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READY Building New Roads in 2018 PAGE 03
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W W W.IO WA I A DA .C O M
S TAT E A F F I L I AT E
MANAGEMENT MATTERS
BY JUSTIN M. OSBURN
RETAIL READY Building New Roads in 2018
In the United States, millions of drivers jump in their vehicles and take to the roads each day. These drivers are from different states and backgrounds, with different levels of education. Though a diverse group, almost none just get up and decide to drive down the wrong side of the road. Why? They know this would be high risk for the safety of themselves and others. They know which side of the road to drive on and at what speed because the federal, state, and local road officials have a common vision of how traffic should flow. To prevent accidents and tragedy, drivers must receive communication from those visionaries. This communication is done primarily through driver’s education and signs. The road visionaries did not expect traffic to just “know” when to stop, when to not pass, what speed to drive, which side of the road to drive or when to exit or stop. Similarly, most workers get up every day with the intention to go to work and do the right thing. Most do not get up with malicious intent to cause chaos at their work place, or at your dealership. However, when the dealer and organizational leaders have not stepped back and thought about how they want their “roads” to function, the vision they have cannot be communicated. Leaders must decide which side of the road drivers will drive on before they can post the sign. The leaders must decide how fast people should drive for safe and efficient travel before they can post a speed limit sign. At the dealership, the senior leaders must have a vision how the business will operate before they communicate it to their team. Leaders must decide what the sales process is before they communicate such to the sales team. If the visionaries of the road system just built a road and no one took the time to decide how it would function, can you imagine what chaos traffic would present each day? Imagine no rules, no signs, no stop signs, no stop lights, no yield signs, no “no passing” zones and signs. Without an organizational vision for your operation, your business might resemble a road system with no thought or communication on how to use it. If you’re familiar with my “Gears to Profitability” dealer model, you know internal service quality precedes external service quality and the result and combination of both dictates profitability. Your responsibility as a leader is to provide short and long term vision. I find many dealers are confused what that means. Back to the roads, if you decide
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roundabouts are safer and more efficient than traffic lights, visionaries will begin to plan the best place to put a roundabout, what the flow of traffic will be and what rules and signs will organize it best for drivers. This is a long term vision. However, if a bridge is about to fall down and requires immediate repair, or an ice storm hits and salt is needed in the dead of night, this is a short term vision to keep traffic flowing until the longer term possibilities are completed. The dealership’s overall vision sets the framework that each leader inside of the business uses to create their own vision for individual departments. Think of the department managers as state and local roadways working together in congruence with overall highway rules. Leaders take responsibility for creating and communicating a compelling vision. This is essential for leading your team to success on the lot, in service or in the office. There is no better time to create and drive a clear vision than at the beginning of the year. So what is a strong and clear vision? It is a picture of the future that is created in the imagination and catalyzes action! The compelling argument for a clear and communicated vision is to prevent organizational chaos. Each leader’s vision is critical to individual success and impact. Effective leadership focuses on doing the right things. Do you do the right things? Do you do things right? Does your team do the right things? Do they do things right? First, know and understand the vision of the organization, how the roadways work. If you are the dealer, have you communicated the vision of the business clearly? This will enable your leaders to develop their own visions within the areas they control in the business to support the overall goals of the dealership. Second, leaders must create a vision that supports and contributes to the overall vision of the organization or department. As a leader, it is not healthy to construct and distribute a vision that is not a primary effort to advance your department toward the overall vision of the business. Doing so will cause you to conflict with the business itself, resulting in friction with other leaders in the operation, conflict with other departments and confusing communication to those in your charge. Imagine you are in charge of the roadways in a small town, and you decide it
makes more sense for everyone to drive on the left side of the road. Your vision is not congruent with the overall operation’s vision and will cause chaos and tragedy. Last, communicate the organization’s vision in a way that is compelling and inspirational. Part of your responsibility is to consistently broadcast the direction of the department and the dealership to nonleaders on the team. When you are traveling in an unfamiliar, large, downtown area and using GPS to assist you, the directions for your next turn are given two miles, one mile, and half a mile in advance as well as at the time of the turn. Signs are also used, frequently, to communicate the vision – think exit signs, speed limit signs, mile markers, etc. All these communications work to support the overall operational objective. As a leader in your organization, your behaviors demonstrate your vision and impact your dealership’s success. If you tell your team to drive 65 miles per hour on the right hand side of the road, but every day you drive 85 miles per hour on the left hand side of the road, you are not offering yourself or the organization any value. How well does your vision create a shared and meaningful purpose? Does it inspire passion and interest? Does it guide decision-making and strategy? Does it convey values? Effectively communicate your vision. This allows others to decide to follow your vision. The impact is emotional commitment. The New Year brings new beginnings. The page is turning and it brings a fresh start mentally and emotionally. We step out in January and breathe in the new air while feeling anticipation of how this year will be better than the last. While most of us “feel” this reset, it fades away in a relatively short period of time. Make a long lasting effect this year. Imagine and motivate with a vision. I get great satisfaction receiving all of your emails. I’d love to hear your story on vision. Also, contact me for more information on Gears to Profitability or an NIADA 20 Group. Write me at justin@niada.com. JUSTIN OSBURN is a moderator, consultant and trainer for NIADA Dealer 20 Groups, offering more than a decade of experience in retail and Buy Here-Pay Here executive management. He can be reached at justin@niada.com.
December 2017 / January 2018 / STREET SMART
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RETAIL INSTALLMENT CONTRACTS IIADA has two distributors who will provide the Wolters Kluwer Financial Services
INSIDE
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.
03....................................................Building New Roads 06........................................................President’s Letter 08........................................Auto Credit Urban Legends 10.......................... Selling to Today’s Savvy Customers 12...................................................... Tidbits from IIADA 14...................................................................CarLawyer 18................................Improving Your “About Us” Page
PLEASE CONTACT: WILSON DISTRIBUTOR SERVICE • 1-800-634-0974 • www.wds-usa.com or Erikson Solutions Services, llc • 402-639-0664
WHAT’S NEW
KNOW WHERE TO LOOK FOR RECALL INFORMATION ON VEHICLES
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.
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
ADVERTISERS INDEX
AmTrust..........................................................................7 Black Book...................................................................IFC CarMax..........................................................................5 Manheim......................................................................11 NextGear Capital.........................................................12 PassTime......................................................................13 Protective................................................................... IBC 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 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 Street Smart 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.
INVESTIGATIONS INFORMATION LINE 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@iowadot.us) 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
EDITORS
Pocahontas Sales & Service PO Box 66 Pocahontas, IA 50574 712-335-4470
MAGAZINE LAYOUT
CHAIRMAN OF THE BOARD
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com Christopher Hanley • chris@niada.com PRINTING
Nieman Printing
Douglas Livy, Jr.
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
VICE PRESIDENT
Craig Dam
Carroll Car Credit Co. 409 E. 6th St., Box 805 Carroll, IA 51401 712-792-0140
TREASURER
Judy Wilson, IIADA P.O. Box 337 Panora, IA 50216 641-755-4177
STREET SMART / December 2017 / January 2018
Tab Miller
Quality Motors of Ames PO Box 7 Ames, IA 50010 515-290-2673
Clay Winterboer
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REGIONAL REPRESENTATIVES
Dam Auto Sales, Inc. 1021 Lewis Blvd. Sioux City, IA 51105 712-522-2831
Rick Theilen
Theilen Auto Sales 10536 265th Street Clear Lake, IA 50428 641-424-3352
Jay Muller
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
ADMINISTRATIVE OFFICES
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 Automotive P.O. Box 341 Panora, IA 50216 641-755-3048
Marcus Hebert
CarsNow, LLC 2124 W. Broadway Council Bluffs, IA 51501 712-256-6757
Merrill Hitchcock
Merrill’s Motors 317 N. 8th Street Winterset, IA 50273 515-462-1683
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PRODUCTS & SERVICES
DNR’S STATE FOREST NURSERY New Online Store
During the early winter months we perform outdoor clean up around the dealership and sometimes remove bushes and trees that have gotten unsightly over the years. If you are looking for a way to replace them, the Iowa Department of Natural Resources State Forest Nursery can help. Ordering trees from the DNR’s State Forest Nursery just got easier! A new online sales site features dozens of quality native Iowa trees and an easy checkout process. There are also changes to how nursery stock can be used, providing more options to people wanting to order bulk trees: • Customers can purchase trees in increments of 25, compared to previous order minimums of 200 (except for cuttings, which are sold
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in increments of 50). • Seedlings can be used for any purpose, including windbreaks or decorative landscaping such as screening view. • People who purchase nursery seedlings can resell them or give them away. Before, state laws dictated nursery stock be planted by the purchaser. Choose from 20 species of native hardwoods, nine evergreen species and 14 smaller trees/shrubs. Prices range from $0.30 to $1.40 per seedling, and tree species are sold in three size ranges on the site, with the tallest around 30 inches. Orders can be placed anytime between August 1 and May 31. As part of the ordering process, customers can choose a shipping window for delivery – fall shipments begin the last week of October, and spring shipments begin April 1. Some species are available in only one or two sizes, and may also be available for spring delivery rather than fall. Take advantage
of the Iowa State Forest Nursery Online Store at nursery.iowadnr.gov. The US Forest Service has assessed the economic value of the environmental benefits of trees with a tool they call iTree. This tool considers the storm water interception provided by trees that reduces downstream flooding control measures, energy conservation provided by shade, air pollution removal and carbon dioxide storage. Permission to include this article in Street Smart was provided by Sue Schauls Consulting. It originally appeared in the Iowa Automotive Recyclers News Press. Comment: Weather has played a big role throughout the US this year and one cannot help but think about the destruction of much needed trees after hurricane damage in Texas, Florida and Puerto Rico. Iowa too has had heavy rains and drought, possibly causing injury to trees and shrubs. The above services provide an inexpensive way to replenish damaged items.
December 2017 / January 2018 / STREET SMART
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ASSOCIATION NEWS
CHRISTMAS AND NEW YEAR’S GREETINGS Warm Wishes from IIADA
Christmas Greetings May you have a Merry Christmas as you gather beside a warm fire and decorate the fragrant holiday tree. We wish for you the comfort of family and friends during the holidays. Let there be peace on earth and let it begin with me. New Year’s Greetings Happy New Year! We hope 2018 will bring good health, great happiness and prosperity to you and your family.
ASSOCIATION NEWS
PRESIDENT’S LETTER
To Achieve Victory There Must Be A Challenge Fellow car warriors, We go through our everyday routines. We barely notice the big buildings, bridges, huge ships, windmills, etc. We get used to seeing these great accomplishments, to the point they become common. But if we slow down for a second and take a serious look at these things, what questions come up? I always wonder, “Who built that?” I want to meet the person that thinks this far outside of the box. How did they grow up? Who was in their lives that helped them think bigger than the average person? A couple of years ago I met a young man laying tile in a new house. As we talked, I found out he was a licensed plumber, electrician, and construction contractor. The surprising part was he was only 20 years old. I know it takes a couple of years to just get certified as a licensed electrician, so this guy must be a fireball. About one year later, I was looking into putting up a windmill. I called a couple of
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STREET SMART / December 2017 / January 2018
companies and wouldn’t you know it, I ended up talking to this same guy. I later found out he has his real estate license and owns quite a few rental houses. A year or two later, I read an article in the paper about the same guy buying a hardware store. Several months after that, I saw another article he was moving his store into a new building and expanding. Now I’m searching my brain to find out how. Did he win the lottery? Did he have rich parents? None of that would explain how he was able to get so much done in so little time. I find myself saying things like, “Well if I were single and had no kids, I might be able to take some of the risks involved with this type of success.” But then I see his picture in the paper with his wife and two kids, which totally blows my excuses out of the water. The year 2017 came and went with a few victories, a few missed goals, and some challenges. I hope every one of you overcame those challenges. As you know, without challenge, there can be no victory. What was your greatest accomplishment this year? What was the toughest thing you faced in 2017? Adversity causes some to
break, and others to break records. When asked these questions, certain memories pop into your mind – maybe from long ago or maybe recent. And if anyone reading this is like me, you will recall a few things you should have done differently. You maybe could plan something harder than you have ever done, set a goal higher than you could ever have imagined. In a previous letter I mentioned that when you are comfortable, you lose, and when you are uncomfortable, you win. Yet we all strive for comfort. We all continue to try to gain pleasure and avoid pain. One of my favorite quotes is, “When something hurts, it means you are either growing or dying, the choice is yours.” Some people settle for being average and some strive to be average. I’m not sure which is worse. One of my goals in life is not to be better than anyone else, but to be better than I was yesterday. I’ve included a little funny to make your day better. Well that’s all I have for now. I hope everyone had a Happy Thanksgiving, and has a wonderful and Merry Christmas and a Happy New Year. Thank you and best regards, Jeff Schneider President IIADA
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LEGAL MATTERS
BY THOMAS B. HUDSON
AUTO CREDIT URBAN LEGENDS Debunking Myths Urban legends. Can’t kill ’em with a hammer. Crocodiles in the sewer system and the like. Nobody can ever point to a single documented case, but the stories are passed around again and again, and never seem to go away. The auto finance business has its own urban legends. We hear them again and again. Some are things that aren’t true, but dealers tend to believe them. Some are things that aren’t true, but consumers tend to believe them. Let’s look at a few. You can’t pull a bureau without the customer’s signature. On the dealer side, we are told again and again by dealers that federal law requires that the customer sign an authorization form or an application form before the dealer may request the customer’s credit bureau report from the credit bureau. It just isn’t so. Federal law, specifically the federal Fair Credit Reporting Act, requires only that a creditor have a reasonable expectation that the customer wishes to enter into a credit transaction – federal law doesn’t require a signed application (note that a couple of states have application requirements). If the customer walks onto the lot and kicks some tires, asks some questions about the car and asks for a test drive, the dealer has no reasonable expectation that the customer wishes to enter into a credit transaction with the dealer. But if the customer indicates that he or she wants to finance the car by entering into a retail installment contract with the dealer, bingo! The dealer is entitled under federal law (has a “permissible purpose” using FCRA lingo) to pull the bureau. Many dealers have a business practice of requiring a customer’s signature before they pull a bureau (the signature is also a way of having a permissible purpose), and a laudable and cautious practice it is, but it is not a requirement of the FCRA. Think about it – how do all those national credit card companies sign up all those new cardholders over the phone? You can bet your advertising budget that they aren’t getting customer signatures. You can’t show the customer his or her credit report. Another one on the dealer side – one I heard from Joe Lescota, who was once the Chair of the Automotive Marketing Department of Northwood University – also deals with credit reports. Joe teaches dealers about marketing, and he reports that he has heard over and over from dealers that it is illegal to show a customer a copy
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of the customer’s own credit bureau report. Again – it isn’t so. There’s nothing in the Fair Credit Reporting Act that prohibits a dealer from showing the report to the customer. There was a time, and it wasn’t very long ago, when credit reporting agencies were secretive with credit scores and other credit information. They might well have been concerned with potential legal liability for having incorrect information in their records. Now, however, consumers can get their credit reports, and even their credit scores, from credit reporting agencies. There was a time when credit bureaus included in their contracts with dealers a provision prohibiting the dealer from showing consumers their credit reports, but Congress nixed that practice in situations in which the dealer is taking adverse action against the consumer. If a dealer cannot get financing for a customer due to credit problems, it is okay to show the customer the credit report. In other circumstances, it is still possible credit bureaus could try to prohibit the practice, but I don’t believe as a practical matter that they do so. To be safe, before instituting a practice like this, the dealer should carefully review its contract with the credit reporting agency. That contract might just prohibit such sharing. You probably should delete this last point. Note, though, that dealers now must comply with the risk-based pricing rule, which generally requires them to give approved customers a disclosure of either their credit score or other disclosure. Customers have a three-day right to rescind a car purchase. The last urban myth is one that exists primarily on the customer side, but it is surprising how often you hear it from dealers. This one deals with the idea that a customer has a three-day period within which to rescind the purchase and financing of a motor vehicle. This one just won’t die, and may just be the most frequent misconception in the auto business. There are some rescission provisions hanging around. The federal Truth in Lending Act provides for a three-day right of rescission in certain residential real estate transactions. That one might apply if the customer were granting a mortgage on his or her house as security for the credit being
STREET SMART / December 2017 / January 2018
extended for the car purchase. The Federal Trade Commission also has a rescission provision that applies to certain door-to-door sales, and most states have a door-to-door sales law that gives the consumer a right to rescind. Door-to-door sales rules can be tricky, and dealers who engage in transactions away from their places of business – car shows, tent sales, local mall displays – need to be aware of how they operate. A buyer can, under appropriate circumstances, exercise a right to rescind under the Uniform Commercial Code – but those appropriate circumstances have to exist – the right to rescind is not automatic and it doesn’t have a three-day period. And California has a rescission provision that applies, under some circumstances, when the customer is arranging his or her own financing, and the dealer knows it. But, in a normal, “customer comes to the store car lot” sale financed by the dealer where none of these provisions applies, there is no federal or state statute that provides a threeday right of rescission to a person buying or financing a car. The only rescission law in the country that we are aware of affecting car dealers is one in New Jersey that applies to lease transactions, and it’s a one-day right to rescind that can be waived by the customer. Send us your urban legends. Got any more urban legends from the car business? Care to test them out? Well, jot them in the margin of a $20 bill, and send them along. We’ll do our best to run those alligators out of the sewers. THOMAS B. HUDSON, ESQ. is the Publisher of Spot Delivery a bi-monthly legal newsletter for auto dealers, and the Editor in Chief of CARLAW, a monthly report of legal developments in all states for the auto finance and leasing industry. Spot Delivery and CARLAW are produced by CounselorLibrary. com LLC, 971 Corporate Blvd., Suite. 301, Linthicum, MD 21090. For information, call 410-865-5400 or visit www.creditcompliance. com, www.spotdelivery.com and www.carlaw. com. Copyright CounselorLibrary.com LLC, Original article July 2001, revised October 2017. All rights reserved. First publication rights only to World of Special Finance Magazine. HC/29844.3.
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www.niada.tv
Dealership Operations Out Of The Floppy Era?
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.
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.
· · · · · · ·
digital marketing merchant services dealer management systems underwriting new dealership tips budgeting and expense control employee and wage issues
· · · · · · ·
showroom tips millennial marketing social media alternative profit centers reputation management pricing and finance charges and sooo much more.
Special Thanks to our NIADA.TV Operations Channel Sponsor, DDK Marketing.
SALES MATTERS
BY PATRICK MCMULLEN
ARE YOUR CUSTOMERS SMARTER THAN YOUR SALESPEOPLE? Selling to Today’s Savvy Customers Let’s face it. Customers are getting smarter and savvier. They may or may not be smarter than your salespeople, but often the customer is more informed than your salesperson about the particular vehicle they are looking to buy. This isn’t surprising considering the average consumer conducts 15.2 hours of research before they end up purchasing a used car, according to a 2016 study by Autotrader. From their research, the customer has picked that vehicle from your dealership out of the hundreds or thousands of cars available. So, is it possible they are more informed about the car than your salesperson who has 100 cars on the lot? It’s not only possible, it’s probable. The fact is it’s tough to be an expert on every car on the lot when you have 50-100, or more, vehicles that turn every 30-40 days. That’s not to say the salesperson doesn’t know more about cars in general or even a particular make and model. But remember, every used car is unique – a “snowflake” if you will. Two black 2015 BMW 3 Series may look near identical, but one could have 7,000 miles per model year with a tech package, and the other 20,000 miles per model year with no packages. Are those cars worth the same? Absolutely not. What’s Changed? Retail in general is changing. Fast. Look at stores like JCPenney’s, Macy’s, and The Limited who are shutting down brick and mortar stores to focus on online sales. People often prefer Amazon or other online sites to buy what they need. The car buying process is changing rapidly as well. Gone are the days when customers visited 5-6 dealerships before purchasing a car. This was once necessary to get any information or pricing because it wasn’t available online. People used to kick tires. Now, we like to say they “click” tires. Today, the average customer only visits 1.5 dealerships. That’s because they’ve already done all the research up front. So the deal is now yours to lose. In other words, if you mess it up and they don’t buy from you, they will buy from the next guy. Turn Salespeople into Product Experts It’s clear the buying process has
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fundamentally changed, so we must adapt the way we sell. To level the playing field between today’s savvy customer and your salesperson, you must ensure your salespeople are experts on each and every vehicle on your lot. We call this evidencebased selling – using proof points to communicate the quality and value of every vehicle. The old fashioned way of doing this was to put together big binders, or “brag books,” that showed all the specifics about each vehicle. But this method takes a lot of time to research, print and put together. If your cars are turning every 30-40 days, this can be a huge burden. Besides, who wants to deal with bulky binders? Not the customer. And probably not your salespeople either. To simplify and streamline this process, there are sales enablement tools available that provide information on every vehicle. With these tools, the vehicle information becomes instantly available on your smartphone, tablet or desktop. In addition to basic features of the car such as year, make, model, and mileage, these tools can – and should – provide the following pricing proof points on every vehicle: • OEM packages – and what those cost brand new. • How the vehicle’s price compares to third party assessments such as Kelley Blue Book, NADA and Edmunds values. • Certification and what that includes. • Vehicle history reports. • J.D. Power crash ratings/reviews.
STREET SMART / December 2017 / January 2018
A lot of times, you may not be educating your customer on these things but confirming what they already know. And that in turn builds trust, leading to a greater likelihood they will buy from you. According to a December 2016 Gallup poll, 91 percent of consumers said they don’t trust car salespeople. So you better believe the first time a salesperson says something that contradicts what the customer already knows you’ve lost them. You also want to make sure to be consistent across all touch points. So the information the customer sees on the third party sites is the same they see on your dealership’s website, when they call to speak to the dealer or BDC, and then when they physically show up and you are engaging them on the showroom floor. By becoming product experts and using pricing poof points, you are building quality and value in every sale. It becomes a very different conversation than when you focus on price alone and haggle down the price of the vehicle. At the end of the day, if you follow evidence-based selling tactics, not only are your profits sure to be positively impacted, you can also improve your reputation with customers, and keep your salespeople happy with more closed sales and commissions. It sounds smart to me. PATRICK MCMULLEN is senior vice president of strategy and innovation at MAXDigital, which provides end-to-end technology solutions that enable dealerships to acquire, price, merchandise, and sell inventory with greater efficiency and profitability. To learn more email pmcmullen@maxdigital.com.
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ASSOCIATION NEWS
TIDBITS FROM IIADA Industry Updates Iowa Legislature The Iowa Legislature will convene January 8, 2018, for the 87th Iowa General Assembly. Arbor Day Foundation We have included an article in this issue of Street Smart regarding the Iowa Department of Natural Resources State Forest Nursery and also wanted to share information about the Arbor Day Foundation. For a $10 new membership fee you will receive 10 trees. This group recently set a goal of replacing trees in Texas, Florida and Puerto Rico due to devastation from hurricanes. The project will engage and mobilize partners and will plant and distribute 5 million trees over the next five years. Information about this organization may be found at their website: www. arborday.org. They are located in Nebraska City, Nebraska. Thomas Fuller said, “He that plants trees loves others.” When we clean up around our dealerships, it might be uplifting to replenish areas where we had to remove trees and bushes – and there are several sources in the Midwest to help you inexpensively do just that. Dealer Education Classes for 2018 Five hour dealer education classes will start again in June 2018 and will be held at the community colleges throughout Iowa. Schedules will be included in future issues of Street Smart and will also be listed on the IIADA website: www.iowaiada.com. Your five hour course must be taken before the end of 2018 for you to renew your dealer’s license. Labor Law Be careful – don’t fall for solicitations from scammers requesting you to purchase state and federal labor law posters. Check out the following websites for all of your poster requirements. They are free and in most cases you may print posters, often available in English and Spanish, from the website: • www.dol.gov/general/topicstateresources • webapps.dol.gov/elaws/posters.html • www.iowadivisionoflabor.gov/wage payment-collection-and-minimum-wage What’s your policy regarding liability insurance on sold vehicles? While it is not a dealer’s responsibility to make sure your customer maintains insurance on a vehicle purchased from you, do you take the time to encourage your customer to call their insurance company while completing the paperwork on their
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STREET SMART / December 2017 / January 2018
purchase? Many dealers show the customer the VIN on the purchase agreement and offer to let them use the dealership phone to call their agent to make sure the vehicle is covered with insurance when they leave the dealership. If a vehicle is being financed, the lender would also want to make sure the vehicle is covered. It’s the little things that make your dealership stand out among the others. Rear Seat Occupant Alert Legislation HR 3388 is moving its way through Congress. While this legislation probably will have some major hurdles, at least the concept is on the right track. The bill would require that new vehicles be equipped with a rear seat occupant alert. The legislation is designed to alert parents a child has been left in the vehicle. Some manufacturers are voluntarily including this feature, but some are reluctant to do so. One would think if it is a good idea to remind drivers their gas cap hasn’t been replaced it is even more important to remind them their child could be harmed if left in a hot vehicle. Consumer Financial Protection Bureau Loses Fight to Allow More Class-Action Lawsuits On October 24, the United States Senate voted to strike down a sweeping new rule that would have banned financial institutions, including some motor vehicle dealers from using arbitration agreements with class-action waivers in their contracts. Vice President Mike Pence broke the 50-50 tie with his vote. For years pre-dispute arbitration agreements have been used by financial entities to avoid costly lawsuit. Thought for the Day A great attitude becomes a great mood, which becomes a great day, which becomes a great year, which becomes a great life.
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ACCELERATE
BY GWC WARRANTY
WHY CUSTOMERS REFUSE A VEHICLE SERVICE CONTRACT Setting Yourself Up for Success There’s a lot of blame to go around when an F&I deal falls through. You might put it on the customer who just didn’t have an open mind. Or you could point to the sales department that agreed to a deal that left little room in the customer’s budget. In the end there’s only one place to look when it comes to opportunities in vehicle service contract deals gone bad: the person sitting across from the customer. But there’s good news. It’s an easy problem to fix. Every service contract deal that doesn’t happen is an opportunity to objectively look at why the deal didn’t come to fruition. But boiling things down, there are two main reasons why customers refuse to buy a vehicle service contract: they think they can’t afford it or they don’t see the need right now.
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Focus on key words in each of these objections: Customers think they can’t afford them, and they don’t see the need right now. What’s positive here is the person sitting across the desk from the customer in the F&I office has control over both of these lines of thinking. All it takes is a few questions for you to show the customer what they really can’t afford is a major repair bill and while the vehicle is in great shape now, there are realities with used cars they should prepare for. Almost every customer will object to paying more for a VSC. The key here is getting to the bottom why. Often, it’s a simple misunderstanding of what common repairs cost. Always ask price-conscious customers what they think a major repair costs. Regardless of their answer, you have an opportunity to position the value of a service contract. If their response is too low, you can show past repair orders and ground the customer in the reality of these costs. If the response is on point or on the higher end, you can focus on how such a repair impacts a monthly budget while asking the customer if that repair fits within their monthly expenses. When customers don’t see the need for a service contract, it’s usually due to
confidence they have in the vehicle they’re buying. Most car buyers expect to be purchasing a vehicle in good working order. So why would they need protection on repairs? The reality here, especially with used vehicles, is that components are more likely to break down as they age. Ask a customer about their level of understanding of factory warranties, if the vehicle still qualifies. Here is your opportunity to showcase that factory coverage covers many parts least likely to fail. But a service contract covers many of the components likely to break down with wear and tear. Just like your grandparents visit the doctor more often, used vehicles will visit the shop for smaller issues more often as they age, so it’s important to be prepared for this fact. Getting to the root of why your customer is refusing a service contract is where your opportunities reside. Most of the time, customers are excited to drive off in their new car or they simply don’t understand many of the intricacies of owning a vehicle and what it costs. Take this opportunity to act as a consultant. Ask the right questions and be prepared with the answers, and you’ll set yourself up for more success in the F&I office.
December 2017 / January 2018 / STREET SMART
13
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
Here’s our monthly article on legal developments in the auto sales, finance and lease world. This month, we’re covering actions of the Consumer Financial Protection Bureau, the Federal Trade Commission and the Justice Department. As usual, this month’s article features our “Case of the Month” as well as several CFPB actions. Why do we include items from other states? We want to show you 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 that this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you, or if you have questions. This Month’s CARLAWYER Compliance Tip Consider an advertising checkup. Both federal and state enforcement agencies are zeroed in on ads like never before. The level of compliance by dealers with the ad laws and regulations is so low that ad claims are really low-hanging fruit. The claims are also very easy to prove – no “he said, she said” involved, just present the court with the ad and the law and the case is over. The monetary penalties for ad violations can be high, and it isn’t unusual for at least the federal agencies to require years of expensive ad monitoring as a condition of settling cases. Some prevention could go a long way. FEDERAL DEVELOPMENTS FAQ help from the FTC: On September 26, in response to a request from the National Automobile Dealers Association, the FTC issued guidance to auto dealers answering frequently asked questions about compliance with the revised Used Car Rule and the revised Buyers Guide. The FTC revised the Used Car Rule in November 2016. The guidance notes that additional information about complying with the Used Car Rule can be found in the FTC’s Dealer’s Guide to the Used Car Rule (https://www.ftc.gov/ tips-advice/business-center/guidance/ dealers-guide-used-car-rule) and by visiting the FTC’s webpage for auto dealers. Ten-hut! On September 25, the FTC launched a web page highlighting its new Military Task Force, aimed at identifying the needs of military consumers and developing initiatives to empower servicemembers, veterans, and their families, including through
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law enforcement actions. The Task Force, a cross-section of agency representatives, is part of the FTC’s effort to provide resources for the military community. In 2016, there were more than 100,000 consumer complaints from servicemembers, their dependents, military retirees and veterans, according to the FTC’s data. About two-thirds of the complaints were from retirees and veterans. Top complaints by category were impostor scams, identity theft, and debt collection. For more i nformation, visit ftc.gov/militarytaskforce. DOJ announces SCRA enforcement actions: On September 18, the DOJ announced that it obtained a $907,000 settlement with CitiFinancial Credit Company, as successor in interest to CitiFinancial Auto Corporation, resolving allegations that it violated the Servicemembers Civil Relief Act by repossessing vehicles it allegedly knew were owned by protected servicemembers without first obtaining required court orders. The settlement covers vehicle repossessions between 2007 and 2010. The SCRA requires a court to review and approve any repossession if the servicemember obtained financing for the vehicle and made a payment before entering military service. The court may then delay the repossession or require the creditor to refund prior payments by the servicemember before repossessing. The court may also appoint an attorney to represent the servicemember, require the creditor to post a bond with the court, and issue any other orders it deems necessary to protect the servicemember. DOJ alleged that by failing to obtain court orders before repossessing vehicles owned by protected servicemembers, CitiFinancial denied servicemembers their right to obtain a court’s review of whether their repossessions should be delayed or adjusted to
STREET SMART / December 2017 / January 2018
account for their military service. On September 27, the Justice Department announced that Westlake Services LLC and its subsidiary, Wilshire Consumer Capital LLC, have agreed to pay $760,788 to resolve allegations that the companies violated the SCRA by repossessing 70 vehicles owned by servicemembers without first obtaining the required court orders. Westlake, d/b/a Westlake Financial Services, is an auto finance company specializing in buying and servicing subprime and near-subprime retail installment sales contracts. The subsidiary, originates and services vehicle title loans. During its investigation, DOJ found that Westlake and Wilshire had failed to adopt policies and procedures necessary to ensure that their motor vehicle repossessions complied with the SCRA. The agreement requires Westlake and Wilshire to pay $10,000 to each of the 70 affected servicemembers, plus any lost equity in the vehicle with interest. Westlake and Wilshire also must repair the credit of all affected servicemembers, pay a $60,788 civil penalty to the United States and determine, in the future, whether any vehicle it plans to repossess is owned by an SCRA-protected servicemember. If so, Westlake and Wilshire will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also provides that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans. CASE OF THE MONTH Dealer dodges insurance claim: Barry Stein bought a used Toyota Camry from Kenny Ross Toyota, Inc. During the sales transaction, Stein provided his car insurance card to a representative of Kenny Ross. The insurance information was included in the sales agreement for the car. The sales agreement also included an integration clause, providing that the sales agreement encompassed the complete agreement between the parties and superseded any prior discussions or agreements.
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TOM (THUDSON@HUDCO.COM) is of Counsel and NIKKI (NMUNRO@HUDCO.COM) is a partner 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. © CounselorLibrary.com 2017, all rights reserved. Single publication rights only, to the Association. (10/17). HC# 4835-8311-1761
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MIDWEST AUTO AUCTION DIRECTORY
Stein had a car accident that resulted in injuries to James Hohman. Stein’s insurer, Mutual Benefit Insurance Company, notified him that the Camry was not a covered vehicle under his policy. As a result, Hohman’s insurance company paid Hohman on an uninsured motorist claim and sued Stein. Stein settled the lawsuit with Hohman’s insurance company. Stein then sued Kenny Ross for negligence, negligent misrepresentation, breach of contract, and violation of the Unfair Trade Practices and Consumer Protection Law, all of which were based on Stein’s allegation that Kenny Ross promised to add the Camry to Stein’s existing insurance policy. Stein also argued that the integration clause in the sales agreement did not bar the introduction of parol evidence to support his claims. The UTPCPL claim was dismissed based on preliminary objections. Kenny Ross then moved for summary judgment. The trial court granted the motion, and Stein appealed. The Superior Court of Pennsylvania affirmed. The appellate court noted that Section 1318 of the Pennsylvania Motor Vehicle Code requires a dealership to verify financial responsibility before the issuance of temporary registration on a newly purchased vehicle. A dealership must determine that the applicant has the appropriate financial responsibility by examining one of the applicant’s relevant insurance documents for a vehicle that is traded in for the new vehicle or another vehicle owned by the applicant. The requirement to examine one of these documents does not require the dealership to verify the information submitted unless it has reason to believe the document is fraudulent. In this case, Kenny Ross properly verified the existence of Stein’s insurance policy by examining Stein’s insurance documents for another vehicle owned by Stein. The appellate court noted the sales agreement contained no promise to add the Camry to Stein’s existing insurance policy with Mutual Benefit. The sales agreement merely contained an insurance section that listed Stein’s existing insurance policy with Mutual Benefit. Because the insurance section did not include any language to suggest Kenny Ross’s assumption of Stein’s duty to obtain insurance for the Camry, there was no ambiguity to allow introduction of parol evidence to support Stein’s claims. The appellate court reiterated that Kenny Ross’s only duty was to ensure that Stein had an existing insurance policy, which it fulfilled. How familiar are you with dealer responsibilities for insurance in your state? Time for a brush-up, perhaps? Stein v. Kenny Ross Toyota, Inc., 2017 Pa. Super. Unpub. LEXIS 3027 (Pa. Super. August 9, 2017) So, there’s this month’s roundup! Stay legal, and we’ll see you next month.
135 AUTO AUCTION
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: Kevin Rhoads Tuesday 9:30 a.m.
ADESA MINNEAPOLIS
18270 Territorial Road Dayton, MN 55369 763-428-8777 763-428-8701 General Manager: Jay Fahrendorff 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: Chad Anderson 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 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: Victor Ferlaino 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: Tom Saldutte 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: Scott Maybee 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: Steve Robinson 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: Jason Blake
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.
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.
December 2017 / January 2018 / STREET SMART
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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
8% DISCOUNT TO ALL IIADA MEMBERS
AUTOJINI.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
Dealer Management Software 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
GLOBE ACCEPTANCE INC
Websites for Dealers Contact: Syed Azam 310 Main Street Ste 201 Ames, IA 50010 Phone: 515-232-2024 E-mail: syed@octadyne.com
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
CITIZENS COMMUNITY CREDIT UNION
GREATER IOWA CREDIT UNION
2012-1ST AVENUE SOUTH FORT DODGE, IOWA 50501 Phone: 515-955-5524, Ext. 202 Fax: 515-955-8241
CU DIRECT (CUDL)
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
CYCLONE AUTOMOTIVE TRAINING INC.
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
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
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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.
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
PREFERRED WARRANTIES, INC. 200 Pinebrook Place P.O. Box 278 Orwigsburg, PA 17961 Website: www.warrantys.com Iowa contact: Larry Bohlen Cell: 515-322-6397 Fax: 1-877-233-0298 Email: lbohlen@warrantys.com
REYNOLDS & REYNOLDS INC.
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
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
STREET SMART / December 2017 / January 2018
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IIADA and NIADA Membership Protect your business through IIADA and NIADA’s legislative monitoring efforts at the state and federal level FREE publications – Street Smart and Used Car Dealer magazine Certified Master Dealer Program through NIADA/ Northwood University Garage insurance; health and other types of insurance Retirement program; prescription drug savings Conventions, trade shows and dealer training meetings and seminars Discounts on credit card processing
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8% Discount on Auto Owners Insurance for IIADA members Dealer Awards Scholarships for your children/grandchildren and your employee children $2000 in auction fee discounts from Midwest auto auctions – IIADA Auto Auction Coupon Card Lodging, car rental and restaurant discounts NIADA-TV – 24/7 Telephone assistance to IIADA members and updates on rules, law and regulation IIADA Newsletter
December 2017 / January 2018 / STREET SMART
17
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.
STREET SMART / December 2017 / January 2018
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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! E R E H IT’S
THE HIGHER C S V E G A E L I M S R E L A E D M PROGRA R O F G N I T I A W HAVE BEEN
. D E V I R R A HAS INTRODUCING THE NEW PROTECTIVE AUTO CARE PLAN Higher mileage vehicles need a higher mileage protection plan. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans
STAY FOCUSED ON YOUR CUSTOMERS Visit protective-acp.com
or call 866 924 7513 to learn more.
and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. The plan includes other benefits such as rental car reimbursement and emergency roadside service providing true peace of mind.
Protect Tomorrow. Embrace Today.™ VEHICLE PROTECTION PLANS | GAP COVERAGE | CREDIT INSURANCE | LIMITED WARRANTY PRODUCTS DEALER PARTICIPATION PROGRAMS | F&I TRAINING | ADVANCED F&I TECHNOLOGY Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Protective Property & Casualty Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.