Car 0616 by NIADA

Inside J U N E / J U L Y

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INDUS T R Y NE W S

REGULATORY COMPLIANCE STARTS WITH DATA ACCURACY Don’t Omit This Critical Detail | PAGE 06

NEWEST RULES OF ONLINE MARKETING

Helping You Accomplish Sales Goals | PAGE 10

TIME TO RETHINK YOUR DOC FEE South Carolina and Doc Fees | PAGE 12

TIME FOR CONVENTION TO HIT THE ROAD Looking to the Future | PAGE 16

LESSONS LEARNED FROM IRATE CUSTOMERS Take the High Ground | PAGE 20

CIADA CONVENTION FORMS | PAGE 34-38 SEVEN ESSENTIALS FOR YOUR REPUTATION Building and Repairing Your Dealership Reputation | PAGE 35

What’s New

BHPH DEALER MAGAZINE

NIADA now has a magazine devoted to Buy HerePay Here! The BHPH DEALER Magazine is published bi-monthly on the even months of the year and is included as a supplement to NIADA’s Used Car Dealer magazine. Visit www.niada.com/bhph_dealer_ magazine.php to check out the inaugural issue.

Advertiser’s Index

Ace Motor Acceptance .........................................................21 ADESA ................................................................................................15 Alliance Inspection Mgt.......................................................... 8 Auto Use ..........................................................................................14 Autotrader .........................................................................................9 AutoZone .........................................................................................22 Black Book..........................................................................................3 CARFAX ................................................................................................ 7 Carolina Auto Auction...........................................................IFC Charleston Auto Auction................................. Back Cover Greensboro Auto Auction .....................................................5 High Tech Locksmiths ...........................................................18 Manheim ................................................................................10, 11 Manheim Pennsylvania........................................................13 NextGear Capital........................................................................12 PassTime .........................................................................................20 Protective ........................................................................................19 STARS GPS.......................................................................................23 TrueCar .............................................................................................17 Wolters Kluwer.............................................................................16 VAuto................................................................................................. IBC

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.

STARS GPS Helps Law Enforcement Locate Two Missing Children

boys quickly and safely. STARS GPS worked with the boys’ father, Noel Amundsen, and police to follow the mother’s trail from North Carolina to California. Using real-time tracking data, the team discovered the vehicle had a stop in Bakersfield, California. Local police contacted Sergeant Burdick from the Bakersfield Police TWO NORTH CAROLINA BOYS Department to assist. Using HOME SAFELY the real-time GPS data, Sergeant Burdick and his Police safely found two missing North Carolina children team were able to locate the boys and their mother at the end of March, thanks at the exact spot identified in part to collaboration from by the GPS tracker. They Stars GPS vehicle tracking apprehended the mother and technology. the boys returned to their The boys, ages 2 and 5, had father without incident. been taken by their mother, “STARS GPS helped us Melissa Amundsen, who did not have legal custody and fled locate and protect innocent the state. Because her car had a victims,” said Sergeant STARS GPS tracking unit, police Burdick. “I think there’s real value to having GPS were able to locate her and the

Executive Committee IMMEDIATE PAST CHAIRMAN MICHAEL DARROW THE AUTO FINDERS INC. DURHAM, NC

SC VICE PRESIDENT DARRYL JACKSON CROWN AUTOMOTIVE SALES AND FINANCE ROCK HILL, SC

CHAIRMAN LUKE GODWIN GODWIN MOTORS INC. COLUMBIA, SC

NC VICE PRESIDENT KIM BRADSHAW 1ST NATIONS AUTO SALES BURLINGTON, N.C.

PRESIDENT WILL DAVIS G & B AUTO LOUISBURG, NC

TREASURER STEVE MATTHEWS MATTHEWS MOTORS INC. CLAYTON, NC

PRESIDENT-ELECT DARLA BOOHER DEAL DEPOT, INC. GREER, SC

SECRETARY KEVIN PENDERGRASS CAROLINA AUTO SALES OF MYRTLE BEACH MYRTLE BEACH, SC

CIADA Staff EXECUTIVE DIRECTOR

The Carolinas Independent Automobile Dealers Association is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817) 640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of CIADA or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc. All rights reserved.

JOHN BROWN 5643 HARRISBURG INDUSTRIAL HARRISBURG, NC

AUTO DEALER NEWS

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STAFF

JAYNE HARRIS EDUCATION & MEMBERSHIP SERVICES

JENNY MYRICK EDUCATION & MEMBERSHIP SERVICES

MARTHA BROWN DRIS INSURANCE

DEBBIE BRASWELL CONTROLLER

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 & GRAPHIC ARTIST Chantae Arrington • chantae@niada.com ART DIRECTOR Christy Haynes • christy@niada.com PRINTING Nieman Printing

tracking on vehicles. And in this case, the technology not only reduced the time and manpower for law enforcement to locate them, but more importantly, it created a happily ever-after ending for a worried father thousands of miles away.”

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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.

DE A L ER B ES T P R AC T ICES

Regulatory Compliance Starts with Data Accuracy DON’T OMIT THIS CRITICAL DETAIL BY CHET HEUGHAN

How many times have you heard the phrase “The devil is in the details”? That statement has never been more applicable to automotive dealers than it is today. When considering financial risks to their businesses, most dealership owners and managers tend to spend more time focused on issues such as hidden damage on vehicles purchased at auction, aging inventory, contracts in transit and the possibility of another downturn in the economy while often omitting an issue of critical importance to their business. One of the largest risks to a dealer’s financial future is accuracy – or better stated, the lack of accuracy – in loan documentation. Inaccurate sales documentation in financed transactions can create a lingering risk to your business. Your risk starts from the time you submit a credit application to the lender. Something as simple as an incorrect bookout submitted along with the credit application to a lender can create an ongoing financial liability. For example, if you submit a credit application that incorrectly states a Nissan Altima has an SL trim package when really it was an S trim package, your dealership could be responsible for the difference between the stated value and the actual collateral value. Many lenders will audit the loan documentation when a loan results in a repossession and subsequent charge-off. If the lender finds the dealer overstated equipment, which inflated the stated value of the collateral, the dealer will likely be requested to compensate the lender for the difference. In the past this could cost dealers several hundred dollars

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M A RK E T WAT CH to a few thousand dollars, in addition to creating tension between the dealer and its retail lender. Today, however, with advancements in technology the stakes are higher for dealers as lenders now see this behavior as a red flag. Lenders can easily audit a dealer’s entire portfolio by using technologies that use vehicles’ VIN numbers to access the actual manufacturer’s build sheet for a vehicle in question, leaving no doubt as to exactly which loans contained “power booking.” This could result in the lender terminating their relationship with the dealer and requesting a larger demand letter. Compliance and accuracy go hand in hand. Repeatedly making simple mistakes when completing forms, or using the wrong forms to document a transaction, can appear to be predatory or deceptive. Inadvertent noncompliance with state and federal guidelines when preparing loan documents can be another area where risk can accumulate over time. A typical retail installment contract can contain more than 150 fillable fields. Making sure the correct information goes into each field may seem like a no-brainer, but what if you’re selling four aftermarket products and your retail installment contract only provides three lines to disclose the information? Some dealers simply combine two of the products or include the product in the selling price. These aren’t good ideas! This approach may pass a lender’s due diligence process, so it must be compliant, but don’t rely on the lender to be your failsafe. Lenders are not perfect and they don’t catch everything. This issue could be caught months or years later during an audit of the lender’s indirect loan files or it could be questioned by your customers. What was a simple solution to a problem caused by not having enough lines on the contract could easily be viewed as nondisclosure or as deceptive and predatory practices, which can carry large financial penalties or be the basis of a consumer lawsuit. Choosing the right loan documents that are up to date with current legislation along with the enhanced market

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Gen Z Prefers Face-to-Face Interactions AUTOTRADER AND KELLEY BLUE BOOK STUDY

ONE OF THE LARGEST RISKS TO A DEALER’S FINANCIAL FUTURE IS ACCURACY — OR BETTER STATED, THE LACK OF ACCURACY — IN LOAN DOCUMENTATION. features needed to support the sale of the many insurance and aftermarket products available in the market today is a sure way to reduce noncompliance and ultimately financial risk. Using the same old loan documents you’ve always used or the free documents made available from your lender may not be the best practice. Choosing a loan documentation supplier that warrants their product, has a comprehensive program for monitoring pending and enacted regulations, and completes timely revisions of their products can go a long way to reducing your compliance risks. Of course, there are many more risks to your business – market conditions, competition and availability of inventory, just to name a few. Many of these risks are outside your control, but you can control a large portion of your risk by demanding data accuracy from your staff and the vendors who provide you with products and services. Chet Heughan is director of AppOne® Risk Mitigation Services and Indirect Lending for Wolters Kluwer. For more information, please visit www.wolterskluwerfs.com.

Generation Z – individuals up to 17 years of age – may have grown up with more access to technology than Millennials, but buying online isn’t in the cards for this emerging demographic, according to a joint study conducted by Autotrader and Kelley Blue Book. “Gen Z accounts for nearly a quarter (23 percent) of the population right now, and by 2020 this group will translate to $3.2 trillion in purchasing power, which is larger than the GDP of some small countries,” said Isabelle Helms, vice president of research and market intelligence for Cox Automotive. “While they will have access to some serious cash, they will be cautious about how they spend their money, a trait that makes Gen Z markedly different than their Millennial counterparts.” While Gen Z is full of technology natives, only 26 percent of them said they wanted to buy a car online in the future. Sixty-eight percent of them said face-to-face interactions during their vehicle transaction was important and 54 percent claimed they would need to test drive a vehicle before making a purchase. The study further found that while the environmental impact of a vehicle is important to Gen Z the majority of respondents said cost was the most important aspect of a vehicle purchase. When asked on their opinion, more respondents said it was the gas savings rather than impact on global warming that would sway them toward environmentally friendly vehicles. “What worked for marketing to Millennials will not work for Generation Z because some of the defining traits of Millennials do not hold true for the next generation of car shoppers,” Helms said. “The best news from this research is that auto sales are not going to take a hit because of this generation. In fact, it may prove to be quite the opposite. Their love for cars and driving is very much alive.”

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What Will $5,000 Buy?

MANHEIM DISSECTS WHAT $5,000 BUYS AT AUCTION THESE DAYS BY NICK ZULOVICH, AUTO REMARKETING SENIOR EDITOR A segment of Manheim’s 2016 Used Car Market Report asked a question most Buy Here-Pay Here operators consider when they scour the lanes or online platforms to find inventory that will not only turn but will last for the duration of the installment contract. To answer the question of what $5,000 will buy, Cox Automotive chief economist Tom Webb acknowledged in the report that rising wholesale prices often trigger headaches for BHPH dealers since they need to find vehicles their customers can afford, but can run the term of the note with minimal repairs. To give a sense of just how much wholesale prices have gone up over time in the lower price tiers, Manheim looked at the average mileage on auction vehicles that sold between $4,000 and $6,000 during the past 16

AUTO DEALER NEWS

years. Back in 2000, if operators spent an average of $5,000 for a vehicle at auction they acquired a vehicle with 84,541 miles. “Average mileage slipped over the following three years as wholesale supplies grew and the overall pricing environment weakened,” Webb explained. But between 2003 and 2014, Webb pointed out the average mileage for the typical $5,000 wholesale vehicle purchase rose every year, except for the recession of 2008 and 2009. A year ago, Webb mentioned BHPH dealers got a slight reprieve as the average mileage on a $5,000 auction purchase dipped but remained above 120,000 miles. During a conversation with BHPH Report, Webb elaborated about the kinds of vehicles that fit that price parameter nowadays. “It’s certainly a mixed bag,” Webb said. “Certainly a vehicle with six digits on the odometer is really not an issue in terms of running the terms of the note if you have some feeling about its condition level. Some makes and models have better reliability over time than others. “The Buy Here-Pay Here

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dealers, as you know, are extremely knowledgeable of those units,” he added. “Typically they’ll have some makes and models which are on their black list which they will not buy at all for those reasons. But with any model, the condition can vary quite substantially depending on how it was used or abused.” BHPH operators and other independent dealerships should benefit from the overall lift in wholesale volume, according to Manheim’s report. As wholesale supplies grew a year ago, Webb explained independent dealers were better able to secure inventory that met the needs of their individual customer bases. “As a result, unit sales grew considerably faster than in the prior two years, and at a pace that was higher than that of franchised dealers,” Webb wrote in the report. “Earlier in this cycle, many independents suffered as a result of a lower flow of wholesale units from franchised dealers, fewer desirable trade-ins, and reduced auction supplies. “With all of those sources

returning to normal volumes, independent dealers should have another good year in 2016, especially if all-important credit conditions remain favorable.”

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Newest Rules of Online Marketing

HELPING YOU ACCOMPLISH SALES GOALS BY KATHI KRUSE It’s hard to believe, but we are almost through the first half of the year. How far along are you in achieving your dealership’s goals for 2016? The digital marketing landscape continues to evolve. SEO, social media, content marketing and online reviews are no longer

AUTO DEALER NEWS

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standalone strategies. All these intertwine and support each other, and it’s extremely important to clarify exactly how you’ll leverage these online marketing pillars to grow your business. Where does your store fit in the digital marketing landscape? I continue to be concerned about dealerships’ reluctance or slow adaptation to Google’s requirements and customers’ needs, especially when it comes to digital presence. There’s a lot of conversation (both online and off) postulating how some dealerships or business models won’t survive in the next 5-10 years. I’ve been helping dealers navigate

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social media, content marketing, SEO and online reviews for years and sometimes it seems like the needle has barely moved. Everything else is moving at such a fast pace and, judging by what I hear from a lot of dealers, sitting on the sidelines seems to be the common go-to strategy. A manager in one of my conference sessions said, “Car sales are at an alltime high. What do I need with online marketing?” Warren Buffett said, “In the business world, the rear view mirror is always cleaner than the windshield.” Just a few short years ago, every dealership was struggling to figure out what to do in the Great Recession. Using the above mindset – “Car sales are at all-time highs” – as an example, all-time highs mean the end of growth is near. Also, subprime delinquencies are at 20year highs (and there’s a bubble happening similar to the mortgage meltdown). Add these indicators to all of the outside pressures on the dealership business model (Uber/Lyft, ride-sharing, self-driving cars, etc.) and you’ll see it would be prudent to forecast for the coming downturn – no matter what it looks like. From my years as a dealership manager, 60 percent of which was as a CFO, I can’t ignore trends. Online is how we all communicate today and becoming savvy in this arena will ensure your store has every chance to reach today’s buyers. THE 7 NEWEST RULES OF ONLINE MARKETING Getting and keeping customers is proving to be more and more difficult. Many dealership marketers seem to be ignoring a basic fact: people like to buy from businesses they know, like and trust. That isn’t just some cliché. Selling to people who actually want to hear from you is more effective than interrupting strangers who don’t. These newest rules of online marketing will help you understand what it takes to win customers and make informed decisions about how to drive more leads and sales to your store. Assume nothing. • Consumers. They’re getting a 5-star experience with online sellers like Amazon. How are you delivering the same experience, or better? • Competitors. What are your competitors doing better than you? Nothing short of fearless assessment and measured improvement will do. • Google. What exactly are you serving up to search engines? Search strategies today compared to even just a year ago are drastically different. Google is wickedly adept at recognizing quality content to serve its users. Do you know the ranking factors Google employs? Invest. Resolve to build stronger relationships with current and new customers. The

amount of time and effort spent is directly proportionate to the results achieved. We live in a world where no one wants to see ads from brands they don’t know. Why? Zero trust. Ad blocking is up 48 percent in the U.S. and growing. However, your ads are welcome in cases where you’ve invested in customer relationships and built a strong following. Profit isn’t a purpose, it’s a result. Empathize. A brand that can put themselves in their customers’ shoes, and deliver the information needed to make the right choice, secures a customer for life. Teach. With so much content on the web and very little trust, it’s overwhelming for consumers to research even the most common products. That’s why we’ve all turned to our social networks and online ratings sites for answers. The days are gone when you could walk into a store and get a trustworthy recommendation. A business today must leverage its assets to be a teacher not a seller. Social selling (using social media to build a network by providing value to give and receive referrals) is a fantastic solution to grow your business. Incorporate social selling within your sales process: • Differentiate yourself from the “sales sharks.” • Don’t be all about making the deal. • Pass on valuable information. • Use social media to teach, not sell. • Be a publisher (all good sales people are content marketers too!). • Develop your network through giving and getting referrals. • Leverage paid social to drive leads. • Don’t be afraid to ask for the sale. Curate. Everyone loves valuable information. People who consistently deliver solid, original, high quality content are considered thought leaders. Spend 30 minutes per day consuming content that’s helpful to your business growth and helpful to your customers. Schedule posts (via Hootsuite, Post Planner, Buffer or others) on social media sites to broaden your thought leadership. Advocate. Create a community online that mirrors your offline community. I’m always delighted to find a brand on social media that listens to their customers. Brand loyalty is born when someone at the store is there monitoring, responding and advocating for customers should they have an issue or want to give feedback. Listening > Advocacy > Loyalty. Care. A step further from advocacy is to authentically care. Every time I fly JetBlue, they see my check-in at the airport and

tweet me a nice message. They make me feel special and I feel like they care. When they announced they would abandon their “first bag free” policy, it wasn’t the best news, but their previous efforts to make me feel special softened the blow. Evidence that you care can only come from authentic action. Being able to document that well in the form of blog posts and social media content is a must-have strategy in 2016. Your goals for the second half of 2016: It all boils down to this: Attracting, engaging and selling to today’s hyperconnected buyers requires focused attention and a solid plan to drive leads

and sales. These seven new rules will guide you to accomplishing your sales goals and finishing the year strong. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.

AUTO DEALER NEWS

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L EG A L NE W S

Time to Rethink Your Doc Fee

SOUTH CAROLINA AND DOC FEES BY SHAUN PETERSEN

Is there a catchphrase more recognizable than “What’s in your wallet?” Whether it is Charles Barkley, Alec Baldwin, Samuel L. Jackson or Jennifer Garner delivering the tag line, the minute you hear it you know it’s a Capital One promo. It is not uncommon for me to hear consumer attorneys and even some regulators argue that doc fees are charged for no other reason than for dealers to “line their wallets.” That contention was the crux of a recent decision from the South Carolina Supreme Court in Freeman v. J.L.H. Investments, LP. South Carolina law permits a dealer to charge closing fees on each motor vehicle sales contract so long as the dealer pays an annual registration fee to the state. The dealer must then include the closing fee amount in the advertised price of the vehicle, disclose the cost on the sales contract and display the amount in a conspicuous place in the dealership. A South Carolina Honda dealer charged its customers a $299 closing fee, which was properly disclosed on its sales contract and in a conspicuous statement in the dealership. Moreover, the dealer filed the necessary paperwork with the state to charge the fee. When advertising the purchase of a vehicle, the $299 was included in the price of the vehicle. After purchasing a vehicle from that dealer (and after consulting with an attorney friend), a consumer filed a class-action lawsuit against the dealership, alleging the dealer had violated the South Carolina Dealers Act by charging closing fees that were not calculated to reimburse the dealership for the dealer’s actual expenses incurred in closing the transaction.

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The case proceeded to trial, where after a jury found in favor of the consumer and returned a verdict of nearly $1.5 million in actual damages, which equates to the total of closing fees charged by the dealership during the four years prior to the lawsuit. Both parties filed posttrial motions with the trial court. The judge denied the dealer’s attempt to overturn or reduce the jury’s verdict. The judge also granted the consumer’s motion to double the actual damages award – permissible under South Carolina law – and to award attorneys’ fees and costs. In arguments to the South Carolina Supreme Court, the dealership asserted it had fully complied with the aforementioned requirements of the statute pertaining to closing fees. The dealership believed its compliance with those provisions absolved it of any liability to the consumer. The Supreme Court disagreed and ruled that compliance with the statute enabled the dealership to charge a closing fee but did not allow it to charge any amount it wanted for that fee. The court said if a dealership is going to charge a closing fee, it is required to account for the costs that comprise the fee, and those costs must be directly related to the expenses incurred in closing the motor vehicle sale. Perhaps recognizing that such a standard might make calculating the closing fee a compliance challenge, if not an all-out compliance nightmare, the Supreme Court said dealers may set a fee that represents the average of costs actually

incurred by the dealer in all closings from the prior year. The decision in the Freeman case raises three important points dealers in South Carolina certainly need to be aware of – and are good ideas for dealers across the nation to consider. First, determine what items should be included in the closing fee (or doc fee) and the cost of each of those items up front – before you set the amount of the fee. Second, the closing fee (or doc fee) should be limited to costs directly related to the services rendered and expenses incurred in closing a transaction. Expenses related to salaries, building costs, utilities, vendors or other general operating expenses should not be included as part of the fee calculation. Third, there is now precedent that a closing fee calculated from an average of the costs the dealer actually incurred in all closings from the prior year is a “safe harbor” of sorts. Legislation pending in the South Carolina legislature would supersede and undo the court’s decision. However, I believe this case will be fodder for plaintiff’s attorneys across the country to pursue similar class-action cases against dealers if they haphazardly charge a closing/ doc fee without sufficient rationale to justify the actual expenses behind it. I encourage dealers to undertake that analysis as soon as possible, or the answer to the question of “What’s in your wallet?” could end up being cobwebs. Shaun Petersen, a former Ohio deputy attorney general, is NIADA’s senior vice president of legal and government affairs.

ONL INE M A RK E T ING

Dealers Upset About Google Adwords PPC Change CHANGE PUSHING ORGANIC RANKINGS DOWN BY KENNY ATCHESON

Recently Google decreased the amount of Google Pay-Per-Click ads showing after a given search such as “used car dealer.” The ads down the right-hand side of the search results have vanished. There used to be three at the top and seven down the right side. Now there are four at the top and that’s it! What does this mean for you? If you are not utilizing Google Adwords PPC ads and you are reliant on search engine rankings, be prepared for your website visitor traffic to drop. Now that there are four ads instead of three at the top, that pushes organic rankings further down. If you are ranking outside of the top three

AUTO DEALER NEWS

you may drop below the fold (death to traffic). This change lessens the impact of search engine optimization because some websites are pushed below the fold. Surprise! Google wants more people to click on their ads so they can make more money. If your ads were appearing outside of the top four previously, then your ads may not appear at all. You could go from thousands of visitors to zero overnight! Let’s not be too hard on Google. Facebook made sweeping changes awhile back forcing you to pay money if you want anyone to see your posts. Back to Google… If your ads generally appeared in the top three you still may have to make some adjustments. Your competition will probably think the only thing that gets them into the top four is by placing higher bids. This drives the price up on you but you can be smart about it, and it may not cost you any more than it does now.

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There are two ways to crack the top four ads or maintain your top status: 1. Pay more money per click (bidding). 2. Improve your CTR (click through rate). The second is trickier but here is the short answer: •Better targeting. • Better copywriting on your ads. • Ads specific to the specific target.

Hot Tip: Although I’ve been getting paid to write copy for a long time, I still splittest the ads to make sure our clients get the most out of every dollar spent on Google Adwords PPC. I will continue to do so. Whoever is managing your ads should be splittesting too. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-theRadar Strategies to Explode Your Profits. His website is www.DealerProfitPros.com.

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Time for Convention to Hit the Road LOOKING TO THE FUTURE BY STEVE JORDAN

The annual NIADA Convention and Expo has been around a long time – this year, the event celebrates its 70th anniversary – and over that time it has grown into an esteemed, wellestablished institution. It is something independent dealers nationwide can count on to be there, year after year, providing the best dealer training available in the used vehicle industry – and a lot more, of course. In 2010, the NIADA Convention, after years at various locations, settled in at Caesars Palace in Las Vegas. That’s where it’s been for the past six years, providing a familiar home for regular attendees. That, of course, is about to change. While the convention is staying in Vegas, for this year and next it is moving to a new venue, the freshly renovated Mirage.

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This year’s event, featuring a beefed-up Buy Here-Pay Here training component as well as retail and compliance education from some of the best in the business, a sold-out Expo Hall packed with top industry vendors and much more, will be held June 13-16. As you know, change is a muchdiscussed concept in the used car business these days. Given that, this particular alteration – and we are certain you’ll agree it is for the better – got us thinking about the potential for greater change. Like, for instance, a break from Las Vegas. By the end of our contract with the Mirage, the NIADA Convention and Expo will have been in Las Vegas for eight consecutive years. That’s the longest continuous run for any site in the event’s 70-year history. Is that a good thing? Is familiarity preferable to variety? Las Vegas has proven to be a popular destination for our members and exhibitors over the years, but might it be better to freshen up the event with a new location? So we decided to find out what

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you think. Earlier this year, we sent a survey to our member dealers seeking your thoughts on this issue. As it turned out, the results were quite conclusive. While 47 percent of the dealers who responded said they were satisfied with the convention having been in Vegas every year since 2010, 65 percent said they would prefer to have NIADA rotate future convention locations. When dealers were given the choice between alternating between two sites, rotating the event to Las Vegas every two years, rotating to Vegas every three years and changing the location every year, the latter was clear winner – 48 percent preferred going to a new location every year. And 86 percent of the respondents agreed with this statement: “I like Las Vegas, but I would prefer to add one or two other host cities to the rotation.” Among the cities most mentioned as possible future destinations were Orlando, Nashville, Dallas-Fort Worth, Denver, San Francisco, Atlanta, New Orleans and Chicago. Several members asked for more East

Coast options. One other thing we wanted to find out was just how important the convention venue is to our dealers. After all, you’re what this is all about. If it’s a big deal to you, it’s a big deal to us. So we asked: Does the location matter? Actually, yes, it does. Almost 90 percent of the dealers surveyed said the host location has some importance in their decision about whether to attend the NIADA Convention and Expo, including 64 percent who said it was moderately to extremely important. In addition, more than 25 percent said they had decided not to attend an NIADA Convention because of the city in which is it was located – which, according to 62 percent of them, was Las Vegas. While NIADA has just begun our relationship with the Mirage, we are already looking down the road. And as a result of these eyeopening survey results, it turns out that might be farther down the road than we’ve been in quite a while. Steve Jordan is chief executive officer of NIADA, president of NIADA Services, Inc., and publisher of Used Car Dealer magazine. He can be reached at steve@niada.com.

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S A F E T Y WAT CH

How to Increase Your Social Presence

QUICK TIPS FOR ANY SOCIAL PLATFORM BY CHELSEA MAGEE

Did you know social advertising outperforms all traditional media? It also exceeds nearly every digital ad format in both Cost-Per-Click (CPC) and Cost-Per-Thousand Impressions (CPM) of the ad… when targeted, optimized and tracked! You’re probably thinking, “Great! So how do I get started?” To get your actual customers or prospective customers to follow you, you need to give them a good reason. Below are some quick tips you can utilize on any social platform. Accept the importance of social media. You need to realize that social media is here, and it’s not going anywhere. If you resist the change, you are sure to fall

AUTO DEALER NEWS

behind. So what’s the good news? A little bit of effort goes a long way! Be visual! Pictures drive engagement, regardless of the platform! Content with relevant images gets 94 percent more views than content without related images. Utilize images that will immediately intrigue, delight and connect with your audience (And no, I don’t mean just pictures of your inventory!). You might want to think about it this way: Images are bold, beautiful and simple to scan. Visuals are especially important in our quick-paced society. People love to see themselves online, and pictures draw them in, so consider posting photos of happy customers (with their permission). Do you have an animal mascot at the dealership? Involve them! Pets and animals seem to get a lot of “likes.” Engagement is essential. Keep your customers engaged with games and giveaways. Think about your target audience. What do they want? What are their hobbies and lifestyles? In Lexington, I might

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offer tickets to a University of Kentucky basketball game. What would appeal to your clientele? You also need to think about how much effort from your consumer you are asking – match the giveaway with your ask. If you give too little, you won’t get a lot of motivation, and you won’t gain followers or increase engagement. You might get a ton of followers when you offer a grand giveaway, but you also run the risk of consumers not trusting you. Our industry already has an issue with distrust, so don’t prove consumers’ worst fears right! A quick note about giveaways in social media: Most channels have pretty strict rules about contests and giveaways, so be sure to check terms and conditions. These rules change frequently, so review them before any contest, just to be safe. Chelsea Magee has been involved in digital throughout her career. She is the Client Success Director at NCM and oversees their online training website, digital marketing and social media. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute.com) and is reprinted with permission.

Hyundai Recalls Sonatas for Steering Issues

MAY LOSE POWER STEERING ASSIST

Hyundai Motor Company is recalling 173,000 model year 2011 Sonata vehicles manufactured Dec. 11, 2009, to Oct. 31, 2010. In the affected vehicles, the Electronic Power Steering circuit board may be damaged and result in a loss of power steering assist. With a loss of power steering assist, extra steering effort will be required, especially at lower speeds, increasing the risk of a crash. Hyundai will notify owners, and dealers will replace the EPS control unit, free of charge. The recall is expected to begin May 30. Hyundai’s number for this recall is 143.

AUTO DEALER NEWS

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M A N AG E MEN T M AT T ERS

Lessons Learned From Irate Customers

into your corner. Preparedness comes from having the structure in mind that will allow your persuasive and reassuring abilities to control the situation. Maybe it was your staff, your management team or a salesman, but the buck stops with you. TAKE THE HIGH GROUND As you listen to the complaint, BY JOE CURCILLO pay attention to how the caller became disgruntled and match Boss Deborah is his words to the organizational sitting in her office structure and discipline you when she hears her secretary, have in place. Many times Mary, attempting to get a word the caller reached your desk in as she deals with a rather because someone in the chain stubborn and authoritative of command failed to listen and customer. address his concerns. The call is transferred Let’s begin with the approach into Deborah’s office. Mary announces, “Mr. Money is on the – how you manage the window phone. He is angry and demands between the “ring” and the “answer” defines the experience your help.” as educational, confrontational As Deborah reaches for her or successful. phone, how she handles the In the seconds before next few seconds will determine answering the call or beginning whether Mr. Money will raise or lower the bottom line on the next the contact, keep in mind that the best way to initiate control monthly report. is to take the high ground. Not In the time it takes to reach just the high road of virtue and for the phone and say “Hello,” doing the right thing, but the you must have the focus and high ground as a vantage point to knowledge necessary to take observe the situation as a whole. control and lead the caller back

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Prepare to remove yourself from the fray and look at the big picture. The best means of accomplishing this is to remember these rules: Do not speak until you have truly listened: The opposite of speaking is not listening – it is waiting to speak. Listening is a separate task and, in fact, is an art. The easiest of all customers to deal with in the world of irate customers is the one that just wants to be heard. Everyone has dealt with someone who expressed every detail of his complaint to every person in the organization. The repeated telling of the story is your first indication that all he needs is understanding and reassurance. He wants someone to listen. Make that person you. Do not defend until you have heard the attack: Step back and allow the speaker to talk. As you listen, do not formulate your response – follow the speaker with an eye toward understanding the nature of the allegations. The ability to effectively challenge someone’s argument hinges on your understanding

of their argument, not on the merits of your own. Taking control of a situation requires paying attention to what is being said so you can take all you’ve heard and use it as you map out your proposed solution. Adopting the other person’s arguments makes it much more difficult to logically rebuff your offer of resolution. Identify the true nature of the complaint and the complainant: There are many reasons a person complains. Dissatisfaction with a product or service is obvious, but some complaints are born and nurtured in environments outside of your control. Taking control of those complaints requires listening and exploring with questions the circumstances leading the customer to your door. Some people are simply disappointed with your entire industry. It is necessary to set yourself apart from the herd and let the speaker know you care. Some complaints come from a lack of clear expectations. Explore their concerns and guide them back to a more realistic path. CONTINUED ON PAGE 22

CONTINUED FROM PAGE 20 Lessons Learned From Irate Customers

The most difficult complainant is the person who, due to his own shortcomings, is unable to understand the reason for the problem is his inability to follow instructions or guidance. It is essential to speak to those people as you would to a friend. Make sure your vocabulary and speech is simple enough that they can follow your directions to the letter – but do not allow yourself to come across as condescending. That can be avoided by remaining social and human as you address your customer. Focus on areas in which you and your company can improve: Learn. Even the most irrational or self-absorbed customers can teach you valuable lessons to improve service. By looking for areas of improvement in every conversation, you will not only actively listen, you’ll enjoy the opportunity to grow and become better.

P RODUC T S & SER V ICES

Routeone eContracting Growth Expands STREAMLINED PROCESSES AND INCREASED FINANCE SOURCES

RouteOne eContracting volume increased nearly 30 percent to 2 million contracts processed in 2015 after more than doubling in 2014. The growth is attributable to widespread adoption by over 5,300 dealers and increased finance source participation. To support that growth and further streamline dealer processes, RouteOne implemented numerous enhancements. A complimentary tablet computer e-signing app was launched to de-tether the signing process and reduce reliance on proprietary devices. The ability to Paper Out® was enabled to allow any deal to start as an eContract and then simply convert to paper if it's rejected.

Joe Curcillo, “The Mindshark,” is a speaker, entertainer, lawyer and communications expert, and an adjunct professor at Widener University School of Law. For more information, visit www. themindshark.com.

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In addition, the capability for dealers to switch a credit application associated with an eContract was added to better facilitate spot delivery and other similar needs. The number of finance sources and dealer management systems (DMS) available for eContracting also increased and is expected to grow again in 2016. “Growth is great,” said RouteOne CEO Mike Jurecki, “but what is more important is that eContracting is making it easier to buy and finance vehicles. It is helping ensure consumers are always presented with the most current finance contract and disclosures, completed with correct, validated data, and that their signatures are captured where needed. eContracting supports a better and more transparent consumer experience, reduces errors and contract returns, and provides a faster funding process for dealers. It is a win for everyone.”

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M A N AG E MEN T M AT T ERS

A Triple Dog Dare STOP STALLING AND SOLVE THAT DEALERSHIP PROBLEM BY STEVE HALL

Nothing could get me moving outside my comfort zone faster as a kid than a friend’s dare! Granted, many times those dares weren’t the wisest actions to take, but peer pressure will make you do some amazing things. The power of a dare: action. There is no better case for how far a dare can take you than the 1983 movie classic A Christmas Story when young Flick has the gauntlet thrown down: the triple dog dare. This kind of dare, we’re told, challenges your manhood along with your entire social status. And it can really make people do things they normally wouldn’t. In the scene, Flick falls for the bait and ends up in the brutal cold with his tongue stuck to a frozen metal flagpole while everyone else runs away. Not exactly the result he wanted. I triple dog dare you to address a dealership issue.

I don’t want to get you to take unwise actions, but take positive steps. I dare you to take action. Forget that, I’m going to go all in and triple dog dare you to take action! I challenge you to address one of the issues listed below. Or, if you’re tough enough, do all three! 1) Have the tough conversation with “that” employee. Most departments have one employee who just doesn’t get it. Maybe production is too low. Maybe the attitude is all wrong. It might be that attendance or punctuality is deficient. Whatever the reason, you and I both know they are a cancer in the department. Yet, you have put off the tough talk with them. Sure, conflict is tough, and you may not want to lose the person. You also know in your heart the conversation must happen. Whatever the reason you haven’t addressed the person, I triple dog dare you to face reality and do it today! 2) Meet with your boss and admit something you don’t understand. People never want to admit they don’t know something. Yet, if our leadership

isn’t aware of a deficiency they can’t help us improve. If you’re not sure of how to improve profitability, margins or growth – or even the best way to lead your team – be direct and honest with your supervisor. Show them your vulnerability and your true desire to learn. Not only will they appreciate the honesty, but it will improve the respect for you as a manager. Requesting training shows you want to learn, not just be a smoke blowing know-it-all who really doesn’t know it all. I triple dog dare you to have an honest relationship with your boss. 3) Take charge of your career. Take time from your schedule to attend a training class or workshop. Buy a book on business or leadership. (Yes, an actual hardcover – without pictures!) And then, I challenge you to actually read it. If you don’t take charge of improving your knowledge base, who will? Learn how to become a better leader of your people. Read the book within the next 30 days, highlighting items that jump out to you. Not sure what would be the best

book for you? Just email me and I’ll give you a few suggestions. Do whatever it takes to improve yourself. I triple dog dare you to get started on the path of selfimprovement within the next seven days. So, there they are: my “childish” dares. While I certainly don’t want to hear about your tongue stuck to a frozen pole, I do want to know if you accept my triple dog dares! Send me an email at info@ncmassociates.com and let me know how it goes. Steve Hall is a full-time instructor for the NCM Institute Center for Automotive Retail Excellence. Over the past 25-plus years, Steve’s experiences have encompassed almost every aspect of the retail automotive service, parts and body shop business. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute. com) and is reprinted with permission.

Save the date. On July 1, 2016, Electronic Lien and Title (ELT) processing will become mandatory for any North Carolina business that finances vehicles, vessels or mobile homes.

“ Complete your ADD account set up and schedule an ELT start date in order to avoid delays in filing electronic lien titles once the requirements take effect! ” – Marty Coates, Consultant, Auto Data Direct CIADA Dealer Education Trainer

Use promo code NCELT16 at sign up and receive FREE account activation!

ADD is the exclusive CIADA partner for ELT

Visit ADD123.com/ciada or call 866.923.3123

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-4524 NC ELT CIADA AD_Matt.indd 1

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2/23/16 1:43 PM

DEADLINE EXTENDED TO JUNE 30

A S SO CI AT ION NE W S

CIADA Scholarship Criteria & Guidelines DEADLINE EXTENDED TO JUNE 30 FOR $1,500 CIADA SCHOLARSHIP

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 winners will be awarded from those qualifying applications received. • 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. • A runner-up will be selected from each state to replace the winner in case he or she declines the scholarship. • 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. • 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

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test scores, information on special interest and activities, and three letters of recommendation. • 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 The CIADA office will verify the applicant’s eligibility and forward the application to the scholarship committee. • 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 winners. Applications must be submitted by June 30, 2016. • The scholarship committee shall select judges. They must be independent of CIADA and the automobile industry. S• Scholarship winners 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.

Simple Rates

120 Day Plans

Lower Expenses

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: ________________________________________________________

Day one mile one protection on all service agreements.

_____________________________________________________________________________

Nationwide coverage.

Other Activities, Interests and Accomplishments: ________________________________

Available for 15 model years back.

_____________________________________________________________________________ _____________________________________________________________________________ Schools which you have applied to, will apply to or are attending: _______________________ _____________________________________________________________________________

Mileage and coverage terms available from 3 months and up to 48 months, and Factory Wrap Protection up to 7 years. Over 75 years of combined automotive and service agreement experience to serve you and your customers needs.

CIADA Sponsor Name (recommended by): __________________________________________

No hassle claims payment, paid direct to repair facility.

Business Name: ________________________________________________________________

Devoted to our dealers needs.

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 1,15, 2016 MUSTBe BEPost POSTMarked MARKEDBy BYMay JUNE 2016

Not an RRG. Ask your current provider about their insurance.

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M A RK E T WAT CH

Acura and Toyota Hold Best Value

BY JOE OVERBY, AUTO REMARKETING SENIOR EDITOR When it comes to holding their values, Acura and Toyota have earned top billing yet again. The two brands won the luxury and mainstream categories, respectively, in the recently released Edmunds.com Best Retained Value Awards. The awards are based on the 2016 model-year vehicles with the highest projected residual values after five

years. Acura has won the top luxury spot for five years in a row, and Toyota has taken home top non-luxury honors two years in a row. Toyota vehicles were projected to hold onto 53.8 percent of their value after five years, with Acura maintaining 47.6 percent. There are also 24 segment-level category winners, of which Toyota won five. Honda, Lexus and Mercedes-Benz each won three. A full list of winners can be found here: www.edmunds.com/car-reviews/ best-retained-value-cars.html.

16 CE 17 CE 18 CE MARCH 8 SC PLE 9 CE 10-11 NC PLE 15 SC PLE 16 CE 17 CE APRIL 5 SC PLE 6 CE 7-8 NC PLE 19 CE 20 CE MAY 17 SC PLE 18 CE 19-20 NC PLE 24 CE 25 CE 26 CE JUNE 7 SC PLE 8 CE 9-10 NC PLE 21 CE 22 CE 23 SC PLE JULY 12 SC PLE 13 CE 14-15 NC PLE 20 CE 21 CE AUGUST 10 SC PLE 17 CE 23 SC PLE 24 CE 25-26 NC PLE SEPTEMBER 6 SC PLE 7 CE 8-9 NC PLE 21 CE 22-23 NC PLE OCTOBER 11 CE 12 CE 13-14 NC PLE 18 SC PLE 19 CE 20 CE NOVEMBER 8 SC PLE 9 CE 10 CE 16 CE 17-18 NC PLE DECEMBER 6 SC PLE 7 CE 8-9 NC PLE 13 CE 14 CE 15 SC PLE

TUESDAY HAMPTON INN WEDNESDAY MANHEIM AA THURSDAY MANHEIM AA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA TUESDAY CHARLESTON AA WEDNESDAY MAINHEIM AA THURSDAY BLACK YARD AA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA TUESDAY GREENSBORO AA WEDNESDAY MANHEIM AA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY MANHEIM AA TH-FR COUNTRY INN & SUITES TUESDAY CIADA WEDNESDAY GREENVILLE AA THURSDAY MANHEIM AA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA TUESDAY GREENSBORO AA WEDNESDAY MANHEIM AA THURSDAY CAROLINA AA 2016 TUESDAY WINGATE BY WYNDHAM THURSDAY CIADA TH-FR CIADA WEDNESDAY MANHEIM AA THURSDAY BLACK YARD AA 2016 WEDNESDAY CONVENTION WEDNESDAY MANHEIM AA TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA WEDNESDAY MANHEIM AA TH-FR COUNTRY INN & SUITES 2016 TUESDAY HAMPTON INN WEDNESDAY CIADA TH-FR CIADA TUESDAY WINGATE BY WYNDHAM WEDNESDAY MANHEIM AA THURSDAY BLACK YARD AA 2016 TUESDAY WINGATE BY WYNDHAM WEDNESDAY CIADA THURSDAY GREENSBORO AA WEDNESDAY MANHEIM AA TH-FR COUNTRY INN & SUITES 2016 TUEDAY WINGATE BY WYNDHAM WEDNESDAY CIADA TH-FR CIADA TUESDAY GREENSBORO AA WEDNESDAY MANHEIM AA THURSDAY CAROLINA AA

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2016 EDUCATION CLASS SCHEDULE LEXINGTON, SC KENLY RALEIGH HARRISBURG GREENVILLE STATESVILLE LEXINGTON, SC HARRISBURG HARRISBURG GREENSBORO KENLY ANDERSON, SC

LEXINGTON, SC HARRISBURG HARRISBURG KENLY MOCKSVILLE MYRTLE BEACH, SC KENLY LEXINGTON, SC HARRISBURG HARRISBURG

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

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erty Coverag

800-432-4232 www.DRISCarolinas.com Personal Lines

LEXINGTON, SC HARRISBURG HARRISBURG KENLY RALEIGH

nds Garage & Bo

HENDERSONVILLE HARRISBURG HARRISBURG LEXINGTON, SC KENLY MOCKSVILLE

Towing

Financial Planning

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LEXINGTON, SC HARRISBURG GREENSBORO KENLY RALEIGH LEXINGTON, SC HARRISBURG HARRISBURG GREENSBORO KENLY ANDERSON, SC

ercial & Prop

5643 Harrisburg Industrial Park Drive Harrisburg, NC 28075-1088

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A proud member of 30

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Complete Insurance Solutions for the Independent Dealer

DRIS is now managed by Vista Insurance Group enabling us to offer complete insurance solutions to all CIADA members. W W W. T H E C I A D A . C O M

WHY JOIN CIADA? CIADA is the only non-profit organization in the Carolinas representing independent used car dealers. Have you been thinking about joining CIADA? Take a look at just some of the benefits we have to offer our members and we think you’ll agree the $299 annual fee may be the smartest investment you can make for your business: Representation: CIADA meets regularly with DMV representatives from North and South Carolina to discuss issues that directly impact dealers. We monitor the General Assembly in both states, and act as an ongoing advocate for used car dealers, fighting on your behalf against potential legislation that could negatively impact our dealers or the used car industry as a whole. We make sure your voice is heard by government officials and regulators. Compliance and Education: CIADA is dedicated to helping you achieve your Continuing Education requirements. In addition to educational opportunities, we also provide workshops, seminars and compliance updates. Industry Information: In addition to 24/7 access to our continuously updated website, we also distribute a bimonthly magazine with the latest industry news, regulatory updates and other key information from a variety of experts and guest columnists. And don’t forget to join us at our Annual Convention and Expo in August; it’s a great opportunity to stay informed and talk with other dealers. Savings: CIADA provides members with auction discounts of over $13,000 in partnership with over 60 dealer auctions throughout the Carolinas and along the east coast. Additionally, CIADA can help you save on dealer bond and insurance costs; just ask us for a quote. We can also put you in touch with a variety of business partners, from attorneys and accountants to warranty and financial services. Our new 2015 Vendor Coupon Book will provide even more savings with our vendor partners. It really does pay to be a member of the CIADA! Individual Help: CIADA knows it’s not easy to run a dealership successfully, but you don’t have to go it alone or suffer in silence. Our qualified and experienced staff can help find answers to your questions. Looking for some mentoring, or real-world tips for success? We can connect you to some of the best dealers in the industry, including more than 15 Certified Master Dealers in the Carolinas. Remember, CIADA serves vendors, as well. As a vendor member, you help support an association that keeps dealers educated, motivated and compliant – all of which helps them maintain a profitable business. Benefits of being a vendor member include: • Solid business referrals and sponsorship opportunities • Website link listing on the CIADA website • Trade show exposure • Advertising opportunities in the CIADA magazine • Exposure to new “first time” dealers • Networking opportunities In this ever-changing and challenging industry, you need someone on your side. You really can’t afford not to belong! For more about the association and its benefits, visit www.theciada.com. If you have additional questions or need more information about membership, simply take a moment to speak with our executive director and friendly staff at 704-455-2117.

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CIADA Auction Coupon Books

$13,000 in savings on Buy/Sell fees at auctions

North Carolina Auctions Adesa Charlotte $300.00 Adesa Charlotte Online $300.00 Adesa Raleigh $300.00 Capital Auto Auction $200.00 United Mobile Auctions $200.00 Manheim Statesville $300.00 Manheim NC $300.00 Greenville Auto Auction $300.00 Greensboro Auto Auction $300.00 Speedway Auto Auction $300.00 Mendenhall Auto Auction $300.00 Ray’s Southern Auto Auction $300.00 Beaver Dam Auto Auction $300.00 Blackyard Auto Auction $200.00

South Carolina Auctions Manheim Darlington $300.00 America’s Auto Auction Greenville $300.00 Augusta Auto Auction $300.00 Carolina Auto Auction $300.00 Charleston Auto Auction $300.00 Mid-‐State Auto Auction $300.00 Rawls Auto Auction $300.00 Up State Auto Auction $300.00 Columbia Auto Auction $300.00

Out Of State Auctions ABC Auto Auction Virginia $200.00 America’s Auto Auction Atlanta Ga. $200.00 Abingdon Auto Auction Virginia $200.00 America’s A uto Auction Jacksonville Fl. $200.00 Motley’s Richmond Auto Auction Virginia $200.00 America’s Auto Auction Washington D.C. $200.00 Georgia-‐Carolina Auto Auction Georgia $200.00 Manheim Pensacola Fl. $200.00 Southeastern Auto Auction Georgia $200.00 Manheim Central Fl. $200.00 ABC Lancaster Pennsylvania $200.00 Manheim Orlando Fl. $200.00 Belair Auto Auction Maryland $200.00 Manheim Palm Beach Fl. $200.00 Adesa Jacksonville Fl. $200.00 Manheim Ft. Myers Fl. $200.00 Adesa Ocala Fl. $200.00 Manheim Lakeland Fl. $200.00 Adesa Tampa Fl. $200.00 Manheim Atlanta Ga. $200.00 Adesa Sarasota Fl. $200.00 Manheim Georgia $200.00 Adesa Eastern Tn. $200.00 Adesa Pennsylvania $200.00 Adesa Nashville Tn. $200.00 Adesa Atlanta Ga. $200.00 Adesa Knoxville Tn. $200.00 Adesa Washington D.C. $200.00 AUTO DEALER NEWS

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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 the deadline, which must be strictly adhered to so all entries may be judged fairly and fully. Call CIADA if you do not know the deadline. 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:_

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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Single:_

M A N AG E MEN T M AT T ERS

Seven Essentials for Your Reputation

BUILDING AND REPAIRING YOUR DEALERSHIP REPUTATION BY DEALERSOCKET When was the last time you Googled your dealership? If you’re like many dealers, you may be scared by what you find. The Internet is awash in harsh reviews written by frustrated customers who believe it’s their only way to move the needle. Some reviews may be accurate — others, not so much. The problem is your future customers can’t tell the difference. How can you maintain a pristine online reputation and minimize any damage already done? Ask for customer opinions. By proactively gathering buyer comments, you can pinpoint successes and opportunities for improvement ahead of time. The more an issue festers, the angrier a customer becomes. Manage your Customer Satisfaction Index (CSI) follow up process with integrated e-surveys. The immediate feedback will allow you to respond in real time. Track all incidents. Develop a clear process for complaint management, including detailed tracking of each incident. Escalate negative survey responses, buyer complaints and outstanding open items to a senior-level manager at your dealership. Whatever you do, don’t send the customer back to the employee they originally dealt with so the two of them can “work it out.” That’s a recipe for further trouble. Acknowledge angry customers. An ignored complaint is one of the quickest paths to a downhill reputational slide. As much as you want to just delete that email or hang up the phone, you must face the music when a customer is mad. Start by acknowledging their outrage and putting yourself in their position, as hard as that may be. Even if you know they are 100 percent wrong, ask yourself how you would like to be treated if you were in the customer’s shoes. Swallowing a little pride may mean the difference between a scathing online review and the customer not bothering to pursue it further. Squelch the concerns. Of course, if your dealership was in the wrong you should do what it takes to correct the situation. However, what about gray areas? In those cases, ask yourself what you would lose by helping the customer out. Is that expense worth more than what you would lose from another negative review or, even worse, a potential lawsuit or regulator audit? The headache and expense of legal ramifications may make it more costefficient to just give the buyer what they’re asking for (assuming it’s reasonable) and move on. Even in cases where the customer clearly

has no case, consider what you could offer that would still make them feel as if they won something. That’s usually enough to satisfy an angry buyer, and it will save you serious time and money down the line. Calmly respond to negative reviews. Some sites will remove or suppress negative reviews for a fee, but you can’t count on that. Many other review sites, including Google Reviews, offer little to no way of removing critical feedback. Your best course of action is to respond quickly and thoughtfully. The original reviewer may or may not see your public response. However, people searching for your dealership will see it and form an opinion based on how you address criticism. Be polite, apologetic and gracious, even if the customer is rude. Other readers will remember how you handled a tough situation with class, and they’ll feel confident you will treat them fairly should they ever have an issue. Keep your responses brief, and never publicly rehash details of the customer’s situation. Instead, acknowledge their frustration, sincerely apologize, and invite them to engage offline. If possible, give them a direct line to call so it’s clear they are receiving special attention. Fight the bad with the good. If you can’t remove negative reviews and you’ve already responded to them, the next step is to bury them. Try to get as many positive reviews on as many sites as possible. While you should avoid offering incentives, you can still: • Direct positive survey responses via automated emails to Google Reviews, Facebook, Yelp, DealerRater, and/or any websites where you currently have negative reviews. Buyers who shared their happy experiences in a survey will

be more likely to share on a review site. • At the time of sale, ask customers if they were pleased with your service. If they answer yes, encourage them to share their experience on a specific review site. Consider printing a handout with instructions to make it as easy as possible. • When customers visit in person to make a payment, ask them about their satisfaction with their purchase. Use that as another opportunity to ask for reviews. In your quest to garner positive reviews, resist the temptation to write them yourself or ask employees to post fake customer reviews. Shady tactics like these will come back to bite you, I promise. If you really need to boost your online rankings, you could ask team members to leave a review but only with full disclosure that they work at your dealership and are sharing their experience as an employee (not a customer). These kinds of stories aren’t as compelling as someone with no vested interest in the dealership, but they still boost your overall rating. Ramp up your community involvement. Run your dealership as an upstanding corporate citizen by sponsoring local events or donating to worthwhile charities. Then, share your community involvement through social media, photos and thank you certificates hung at your store. You may even wish to give a shout-out to your most satisfied customers on Facebook. Take pictures with happy car buyers holding their new car keys, and publicly congratulate them on their purchase. While it’s impossible to stop every single complaint, you still have an arsenal of options. If you treat customers right, and make sure your community knows it, your dealership’s reputation can endure for the long haul.

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CIADA 61st ANNUAL CONVENTION AND EXPO

CIADA 61st Annual Convention and Expo

Embassy Suites at Kingston Plantation, Myrtle Beach, SC August 11-14, 2016

Dealer Number: _________________

Company Name: _______________________________________________________________________ Address: _________________________________ City, State Zip: ________________________________ Phone: ___________________ Fax: ___________________ Email: _______________________________

GOLD PASS Member $300 Non-Member $350 Prices will increase by $100 after 07/05/2016. Opening Ceremony Gold Medal Education Exhibition Gala Closing Ceremony

SILVER PASS FRIDAY ONLY Member $225 Non-Member $300 Prices will increase by $50 after 07/05/2016. • Gold Medal Education • Exhibition Gala

• • • •

BRONZE PASS CHILD ACCESS Member $100 Non-Member $125 Prices will Increase by $25 after 07/05/2016. Ages 7-14 Opening Ceremony Exhibition Gala Closing Ceremony or Kids Only Party (sign-up on reverse)

Please list attendee name, select ticket type, circle for education certificate, and list any event you will not be attending! 1.

Name: __________________________ Ticket Type: Gold / Silver / Bronze Certificate: YES / NO

Any Event You Will Not Be Attending: _____________________________________________________ 2.

Name: __________________________ Ticket Type: Gold / Silver / Bronze Certificate: YES / NO

Any Event You Will Not Be Attending: _____________________________________________________ 3.

Name: __________________________ Ticket Type: Gold / Silver / Bronze Certificate: YES / NO

Any Event You Will Not Be Attending: _____________________________________________________ 4.

Name: __________________________ Ticket Type: Gold / Silver / Bronze Certificate: YES / NO

Any Event You Will Not Be Attending: _____________________________________________________ 36

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Saturday, August 13, 2016 GOLF REGISTRATION FORM Start Time 12:00 p.m. Saturday, August 13, 2016 Start Time 12:00 p.m.

Dealer Registration Form

First Timer: _____________

• • • •

REGISTRATION FORM AND EXPO CIADA 61stGOLF ANNUAL CONVENTION

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Company Information: (Please print or type all information) Company Information: (Please print or type all information) Company Name Company Name Mailing Address Mailing Address City City Telephone

State

Zip Code

State

Zip Code Email

Fax

REGISTRATION INFORMATION: Telephone

Fax Name:

Early Rate (Before 7/3/15) Regular (7/4/15 or later) Email

Golf Hdcp____ ___________________________ X $135 REGISTRATION INFORMATION: Early Rate (Before 7/3/15) Name: Golf Hdcp____ ____________________________ X $135 Golf Hdcp____ Golf Hdcp____ Golf Hdcp____ Golf Hdcp____

___________________________ X $135 ____________________________ ____________________________ X $135 ____________________________ X $135 ____________________________ X $135

PLEASE NOTE THE FOLLOWING:

TOTAL

XRegular $155 (7/4/15 or later)$_______ TOTAL X $155 $_______ X $155 $_______ X $155 $_______ X $155 $_______ X $155 $_______

1. 2.

Resort will not be responsible for signs and/or banners left on property. will not be responsible for any merchandise, prizes, etc. left on property after date of tournament (including vehicles for hole-in-one PLEASEResort NOTE THE FOLLOWING: contests). 1. Resort will not be responsible for signs and/or banners left on property. 3. Absolutely no coolers allowed! 2. Resort will not be responsible for any merchandise, prizes, etc. left on property after date of tournament (including vehicles for hole-in-one 4. Caddies and Forecaddies are available at a rate of $50 and $20 respectively. Rates are per person/bag. contests). PROPER ATTIRE: 3. Absolutely no coolers allowed! 1. Acceptable attire: collared shirt, long pants or walking shorts. 4. Caddies and Forecaddies are available at a rate of $50 and $20 respectively. Rates are per person/bag. 2. Unacceptable attire: t-shirts, tank tops, athletic shorts, cut-offs or jeans. PROPER ATTIRE: 3. Metal Spikes are not allowed at the resort. Golf shoes may be re-spiked at an additional charge. 1. Acceptable attire: collared shirt, long pants or walking shorts. 2. Unacceptable attire: t-shirts, tank tops, athletic shorts, cut-offs or jeans. PAYMENT INFORMATION: FULL PAYMENT ACCOMPANY REGISTRATION FORMS 3. Metal Spikes are not allowed at the resort. Golf shoes MUST may be re-spiked at an additional charge.

TOTAL AMOUNT________ ENCLOSED (payable to CIADA) ____VisaFORMS ____Mastercard PAYMENT INFORMATION:_____CHECK FULL PAYMENT MUST ACCOMPANY REGISTRATION Credit Card # ________ ________ ________ ________ Expires________ V-Code_________ TOTAL Card AMOUNT________ _____CHECK ENCLOSED (payable to CIADA) ____Visa ____Mastercard Credit Billing Address ___________________________________________________________________ Credit Card # ________ ________ ________ ________ Expires________ V-Code_________ Name on Card__________________________ Email (for receipt) ___________________________________ Credit Card Billing Address ___________________________________________________________________ Signature_____________________________________ Name on Card__________________________ Email (for receipt) ___________________________________ Signature_____________________________________ MAIL OR FAX THIS FORM TO: CIADA Attn: Jenny Myrick, 5643 Harrisburg Industrial Park Dr., Harrisburg, NC 28075 or FAX: 800-992-4232 MAIL OR FAX THIS FORM TO: CIADA Attn: Jenny Myrick, 5643 Harrisburg Industrial Park Dr., Harrisburg, NC 28075 or FAX: 800-992-4232 AUTO DEALER NEWS

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61st Annual Convention and Expo Booth Application-Contract for Exhibit Space Embassy Suites at Kingston Plantation, Myrtle Beach, SC, August 11-14, 2016 DATE: Friday, August 12, 2016 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: 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? High Speed Internet Connection? Full Page Color Ad in Convention Program?

__Y __N __Y __N __Y __N

Early Bird: Before June 1, 2016 $1,595.00 $1,995.00 $0.00 $300.00 $300.00

Regular: After June 1, 2016 $1,795.00 $2,195.00 $0.00 $350.00 $350.00

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 2016, at th The Embassy Suites at Kingston Plantation Myrtle Beach, SC, Friday, August 12 ,2016. 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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