turn time? How many cars need to be sold to meet operating expenses? What is the average profit margin per car? Knowing the answers to questions like these can give dealers key insights to help establish where they are, where they are going and how long it will take for a dealer to reach their goals. The answers to those questions can also provide clarity on how an automotive floorplan can fit into the current shape of the business. Use floorplans for discipline. When a dealer uses cash or a regular business loan, there is no incentive to
sell a car or profit quickly. Additionally, a dealer’s initial investment will depreciate depending on how long the vehicle stays on their lot. Floorplanning can help provide a dealership with discipline. Dealers have a given amount of time available until they have to pay a vehicle off. Use that deadline to the dealership’s favor. If a dealer hasn’t received a profitable offer on the vehicle due for payoff, that approaching deadline can jumpstart their inventory exit strategy process. Whether that exit strategy includes selling the car at auction, working with other local dealers, or holding out for a more profitable offer, the floorplan deadline ensures a dealer doesn’t just let their inventory, and their initial
investment, depreciate. Always floorplan responsibly. A dealer’s business data combined with a floorplan can lead to excellent dealership profits. However, dealers need to make sure they floorplan responsibly. If a dealer uses their entire line of credit and those vehicles haven’t sold once payoff time arrives, that dealer is going to have a pretty hefty bill. Space out inventory purchases. That way, payoff dates are spaced appropriately for dealership cash flow, just in case inventory hasn’t sold before payoff time. Used together, these best practices allow dealers to purchase the inventory needed, provide incentive to profit and allow for manageable floorplan payments.
A DEALER’S BUSINESS DATA COMBINED WITH A FLOORPLAN CAN LEAD TO EXCELLENT DEALERSHIP PROFITS. HOWEVER, DEALERS NEED TO MAKE SURE THEY FLOORPLAN RESPONSIBLY. www.theciada.com
April/May 2017 AUTO DEALER NEWS
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MANAGEMENT GAMEPLAN BY SCOTT BERGERON
IS YOUR SALES PROCESS A HIT? OR HIT AND MISS? Increase Your Batting Average Louis Pasteur said, “Chance favors the prepared mind.” When it comes to sales, this is the most important driver to long term success. Selling a vehicle comes down to two essentials. First, having someone to talk to who can buy. Second, being prepared so you don’t ruin your chances when you do have someone to talk to. All this means being organized in how you manage your sales process. The ultimate goal is to turn every opportunity into a sale. But since a 100 percent closing ratio never happens, the goal is to increase your batting average by consistent and correct execution of the basics. Shooting from the hip strategies never work as a game plan for success. These offthe-cuff processes typically rely on force of personality, which can be hit and miss depending on the salesperson’s mood. Charm may captivate one prospect and turn off the next, who feels as if it’s a put on. It can enthrall and entertain people in short bursts, but will only seal the deal with a select number of people. Salespeople accustomed to this type of selling may achieve a certain level of success, but it won’t ultimately rival what a well-organized, prepared salesperson can accomplish over the long term. Another analogy helps drive home the point even further. I call Denver home. Here, the Denver Broncos are as close to a religion as a sports team can be. In January, the Broncos’ coach, Gary Kubiak, resigned, citing health issues creating an inability to put in the amount of preparation time necessary for his standards. For him, that was a 5 a.m. to 10 p.m. regimen. The results of this approach are significant – in his first year as head coach, the Broncos won Super Bowl 50, proof the guy knows his stuff. There are likely very few salespeople who want to spend 17 hours a day preparing to sell cars. So it’s important to find other ways to help sales teams achieve. Here are a few important tips to develop an effective preparedness plan that doesn’t micromanage salespeople or make them feel like they’re stuck doing unnecessary hours of “homework”: Clarify objectives and goals by quantifying a sales funnel featuring prospects, sales, and activities needed for both. While this can get really detailed, the basics are straightforward. First, look at the forecast. To hit a certain forecast, the initial
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step is to reverse-engineer the process. Second, determine the historical average of how many prospects (UPs) it takes to make a sale. Let’s say it’s 4:1, or a 25 percent closing ratio. If that’s the case, you’ll likely need 100 prospects to make 25 sales. Third, determine historically what you have averaged per sale in commission (or gross if you’re the dealer) to determine how many prospects (UPs) you would need to hit your forecast. In the real world a salesperson who wants to earn $5,000 consistently each month needs to know exactly how to do that. If a salesperson historically earns $280 per sale, then he needs to sell 18 cars to make over $5,000. If his closing ratio is historically 29 percent, he needs to talk to 62 prospects (UPs) to sell 18 cars. The key here is getting accurate data to be able to do the math. Look at how to improve on historical numbers. For example, sales training can improve closing ratios, as can listening and learning body language. The key is to be able to give the salespeople all the tools they need to be consistently successful. Many email prospecting campaigns, as an example, fail miserably because of overcommunication or coming across as pushy and self-serving. Today’s prospects want to know what’s in it for them and how you can help them get there. Use a CRM tool to track and help assess your sales team’s opportunities. I always try to get consistently better, whether I’m managing or selling directly, and to do that I need real data on my capabilities. Creating a doable plan is only half the battle. Fulfilling it is the other half. How many New Year’s resolutions are kept? Therein lies the difficulty, and the challenge. Keep the plan on track. Identify ways to improve it. Spot and repair weak links (e.g., sales team members not following through, either with their objective or reporting of it). Streamline processes further to make it even easier for your team to follow. Avoid the traps of assuming “there’s an APP for that.” When processes, especially sales processes, are overly complicated, technical, or not easily inspected, it almost always leads to failure. Sometimes, the simplest solutions are the best – particularly when they gain easy acceptance from the team. Two major considerations outweigh all others: A) Does the system provide basic key performance indicators (KPI) that managers can easily pull up and track? B) Is it easy for salespeople to learn, adopt and use consistently? Installing any new or exciting sales process can be tricky. The first step is to make sure it fits your dealership’s current selling style. There’s no need to reinvent the wheel here. Just make sure it fits. For example, older salespeople may be more inclined to use paper-based sales management systems, while digital processes via smartphones or workstations
SALES PROCESSES AND SYSTEMS ARE ALL ABOUT IMPROVING THE CUSTOMER AND SALESPERSON EXPERIENCE SO NOTHING IS LEFT TO CHANCE. OVERALL, MAKE SURE YOUR PROCESSES ARE WORKABLE AND WELL THOUGHT OUT, SO THEY CAN BECOME A CORNERSTONE OF YOUR SUCCESS. may be the overwhelming millennial preference. Keep your options open as both have strengths and weaknesses. Balance all this out by maintaining consistency. Sales processes and systems are all about improving the customer and salesperson experience so nothing is left to chance. Overall, make sure your processes are workable and well thought out, so they can become a cornerstone of your success. By deploying a consistent, balanced, and inspected sales system, you can steadily increase your bottom line and build a solid sales team for the long haul. Former dealer executive Scott Bergeron is the founder of Daily Gameplan.com, a sales team performance company. Scott can be reached at 303.918.3169 or scott@dailygameplan.com.
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ONLINE MARKETING BY KENNY ATCHESON
FAKE NEWS ABOUT YOUR DEALERSHIP
Combatting Negative Reviews
There has been a lot of talk regarding fake news lately as the political season brought the problem to the forefront. However, fake news has been spreading for a long time – especially in the digital realm. Smaller businesses are able to compete with bigger businesses on the Internet. People can run video advertisements online at a fraction of the cost of television ads. Unfortunately, nefarious characters are also enabled to spread lies and propaganda on the Internet for the purpose of hurting others. Some fake news is meant to generate money. Fake news is often fronted by outlandish headlines meant to garner click-throughs so website owners can show advertisers their “news” gets millions of views per month. The fake news you should concern yourself with is what is being spread about your dealership. Just because you know the news is fake doesn't mean your potential customers do. A competitor or disgruntled employee can create a fictitious name, go to Google and write an online review telling people your dealership ripped him off. That scenario is rare. However, it’s not rare for actual customers to complain online about your dealership and leave out important details, such as how they missed payments for three months. The best lies – or fake news – to spread are those that contain some truth. Partial truths may be shared to start the communication, such as the online review that leads readers to trust what they consume before they get to the fake part. For example, a customer has had his car repossessed. He goes to your Google page and tells potential customers your dealership can't be trusted. He purchased a car and paid more than it was worth. When he was one day late on the payment he called the dealership to tell them the payment was on the way. The payment was late because he had to take his kid to the doctor – and then the
vehicle was repossessed from the hospital parking lot! What a big meanie you are. The truth: Someone at your dealership sold a vehicle to him at an agreed-on price – that, incidentally, he thought was fair at the time. He signed an agreement that the car would be repossessed if the payment was X days late. When the payment was one day late you spoke to him and told him to get his payment in by a certain date or you would be forced to repossess the vehicle. The customer did in fact purchase a vehicle from your dealership. Although it was at an agreed-on price, the stigma that used car dealers sell vehicles for more than they are worth is already out there. So the first two things the complaining customer said were true in the mind of the reader. That can – and does – lead whoever reads the negative online review to think the entire story is true. During a recent consulting call, a new client asked me how to stop getting negative reviews. It's a common question and worthy of a two-part answer. 1. L aunch a customer feedback and review system that encourages complaining customers to vent internally. There should be signage in the building and language in communications with customers alerting them where to go to share their feedback. Many customers who complain on Google or Facebook would use an internal system if there was one in place. If the dealership does not offer one, they complain publicly and leave out important details. We did a case study of one client who used our feedback and review system for their dealership. Out of 56 customer complaints, only two went public over a given time. 2. Saturate your dealership’s Google and Facebook pages with positive reviews. Having one or two negative reviews won't hurt as much if there are 150 positive reviews. Negative reviews will get buried by positive comments from happy customers. Fake news has been in the news so much lately because it can be highly detrimental to the country. It can also be highly detrimental to your business. You can choose to do something about it. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-theRadar Strategies to Explode Your Profits. To learn more, visit www.DealerProfitPros.com.
ASSOCIATION NEWS
2017 NIADA & COX AUTOMOTIVE COMMUNITY SERVICE AWARD Nomination Deadline May 12
Nominations are now open for the 2017 NIADA & Cox Automotive Community Service Award, presented by Manheim. The deadline for submission is May 12.
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AUTO DEALER NEWS April/May 2017
NOMINATE YOUR DEALERSHIP TODAY AT
WWW.COXAUTOINC.COM/COMMUNITY-SERVICE-AWARD. Reward your favorite charity with $10,000. Nominate a deserving independent dealership that works to find innovative and meaningful ways to collaborate with community partners. The winning dealership will be recognized at the 2017 NIADA Convention and will receive $10,000 for their local charity of choice, courtesy of Manheim. Dealerships must be a current member of NIADA to qualify. Nominate your dealership today at www.coxautoinc.com/communityservice-award.
www.theciada.com
WASHINGTON UPDATE
NIADA GOVERNMENT REPORT Latest Government Issues and Activity Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA lobbyist Sante Esposito of Key Advocates and NIADA senior vice president of legal and government affairs Shaun Petersen. LEGISLATIVE REPORT By Sante Esposito D.C. MEETINGS NIADA’s leadership visited Washington on Feb. 27-28 for a series of legislative meetings. The NIADA contingent included CEO Steve Jordan, president Billy Threadgill, presidentelect David Andrews, legislative committee chairman Henry Mullinax, senior vice president of legal and government affairs Shaun Petersen and Key Advocates. That group had more than 20 meetings to provide legislators and others information about NIADA and to convey the association’s legislative priorities for 2017 – a list headed by the issue of recalled vehicles and the Consumer Financial Protection Bureau’s impact on the auto industry. In addition to 12 Senate offices and committees – including meetings with Sens. Lamar Alexander (R-Tenn.), Bob Corker (R-Tenn.) and Luther Strange (R-Ala.) – and seven House offices and committees, NIADA attended a meeting of the Republican Attorneys General Association and met with NADA to discuss the associations’ mutual interests. FINANCIAL CHOICE ACT Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, circulated an outline of potential changes to the Financial CHOICE Act he introduced during the previous Congress. Hensarling is expected to re-introduce the bill, which includes a series of reforms of the CFPB, but there could be a number of changes. One reportedly under consideration is whether to keep the bureau’s leadership in the hands of a single director but to allow that director to be removed by the President at will, as opposed to only for cause as is currently the case (pending an appeals court ruling), or to have a five-member commission, as proposed by the bill’s previous version. Other changes could include removing the CFPB’s authority to regulate unfair, deceptive or abusive acts and practices violations, and limiting its rulemaking to enumerated financial statutes such as the Truth in Lending Act. While the revised Financial CHOICE Act has not yet been put forward, several other
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AUTO DEALER NEWS April/May 2017
bills have already been introduced to change the structure or limit the authority of the CFPB. In fact, bills have been introduced in both houses to eliminate the bureau entirely. The House bill (H.R.1031), introduced Feb. 14 by Rep. Jon Ratcliffe (R-Texas), now has 17 cosponsors, while the Senate version (S.370), introduced the same day by Sen. Ted Cruz (R-Texas), has four cosponsors. REGULATORY REPORT By Shaun Petersen FEDERAL TRADE COMMISSION Bureau of Consumer Protection: Jessica Rich, a past speaker at the NIADA Convention and Expo and the National Leadership Conference and Legislative Summit, resigned as director of the FTC’s Bureau of Consumer Protection. Tom Pahl, an attorney who had previously served as assistant director of the Bureau of Consumer Protection, has been appointed acting director. On March 1, I met with Mr. Pahl and his senior staff in Washington to introduce him to NIADA and the association’s priorities. Fair lending report: The FTC transmitted its annual report of enforcement activity related to fair lending and the Equal Credit Opportunity Act. The report said the FTC has proposed a qualitative survey of consumers designed to provide useful insights into consumer understanding of the automobile purchasing and financing process at dealerships. The report said it would seek consumer interviews as well as their purchase and finance documents. CONSUMER FINANCIAL PROTECTION BUREAU The CFPB has launched an inquiry into ways to expand access to credit for consumers who are “credit invisible” or lack enough credit history to obtain a credit score. The bureau is seeking public feedback on the benefits and risks of tapping alternative data sources to make lending decisions about consumers whose lack of credit history might otherwise block opportunities. The CFPB estimated 26 million Americans are credit invisible, meaning they have no credit history with a nationwide consumer reporting agency. Another 19 million consumers have a credit history that has gone stale or is insufficient to produce a credit score under most scoring models. The initiative includes looking at alternative data as a way to build a credit history and gain access. Alternative data draws from sources such as bill payments for mobile phones and rent, and electronic transactions such as deposits, withdrawals or transfers. The bureau is also exploring risks posed by alternative data that is inconsistent, incomplete, incorrect, overgeneralized or biased.
THE BUREAU IS SEEKING PUBLIC FEEDBACK ON THE BENEFITS AND RISKS OF TAPPING ALTERNATIVE DATA SOURCES TO MAKE LENDING DECISIONS ABOUT CONSUMERS WHOSE LACK OF CREDIT HISTORY MIGHT OTHERWISE BLOCK OPPORTUNITIES. DEPARTMENT OF JUSTICE Paul Robinson of Lawrenceville, Ga., pleaded guilty to one count of conspiracy to commit securities fraud and odometer tampering in U.S. District Court in Norfolk, Va. As owner and operator of Affordable Auto Body Repair, a repair shop and licensed salvage vehicle dealer in Chesapeake, Va., Robinson purchased older vehicles – many of which had been involved in accidents – from an auto auction specializing in vehicles from insurance companies. On more than 100 of those vehicles, Robinson altered or replaced the odometer to reflect a false, lower mileage. He then obtained fraudulent Virginia motor vehicle titles with mileage readings matching the false odometer readings and passed the falsified title documents on to auto purchasers. Robinson obtained many of those fraudulent titles from a former DMV Select clerk. STATE ACTIVITY New Jersey: After a bill regulating the use of GPS and starter-interrupt technology passed the state legislature, Gov. Chris Christie conditionally vetoed many of the bill’s most problematic provisions, including a mandatory interest rate reduction for use of starter interrupt devices. The New Jersey Assembly has concurred with the governor’s changes and a vote to consider those changes is pending in the Senate. www.theciada.com
ASSOCIATION NEWS
VAN’S AUTO SALES CPO PROGRAM Official Launch Feb. 1
Van’s Auto Sales officially launched its Certified Pre-Owned program on Feb. 1. A family dealership owned by Billy Threadgill, Van’s is located in Florence, S.C. The NIADA Certified Pre-Owned Program is designed with both dealers and consumers in mind. The seal lets them know the vehicle and dealership are held to a higher standard, through a vigorous certification checklist, vehicle history reports and more. That gives customers the peace of mind they need to buy with confidence. CIADA executive director John Brown as well as Randy Swarney and Natalie Suarez from program administrator Warrantech joined the dealership’s celebration. Also in attendance were Don Queen, Jr. and Roy Daes from eBay, Dave Bafumo, John Tucker and representatives from BB&T and Anderson Brothers Bank. NIADA’s CPO program is administered by Warrantech, a subsidiary of AmTrust, the same company picked by General Motors and Microsoft to represent their programs. In addition, it is the service contract provider for Mazda, Volvo, Bentley and Pep Boys, among many others. Now when customers visit Van’s Auto Sales, even if they buy a car as old as 14 years old or with up to 150,000 miles, they’ll know that if the car is certified it
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has passed a 125-point inspection and they will be covered for the first three months or 3,000 miles with warranty, with the option to extend that further with a service contract. They’ll also know that not only will they have enhanced drive train coverage, but they will have the added benefits of towing, roadside assistance, rental coverage and lost key coverage. Van’s Auto Sales was founded March 12, 1975, by Billy and his parents after Billy’s father spent 20 years in the finance and car sales with a local Ford dealership. Van’s Auto Sales is the oldest car dealership in the Florence area. It is a three-generation dealership – it now includes Billy’s son Michael, the dealership’s secretary-treasurer. Billy and Michael are both Certified Master Dealers. Currently the NIADA president, Billy has been highly involved in the association. He has been on the NIADA executive committee since 2009, serving as secretary, treasurer, regional vice president, senior vice president and president-elect. He is also a former chairman of the NIADA State Presidents Council and president of CIADA. Billy has also been involved in the industry as a whole, fighting for legislation that would benefit auto dealers. He was instrumental in getting the pre-license bill passed in South Carolina, and has received two resolutions from the state for his efforts. Threadgill was recently honored by members of the South Carolina legislature for his continuous efforts to support the free enterprise system and to enhance the reputation of independent automobile dealers. Earning political influence and providing opportunities for elected leaders to interact with and meet dealers for the purpose of sharing business information is vital to the future of the industry. www.theciada.com
INDUSTRY NEWS BY USED CAR NEWS
INDUSTRY NEWS
CLANTON IAA ANNOUNCES RAY PASSES PROMOTIONS Key Leadership Positions
Insurance Auto Auctions has made several key leadership promotions. Sidney Kerley was promoted to senior vice president and general counsel. He will continue to lead the legal team and assume responsibility for both industry relations and customer quality assurance. Jeanene O’Brien has been promoted to senior vice president of global marketing and will continue to oversee global marketing as well as assume responsibility for the newly created buyer development function. John Krupnik has been promoted to senior vice president and chief technology officer and will continue to oversee business technology as well as assume responsibility for the newly created product development function. Terry Daniels, managing director of Impact, will expand his responsibility to include both Canada and global market development. Eldon Booth has been promoted to lead all U.S. field operations as senior vice president of field operations.
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Deepest Condolences to Family of Auction Owner
Ray M. Clanton, 89, of Darlington, South Carolina, died on Wednesday, March 15, 2017. Born in Darlington, he was the son of the late James Corbett Clanton, Sr., and the late Isla Blackmon Clanton. Ray was the loving husband of Mary McFadden Clanton. In 1985, Ray became the owner of Clanton’s Auto Auction along with his brother J.C. Clanton, Sr. Clanton graduated in 1945 from St. John’s High School and was active in all sports. Receiving a four-year college scholarship, Ray attended Clemson University and played football as left guard under legendary coach Frank Howard. After graduation in 1949, Ray remained at Clemson to serve on the coaching staff and later coached at St. John’s High School on a voluntary basis. As a young man, Ray served with the Darlington County National Guard in the medical unit. He served as a board member of
the Darlington County Board of Education, First National Bank of Darlington, Wachovia Bank of Darlington and the Darlington Country Club, and was a member of the Brockington Hunt Club. A faithful and dedicated member of the Presbyterian Church, Ray served as a Sunday School teacher, superintendent, deacon and on numerous committees. Ray’s parents; a son, Ray McIver Clanton, Jr.; and brothers James Corbett Clanton, Jr. and Laurie Harold Clanton precede him in death. Surviving are his wife of 66 years, Mary McFadden Clanton; his son Richard McFadden Clanton and wife, Lynn; his son Robert Dean Clanton and wife Mary Beth; five grandchildren and several nieces and nephews. The funeral services were held on Saturday, March 18. In lieu of flowers, the family requested contributions to the Darlington Presbyterian Church for the Mozambique Bible Project or the Susan Johnson Memorial Fund at 311 Pearl Street, Darlington, SC 29532. To send the family online condolences, please visit www. belkfuneralhome.com.
www.theciada.com
ACCELERATE
BY GWC WARRANTY
TIPS FOR A SUBPRIME SLAM DUNK Ensure Your Subprime Business Doesn’t Fluctuate
As the pendulum swings with subprime lending, it becomes increasingly difficult for dealers to give their subprime customers the best deal possible. But regardless of which way the subprime breezes are blowing, there are certain steps used car dealers can take to ensure their own subprime business doesn’t fluctuate with the annual ebbs and flows of the subprime market. The Right Inventory It starts with selection of inventory and moves on to the inventory you present to each individual customer. Head to auction with the subprime customer in mind. Do some research with your lenders beforehand to see which vehicles they’ve had subprime success with and target a few of those each time you’re acquiring inventory. Once they’re on your lot, present them to customers who pre-screen with subprime credit. Once you engage with the customer, try something along these lines: “Thanks for reaching out, Mr. Smith. I have three great vehicles here that match what you’re looking for and they’re vehicles I know we can get financed for you.”
The Right Lenders Part of being able to select, present and finance the right vehicle for a subprime customer is having strong lender partnerships. Seek out lenders who know the subprime space well and operate in it frequently. Many can be local providers, so finding lenders who know your area well will help, too. Lenders that meet these criteria will be more consistent with their decisions and help you get more subprime deals approved on a regular basis. The Right Protection A common struggle on a subprime deal can be adding a vehicle service contract on the back end with a limited subprime advance. This is an obstacle you can certainly overcome – especially if you’ve worked on the first two points we’ve discussed. It’s a simpler solution than you might think, too. Just ask. And you might have to ask more than once, but good subprime lenders will understand the value of a service contract on a vehicle. Remind them of that if you need to. A service contract will keep a car on the road, protect a customer’s monthly budget and, in turn, lower the likelihood of a default. As you look at ways to breathe some life into your subprime business, remember three keys to successful subprime sales: the right inventory, the right lenders and the right protection.
Don’t get caught with your pants down. On February 1, 2017, Electronic Lien and Title (ELT) processing will become mandatory for any South Carolina business that finances vehicles, vessels or mobile homes. All lenders must comply by August 1, 2017.
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SALES MATTERS BY GEORGE DANS
CLOSE OR LOSE What If They Say No?
How many times have you heard the dreaded phrases, “We need to go home and think about it,” “This is our first place,” or, “I need to go home and talk to my wife”? According to Internet statistics, the average customer is spending over 15 hours of research when it comes to buying a vehicle. Doesn't that mean they have accomplished all of their pre-game activities prior to buying a car? Then why do they come in and say they’re just looking? The dreaded word “no” has destroyed so many good people because they haven't been professionally trained, developed or maintained to overcome it. My best advice is to set your sale up the right way so you can close the right way. Follow and execute the basics of selling with every single customer, every day, and I know you will sell more, close more, net more and profit more, and more success will follow you right to the bank. Closing is when you do something positive that is leading your prospect through the sales process. Every time your prospect says “yes” to you that’s a minor commitment toward the ending commitment, when you finally ask for the sale.
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When is the best time to ask for the sale? It’s when you have built the value higher than the price in the prospect’s mind. One of the easiest closes to use is the summary close, which is like a designed play in sports. Three “yes” questions or minor commitments: 1. You did like the car, didn’t you? 2. Didn’t this have all the room you need? 3. Won’t this car save you money on gas in the long run? Positive statement: Steve, it sounds like you and I found the perfect car! Close: Will you be registering this in one name or two? Shut up. Like most great salespeople, when you ask for the close you have to make sure you shut up! Don’t over talk, don’t talk, just shut up. When you ask for the sale, let the prospect come back with an answer. Example if the answer is no: Flush out the objection – “Is it the car, make, model, equipment or the price?” Then shut up. “It’s the price!” Ask, “Are you writing a check or making payments?” Then shut up. “Payments.” “Sounds to me like you want to make sure it fits your needs and in your budget. Am I right?” Then shut up.
“Yes.” “Other than fitting this into your budget, is there any other reason why we couldn't wrap it up right now?” Then shut up. “No.” “Congratulations. Are you going to be registering this in one name or two?” Then shut up. “Two names!” “Follow me and let’s go write it up!” If you are an amateur, I’m sure you won’t practice or take the time to learn, absorb, repeat and master the above scripts. If you are a real professional, or on your way to becoming a professional, you know you have to practice the scripts so they don’t sound like a script. Pros practice until they can’t get it wrong. Read it, role play it, record it and watch how easy it is to close more sales.
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MANAGEMENT MATTERS BY GWC WARRANTY
5 FACTS YOU DIDN’T KNOW ABOUT THE COST OF REPAIRS A Fresh Approach
Most dealers have talked about the cost of repairs when attempting to close a vehicle service contract sale. But has talking about the price of parts and labor returned a mixed bag of results? What if there was a different approach you could take when presenting the cost of repairs that would be more effective? In the interest of taking a fresh, new approach with the cost of repairs presentation, let’s take a step back from the price of a new transmission or the labor costs at the repair shop down the road. Let’s rather take a look at some supporting data and approaches that make the cost of repairs discussion more relatable and more effective. Nearly half of all Americans can’t afford an unexpected $400 expense. The Federal Reserve just conducted research that found 46 percent of Americans do not have enough money to cover an unexpected $400 expense. Chances are if you’re selling a used vehicle, or perhaps vehicles with higher mileage to a subprime customers, they would fall into that category. With this knowledge on hand, it should help justify a few extra dollars each month to add a service contract on a vehicle. Age of ownership is changing rapidly. Edmunds research has discovered trade-in volume will likely dip below six million this year. It’s the first time that has happened in five years. Why? Because drivers are hanging on to their cars longer. The same Edmunds report showed eight- to 15-year-old vehicles had higher value retention than one year prior. If your customers plan on holding onto their cars longer and protecting the value those vehicles retain, a service contract becomes a much easier sell. Expenses from a breakdown don’t stop at parts and labor. Anyone who has had a broken-down vehicle knows the process. There’s a tow truck involved. If you’re away from home, you’ll need to find lodging. Parts and labor can be expensive on
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their own, but when you factor in hotel stays, roadside assistance and towing services, the cost from a breakdown starts to skyrocket. A service contract resolves these fears by covering more than just parts and labor. Customers are basing their car purchase decisions on parts costs. A recent AutoMD survey reported 15 percent of car buyers factor in costs of repairs when buying a vehicle. It’s one of the leading considerations of recent car buyers – right behind price, longevity and utility. If that is such an important point of emphasis for customers, it would only make sense they would be interested in
protecting themselves from such outof-pocket expenses. Video can tell this story for you and bring it home. According to global media measurement company ComScore, 64 percent of customers are more likely to buy a product after watching a video. After (or perhaps even before) you’ve made your case about the cost of repairs being the reason a customer should buy a service contract, show them a video that tells the story in a succinct manner. It might just be the piece that brings your presentation together and gets your customers to their purchasing decision.
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April/May 2017 AUTO DEALER NEWS
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SAFETY WATCH SOURCE: NICB
DEALERS BEWARE! Thieves Using New Technology The National Insurance Crime Bureau (NICB) says new technology is being used to not only unlock and open vehicles, but to also start and steal them. NICB recently obtained one of the so-called “mystery devices” the public was first warned about over two years ago. At the time, thieves were seen on security cameras across the country, using unknown devices to unlock vehicles and steal valuables inside. In recent months, NICB has noted reports of thieves not only opening the vehicles, but also starting them and driving away. The device obtained by NICB was purchased via a third-party security expert from an overseas company. It was developed by engineers in an effort to provide manufacturers and other antitheft organizations the ability to test the vulnerability of various vehicles’ systems. Called a “Relay Attack” unit, this particular model only works on cars and trucks that use a keyless remote and push-button ignition. In a series of unscientific tests at different locations over a two-week period, 35 makes and models of cars, SUVs, minivans and a pickup truck were tested. We partnered with NICB member company CarMax because they are the nation’s largest used car retailer and have nearly every make and model in their inventory. Tests were also done at a new car dealership, an independent used car dealer, at an auto auction and on NICB employee vehicles and ones owned by private individuals. The vehicles were tested to see if the device could: • Open the door. • Start the vehicle. • Drive it away. • Turn off and restart the engine without the original fob present. The NICB was able to open 19 (54 percent) of the vehicles, and start and drive away 18 (51 percent) of them. Of the 18 that were started, after driving them away and turning off the ignition, the device was used to restart 12 (34 percent) of the vehicles. NICB said there are a number of different devices believed to be offered for sale to thieves. Some use different technology and may work on different makes and models and ignition systems. More expensive models may have a greater range and better capabilities for opening and starting a vehicle. “We’ve now seen for ourselves that these devices work,” said NICB president and CEO Joe Wehrle. “Maybe they don’t work on all makes and models, but certainly on
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Mystery Device
Device in Action
enough that car thieves can target and steal them with relative ease. And the scary part is that there’s no warning or explanation for the owner. Unless someone catches the crime on a security camera, there’s no way for the owner or the police to really know what happened. Many times, they think the vehicle has been towed.” Wehrle said it’s important for law enforcement officers to be aware of this threat and be on the lookout for thieves who may be using the technology. According to NICB chief operating officer Jim Schweitzer, who oversees all NICB investigations, vehicle manufacturers must continue their efforts to counter the attacks on anti-theft technology. “Vehicles are a valuable commodity and thieves will continue to wage a tug of war with the manufacturers to find a way to steal them,” said Schweitzer. “Anti-theft technology has been a major factor in reducing the number of thefts
over the past 25 years. The manufacturers have made tremendous strides with their technology, but now they have to adapt and develop countermeasures as threats like this surface.” While there may not currently be an effective way of preventing this kind of theft, NICB advises drivers to always lock their vehicles and take the remote fob or keys with them. Drivers should also be on the lookout for suspicious persons or activity and alert law enforcement rather than confronting a possible thief. It’s also a good idea to never invite a break-in by leaving valuables in plain sight. And once thieves get inside, they can easily steal a garage door opener and valuable papers such as the vehicle registration that could lead them to your home. So take the garage door opener with you and take a picture of your registration on your cell phone rather than keeping it in the glove compartment.
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MANAGEMENT MATTERS
PRODUCTS & SERVICES
BY DALE POLLAK
CARS.COM ADDS PRICING TOOL Tools Provide Greater Context
RETHINK HOW YOU SOURCE AUCTION VEHICLES Adapt to Market Shifts How has your auction-sourcing process changed in the past 12 to 18 months? About a third of dealers say things are pretty much the same when it comes to sourcing auction vehicles. In many instances, dealers believe their used vehicle managers and buyers could do a better job, but they don’t feel a compelling need to make any dramatic changes. These are dealers who’ve expanded their wholesale acquisition net beyond local sources. Their focus is at least regional, if not multi-state. Managers and buyers are traveling further to find the right auction inventory for their dealerships. Other dealers are buying more online. These dealers fall into two categories: those who are learning the ropes of acquiring auction vehicles through online channels, and those who want online purchases to make up a majority share of their wholesale acquisitions. In both cases, dealers say they see online auctions as more cost-effective and efficient than sending managers to auctions to acquire wholesale inventory. I’d estimate about 20 percent of dealers have transitioned to buying solely online. Typically, the shift involves the hiring and/ or training of acquisition specialists – techsavvy individuals who spend the majority of their time researching vehicles and managing live and proxy bids to acquire cars. Here again, dealers say the change resulted from a desire to make auction sourcing less costly and more efficient. I worry the most about dealers who fall in the first group. If auctions were like fishing, these dealers would be the guys who are basically bringing the same bait and tackle to the same fishing holes, hoping to bring home the best fish. They see enough occasional success to maintain the same routine, even as the law of diminishing returns erodes their potential for success. They may even justify less-thanoptimal results with a purist-type position – the guys with the fancy baits, high-tech fish finders and tackle aren’t really “fishing,” at least not in the traditional sense. But today’s wholesale market is anything but traditional. Consider the following factors. Increased Supply Not long ago, dealers bemoaned what they considered a dearth of decent cars available at auctions. Today, we have the opposite problem – an unprecedented, and growing, level of wholesale supply that will bring a commensurate rise in vehicle value volatility and risk. Increased Competition In the months ahead, analysts say dealers
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Cars.com has introduced a new shopping tool - price comparison graphs - located on each vehicle detail page. These tools provide more context around the price of a used or new vehicle and help educate shoppers on how factors such as trim, mileage and certification impact the price of a vehicle in their market. The new price comparison graphs received strong positive feedback from Cars.com’s dealer’s circle community, with 74 percent of dealers saying the new tool will have a positive or neutral impact on their dealership.
will see fewer trade-in opportunities from new vehicle customers – a by-product of rising levels of leasing in recent years. Edmunds reports that fewer than half of new vehicle deals involved a trade-in. This market dynamic means more dealers will look to auctions to acquire the inventory they need to drive their retail sales and profit objectives. Increased Market Insight New technologies and tools are helping dealers efficiently pinpoint the auction vehicles that offer best retail potential for their dealerships, based on the front-end gross profit the vehicle might generate as well as how fast it will sell, given the number of competing units available in the market. For these dealers, there’s little, if any, guesswork involved when they make a decision to acquire an auction vehicle. Increased Margin Compression Unfortunately, the trend of the past several years will continue in the months ahead – pricing transparency and rising costs will continue to erode used vehicle profit margins. Add in the aforementioned volatility due to increased wholesale supply, and it is an ever-greater imperative to consistently buy the right auction car on the money. To me, these factors indicate a wholesale market where change is ever-present, and tomorrow’s opportunities will likely look different than they do today. That’s why I’m more confident about the future success of dealers who’ve actively been changing the way they source auction inventory. In the months ahead, they’ll be better positioned to adapt to market shifts and gain advantage. Their competitors, meanwhile, will still be arguing over whether something needs to change. Dale Pollak is founder of vAuto and has published several books on his Velocity Method of Management.
LOCAL VEHICLE PRICE COMPARISONS ARE DETERMINED THROUGH A RANDOM SAMPLING OF ALL CARS WITHIN 100 MILES OF THE LOCATION OF THE VEHICLE. The new price comparison graphs are just the beginning of several pricing features anticipated to hit the site this year. The company expects to roll out deeper feature comparison by the end of the first quarter, which will incorporate additional qualifiers such as drivetrain, engine cylinders and transmission into the price comparison graphs. Local vehicle price comparisons are determined through a random sampling of all cars within 100 miles of the location of the vehicle. For used vehicles, comparison mileage and CPO status are also factored into the price.
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SALES MATTERS BY JOHN CHAPIN
CONQUERING THE BIGGEST ENEMY OF THE SALESPERSON Distractions
A salesperson’s most important activity is talking to qualified prospects. The biggest enemy of the salesperson is anything that distracts him or her from working on that most important activity. Distractions come in many forms, some obvious and some not so obvious. Cellphone, email, false emergencies, and other similar items. Recently I was helping a call center increase their number of calls. The first thing I did was observe everyone to see how they typically make calls. I watched one individual pick up the phone, start to dial, then stop because he got a text message. He read it, responded, and then went back to the phone and started to redial. Just then an email chime sounded and he looked to see who it was from. Once again, he hung up, then redialed. He got voicemail, left a message, then brought up his CRM to enter the information for that call. For the next half hour I watched as callers got distracted by everything from the above items, to trips to the bathroom, to trips to fill up water bottles and cups of coffee. As a group, they averaged 2.5 calls in the 30 minute period. Yes, one call every 12 minutes. The key here is single minded focus. Ideally you are timeblocking as many items as possible, but especially your most important: prospecting calls. If you’re in the office, put together a prospect list and remove all distractions. Shut off your cellphone and email, clear all paperwork and other items off your desk, and focus. Make notes right on the list and enter notes into the CRM later. You may even put up a sign saying you cannot be interrupted. In any case, you have one focus for at least the next hour: make as many calls as possible. Do not be distracted by the phone or other items that may prevent you from making as many prospecting calls as possible. The group above, once they removed all distractions, was able to average 13 calls in 30 minutes, as opposed to 2.5. Paperwork. Paperwork, other than filling out an order with a customer, is for after or before prime prospecting hours. It’s okay to make a quick note, record something on an order form, or write down something you need to work on later, but you are never working on letters, proposals, or doing anything that can be done offhours. Servicing accounts. You may occasionally need to service accounts, but this should be kept to a minimum and it should only be done for the 20 percent of your accounts that are giving you 80 percent of your revenues. I see many salespeople get adamant about servicing every aspect of every account. While they justify this as taking care of the customer, they are really doing it to avoid the hard work of prospecting. You may have to do some servicing, just do as little as possible. Looking for a quicker, faster, easier way to prospect other than picking up the phone or calling in person. All prospecting should be done either in person or by phone. Skype and other similar methods are also okay. The point is to be talking live, in real time with prospects. Email, social media, mailings, and other similar indirect methods that don’t allow you to actually talk to someone, are distractions from effective prospecting and nothing more than another way to avoid the hard work of making live calls. You can and should still use these methods, but only after you have reached out via phone or in person.
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Talking to prospects who are not qualified. Stop pretending that ugly duckling is a swan. You know the truth in your gut. Either get rid of them immediately or give them one last chance to do business with you. Majoring in minor things. Minor things include: cleaning your desk, rereading the letter you’re about to send out, doing preparation work, and all other “minor” items you should be doing before or after prime time. Anything else that gets in the way of calling on qualified prospects. This could be a doctor’s visit, a car accident, an earthquake, weather, friends wanting to chat, or anything else under the sun. Regardless of what happens during the day, your primary focus needs to remain on hitting your daily number of qualified prospects. Make sure anything you have control over does not interfere with “prime time.” Do not schedule doctor or dentist appointments, the plumber, the electrician, or anything similar during prime hours. When something unexpected arises that you don’t have control over, like a car accident, weather, or similar event, ask yourself, “How can I still get all my calls in?” Your most important task every day is hitting or exceeding your prospecting numbers. Period. It is always the most important thing you do. Your creative brain will either come up with excuses to avoid this hard work or find ways to get it done regardless of what comes up in your day. Use your head and find all ways, both obvious and creative, to prevent distractions and get as many calls in as possible. John Chapin is a sales and motivational speaker and trainer. He has over 27 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling. com or email johnchapin@completeselling.com.
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MANAGEMENT MATTERS BY ADAM ROBINSON
RECRUITING STRATEGIES TO ATTRACT MILLENNIALS Key Traits
By the year 2020, the U.S. workforce will be comprised almost entirely of millennials. What’s more, Generation Y accounted for aproximately 30 percent of new vehicle sales in 2016, and that number could double in 2017. Millennials are much more apt to make a purchase from a company with whom they identify and are even more trusting of purchases from employees who are like them. As a result, companies must now clearly communicate their viewpoints and company culture to potential millennial customers, and, perhaps most importantly, employ individuals who connect with that target audience. Unlike previous generations, millennials care more about fulfillment from their careers and evaluate potential jobs on a number of factors that can cater to this need. To retain these workers, organizations must tailor internal positions and programs to meet the needs of this growing workforce demographic. Also, recruitment strategies must be updated accordingly, to attract the best candidates effectively. Companies must first identify what millennials want. Here are key traits of what they look for in potential jobs, and how that plays a role in the recruitment process. What does millennial recruitment mean for dealerships? The dealership model has been in play for decades with little to no change. But these days, millennials want to work for a company that is not only profitable but making a difference in society and providing them with perks that will fit into their personal lives. Millennial needs from employers include the following. Income Reliability Due to the challenges of making large student loan payments and covering basic living expenses, millennials as a demographic are not interested in a commission-based position where pay is unreliable. Rather, they are interested in a base pay plan that gives them the confidence of a guaranteed stream of income. In the auto industry, providing base salary positions in lieu of commission will not only attract better talent but can provide a better customer experience as well. Work Flexibility Fewer millennials today believe in the 9-5 workday but prefer instead the flexibility to integrate their personal and professional lives. In an interview with Forbes, chief strategy officer Jamie Gutfreund said 88 percent of millennials consider how a potential job will cater to their work-life balance. While it may seem more challenging to provide scheduling
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flexibility in your dealership, there are a number of options that can work for your organization. Examples include running two shifts – 9 a.m. to 3 p.m. and 3 p.m. to 9 p.m. – and perks such as giving every other weekend off. Some innovative dealerships have even moved to a “four days on, three days off” format where sales associates work four 10-hour workdays. Clear Job Titles and Descriptions Job descriptions and position titles must be updated for the millennial audience, highlighting the aspects that will fulfill their wants and needs. Outside of salaries and benefits, millennials are looking for a job with a higher purpose – one that makes them feel fulfilled. As a result, they are interested in companies focused on helping solve problems in society. In addition, because millennials are still relatively early on in their careers, they want job titles and responsibilities to outline the scope of the work clearly. They are interested in learning as much as they can to advance in their careers and want to know if a company is willing to invest in them through ongoing training and development programs. Lastly, when placing job openings online, be sure to use concise keywords and descriptors your target audience will most likely type into search engines when looking for open positions to help better connect you with ideal candidates. Consistent Communication In addition to clear communication of job responsibilities, millennials are interested in real-time feedback on the job. Because they appreciate knowing where they stand, along with the opportunity to consistently learn, maintain engagement with them by providing periodic, consistent check-ins as opposed to an annual review. A Bigger Picture As mentioned, millennials consider a number of factors from a potential position so as to feel fulfilled, maintain a work-life balance, continue career advancement and align with a company’s values. In exchange for their productivity and devotion, millennials are looking at what a company can offer them not just in monetary compensation, but how a job will fit into their overall life and society. Once you’ve successfully recruited top talent, it becomes imperative your dealership retains that employee. This is a particular challenge with the Gen Y employee. In fact, according to a recent 2016 Gallup report, 21 percent of millennials have changed jobs within the past year – more than three times the number of other generations. This turnover is estimated to cost the U.S. economy $30.5 billion annually. One of the biggest complaints millennials have is a lack of opportunities to move their career paths forward. One explanation for this is a company’s
HIRING FROM WITHIN IS MORE COST EFFICIENT AND PROVIDES YOUR MILLENNIAL EMPLOYEES THE CHANCE TO FURTHER ENGAGE WITH, AND INVEST IN, YOUR COMPANY. preference to hire externally rather than promote from within. Hiring from within is more cost efficient and provides your millennial employees the chance to further engage with, and invest in, your company. Tailoring recruitment strategies to attract top talent to your workforce, and providing them with ongoing opportunities for advancement and support, will help ensure your millennial employees will connect with your company and provide loyalty and dedication for years to come. Adam Robinson is the co-founder and CEO of Hireology and a noted recruiting industry expert, speaker and author with more than 20 years of experience in the field of hiring and selection management. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute. com) and is reprinted with permission.
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62nd Annual Convention and Expo
Hilton at Kingston Plantation, Myrtle Beach, SC August 10-13, 2017
Dealer Registration Form: First Timer Dealer #: _________ COMPANY INFORMATION: Company: ______________________________________________________ Address: _______________________City, State, Zip: ____________________ Phone: ______________________Email: ______________________________ Registration Information: Full Access Pass: All Dealer
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62nd Annual Convention and Expo
Hilton at Kingston Plantation, Myrtle Beach, SC August 10-13, 2017
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62nd Annual Convention and Expo Booth Application-Contract for Exhibit Space Hilton Hotel at Kingston Plantation, Myrtle Beach, SC, August 10-13, 2017 DATE: Friday, August 11th 2017 EXPO HOURS: 6:30 pm-9:30 pm Company Information: Product or Service: ____________________________________________________________________________________________ Company Name: ______________________________________________________________________________________________ Mailing Address: ______________________________________________________________________________________________ City/State/Zip: ________________________________________________________________________________________________ Telephone: _________________________________________ Fax: _____________________________________________________ Contact Information: Official Contact: ___________________________________ Cell Phone: _________________________________________________ Email: ______________________________________________________________________________________________________ Two Free Registrants: MUST FILL OUT ATTACHED ATTENDEE SHEET FOR ALL ATTENDEES 1. Name: ___________________________________________________ Email: ___________________________________________ 2. Name____________________________________________________ Email: ___________________________________________
APPLICATION WILL NOT BE ACCEPTED UNLESS FILLED OUT COMPLETELY CIADA Member BOOTH Non-Member BOOTH Will you need electricity? Full Page Color Ad in Convention Program? Do you want to purchase Raffle Tickets?
__Y __N __Y __N __Y __N
Early Bird Before: June 1, 2017 $1595.00 $1995.00 $50.00 $300.00 $100.00
Regular After: June 1, 2017 $1795.00 $2195.00 $75.00 $350.00 $100.00
TOTAL:
TOTAL______________ Payment Information:
Total Due___________
____Visa ____MC ____Check (Payable to CIADA)
CREDIT CARD #: ________ ________ ________ ________ EXPIRES: _____________ V-CODE: _________ CREDIT CARD BILLING ADDRESS: _________________________________________________________________________________ NAME ON CARD: ___________________________________________ SIGNATURE: ________________________________________ EMAIL (FOR RECEIPT): __________________________________________________________________________________________ The undersigned acknowledges receipt of General Information and hereby makes application for exhibit space during EXPO 2017, at The Embassy Suites at Kingston Plantation Myrtle Beach, SC, Friday, August 11th, 2017. I the undersigned have received, read and agree to comply with the Official Rules and Conditions of Contract that accompany the application. Exhibitor understands that exhibit space shall be at the discretion of Show Management. No space will be reserved or assigned until application and payment are received. Applications by fax will be accepted only if payment is made by credit card. Print Name & Title: ____________________________________________________________________________________________
Signature: ______________________________________ Date: ______________________________________________ MAIL PAYMENT TO: CIADA 5643 Harrisburg Industrial Park Drive Harrisburg NC 28075 OR by Fax: 800-992-4232
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Registration Information: Child Access Pass: 14 & under
$____________Total from page 1 Early Bird (thru 6/30/17) Member Non-Member
Regular ( 7/1/17 – 8/8/17) Member Non-Member
On Site (start 8/10/17) Member Non-Member
Welcome Reception & Expo Badge Name:
$100
$125
$125
$150
$150
$175
Badge Name:
$100
$125
$125
$150
$150
$175
Badge Name:
$100
$125
$125
$150
$150
$175
Badge Name:
$100
$125
$125
$150
$150
$175
Kids Only Party: Ages 2 -14
Saturday Night from 6:30 until 9:30
Badge Name:
Badge Name:
Badge Name:
Badge Name:
Badge Name:
Badge Name:
Must be signed up by 08/04/17
No charge for kids only party.
$ ______________Total from page 2 $______________Total from pages 1 & 2 Payment Information (full payment MUST accompany Registration Form)
I have enclosed a check payable to CIADA I am using a credit card Name on card: ____________________________________________________________ C.C. Billing Address: ________________________________________________________ C.C. Number: ____________________________ Exp: ____________ V-Code: ________ Total Authorized Amount to Charge Card: _____________________ Authorized Signature: _______________________ Date: ______________
CANCELLATION POLICY: If cancellations are received in writing before June 30, 2017, we will refund your registration fee, minus
$50.00 per person. Fees will not be refunded for registrations cancelled after July 1, 2017 or for no-shows. Photo/Video Release: By registering for the CIADA Annual Convention and Expo, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other considerations. I understand that such materials may be published electronically or in print, or used in presentation or exhibitions.
Mail or Fax this form to:
CIADA 5643 Harrisburg Ind. Pk. Dr. Harrisburg, NC 28075 Fax: 704-454-5567
www.theciada.com
Hotel Information:
Hilton at Kingston Plantation 10000 Beach Club Dr. Myrtle Beach, SC 29572 Phone: 800-876-0010 2 & 3 Bedroom Condos Available You must call the hotel to make your reservations Limited Room Block
Room Rates:
$209 + tax per night Includes: Parking, Internet, 2 adult breakfast vouchers Ck. In: 4pm Ck. Out: 11am Hotel Cancellation at least 72 hours notice, if within 72 hours will be billed for 1 night room & tax
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Quality Dealer of the Year Award Carolinas Independent Automobile Dealers Association Official Nominating Form
TO THE QUALITY DEALER NOMINEE: Congratulations on being selected as a nominee. Upon submission of this official nomination form, you become a nominee for State Quality Dealer of the Year. Our judges have asked that this nomination form be completed in as much detail, and with as much documentation as possible. Please submit all the information requested. Upon completion, return this form to the Executive Director of CIADA. This form must be submitted to CIADA by May 1, 2017. Deadline must be strictly adhered to in order that all entries may be judged fairly and fully. Thank you for your cooperation. Name of sponsoring state officer:________________________________________________________________ Full name of nominee:________________________________________________________________________ Name of dealership:__________________________________________________________________________ Title in dealership:____________________________________________________________________________ Address of dealership:________________________________________________________________________ Business telephone:____________________________
Home Telephone:__________________________
Dealer’s home address:_______________________________________________________________________ BIOGRAPHICAL INFORMATION (Please enclose photograph - 3” x 5” or larger) (may be a family photograph) Dealer’s age:____________ Date & place of birth:________________________________________________________ Educational history:_________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ Family:
Married:________ Widowed:________ Divorced:________ Single:________
Spouse’s Name:___________________________________________________________________________________ Children (name & ages):_____________________________________________________________________________ AUTOMOTIVE CAREER When, where, and how you started in the automotive business:_______________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ Special facts of interest relating to your automotive career:__________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________
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CIADA / Waymaker Learning COMMUNITY SERVICE AWARD NOMINATION 2017 Independent dealerships across the nation contribute every day to their communities. Waymaker Learning and the CIADA believe in community involvement and want to recognize those dealerships that selflessly give back within their communities. Dealerships contribute in many ways—through special projects, through sponsorships, financial contributions, or by leading innovative community improvement activities. This award was created to honor those independent dealerships. Nominees must be members in good standing of the Carolinas Independent Automobile Dealers Association and nominations may be submitted by the dealership, a community business or organization, the state independent automobile dealers association, a community member or even a loyal customer. Three finalists will be selected and the winning dealership will be named on August 12, 2017 at the Gala/Awards Banquet during the Carolinas Independent Automobile Dealers Association Convention and Expo in Myrtle Beach. Please complete this nomination form and submit, along with the required Nomination Packet Contents, by May 1, 2017 to the Community Service Award Selection Committee, CIADA, 5643 Harrisburg Ind. Park Dr. Harrisburg, NC 282075 NOMINEE INFORMATION Name of Dealership_______________________________________________________________________________________________ Owner(s)________________________________________________________________________________________________ Address of Dealership______________________________________________City___________________________State_____Zip_______ Website_______________________________________Email____________________________Phone____________________ Fax_________________ NOMINATION PACKET CONTENTS Dealership History: Outline the background of the dealership. Include the establishment date and key players that helped to build the dealership’s success as well as any special stories that apply. Community Involvement Activities: Summarize the dealership’s support and service to the community. Please include any pictures that help tell the story. Letters of Recommendation: Include letters that reflect the dealership’s community participation and support. Nomination submitted by: __________________________________________________________________________________ Print Name: ______________________________________________________________________________________________ Company & Address: ___________________________________________________Address________________________________________________ City____________________________________ State __________ Zip _________Phone: __________________________ Signature: ____________________________________________________________________Date____________________________________
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ASSOCIATION NEWS
SCHOLARSHIP CRITERIA AND GUIDELINES Normally two scholarships of equal value shall be offered each year. One will be for the state of North Carolina and the other for South Carolina. If a particular state does not have an applicant for the current year’s award, the winner(s) will be awarded from those qualifying applications received. 1. The CIADA will review and determine the number of scholarships given (if different than described above) and the amount to be awarded each year. The scholarship will be disbursed by CIADA to the school of the recipient’s choice. 2. A runner-up will be selected from each state to replace the winner who might decline a scholarship. 3. Applicants must be a child, grandchild or spouse of a CIADA member dealer. They must be sponsored (recommended) by a CIADA member in good standing. 4. Applicants must be a full time student enrolling or enrolled in a college, university, business, or trade school. They must submit a CIADA application form, along with their appropriate transcript (high school or college), Scholastic Aptitude Test scores or equivalent test scores, information on special interests and activities, and three letters of recommendation. 5. Applicant forms and information will be provided through CIADA headquarters and its publications. Applicants should return their application to CIADA headquarters: 5643 Harrisburg Ind. Pk. Dr., Harrisburg, NC 28075. CIADA will verify their eligibility and forward the application to the scholarship committee. 6. A scholarship committee will be appointed by CIADA each year to coordinate publicity, deadlines, select judges, and to oversee the selection process and notification of winner(s). Applications must be submitted by May, 1, 2017. 7. The Scholarship Committee shall select judges. They must be independent of CIADA and the automobile industry. Selection of scholarship winner(s) will be made by June 15, 2017. 8. Scholarship winner(s) will be notified of their selection prior to the CIADA convention held in August, and an announcement of their selection will be made during the convention. The time and place of the announcement shall be determined by the convention program committee.
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SCHOLARSHIP APPLICATION Name: ________________________________________
Date of Birth: ________________
Address: _____________________________________________________________________ Phone Number: __________________
Parent/Guardian: __________________________
Affiliated with CIADA Dealer Member/Dealership Name: _______________________________ Relationship to Dealer: ____________________________________ (child, grandchild, spouse) High School Attended: __________________________________________________________ High School Address: ___________________________________________________________ Attended from: ___ /___ /______ to ___ /___ /______ Graduation Date: _________________ School Activities, Honors: ________________________________________________________ _____________________________________________________________________________ Other Activities, Interests and Accomplishments: ________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Schools which you have applied to, will apply to or are attending: _______________________ _____________________________________________________________________________ CIADA Sponsor Name (recommended by): __________________________________________ Business Name: ________________________________________________________________ Address: ________________________________ Phone Number: ______________________ Sponsor’s Statement Supporting Nominee: __________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Sponsor’s Signature: ____________________________ Date: __________________________ Applicant’s Signature: ___________________________ Date: __________________________ Send application, school transcript, SAT or other entrance test results, and three letters of recommendation to: CIADA, 5643 Harrisburg Industrial Park Drive, Harrisburg, NC 28075. For more information call 1-800-4324232 or fax 1-800-992-4232 (attach additional sheets as necessary). Must Be Post Marked By May 1, 2017.
www.theciada.com
www.theciada.com
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