CIADA MEMBER IN NEWS AFTER HELPING V E T. PAGE 9
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JOIN US FOR OUR ANNUAL JUNE MONTH OF GIVING
“Rachel’s Challenge is THE MOST
POWERFUL INTERVENTION
I have seen in 40 years of working in education.” - Dr. Robert Marzano
Awakening individual TRANSFORMATION and promoting SAFER, MORE CONNECTED SCHOOLS.
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JOIN US FOR MINI FUNDRAISING EVENTS THROUGHOUT THE MONTH! ALL PROCEEDS GO TO RACHEL’S CHALLENGE. • Mystery Trunk Auction - June 14th • Event Package Live Auction - June 28th • Put a DAAR Employee in Jail - June 28th + Other fun activities to help raise money to support a great local charity
AUCTION DAY - EVERY THURSDAY AT 9AM
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INSIDE
FRONT RANGE CLASSES |
05..............CIADA President Wins Auctioneer Championship 08.................................................NIADA Convention Preview 09...............................................CIADA Member in the News 10............................................................Don’t Step on a Rake 12.................................57 Million Vehicles with Open Recalls 14..........................................................................Charity Fund 17............................................................... CIADA Scholarship
WHAT’S NEW
NIADA NABD Convention & Expo Register Now! Registration is open for the NIADA/NABD Convention & Expo, June 18-21 in Orlando! With the forces of NIADA and NABD combined, it promises to be the most robust convention yet. Learn more and register today at www.niadaconvention.com.
CIADA
Lakewood, Colorado Education & Training Center 950 Wadsworth Blvd., Suite 101 Lakewood, CO 80214
www.ciada.org phone 303.239.8000
PRE-LICENSING CERTIFICATION Colorado state statute requires anyone applying for a used motor vehicle dealer’s license or a used powersports dealer’s license be certified through a pre-licensing course. This seminar is also offered to salespeople to be able to pass the New Mastery Examination Test. Class is held at least once a week. Check our website for dates.
Call CIADA for information on these classes, or to get your forms and/or Dealer/Salespersons Bonds.
ADVERTISERS INDEX
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BASIC TITLE TRAINING CLASS Join us to get updated information to learn the CORRECT way to fill out your paperwork at time of sale and other topics including title compliance, do’s and don’ts for titles and more. This class is held once a month for half a day.
All classes are subject to change without notice. Please check our website www.ciada.org for any changes.
Alliance Inspection Management.......................................... 13 AmTrust Financial ....................................................Back Cover AutoZone .................................................................................9 Dealers AA of the Rockies....................................................IFC Lobel Financial .........................................................................3 Loveland Auto Auction ............................................................5 Manheim ................................................................................ 11 NextGear Capital.................................................................... 12 vAuto ....................................................................................IBC
OFFICE
For information on how to become a member of CIADA, please contact Todd O’Connell 950 Wadsworth Blvd., Suite 101 • Lakewood, CO 80214 303.239.8000 toddo@ciada.org
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. CIADA Insider 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 Insider 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 © 2018 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES
BOARD OF DIRECTORS OFFICERS
Tim Gaylord Gaylord Leasing Company Inc. 303-667-6188
Vice-President
Teshome Tesfaye Norfolk Motors 720-298-1796
Secretary
Mike Whistance Country Truck and Auto 303-857-1281
Dean Gunter Mile High Car Company 719-570-7800
John Lindberg Auto Warehouse 970-490-2886
Jim Bode J. Bode Used Cars 303-366-1535
Troy Graff • troy@niada.com EDITORS
Treasurer
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com
Mark Weida Street Smart Auto Brokers 719-434-8443
MAGAZINE LAYOUT
Christy Haynes • christy@niada.com PRINTING
Chairman of the Board
Nieman Printing
DIRECTORS.
President
Dan Berkenkotter Berkenkotter Motors 303-809-1618
Lucas Jozefkowicz Denver Autos 303-573-1333
Mike Widhalm Reds Auto and Truck 303-726-5520
Ajet Zalli Zalli Motors 970-797-2608
PAST PRESIDENT / DIRECTORS Jim Bahne Bahne, Inc 720-934-9806
Mike Bonicelli Nevada Auto Sales 719-635-2533
Dave Cardella Mountain States Auto Group 303-887-8977 Peppe DeMarco Highline Motors 970-206-9963
Roger Kirlin Roger Kirlin Auto Sales 303-526-7805
Stan Martin Stan’s Auto Sales 303-650-1011
Joe McCloskey McCloskey Motors 719-594-9400
Dean Strawn AutoTrek 303-934-5600
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ASSOCIATION NEWS |
CIADA PRESIDENT WINS AUCTIONEER CHAMPIONSHIP
Dean Gunter is 2018 Colorado State Auctioneer Champion
During the 60th anniversary Colorado Auctioneers Association Convention, auctioneers from all over the state competed in the annual State Auctioneer Championship. Dean Gunter, CIADA president and owner of Mile High Car Company, was crowned as the champion. The competition consists of two rounds of auctioning at a live public auction. Each contestant is judged on appearance and presentation, body language, chant and desirability to be hired by the judge. Along with the title, the state champion receives a custom designed belt buckle, the coveted Chuck Cumberland “Go Your Best� trophy and a cash prize to compete at the National Auctioneers Association International Auctioneers Championship being held in July during the NAA Convention in Jacksonville, Fla. Dean Gunter of Colorado Springs is a first-generation auctioneer, graduating from the September 2010 World Wide College of Auctioneering class in Denver. At the 2011 CAA Convention, Dean was awarded the Troil Welton Memorial Award for the CAA First Timers Competition, which is for auctioneers attending the CAA Convention who have graduated from auction school within a year. Troil Welton, of Wray, Colorado, was known for the encouragement he gave to young, aspiring auctioneers. Dean served in the Marines and was a Marine Corps drill instructor from 1977 to 1979. Helping people and the community has become a passion and a way of life for Dean as he provides auction services to local and surrounding area charities and foundations such as the CIADA Charity Fund of Colorado, NRA, and Home Front Cares, supporting veterans and many more associations to help raise funds through auctions and make a difference throughout Colorado communities.
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May/June 2018
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WASHINGTON UPDATE | BY SHAUN PETERSEN
Latest Government Issues and 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. REGULATORY A federal appeals court in March struck down parts of a Federal Communications Commission ruling, including its controversial definition of an automated telephone dialing system. In a unanimous decision, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit overturned the FCC’s 2015 definition as far too broad, noting it “invites the conclusion that all smartphones are autodialers.” According to the Telephone Consumer Protection Act, calls made with an autodialer without the receiver’s consent are a violation carrying penalties of $500 to $1,500 per instance. That law defines an autodialer as “equipment that has the capacity to store or produce telephone numbers to be called using a random sequential number generator.” In 2015, the Obama Administration’s FCC interpreted “capacity” to
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include a device’s “potential functionalities” – meaning even if a device is not capable of autodialing now, it could be with additional software or other modifications. It also said equipment that can dial numbers from a list qualifies as an autodialer. “The commission’s understanding would appear to subject ordinary calls from any conventional smartphone to the act’s coverage, an unreasonably expansive interpretation of the statute,” Judge Sri Srinivasan wrote in the court’s opinion. “It cannot be the case that every uninvited communication from a smartphone infringes federal law and that nearly every American is a TCPA violator-in-waiting, if not a violator in fact.” The court’s decision drew praise from current FCC chairman Ajit Pai, who said the now-overturned interpretation was “yet another example of the prior FCC’s disregard for the law and regulatory overreach.”
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LEGISLATIVE A resolution passed by the Senate last month likely spells the end for the Consumer Financial Protection Bureau’s much criticized 2013 guidance on indirect auto lending. S.J.Res.57, a joint resolution that would overturn the guidance under the Congressional Review Act, was introduced March 22 by Sen. Jerry Moran (R-Kan.), with 15 co-sponsors. It passed by a 5147 vote on April 18. The resolution followed a December opinion from the Government Accountability Office that defined the guidance document as a CFPB rule for the purposes of the CRA, which means it can be struck down by a simple majority vote of both houses of Congress. The indirect auto finance guidance, issued in March 2013, claimed dealer discretion on interest rates creates a “significant risk” of unintentional disparate impact discrimination and spelled out the bureau’s intention to pursue enforcement actions on that basis.
Critics have pointed out the CFPB’s theory is based on shaky methodology for determining disparate impact and the guidance was put in place without comments from stakeholders, public hearings or studies of its impact on the cost of credit to consumers. A similar resolution, H.J. Res. 132, has been introduced in the House and is expected to pass. The White House has signaled its support of the resolution and the President is expected to sign it into law. H.R. 5266: Rep. Dennis Ross (R-Fla.) and Rep. Kyrsten Sinema (D-Ariz.) have introduced a bill that would change the CFPB’s leadership from a single director to a bipartisan, five-member, Senate-confirmed commission. The bill was co-sponsored by Rep. David Scott (D-Ga.) and Ann Wagner (R-Mo.). “As one of the most powerful agencies ever created, the CFPB should not be exempt from the principles of good governance, and with this legislation, we can ensure that it no longer will be – regardless of who holds the White House,” Ross said.
GRASS ROOTS The Georgia IADA scored another victory, fighting off a third attempt by legislators to raise the title ad valorem tax on used car purchases. The tax increase would have negatively impacted independent dealers by making it more difficult for them to provide reliable transportation to customers who can’t afford new vehicles. GIADA executive director Paul John credited the association’s government affairs team of Mo Thrash and John Haliburton with the outcome, with an assist from Lt. Gov. Casey Cagle, who supported GIADA’s efforts. “This win confirms GIADA and all used car dealers across the state not only have a voice, but a very loud and powerful one,” John said. “Lawmakers heard us and they know who we are. This past session, they were reminded of just how strong we can be as a united group of small businesses.”
PAC On March 9, Rep. John Carter (R-Texas) held a luncheon in Fort Worth and NIADA was invited to participate. The NIADA-PAC also made a contribution to his campaign. Now in his seventh term in Congress after 20 years as a district court judge, Carter serves on the House Appropriations Committee and is chairman of the Homeland Security Subcommittee on Appropriations. Carter has been a supporter of the auto industry and small business since he was first elected in 2002. He was a featured speaker at NIADA’s National Leadership Conference and Legislative Summit – now known as the National Policy Conference – in 2013, the first time since 1999 the event had been held in Washington D.C. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
ACCELERATE
| BY GWC WARRANTY
GET CERTIFIED OR GET LEFT BEHIND
Having a Certifed Program is No Longer an Option
Every customer who hears “Certified Pre-Owned vehicles” instantly equates that with a more confident purchasing decision. But the power behind Certified programs isn’t limited to major manufacturers. With the right program and process in place, dealerships of any kind can cash in on the cachet behind the Certified name. These days, having a Certified program is no longer an option. Without one, your dealership runs the risk of being left in the dust. With independent dealers joining in on the Certified trend, it’s now more about how you execute your Certified program than just having one and hoping it sets you apart from competitors. Even the Playing Field If you don’t have a Certified program today, you run the risk of falling behind the industry. Independent dealers now have access to Certified programs, meaning more dealers than ever before are jumping on the bandwagon. If you look around at competition and see Certified programs popping up, it’s time to get on board before you get lapped by the field.
Marketing Power The term Certified provides a powerful lead generation tool for you. Customers see value in Certified vehicles and will seek them out when browsing inventory. By marketing your inventory as Certified, you’re providing an instant feeling of confidence to your customers who are looking for a car they can rely on. Upsell Opportunities The dealers who have the most success with Certified are the ones who rarely sell it. What this means is that strong Certified programs at independent dealerships often lead to upsell opportunities to richer coverage levels and longer terms. Certified is a basic level of coverage for your customers that should give them confidence in the vehicle, but highlighting what that coverage doesn’t cover can help customers see value in higher coverage levels, which will ultimately increase your revenue opportunities on the back end. Hone Your Skills If you’ve had trouble instituting a consistent F&I process in the past, Certified programs can help you work on upsell tactics while still having a baseline level of coverage to protect your customers. Over time as you develop your F&I process, you’ll see more upsell opportunities converted into actual back end revenue.
Renewal Opportunities Most Certified programs provide shorterterm coverage to protect your customers in the months right after the purchase. Making note of when these contracts are set to expire will give you the opportunity to engage with your customer after the sale. In checking up on your customers, you can remind them their coverage is about to run out. Even if you don’t land a VSC renewal, you might just learn about friends or family members who are shopping for cars. The extra customer touchpoint could prove profitable in the long haul.
PRODUCTS & SERVICES |
NEXTGEAR CAPITAL LAUNCHES PAYMENT FEATURE
Automated Payment System
NextGear Capital recently announced the launch of AutoPay, a new feature within the Account Portal, the floor planner’s account management platform. Account Portal provides account overviews for dealer and auction partners, including a dashboard that offers information, such as analytics and payment history, instantly on any device. The new AutoPay feature lets dealers opt into a recurring and automated payment system that schedules NextGear Capital payments. www.ciada.org
May/June 2018
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ASSOCIATION NEWS | BY ANDY FRIEDLANDER
For the past several years, NIADA has worked hard to top itself when it comes to the annual NIADA Convention and Expo.
While it hasn’t been easy, that goal has been met. Attendance has risen for each of the past five conventions, with the past two setting alltime records in that category. The 2017 event had more attendees, more exhibitors and more education sessions on more topics than any in the convention’s 71-year history. Clearing such a high bar takes extreme measures. And so, NIADA has gone mega. That’s mega as in MegaConference – for the first time ever, a showcase for the combined resources of NIADA and the National Alliance of Buy Here-Pay Here Dealers, which was acquired by NIADA in December. The acquisition was the impetus for merging NABD’s traditional May conference into NIADA’s Convention in June, which will create what is expected to be the largest event in the used car industry, one that will provide unmatched resources for independent dealers and allow you to Rewrite the Playbook for success. That event – the NIADANABD Mega-Conference, officially known as the 72nd NIADA Convention and Expo – is coming up June 18-21. After nine years in Las Vegas, it’s moving for 2018 to a brandnew venue, the luxurious Rosen Shingle Creek Resort in Orlando, Fla. So what exactly is a MegaConference? It is some 60 education sessions, the most ever for an NIADA event, covering every aspect of independent dealership operations in five distinct educational tracks – Retail, BHPH, Legal and Regulatory, CPO and an allnew Digital Marketing track. It is sessions exploring new developments and best practices in inventory acquisition, sales, marketing and advertising, F&I, collections, technology, social
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NIADA GOES MEGA NABD Joins NIADA Convention and Expo to Create the Used Car Industry’s Largest Event – the Mega-Conference
media, cybersecurity and so much more, led by the industry’s best and brightest experts – including NIADA’s own Justin Osburn. It is the top-of-the-line BHPH-specific training attendees of NABD conferences have come to expect over the years, featuring NABD founders Ken Shilson and Ingram Walters, NIADA BHPH gurus Chuck Bonanno, David Brotherton and Mark Dubois, and many more of the Buy Here-Pay Here world’s top minds. It is Wednesday afternoon’s Financing Fair, a chance for you to meet one-on-one with a variety of finance companies to discuss your specific problems – and to find solutions. It is the new Marketplace Keynote Series, offering the insights of some of the industry’s most prominent leaders, thinkers, innovators
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and disruptors about where the used car market is now and where it’s headed, as well as cutting-edge ideas on how you can take advantage of those conditions. It is by far the largest Expo Hall in NIADA Convention history, featuring more than 210 exhibitors offering the latest state-of-the-art products and services to help keep you ahead of the pack in today’s ultra-competitive used vehicle market. It is the boundless enthusiasm of keynote speaker Dick Vitale, appearing courtesy of CARFAX. Known to basketball fans for his energy, wit and colorful descriptions of players and plays, Dickie V’s entertaining message of overcoming life’s challenges and obstacles is nothing short of “awesome, baby!” He’ll speak Tuesday afternoon and will meet attendees at the CARFAX
booth during the Expo Hall’s Grand Opening Reception that evening. And, of course, it is the traditions that have become an essential part of the NIADA Convention and Expo, beginning with the popular Cigars and Martinis welcome reception Monday night, featuring a tailgate party theme. We’ll honor the industry’s best at Wednesday night’s National Leadership Awards banquet – including Crystal Eagle membership awards, the CPO Dealer of the Year the NABD BHPH Hall of Fame’s latest inductee and the NIADA & Cox Automotive Community Service Award – leading up to the climactic announcement of the National Quality Dealer of the Year on Thursday night. And we’ll close the event in style with a rocking After Party featuring live music. Your chance to go mega by attending the NIADA-NABD Mega-Conference is here now. You can register online at www.niadaconvention.com, and if you do it by May 18, you can get the Early Bird rate of $549. And don’t miss out on group discount opportunities for additional attendees from your dealership. Due to the immense interest in this event, NIADA is offering two options for accommodations. Because the Rosen Shingle Creek is almost sold out, NIADA has secured a block of rooms at the nearby Rosen Centre as well – with transportation to and from the Convention venue provided. But hurry – the deadline for reservations is May 18. For reservations at the Rosen Shingle Creek, call 1-866-996-6338 and use the group code GRP2018NIADA. For the Rosen Centre, call 1-800-204-7234 and use group code GRPNIADA2018. Don’t miss out on this great opportunity. Register and make your travel plans now. For more information about the 2018 NIADA Convention and Expo, visit www.niadaconvention.com or www.bhphinfo.com, or call 800-682-3837.
ASSOCIATION NEWS
|
CIADA MEMBER IN THE NEWS
Great Job, Levi of Levi’s Auto Sales!
J.T. Law, a 68-year-old Air Force veteran and amputee, had been trying to get a car. The engine gasket on his old Tahoe blew on July 31. It had been too expensive for him to replace but also too expensive for him to buy a new car. On top of that, no bank would help him get it financed. That was, until he came across a particularly helpful dealership in Denver. “I can’t afford much living off my disability, you know,” he said. Law served for four and a half years starting in 1969. “I was everywhere,” he said, rattling off Guam, Thailand, Japan, Vietnam, Australia and Taiwan. A year and a half ago, the doctor cut off his leg. He said it was a combination of everything: shrapnel, diabetes, clogging arteries and smoking. Living in Omaha, Neb., he needed a car to get to the hospital. “To a guy – well, to anybody – losing a leg,” he said, “I would’ve given my arm in a heartbeat, but my leg…” So he hitched a ride with a church organization to Denver, heading to Levi’s Auto Sales on West Colfax Avenue several blocks east of Sheridan Boulevard.
J.T. Law, a veteran and amputee, shakes the hand of Levi Leviyev after Levi’s Auto Sales helped him get a car.
Law said the dealership, which sells used cars, gave him the help he had been searching for. The shop worked with him to finance a 2007 Hummer H2, ran a test on the engine for free and gave him a deal on the tires – $800 instead of $1,200. Levi Leviyev, the general manager, said they took Law to a restaurant to grab some lunch while the tires were put on and made sure the spare was set for the drive back to Nebraska.
“He’s a veteran and he has a leg amputated,” Leviyev said. “Out of courtesy to our veterans, we help them out.” He said the shop has helped out veterans a couple of times back in the day, adding that they’re more than welcome to stop by. Law said he was grateful. So grateful, in fact, that he insisted on a story. “All you hear about in the newspaper or on the news on TV is bad stuff,” Law said. “You don’t hear too much about things uplifting.”
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May/June 2018
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SOCIAL MEDIA | BY KATHI KRUSE
DON’T STEP ON A RAKE Avoid Social Media Pitfalls
For many dealers, social media seems like a minefield. Add the fact it's quickly matured into a very viable place to engage customers and promote sales and you've got a terrifying place many dealers would rather ignore.
Ignoring social media in today’s world is the equivalent of opening a store without telling anyone. But all the warnings in the world are not going to motivate a dealer to take action if they still have a lot of fear. I'd like to alleviate some of that fear today. Avoiding social media pitfalls has become a big business. It's difficult to know where to turn for the best advice. For nearly 10 years now, I've been singing the “social media song” and, alas, the needle hasn't moved much, especially for auto retail. You know what? That's okay. It's perfectly fine to venture out into social media at your own pace. What I don't want you to do is venture out and step on a rake.
5 FOUNDATION ESSENTIALS FOR SOCIAL MEDIA SUCCESS
Whether you're new to social media or you've been using it for some time, these five components will help you leverage all you can from each platform.
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Secure Your Reputation with a Social Media Policy
At Kruse Control, we advocate implementing an upto-date policy for employee use of social media. The line between dealers and their employees on social media is steadily blurring. Organizations today need a social media policy that helps keep the store’s reputation intact while also encouraging employee participation online. A social media policy outlines how an organization and its employees should conduct themselves online. This document helps safeguard your brand’s reputation. Ideally, you'll want to consult with the following stakeholders when creating a social media policy for your store: • C-level (owners and managers). • Human Resources. • Corporate counsel. • Social media strategist. Because social media moves fast, this policy should be considered a living document – ongoing updates will be necessary.
Written Social Media Strategy
Social media strategy defines how a dealership will use social media to achieve its business goals, including the supporting platforms and tools it will use to do so. At a basic level, it’s a statement of intent, outlining the goals and measurable objectives for using social media, and the target outcomes you want to achieve.
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When defining what it takes to achieve social media success, we need to talk about strategy first. I was inspired to include this component because I receive questions like these from good people, many of whom are struggling to find answers: • “Do I have to be on every social network?” • “What type of things do I say on social media?” • “How often should I post?” • “How do I get more followers?” • “My boss asked me to take over the Facebook page, but where do I start?” • “Should I pay for social advertising?” • “I'm in a boring industry. Do I still need social media?” • “Do I need social media management tools?” • “Should I outsource my social media?” I've had a run of these emails lately and, frankly, my heart aches for these good people because they're lost. It's easy to get lost these days because the social media landscape is no longer a field of flowers sparsely populated. Today, social media is a dense, crowded, noisy, smoggy urban jungle.
Do a Social Media Audit
Whether your social media marketing is in-house or outsourced, it’s often difficult to see where the gaps are between your current successes and where you need to be. Your inbox is full of tips, tools and hacks to “improve” results and it’s exhausting. The best way to remove the guesswork is with a social media audit. A social media audit is a smart step because time and resources are often wasted trying to improve things that don’t need improving, while neglecting the things that really need attention.
Build an Online Review Funnel
Word of mouth referrals have always been a go-to resource for finding trusted sellers, and online ratings sites are where most people turn today.
Online reviews are insanely influential: • 90 percent of consumers read online reviews. • 88 percent trust online reviews as much as personal recommendations. • 86 percent will hesitate to purchase from a business that has negative reviews. • Customers are likely to spend 31 percent more with a business that has positive reviews. • 92 percent will use a local business if it has at least a 4-star rating. Benefits of building an online review funnel: 1. Systematically drive customers to one conversion funnel that routes them to the review sites you care about. 2. Automatically ask, remind and guide happy customers through the funnel. 3. Recover unhappy customers before they vent online. 4. Analyze results daily for actionable insights to improve upon.
Engage with Social Customer Service
People increasingly turn to social media to engage with businesses. Social has matured as a communication channel and people have blended it into their lives. They expect dealers to do the same. While many companies now use social media regularly, very few take social customer service seriously. Currently, 92.5 percent of brands fail to meet customer expectations on social media and these failures can have big implications. Quality customer service – regardless of channel – relies on a meaningful, efficient, solution-focused exchange between dealers and their customers. The growing preference for social media as a communication channel requires your organization to re-think its customer service strategy. Good social customer service strategy keeps your store in the conversation and doesn't allow malcontents and competitors to speak for you.
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.
INDUSTRY WATCH | BY CARFAX
M RE 90
%
MOBILE BUSINESS
TOOLS AND TECHNOLOGY TO HELP ME MANAGE BUSINESS MY WAY* BILLY GRAHAM GRAHAM AUTO SALES LOGANVILLE, GA
Smart. Simple. Fast. Learn how Billy gets MORE at nextgearcapital.com
*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.
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57 MILLION VEHICLES IN U.S. HAVE OPEN RECALLS New Research from Carfax Millions of vehicles being acquired, retailed and serviced by dealers this year may have potentially dangerous unfixed recalls. According to Carfax, more than 57 million recalled vehicles – more than one out of every five vehicles in the U.S. – currently are in use across the country. The company’s annual research suggests the southern parts of the country are most likely to have cars with open recalls. Southern states like Texas, Mississippi, Louisiana, New Mexico, Alabama and Arizona are some of the top states with the highest open recall percentages. California, Texas, Florida, Pennsylvania and New York have the most vehicles with open recalls. “For more than two decades, Carfax has supported the manufacturers’ efforts to get recalled cars fixed,” said Carfax president Dick Raines. “Every day we help thousands of dealers identify vehicles with open recalls. We also alert millions of drivers about
recalls on their vehicles so they can bring them to dealers to be fixed. Safety is our number one concern.” Carfax offers free services to help notify dealers and about open recalls. Carfax Advantage dealers have their inventory continuously monitored for recalls by Carfax free of charge and get regular reports identifying which vehicles have open recalls. Making this information readily available for dealers can help boost closure rates of open recalls. In addition, registering customers with myCarfax helps keep those drivers informed about recalls. For dealers with service bays, registering customers for myCarfax also comes with free benefits that help increase customer loyalty and retention. The new data also suggests that work-life balance may be a factor for some vehicle owners not knowing about a recall or getting it fixed. Light trucks and SUVs – vehicles often used by businesses and busy families – are the ones most likely to have unfixed recalls.
Recently in Vegas, Carfax checked cars for open recalls at a local DMV. They spoke to several people whose vehicles had open recalls they knew nothing about until Carfax showed them. "Carfax told me the car had an open recall. I found out that it was the driver’s airbag,” said consumer Robert V. in Redmond, Ore. “After purchasing the car it went to the local BMW dealer where it was replaced in less than an hour. I was treated royally, chatted about the car and soon was on my way. I did appreciate knowing beforehand.” Dealers can inform online shoppers about open recalls by listing their vehicles for sale on Carfax Used Car Listings. Every vehicle listed for sale on carfax.com includes the Carfax Report dealers run for each vehicle, which includes open recall information reported to Carfax and helps consumers buy with confidence. Editor’s note: Recall statistics for your area are available upon request. For more information, visit www.carfaxonline.com or call 888-788-7715.
F&I MATTERS | BY SCOTT BATES, CPA
COLLECTIONS Collections best practices are designed to increase the number of payments received on every contract – increasing cash flow and
potentially increasing sales from referrals. A shut-off box on a car is no substitute for good collections practices. You are also discouraged from making field calls, as it can violate CFPB rules – not to mention be potentially dangerous. The key is to make your payment a top priority in the mind of the customer – specifically because customers trust and perceive your dealership is willing to work with them to find a solution. Nothing can really motivate a customer to pay for a car except a strong relationship. This approach is harder than billing and repossession. It takes a different mindset among your collections and service staff, but it can be efficient if you establish a positive rapport and understanding from the beginning of the transaction. Your process and paperwork should be consistent and clean every time, no matter who is closing the deal. Emphasize that you expect payments on or before the agreed due dates. If you can, set up an electronic funds transfer with customers around their payroll
time. You can’t require it, but you can make it attractive by offering a discount. Outline the process of what will happen if they can’t pay on time. If the car malfunctions or if they need to re-figure the payment terms due to a change in circumstances, talk through those situations, too. Establish a clear process for communicating, which in some cases may be opt-in text messaging. You can now use SMS for automatic payment reminders, service reminders and late payment notices. In any and every case, keep the lines of communication open. Follow up with a check-in call. Congratulate customers on their purchase and ask them if they have any questions. Make it clear your team is there to help so their first contact with you is positive, rather than a delinquency call. Provide clear contact information for customers to reach their “account rep.” A strong closing process with full disclosure followed by a welcome check-in call reduces the need to chase down payments, and also increases the number of payments made. This won’t happen on every transaction. There will still be cases of repossession, but dealers can reduce the chances. A full inventory of cars is not what you want.
Deal with service issues quickly. One of the biggest reasons customers stop making payments is that the car has a problem. Make it clear during the closing process that any issues with the car will be handled, whether through a limited warranty or service call. Depending on the issue and timing, work out how the customer will participate in paying for the service. Calculate the cost of the repair against the benefit of more monthly payments, and often the benefit is on the side of more monthly payments and a happy customer willing to refer your dealership to friends and family. Keep in mind that your inventory is not your biggest asset – your portfolio is the golden egg. Accounts need to be worked every day by collections. Don’t just wait for the phone to ring. A 30-day past due notice equals four to six missed payments. If you have 100 accounts, a good rule of thumb is to have four collections staff and one part-timer in the wings to pitch in when necessary. Scott Bates, CPA, is a partner in the audit practice and leads Cornwell Jackson’s Business Services Department, which includes a dedicated team for outsourced accounting, bookkeeping and payroll services. Contact Scott at scott. bates@cornwelljackson.com or 972-202-8000.
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ASSOCIATION NEWS |
CHARITY FUND SUPPORTS Opportunities for Local Young Adults CIADA representatives recently visited Access Gallery to visit with all the wonderful artists and present a check from the CIADA Charity Fund to help sustain this marvelous program. Access Gallery is a nonprofit organization that engages the community by opening doors to creative, educational and economic opportunities for people with disabilities to access, experience and benefit from the arts. These young people, who are at
a disadvantage for work, college, and other post high-school options, receive professional development and compensation through corporate commissions, pet portraits and sales through Access Gallery. These young talented artists create amazing products. Many of you have seen the near full size “sticker” SUV piece and the “Hot Wheels” Colorado state flag on display at a couple of the auctions. Please keep these young entrepreneurs in mind when in need of anything artistic. They have the ability to create/ design a variety of custom
masterpieces to fit any need, large or small. Contact associate director Cris Ciani with any requests or questions at 303-777-0797. The CIADA Charity Fund exists to represent the goodwill of independent used car dealers to help all Colorado communities with aid, scholarships and support to make a positive difference among families of Colorado. CIADA Charity Fund is looking to provide additional aid to the less fortunate in Colorado’s communities. If you know someone in need of aid, please contact CIADA at 303-239-8000.
John Lindberg (right) and artists with his newly purchased, one of a kind “Smiley Face” piece of art for his dealership.
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ACCESS GALLERY
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PRODUCTS & SERVICES |
ROADRUNNER SERVICES PARTNERS WITH KC DRIVE AWAY
Q
A
&
Local Service Includes Colorado
How will YOU answer
a federal enforcement investigation into your business practices?
A. Subscribe to and complete the NIADA ONLINE DEALER COMPLIANCE PROGRAM B. Install self-policing policies C. Create a culture of compliance
D. ALL OF THE ABOVE
niadadealercompliance.com
Roadrunner Services, LLC, a Direct Auction Services company, recently partnered with KC Drive Away, based out of Kansas City, Mo., to offer local vehicle pickup and delivery services to complement its drive away service currently provided nationwide. Roadrunner Services locations will now include the addition of seven KC Driveaway locations throughout Missouri, Colorado and Arizona. In addition, more than 300 KC Driveaway employees have joined the Roadrunner Services team through this venture. “We are enthusiastic about the joining of forces with KC Drive Away and the opportunities this venture will bring for Roadrunner Services, as well as Direct Auction Services as a whole, for 2018. The success of our partnership with KC Drive Away will broaden our service levels to customers in a variety of ways,” said Direct Auction Services owner David Nutter. Roadrunner Services COO/owner David Rush said, “We are pleased to have been able to complement our vast network of drive away and labor services with KC Drive Away. We are equally thrilled to be gaining the industry knowledge and expertise of CJ Easton and Jeff Keeling as part of the Roadrunner management team.” Direct Auction Services, LLC, is the leading provider of outsourced and on-site staffing for the nation’s automotive auction industry. It is owned and operated by experienced automotive and auto auction industry veterans who understand the business. The Direct family of businesses includes Direct Reconditioning, LLC, providing award winning detail and body/paint services, Roadrunner Services, LLC, the only provider of local pick-up and delivery services with a national footprint, and Auction Tires Online, LLC, the tire provider exclusively for auto auctions. The newest member is Direct Staffing Services (www.DAS.work), providing operational support services, including saleday driving, lot operations, clerical support and on-site staffing.
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Train. document. track. comply.
ANNUAL COMPLIANCE SUBSCRIPTION
Finally, a comprehensive dealer compliance solution that fits your schedule... and your budget.
IS ONLY $495 PER LOCATION!
Online Dealer Compliance
Now more than ever, independent auto dealers must show their diligence in operational compliance. Federal agencies like the FTC and CFPB have made it no secret that your business needs to play by the rules and show that you are taking every step to train your employees well. Available online for your entire staff (per location), NIADA’S Online Dealer Compliance modules includes 13 video training session topics below and include interactive testing after each video session:
VIDEO TOPICS • • • •
The Red Flags Rule The Safeguards Rule United States Patriot Act: OFAC U.S. Patriot Act: IRS/FENCEN FORM 8300 • National Do Not Call Act • The Federal Used Car Rule
• Compliant Sales Process • Dealer Advertising Guidelines • OSHA: Dealer Health & Safety Program • OSHA: Hazzard Communication Program • OSHA: Auto Repair Safety • Workplace Diversity • Sexual Harassment
DOWNLOAD COMPLIANCE POLICIES & DEAL AGREEMENTS • Download and print a variety of federally-required dealership compliance policies • Download and print documents & agreementsdesigned to limit dealer liability
For more information and to subscribe now, visit
www.niadadealercompliance.com or call Angela at 817-640-3838.
Please type or print legibly. Name (first, middle, last) Home Address_ State Zip
City
County
Fax
Telephone Email How many years a Colorado Resident Name of Parents or Guardian Address City
State Zip
County_
Name of High School, College or University Address City
CIADA SCHOLARSHIP |
County_
How many years in College or University (names and addresses)
USED CAR DEALERS OF COLORADO CHARITY FUND ANNUAL SCHOLARSHIP PROGRAM
State Zip
Date Graduated from High School
================================================================================= Please provide the following information. Additional pages may be attached as necessary.
Extracurricular activities, offices and accomplishments
Awards and Distinctions_
DEADLINE SEPTEMBER 10
Eligibility Criteria: You must • Be classified as a high school senior during the current 2018 school year, legally residing in Colorado or a current full-time college, university or approved trade school student. • Have maintained an outstanding academic achievement record as reflected by an official high school transcript or college or university records. • Demonstrate an aptitude for college work as measured by SAT or ACT scores. • Be a citizen of the United States of America. • Be a resident of Colorado for a minimum of the last three years. • Be pursuing a science, technology, engineering, arts or math degree from a college or university or attending an approved accredited trade school. All scholarships will be awarded on an objective basis without discrimination for race, age, national origin, religion, sexual orientation, or ethnic background. The number and scholarship amount will be determined by how many qualified applications are submitted. Scholarships are funded for the 2019 Spring Semester. A minimum of 10 scholarships of at least $1,000 will be awarded.
Application Process:
Community Involvement
Employment History
Career Goals
================================================================================= Major / Areas of Study
Hometown newspaper Newspaper website or mailing address
================================================================================= REQUIRED ESSAY (Minimum 1200 words)
Submit the completed application form with the required attachments in a 10’’ X 13’’ envelope, with adequate postage to: Scholarship Selection Committee Used Car Dealers of Colorado Charity Fund 950 Wadsworth Blvd. Suite 101 Lakewood, CO 80214 All information MUST be included with the original application. Additional information will not be accepted at a later date.
THE DEADLINE IS SEPTEMBER 10, 2018.
Please attach required essay, telling us about experiences that have influenced your decision to pursue a degree in Science, Technology, Engineering, Arts, Math or Trade School and how these experiences will help you in this career choice. ADDITIONAL REQUIRED ATTACHMENTS 1. Official high school transcript required for Freshmen. 2. Maintain Academic Standards with a minimum 2.5 Grade Point Average. 3. SAT or ACT Scores Report—may be included on the transcript. 4. Letter(s) of recommendation (no more than 5) from high school counselor, principal, teacher, employer, etc.
I, as the scholarship applicant, certify that the enclosed information is correct to the best of my knowledge. I hereby grant the Used Car Dealers of Colorado Charity Fund permission to release this information, including the required attachments, to the Scholarship Selection Committee.
Signature
Date
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Membership Application CIADA Acct # : ___________________
Date:__________________ Select One: Entity Type:
Used Car Dealer Individual
Wholesale Partnership
Franchised Corporation
Associate Member Ltd Liability Co (LLC)
Business Name: _________________________________________________________________________________ DBA/Trade Name: ______________________________________________________________________________ Dealer # :____________ Physical Address:___________________________________________________________ City:____________________________ State:_________ Zip:_______ County:_____________________________ Mailing Address: ___________________________________City:__________ State:________ Zip:____________ Business #___________________Fax #________________ Cell #________________Home #__________________ E-mail Address:____________________________________ Web Site:____________________________________ Owner #1:__________________________________ Spouse:____________________________________________ Home Address:_________________________________________________________________________________ City:____________________________ State:_________ Zip:_______ County:_____________________________ Owner #2:___________________________________ Spouse:____________________________________________
Home Address:__________________________________________________________________________________ City:____________________________ State:_________ Zip:_______ County:______________________________ Membership Dues Are $225.00 annually, which includes $60 for NIADA.
For income tax purposes, member dues paid to CIADA are deductible as a business expense. CIADA estimates that 15% of all dues paid to CIADA are utilized for nondeductible lobbying expenditures. All members are advised that this percentage of dues paid to CIADA in the tax year 2018 is non-deductible for income tax purposes. Consult your tax advisor. By completing this form, I am consenting to and giving CIADA, its affiliates and subsidiaries, my permission to contact me and provide information to me at the mailing and e-mail address, telephone and fax number(s) I have provided.
Please Support Your Political Committee Fund: Select contribution amount to be included with payment below: $200 $75 $50
---------------------------------------------------------------------------------------PLEASE INDICATE PAYMENT METHOD: Please remit payment with this completed application.
Check (payable to CIADA-see address below) Credit Card: NAME ON CARD: ________________________________________________________________________________________ BILLING ADDRESS:______________________________________________________________________________________ CREDIT CARD #:__________________________________________________EXPIRATION DATE:___________________ VERIFICATION CODE (Last 3 digits on back):______________ AUTHORIZED SIGNATURE:______________________________________________________ Mail or Fax Application to: COLORADO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 950 WADSWORTH BLVD # 101., LAKEWOOD, CO 80214 PHONE: (303) 239-8000 FAX: (303) 237-3305 WWW.CIADA.ORG
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