STREET SMART O F F I C I A L P U B L I C AT I O N O F I I A DA
S TAT E A F F I L I AT E
O C T O B E R / N O V E M B E R 2 016
WHAT LENDERS WANT TO KNOW ABOUT YOUR DEALERSHIP Vendor Management PA G E 12
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
W W W.IO WA I A DA .C O M
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INSIDE
04.............................................................................Carlawyer 08................................................................Successful Failing 09................................................................ President’s Letter 10..................... Tradition and Trends Need to Work Together 12........What Lenders Want to Know About Your Dealership 14...................................................................Dealer Education 18..............................................................Cashing in on Leads
WHAT’S NEW
RETAIL INSTALLMENT CONTRACTS
IIADA has two distributors who will provide the Wolters Kluwer Financial Services retail installment contracts for Iowa dealers. These retail installment contracts have a compliance warranty. In some cases, you will need to have your software provider reprogram for you. You may order by phone or online and these will be shipped directly to the dealership. Thank you for working with these distributors. PLEASE CONTACT: WILSON DISTRIBUTOR SERVICE • 1-800-634-0974 • www.wds-usa.com or Erikson Solutions Services, llc • 402-639-0664
The NIADA National BHPH Summit will be held
Dec. 6-8 in Dallas, Texas. This year’s theme is “Reaching New Levels of Excellence.” The conference features industry leading speakers covering best practices in various BHPH related topics as well as industry updates and strategies for the upcoming year.
For more information contact Diann Flanders at diann@niada.com or (888) 906-8283.
ADVERTISER’S INDEX
ADESA...................................................................................IFC AutoZone................................................................................. 7 Black Book ...............................................................................3 Manheim ..........................................................................10, 11 Manheim Minneapolis......................................................... IBC Manheim Pennsylvania..........................................................13 NextGear Capital................................................................... 12 Spireon..................................................................................... 5 vAuto........................................................................ Back Cover
OFFICE
For information on how to become a member please contact Judy Wilson. iiada@netins.net • 641-755-4177
NIADA HEADQUARTERS
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 Street Smart is published 6 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Street Smart or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an edorsement of the products or services featured. Copyright© 2016 by NIADA Services, Inc. All rights reserved.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com
KNOW WHERE TO LOOK FOR RECALL INFORMATION ON VEHICLES
Vehicle dealers needing information on factory recalls can visit www.recalls.gov or find manufacturer toll-free numbers by going to www.autopedia.com/html/HotLinks.html and making contact with the respective automaker. Know what recalls are pending on vehicles before you purchase them and give your customers peace of mind by checking out possible recalls before you retail the vehicle. For further info please visit www.safercar.gov or www.safercar.gov/vinlookup FIND ADDITIONAL RECALL INFORMATION AT THE FOLLOWING WEBSITES: www.recalls.gov and www.autosafety.org
INVESTIGATIONS INFORMATION LINE
NEW NUMBER! 515-237-3050
The hours of operation are Monday through Friday, 8:30 A.M. TO 3:30 P.M. This phone line receives numerous calls so the IDOT encourages the use of our email (invbureau@dot.iowa.gov) if the phone line is busy. The bureau investigations information line provides a way for the public to request information, ask questions or file a complaint related to investigative duties and responsibilities. This line is the primary point of contact to reach an investigator who is responsible for investigations in a specific area of the state of Iowa. To ensure accurate information is provided, the bureau investigations information line is answered by a bureau of investigation and identity protection investigator.
BOARD MEMBERS PRESIDENT
Jeff Schneider
MAGAZINE LAYOUT
Pocahontas Sales & Service PO Box 66 Pocahontas, Ia 50574 712-335-4470
PRINTING
CHAIRMAN OF THE BOARD
EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com Christy Haynes • christy@niada.com Christopher Hanley Nieman Printing
Douglas Livy, Jr.
Quality Motors of Ames PO Box 7 Ames, Ia 50010 515-290-2673
VICE PRESIDENT
Clay Winterboer
Carroll Car Credit Co. 409 E. 6th St., Box 805 Carroll, Ia 51401 712-792-0140
TREASURER
Judy Wilson, IIADA
409 E. Market Street P.O. Box 337 Panora, Ia 50216 641-755-4177
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REGIONAL REPRESENTATIVES
Roger Poulsen
The Car Guys 1301 S.W. 7th Street Atlantic, Ia 50022 712-243-6915
Tab Miller
Preowned Solutions 11010 Douglas Ave. Urbandale, Ia 50322 515-528-8180
Kim Nelson
Nelson Automotive, LLC 300 Sandpiper Court P.O. Box 466 Polk City, Ia 50226 515-984-9600
Craig Dam
Dam Auto Sales, Inc. 1021 Lewis Blvd. Sioux City, Ia 51105 712-522-2831
Rick Theilen
Marcus Hebert
Jay Muller
ADMINISTRATIVE OFFICES
Theilen Auto Sales 10536 265th Street Clear Lake, Ia 50428 641-424-3352 Best Auto, Inc. 900 S. Grand Avenue Spencer, Ia 51301 712-262-4581
David A. Farmer
David A. Farmer, Inc. 1613 Franklin Center Point, Ia 52213 319-849-2432
CarsNow, LLC 2124 W. Broadway Council Bluffs, Ia 51501 712-256-6757
409 East Market Street P.O. Box 337 Panora, Ia 50216 Ph: 641-755-4177 Fax: 641-755-3247 Email: iiada@netins.net Toll Free: 866-962-9202
Doug Wilson
Lake Country Auto 409 East Market St. P.O. Box 341 Panora, Ia 50216 641-755-3048
Diane Conroy
Jeb’s Affordable Trans. 1501 N. Elm Jefferson, Ia 50129 515-386-4731
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ASSOCIATION NEWS /
HAPPY THANKSGIVING >> Special Time of Year
Celebrating Thanksgiving with our families and friends is a very special time of the year. As we gather to give thanks for the blessings that have come our way throughout the year, and think about the future, may we find joy and peace to share with others. IIADA wishes everyone a wonderful Thanksgiving!
ONLINE MARKETING / BYJOHN STERNAL, SWAPALEASE.COM EDITORIAL NOTE /
COMPETING WITH FRANCHISE DEALERS AND COMING OUT ON TOP >> Correction
THE ARTICLE Competing with Franchise Dealers and Coming Out on Top in the August/ September issue inadvertently listed the wrong author. It was actually written by Kathy Tafolla of Lobel Financial. Our apologies.
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ARE YOU ON YOUTUBE?
>> You Could be Missing a Key Opportunity MANY CAR DEALERS use Facebook as a way to target, reach and promote deals to car shoppers. But are they missing out on a key opportunity by focusing mostly on Facebook? According to a recent poll by national car lease website Swapalease.com, most car shoppers actually turn to YouTube when researching their next vehicle. The online car lease marketplace polled roughly 2,500 car shoppers across the country in June and found the following social media preferences among car shoppers:
• YouTube: 43 percent. • Facebook: 33 percent. • LinkedIn: 10 percent. • Twitter: 9 percent. • Instagram: 7 percent. • Pinterest: 5 percent. “Millions of car shoppers now utilize the Internet as a way to research their next vehicle, as well as look for the deal that’s right for them, and this includes social media websites,” said Swapalease. com executive vice president Scot Hall. “Our research tells us that YouTube is an effective social channel since it gives shoppers a virtual tour of the vehicle they’re looking at, as well as an opportunity to see how it handles on the road. Online videos can be powerful in car shopping, particularly as people gravitate toward the Internet and away from actual test drives at the dealership.”
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LEGAL UPDATE / BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO
THE CARLAWYER
>> Keeping You Informed with the Latest
Governmental Issues and Activity in the Used Car Industry
WE’RE BACK, passing on what we’ve recently learned about legal developments in the auto sales, finance and lease world. This month, we feature developments from the Consumer Financial Protection Bureau, the Federal Trade Commission, and a group of state attorneys general, as well as our case of the month. Remember – we aren’t reporting every recent legal development, only those we think might be particularly important or interesting to the industry. Why do we include items from other states? We want to show you new legal developments and trends. Also, another state’s laws might be a lot like your state’s laws. If attorneys general or plaintiffs’ lawyers are pursuing particular types of claims in other states, those claims might soon appear in your state. Note this column does not offer legal advice. Always check with your own lawyer to learn how what we report might apply to you, or if you have questions. This Month’s CARLAWYER Compliance Tip How well does your dealership score on protecting the privacy of its customers? Take a stroll around your operation and do a little detecting. Can the conversation between a buyer and a salesman be overheard by others? Are sales and financing documents left out on desks, in view of anyone walking by? When your personnel leave their desks, do they secure protected customer information? What does your dealership’s privacy policy say about how you are handling your customers’ protected information? Is that description accurate? If that description doesn’t match what you are seeing, it’s time to do a little compliance heavy lifting. Oh, and don’t forget to require any third party vendor that has your customer’s protected information to safeguard it. FEDERAL DEVELOPMENTS The inside scoop on CFPB actions: On June 30, the CFPB issued its Summer 2016, 12th edition, of Supervisory Highlights, covering its supervisory activities completed generally between January 2016 and April 2016. In the report, the CFPB shared recent supervisory observations in the areas of vehicle financing, debt collection, mortgage origination, smalldollar lending, and fair lending. In addition to public enforcement actions, the report revealed issues uncovered by the CFPB during its supervisory examinations that are resolved without public enforcement actions. The non-public supervisory actions covered in the report included alleged illegal activity in the area of vehicle financing, resulting in restitution of approximately
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$24.5 million to consumers. Highlighted violations related to auto finance include deceptive advertising of GAP products and CMS deficiencies, which allowed for violation of consumer financial services laws. When examinations determine whether a supervised entity has violated a statute or regulation, the CFPB directs the entity to implement appropriate corrective measures, including remediation of consumer harm when appropriate. The report does not refer to specific institutions unless they were subject to public enforcement actions. See http:// www.consumerfinance.gov/data-research/ research-reports/supervisory-highlightsissue-no-12-summer-2016/. Shopping for a car? On July 8, the FTC released four 60-second videos intended to help consumers shop for cars. The four videos offer information on identifying deceptive car advertisements, buying a used car, financing a car, and understanding add-on products sold in connection with a car purchase. Everyone in your dealership should watch these videos to see what the regulators are telling car buyers. AGs scold agencies: On July 11, the attorneys general from 15 states sent a letter to members of Congress urging them to place limits on federal agencies that create and enforce regulations by strengthening the Administrative Procedure Act. In the letter, likely aimed primarily at the CFPB, the AGs said state federal agencies are, with increasing frequency, (1) issuing guidance documents, interpretive rules, and policy statements that effectively bind regulated parties, but are not required to go through the APA’s notice and comment process; (2) adopting regulations without statutory authority; (3) failing to consider regulatory costs; and (4) failing to fully consider the effect of their regulations on states and state law. The letter notes the APA requires an agency to publish a notice of proposed rulemaking in the Federal Register and provide for a comment period for the public to inform the agency when a rulemaking is contrary to statutory authority, based on unsound reasoning, or lacks factual support. The attorneys general express concern federal agencies often avoid such compliance with the APA. The letter explains that congressional action is needed to ensure agencies engage in transparent rulemaking. Servicemembers and repossession: On July 26, the Justice Department sued a Michigan-based credit union alleging it violated the Servicemembers Civil Relief Act by repossessing vehicles owned by protected servicemembers without obtaining the necessary court orders. The complaint also alleged the credit union’s vehicle repossession procedures did not include a process to determine debtors’ military status before conducting repossessions. The SCRA requires a court to review and approve any repossession if the servicemember obtained financing for a vehicle and made a payment before entering military service. Debt collection in the spotlight: The CFPB held a field hearing about debt collection on July 28 in Sacramento, California. The hearing
featured remarks from CFPB Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. The CFPB simultaneously published a proposed rule to regulate third-party debt collectors, and indicated another proposed rule to regulate creditors collecting their own debt would be forthcoming. CASE OF THE MONTH Claims based on dealership’s failure to disclose prior damage to car not conclusively defeated by “as-is” clause: A buyer bought a used car from a dealership. The buyer’s guide sticker on the car’s window stated the car was being sold “as-is.” During the negotiations, frame/unibody damage to the car was not disclosed to the buyer. The salesperson told the buyer the car was a “good car” and that she could trade it in for something bigger after about a year. Less than a year later, the buyer started looking for a larger car, but a different dealership would not accept her car as a trade-in because of the frame/unibody damage. The buyer sued the dealership where she bought the car for violating the Texas Deceptive Trade Practices Act by failing to disclose known information about the car to her and by committing an unconscionable action or course of action. The trial court granted the dealership’s motion for a directed verdict, finding the as-is clause negated causation as a matter of law. The buyer appealed. The appellate court referenced a Texas Supreme Court case holding that an as-is clause can conclusively negate the element of causation and defeat claims for DTPA violations, fraud and negligence. However, the appellate court provided two exceptions to enforceability of an as-is clause: (1) fraudulent representation or concealment of information by the seller, and (2) where an as-is clause appears in a standard form contract that cannot be negotiated, particularly if the parties are not equally sophisticated. The appellate court concluded both exceptions could apply. With regard to the second exception, the appellate court first found the parties did not have equal bargaining positions. Second, the as-is clause was not clear because the average consumer could reasonably construe it to relate only to repairs. However, the buyer’s claims were not based on the dealership’s failure to repair her vehicle. Third, the appellate court found that because the as-is clause was a pre-printed, boilerplate provision required by law and appears on every used vehicle sold, the boilerplate nature of the as-is clause also weighed against its enforceability.
www.iowaiada.com 9/15/16 12:17 PM
MARKET WATCH / BY AUTO REMARKETING STAFF
Tom (thudson@hudco.com) and Nikki (nmunro@ hudco.com) are partners in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery, a monthly legal newsletter for auto dealers. He is editor in chief of CARLAW, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www. counselorlibrary.com. Copyright CounselorLibrary.com 2016, all rights reserved. Single publication rights only, to the Association. (8/16). HC# 4810-5998-5973.
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KBB’S BEST BETS FOR USED VEHICLES UNDER $8K
>>
With respect to the first exception, the appellate court concluded the evidence raised a fact issue regarding whether the dealership’s fraudulent representation or concealment induced the buyer to buy the car. The appellate court found the buyer provided sufficient evidence of fraudulent representation by alleging the salesperson told her the car was a “good car” and that she would be able to bring it back after a year and trade it in for a different car. Because the buyer provided evidence she could not trade it in after a year, she raised a fact issue as to whether the salesperson’s representations about the car were false. An issue of fact also existed as to whether the representations were material and whether the salesperson intended for the buyer to rely on the representations. Accordingly, the appellate court reversed the trial court’s judgment on the DTPA claims and remanded the case. See Bishop v. Creditplex Auto Sales, L.L.C., 2016 Tex. App. LEXIS 6719 (Tex. App. June 23, 2016). So there’s this month’s roundup! Stay legal, and we’ll see you next month.
TODAY’S NEW CARS may be chock-full of the latest technology and features, but that comes at a price. In fact, the average price of a new car is $33,801. Because many people cannot afford a large monthly payment (let alone buy a new car outright), there exists a healthy market for affordable used cars. Still, prices for used vehicles run the gamut. With affordability in mind, the editors at Kelley Blue Book’s KBB.com have named this year’s 10 Best Used Cars Under $8,000. “While spending $8,000 or less won’t get you the newest tech or the shiniest paint job, it can buy you solid, reliable transportation that will last for the next several years if you play your cards correctly,” said KBB.com executive editorial director and executive market analyst Jack Nerad. “For those who feel a keen ache in their checkbook thinking about the prospect of a big monthly payment, this year’s list of KBB. com’s 10 Best Used Cars Under $8,000 should provide some relief, because there are good used car alternatives to a more expensive vehicle.” 1. 2006 Toyota Avalon 2. 2007 Honda Accord
3. 2010 Honda Civic 4. 2008 Toyota Corolla 5. 2008 Ford Crown Victoria 6. 2006 Subaru Outback 7. 2007 Nissan Maxima 8. 2007 Subaru Impreza 9. 2006 Mazda MX-5 Miata 10. 2010 Kia Soul KBB.com editors noted the Avalon is “big, quiet and comfortable,” as well as highly reliable. “Our master mechanic suggests that obtaining 200,000 miles of largely trouble-free driving is a distinct possibility,” they said. The other Toyota on the list, the 2008 Corolla, was noted by KBB mechanics as “a great choice for a used car if all maintenances have been performed. “Like most Toyotas, the Corolla seems to be ‘overbuilt’ compared to other cars in its segment, and that translates to solid reliability with few problems,” they continued. Coming in at No. 10, the Kia Soul’s aesthetics were likened to a common kitchen appliance. “Some would tell you it looks like a toaster, but if it does it is a very useful toaster,” KBB said. “Larger than you might guess it is, the Soul will swallow up a lot of cargo and haul five passengers in surprising comfort. If you can’t swing the cost of a small SUV (and don’t need all-wheel drive), the Soul will fill the bill.” To see KBB.com’s full coverage of the 10 Best Used Cars Under $8,000 for 2016, including vehicle photography, pricing details and editorial reviews, visit www.kbb.com/carreviews-and-news/top-10/best-used-carsunder-8000/2100000852/.
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MANAGEMENT MATTERS / BY STEVE HALL
FAILURE-ACHIEVEMENT CYCLE
>>
SUCCESSFUL FAILING >> Why Embracing Failure Leads
to Greater Achievement
OUR CULTURE IS BUILT ON SUCCESS. Ironically, we can only achieve the highest levels of success by failing along the way. Failure is the basis of knowledge. Imagine you’re back in elementary school. Your teacher has just placed two apples on each end of her desk and asked, “If I added these two apples to the other two apples … ” – she physically moves them together – “… how many apples would you have?” She waits, then says, “Okay, class, now count them. One. Two. Three. Four.” This is how most of us learned in school: repetition and visual learning. Kids will chant along, correcting their answer when they realize it’s wrong. Failure in these very early stages is important – it teaches persistence and focuses on the importance of learning over knowing. And, in time, we all eventually did learn that two plus two equals four! SUCCESS-ONLY CYCLE
The Success-Only Cycle vs. the FailureAchievement Cycle Sadly, over time, we abandon the elementary school approach and focus more on knowing than learning. Failure changes from a useful tool to punishment. By the time we enter the workplace, most of us have fully accepted that failure represents the result of an action, and we view it as nearly insurmountable. Honestly, how useful is that philosophy? This Success-Only philosophy allows for only one option: You succeed, or you fail. This approach rewards knowing and only works if you already know how to do something. If you don’t know how to do the task already, well, you’re in trouble. The Failure-Achievement Cycle, however, focuses on failing fast – and then learning from your mistakes. No one is expected to perform flawlessly. Instead, failure is viewed as a feedback mechanism that allows you to improve your plan and try again to yield better results. Failure isn’t considered the opposite of success. Instead, this approach views failure as a critical component of it. Successful Failing Failing when trying something new or working towards solving a problem is admirable. This type of failure should be rewarded, provided two key components were included in the effort: • First, did you plan the activity, initiative or process to the best of your ability for the information you had been provided at the time? Failure due to “just winging it” is not productive failure. Plan for success, work
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INDUSTRY NEWS / BY SUBPRIME AUTO FINANCE NEWS STAFF
Failure is viewed
as a feedback mechanism that allows you to improve your plan and try again to yield better results. your plan and adjust as needed. • Secondly, did you learn from your failure? Successful failure requires you to analyze what happened and create a game plan for other possible solutions moving forward. Failure Can’t Be a Show Stopper Mistakes aren’t the end of the line. They merely delay achievement. When you fail successfully, you must make sure the delay is as short as possible. As a progressive manager, who is always trying to grow your department, you should actively demonstrate to your employees that failure is welcomed. Give this a try. Hold a “learning from our failures meeting.” During the session, share some of the errors you’ve made in your career and how it helped you solve a problem. Encourage your staff to do the same, requiring them to explain what they learned from the experience and how it helped them become better in their positions going forward. Not only will your less experienced employees gain valuable knowledge from the more experienced ones, but it will reinforce to your staff that successful failure is an important part of your process. Done in the right way, it creates a great learning experience. Keep everyone focused on how the person improved from the experience and how to avoid the same mistake themselves. (It can also be a fun team experience, especially when you discover how entertaining others’ past mistakes can be! Be sure to share some funny examples of your own!) Failure is painful and, of course, we’d all rather avoid it. But when we apply successful failing, we learn how to bounce back quickly from failure and achieve even more in the long run. Steve Hall is a full-time instructor for the NCM Institute and is responsible for the development of its Fixed Operations training curriculum. For more than 25 years, Steve’s experiences have encompassed almost every aspect of the retail automotive service, parts and body shop business. This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute.com) and is reprinted with permission.
EFG AMONG BENCHMARKPORTAL’S TOP 100 CALL CENTERS >> Only F&I Product Provider Named
EFG COMPANIES was recently the only F&I product provider to be named to the BenchmarkPortal Top 100 call centers for 2016. EFG also ranked in the Top 25 quartile for call centers with five to 50 staff members. The BenchmarkPortal Top 100 competition compares the performance of contact centers throughout North America by evaluating their key metrics against industry peers. Based entirely on statistical comparison to the world’s largest and most respected database of call center metrics, the BenchmarkPortal Top 100 competition is designed to objectively identify centers who are achieving superior results both in financial and qualitative terms. EFG’s average claims call speed to answer is less than 30 seconds, while 67 percent of its total claims are one-call claims. The company also said 96 percent of all claims are paid within one hour of receipt of invoice. “Our clients rely on our expertise and quality customer service when it comes to administering customer claims,” EFG president and chief executive officer John Pappanastos said. “We operate knowing that our claims administration reflects back on our clients’ business and brand. “By demonstrating our high level of expertise with this certification, we are giving our clients the highest confidence that all claims will be handled expertly, efficiently and respectfully, promoting a positive overall customer experience and driving greater customer loyalty for their business,” Pappanastos said. “The EFG Companies contact center is among the best in its industry,” BenchmarkPortal CEO Bruce Belfore said. “This award was granted on the basis of objective, metrics-driven performance. EFG Companies stood tall against its competitors according to the world’s largest database of call center metrics. This is not easy to do, and we congratulate them on their accomplishment.” www.iowaiada.com 9/15/16 12:17 PM
MIDWEST AUTO AUCTION DIRECTORY 4716 S. Santa Fe Street Wichita, Kansas 67216 316-351-5001 Dealer Consignment Sale Thursdays at 9:00 a.m. Free Breakfast, Free Car Wash
ADESA DES MOINES
1800 Gateway Drive Grimes, IA 50111 (515) 986-1200 Fax: (515) 986-1201 www.adesa.com General Manager: Jeff Lisle Fleet/Lease Manager: Lesa DeRoy Consignment Sale every Tuesday at 9:30 a.m. Fleet/Lease Sale Tuesday 10:30 a.m.
ADESA KANSAS CITY
15511 Adesa Drive Belton, Missouri 64012 (816) 525-1100 (800) 950-2350 Fax: (816) 525-4714 General Manager: Harold Chapman Tuesday 9:30 a.m.
ADESA MINNEAPOLIS 18270 Territorial Road Dayton, MN 55369 763-428-8777 763-428-8701 Sale: Tuesday, 10 a.m. www.adesa.com
ADESA SIOUX FALLS
46893 271st Street P.O. Box 218 Tea, SD 57064 (605) 368-5364 Fax: (605) 368-2808 General Manager: Bob Holm Wednesday Sale 10:00 a.m. IAAI SALVAGE SALE EVERY OTHER WEDNESDAY – 8:30 A.M.
ADESA ST. LOUIS
7858 Highway 61-67 Barnhart, Missouri 63012 636-475-9311
ADESA WISCONSIN
W 10415 State Road 33 Portage, WI 53901 608-742-8245 608-742-4415 (f) Tony Manwarren, general manager Sale: Thursday, 9:30 a.m. www.adesa.com
CARMAX AUCTION – DES MOINES
10315 Hickman Road Urbandale, Iowa To Register: 888-804-6604 In House Auction – Every other Monday 9:30 A.M.
DEALERS CHOICE AUTO AUCTION, INC.
503 South Wapello Road Mediapolis, Iowa 52637 319-394-3510 (888) 771-6810 319-394-3511 (fax) www.dcaa.com President: Monte Delzell Nationwide Transportation: EZ Auto Shippers Steve Miller: 866-310-5936 Sale Every Tuesday – 6:00 p.m.
DES MOINES AUTO AUCTION 1530 S.E. McKinley Road Des Moines, Iowa 50320 (515) 285-8911 Fax: (515)256-9161 FRIDAY AT 9:30 A.M. Todd Givant, General Manager
GREATER QUAD CITY AUTO AUCTION
4015 78th Avenue Milan, Il 61264 (309) 787-6300 Fax: (309) 787-4541 Tuesday 10 a.m. – Thursday – 6 p.m. General Manager: Larry Anderson
GREATER ROCKFORD AUTO AUCTION 5937 Sandy Hollow Road Rockford, Il 61109 (815) 874-7800 (800) 830-4722 Fax: (815) 874-1325 General Manager: Mark Capriola Wednesday 10 a.m.
KCI AUTO AUCTION
11101 N. Congress Kansas City, MO 816-502-3318 816-801-8565 (f) Doug Doll Consignment Sale: Thursday, 9:30 a.m. www.kciaa.com
LINCOLN AUTO AUCTION, LTD 11909 US HWY 6 Waverly, Nebraska 68462 402-475-5500 www.lincolnautoauction.com Ryan Durst, Vice President Weds. 10:00 a.m.
MANHEIM ARENA ILLINOIS 200 West Old Chicago Drive Bolingbrook, Il 60440 (630) 759-3800 (630) 759-9668 General Manager: John Olejniczak Dealer Sales Manager: Louis Palermo Tuesday 9 a.m.
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MANHEIM CHICAGO
20401 COX AVENUE MATTESON, ILLINOIS 60443 815-806-4222 Mike Cesta, General Manager
MANHEIM KANSAS CITY
3901 North Skiles Road Kansas City, MO 64161 (800) 247-7163 Fax: (816) 452-2393 General Manager: Peggy Sprenger Wednesday 9:30 a.m.
MANHEIM MILWAUKEE
561 South Highway 41 - 27th Street Caledonia, WI 53108 (262) 835-4436 (800) 662-2947 Fax: (262) 835-2684 General Manager: Dennis Worthy Dealer Sales Manager: Kimberly Schure Wednesay 9 a.m.
MANHEIM MINNEAPOLIS
8001 Jefferson Highway Maple Grove, MN 55369-4924 (763) 425-7653 (800) 622-7653 Fax: (763) 493-0310 www.manheim.com General Manager: Carter Theissen Assistant General Manager: Felix Hernandez Commercial Accounts Manager: Jennifer Etnier Open Sale Sale every Wednesday; 9am Ford Credit, 9:30 TD Auto Finance, Select Lane and Fleet/Lease/Rental Groups, 9:45am Dealer Consignment. Ford Factory Sale bi-weekly Wednesdays at 12 Noon; Fiat Chrysler Factory Sale bi-weekly Wednesdays at 12 Noon Total Resource Auction/Insurance Sale weekly, Tuesdays at 1:00pm.
MANHEIM NORTHSTAR MINNESOTA
4908 Valley Industrial Blvd. North Shakopee, MN 55379 (952) 445-5544 (888) 445-2277 Fax: (952) 445-6773 General Manager: Carter Theissen Assistant General Manager: Jon Eisenmann Commercial Accounts Manager: Rod Dubbe Open Sale Thursdays at 9am Total Resource Auction/Insurance Sale Thursdays at 1pm Specialty Sale (Heavy Truck/Equipment/ Powersports) every 2nd and 4th Thursday at 12:30pm $4k and Under Sale: Last Wednesday of the Month at 3pm
MANHEIM OMAHA
9201 S. 144th Street Exit 440 off of I-80 Omaha, NE 68138 (402) 896-8000 (800) 218-4192 Fax: (402) 896-6758 General Manager: Todd Pfeifer Assist. Gen Manager: Korey Grell Thursday 9:30am.
MANHEIM ST. LOUIS
13813 St Charles Rock Road Bridgeton, MO 63044 (314) 739-1300 (800) 533-5414 Fax: (314) 298-3347 General Manager: Victor Ferlaino
MID-STATE AUTO AUCTION 100 Bach Ave. New York Mills, MN 218-385-3777 218-385-3232 (f) Rob Thompson, president Sale: Friday, 10 a.m. www.msaanym.com
NEBRASKA AUTO AUCTION, INC. 7500 N. 56th Lincoln, Nebraska 68514 402-466-8477 Contact: Mark Cooley Tuesday at 10:00 a.m. www.nebraskaautoauction.com
PLAZA AUTO AUCTION, INC. 320 Highway 30 West P.O. Box 147 Mt. Vernon, IA 52314 (319) 895-6232 Fax: (319) 895-6727 www.plazaaa.com Owner: Mark Greb Office Manager: Debbie Welsh Sales Manager: Becky McGinty Consignment Sale every Wednesday at 6:30pm. Fleet/Lease/Repo Sale Wednesday at 7pm.
TRI-STATE AUTO AUCTION Jct. Highway 11 & 80 P.O. Box 735 Cuba City, WI 53807 (608) 744-2020 (608) 744-3418 (800) 356-0625 Fax: (608) 744-7425 Owners/Managers: Gerald and Helen Brogley Thursday 6:30 p.m.
ASSOCIATION NEWS /
PRESIDENT’S LETTER >> Sharpen Your Axe
>>
135 AUTO AUCTION
Fellow dealers, Once upon a time, a very strong woodcutter got a job in a timber merchant. The pay was really good and so were the work conditions. The woodcutter was determined to do his best. His boss gave him an axe and showed him the area where he was supposed to work. The first day, the woodcutter brought 18 trees. “Congratulations,” the boss said. “Go on that way!” Very motivated by the boss’ words, the woodcutter tried harder the next day, but he could only bring 15 trees. The third day he tried even harder, but he could only bring 10 trees. Day after day he was bringing fewer and fewer trees. “I must be losing my strength,” the woodcutter thought. He went to the boss and apologized, saying he could not understand what was going on. “When was the last time you sharpened your axe?” the boss asked. “Sharpen? I had no time to sharpen my axe. I have been very busy trying to cut trees…” I’m thinking of a couple of lessons in this story. The most obvious would be to take the time to sharpen your axe. In other words, work smarter, not harder. The other thing to keep in mind is this: Only someone serious about making a living in a particular occupation will use the best tools available. They invest their precious time and money into their own business. To have the best chance to succeed, they take time to sharpen their axe. We see businesses fail every day across this country for several reasons. A lot of these failures come from listening to the wrong people or not taking advice from the right people. My mentor used to say, “Check the fruit on the tree” – don’t take advice on how to run a successful restaurant from someone who failed in the restaurant business. Look at a successful car dealership and do what they do. This also helps you avoid some of the pitfalls associated with the car business. I saw a great quote on social media the other day: “Everyone wants to be successful until they find out what it takes.” To you road warriors, this makes perfect sense. This quote can apply to just about anything. I love to hunt, and as we come into hunting season I have to be willing to improve my chances of success. I don’t just take my gun for a walk and come home with game. I practice and practice, and then I make sure my dog is well trained and healthy. Then I purchase the proper licenses for the correct season and game. I make sure I buy the right ammunition for what I’m hunting. And then, after I have made every preparation I can think of, I hunt. And after all the prep work, I could still come home empty handed, but I increased my chances of success by doing what needed to be done. Sales is the same way. Have you ever heard this one? “In sales, 95 percent of your time is wasted, but 5 percent will make you rich.” This is so true, especially in our crazy business. Well, I should be done rambling so here is a clean, non-political, non-offensive, and still sort of funny joke. Teacher: “Anyone who thinks they are stupid may stand up!” Nobody stands up. Teacher: “I’m sure there are some stupid students over here!” Little Johnny stands up. Teacher: “Oh, Johnny, you think you’re stupid?” Little Johnny: “No... I just feel bad you’re standing alone...” Sorry, but it’s tough to find a good joke that I can’t get in trouble over. I hope this article reaches a couple of you and makes a small difference in your business. Remember to sharpen your axe! Thank you and best regards, Jeff Schneider, IIADA President
OCTOBER/NOVEMBER 2016 / STREET SMART 9 9/15/16 12:17 PM
MANAGEMENT GAMEPLAN / BY SCOTT BERGERON
TRADITIONS AND TRENDS NEED TO WORK TOGETHER
>>
>> Finding a Successful Blend
THERE’S A REASON traditions exist. They grow out of established, credible and time-tested circumstances. Trends, on the other hand, can be today’s hot attraction, which may or may not stand the test of time. How can a dealership capture the best of today’s trends and blend them successfully into a tradition-based program that drives more
sales on a consistent basis? CRM and Personal RelationshipBuilding There’s no question technology-driven Customer Relationship Management programs are firmly established as a trend. In all likelihood, CRM will become a tradition over time. But for now it’s still a relatively new and shiny toy many dealerships have embraced as a bedrock organizational and sales tool. CRM enables data mining about customers as well as regular communication with them. In essence, it can serve as the engine that drives relationship-building because it brings evidence-based intel to the table. Depending on the CRM used (and how consistently and completely it is adhered to), salespeople can gain valuable information about buying history and preferences, and communication preferences. It’s gotten to the point where CRM can tell a dealership how often to communicate with a customer via email, and what not to do (e.g., overwhelm with too many emails that end up alienating the customer). But without tires the vehicle won’t move very far. All the technology-driven protocols in the world can only go so far toward the time-honored tradition of relationship-building. This is the ability through interpersonal contact to establish and maintain trust, comfort and likeability with prospective and present customers. In the rush toward technology trends (e.g., Internet car-shopping and pricing tools), there’s a tendency to embrace the former and forget the latter. The truth is successful salespeople need both – the “scientific” piece that CRM systems can bring to the table and the “artistic” ability to develop rapport one-on-one. When the two work in harmony, dealerships get the best of both worlds. Buyers are “primed” by the CRM outreach that shows the dealership understands them and gives them useful information. In-person relationship-building then seals the deal. Here’s what can happen if the two aren’t working side by side: a prospective buyer walks into a dealership and is basically ignored by salespeople nearby because they’ve been schooled not to be too pushy or aggressive. (In some cases, it’s just plain laziness.) Armed with the amount of information available online, salespeople today too often assume a prospect will seek them out if interested. In the interim, they give them space. In reality, this is the worst way to proceed. It’s happened to me. I wound up feeling ignored rather than valued. Instead, a salesperson could have introduced himself/herself and offered to help – without coming across as pushy. This would have set the tone for a pleasant and productive discussion and potential sale.
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The trend is no-haggle pricing.
The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences.
a lower price through negotiation, they won’t buy at all – or at least they will be reluctant. Here’s another perfect example of how trend and tradition can complement each other perfectly. The trend is nohaggle pricing. The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences. So find out what those preferences are, then go one direction or another – or both. Read the prospective buyer carefully, then adjust as gut feelings dictate. If someone comes in and is adamant from the get-go about a firm price, so be it. If it’s unclear what their preferences might be, ask. (Then, have an option to fit their preferences. If they want to negotiate, be prepared to shift gears from one-price shopping.) Then, of course, there’s the hybrid – a
buyer who wants the firm price and wants to negotiate from there. Decide if/how to address this scenario. In short, prepare your salesforce to deal with all types of buyers. Because just as the U.S. is a melting pot of different ethnicities, so is the car buying population a melting pot of preferences. Those preferences can best be addressed by honoring both trends and traditions. Former dealer executive Scott Bergeron is the founder and principal at Daily Gameplan (www. dailygameplan.com), a sales team performance company. Daily Gameplan’s Red Books and cloudbased CRM have been used in thousands of dealerships throughout the United States. Bergeron can be reached at 303.918.3169 or scott@dailygameplan.com.
Internet Shopping vs. Instinct Another “trend” (yes, many will say it’s here to stay) is Internet-based car shopping and pricing. There’s no doubt the abundance of Internet information has led to much more savvy and educated buyers. This is great because it opens the door for a salesperson to build rapport based on instincts instead of just answering pedestrian questions about a potential car or sale. However, exercising those traditional instincts seems to be a lost art in too many dealerships. Salespeople often are cast as order-takers, there to follow through on customer requests. As with the CRM example above, this is leaving a big (some would say the biggest) piece of salesmanship on the salesroom floor. Instincts can be wonderful because they work at a level technology doesn’t. Properly tuned in, a salesperson can intuit buying clues just by observing a prospective buyer’s body language, movements, gestures and actions. For example, a prospect is viewing pricing information on a particular vehicle, then throws up his hands. That well could indicate frustration, or is it exhilaration? The alert salesperson will make sure to find out, and take the conversation in the direction it needs to go from there. While instincts themselves can’t be trained, awareness of when and how to use them can. This needs to become, once again, a key part of salesforce training – at the time of hiring, and periodically thereafter. Even if the new hire is a seasoned pro, the “hows” of exercising instinct may need to change depending on previous experience and current dealer aims. Iron-Clad Internet Pricing vs. Art of the Deal Following through on the trend of all things Internet, one-price-no-dickering shopping has become the rule, not the exception. Why? Yes, I know a gazillion surveys have said buyers don’t want to haggle or be hassled in the price-shopping arena, and that a one-price policy makes them feel much more at ease and trusting. Well, that’s great for those people. But what about those who like to haggle? There are still many buyers out there who live for the art of the deal. If they can’t feel like they’ve achieved
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OCTOBER/NOVEMBER 2016 / STREET SMART 11 9/15/16 12:17 PM
DEALER BEST PRACTICES / BY CHET HEUGHAN
VENDOR MANAGEMENT >> What Lenders Want to Know
About Your Dealership
VENDOR MANAGEMENT has become somewhat of a buzzword in the consumer lending industry, especially around auto lending. It has always been a financial institution’s responsibility and obligation to know who they are doing business with and how loan applications are reaching their institutions. The Consumer Financial Protection Bureau, however, has further emphasized financial institutions are responsible for the end product. This is to say that any negative actions taken by the dealer will become a problem for the lender. Within franchised dealerships the vendor management requirement is aided by a strong presence from the manufacturer. For example, a franchise dealer has certain covenants that require financial reporting, including minimum capital thresholds, required training and certifications. Franchised dealers also benefit from the monitoring of customer satisfaction surveys, detailed inventory tracking and industry benchmarks provided by other franchise dealerships selling the same brands. Independent auto dealers represent a unique challenge for many lenders. Independent auto dealers often vary in size, financial strength, operational models, inventory and experience. Unlike most franchise dealerships, independent auto dealers do not have the support of a franchise offering multiple checks and balances. It is easy to understand why lenders then tend to gravitate toward independent dealers that look and act more like a franchise dealership. As indirect auto lending has become more competitive and lenders struggle to increase yield, many have had to broaden their credit spectrum and move closer toward subprime lending or expand their dealer network outside their traditional relationships. To do this lenders have had to modify their dealer underwriting and dealer management models to fit smaller dealerships with more diverse revenue and sales models. In years past independent auto dealers had to meet the same minimum criteria for doing business with the lender as a franchise dealership, but times are changing. Many lenders have multiple programs and mitigate the risk of smaller dealerships with low working capital and minimal experience by using a third-party risk mitigation platform. With many of these platforms, small or new independent dealerships can gain access to the same national programs as large franchised stores. Lenders are able to serve independent dealers because thirdparty risk mitigation platforms are helping bring efficiency and transparency to the transaction. 12 STREET SMART / OCTOBER/NOVEMBER 2016 IA_1016.indd 12
For example, independent dealers may be subject to more frequent underwriting, additional verification steps and less direct access to loan underwriters. While there is more work on the dealer’s side, these steps also benefit the stores’ owners by helping identify fraud attempted by customers or rogue employees. The days of simply signing a lender’s dealer agreement and providing a few supporting documents to gain access to their retail financing program are drawing to a close. Lenders are being required to truly know and manage their dealer relationships. This means updating key pieces of data and underwriting each dealership on an annual basis. As an independent auto dealer it’s important to understand what lenders are looking for and be prepared to provide the documentation needed annually to avoid disruptions in your lenders’ retail financing programs. Lenders will be evaluating the dealer principals, the dealership itself and inventory. They will be looking at credit reports that indicate bankruptcies, tax liens, past-due accounts, and potential fraud or identity theft. In addition, lenders will check criminal history reports and verify addresses, property ownership, bank statements, business financial statements and tax returns. Lenders will also be looking at more subjective data such as references from your auctions, floor plan lenders, warranty providers and personal references. You should be prepared to provide proof of insurance, copies of bonds and licenses, and expect a yearly site visit and basic inspection of your facility. Lenders really want your business, but they must first know who you really are. Creating your own internal process for managing due diligence requests from lenders and thirdparty risk mitigation service providers will make this process easier and more efficient for you. Understanding what lenders are looking for and providing it in a timely manner goes a long way toward building a strong profitable relationship along with the ability to compete with your neighboring franchise stores. Chet Heughan is director of AppOne® Risk Mitigation Services and Indirect Lending for Wolters Kluwer. For more information, please visit www. wolterskluwerfs.com.
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5 HOUR DEALER EDUCATION CLASSES DATES AND LOCATIONS Classes will be given at all of the major community colleges. The 5-hour continuing education class must be taken prior to December 31, 2016, to renew your license for 2017-2018. The cost is $159 per person and includes a new dealer education manual. You must register and prepay for the 5-hour class. Colleges accept most major credit cards. Class information may be found on the IIADA website: www.iowaiada.com. Look under “Dealer Education – 5 Hour Classes for 2016.”
Thursday, October 13, 2016
Iowa Western Community College – Council Bluffs To register call 712-325-3256 or register online at http://www.iwcc.edu/continuing_ education/work_related/trades.asp. Prepayment is required. Colleges accept most major credit cards. Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No. # AUTO 99*01 Room No.: Looft Hall - Room 006 – Max. Class Size: 50 Iowa Western Community College – Council Bluffs 2700 College Road – Looft Hall Council Bluffs, Iowa
Friday, October 14, 2016
Iowa Western Community College – Council Bluffs To register call 712-325-3256 or register online at http://www.iwcc.edu/continuing_ education/work_related/trades.asp. Prepayment is required. Colleges accept most major credit cards. The Nuts, The Bolts, The Basics Class time: 8:00 a.m. to 1:00 p.m. Please arrive at 7:45 a.m. Course No. AUTO 99*02 Room No.: Looft Hall – Room 006 – Max. Class Size: 50 Iowa Western Community College – Council Bluffs 2700 College Road – Looft Hall Council Bluffs, Iowa
Thursday, October 20, 2016
Iowa Lakes Community College – Emmetsburg Campus To register call: 800-252-5664 or go to www.iowalakes.edu/continuing_ education. Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Class time: Noon to 5:00p.m. Please arrive by 11:45 a.m. Class No. 67789 Course No. UCAR-10120 – Environmental Room No. 3208 – Agricultural Sciences Building – Max Class Size: 50 Iowa Lakes Community College – Emmetsburg Campus 3200 College Drive – Agricultural Sciences Building Emmetsburg, Iowa
Friday, October 21, 2016
Northwest Iowa Community College – Sheldon To register, call 712-324-5061 or 800352-4907. Prepayment is required. Colleges accept most major credit cards. Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. The Nuts, The Bolts, the Basics Course No. 51932 Room No. 328C – Max. Class Size: 90 Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. 51933 Room No. 304C – Max. Class Size: 35 Northwest Iowa Community College – Sheldon Building C 603 W. Park Street Sheldon, Iowa
Friday, October 28, 2016
Iowa Lakes Community College – Emmetsburg Campus To register, call 800-252-5664 or go online: www.iowalakes.edu/continuing_ education. Prepayment is required. Colleges accept most major credit cards. The Nuts, The Bolts, The Basics Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. Class No 67790 Course No. UCAR-101-21 Room No. 3208 – Max. Class Size: 50 Iowa Lakes Community College – Emmetsburg Campus 3200 College Drive – Agricultural Sciences Building Emmetsburg, Iowa
Thursday, November 3, 2016
Indian Hills Community College – Ottumwa To register, call 641-683-5249 or 800346-4413, or email Custlearning@ indianhills.edu. You can also visit www. indianhills.edu/customlearn. Prepayment is required. Colleges accept most major credit cards. The Nuts, The Bolts, The Basics Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No, 17/YR*REL*2908*501 Bennett Student Services Center – Room 100 – Room Capacity: 60 Indian Hills Community College Bennett Student Services Center 623 Indian Hills Drive Ottumwa, Iowa
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Friday, November 4, 2016
Indian Hills Community College – Ottumwa • To register, call 641-683-5249 or 800346-4413, or email Custlearning@ indianhills.edu. You can also visit www. indianhills.edu/customlearn. • Prepayment is required. Colleges accept most major credit cards. • Class times: 8:00 a.m. until 1:00 p.m. Please arrive by 7:45 a.m. Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Course No. 17/YR*REL*2902*501 Advanced Technology Center – Room 132 – Max. Class Size: 80 Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. 17/YR*REL*2903*501 Advanced Technology Center – Room 122 – Max. Capacity: 30 Legal & Compliant Guidance for Dealer Assisted Consumer Financing – Indirect Lending Guidelines Course No. 17/YR*REL*2904*501 Advanced Technology Center – Room 125 – Max Capacity: 30 Indian Hills Community College Advanced Technology Center 623 Indian Hills Drive Ottumwa, Iowa
Thursday, November 17, 2016
Hawkeye Community College – Cedar Falls To register, call 319-296-4290 or go to www.hawkeyecollege.edu and put the class number in the search box. Prepayment is required. Colleges accept most major credit cards. Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No. 25149 Room No. 111/113 - Max. Class Size: 40 Hawkeye Community College – Cedar Falls Center Center for Business and Industry 5330 Nordic Drive Cedar Falls, Iowa
Friday, November 18, 2016
Northeast Iowa Community College – Dubuque To register, call 563-557-8271, Ext. 380, or go to www.nicc.edu/solutions and search Class ID and add to cart. Prepayment is required. Colleges accept most major credit cards Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class Time: Noon until 5:00 p.m. – Please arrive by 11:45 a.m. Course No. # 50388 Room No. 106C – Max. Class Size: 50 Northeast Iowa Community College Town Clock Business Center 680 Main Street Dubuque, Iowa
Hawkeye Community College – Cedar Falls • To register, call 319-296-4290 or go to www.hawkeyecollege.edu and put the class number in the search box. • Prepayment is required. Colleges accept most major credit cards. The Nuts, The Bolts, The Basics Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. Course No. 25150 Room No. 111/113 – Max. Class Size: 40 Environmental, Health and Safety Compliance for Auto Dealers/Recyclers Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. Course No. 25151 Room No. 112 – Max Class Size: 30 Legal and Compliant Guidance for Dealer Assisted Consumer Financing – Indirect Lending Guidelines Class time: Noon to 5 p.m. Please arrive by 11:45 a.m. Course No. 25152 Room No. 146 – Max. Class size: 30 Hawkeye Community College – Cedar Falls Center Center for Business and Industry 5330 Nordic Drive Cedar Falls, Iowa
Friday, November 11, 2016
Monday, November 21, 2016
Thursday, November 10, 2016
Northeast Iowa Community College – Dubuque • To register, call 563-557-8271, Ext. 380, or go to www.nicc.edu/solutions and search Class ID and add to cart. • Prepayment is required. Colleges accept most major credit cards • Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. The Nuts, The Bolts, The Basics Course No. 50389 Room No. 231 – Max. Class Size: 90 Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. 50390 Room No. 110 – Max. Class Size: 50 Legal and Compliant Guidance for Dealer Assisted Consumer Financing – Indirect Lending Guidelines Course No. 50391 Room No. 106C – Max. Class Size: 50 Northeast Iowa Community College Town Clock Business Center 680 Main Street Dubuque, Iowa
Western Iowa Tech Community College – Sioux City To register, call 712-274-6418. Prepayment is required. Colleges accept most major credit cards. Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No. CPCE 1108-01 BLDG: Dr. Robert E. Dunker Student Center (RED) Room No. W 108B – Max. Class Size: 60 Western Iowa Tech Community College 4647 Stone Avenue Sioux City, Iowa
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NOTES: Tuesday, November 22, 2016 Western Iowa Tech Community College – Sioux City • To register, call 712-274-6418. • Prepayment is required. Colleges accept most major credit cards. • Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. The Nuts, The Bolts, The Basics Course No # CPCE 1118-01 BLDG: Dr. Robert E. Dunker Student Center (RED) Room No. W 108B – Max. Class Size: 60 Environmental, Health & Safety Compliance For Auto Dealers/Recyclers Course No # CPCE 1115-01 BLDG: Dr. Robert E. Dunker Student Center (RED) Room No. W 108A – Max. Class Size: 60 Legal and Compliant Guidance For Dealer Assisted Consumer Financing – Indirect Lending Guidelines Course No. #CPCE 1122-01 BLDG: Corporate College (CCO) Room No. B 224 – Max. Class Size: 40 Western Iowa Tech Community College 4647 Stone Avenue Sioux City, Iowa
Monday, November 28, 2016
Kirkwood Community College – Cedar Rapids To register, call 800-332-8833, or register online at www.kirkwood.edu/ce. Prepayment is required. Colleges accept most major credit cards. Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No. # CBBC-2040/81392 – Buy Here Pay Here Operations Room No. 202/208 – Max. Class Size = 30 Kirkwood Community College Kirkwood Center for Lifelong Learning 6301 Kirkwood Blvd., SW Cedar Rapids, Iowa
Tuesday, November 29, 2016
Kirkwood Community College – Cedar Rapids • To register, call 800-332-8833, or register online at www.kirkwood.edu/ce. • Prepayment is required. Colleges accept most major credit cards. • • Class Time: 8:00 a.m. until 1:00 p.m. Please arrive by 7:45 a.m. Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. #CBBC-2040/81394 Room No. #302/34 – Max. Class Size: 30 Legal and Compliant Guidance for Dealer Assisted Consumer Financing Indirect Lending Guidelines Course No. CBBC-2040/81395 Room No. 312/316 – Max. Class Size: 30 The Nuts, The Bolts, The Basics Course No. CBBC-2040/81393 Room No. 202/208 – Max. Class Size: 30 Kirkwood Community College Kirkwood Center for Lifelong Learning 6301 Kirkwood Blvd., SW Cedar Rapids, Iowa
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Friday, December 2, 2016
Des Moines Area Community College – Southridge Center – Des Moines • To register call 515-964-6800 or 800342-0033 or go to www.dmacc.edu – Auto Dealer Ed. • Prepayment is required. • For questions contact Curt: 515-2564902 or ccbuhr@dmacc.edu. • 8:00 a.m. until 1:00 p.m. Please arrive by 7:45 a.m. The Nuts, The Bolts, The Basics Course No. 16183 Prof 559 102 Room No. 20 A & B – Maximum Class Size: 80 The Nuts, The Bolts, The Basics Course No. 16184 Prof 559 103 Room No. 20 C & D – Max. Class Size: 80 Des Moines Area Community College – Southridge Center 1111 East Army Post Road Des Moines, Iowa
Friday, December 2, 2016
Iowa Western Community College – Council Bluffs To register, call 712-325-3256, or register online at http://www.iwcc.edu/continuing_ education/work_related/trades.asp. Prepayment is required. Colleges accept most major credit cards. Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Class time: 8:00 a.m. to 1:00 p.m. Please arrive by 7:45 a.m. Course No. AUTO 99*03 Room No. 006 Looft Hall – Max. Class Size: 50 Iowa Western Community College 2700 College Road – Looft Hall Council Bluffs, Iowa
Thursday, December 8, 2016
Scott Community College – Urban Center – Davenport To register, call 563-441-4100. Prepayment is required. Colleges accept most major credit cards Buy Here Pay Here Operations – The Policies and Procedures for Compliant Dealerships Class time: Noon to 5:00 p.m. Please arrive by 11:45 a.m. Course No. 174169 Room No 204 – Max. Class Size: 40 Scott Community College – Urban Center 306 W. River Drive Davenport, Iowa
Friday, December 9, 2016
Scott Community College – Urban Center – Davenport • To register, call 563-441-4100. • Prepayment is required. Colleges accept most major credit cards. • Class time: 8:00 a.m. to 1:00 p.m. Please arrive at 7:45 a.m. The Nuts, The Bolts, The Basics Course No. 174171 Room No. 204 - Max. Class Size: 40 Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. 174172 Room No. 210 – Max Class size: 30 Legal and Compliant Guidance for Dealer Assisted Consumer Financing Indirect Lending Guidelines Course No. 174173 Room No. 212 – Max. Class Size: 30 Scott Community College – Urban Center 306 W. River Drive Davenport, Iowa
Friday, December 16, 2016
Des Moines Area Community College – DMACC – Southridge Center – Des Moines • To register call 515-964-6800 or 800342-0033 or go to www.dmacc.edu – Auto Dealer Ed. • Prepayment is required. • For questions contact Curt: 515-2564902 or ccbuhr@dmacc.edu. • 8:00 a.m. until 1:00 p.m. Please arrive by 7:45 a.m. The Nuts, The Bolts, the Basics Course No. 16185 Prof 559 104 Room No 20 A B C D if necessary Des Moines Area Community College – Southridge Center – Des Moines, Iowa 1111 East Army Post Road Des Moines, Iowa
Friday, December 16, 2016
Des Moines Area Community College – DMACC – Southridge Center – Des Moines • To register call 515-964-6800 or 800342-0033 or go to www.dmacc.edu – Auto Dealer Ed. • Prepayment is required. • For questions contact Curt: 515-2564902 or ccbuhr@dmacc.edu. • 8:00 a.m. until 1:00 p.m. Please arrive by 7:45 a.m. Environmental, Health & Safety Compliance for Auto Dealers/Recyclers Course No. # 15759 Prof 978 101 Room No. 28 – Max Class Size: 20 Des Moines Area Community College – Southridge 1111 East Army Post Road Des Moines, Iowa
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OCTOBER/NOVEMBER 2016 / STREET SMART 15 9/15/16 12:17 PM
APPROVED MEMBER BENEFIT PROVIDERS ADVANCED BUSINESS PRODUCTS, INC.
Printing, Promotional Products, & Wearables Contact: Scott Jayne PO Box 71547 Des Moines, IA 50325 Phone: 515-225-6343 Toll Free: 888-464-2274 Fax: 515-225-6510 Toll Free Fax: 877-987-3514 Website: www.go4abpi.com
ALLY SMART AUCTION
4300 SW Cambridge Avenue Topeka, Kansas 66610 785-249-4166 Iowa Rep: Seth Fair seth.fair@ally.com 515-777-4592
ASSOCIATIONS MARKETING GROUP INC Health Insurance Jesse and Lee Patton 1112 Maple Street West Des Moines, Iowa 50265 Toll Free: 800-798-6772 Phone: 515-270-8178 Fax: 515-270-0398 E-mail: leepatton@amgi-dsm.com
AUTO OWNERS INSURANCE
10% DISCOUNT TO ALL IIADA MEMBERS Corcoran & Associates, Inc. Mick and Teresa Corcoran 2525 E. Euclid, Suite 102 Des Moines, Iowa 50317 Phone: 515-262-3141 Fax: 515-262-3086 Toll Free: 877-518-4051 E-mail: teresa@corcoranandassoc.com
AUTOJINI.COM
Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames, IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com
CITIZENS COMMUNITY CREDIT UNION
2012-1ST AVENUE SOUTH FORT DODGE, IOWA 50501 Phone: 515-955-5524, Ext. 202 Fax: 515-955-8241
CORCORAN & ASSOCIATES INC.
Various Types of Insurance Contact: Teresa Corcoran 18-2nd St., N.E. Mason City, Iowa 50401 Phone: 877-518-4051 Phone: 515-262-3141 Fax: 515-262-3086 Email: teresa@corcoranandassoc.com
CU DIRECT (CUDL)
DIAMOND OIL COMPANY
Lubricants, Diesel Fuel, Propane & DEF Contact: Jason Heiden 702 S.E. Raccoon Street Des Moines, Iowa 50309 Email: jheiden@diamondoilco.com www.diamondoilco.com
ERIKSON SOLUTIONS SERVICES, LLC
F & I Compliance & Sales Training Alpha Warranty Services Classic Essential GAP – Norman & Co. Frazer Computing Rep Motorsport Dealer Solutions www.motorsport-dealer-solutions.com Contact: Scott Erikson 15210 Castelar Circle Omaha, Nebraska 68144 P: 402-639-0664 F: 402-697-4937 eriksons@aol.com
FOLLOW-UP PLUS
“Customers for Life” Repeat Sales, Referrals & Customer Loyalty Contact: Terry & Sue Newell P.O. Box 294 Carthage IL 62321 Ph: 217-357-9032 Fax: 217-357-9076 E-mail: tlnewell@frontienet.net
FRAZER COMPUTING, INC.
6196 US Highway 11, PO Box 569 Canton, NY 13617 Phone: 888-963-5369 Fax: 888-963-3366 Website: www.Frazer.com Email: info@Frazer.com
GATEWAY ONE LENDING & FINANCE
a tcf bank company Tim Jennings, Sales Manager Cell: 515-782-3182 tim.jennings@gatewayonelending.com 387 Shuman Blvd., Suite 150E Naperville, Illinois 60593 www.gatewayonelending.com
GLOBE ACCEPTANCE INC
Sub-prime Lender Contact: Beth Dieter P.O. Box 65400 West Des Moines, Iowa 50265 Phone: 515-225-9067 globeaccepts@globeacceptance.com Website: www.GlobeAcceptance.com
GREATER IOWA CREDIT UNION 1630 22nd Street West Des Moines, Iowa 50266-1407 Jason Kolar, Dealer Direct Manager Ph: 515-954-1666 F: 515-956-6966 jkolar@greateriowacu.org
INNOVATIVE DEALER SERVICES, INC.
Contact: Paul Bejarno, Area Account Representative Phone: 515-988-0521 Email: paul.bejarno@cudirect.com Website: www.cudirect.com 2855 E. Guasti Road, Suite 500 Ontario, CA 91761
Dealer Software Management Systems P.O. Box 23189 Shawnee, Kansas 66283 913-312-7344 – Ext. 11 Fax: 810-821-1718 Website: innovativedealer.com Terry Webb twebb@innovativedealer.com
CYCLONE AUTOMOTIVE TRAINING INC.
PEOPLES INSURANCE AGENCY
F&I Training, Sales Training, Service Contracts Rob Miller and Chris Hochstein 515 N Jefferson Way Ste H Indianola, IA 50125 Phone: 515-962-0099 or 515-962-0100 Fax: 515-961-8400 Rob: 515-205-5900 cell Chris: 515-205-5800 cell E-mail: cycloneautomotive@ cycloneautomotive.com
Dealer Bonds Long Term Care Insurance Various types of insurance Contact: Dean M Clark 300 Walnut Street Ste 200 Des Moines IA 50309 Phone: 515-243-1724 Toll Free: 800-767-1724 Fax: 515-243-6664 E-mail: d.m.clark@reynolds-reynolds.com
S & C AUTOMOTIVE, INC.
NIADA CPO Program & Training, F&I Products, Reinsurance Formation, Appearance Protection, Spray-on Bedliners, Accessory Installation 3828 70th Street Urbandale, Iowa 50322 P -515-276-9622 Fax: 515-276-8472 Contact: Doug Eckhart doug.eckhart@scautomotive.net Website: www.scautoia.com
U DRIVE ACCEPTANCE CORPORATION
An Iowa Sub-Prime Finance Company P.O. BOX 3107 Sioux City, Iowa 51102 620 S. Lewis Blvd., Sioux City, Iowa 51106 Neil Evans, Director of Originations Office: 712-258-0269 Cell: 402-517-6076 Fax: 712-293-2141 Email: neil@udriveac.com Website: www.udriveac.com
UNIVERSITY OF IOWA COMMUNITY CREDIT UNION
Doug White, Indirect Lending Manager 319-248-5855 dwhite@uiccu.org P.O. Box 800 North Liberty, IA 52317
VERIDIAN CREDIT UNION 1827 Ansborough Avenue P.O. Box 6000 Waterloo, Iowa 50704-6000 800-235-3228 Kara Van Wert –Tony McKillip
WILSON DISTRIBUTOR SERVICE IIADA DEALER CAP FORMS Car Brite Products Forms, Detail Supplies, Equipment & More Jason & Lisa Goody 105 N McCoy Mt. Pleasant IA 52641 Phone: 800-634-0974 Fax: 319-385-2927 E-mail: jasonwds@lisco.com Website: www.wds-usa.com
ZURICH
Garage Keepers, Property, Garage Liability Dealer Bonds 7045 College Blvd. Overland Park, Kansas 66211 Scot Smith – Eastern Iowa Rep. scot.smith@zurichna.com Cell: 319-330-7159 Austin Beber, Western Iowa Rep Austin.beber@zuricchna.com Phone: 402-616-6995
Auto Dealer Insurance Programs 1700 8th St., SW, PO Box 119 Waverly, Iowa 50677 Website: www.peoples-insurance.com Contact: Jason Whitinger/Kathy Mitchell Email: Jason@peopes-insurance.com Kathy@peoples-insurance.com Phone: 319-352-6327, Ext. 137
PROSOURCE FINANCE
We Do F & I for You 2540 106TH Street, Suite 202 Urbandale, Iowa 50322 800-795-1765 jeff@prosourcefinance.com website: www.ProSourceFinance.net
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REYNOLDS & REYNOLDS INC.
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>> A Way to Cut Costs and Mitigate Risk
>>
HOW MUCH RISK ARE YOU WILLING TO TAKE?
AFTER YEARS OF declining sales, the automotive industry is once again on the rise. Fueling much of the resurgence in vehicle sales is the recent growth in subprime automotive financing. So what is fueling the increase in subprime auto loans? In the wake of the recent economic crisis, increasing numbers of car buyers found themselves saddled with poor credit resulting from job loss, foreclosure, bankruptcy and other financial woes. While still struggling with low credit scores, many of those customers are now moving toward financial recovery. They’ve found new jobs and careers, are earning decent salaries, have wiped the slate clean and are lowering their debts. Despite that progress, those credit-challenged customers still cannot qualify for traditional auto financing. But they still need vehicles. To meet that demand, increasing numbers of dealerships and lenders are approving more subprime auto finance, and are going deeper and deeper in the process. According to a recent report by Experian, “The percentage of auto loans to buyers with the poorest credit ratings is growing faster than the rest of the auto finance market.” Almost 21 percent of open auto loans are held by individuals with subprime and deep subprime credit ratings. However, with the uptick in auto loans, we are also witnessing one of the largest increases in auto loan delinquency rates on record. According to Fitch, increased loan originations, higher lender
ACCELERATE / BY GWC WARRANTY
CASHING IN ON LEADS
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>> Do’s and Don’ts
URGENCY TO BUY HAS NEVER BEEN GREATER.
A Google/Polk study recently found 81 percent of car buyers make a purchase within three months of beginning their online search and 51 percent buy within one month of their first clicks. Furthermore, a Cars.com survey found online shoppers are three times more likely to contact a dealership by phone than they are to reach out via email or chat. What does that mean for you? It shows you need to be on your toes for each and every phone call that comes into your dealership. Here are some simple do’s and don’ts that will help you capitalize on Internet leads that find their way to your phone lines. DO’S • Have a process. Without a process, you’re just guessing. Make sure you answer the phone consistently, ask for names, provide your name and treat sales calls as the golden opportunities they are. A Marchex Institute study showed 53 percent of answered calls were from shoppers with a clear intent to buy.
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competition and looser underwriting standards in the subprime loan market have caused an influx of higher auto delinquencies. That’s a problem. Higher delinquencies mean higher rates of default. Which leads to the question: How can you better manage your portfolio and risk for success? As subprime auto lending continues to gain momentum and loans dive deeper, the associated risks continue to rise. Dealerships and lenders who offer subprime auto financing should be prepared for an increase in delinquencies, defaults, repossessions, collection staff time and resources – all of which come with significant costs that cut into profitability. BHPH dealers and lenders are now turning to GPS tracking as a smart business strategy that cuts costs and mitigates risk while also encouraging their customers to pay on time and improve their credit. GPS tracking, in its most effective form, is a system that enables dealerships and lenders to verify customer information faster, ensure more on-time payments and locate vehicles in real time to manage their liability with high-risk vehicle collateral. The more advanced GPS vehicle tracking and collateral management systems include additional features such as payment reminders and advanced reporting. Those features further reduce business costs while also promoting on-time payments that help customers stay in their vehicles and rebuild their credit. In a study conducted on Spireon’s GoldStar GPS vehicle tracking, 87 percent of vehicle finance customers saw an increase on their return capital. Further, 77 percent saw a significant improvement of their customers’ credit ratings. The right type of GPS vehicle tracking can improve business profitability, reduce risk, help maintain CFPB compliance and help customers improve their credit. David Meyer is executive vice president of sales and client services for Spireon, bringing more than 28 years of vehicle finance and BHPH industry experience his role overseeing the company’s Automotive Solutions Group.
• Set an appointment. Don’t put the phone on the hook without putting something on the books. If you haven’t set an appointment for a customer to come look around the lot or test drive a car they saw online, you wasted your time and your customer’s. They called because something about your dealership caught their eye. Find out what it is and get them in the door to take a closer look. • Return calls promptly. Surprisingly enough, this may not be as simple as it sounds. Only about 20 percent of car shoppers begin their search looking at the brand they’re going to buy. You’re not the only dealer they’re looking at, but you could be if you’re the first to respond. DON’TS • Don’t try to sell a car over the phone. Best Mark placed test calls to dealerships around the country and found 91 percent of salespeople attempted to sell a car over the phone rather than set an appointment. Nothing sells a car better than seeing it in person. A sale over the phone is rarely effective. • Don’t wing it. Best Mark’s survey also uncovered the staggering fact that 95 percent of salespeople don’t have a defined road to an appointment. Like we said about creating a process, guessing at what will get your customers off the phone and in their next vehicle isn’t the most practical way to approach a lead.
A Google/Polk study recently
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BHPH PERSPECTIVE / BY DAVID MEYER
found 81 percent of car buyers make a purchase within three months of beginning their online search and 51 percent buy within one month of their first clicks.
• Don’t wait for an email. Online shoppers are often searching on a cell phone or mobile device. They have easy access to a call button, plus we’ve already established they’re three times more likely to place a phone call than type up an email. If you think all your leads will land in your inbox, you could be sadly mistaken.
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