S TAT E A F F I L I AT E
CIADA
INSIDER
MAGAZINE
COLORADO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION NOVEMBER/DECEMBER 2017
ASSOCIATION NEWS
NIADA CPO COMES TO COLORADO! Celebrating New CPO Dealers in Colorado PAGE 18
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V I S I T U S AT W W W.C I A D A .O R G
INSIDE
06 .......................................................... CIADA Ambassadors 08..................... Securing Vehicle Service Contract Financing 12................................................................. CIADA Gala Night 14........................................4 Misunderstandings about Price 18...........................................NIADA CPO comes to Colorado 20..................................................National Policy Conference 22.........................................Improving Your “About Us” Page
WHAT’S NEW
SPECIAL FEATURES: DISASTER RELIEF
NIADA and Spireon recently teamed up to provide disaster relief to those directly impacted by hurricanes Harvey and Irma. Partnering with the NIADA Foundation Disaster Relief Fund, Spireon is contributing $100,000 through the end of the year to help with recovery. Spireon is also helping customers get their businesses back up and running through data on their NSpire platform. To learn more, check out the story on NIADA.tv’s Special Features channel.
ADVERTISERS INDEX
FRONT RANGE CLASSES
COLORADO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION 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.
Alliance Inspection Management .....................................19 AmTrust Financial ..............................................................15 Black Book........................................................................... 5 BMW Group Direct ............................................................17 Dealers AA of the Rockies ...............................................IFC Lobel Financial .....................................................................3 Loveland Auto Auction ........................................................9 Manheim............................................................................ 11 Manheim Denver ................................................ Back Cover NextGear Capital ...............................................................14 Proactive Dealer Solutions ..................................................7 Stars GPS............................................................................16 VAuto ............................................................................... IBC
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Lakewood, Colorado Education & Training Center 950 Wadsworth Blvd., Suite 101 Lakewood, CO 80214
www.ciada.org phone 303.239.8000
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.
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 © 2017 by NIADA Services, Inc.
BOARD OF DIRECTORS OFFICERS President
Tim Gaylord Gaylord Leasing Company Inc. 303-667-6188
Vice-President
Mark Weida Street Smart Auto Brokers 719-434-8443
Secretary
Teshome Tesfaye Norfolk Motors 720-298-1796
Treasurer
Mike Whistance Country Truck and Auto 303-857-1281
Dan Berkenkotter Berkenkotter Motors 303-809-1618
Dean Gunter Mile High Car Company 719-570-7800
John Lindberg Auto Warehouse 970-490-2886
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com
Jim Bode J. Bode Used Cars 303-366-1535
Lucas Jozefkowicz Denver Autos 303-573-1333
PRINTING
Nieman Printing
DIRECTORS.
Chairman
Stan Martin Stan’s Auto Sales 303-650-1011
Mike Widhalm Reds Auto and Truck 303-726-5520
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 Joe McCloskey McCloskey Motors 719-594-9400
Dean Strawn AutoTrek 303-934-5600
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CIADA Board Members with Colorado Rep. Scott Tipton (fourth from left).
ASSOCIATION NEWS
BY DAVID CARDELLA, CIADA PAST PRESIDENT
CIADA GOES TO WASHINGTON National Policy Conference & Day on Capitol Hill
September 25-27 CIADA represented you in Washington D.C. and addressed some of the issues facing our industry. This was the fifth year we ventured out to the capital, and it was undoubtedly the best reception we have ever received. Attending meetings with the Federal Trade Commission, Department of Justice, Consumer Financial Protection Bureau, Small Business Administration, National Auto Auction Association and others had a tone previously missing. Instead of focusing on the few bad actors in our industry, representatives actually
listened to and answered our questions on how we can improve the industry and remove the burdensome regulations we confront every day completing a single car deal. When the process of a car deal was explained and we pointed out over 20 documents need to be completed for every sale even they shook their heads. We talked about arbitration standards and how they could become more consistent from auction to auction. We discussed ways for the Small Business Administration to help in streamlining their process for us. Many issues were discussed and progress seems to be coming our way. Of course meeting with Colorado’s congressmen would tell the real story. It was refreshing to be able to discuss our issues with those who represent us. They took the time to sit down and listen to us as we
explained the negative impact grounding all vehicles with unrepaired open recalls would have on not only the independent dealer but consumers as well. We explained how changing the arbitration rule would open dealers to class action lawsuits and increase our costs while providing consumers with smaller settlements. We talked about the tax code and the unfair rate S corporations pay versus regular corporations and the need to keep the deduction for interest expenses such as floor planning. It is important for everyone to understand we have a voice in D.C. because of the work being done by NIADA. Your involvement is necessary unless you want others to set the rules on how you make a living. Yes, there is a different attitude in Washington D.C. this year and let’s hope it continues.
ASSOCIATION NEWS
HIGHLIGHTING NEW CIADA AMBASSADORS Helping the Association and Industry
Amanda Gordon from Maxxum Motors, Jerry Diesel from After Market Concepts and auctioneer Wesley Lamb are the newest members of the Ambassador Action Group helping get the word out to members and non-members alike about legislative, legal and compliance issues facing the industry. In addition, they are well versed in explaining the benefits of being a member of CIADA, the largest statewide association
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Amanda Gordon Maxxum Motors
Wes Lamb Auctioneer
representing the automotive industry. CIADA membership is a good business decision. This group has proven to be very beneficial to the association by growing general membership and adding dealerships to the Legal Protection Fund. They are also helping the industry stay viable by generously contributing their talent, time and expertise. Working together, the ambassadors are a potent force strengthening the association for everyone’s benefit. A strong trade association is essential to
Jerry Diesel After Market Concepts
being more proactive when addressing the many factors influencing today’s business climate, which become more evident every day. Strength and quick response time is also necessary when fighting matters that could negatively affect your dealership. With the ambassadors’ involvement and participation, these issues are addressed more effectively. This action group is helping CIADA spread the word when needed. Thanks to all of the ambassadors who are working on behalf of all in the used car business.
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ACCELERATE
BY GWC WARRANTY
TIPS TO SECURE VEHICLE SERVICE CONTRACT FINANCING How to Convince and Reassure Lenders
If you’ve heard it once, you’ve heard it a million times: “There’s no room on this deal for a vehicle service contract.” It’s a struggle so many dealers face when trying to secure the funding for not just the vehicle sale but also back end F&I products. But there’s no need to fret. Knowing some tricks of the trade can help you convince lenders of the value of a vehicle service contract while also reassuring them that including one on the deal won’t diminish their chances of receiving regular payments. Ask multiple times. Sometimes, all it takes to get a lender on board with funding a service contract is to ask again. If the initial reaction is a “no,” you can remind your lender why a service
contract is beneficial to them and ask again if it’s possible to find a touch more for the back end. Show a Certified checklist. A lender’s primary concern is ensuring they continue to get paid. Nothing can stop that more quickly than a broken down vehicle. Don’t be afraid to show a hesitant lender the checklist from your Certified program to help get them over the edge and on board with a service contract on the deal. It will demonstrate the effort you put into reconditioning and make the lender more comfortable with the quality of the vehicle. Provide protection from delinquencies. Like you and your lender know, a broken down vehicle usually leads to a broken down loan. And what better way to keep a vehicle on the road than a service contract that protects customers from budgetbusting repair bills. Remind your lenders of this fact when attempting to secure back end funding. Stress the importance of protecting subprime customers. One objection you might hear is a customer’s credit score is preventing you from securing additional funding. In this case, you can reference the tight monthly budgets of many subprime customers
as further evidence a service contract is needed. It’s assurance that an already tight budget won’t get tighter because of an unexpected repair, hence keeping the payments rolling into your lender. Build a great relationship. The more you and your lender work together and succeed on deals with a service contract, the more confident you will get with each other. And the more confident you are with each other, the better the prospects for a prosperous and profitable future together. Highlight for your lenders that making a deal work today could lead to many more deals down the road.
INDUSTRY NEWS
GWC WARRANTY NAMES REVENUE OFFICER Brian Stach GWC Warranty has appointed Brian Stach as the company’s new chief revenue officer. In his role, Stach will oversee all of GWC Warranty’s field sales operations, including a nationwide team of area vice presidents, dealer consultants and trainers. Stach, a graduate of St. Mary’s University of Minnesota, joins GWC Warranty following more than 15 years of successful sales management experience. Throughout his career, Brian has spearheaded results-driven initiatives at numerous organizations such as CareerBuilder, Yahoo and DialogTech. Most recently, he served as the vice president of sales for Internet Brands.
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MARKET WATCH
FLOOD CARS IN THE U.S. JUMP 20 PERCENT Reminder and Offer from Carfax
New research from Carfax suggests drivers may be behind the wheel of more than 325,000 previously flooded vehicles. That number is a 20 percent increase from 2016 and a stark reminder for consumers to do their due diligence when used car shopping. Vehicles reported as flood damaged by a state’s Department of Motor Vehicles, insurance companies and more have washed up in every state. These 10 states have the most:
1. Texas – 51,000 2. Louisiana – 29,000 3. Pennsylvania – 20,000 4. Florida – 19,000 5. Kentucky – 16,000 6. Illinois – 15,000 7. South Carolina – 13,000 8. Virginia – 13,000 9. North Carolina – 13,000 10. Michigan – 11,000
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LOCALIZED FLOODED VEHICLE STATISTICS ARE AVAILABLE UPON REQUEST. AN INFOGRAPHIC ALSO IS AVAILABLE FOR USE AT WWW.CARFAX.COM/PRESS/RESOURCES/FLOODED-CARS.
“I bought a car last year and the seller never told us anything about it being a flood car,” said Pennsylvania resident Charlene Geiger. “When we got home and ran a Carfax, there it was – a flood car from Hurricane Sandy. It showed the seller bought it as a salvage car and the title was washed when he brought it to Pennsylvania. We lost $16,000 over all of it.” In addition to the current total, several hundred thousand more flooded cars may emerge from hurricanes Harvey and Irma. Historically, about half the vehicles damaged by floods end up back on the market. Flooded cars rot from the inside out as water corrodes the mechanical parts, shorts the electrical system and compromises safety features like airbags and anti-lock brakes. Health concerns are an added problem, as mold and bacteria permeate the soft parts of the car.
“Our data shows there’s still much work to be done in helping consumers avoid buying flood damaged cars,” said Carfax president Dick Raines. “They can, and do, show up all over the country, whether it be a few miles or hundreds of miles from where the flooding occurred. With two devastating storms already this year, it’s vital for used car buyers everywhere to protect themselves from flooded cars that may wind up for sale. Start with a thorough test drive, a vehicle history report and a mechanic’s inspection before buying any used car.” In the wake of hurricanes Harvey and Irma, Carfax is letting consumers check for flood damage free of charge at carfax.com/ flood. Localized flooded vehicle statistics are available upon request. An infographic also is available for use at www.carfax.com/ press/resources/flooded-cars.
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ASSOCIATION NEWS
SPIREON DONATES $100,000 TO NIADA FOUNDATION’S DISASTER RELIEF FUND Major Financial Commitment to Assist the Dealer Community Affected by Hurricanes Harvey and Irma
Spireon Inc., a Diamond-level NIADA National Corporate Partner and leading provider of GPS solutions with GoldStar and other connected vehicle products, will contribute $100,000 to the NIADA Foundation’s Disaster Relief Fund to assist members of the automotive community in their recovery from the devastating effects of hurricanes Harvey and Irma. Spireon, a longtime NIADA partner, said it selected the NIADA Foundation Disaster Relief Fund for its commitment to directly contribute to its customers and the communities they serve because it was the quickest way to help in the recovery. “Our hearts and prayers go out to the folks whose lives have been impacted by hurricanes
Harvey and Irma,” Spireon CEO Kevin Weiss said. “We know the road has not been easy over the past few weeks and we know the recovery efforts will continue for months to come. “We are incredibly thankful for the support our customers have shown us over the years and feel very fortunate to be in a position to give back to these impacted communities.” In addition, Weiss said Spireon will use its NSpire platform to provide the data its customers need to help get their businesses up and running, creating reports to help identify assets potentially at risk from the storms and assist dealers in assessing the next steps for their business. “When Spireon heard the NIADA Foundation had created the Disaster Relief Fund, it quickly rallied and offered a major financial commitment to help those affected by the catastrophic storms,” said Steve Jordan, NIADA’s CEO and president of the NIADA Foundation board of trustees. “We appreciate that Spireon understands recovery doesn’t happen overnight and we are looking forward to working with Kevin
Weiss and his entire team to advance our shared goals of helping all members of the independent dealer community get back on their feet again.” The Disaster Relief Fund was established by the NIADA Foundation to provide a venue for members of the National Independent Automobile Dealers Association and its industry partners to assist fellow dealers and others in the automotive community affected by the recent storms. Jordan said 100 percent of all contributions received will be donated to provide relief from the effects of flooding, help repair property damage and assist with other disaster-related needs attributable to the catastrophic weather events that struck Houston and other areas along the Texas coast and Florida. The NIADA Foundation is a non-profit 501(c) (3) charitable organization that serves as the focal point of NIADA’s charitable efforts and coordinates the association’s charitable giving. The NIADA Foundation will continue to fund hurricane relief efforts in the coming months. It is not too late to donate. For more information or to contribute, visit www. niadafoundation.org.
We are making a difference “We are committed to helping our friends and colleagues in the automotive industry get through this trying time. Our thoughts and prayers got out to all those affected or displaced by these massive storms.”
- Steve Jordan, NIADA Foundation President and CEO
The NIADA Foundation is collecting donations for a Disaster Relief Fund for Hurricane Harvey and Hurricane Irma victims.
100% of the contributions received will be donated to those needing relief from the effects of flooding, property damage or other disaster-related needs attributable to this weather event. Donations will be made in collaboration with both the Texas IADA and the Florida IADA and will be considered on a case-by-case basis as identified through this collaborative disbursement relationship.
Contributions, which will assist the hurricane disaster victims directly, may be mailed to the address indicated below or made online.
DISASTER RELIEF FUND
Donate Here: National Independent Automobile Dealers Association Foundation 2521 Brown Boulevard • Arlington, Texas 76006
www.niadafoundation.org The NIADA Foundation is a tax exempt nonprofit organization under section 501(c)(3) of the Internal Revenue Code and is qualified to receive tax deductible contributions including bequests, devises, transfers or gifts. *Donations to the NIADA Foundation are voluntary and are tax deductible. Please consult your own tax advisor for the tax implication on the deduction for this donation.
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MANAGEMENT MATTERS
BY DALE POLLAK
4CouldMISUNDERSTANDINGS ABOUT PRICE Impede Your Sales Velocity and Profitability Old beliefs and habits definitely die hard. Take the way many dealers still think about their vehicle prices, for example. Dealers control vehicle prices. I’m not talking about the obvious point that dealers do, in fact, largely set the asking prices for their vehicles. My point relates to the ever-more powerful influence the market has on a dealer’s latitude to price vehicles the way they really want to. Some dealers have let this one go entirely. They’ll price their vehicles based on what the market data tells them – no more, no less. They recognize they can’t control or make the market for a vehicle. They understand the market dictates if the car’s a winner or loser, or lies somewhere in between, and they should price accordingly. A higher price is a better price. Some dealers still believe higher prices lead to higher front-end gross profits. This belief used to be true, before the Internet and pricing transparency gave the market more influence on vehicle prices. Back then, dealers could set their retail asking price as high as they wanted, and negotiate to keep every last bit of gross profit from a customer. Unfortunately, it doesn’t work that way as much or as well today. Vehicle buyers hunt hard for a fair price, and don’t respond well to dealers with vehicles priced 10 to 20 percent higher – or more – than the same or similar cars in their markets for no apparent reason. Price and age aren’t related. This thinking isn’t as prevalent as it used to be in used vehicles. Generally, dealers recognize the longer a used vehicle sits in inventory, the less money it makes, due to depreciation, competing units and opportunity costs. As a result, many dealers make the effort to adjust prices as vehicles age to facilitate a timely retail exit. But these same dealers often do not apply the time-is-money principle in new vehicles. The prices these dealers place on new vehicles on Day 1 often don’t change for months. Other dealers, however, have recognized that age- and market-related adjustments result in faster retail sales, which affords them the right to earn additional inventory from their factory partners. When you re-price, you lower your price. Dealers affirm the vast majority of re-pricing decisions result in a lower price. But the most market-astute dealers know this isn’t always true. That’s why they assess each vehicle’s online performance. They ask these and other questions: Is the vehicle’s online listing getting a sufficient number of Vehicle Details Page views? Is the online activity increasing or on the
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THEY ASK THESE AND OTHER QUESTIONS: IS THE VEHICLE’S ONLINE LISTING GETTING A SUFFICIENT NUMBER OF VEHICLE DETAILS PAGE VIEWS? IS THE ONLINE ACTIVITY INCREASING OR ON THE WANE? ARE THERE MORE OR FEWER COMPETING CARS IN THE CURRENT MARKET? wane? Are there more or fewer competing cars in the current market? How do the prices and Market Days Supply metrics on these cars compare with mine? Most of the time, the answers lead to price reductions. But there are times where dealers are well-justified to raise a vehicle price, or hold off on a price reduction, because their vehicle stands taller in the market than others. I’m sharing these misunderstandings because I’ve seen, time and time again, how they impede a dealer’s ability to fully maximize vehicle sales velocity and profitability. In today’s market, margins are too thin, and time is too precious, to allow these common misunderstandings about vehicle prices to get in the way of tomorrow’s retail sales. DALE POLLAK is the founder of vAuto and an executive with Cox Automotive. This column ran on his blog on June 19. For this story and all his posts, visit www.dalepollak.com.
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MARKET WATCH
BY JOE OVERBY, AUTO REMARKETING SENIOR EDITOR
ONLINE SCHEDULING MAY MAKE HAPPIER SERVICE CUSTOMERS Study from Cox Automotive
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Among dealership service customers who scheduled their appointment online, 76 percent said they were apt to go that route again, according to research from Cox Automotive. What’s more, Xtime vice president of marketing and managed services Jim Roche said setting up the service visit online creates a path toward a happier customer. The problem is many customers don’t know online appointment-setting is an option. According to that same research from Cox Automotive, Xtime’s parent company, 45 percent of customers who didn’t use online
scheduling were not aware it was offered. “That is a surprising and disappointing fact,” Roche said. “It’s on us in the industry that we have that lack of awareness.” Fortunately, he said, it’s a “low-hanging fruit” dealers can do something about. For instance, he urges dealers to send an email blast to customers at least twice a year to let them know online service appointment scheduling is available – and beneficial. “Setting the appointment online really lays the foundation downstream for a great experience,” Roche said. “Because you get the day and the time you want, the dealer can be prepared for you. The system can make sure the reservation is managed so that they can spend as much time with you as needed. It can even look up open recalls on your vehicle.” It can also help ensure the experience is a high quality one, which leads to the uptick in dollars spent. In fact, scheduled visits tend to pull in $54 more per visit than the walk-in visit. “They spend more because it’s a better experience,” Roche said. And it’s one that has been planned for, whereas the walk-in service appointments might not have been planned. If the consumer has scheduled the appointment, it likely means time and money has been budgeted too. Plus, the dealer has information on the specific issue with the car along with the day and time of the appointment. “You’ve laid the foundation for the dealer to handle your needs in a much smoother and prepared way,” Roche said. Beyond the periodic email blasts, Roche also advises dealers to explain the online appointment-setting process during the delivery of the vehicle. He urges dealers to walk their new customer into the service department and introduce him or her to the service advisors. It’s important to raise that awareness and repeatedly tell customers about online service scheduling as an option, Roche said. People are often creatures of habit, meaning they’ll continue scheduling their service appointments the way they always have. So if that’s to be changed, the benefits of online scheduling have to be communicated. So how do dealers communicate with the service customer via Xtime? “As it relates to service scheduling with Xtime, it’s multi-channel,” Roche said. “It’s impossible to know what someone’s preference is going to be in advance. The strategy has to be to meet them where they want to be. So, the only way to do that is to provide full coverage. “It’s mobile. It’s on the web. It’s available through the phone. So anybody who needs to interact with the dealership or the dealership systems to schedule online can do so any time, 24/7.”
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ASSOCIATION NEWS
BY MIKE GODIN & CHAD M. JULIUS
NIADA CPO COMES TO COLORADO! Celebrating New CPO Dealers in Colorado
NIADA and CIADA welcome and congratulate the first active NIADA CPO dealers in Colorado: • Modern Classic Motors in Grand Junction • Tru Auto Deals in Durango • Maxxum Motors in Lakewood • Country Truck and Auto in Fort Lupton • Wenger Automotive Group in Brighton These dealers, and others coming on board, see all the benefits the NIADA CPO program offers and how it can positively impact their dealerships. NIADA, in conjunction with CIADA, has brought to Colorado independent dealers the revamped and much improved NIADA CPO program. The NIADA Certified Pre-Owned Program is designed for you, the member dealer and provides you the avenue to reach new markets, turn inventory quicker and increase gross profits, all with increased customer satisfaction. We have all heard and read about how customers are searching for those “certified used vehicles.” Why? Study after study has shown consumers will look for a “Certified Pre-Owned” vehicle for peace of mind, knowing the vehicle has gone through an extensive pre-sale certification checklist and comes with a warranty. From a dealer perspective you might say, “So what? We inspect our vehicles before we put them on the lot as well and we offer the customer an extended service contract at time of sale, even a short term limited warranty. What’s the difference?” Well, to the consumer, it is a lot. So much so the consumer is willing to pay more for a “certified” vehicle. Studies show up to $2,200 more.
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Also, many finance companies will provide more advance to the dealer if they know the vehicle is sold through a nationally recognized CPO program. The certification and warranty not only provide the peace of mind to the consumer but also to the finance company. Remember, purchasing a vehicle is akin to purchasing a house for most consumers. Wouldn’t you rather purchase a house you know has been inspected, meets a nationally recognized standard and comes with a warranty over the same house that could have been inspected by “Joe the Plumber”? It is all about providing that consumer with the peace of mind and, for lack of a better term, a warm fuzzy feeling about your vehicle. Buyers are Internet-driven. With so much access to information the consumer can literally search online for a specific year, make, model, and color of vehicle they desire. Over 70 percent of the time, that consumer will specifically search for and/or choose that certified vehicle over one that is not. It may be the exact same vehicle, but it all comes down to perceived value. That is why the certified vehicle sales market is growing every year. This is where the NIADA CPO program comes in. This program provides the independent dealer with a nationally recognized platform to certify their vehicles and, more importantly, market those vehicles as certified. The NIADA CPO program is not just a certification program but a total marketing program for your dealership. The NIADA CPO program allows the independent dealer to compete in the fastest growing vehicle sales segment in the country, and not just on a local level, but on a national level with national recognition from numerous NIADA partners. These partners include eBay Motors, Carfax, Autotrader, SiriusXM, OnStar, Dealer Assist, OptionSoft technologies, F&I Express and AutoZone. There are more vendors joining this support network every day because they see the validity of this program and the potential for the independent dealer body.
The standard NIADA CPO program vehicle eligibility requirements are a maximum age of current model year plus 14 years and up to 150,000 miles. The program includes coverage for seals and gaskets as well as rental, towing, roadside, trip interruption and lost key/lock out. All this is with a standard $100 deductible. Terms of the limited warranty can be three, six or 12 months. The program also includes the option to extend this coverage or add additional components such as suspension, brakes, fuel delivery, cooling and enhanced electrical for terms of 24 months/24,000 miles up to 48 months/48,000 miles. The program also offers dealers the ability to upsell to a more comprehensive exclusionary coverage of various terms. Those are just the basics of the program. Let’s not forget about all the affiliate partners mentioned above. With the affiliate partners a dealer can greatly enhance their website presence by advertising their vehicles as NIADA CPO and “Certified Used,” which will put them in the same search as the franchise stores when a consumer is looking for a certified used vehicle. Dealer Assist is a great partner to assist the dealer with key words and phrases in their ads and website to make sure their vehicle comes to the top of the search. Any NIADA CPO vehicle comes with three months free SiriusXM and OnStar subscriptions. These are just a few of the ancillary benefits that come with a NIADA CPO vehicle. Again, this is not just another “certified” program. The NIADA CPO program, through its administrative partner Warrantech and local agents, works with the dealer to provide the level of training, support and guidance needed to make the program successful. These resources include training for general managers, sales managers, sales staff, finance manager, service and more. When this program is implemented it enhances and changes the culture at the dealership. The NIADA CPO program should be considered a sales and marketing
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program, not just another certified program. This program enables the dealer to access the fastest growing sales segment in the automobile industry and provides the independent dealer the tools and resources to compete directly with the franchise body. These are all reasons Colorado dealers have signed up for NIADA CPO. We welcome these dealers to the program and wish them much success. They have discovered the “secret sauce” that will separate them from their competition and create more opportunities to sell more vehicles at higher margins. Dealer Testimonials “Our average customer is driving 1,000 miles or more, so this is huge. With CPO vehicles, they get a warranty that includes towing, trip interruption, and plenty of other assurances with this program. It’s been
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working and is very helpful for us. It works for us. It’s a great way for independent dealers to compete in the CPO market with all of the other manufacturer’s programs.” “We at Tru Auto Deals just kicked the CPO off within our dealership and we are already seeing returns in new customers and new ways we can market. We look forward to great success with the NIADA CPO.” “We saw the potential in the NIADA CPO as we at Modern Classic Motors are a dealer who already does today what is needed to take part in this program and now we are marketing on a national level as part of this new state program. We look forward to success with this program in areas of sales as well as overall community awareness to our dealership and all that the CPO and partnerships can bring.“
“As soon as we placed the NIADA CPO marketing materials on our vehicles at Wenger Automotive Group the lot had people stopping in asking us what the NIADA CPO was all about. We are excited to have another way to draw in customers while doing what we already do today.” “Being right in the middle of so many franchise dealerships with certified vehicles, we found the NIADA CPO to be a perfect fit for us at Maxxum Motors. We now have an edge and advantage over those dealers as we now can provide customers savings over what our competition has to offer.” MIKE GODIN is from Godin Dealer Services and NIADA Certified CPO Agency, with offices in Colorado, New Mexico, and Texas. CHAD M. JULIUS is a NIADA Honored Colorado Representative. He may be reached at (719) 465-6181, (303) 598-2554 or chad@godindealerservices.com.
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ASSOCIATION NEWS
NATIONAL POLICY CONFERENCE EXPANDS NIADA’S REACH IN D.C. Record Number of Independent Dealers Make Their Voice Heard in Nation’s Capital
NIADA’s 2017 National Policy Conference and Day on Capitol Hill provided an illustration of – and a reason for – NIADA’s growing footprint in Washington D.C. NIADA’s annual Washington event brought independent motor vehicle dealers to the nation’s capital from across the country to meet with federal legislators and regulators and make the voice of the independent dealer and small business heard among America’s policymakers. This year’s conference, which took place Sept. 25-27, drew 202 attendees, the most ever for the event formerly known as the National Leadership Conference. “This is what makes a difference to our industry and our members,” NIADA president David Andrews said. “We need to tell these people who we are, what we do and what we do for the communities we operate in. We’re telling them what’s going on in our world – the real world. We’re trying to protect our businesses, our industry, our members and our future. “And you can see what a big difference it makes. Now they know about NIADA and what we do, and they care about us and about what we have to say.” As always, the conference concluded Wednesday with the climactic Day on the Hill, when 14 teams of NIADA dealers and industry partners took to Capitol Hill and met with more than 110 members of the Senate and House of Representatives or their legislative staff.
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That number clearly shows how NIADA’s political reach continues to expand – it’s 20 more than last year and it means dealers had direct interaction with more than a fifth of the combined membership of the House and Senate in a single day. “Our presence has really expanded in Washington D.C., and as a result, Congress is taking notice of the importance our industry’s positions have,” NIADA CEO Steve Jordan said. “This is exactly how we drew it up five years ago when we decided to restart this event and bring our member dealers to Washington.” Among the teams were 10 representing NIADA’s affiliated state associations. Teams from Georgia, North Carolina, South Carolina, Alabama, Texas, Ohio, the Mid-Atlantic region (MARIADA), Colorado, Illinois and Virginia visited all or most of their representatives and senators. NIADA’s teams spoke to legislators about a number of issues currently pending in Congress, advocating in support of tax reform as well as major reforms to the Consumer Financial Protection Bureau to make it more responsive, transparent and accountable. They also spoke in favor of repealing the CFPB’s arbitration rule – a measure that has already passed the House and is awaiting a vote in the Senate – and against a blanket ban on sales of recalled vehicles by independent dealers. “It’s absolutely crucial for us to be here,” said Stephanie Isakson of Parker Auto Sales in Knoxville, Tenn. “There were a lot of issues we talked about that had the legislators and staffers genuinely surprised by what we told them, about the things that happen day to day that they don’t live.” During the Day on the Hill’s Power Luncheon in the Senate Rules and Administration Committee meeting room, Sen. Richard Shelby (R-Ala.) told attendees he’d been asked why businesspeople need to come to Washington. “I’ll tell you why you need to come,” he said. “You need to come up here and see what’s going on. Somebody’s going to influence the tax policy. You’d hope to be part of that. Somebody’s going to influence the regulatory policy that affects everything you do.
“That’s why you’re here and why you should be here. … When we vote on things, it affects you, one way or the other – good or bad. When people push regulations and you say, ‘Gosh, who did this? How could they do that? Why would they do that? It makes no sense.’ All of it affects you.” The 2017 National Policy Conference also included the presentation of the inaugural NIADA Legislator of the Year award to Rep. Roger Williams (R-Texas) at a Tuesday night reception. That same evening, the PAC Cup was awarded to the Southeast Region for contributing the most to the NIADA-PAC fund from among the association’s four regions. In all, the competition raised more than $100,000 for the PAC fund. In addition to legislators, representatives of several federal regulatory agencies – and, for the first time, the White House – spoke to attendees Tuesday at the Dupont Circle Hotel, providing updates and answering specific compliance questions from dealers. The speakers included Damion English of the CFPB, Tom Pahl of the Federal Trade Commission, and a contingent from the Small Business Administration, as well as D.J. Gribbin of the National Economic Council and deputy chief of staff Rick Dearborn, representing the White House. NAAA Auction Standards Committee co-chairmen Matt Arias of Manheim and Kurt Madvig of ADESA also spoke Tuesday, addressing NAAA’s auction arbitration policy and other auction issues. And, as always, the event brought together NIADA’s top national leaders as well as those of NIADA’s affiliated state associations to conduct association business, develop their leadership skills and get the latest updates on NIADA legislative, education and business initiatives. “The value of being here is just immeasurable, really,” said Jack Carter of Turn and Burn Motors in Conyers, Ga. “You can’t expect members of Congress to know our business. They’re not car dealers. So we have to continue to try to educate them and develop those relationships. We just have to keep at it.”
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Dealership Operations Out Of The Floppy Era?
In November watch. listen. learn. The NIADA.TV Operations Channel is our largest channel on the Network with over 70 free educational videos covering all aspects of your dealership operations, and perfect for your entire dealership staff to watch and learn. To get started, visit www.niada.tv and click on the Operations Channel from the left channel menu.
Visit the NIADA.TV OPERATIONS CHANNEL and learn how to get your dealership operations out of the floppy era and into tip-top shape for the upcoming new year. · showroom tips · digital marketing · millennial marketing · merchant services · social media · dealer management systems · alternative profit centers · underwriting · reputation management · new dealership tips · pricing and finance charges · budgeting and expense control · and sooo much more. · employee and wage issues Special Thanks to our NIADA.TV Operations Channel Sponsor, DDK Marketing.
ONLINE MARKETING
BY KATHI KRUSE
TIPS TO IMPROVE YOUR “ABOUT US” PAGE Start on the Right Foot
Customers who view your “About Us” page will spend 22.5 percent more than those who don’t. And, according to Blue Acorn, those who view it are five times more likely to make a purchase. I’ve often wondered why dealers don’t put more effort into these great opportunities to bring customers closer to the store. The average “About Us” page is a boring, self-serving mix of me, me, me, and us, us, us. But this page is so vital to your business! In fact, it’s usually the first place people look before they start to take you seriously. Get it wrong and you could be turning people off without even knowing it. A Good “About Us” Page is Crucial to Digital Operations A good “About Us” page is hard to come by because they’re difficult to get right. An “About Us” page that actually converts should: • Focus on your target customers and the value they get. • Provide testimonials, social proof, and other facts that prove your value. • Be a visually appealing page with photos and videos. • Convey your personality and why people buy from you. Ah, but how to achieve these objectives can be tricky. It’s all about trust. The “About Us” page builds a relationship with customers and gains their trust. While trust is largely intangible and unable to directly account for its ability to win customers, it is the undeniable invisible force behind sales performance and retaining customers. TIPS TO IMPROVE YOUR DEALERSHIP “ABOUT US” PAGE 1. Start with simplicity and clarity. Begin with a short introduction about your store. Sum up what you do in two to three sentences, but keep the language very simple – no jargon. Tell the story of your inception. Use meaningful language to engage customers. Talk about the dealership’s core values, principles, and goals. Talk about the obstacles you’ve overcome, the things you’ve learned along the way, and anything that makes you sound like more than a machine pumping out products. 2. Stop using mug shots. I have seen my fair share of employees’ pictures on dealership websites. Who takes these photos, an off-duty cop?
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A better alternative is to take candid shots of your team doing their job. Have them look at the camera, smile and illustrate their enthusiasm. 3. Tell a story about each team member. Interview each team member to get their heartfelt responses. Here’s what we use at Kruse Control: Hi there! We’ve put together a survey that will help us connect better with our customers and our community online. With your help, we can tell the story of our dealership. We pride ourselves on transparency and introducing you digitally will not only show how much we value your daily contributions but help you connect with our customers and community as well. Please help us by answering just a few short questions about yourself. We really appreciate your participation and we promise to make you look good! Name:___________________________________________________________________________________________ 1. What is your title and job description here at (dealership name)? __________________________________________________________________________________________________ __________________________________________________________________________________________________
2. How long have you worked at (dealership name)? __________________________________________________________________________________________________
3. What do you love the most about working for (dealership name)? __________________________________________________________________________________________________ __________________________________________________________________________________________________
4. What do you like to do when you’re not at work? __________________________________________________________________________________________________ __________________________________________________________________________________________________
5. What brought you to the automotive industry? __________________________________________________________________________________________________ __________________________________________________________________________________________________
6. What kind of car do you drive? What do you love about it? __________________________________________________________________________________________________ __________________________________________________________________________________________________
7. Do you volunteer or support any local causes in our community? If yes, please tell us about it. __________________________________________________________________________________________________ __________________________________________________________________________________________________
Thank you for answering these questions and for making our customers’ experience memorable. 4. Show examples, with links, of ways you’re participating in the community. I can’t tell you how many dealerships I’ve managed, and/or know, that spend thousands of dollars supporting local community causes. What I don’t see very often is evidence of that on their websites! It’s not self-serving to emphasize your good works. If a team member has answered “yes” to #7 of the questionnaire, make sure to illustrate how they’re giving back. 5. Include testimonials and social proof. A good “About Us” page always needs to have some mention of past successes, achievements, social proof, etc. Include a testimonial from one of your satisfied customers. Pick one that combines a compelling story with real examples of how your company met his or her satisfactions. Video is very powerful. Film customers or your employees and pick people who are engaging and feel comfortable in front of the camera. Putting it All Together How does your “About Us” page measure up? If the answer is “not so much,” let me know and I’ll help you improve it. 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. She can be reached at kathi@krusecontrolinc.com.
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