C A R O L I N A S I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O N A P R I L / M A Y 2 01 9
AUTO DEALER NEWS THE “WOW” IS WORTH IT! CREATE BETTER EXPERIENCES
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ACCELERATE |
By GWC Warranty
IS YOUR REPUTATION IN GOOD HANDS?
component coverage or a look at the contract itself, having this in place helps customers know exactly how they’re covered. Find a Shop A customer’s nightmare is a mechanical breakdown far away from home. A nationwide network of service facilities is one thing but being able to easily find a shop in an unfamiliar area is another. This online application takes the worry out of an out-of-town breakdown. Quick Answers These days, consumers demand answers, and they demand them quickly and on their terms. Having a service contract provider that allows customers to submit questions via online forms, live chat or social media
gives customers multiple options, so they can get answers in whatever way suits their busy schedules. Good Reviews Online reviews in today’s automotive industry are vital to success. The same goes for service contract providers. Stick to trusted sites like Google (sometimes hidden in the maps section), Facebook, or Consumer Affairs and look beyond just star ratings. While overall ratings are important on the surface, looking at how often a service contract responds and the frequency with which customers leave reviews will give you a sense of how that provider cares for your customers.
CHOOSE YOUR SERVICE CONTRACT PROVIDER WISELY
Unfortunately in the used car business, your reputation after the sale can sometimes be out of your hands. Once that aspect of your business is out of your control, you need to be sure it’s protected in the hands of someone you trust. If you’ve been in the business long enough, you know that despite the best reconditioning and the best inventory selection, you’re bound to run into vehicles that encounter issues after the sale. When this happens, it’s your reputation on the line. How these fragile situations are handled can have long-lasting impacts on your reputation in your market.
Partnering with a service contract provider that has the tools in place to take care of your customers the way you’d want them treated is perhaps the most important thing you could do to protect your reputation when your customer’s experience is out of your control. That’s why you need to know some specifics about what your service contract provider has to offer so you can be sure your customers are in good hands after they drive off your lot. Coverage Lookup A simple online coverage lookup tool is a great way for customers to learn details about their contract on a moment’s notice. Whether it’s start or end mileage, expiration dates, WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 3
INSIDE
05...................Make Phone Tag a Thing of the Past 06..........................................The “Wow” is Worth it 08......................................Successful Salespeople 10.................................. NIADA Government Report 14.....................................Finding Good Cheap Cars 16..................................2019 CIADA Class Schedule 22...................................................Dealer Spotlight
ADVERTISERS INDEX
Auto Auction of New England................................7 AutoZone................................................................5 Carolina Auto Auction........................................ IFC Charleston Auto Auction.......................Back Cover Manheim............................................................... 11 NextGear Capital................................................ 8-9 Protective............................................................. 15 vAuto ................................................................. IBC Warrantech............................................................17
WHAT’S NEW
CONVENTION R E G I S T R AT I O N O N L I N E Registration for the 73rd annual NIADA | NABD Convention & Expo is now online! You don’t want to miss this industry-leading mega-conference! The event is June 17-20 at the Venetian in Las Vegas. Learn more and register today at www. niadaconvention.com.
OFFICE
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
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. 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 © 2019 by NIADA Services, Inc.
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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CIADA BOARD MEMBERS IMMEDIATE PAST CHAIRMAN
SC VICE PRESIDENT
Darla Booher Deal Depot Inc. Greer, SC 29651
Kevin Pendergrass Carolina Auto Sales Myrtle Beach Myrtle Beach, SC 29577
CHAIRMAN
NC VICE PRESIDENT
Kim Bradshaw 1st Nations Auto Sales Burlington, NC 27217
PRESIDENT
Darryl Jackson Crown Automotive Sales and Finance Rock Hill, SC 29732
PRESIDENT-ELECT
Steve Matthews Matthews Motors Inc. Clayton, NC 27520
ACCELERATE
Steve Wetmore McAdenville Motors Gastonia, NC 28056
TREASURER
Michael Threadgill Vans Auto Sales Florence, SC 29506
STAFF
John Brown Executive Director 5643 Harrisburg Industrial Park Drive Harrisburg, NC 28075 Office: 704-455-8060 Cell: 704-578-2015 Jbrown@theciada.com Squeekie Henry Education & Training Office: 704-455-8061 Cell: 704-578-0838
SECRETARY
Jerry Padrick M&M Auto Sales Lumberton, NC 28358
| By GWC Warranty
WHEN YOU CAN’T SELL MORE, SELL SOMETHING BETTER
IMPROVE BACK-END PROFITS Let’s look at ways you can begin upselling more often and improving back-end profits even when your service contract penetration is right where you want it. Start the Conversation Early Advertising basic level coverage, like with a Certified program, helps plant the seed early on and gets customers on board with the principles behind service contract protection. Once customers are bought in on the ground floor, you then have the foundation needed to get them to a higher level of coverage. Stick with What Works Over and over, you’ll hear mention of the menu approach and the 300 percent rule. Both are proven tactics that can be repeated in the F&I office for consistent success. Presenting good, better, and best options and working your way down from the top coverage you offer is the best way to help customers see the value in richer coverage.
And it’s important that you do this every time, without exception. Practice Makes Perfect Not just with the menu technique but also with overcoming objections, the more you practice, the more successful you’ll be. You can schedule workshops with your team or work on your skills with on-demand online resources like Virtual Training to ensure you and your team stay sharp in these critical areas. Keep the End Result in Mind Better coverage means increased profits and happier customers. Don’t discount the long-term profit opportunities and repeat business that can come as a side effect to selling better coverage. When your customers are well protected and can avoid out-ofpocket repair bills, they’ll undoubtedly sing your praises to family and friends and on review sites across the web.
MARKETING MATTERS
| By Christopher Leedom
MAKE PHONE TAG A THING OF THE PAST OPTIMIZE COMMUNICATION WITH SMS
How many of you are frustrated by the volume of voicemail – both left and received – during the average workday? Whether it is for sales, service or collections, your staff leaves dozens, if not hundreds, of voicemails every day. It has probably become one of the biggest drains of productivity and labor – though nevertheless necessary – until now. Do I have you scratching your head a bit? First, let me issue a challenge. Identify one employee in your dealership or finance company that interacts with your customer base on a daily basis – for instance, a salesperson, collector or service advisor. Next, identify 20 customers you need to communicate with that particular day. If you are a working with a collector, pick 20 accounts that just became delinquent. If you are in sales, pick 20 customers that need follow up. Take 10 of these customers and send them an SMS message initiating communication with them. Sales, service, or collections – it doesn’t matter. Call the other 10 customers, leaving a voicemail initiating communication if you don’t reach them. By the time you get done calling the 10 “phone call” customers, chances are 50 percent
of the SMS customers will have already texted you back! Why? Because 93 percent of SMS messages are read within 10 minutes and a return text is usually sent within 20 minutes. How does that compare to the voicemails? It’s no contest. You probably will connect with two or maybe three of the outbound phone calls and will likely leave seven or eight voicemails. I have observed this exercise with countless operations. Our organization has worked with thousands of dealers and finance companies over the past 20 years. When we started Textmaxx Pro four years ago, I could not have predicted the impact on productivity. We see it not just in the auto space, but across virtually every industry we serve. In today’s world everyone returns an SMS message well before returning a voicemail. There are countless studies that prove this. So how do you optimize your SMS messaging strategy? First, think of it the same as your phone system. You need a tool that is proprietary and resident to your business that will serve your SMS communication needs, and ensure compliance. I hear too many dealers say, “My employees are really good at texting – they use their
personal phones.” I cringe. Think about it, would you utilize your salesperson’s personal phone number when advertising on the web or in television commercials? Would you give each employee a copy of their entire CRM activity when they leave your dealership to work elsewhere? That is precisely what you are doing if you do not have a product that allows you to store, monitor and control all SMS activity. It doesn’t matter whether it is sales or collections. You need to retain and control those conversations for a host of reasons, not the least of which is compliance – but that is a topic for an entire article itself. If you want to eliminate – or at least greatly reduce – the wasted time and effort of phone tag, implement a well thought out customer contact strategy where SMS communication is your first form of communication. You will be amazed at the impact it will have on employee productivity. It is an incredibly effective way to communicate with your customers. In my opinion, it is even more effective in collections or service, where you already have a relationship with the customer. Studies show SMS messaging to be the preferred method of communication of most customers, across virtually every demographic. It is hands down the most efficient mode for just about every conversation. Chris Leedom is the CEO and founder of the Leedom Group. The Leedom Group includes Textmaxx Pro, a complete SMS messaging solution for small to medium businesses with a custom design for the automotive industry. You may reach Chris at chris@leedomgroup.com.
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COVER STORY MANAGEMENT MATTERS | By Dave Anderson
THE “WOW” IS WORTH IT! CREATE
BETTER
EXPERIENCES
In his book Never By Chance, Joe Calloway said, “A brand is defined as a trademark or distinctive name, reputation, or capability that identifies and differentiates a product or service from the competition, for better or for worse.” Every company has a brand. That’s not the question. Does your brand positively differentiate you or render you to commodity status? Does it elevate or diminish the value people see in doing business with you? To delve deeper, a brand isn’t primarily about your logo, jingle, or creative graphics. These things may explain or reinforce your brand, but they aren’t your brand. Nor is building a powerful brand for your dealership accomplished through big ad budgets and slick promotional campaigns. Building a powerful brand happens when you create a culture that supports consistently creating “wow” customer experiences, and by hiring and training the right people at all levels within your organization capable of consistently delivering said experiences. Focus more on the “reputation, or capability that identifies and differentiates you from the competition” aspect of the brand than on a logo, trademark, or distinctive name to communicate it. As a leader, it’s your job to make sure this gets done daily, and that chasing greater excellence in this regard is a priority for every team member. Here are some supporting thoughts and strategies to help refine your focus on intentionally building and leveraging the power of your brand. · T he bottom line is your brand is defined by customer experiences. You may declare what your brand is, but a customer defines it based on his or her experience with your company or product. In short, whatever a customer thinks about when they hear your dealership mentioned – which will be based on either a personal experience or one they’ve heard about from others – is your brand. You can say what you want about who you are, but your customers believe what they experience – and that is your brand. · I n case the prior point wasn’t clear enough, let me rephrase it slightly: Nothing is more important than customer experience when it comes to brand management. If you want to improve the strength of your brand, you must elevate the quality of the experiences you’re creating for both team members and customers. That starts
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with hiring the right people at the outset, setting clear expectations for the experiences you want created (experiential standards) and training team members to deliver that experience while holding them accountable for doing so. · A key to customer experience is consistency of performance. The more consistently great the experience is between departments, the stronger the brand. The greater variation you have between departments concerning the customer experience, or between your various locations, the weaker the brand. One bad apple in this regard will afflict the whole batch. · T he best answer to the question, “Who on our team would create the most outstanding customer experience?” is “Any of them!” If you can’t give that answer, you have work to do, and lots of it. · T he best way to influence a great customer experience is to create a great employee experience! Rest assured, if your team members aren’t having a “wow” experience working for you they’re not as likely to create similar experiences for your customers. Incidentally, micromanagers, oppressive work schedules, lack of training, hiring recklessly, inconsistent management, hypocritical leaders, tenured non-performers and more all drain the “wow” out of the workplace for team members. · K eep in mind that even team members who are far removed from direct customer contact have a “ripple effect” impact on the customer experience. This is because of the effect they have on other employees. Naturally, if a co-worker is negative, incompetent, corrupt and indifferent, he or she will diminish the experience of teammates, causing frustration and lower morale – all of which has the potential to trickle down and affect the experience a teammate is trying to create for a customer. There’s much more to say about building your brand, but since the focus of this piece is on perfecting the customer experience, take some time with key team members to honestly evaluate these questions and address the answers you’re unhappy with: · A re the processes and protocols we have in place designed to just meet a customer’s expectations, or are they intentionally designed to get the “wow?” In either case, how can we do better? · D o we have variation in the customer
experience between departments or locations? If so, why is that? How do we fix it? · H ow often do we talk about getting the “wow” in meetings, during one-on-one coaching sessions, in the interview process, and during onboarding periods? Since you can help change a culture by changing the conversation, what more can we do to shine a brighter light on this key responsibility for each team member? · D o we realize our frontline team members (porters, sales associates, service advisors, receptionists and the like) have more daily opportunities to create a customer experience than the management team since they come into contact with more customers? How much training have they had on creating “wow” experiences? What training could we implement to improve the customer experience, starting with the onboarding of new associates? · D o we have experiential standards for our organization that clearly define guidelines for the things we will always do – and never do – with a customer or when speaking with a customer? Are all departments and locations on the same page with these standards? If not, how and when do we fix it? · D o you know how your experience is significantly different and better from those your competitor delivers – from meet and greet, to customer touch points, to your various processes, to the language you use, to follow up, to communication protocols for service, to what they do while waiting to get into F&I, and the like? If your answers aren’t many and compelling, you’ve got more work to do. If this seems like a lot of work, that’s because it is a lot of work. I never said building a great brand through “wow” customer experiences is easy. But I can assure you it is worth it. And if your people and dealership are continually in price battles to be the cheapest so you can get the deal, there’s a better way: create improved experiences and the price becomes less relevant. People pay more for better experiences, and they return for more and tell others to do likewise. Believe me, whatever it costs you in time, training, or dollars to build a “wow” brand, when all is said and done, the “wow” is worth it. Dave Anderson, “Mr. Accountability,” is a leading international speaker on personal and corporate performance improvement. He is also the author of 14 books and host of the podcast, The Game Changer Life.
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SALES MATTERS | By John Chapin
SUCCESSFUL SALESPEOPLE
THE
TWO
MOST
IMPORTANT
CHARACTER
TRAITS
We know there are many character traits that determine long-term sales success or failure. That said, I find there are two key traits that really separate the cream of the crop. T WO K E Y T R A I TS O F TO P P RO D U C E R S Extreme Ownership The most successful salespeople take complete ownership of everything in their life, and I do mean everything. From sales numbers all the way to car accidents, they see themselves as ultimately in control of, and responsible for, anything related to getting their job done and meeting obligations. They are empowered so when something goes wrong they can immediately grab the bull by the horns and do what they must to remedy the situation. They don’t spend time complaining, playing the victim or throwing their hands up in a “what’s the use, it’s out of my control” fashion. I’ve seen the best salespeople overcome weather, power outages, tornadoes, car accidents, trips to the hospital, and almost everything else you can imagine to make sales calls and hit their numbers. If you
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have a meeting scheduled with them and the world is coming to an end, you can bet they’ll be there. Top salespeople are committed to and completely accountable to their clients, their family, themselves, their company and coworkers, and everyone else they come into contact with. They are hard-working self-starters and have the willingness to push themselves harder than anyone else can possibly push them. You don’t need to look over their shoulder to make sure they’re doing what they should be doing. They understand they have an obligation to their clients, and to the company that pays them, to go above and beyond and put in maximum effort. Top producers are completely sold on their product to the point that if it’s something they can own, they do, along with their family and friends. They have conviction and are passionate about helping others while saving people from the competition who, at best, will not take as good care of them as they will and at worst will even take advantage of them. They have a willingness to go far above and beyond for prospects and clients and will do anything and everything to win fairly and ethically. Top producers understand that success is completely up to them. They take complete ownership – extreme ownership – reminding themselves they are 100 percent responsible for their success. If they fail, they own it. Everything begins and ends with them. They don’t blame anyone or anything outside of themselves.
You won’t hear them complaining about the competition being cheaper, the supposed bad market or the new industry regulations. They know that even in the toughest of conditions, someone is thriving, and they’re determined it’s going to be them. You also won’t hear them blaming outside forces for a lost sale, past failure, or anything else that has put them in their present position in life. Extreme Drive and Determination The best are extremely driven and determined. They know why they are doing what they are doing and they know who and what they are doing it for. They know superstars aren’t super-human – they are average, flawed individuals just like the rest of us. The difference is they’ve found a reason, a purpose within them, that gets them up early, keeps them up late and keeps the fire of motivation and determination burning brightly within them, and they use it to outwork everyone. The champions are like extreme athletes when it comes to dedication, commitment and preparation. They make do-or-die commitments. They do whatever it takes to make their dreams and vision a reality and are willing to fight for what they believe in. Top producers realize there is no such thing as get-rich-quick or overnight success. They know you must pay the price for success in advance, and they do. They are willing to suffer and put in lots of work and they don’t require immediate rewards or payoff. They are willing to work like no one else will for three, five or 10 years
or more to live the rest of their life like no one else can. Top salespeople understand that one of the biggest enemies of long-term success is the comfort zone, which can cause us to lose our fire. To defend against this, the great ones create a mission statement that is so magnificent they need to constantly be growing and expanding to fulfill it. They also surround themselves with people who continually challenge them and force them to grow. From time to time they assess their values and what’s really important to them because they understand that priorities change as we go through life. They continue to make larger, grander goals and plans so as they approach the achievement of one goal they have a bigger one to keep their motivation strong. Finally, the best understand that sheer will and determination will pretty much overcome any obstacle and take you anywhere you want to go in life. They apply that will and determination at a level few humans are willing to match. They decide on a goal and then cut off all avenues of escape. They burn the boats behind them. They make the decision to climb the mountain knowing they are either getting to the top or dying on the side of the mountain, but they are not coming down – they aren’t quitting. It’s all-or-nothing, do-or-die. John Chapin is a sales and motivational speaker and trainer. He has over 31 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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NIADA Region II vice president Michael Darrow (left) with Senate Majority Leader Mitch McConnell. t
WASHINGTON UPDATE | By Shaun Petersen
GOVERNMENT REPORT
t Texas IADA executive director
Jeff Martin (left) and NIADA’s Shaun Petersen (second from right) met with Speaker of the House Nancy Pelosi and Rep. Henry Cuellar.
t NIADA and used car industry leaders visited Capitol Hill for a series of meetings with legislators and key committee staff.
Latest Government Issues & Activity
NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. PAC NIADA met with the Speaker of the House of Representatives, Rep. Nancy Pelosi (D-Calif.), on Feb. 21 in San Antonio, Texas. The meeting was arranged by Rep. Henry Cuellar (D-Texas), a longtime friend of the independent used vehicle industry and a featured speaker at the NIADA National Policy Conference in 2016. Texas IADA executive director Jeff Martin and I attended the event, which also included Rep. Joaquin Castro (D-Texas). The group was small, allowing us an ample opportunity to speak to all three legislators about the used vehicle industry and explain NIADA’s positions on some of the issues affecting it. Five days later, members of NIADA’s executive committee, legislative committee and Buy Here-Pay Here commission traveled to Washington for a series of Congressional meetings, sponsored by PassTime. It began Feb. 26 with an event for Sen. John Cornyn (R-Texas) that drew more than a dozen senators, including Senate Majority Leader Mitch McConnell (R-Ky.), Sen. Ted Cruz (R-Texas), Sen. Jerry Moran (R-Kan.), Sen. Susan Collins (R-Maine), Sen. John Thune (R-S.D.), Sen. Lamar Alexander (R-Tenn.), Sen. Marsha Blackburn (R-Tenn.) and Sen. James Lankford (R-Okla.). We were able to speak with all of them about our industry and our issues. The next day we met with freshman legislators as well as new committee chairs and ranking members of the 116th Congress and discussed issues expected to be considered during the next two years, including recalls, CFPB reform, privacy issues and tariffs. The NIADA group met with the members of the House Financial Services, Energy and Commerce, and Transportation committees, and the Senate Banking and Commerce committees.
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REGULATORY More than 7 million people were at least 90 days delinquent on their car payment at the end of 2018 – an all-time high and more than a million more than in 2010 – according to a report from the Federal Reserve Bank of New York’s Center for Microeconomic Data. The New York Fed called that number, based on data from Equifax, “surprising” considering the strong and growing economy and shrinking unemployment. But in a post on the Liberty Street Economics blog, Fed economists Andrew Haughwout, Donghoon Lee, Joelle Scally and Wilbert van der Klaauw pointed out there are more delinquencies than ever before in part because there are more total borrowers than ever before. More than 89 million people now have some form of auto financing, the most on record since the Fed and Equifax began compiling that data in 1999, with a total balance of $1.27 trillion, another record. “With growth in auto loan participation, there are now more subprime auto loan borrowers than ever, and thus a larger group of borrowers at high risk of delinquency,” they explained. And they noted the quality of borrowers is trending upward, saying, “2018’s strength in auto loans was primarily driven by those originated by the most creditworthy individuals, while originations to those with scores below 720 have leveled off, albeit at high volumes.” The large volume of loans, they said, caused a “quality shift,” as borrowers with credit scores better than 760 accounted for 30 percent of the outstanding debt. Only 22 percent was originated to subprime borrowers. “These percentages would suggest the overall auto loan stock is the highest quality we have observed since our data began,” they said.
LEGISLATIVE Executives from Equifax, Experian and TransUnion were called to testify before the House Financial Services Committee, which is considering changes to the credit reporting system. The committee noted it has been 15 years since the issue of credit reporting has undergone “comprehensive reform” at the federal level, and cited Equifax’s massive 2017 cybersecurity breach in asserting “there are numerous shortcomings with the current system that need to be addressed.” In his testimony, TransUnion president and CEO James Peck said the U.S. economy provides more “quick and straightforward access to credit” than any in the world, and he offered the committee six ways the credit reporting process could be improved, calling for more timely updates of critical credit events, establishing new standards for reporting student loan data, increasing the number of Americans able to access credit, helping improve scores and access to credit innovations, protecting Social Security numbers and enhancing financial education. GRASS ROOTS A report by New Jersey’s State Commission of Investigation alleging widespread wrongdoing by “predatory” used car dealers has spawned a pair of bills in the state legislature aimed at tightening regulations in the industry. The report focused primarily on “multi-dealer locations” – locations that provide an address for “dealers” who do not have a lot or who operate in other states. The report described them as fronts for shady operators to obtain a dealer license. Assemblyman Paul Moriarty, the bills’ primary sponsor, said the report showed “the New Jersey used car industry – specifically the multi-dealer locations – is rife with fraud and deceit and in some cases unlawful activity.” One of the bills would prohibit “as is” sales in the state, increase the limitations of the implied warranty on used cars and require dealers to offer contract cancellation options. The other would transfer licensing and enforcement power from the state’s Motor Vehicle Commission to the Department of Consumer Affairs in the attorney general’s office. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
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MARKET PERSPECTIVE | By Doug Hadden
FINDING GOOD CHEAP CARS
PART
3:
NEW
TECHNOLOGY
In the first installment of this three-part series, we looked at how to take advantage of upstream online auctions. Upstream is just a fancy way of saying “before the vehicle is shipped to physical auction.” We focused on OLOCs (One-Owner, Low-Mileage, Off-lease Cars) and learned how to acquire affordable cars your customers want, without having to go to a physical auction. In the second installment, we looked at buying real-time in multiple lanes, at multiple auctions, right from your desktop, laptop or phone! Since these articles, I have received a lot of great feedback and even trained some folks on how to buy cars live online – including easily accessible options like ADESA’s simulcast platform that allows dealers to bid virtually, in real time, on cars in the lane. One dealer said, “I may never go to a physical auction again.” Another dealer I worked with loves going to the physical auction. After training, he was standing in the auction lane bidding on cars as they drove through while also on his phone – bidding on cars at the same auction, at the same time, but in different lanes, and even checking proxy bids on cars at other auctions. Technology is opening new doors of opportunity for dealers, giving them a competitive edge like no other. This month we will look at new technology that is changing the way we buy and sell wholesale vehicles. When I owned my pre-owned lot many, many years ago, besides attending two local auctions every week, I spent every Monday morning stopping at Starbucks buying coffee and pastries I would take to my favorite used car manager who ran a large new car franchise. I usually arrived at the store as soon as the service department opened the front gates so I could look at and book out all the weekend trades before the UCM arrived. I would list what I wanted to pay for each car and what it needed for reconditioning on my yellow pad, head to his office and wait. We would grind out prices and two or three hours later I would call some drivers and get my new inventory to reconditioning. Not only did I have to get up at the crack of dawn, pay too much for a couple of rundown cars to get the ones I wanted (the old “package deal”), but I also burnt half a day away from my lot. Needless to say, this wasn’t a very efficient use of my time or inventory dollars. Fast forward to last week. I’m sitting at lunch with a friend who owns a small preowned lot, talking about how hard it is to find good cheap cars. His phone gives off
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a chirp. He quickly taps his phone, scrolls through a couple of screens, pounds out some numbers on his phone calculator, taps his phone one more time and gets back to our conversation. What was he doing? He was bidding on a car that was traded in at a new car franchise less than two hours ago. That’s right, sitting at lunch bidding on fresh trades and in the time it took to eat his burger, he owned the car! There are a few companies in this stillgrowing, dealerto-dealer digital auction space. I’m most familiar with ADESA’s sister company TradeRev, a mobile app that sends notifications to your phone as new car franchise dealers launch cars to a 45-minute on-demand, digital auction. You can view multiple photos, watch videos and even listen to the engine run. Settings allow you to customize your experience, enabling you to create alerts for only the types of cars you want – so you spend less time looking and more time buying. Think about the efficiencies this technology brings to the industry. With built-in artificial intelligence and machine learning, you can find the right car at the right price, in a transparent and fair process, all in about an hour. You can have funding, titling and transport pre-arranged in the app so when you win a car it quickly appears on your lot. And what about the seller? We know the longer you keep a car in stock the less gross you get – the dreaded “lot rot” is real. Even when you hit a home run on an aged unit, if you do the math on a profit-per-day basis, the ROI is weak at best. What would wholesaling a trade the same day it’s brought into inventory do for the average inventory turn time? It’s a win-win for both buyer and seller! The industry is changing, but so is the technology we use to run our operations. If you have not embraced buying cars upstream, live online from your PC, laptop or phone, or the newest app-driven one-hour, on-demand auction, you may want to rethink your business plan.
I’m not saying you can’t continue doing what you’re doing now and be profitable. I’m saying there is technology out there that can and will help you be more efficient – which leads to higher profits with less effort. Mastering these new, high-tech systems and apps is so easy there is no reason not to give them a try. I’ll even help you get started. Email me at Doug.Hadden@ADESA.com and I will set up some time for training you on one or all of the new technologies discussed in these articles. Once you get comfortable using the new tech, not only will you be more efficient and profitable, you may also have time left over to do other things you haven’t been able to do, like spending more time with family and friends! Until next time – have fun and sell cars! Doug Hadden is executive director of dealer consulting services for ADESA Auctions Inc. He can be reached at Doug. Hadden@adesa.com.
WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 15
ASSOCIATION NEWS
2019 CIADA CLASS SCHEDULE
APRIL 4-5 NCPLE 9 CE 10 CE 12 SC PLE 16 TAG 16 SCPLE 23 CE 25-26 NCPLE 30 TAG
COUNTRY INN GREENSBORO AA CIADA HQ WINGATE ($199) WINGATE WINGATE MANHEIM NC KENLY CIADA HQ DARLINGTON AA
MORRISVILLE GREENSBORO HARRISBURG CHARLESTON, SC LEXINGTON LEXINGTON KENLY HARRISBURG DARLINGTON
WEDNESDAY TUESDAY TUESDAY TUESDAY THURS-FRI TUESDAY WEDNESDAY
CIADA HQ WINGATE WINGATE MANHEIM NC AA CIADA HQ WINGATE GREENVILLE AA
HARRISBURG LEXINGTON LEXINGTON KENLY HARRISBURG CHARLESTON GREENVILLE
SC PLE NC PLE CE CE SCPLE NCPLE
TUESDAY THURS-FRI TUESDAY THURSDAY TUESDAY THURS-FRI
DARLINGTON AA CIADA HQ MANHEIM NC AA GREENSBORO AA COMFORT SUITES COUNTRY INN
DARLINGTON HARRISBURG KENLY GREENSBORO LEXINGTON MORRISVILLE
SC PLE CE THURS-FRI CE SCPLE CE
TUESDAY WEDNESDAY TUESDAY TUESDAY TUESDAY THURSDAY
WINGATE ($199) CHARLESTON CIADA HQ HARRISBURG CIADA HQ HARRISBURG MANHEIM NC KENLY KENLY CAROLINA AA ANDERSON GREENSBORO AA GREENSBORO
MAY 1 CE 7 TAG 7 SCPLE 14 CE 16-17 NCPLE 21 SCPLE 29 CE
JUNE 4 6-7 11 13 25 27-28
JULY
9 10 11-12 16 23 25
THURS-FRI TUESDAY WEDNESDAY FRIDAY TUESDAY TUESEDAY TUESDAY THURS-FRI TUESDAY
16 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
AUGUST
1-2 8 9 9 20 22 28 29-30
NCPLE SC PLE CE TITLE CLASS CE SCPLE CE NC PLE
THURS-FRI THURSDAY FRIDAY FRIDAY TUESDAY THURSDAY WEDNESDAY THURS-FRI
MANHEIM NC KENLY HILTON CONV ($199) HILTON @ CONV HILTON @CONVENTION MANHEIM NC KENLY COMFORT SUITES CIADA HQ CIADA HQ
KENLY MYRTLE BEACH MYRTLE BEACH MYRTLE BEACH KENLY LEXINGTON HARRISBURG HARRISBURG
S EPTEMBER
10 CE 12 SCPLE 17 CE 19-20 NCPLE 28 NCPLE
TUESDAY CIADA HQ THURSDAY WINGATE TUESDAY MANHEIM NC AA THURS-FRI CIADA HQ SATURDAY CIADA HQ 8AM-8PM
HARRISBURG CHARLESTON KENLY HARRISBURG HARRISBURG
OCTOBER
1 3-4 17 22 23 24-25 30
SCPLE NCPLE CE SCPLE CE NCPLE TITLE CLASS
TUESDAY THURS-FRI THURSDAY TUESDAY WEDNESDAY THURS-FRI WEDNESDAY
DARLINGTON AA ($199) DARLINGTON MANHEIM NC AA KENLY GREENSBORO AA GREENSBORO COMFORT SUITES LEXINGTON CIADA HQ HARRISBURG CIADA HQ HARRISBURG CIADA HQ HARRISBURG
WEDNESDAY TUESDAY THURS-FRI TUESDAY TUESDAY
COMFORT SUITES MANHEIM NC KENLY CIADA HQ HAMPTON INN CIADA HQ
LEXINGTON KENLY HARRISBURG HENDERSONVILLE HARRISBURG
THURS-FRI MONDAY THURS-FRI TUESDAY THURSDAY FRIDAY
COUNTRY INN COUNTRY INN CIADA HQ MANHEIM NC AA CIADA HQ GREENSBORO AA
MORRISVILLE MYRTLE BEACH HARRISBURG KENLY HARRISBURG GREENSBORO
NOVEMBER
6 12 14-15 19 21
SCPLE CE NCPLE CE CE
DECEMBER
5-6 9 12-13 17 19 20
NCPLE SCPLE NC PLE CE CE TITLE CLASS
WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 17
ASSOCIATION NEWS
CIADA SCHOLARSHIP CRITERIA AND GUIDELINES
DEADLINE
MAY
1
CIADA offers a $1,500 scholarship. The deadline is May 1. Normally two scholarships of equal value shall be offered each year – one for 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. Criteria and Guidelines 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 – which will verify 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, 2018. 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, 2018. 8. Scholarship winner(s) will be notified of their selection prior to the CIADA convention 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.
18 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
SCHOL ARSHIP APPLICATION
SCHOLARSHIP APPLICATION
Name: ________________________________________
Date of Birth: ________________
Address: _____________________________________________________________________ Student 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 Marked by By May 1, 2018. 2018 Must Be be Post postmarked
MARKET WATCH |
By Danny Delich
ADVANTAGES OF CPO
A CUSTOMER FAVORITE The advantages of selling Certified PreOwned (CPO) vehicles are varied and many, but reduced to the common denominator: a properly utilized CPO program will help you sell more cars. Why? For the customer, a CPO program puts your dealership a cut above the rest because it promises a quality used vehicle without the risks normally associated with the used vehicle marketplace. For example, what if a customer purchases a used car that ends up needing expensive repairs? They can pay the expense themselves or sell the car. If they sell, they either lie about the condition or take a loss when disclosing the vehicle’s issues. A CPO vehicle eliminates this dilemma, thus eliminating the customer’s fear of getting stuck with a lemon. In all likelihood, a CPO car will be a highquality used vehicle that gives the customer a problem-free ownership experience. For one thing, the certification process puts each vehicle through dealership
reconditioning dictated by an extensive inspection checklist of more than 100 items, ranging from mechanical parts to the condition of the vehicle’s interior. So you and your customer already know the vehicle is sound, inside and out. This is a fact upon which you can build solid negotiations. Added benefits include a limited warranty (which further reassures your customer they won’t be hung out to dry in case of mechanical problems), roadside assistance and provisions for a loaner vehicle if their vehicle is held for covered repairs. These benefits raise the perceived (and actual) value of the program in the eyes of the customer and give peace of mind that makes it worthwhile for the customer to pay a little more – and they realize that. These features add value and should also be discussed during negotiations. Even though the cost of a CPO vehicle is a bit higher, your customer saves money in other ways, such as depreciation. According to Carfax, a typical new vehicle
loses 20 percent of its value in the first year of ownership. That means a $30,000 new car will be worth only $24,000 just one year later. Naturally, any vehicle will continue to depreciate as it ages, but it can be at a much slower rate. Certification allows the customer to buy an “almost new” model for less, which will better hold its value until they’re ready to pass it on to the next owner. And they can enjoy this advantage without worry because although the vehicle is older, it is of certified quality. And who wouldn’t return to a dealership that was able put them into the car of their dreams without the usual worries of a used car purchase? With the knowledge that they’re covered by a limited warranty? Secure they’ll never be stranded at the side of the road? And with the reassurance they’ll have a ride to work even if the car is in the shop for a covered repair? I know I’d be a customer for life, and I’d send my family. Danny Delich is senior vice president at Peak Performance Team.
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.
Auto Data Direct is the exclusive CIADA partner for ELT. Visit ADD123.com/ciada or call 866.923.3123. Use promo code SCELT17 at sign up and receive FREE account activation!
20 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 21
DEALER SPOTLIGHT
DAN CARTER
OWNER/ PRESIDENT OF D.B. USED CARS, GREENVILLE, S.C.
“We’ve been in business 74 years. My grandfather started it in 1945. “When my grandfather started the business he had five sons. One of them became a lawyer. The other four went into the car business. “In the late ‘40s going into the late ‘50s, they had four lots across town. Then one brother went out on his own and they split the business. My dad and one of his brothers had two lots and then my uncle passed away. So we’re the last of my grandfather’s family to be in the business. My son joined me in the business about six or seven years ago. “We have just one location now. “Normally, we keep about 40 or 50 cars in the lot. But we’re down to about 39 or so. “Most of our inventory comes from newcar trade-ins here in town. I have two cousins that are in mostly the wholesale business, so I get cars through them. We do buy some from Carolina Auto Auction. “The car business is not like it used to be. Seven or eight years ago, we used to sell 30 or 40 per month. Now we’re closer to 20 to 25 per month. “We are better than 90 percent Buy Here-Pay Here. Years ago, my dad was smart enough to get into the financing business. So we offer on the lot financing. We also own an insurance company. “Tax season hasn’t been what it used to be. We used to stock up in November and December. So we’re keeping about the same inventory. “We try to get a 20 percent down payment. We try to hold term lengths to 36 months. But on later-model cars or more expensive cars we’ll go 48 months. “The average retail price is in the $10,000 to $15,000 range. “Average model year ranges from 3 years old to 7 years old. Most will be in the 80,000 to 100,000 mile range, though we’ll have some in the 40,000-mile area. “The truck business is great. I used to stock about 15 trucks, now I might have three. The trucks are just that hard to find unless you get $20,000 to $30,000 trucks. Trucks and SUVs are probably the quickest movers. “I’d say about one-third of my inventory is SUVs. “Cars are half domestic and half imports. Trucks are more domestics. “Reconditioning is $300 to $500, if it doesn’t need tires. If it does, it’s $500 to $1,000. I have a full-time mechanic and fulltime cleanup crew. But with stuff like tires, we’ll work with a local tire shop. We don’t stock tires here. “We only work on our customer’s cars. “Outside of our own website, we mostly use Cars.com. The leads are steady. We also use Facebook. I tried Craigslist for a while, but I didn’t get good leads from it. “One of the most recent vehicles we sold was a 2008 Ford Mustang GT. It had 111,000 miles and sold for $11,495. “They are building a lot out here. The economy is good and we hope that rubs off on us.”
22 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
LEGAL MATTERS |
By Jeff Ingram
PAPER IS CHEAP
USE IT TO MINIMIZE RISKS is” with no warranty. That disclosure was in all capital letters, in conspicuous large print at the top of a document. After taking possession of the vehicle, Adeli began to smell gasoline coming from the car. He took it to a mechanic who made numerous repairs, including a repair to a leaky exhaust manifold. Adeli made a claim for breach of express warranty. MB Arkansas defended by stating all warranties had been disclaimed by the “as is” language on documents signed by Adeli. Adeli claimed the text message stating “all the service has been completed” was a written express warranty that had not been disclaimed. Prior to trial, the court decided there was evidence from which a jury could conclude the parties intended the text message to be part of the final contract and refused to grant MB Arkansas a judgment on that issue. Adeli also asserted a claim for fraud. The case ultimately went to trial. The jury awarded Adeli $6,835 in compensatory damages plus $5,800,000 in punitive damages. MB Arkansas asked the court to reduce the amount of punitive damages. The court acknowledged this was an isolated incident in which Adeli, who was not financially vulnerable, suffered only economic damages. The court stated there was “the potential for substantial physical harm,” the potential was “significant” and the dealership had a “reckless disregard of the health and safety of others.” The court then entered an order reducing the amount of punitive damages to $500,000. What went wrong for this dealership?
Hamid Adeli contacted Mercedes-Benz of Northwest Arkansas (MB Arkansas) about a 2007 Ferrari F430. Adeli was an experienced buyer of such vehicles. MB Arkansas had the vehicle inspected by a Ferrari dealer, who supplied a list of recommended services. MB Arkansas had some but not all of the recommended services done. One that MB Arkansas did not perform was a repair to an exhaust header. MB Arkansas testified that the Ferrari dealer said the exhaust header repair was not needed immediately. MB Arkansas gave Adeli a receipt for the repairs that had been made. It did not disclose the repairs that had been recommended but not made. The dealership told Adeli the car was in “turnkey, excellent condition” and that “all necessary repairs” other than a tire pressure issue had been made. MB Arkansas sent a text to Adeli that “all the service has been completed.” Adeli ultimately purchased the vehicle at below market price. Because of that discount, Adeli was not surprised the vehicle was sold “as is.” Before selling the vehicle to Adeli, MB Arkansas had negotiated with a different customer on the vehicle. That customer ultimately decided not to purchase the vehicle. MB Arkansas disclosed to that customer the repairs that had been made and the recommended repairs that had not been made. The customer informed MB Arkansas the exhaust header repair was a potential safety problem. To purchase the vehicle, Adeli signed a disclosure that the vehicle was being sold “as
It is impossible to know exactly what the jury was thinking, but several items were problems for the dealership. First, it knew about a problem but did not repair that problem or disclose it to the customer. This was probably aggravated by the fact the dealership had disclosed the issue to a prior customer who refused to purchase the vehicle. The jury may have concluded the dealership was afraid to lose another potential sale over this issue. Second, the unrepaired problem was a safety issue that, according to the judge, presented a significant risk of substantial physical harm. Third, there was proof the dealership told the customer that all issues had been repaired even though it knew some issues remained unrepaired. What lessons should you learn from this case? If you know about a safety issue, you should repair that issue before selling the vehicle. If you know about such an issue and decided not to repair it, disclose that issue to the customer in writing and have the customer sign the disclosure. That disclosure should point out the potential safety risk that exists. Finally, if a customer asks about repairs or problems, do not tell them only the good and omit the bad. Give them complete information in writing about what was and was not done. You will never eliminate all risks as a dealer. You can, however, minimize those risks. Paper is cheap. Use it to give good, accurate information to your customers.
DEALER RISK AND INSURANCE SERVICES
Insurance Services Garage & Bonds General Commercial & Property Coverage Workman’s Compensation Personal Lines Health & Supplemental Benefits Financial Planning Cecilia Fournil, CIC, Owner/Principal Martha Brown, Account Manager DRIS Allison Forster, Account Manager – General Commercial
info@driscarolinas.com
General Com
mercial & Pr
operty Cove
rage
5643 Harrisburg Industrial Park Drive Harrisburg, NC 28075-1088
800-432-4232 www.DRISCarolinas.com Personal Lin
es 24 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
arage & Bond
s
Towing
ComSoft
Dealership Management & Marketing Software Solutions
Dealership Management Software
Inventory Management Prospect Management Deal Processing Buy-Here-Pay-Here Tracking Lease-Here-Pay-Here Tracking
Compliance Tools Integrates with third parties Quick Books Integration Management Reporting Website Integration
Custom Dealership Website Design
Internet Marketing Feeds Internet Marketing Feeds
919-851-2010 www.comsoft.com
WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 25
SOCIAL MEDIA | By Kathi Kruse
WHY YOUR FACEBOOK PAGE IS FAILING
TIPS
TO
MAKE
YOUR
Not all Facebook pages are created equal. It’s hard to ignore the opportunities available with Facebook to attract, engage and convert car buyers, but building a high-converting Facebook page has been elusive for many. It’s important to know the elements of a successful Facebook page, and even more crucial to recognize the reasons your Facebook page may be failing. If you want your car buyers and their friends to notice, you have to continually reward them with great content and build an engaged community for them. This means employing a content strategy that works for your dealership both culturally and operationally. You also have to incorporate Facebook ads to promote your content and encourage clicks to your website from interested buyers. If consistent engagement and conversions on Facebook is a struggle for you, here’s a list of reasons your Facebook page may be failing, with tips to make it work for you rather than against you. YOU D O N ’ T P U B L I S H R E G UL AR LY Consistency is a cornerstone of Facebook (or any other) marketing. Users need to see your posts in their newsfeeds for you to stay relevant. It’s a battle right now for attention. Inconsistent posting (such as a few times per month) is not going to capture anyone’s attention. YOU R PA GE L A C KS T H E H UM AN TOU C H Fact: Facebook pages fail because posts focus on products instead of people. There’s often a complete disconnect from the human side. Content that demonstrates why people choose the business seems to be nonexistent on many dealership Facebook pages. If you approach Facebook with the sole mindset of selling, you will waste your precious time. Facebook is first and foremost a social network, not a billboard. YOU ’R E N OT U SI NG T H E 3-GEA R ED A P P ROAC H TO CONT EN T Content marketing (messages that meet your customer where they are in their purchase journey) is a powerful tool for driving qualified leads. The challenge lies in producing highquality, original content on a consistent basis. Content must reach each of three stages of the buying cycle: • Entertain. Most people who engage with your page are not immediately “in-market.” The inability to engage this large segment of users is where many pages fail. • Educate. Fans who are thinking about a purchase, or who have friends who are, appreciate answers to their questions. • Excite. Facebook posts and ads need to provide offers worth the prospect’s time. Exciting content compels people to click in anticipation.
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PAGE
WORK
FOR
YOU
YOUR P OSTS LO O K A N D FE E L COUN T E R FE IT Every dealership has a “personality” – characteristics, features, traits, etc. – that makes it unique. People are more attracted to sellers who communicate exactly who they are and what impact they wish to have in their customers’ lives. Publishing benign content that can be found anywhere is the shortest distance to the bottom. This is often obvious when dealers hire outside providers to “do social media” for them. The provider’s “voice” can come through on Facebook and make it look like someone other than you is doing the work. This is not a good look for those who want to engage real people. YOU D O N ’ T FU L LY U N D E R STA N D YOUR TA R G E T AU D I E N C E Creating a content strategy without a clear understanding of your audience is like setting sail without navigational tools. You’re out there, you’re taking action, but you’re not sailing toward a specific goal. Pretty soon, huge amounts of time and money have been spent without any clear return on investment. Facebook’s deep data allows dealerships to laser-target ideal users. Building target audience profiles improves your Facebook marketing tenfold. •D etermining the “buyer personas” of your core audience improves the way you solve problems for your customers. •E stablishing customer pain points helps create content that’s useful to your prospects (and builds authority with search engines). •U seful, high-quality content increases engagement and builds your social presence. •W ebsite content (i.e. blog posts) published on Facebook and clicked-through to your site increases search ranking. YOU D O N ’ T R E G U L A R LY CON D U C T A FA C E B O O K PA G E AUD I T Whether your social media marketing is in-house or outsourced, it’s often difficult to know where the gaps are between your current successes and where you need to be. There are numerous ways you benefit from an audit or review of your social media. Given today’s accelerated rate of potential failure with Facebook marketing, a social media audit will help your page work harder and achieve goals faster. YOU’ R E IG N O R IN G CO M M E N TS AN D ME S SA G E S Facebook is a communication channel just like email and the phone. Customer service via social media is a game-changer but if you don’t have a process to monitor, listen and respond to messages, you’re dead in the water. Nobody likes the feeling of being ignored. If
you’re looking for a competitive advantage, consider designating a “community manager” to oversee your online channels. YO U H AV E N O D E FI N E D G OA L S High-converting Facebook pages have clear, well-defined marketing goals. At Kruse Control, we begin with an outline of three goals and then build out the specific strategies that help a client achieve them: • Attract. Likability and relevancy are huge in attracting new and existing customers to your Facebook page. Add value to their lives by delivering awesome content. • Engage. Many dealerships fall flat when determining what to do with their fans once they become connected. • Convert. Attracting the right audience and engaging them lays the groundwork. Drive conversions using ads that provide valuable information that helps them finalize their purchase decision. YO U ’ R E N OT L E V E R A G I N G T H E P OW E R O F FA C E B O O K A DS Facebook has become one of the most powerful platforms to generate sales leads. Dealership Facebook pages fail because they either aren’t using Facebook ads correctly or they’re not using Facebook ads at all. No Facebook page will be truly successful without Facebook ads. Why? It’s simple: you must pay Facebook to reach car buyers. YO U ’ R E N OT M E AS U R I N G A N D A N A LY Z I N G YO U R R E S U LTS You can’t manage what you don’t measure. Dealers who don’t review their Facebook results are doomed to repeat their mistakes over and over again. Facebook Insights (your page analytics tool) gives you all the metrics you need to judge how your page is doing. You can see which content got the most organic and paid interaction, what you did right, and what didn’t work so well. Facebook Ads Manager gives you up-to-theminute stats on how your ads are performing. Analyzing results lets you: • Deliver a better experience for fans and the public. • Make better decisions on your content. • Tweak as you go to improve ROI. • Determine if you’ve reached your goals. If you’re not getting the results you want, compare your page’s components to these 10 reasons and see where you can improve. If your page doesn’t size up and you need help to improve, feel free to contact me. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@ krusecontrolinc.com.
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WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 31
By Peter Salinas
REGISTRATION AND PLATE INSTRUCTIONS
TEMPORARY REGISTRATION FOR REFERENCE - SOUTH CAROLINA VEHICLES
Thank you for your purchase! We hope you are thrilled with your new vehicle. Please note the following details about your vehicle’s plate and registration.
TAG ID ISSUE DATE PLATE EXP DECAL EXP
SC TEMPORARY LICENSE TAG 1. The temporary tag should be applied to the vehicle immediately. The dealership will apply for a new title, license plate and registration card for you. The South Carolina DMV will mail a new plate and your permanent registration card to you. 2. While operating your new vehicle with the temporary plate, please keep the bill of sale in your vehicle at all times to verify the dates of purchases to law enforcement. The bill of of sale services as your temporary registration card.
If you have any questions, please contact us.
CUSTOMER NO.
TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER •TEMP TAG BY PREMIER EVR • TEM
Harrisburg, NC P: 704-455-2117
www.THECIADA.com
AA1234B South Carolina
000000000
TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG
The voluntary roll out period of the new Temporary License Tag law passed last year by the South Carolina Legislature began January 1, 2019, though use of the new system will not become mandatory until May 2019. The new law will eventually require South Carolina automotive retailers to register all newly sold vehicles online and print off the temp tags on special paper on their own laser printers. The law was designed to assist state government and law enforcement officials with the following: preventing fraud; reducing the possibility of drivers not having up-to-date insurance coverage; and having the 45-day temp tag plate number tied to the vehicle in the South Carolina Department of Motor Vehicle computer registry system. Carolinas IADA executive director John Brown said there are also numerous benefits for automotive retailers. The main benefit is dealers will no longer have to physically visit the DMV to register vehicles or get other paperwork. The new system will also allow their customers to get hard plates more quickly, and gives the dealership a marketing opportunity. “With the current system if a vehicle were involved in an accident or any type of incident where a license plate was used to identify the vehicle for law enforcement, it would not be in the system and the vehicle and current owner could not be immediately identified,” Brown said. “The new system eliminates that problem.” Carolinas IADA has entered into an agreement with DDI Technology, a South Carolina-based vehicle registration and title management software firm, to facilitate both the acquisition of the blank Temp Tag stock and as the processor of the registration through the South Carolina DMV. Todd Phillips, director of sales for DDI, said the agreement will allow dealers a seamless data transfer from their DMS to the South Carolina DMV from within the dealership, saving resources and speeding up the process. “DDI’s Premier EVR system will also give dealers access to free VIN inquiries to verify trade and customer data, reducing fraud as well,” Phillips said. When the new tag becomes mandatory, dealers will no longer be able to purchase blank temp tag stock from third-party vendors and will have to purchase them through the Carolinas IADA in conjunction with DDI. The temp tag process has two components – the purchase of the blank temp tag stock and the processing of the tag itself. The blank stock purchase price is $5, and dealers will be able to order this on either CIADA’s website or via DDI Technology’s
TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG
UPDATE ON 2018 LAW
VIN YEAR MAKE BODY VEHICLE TYPE EMPTY/GVW /
TITLE EQUIPMENT NO. COUNTY VEHICLE NO. FLEET NUMBER
2018
LEGISLATIVE NEWS |
TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR • TEMP TAG BY PREMIER EVR •
Premier EVR system. Control numbers, which link the blank stock to the completed temp tag, will be a big benefit for dealers. Once the temp tag is registered, it will automatically be entered into the system for the dealer. DDI has an auto-reorder feature to ensure the dealer does not run out of stock. The cost of processing the temp tag will be $3, for a total of $8 once complete. There are no additional subscription fees. Of course, the cost of the printer and ink is borne by the dealer. The law allows the dealer to recoup the total cost of the temp tag, including shipping, so this can be added to a closing fee or a separate Electronic Registration fee. Brown said dealers are well aware they currently are not allowed to register plates at the DMVs on Mondays and Fridays, and there are limits on the number of registrations they can perform at one time. “This will eliminate almost all trips to the DMV,” Brown said. “Dealers won’t have to waste time standing in lines, and if they have title clerks, it will definitely make their jobs easier. Things like incorrect VIN numbers will be caught immediately, instead of finding out there is a problem weeks later.” Brown added that the use of the new system will allow dealers to complete all registration and title work, secure a hard plate for consumers, and register liens – all online. “You will literally be able to accomplish these tasks with a few clicks on one or two screens,” Brown said. Former Carolinas IADA president Darla Booher, owner of two Deal Depot dealerships in Greer and Duncan, S.C., said the new temp tag law represents progress, and will get South Carolina dealers on par with dealers throughout the country. “It’s especially important from a law enforcement standpoint,” she said. “We’ve
had police call us and ask about a specific vehicle involved in a hit and run or an accident, and our logo was on the temp tag. Because there was no number on the tag registered with the DMV, law enforcement had no way of knowing who owned the vehicle.” Booher said there will be other components to the law down the road that will make dealers’ business even more productive. She said eventually dealers will be able to give their customers metal plates at the time of sale. “The new law will reduce the amount of time at the DMV office and reduce the amount of paperwork we have to push,” she said. “It will also eliminate hassles. We’ll be able to match up addresses and other information right online.” While there will be a learning curve for dealers, Booher said, there will be plenty of opportunities for training and certification is required. Signing up early will be important for dealers as there is a mandatory training and certification process. CIADA and DDI Technology will have weekly online training sessions to ensure dealers have an opportunity to learn and understand the system. Training videos will be available for those who do not attend the live training or need a refresher at a later date. A full stepby-step training manual is available online as well. “Every dealer will have the tools and knowledge they need to process temp tags and EVR transactions,” Phillips said. The South Carolina DMV requires all users to go through a certification program, which is offered monthly throughout the state by Carolinas IADA and DDI. Discussions are ongoing to determine if additional online classes can be made available, ensuring ample opportunity for all title clerks and dealers to attend. CONTINUED ON PAGE 34
32 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM
INDUSTRY NEWS
WORLD AUTOMOBILE AUCTIONEERS CHAMPIONSHIP COMES TO CAROLINAS
TOP AUCTIONEERS TO COMPETE FOR TITLE M AY 1 0 AT C H A R L E S T O N A U T O A U C T I O N
The world’s best auto auctioneers are ready to do battle again. The 31st annual World Auto Auctioneers Championship is coming up May 10, drawing top auctioneers to Charleston Auto Auction to display their skills and compete for the coveted title of world champion. For the eighth consecutive year, the competition will be webcast live on NIADA.TV. Follow the action beginning at 8 a.m. EDT. The auto auction industry’s most prestigious trophy will be awarded to an auctioneer, a ringman and a two-person team by a panel of judges that includes some of the industry’s biggest names. Last year, Casey Enlow of Supulpa, Okla., took home two of those trophies – one as the world champion auctioneer and another for winning the team title (his second) with ringman Bradley O’Leary of Weatherford, Texas. Chris Elliott of Shelbyville, Tenn., claimed the ringman championship. “To win any contest is quite an achievement,” said Enlow, who had been a WAAC finalist several times and was runner-up in 2013. “But as a car guy, to win this contest is the pinnacle of my career. “To win this contest … with a panel of judges who are your peers and are world champions, is absolutely indescribable.” For more information, visit the WAAC home page at www.autochampionship.com or the event’s Facebook page at www.facebook.com/ WorldAutomoblieAuctioneersChampionship, or call (303) 807-1108.
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Photo credit: Myers Jackson WWW.THECIADA.COM APRIL/MAY 2019 AUTO DEALER NEWS 33
CONTINUED FROM PAGE 32
Brown noted it could take two to four weeks to get registered, receive the blank stock, and get trained and certified. Dealers who wait until the last minute may find themselves unable to sell vehicles until the system is up and running in their dealership. More than 2,500 dealers in South Carolina will need to be enrolled with a service provider between now and May 2019. This will place a strain on the South Carolina DMV’s systems as each dealer has to be enrolled with the state and a service provider. “When Electronic Lien and Title became mandatory in 2017,” Phillips said, “it took up to six weeks for lienholders to receive approval. We do not want there to be issues with dealers selling vehicles, so everyone should begin the enrollment process no later than March to ensure compliance.” Brown wanted to drive home that point. “Remember, you will not be able to print out temp tags until you have gone through the training and been certified,” he said. CIADA sponsors the current titling classes with the DMV, which all new title clerks
should attend, Brown noted. He added the new system should dramatically cut down on the number of curbstoners in the state, because they will no longer have access to the blank temp tags and must register as a licensed dealer. “They just won’t be able to do that anymore,” he said. “Dealers will not have the ability to ‘share’ the system with others because the system will track the number of vehicles sold by dealership.” Marketing Opportunity Since license plates were first required, savvy dealers have marketed their brand by providing customers with license plate frames that promote their brand as the vehicle moves through traffic. The new temp tag law facilitates this for dealers during the time the customer uses a temp tag. The top 50 percent of the space on the new temp tag will be reserved for dealers to place their logo and any marketing information. DDI Technology will facilitate the placement of the design on the blanks for free – a savings of $35. The dimensions, 10 inches by 2.5 inches, will give ample room.
REGISTRATION AND PLATE INSTRUCTIONS
TEMPORARY REGISTRATION FOR REFERENCE - SOUTH CAROLINA VEHICLES
Thank you for your purchase! We hope you are thrilled with your new vehicle. Please note the following details about your vehicle’s plate and registration.
1. The temporary tag should be applied to the vehicle immediately. The dealership will apply for a new title, license plate and registration card for you. The South Carolina DMV will mail a new plate and your permanent registration card to you. 2. While operating your new vehicle with the temporary plate, please keep the bill of sale in your vehicle at all times to verify the dates of purchases to law enforcement. The bill of of sale services as your temporary registration card. If you have any questions, please contact us.
The dealer can send over a completed version of the design, or DDI will do the design work with the dealer’s final approval. DDI will create a template the dealer will use in printing off the temp tags. The marketing information provided to DDI can include the dealer’s logo and any messaging. The marketing messaging and a unique temp tag number for the South Carolina DMV will populate into the template and everything will print at the same time. Some printing, required by the DMV, will be on the temp tag stock when dealers purchase it. Dealers should avoid the use of black or full color backgrounds, unless they don’t mind the added expense of more printer ink. They should also avoid putting too much information on the tag. The more text used, the smaller font size, which will be more difficult to read. “Think about making the design distinctive and be able to be seen from a distance,” said John Brown. “It will be interesting to see who comes up with the most attractive and, over time, most recognizable designs.”
TAG ID ISSUE DATE PLATE EXP DECAL EXP VIN YEAR MAKE BODY VEHICLE TYPE EMPTY/GVW /
TITLE EQUIPMENT NO. COUNTY VEHICLE NO. FLEET NUMBER
CUSTOMER NO.
Harrisburg, NC P: 704-455-2117
www.THECIADA.com
South Carolina
2018
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34 AUTO DEALER NEWS APRIL/MAY 2019 WWW.THECIADA.COM