IL_0511_O by NIADA

MAY/JUNE 2011

DEALER’S EDGE ILLINOIS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA CERTIFIED PROGRAM GROWS ALSO “Swede” Clark Honored with IIADA Lifetime Achievement Award PLUS Facebook 101

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INSIDE

Need Easy Training Opportunities For Your Dealership?

MAGAZINECONTENTS 6 “Swede” Clark Honored with IIADA Lifetime Achievement Award 12 NIADA Certified Program Grows 20 Facebook 101

Check out the new Education and Training Consortium (ETC) to watch our list grow. The programs listed on this site have met stringent criteria that ensures that the program or product: s s

NEW EDUCATION SESSIONS FROM THE CONFERENCE OF AUTOMOTIVE REMARKETING ARE NOW RUNNING ON NIADA.TV

Several educational sessions from the recent Conference of Automotive Remarketing (CAR) are now up and running free of charge on NIADA.TV.

Over 12 sessions from the recent conference will be posted to www.NIADA.TV throughout April and May, so check back often over the next few months. These sessions will be posted in NIADA.TV’s “Remarketing” Channel as well as in the “New Programs” Channel. Get caught up on the latest in “Remarketing” at your leisure 24/7 by visiting to niada.tv.

ADVERTISERSINDEX AFC – Automotive Finance Corporation........11 AutoTrader.com ............................ Back Cover Cars.com . .................................................. 9 Chase .......................................................17 Chicago Car Auction . ................................. 5 Dyer Auto Auction .................................... 19 Insurance Auto Auctions ............................ 14 Lohman Companies . ................................... 7 Manheim.com . .................. Inside Front Cover Smart Auction . ................... Inside Back Cover United Acceptance . ................................... 13 Western General / Protective ....................... 3

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV NIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM.

THE DEALER’S EDGE IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 760065203; 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 THE DEALER’S EDGE, THE ILLINOIS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION, OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF IIADA OR NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT © 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED. VISIT THE NIADA WEB SITE AT WWW.NIADA.COM. STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITOR Mike Harbour • mharbour@niada.com PRODUCTION MGR. Jacob Kerns • jacob@niada.com ART/PRODUCTION MGR. Christy Haynes • christy@niada.com PRINTING Nieman Printing

DON’T FORGET TO VISIT OUR WEBSITE FOR IMPORTANT INFO: WWW.IL-IADA.COM

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Responds to dealership needs of today; Demonstrates history of effectiveness; Comes with dealer recommendations; and Offers professional presentation of goods and services.

Just go to NIADA.com’s Education page and follow the links to ETC or contact Georgia Brown at 800-682-3837 for more information.

Used Auto Prices Reduced After 30 Days More than 50 percent of used vehicles listed for more than 30 days have at least one price drop, according to a study released in late February by leading online automotive community CarGurus. com.

Think about the top concerns your customers have when shopping for a used car: previous damage, maintenance, ownership history, and of course, price. Tools like Carfax Vehicle History Reports are readily-available through various mobile devices to verify this important information

and bid with confidence. Having your mobile device handy helps you tie it all together quickly and successfully acquire the right cars for your lot. Today’s mobile devices provide access to information that brings transparency and process effi ciency to dealers. The possibilities mobile is opening up for our industry are truly extraordinary – and in the current economic climate, leveraging new and user-friendly technology is key to moving more cars and saving money in the process.

BOARD OF DIRECTORS Chairman Randy Crase Crase Auto Connection 25355 E. Ames St. Channahan, IL 60410 815-467-1807 randy_crase@comcast.net

Treasurer Mark Alcorn Carlyle Auto Sales 1708 Broadway Rockford, IL 61104 815-397-5010 carlyle2005@aol.com

President Gordon Tormohlen Tormohlen’s Good People Automotive 1800 S. Ihm Blvd. Freeport, IL 61032 815-232-5543 cookiebar@mwci.net

Secretary Eric Nelson Nelson Automotive Inc. 1801 S. Busse Mt Prospect, IL 60056 847-439-2277 eric@heycars.com

Vice President Lori Chignoli-Cora Chignoli Auto Sales 1850 Essington Road Joliet, IL 60485 815-439-2233 lori@chignoli.com 1st Vice President Anthony Ferraro Payless Motorsport 13449 S. Pulaski Road Robbins, IL 60472 708-388-2300 agfauto@yahoo.com

Directors: Melanie Brown Chicago Car Auction 2731 Belvidere Road Waukegan, IL 60085 847-662-0100 melanie@chicagoauction.com Robert Doppelt Anything With Wheels 2296 N. Rand Road Palatine, IL 60074 847-776-9007 belllease1@aol.com

Alex Tovstanovsky Prestige Motor Works Inc. 8959 Hanslik Court Naperville, IL 60564 630-780-6439 alext@myprestigecar.com Kim Vanderwall Manheim Arena Auto Auction 200 W. Old Chicago Road Bolingbrook, IL 60440 888-273-6222 kimberly.vanderwall@ manheim.com FOR INFORMATION ON HOW TO BECOME A MEMBER OF IIADA, PLEASE CONTACT BRUCE EKLUND AT 800-987-6627 OR LILCHEEPER5@AOL.COM.

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D. M . “SW E DE ” C L A RK H O N O RE D

WITH IIADA LIFETIME ACHIEVEMENT AWARD

IIADA recently posthumously honored Dwight “Swede” Clark with its first ever Lifetime Achievement Award.

Clark, who passed away in February, began his automotive career polishing cars in his hometown of Albia, Iowa. After serving in the U.S. Army, he married and moved to Rockford, Ill., where he opened his first used car lot in 1946. Over the course of his 60-year career, Swede founded more than 20 businesses

CNW

including Courtesy Motors, Parkway Toyota, Courtesy Subaru, Courtesy Olds/ Datsun, Falls Lincoln Mercury, Garland Chrysler Plymouth, Forrest Hills Motors, Courtesy Aircraft, Clark Properties, Service Insurance, Magic Acceptance Company, Clark Broadcasting, A-Mar Manufacturing, Mountain States Auto Auction and Greater Rockford Auto Auction. A leading entrepreneur in Rockford, Clark was the second person in Illinois to do live TV commercials. He also was a master pitchman and hosted and sponsored Breakfast with Swede and Courtesy Playhouse Movies. Clark even had his own comic strip in the local paper. Super Swede was an ordinary car salesman who became a super hero when a key was inserted into his ignition belt and turned on! Customers fondly remembered how Mark ‘em Up Clark marked his cars up just a bit, and how every vehicle featured like new tires, but most remembered Clark’s gentile personality. He had a unique ability to make a friend

out of almost everyone he met. Clark was someone who could see opportunity in everything. “He worked hard,” said Ed Mecum, who now owns Speedway Auto Mall in Machesney Park, but started working for Clark 40 years ago. “What I really admired about him was how he treated people. He was the owner, but he treated me like a partner. He was like that with everyone.” Clark is survived by wife Donna and sons Mark and Steven Clark. He was preceded in death by daughter Lori and brothers Jack and Bill Clark. For his valuable and significant contributions to the automobile industry in Illinois, IIADA proudly recognizes D. M. “Swede” Clark as a Premier Automotive Entrepreneur. Having served the auto industry for more than 60 years as a dealer and auction founder, Clark set an admirable example for many to follow because of his dedication and commitment to entrepreneurship, his community, his fellow dealers and the industry.

Dealers Are Finding Inventory Short on Cars

In what could be stemming from gasprice anxiety, dealers’ used-vehicle inventory on hand appears to be changing. And the shift that CNW Research spotted could possibly end up being “troubling” for dealers. What, exactly, did CNW see?

Basically, CNW noticed instead of there being a shortage of trucks within dealership inventories, dealers are now finding that their lots are short on cars. Overall, used-vehicle days’ supply in March was estimated to be 48.27 days. CNW noted used vehicles are available, but suggested this possible shift in the mix of cars and trucks may be troubling for dealers. In recent years, CNW explained, truck demand has been stronger than car demand. “Beginning in February, though, the trend changed,” said Art Spinella, president of CNW. “Of inventory on hand, cars now represent about 92 percent of days’ supply while trucks have climbed to over 110 percent. “If this were a one-month snapshot, it could be written off as merely an anomaly,” he added. “And it still may not be reflective of a long-term

trend. But it is worth noting.” He went on to suggest a likely impetus for the change is concerns about gas prices may finally have hit home and sent people to the car side. “While this will have little impact on casual sales, it will definitely affect franchised and independent dealerships who now have to beware of overloading lots with trucks or being forced to lower truck prices to facilitate a sale,” he said. CNW Projects Robust March With March used-vehicle sales projected to show as high as a 6-percent year-over-year spike, the first quarter of 2011 is likely to signal some significant progress for the used side of the market. Pushed by looser credit, CNW is projecting used sales in March will show anywhere from a 5.5-percent to a 6-percent improvement from the 2.39 million used sales in March 2010. “That would make the opening quarter of 2011 the best since 2008 – 6.336 million versus 6.63 million three years ago,” Spinella noted. CNW also looked at sales per outlet data for

independent stores in February and discovered this average increased by double digits. Specifically, the company found independents moved an average of 17.6 vehicles per outlet during February, which marks a 15.7-percent hike from the 15.2 unit-per-store average from a year ago. “In fact, because of the decline in the economy in 2008 and 2009, the independent dealer body shrunk dramatically,” Spinella said. “With an economic uptick and the availability of inventory, there are more independent outlets today. Outlook: a better profit picture for independents.” Web Trends Another area of the used market CNW examined was used-vehicle sales in the online arena. The company found the sales rate of Internet vehicles came in at 26.9 percent during February. A year ago, it was at 23.9 percent. “The 12.7-percent boost represents a near 90,000 unit increase,” Spinella said. “Total inventory offered on the Internet is four percentage points larger than last year.”

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PRODUCT DISCOUNTS FOR NIADA MEMBERS NIADA members can save up to 29 percent on select FedEx® shipping services. For more information or to enroll in this program, visit www.1800members.com/niada or call 800-6362377 (8 a.m.–6 p.m. Eastern, Mon.-Fri.).

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ENTER SITE AND CLICK ON NEW PROGRAMS

enting a car just became easier and economical with R the new Thrifty Car Rental Discount Program for NIADA members. Visit www.thrifty.com/?iata=00227148&Promo tionCode=NIADA to receive a 5 percent discount off Thrifty’s already low rates anywhere or any size vehicle in the U.S. A 24-hour advance reservation is required and reservations can only be made through this URL or via the link on the NIADA website. Offer is valid for travel until Dec. 31, 2011. AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States with over 4,350 stores across 48 states, the District of Columbia and Puerto Rico. NIADA members have access to AutoZone’s “hotshot” delivery program including discounts on more than 750,000 product level SKUs in over 70 distinct product categories. NIADA members have our expert field management team and experienced Territory Sales Managers who every day do whatever it takes to help customers deliver the highest level of quality service, manage their shops efficiently, train their technicians and maximize their profits. For more information, contact AutoZone’s Sales Center at 1-866-727-5317 or sc53@autozone.com

NADA Guide Analyst: Used Auto Prices Continue to Surge from Crisis in Japan Prices of fuel-efficient, used autos – both at auction and at the retail level – continue to feel the ripple effect of the March 11 earthquake and tsunami in Japan.

“The dramatic increase in wholesale vehicle prices indicates that buyers are expecting the supply of small, fuel-efficient cars to dwindle even more because of the crisis in Japan and gas prices that continue to rise,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide. “In response to this trend, NADA values for April 2011 reflect large increases in most car segments compared to March 2011,” Banks added. “We’re basing our adjustments on the current market conditions and the expectation that these price increases will continue during the next few months.” From March 11 through March 28, for example, auction prices for two- to five-year-old compact cars, such as the Honda Civic, Toyota Corolla and Ford Focus have increased by about 11 percent compared to February. Auction prices for intermediate-sized cars, such as the Nissan Altima, Honda Accord and Chevrolet Malibu have increased by about 8.5 percent from March 11 through March 28 compared to February. Looking at the entire used-vehicle market from March 11 through March 28 compared to February, Banks said overall auction prices across all vehicle segments have increased by about 5 percent, which is higher than the expected seasonal improvement of 3 percent. The crisis in Japan and the subsequent damage to the Fukushima nuclear plant have caused several auto assembly and parts plants to suspend operations, interrupting the supply of new vehicles and parts for export to the U.S. market. “The impact of the crisis in Japan will have its most significant effect on the global auto industry during the next three months, unless Japan is able to quickly restore consistent power,” Banks said. “The bottom line is that price increases—for used cars in demand—are here to stay for the short term.”

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SUMMERTIME AND THE SELLIN’ IS EASY

BY A N DY FR I E D L A N D E R

people are out there buying cars in the heat of summer, even in places like Hinesville and Tyler, Texas, were the temperature regularly climbs above 100 in July and August. So a dealer who wants to snag some of that business needs to play it cool – with his customers and his inventory – even when it’s broiling outside.

It gets hot during the summer in south Georgia. Real hot. How hot, exactly?

“So hot our sales people don’t even want to get out there,” said Larry Mannion of M&M Motors in Hinesville, Ga., about 35 miles southwest of Savannah. “I’m talking really hot, you know, like that 100-degree index. I usually take the attitude that if someone is on the lot looking for a car when it gets like that, he must need a car pretty bad, because it’s so hot. I mean, who wants to be out there?” Nevertheless, people are out there buying cars in the heat of summer, even in places like Hinesville and Tyler, Texas, were the temperature regularly climbs above 100 in July and August. So a dealer who wants to snag some of that business needs to play it cool – with his customers and his inventory – even when it’s broiling outside. That means little touches like plenty of chilled water or soft drinks available for potential car buyers, or running the air conditioning for a few minutes to cool off the car before inviting customers in for a test drive. It means checking the coolant level and the AC of every car on the lot before a customer wants to look at it. It means being prepared for the inevitable heat of summer. “One thing you have to remember is our business is all emotional,” said Joe Lescota, chairman of the Automotive Marketing department at Northwood University in Midland, Mich., and the instructor for the NIADA’s Certified Master Dealer program. “It’s a very psychological business. You have to kind of cast the logic out the door a little bit and think about the consumer and the consumer’s experience. Think about how you can make the customer experience much more enjoyable.” In the summer, that’s all about cool, from the look of the offices – fresh paint in light colors – to placing misters outside, an inexpensive touch that can lower temperatures 20 degrees or more on a hot day. “Hook them up to a garden hose and they can blow a cool mist over where customers will be,” Lescota said. “Think about creating

a psychologically cool environment. Have water for the customer, but not just in a water cooler. I like a big bucket filled with ice, where you can actually see bottles of water chilling. That’s psychologically refreshing. Let the customer stay inside as much as possible and provide a huge washtub full of ice and water or soft drinks.” It doesn’t hurt to keep the cars cool, too. Lescota suggests investing in a large tent or canopy to put over some of the inventory, protecting it from the sun and, in climates where sudden hailstorms can pop up, hail damage. “Think about putting as much of the inventory as possible under one huge tent,” he said. “I really encourage dealers to get a professional tent or awning company. If I’m looking at lots and one guy’s inventory is out in the sun baking all day, and another’s is in the shade, I can see the difference.” And dealers shouldn’t be afraid to get the word out about their cool touches through their advertising. After all, none of those ideas will bring in customers who don’t know about them. “Dealers not only need to do these things – they need to tell the public about it – advertise it,” Lescota said. “‘Our vehicles are in the shade,’ or, ‘Come on in for some icecold water.’ Let people know it’s ice cold. Remember the old days when movie theaters used to advertise ‘ice-cold air conditioning?’ There is a psychological response to that.” That is also true of the dealership’s grounds. Summer is prime time for weeds, those persistent pests that seem to constantly be growing in cracks in the pavement. “You have to look at your property, and that’s an everyday thing, too, because weeds can pop up overnight,” Lescota said. “We have a tendency to look past those things.” The one thing that can’t be looked past is the temperature, which can climb to 130 degrees inside a closed car in hotter climates. If a customer wants a test drive, making him get into that blast furnace isn’t likely to sell him on a vehicle. CONTINUED ON PAGE 16

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N IADA/NAC CERTI FI ED PRO G R A M

GROWS WITH NEW PA R T N E R S H I P S, E N H A N C E M E N T S

BY CHRISTINA SCHRANK

To give independent dealers the ability to compete with franchise dealers offering manufacturer certified pre-owned vehicles, NIADA and NAC (formerly National Auto Care) last year created NIADA Certified.

The program includes comprehensive 12-month, 12,000-mile warranty coverage with no deductible, 24-hour roadside assistance, towing, rental and more. In November 2010, the program underwent significant changes to incorporate more value for dealers and even higher satisfaction for customers. NIADA Certified added additional team members experienced in the used vehicle market to ensure processes were put in place that would support dealer certified success. Today, the program is supported by an active training calendar with contribution from strategic partners and best practice review. “Certified used autos has become its own listing category. Between new and used, the NIADA Certified program levels the playing field and allows independent dealers the opportunity to compete for those consumers looking for certified inventory,” said Greg Levi, NIADA Certified strategic relationship director. “The program allows independent automobile dealers the opportunity to create their own competitive program.” Subject to a comprehensive inspection, NIADA Certified vehicles include a 12-month, 12,000-mile limited warranty with a zero dollar deductible. Dealers will now be supported through ongoing training and best practices review by the NIADA Certified team. Better yet, even

with the increased warranty coverage, the same eligibility guidelines for NIADA Certified qualify, including most 10-yearold or newer vehicle models with less than 100,000 miles. “The independent market needed an answer to the manufacturers’ certification program and the NIADA certification program lives up to the promise,” Levi said. The positive consumer experience is assured by repairs that can be made at any licensed repair facility and with a program that’s supported by 25 years of administration experience. After a vehicle has passed an inspection that meets the program’s certification standards, it’s then registered with NIADA Certified through our unique online Express Lane™. Following registration, the dealer has access to a free copy of an AutoCheck® vehicle history report, the ability to print a compliant buyer’s guide, print a clean and professional inspection checklist which can be used in either the showroom or online, plus the capability to export certified inventory to third party portals including Auttr Motors, eBay® Motors, and EVERYCARLISTED. com®. These exports provide the ability to advertise the vehicle as NIADA Certified and offer it with a limited warranty that begins when the vehicle is retailed to the consumer. These many new partnerships with third party portals, especially its newly announced affiliation with eBay® Motors, allow the dealer’s NIADA Certified inventory to be discovered with a search for certified inventory alongside manufacturer results. NIADA Certified is the first independent certification program to be recognized with the

manufacturer programs. And, because our system is Web-based, all of this – and much more – is accessible to dealers in just a few simple clicks. The program coverage enhancements have allowed us the opportunity to grow and add to our strategic partnerships, provide above-and-beyond support and service and give dealers a way to offer consistent value to consumers and solidify relationships with lenders. NIADA Certified most recently partnered with eBay® Motors as one of our program’s inventory exports. Each program dealership will have its NIADA Certified inventory exported to eBay® Motors classifieds, providing a free listing to be displayed to all within a 200-mile radius of each dealer. Also, NIADA Certified recently announced a partnership with OPENLANE, an online auction company which now offers program listings to dealers on Open Auction. This new listing acknowledgement gives the NIADA Certified brand additional creditability and provides an option to those dealers who want to wholesale inspected vehicles which meet the program’s certification standards. “These many new third party online portal partnerships are vital to the success of our NIADA Certified program,” said Michael Linn, CEO of NIADA. “The recognition and powerful marketing arm these online portals provide is invaluable to all of the dealers who participate in the program. It’s like free advertising, and research proves over and over again that online listings that promote certified vehicles sell faster and for a larger profit.” CO NTI N U E D O N N E X T PAG E

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The NIADA Certified team also has focused efforts on building partnerships with lenders in order to create incentives and discounts on funding for NIADA Certified vehicles. Recently, NIADA Certified announced Columbus Finance, Inc., a lender serving the central Ohio market, agreed to give dealers an additional 10-percent advance (up to $1,000) and will offer customers one percentage point off program rates when purchasing a NIADA Certified vehicle. The team also is working with additional lenders to put together similar partnerships and lender opportunities to dealers across the country. “As our NIADA Certified program continues to grow, so will the lender partnerships associated with it, at the local, statewide and national levels,” said Linn. “Over the past four years, NIADA has been highly successful at bringing lenders and dealers together, and the NIADA Certified program is another great opportunity to expand on great relationships like the one locally that was just announced in Ohio.” The NIADA Certified team is excited about the momentum that’s been building

during the first quarter of 2011. Today, there are 120 dealers participating in the program in 30 states around the country and the number is growing weekly. Those dealers are enjoying the benefits of the NIADA Certified team’s support before, during and after initiation into the program. Now, after signing on to participate in the free program, dealers attend an online implementation webinar hosted by our NIADA Certified team. The webinar is interactive and allows our team to review the program, tools, best practices and, most importantly, how to get the program started within a dealership. The training is available for both the dealer and their personnel every week. Once implementation training has been completed, marketing materials are sent to the dealership and our training team follows up to ensure the dealer has all the information and tools needed to succeed. Our team then consistently communicates with each dealer on items such as program enhancements and additional training opportunities and continues to review best practices.

NAC is the administrator of the NIADA Certified program. The warranties are backed by an A-rated insurance carrier with more than $26 billion in assets, a figure that gives dealers with the peace of mind provided only by a fully insured program. There is zero dealer liability for repairs that fall under the warranty period. All dealers on the program receive a contractual liability insurance policy issued directly from the insurance company. For more information on NIADA Certified, call 800-840-2567 or visit www. niadacertified.com. Don’t forget to visit often, as the site is constantly updated with new and exciting information, announcements and program enhancements. NIADA Certified also can be followed on Facebook, Auttr and Twitter. CHRISTINA SCHRANK

is the vice president of marketing for NAC and a 15-year veteran of the auto industry. NAC has been developing innovative, value-based aftermarket products and competitive service agreement programs for automotive, power sports, and recreational vehicles for almost 30 years.

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NIADA and Constellation Automotive Solutions Announce Training & Education Partnership The National Independent Automobile Dealers Association and Constellation Automotive Solutions are pleased to announce an education and training resources partnership designed for NIADA members. Constellation will provide comprehensive education and training solutions for the Buy Here – Pay Here and Lease Here – Pay Here dealerships, together known as the “Dealer Controlled Financing (DCF) industry”. These educational programs will include best

practices training with solutions for maximizing sales, collections and profitability through seminars, online training on NIADA-TV and articles in NIADA publications. Partnered with NIADA, Constellation will add a Certified DCF Dealer option to NIADA’s Certified Master Dealer Program®. “I was looking to develop a partnership with an entity that has good, experienced trainers that NIADA could use as our BHPH and LHPH training solution”, said Michael Linn, CEO

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of NIADA. “It was important to me to offer quality education and training to our members. Constellation Automotive Solutions was the perfect fit for us.” Linn continued, “Their training materials are superb and their trainers, Al Mosher and Don Miller, have extensive knowledge and experience in the Buy Here – Pay Here and Lease Here – Pay Here industry.” “NIADA is the leading voice for independent auto dealers in the country”, said Robert Lowenstein, Business Manager for Constellation. “It is an honor to be able to serve its 20,000 members and help NIADA expand its educational resources for dealers engaged in Dealer Controlled Financing.” Constellation will provide a number of valuable services to NIADA members, including: National DCF Monthly Composite The DCF Monthly Dealer Composite provides the BHPH/LHPH dealer a four page report reflecting their dealership’s business results from the previous month, as well as year-to-date. It compares their operation with the averages, minimums and maximums of other BHPH/LHPH dealers across the nation. Also included are 12 months of historical figures and graphs which can aid dealers with projections and spotting dangerous trends. Convention & Expo Seminars Constellation, in consultation with NIADA, will be responsible for providing educational opportunities concerning dealer controlled financing at the NIADA Convention & Expo every year. This will kick off at this year’s convention June 20th – 23rd in Las Vegas with a seminar titled “7 Keys to Success in Dealer Controlled Financing”. That session will include valuable information on 7 key topics ranging from business models to inventory to collections and will feature tips from a panel of successful dealers. DCF Manager Training Course The Manager Training Course is a comprehensive, 3-day class involving all aspects of the day-to-day operation of a DCF dealership. Techniques and guidelines are taught to help you better utilize your inventory and personnel, improve your sales process, establish better and more consistent underwriting, effectively collect what is owed you, better manage your delinquency and stay in compliance with laws and regulations affecting our industry. Attendees will come back to the lot better equipped to consistently produce results to improve their dealerships bottom line. This partnership between NIADA and Constellation Automotive Solutions opens up a wealth of new educational and training opportunities for NIADA members. Constellation’s consultants have been providing industry-leading training and education for DCF dealers for well over a decade and are excited about this opportunity to expand its services and aid NIADA members with all their needs in the Buy Here – Pay Here and Lease Here – Pay Here arenas. NIADA and Constellation urge all NIADA members to explore how these new programs can benefit them and help them improve their businesses.

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“We’ll go out and crank the vehicle and bring it up front for them and sit inside and talk to them for awhile and let the vehicle cool off,” said Brian Pool, co-owner — along with his father, Scott — of Autohouse Auto Finance in Tyler, Texas. “Let the AC run.” Lescota is all for that. He also said rolling the car’s windows down on hot, sunny days can keep the interior from getting too bad in the first place. Sales consultant Jan Kelly of Kelly Enterprises said having windows tinted can help, too. “If it gets too hot in there, when I get in that car, I’m not thinking, ‘Wow, this is a nice car.’ I’m thinking, ‘I hope I don’t get a thirddegree burn,’” he said. “And of course, don’t just throw a customer in the darn car. Let the salesperson crank the car and cool it down, so when the customer gets in the car, it’s an ‘Ahhh’ feeling as opposed to an ‘Ow, this hurts’ feeling.” Jim Coury, owner of Integrity Auto Sales, has been selling cars in steamy Port Orange, Fla., since 1987, so he knows a thing or two about dealing with heat. One of his major changes for summer is his of hours of operation, a move aimed at increasing traffic of customers trying to avoid the hottest part of the day. In the winter, Coury’s lot closes at 6 p.m., sometimes earlier. In summer, it will be open until 8 or beyond. “We find people don’t want to be out in the middle of the day in the heat and get into a car that feels like it’s about 180 degrees,” he said. “We post 8 o’clock hours but a lot of times we are here even later.” Coury also changes his advertising during the summer, buying more radio ads to target people out driving or at the beach. “Radio advertising does well in the summer – you get a lot more bang for your buck that time of year,” he said. As for the cars themselves, Lescota said it’s worth the extra time and effort to keep the inventory looking clean and sharp. That can be especially difficult in summer, when the hot sun tends to fade paint and upholstery, and dust and debris tend to blow in from the surrounding area. While keeping the vehicles out of the sun is preferable, it isn’t always feasible, so a dealer has to be prepared to clean the inventory often. “People buy visually, so you need to be sensitive to making sure every single car, every single day, looks fresh,” Lescota said. “It’s easy to get a car looking good for the lot. The hard part is keeping it looking good while it’s on the lot. That’s why it’s very important for the dealer to make sure he’s got a good coat of wax on the car. And have the porter wipe the cars down first thing in the morning, not anywhere near the afternoon because that water will cause water spots and some water spots can be very, very, very

SUMMERTIME AND THE SELLIN’ IS EASY “The price of gas is going to continue to rise, which means fuel-efficient is in again,” she said. “The fuel-efficient ones are going at a premium. In fact, there might be a shortage of fuel-efficient cars. I hear dealers are having a hard time getting inventory.”

difficult to get out. A lot of that preparation needs to be done very early in the morning.” Lescota also suggested washing the windows with a solution of one part ammonia to four parts water to “make them absolutely sparkle.” “People might say that kind of stuff isn’t a big deal,” he said. “Of course it is. Look at how any person shops. If I’m at a store and I find something on the shelf that has dust on it, I put it back and I look for a box or can that doesn’t have dust on it. Dust says it’s old. Dust says it’s stale. It might not be, but that’s what it says. That’s a very powerful tool that can motivate a potential buyer.” Not all of the issues facing cars sitting in the heat of summer are cosmetic. Some can be legal – the heat can make stickers face or even fall off, including required FTC stickers and Monroney stickers. And the heat can even keep a car from starting. “Believe it or not, we have to make sure we keep the cars started once a week because batteries take just as much of a beating in the summertime as they do in the winter,” Coury said. “The heat is just as bad for a battery as the cold. It’s funny, it will be the dead of summer and you’ll be going, ‘What the heck? All these batteries are going bad on me.’ The heat is really tough on those batteries. So we make sure we have a lot of batteries in stock, ready to go.” Ross Turner, assistant commercial category manager for AutoZone, an NIADA National Member Benefit provider, suggests keeping a careful eye on the cars’ rubber items – such as belts, hoses, tires and wiper blades — because rubber can be greatly affected by heat. And an extra thorough wash might be a good idea when the weather warms up, especially in places that had rough winters. “Remember that it wasn’t just snow and mud that accumulated on the cars,” he said. “If they were driven, there were also salts, sands and other melting chemicals that have built up on the auto’s finish. Cleaning the interiors and exteriors more thoroughly might set one dealer out ahead of another when it comes to customer impressions.” Summer can even affect the type of cars a dealer wants on the lot. Kelly said the hot items – pun intended – for the upcoming

summer will be fuel-efficient vehicles. “The price of gas is going to continue to rise, which means fuel-efficient is in again,” she said. “The fuel-efficient ones are going at a premium. In fact, there might be a shortage of fuel-efficient cars. I hear dealers are having a hard time getting inventory.” At least one dealer already is finding that to be the case. “We’re trying to buy stuff that gets decent gas mileage as we look forward toward summertime,” Pool said. “We’re having trouble finding any inventory. We’re keeping our eyes on gas prices and trying to stock a lot of stuff that gets good fuel economy – cars and small SUVs – and trying to stay away from diesel trucks with the price getting close to $4 a gallon. “We want to get some stuff in here that we can sell. We used to buy SUVs and Suburbans and Tahoes because people were getting ready to go on vacation in the summer and they’d buy those bigger vehicles to carry their families in. But not these days.” Summer actually brings more than heat when it comes to weather. In some areas, it means sudden hailstorms or tornadoes that can pop up at a moment’s notice. In Florida and along the Gulf coast, it means the beginning of hurricane season. Coury found that out the hard way in 2004, when Florida was pounded by four hurricanes – Charley, Francis, Ivan and Jeanne – which left his dealership a wreck. That summer reinforced the need to have a storm plan, whether that’s a tent or cover to keep cars out of the hail in Texas or places to hide Florida cars from hurricane-force winds and storm surges. “One thing I have to do constantly is storm preparedness,” he said. “We rehearse where cars are going and what to do. I’m very close to the water here, probably 100 yards from the Intracoastal Waterway. So I have to worry about any storm surge, flooding, high winds. “During one of the hurricanes we had, I put a bunch of cars together in a big square, not realizing the shingles were going to blow off my roof and skin up every car there was. So I try to take the largest assets and protect them the best, and do what I can do with the rest of it.”

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BY D O N A LD FOY

Making Social Media Work for Your Dealership Social media continues to be a white-hot subject. It’s fueled in no small part by the top players in the field that are beginning to look more like financially viable businesses. Twitter is predicting $150 million in revenue this year. Foursquare has six million users and its co-founder would have you believe it’s worth $250 million. Facebook banked an astonishing $1.86 billion in revenue in 2010 and some analysts value the company at $50 billion. That’s not bad for a set of businesses the oldest of which hasn’t seen a seventh birthday. Social network users are engaged on an hourly basis sharing family pictures, relationship status, resumes, and opinions on every subject imaginable. A growing number of consumers have both personal and professional profiles and an overwhelming 93 percent of those active in social media expect businesses to have a social media presence. Many independent dealers know this is a powerful and influential space, but only a minority are clear about how to manage their presence and what, if any, ROI can be derived from a commercial online presence. It’s important to remember the five laws of social media.

Top social marketers have potential customers arrive at the dealership shaking hands and saying how good it is to finally meet.

Content is king

Those interested in your social media presence have an expectation you’ll deliver information they can use. Customers see the dealer as an authority on automobiles. They look to dealerships for information that will guide them through a sea of choices to the car best suited for them. Dealers delivering online content on things such as vehicle reliability, overall satisfaction and trends are far more likely to have shoppers visit their store.

Don’t spam

Social media sites are not substitutes for radio, TV or newspaper advertising. Community members aren’t interested in sale specials, inventory, financing or information if those things aren’t catered to their specific needs. This does not mean dealers shouldn’t post inventory for customers to see; what it does mean is dealers shouldn’t blast fans with service deals and lowered prices. In social media, a business or a friend can be banished with one click.

Listen and respond

This one seems easy, as most businesspeople think they do this all the time. The challenge here comes when a complaint or perceived slight is posted in an open forum. The first reaction for most is to be defensive or, at least, to explain a gripe away. That has proved to be discrediting and incites the audience to defend their position. The proven, successful response is to fully recognize an unhappy comment and ask how to make it right. Customers who complain about an issue aren’t trying to hurt the business; they themselves are hurt. These people were expecting a successful experience and are letting management and the world know they didn’t have one. Forget the problem and get them to the solution. Credibility will skyrocket. D O N A L D F O Y is the

executive director of Manheim’s DRIVE Center. In that role, he oversees innovation research, discussion and testing for Manheim. Contact him at donald. foy@manheim.com and visit his blog www.matters2me.com.

It is social

This means that all social media interaction is about a conversation between at least two people. Many dealerships make the mistake of operating in a broadcast mode, blasting out information about sales, products, and business offerings. In the social space, this is unwanted noise. The magic happens when the employees of the dealership, customers, potential buyers, and brand enthusiasts all build an organic discussion around individual objectives. Dealers want to sell cars. Consumers want to get to and from work reliably, express their style, and get a good deal. One dealership in the Southwest offers a regular schedule of updates that includes maintenance and performance tips updated by its chief mechanic, as well as the latest information available about vehicle reliability. Site guests believe the dealership isn’t just trying to sell them just any car, but a car they can rely on.

It is personal

The most effective social online presence comes with a face and a personality. The important thing for dealers to know is a real human advocate creates credibility with customers. The communication style should be personal, too. Dealers know their markets and their customers. Great online community mangers talk to guests as if they were standing on the showroom floor.

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NEW NIADA MOBILE SERVICE

FOR SMART PHONES PUTS KE Y APPR AISAL DATA , MEMBER NE WS AT YOUR FINGERTIPS BY SCOTT LILJA, VICE PRESIDENT, NIADA MEMBER SERVICES

This spring, NIADA members will have access to a new mobile application tool from NIADA that will enhance their productivity and profitability and stay up to date on the latest developments impacting their dealership. This new tool, NIADA Mobile Service, is accessible by Apple iPhones, Android-type phones and other select models. It puts at members’ fingertips a wealth of critical data to help them make better vehicle appraisal, purchase and retail sales decisions. Now, members can access their subscriptions to appraisal services from NADA Guidebook, Kelley Blue Book, Black Book, and Galves Auto Price List. They also will access run lists from participating auctions. Furthermore, NIADA Mobile Service links them by smart phone to select content on NIADA.com. Here’s how NIADA Mobile Service will streamline your operations: On the lot or on line: More quickly appraise a vehicle, for customers at your lot or those selling online through sites such as Craigslist. Access your guide book vehicle appraisal service or a market report – or your subscription vehicle history report service – on the specific unit. Have at your fingertips the right current facts to pencil your best deal. Buying from auction: You can access the auction’s pre-sale run list while at the auction or sitting in your office. You may view the inventory then, once you land on a unit you like, press on the appropriate smart phone icons to pop up auction-supplied information about the unit, its appraisal data, and a vehicle history report. Continual and timely updates ensure you have the freshest available data. During a moment of downtime: Activity suddenly slows its hectic pace for a few minutes, so you use the time to access the NIADA website. There you check some key association information or watch a NIADA.TV video you’d put off. The service also alerts you to urgent messages that might require immediate action. Designed for NIADA

NIADA Mobile Service was developed by leading automotive mobile applications developer and NIADA technology partner and advisor GigglePop.com Inc. The company is importing NIADA web content and coupling it with existing GigglePop software mobile applications. GigglePop’s technology is known

for speed, accuracy and, of course, mobility. Its fat-finger icon or button designs are a special value when searching for key information when working in distracting environments like auctions. These large icon designs help users easily find and stroke with their fingers the right icons or buttons they want, reducing keystroking errors. As NIADA’s technical partner, GigglePop will continue to support Mobile Service and be an industry liaison for NIADA Mobile. Accessible subscription guidebook data and features through Mobile Service include:

Customizable software settings s All guidebook regions or states include s VIN look-up decoder s Stores booked vehicles, recall in an instant s Enter personal notes on booked vehicles s Lists and sorts appraised vehicles s Re-values saved vehicles with each new update s Automatically updates wirelessly s Barcode scanning capability s Seamless integration with all GigglePop valuation tools, including vehicle history report subscription services and auction run lists s SmartBid Market Report s Large easy-to-read fonts s

NIADA Mobile Service also makes your day at the auction simple, easy and productive. Accessible auction run list data from participating auctions includes: s

s s

s s s

s s

Search by lane or run number to view auction vehicle data Barcode scanning capability Continual auction run list updates even while auction is in progress View those late arrivals Save target vehicle data for future reference Enter personal notes and bid pricing on specific vehicle records Lists and sorts saved target vehicles Seamless integration with all GigglePop valuation tools, including Guide Books, Vehicle History and participating Market Reports

In addition to providing mobile access to these key services, NIADA Mobile Service also connects members to select NIADA content on the NIADA site. Wherever you are, you can stay on top of moving legislative decisions, regulatory compliance issues, new NIADA member services and educational programs.

Especially in today’s market, still recovering from the recession, this mobile service will help members operate more profitably. It puts at hand the insight needed to buy and sell more profitably and keep abreast of industry news and events influencing the used vehicle retail market. The more competitive dealers today are clearly adapting to our changing industry by using mobile technologies and solutions to help them better manage their used vehicle operations, inventories, vehicle sourcing and retail sales processes.

DELIVERS TANGIBLE MEMBER BENEFITS Members’ use of the NIADA Mobile Service tool will help them:

I dentify quality, retail-ready inventory: Mobile accessibility to auction inventory as well as vehicle valuation guides can help dealers meet challenges presented by the economic fallout from the last three years’ depressed vehicle sales, drop in leasing activity and reduced stream of fleet rentals into the remarketing stream. s Source the right-priced vehicle for the customer: Reduced levels of wholesale units flowing into remarketing channels have made it more difficult to source and match the right vehicle to customers’ ability to pay. NIADA Mobile Service helps dealers locate those vehicles at an acquisition price the customer can afford and finance, while providing enhanced profit for the dealer. s

Often spread thin by needing to be in the office, on the lot and at the auction seemingly simultaneously, the independent used auto dealer must use time and resources wisely. By adding this new Mobile Service tool to the NIADA portfolio of member services, the association helps its members access critical association information and related vehicle valuation, history reports and auction run list services right from their smart phone. As market needs continue to change and dealers seek new ways to remain competitive, like purchasing inventory outside their local market areas and using web-based competitive vehicle analysis and pricing tools, GigglePop and NIADA will continue to enhance Mobile Service to help dealers make the most informed and profitable business decisions.

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F EDER AL ADVOCAT ES LOBBY ING REP OR T

NIADA’s Whann Participates in First FTC Roundtable I have just returned from the FTC roundtable entitled “The Road Ahead: Selling and Financing Motor Vehicles” held at the Wayne State University School of Law in Detroit, Mich. Choosing a law school

as the venue for the event was perfect! So many of the discussions centered around complicated fact patterns, the application of overlapping federal and state laws and variations and inconsistencies from state to state, you felt as though you were sitting in a law school classroom. The program consisted of six panel roundtable discussions on the following: Understanding the Motor Vehicle Sale and Credit Transaction, From Both Prime and Subprime Perspectives; Interest Rates, Dealer Reserves and Markups; Payment and Locator Devices and Consumer Privacy; Spot Delivery; Contract Add-Ons and Vehicle Title Problems and Dealer Bankruptcies. The panels consisted of five members each (one had four) and had a mix of regulatory, industry and consumer representatives. They were moderated by six different FTC staff members, all of whom I have met on my trips to Capitol Hill (and have had the opportunity to discuss the issues being considered in the roundtables) and they did an excellent job facilitating discussion. While all other industry members were limited to participating on a single panel, I was asked to participate on two (I volunteered for all six). I took it as a compliment, but you decide for yourself. The goal for the day was to “explore consumer protection issues pertaining to motor vehicle sales and leasing” and to determine “what consumer protection issues, if any, exist that could be addressed through a possible rulemaking or other initiative.” All in all, I would say the day was quite productive. However, with the individual roundtables lasting only 30 to 90 minutes, it was difficult at times to get into depth on many of the subjects. Consider the challenge in even being able to explain something as basic as what is a motor vehicle dealer and how do they operate? Franchised or independent? Big or small? Metro or rural? Threeparty paper financing or two-party paper financing, with a little Buy Here-Pay Here thrown in for good measure? And we are only beginning to scratch the surface! As background, the Dodd–Frank Wall Street Reform and Consumer Protection Act is a federal statute in the U.S. that was signed into law by President Barack Obama on July 21, 2010. The act is categorized into sixteen titles and from the and, from the estimates I have seen, requires regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports. The stated aim of the legislation is: “To promote the financial stability of the United States by improving accountability and transparency in the financial system, to end ‘too big to fail,’ to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices, and for other purposes.” So what exactly does the act do? This description from Wikipedia is one of the best I have seen: “The Act changes the existing regulatory structure, such as creating a host of new agencies (while merging and removing others) in an effort to streamline the regulatory process, increasing oversight of specific institutions regarded as a systemic risk,

amending the Federal Reserve Act, promoting transparency and additional changes. The Act establishes rigorous standards and supervision to protect the economy and American consumers, investors and businesses, ends taxpayer funded bailouts of financial institutions, provides for an advanced warning system on the stability of the economy, creates rules on executive compensation and corporate governance, and eliminates the loopholes that led to the economic recession. The new agencies are either granted explicit power over a particular aspect of financial regulation, or that power is transferred from an existing agency. All of the new agencies, and some existing ones that are not currently required to do so, are also compelled to report to Congress on an annual (or biannual) basis, to present the results of current plans and to explain future goals. Important new agencies created include Financial Stability Oversight Council, the Office of Financial Research, and the Bureau of Consumer Financial Protection.” It should be noted while section 1029(d) of DoddFrank confers on the FTC authority to prescribe rules under the Administrative Procedures Act with respect to unfair or deceptive acts or practices by motor vehicle dealers it does not, however, expand or otherwise address the authority the FTC already possesses under the Federal Trade Commission Act to initiate enforcement action against unlawful behavior. Given the fact there appears to exist a somewhat

unbalanced and hostile view amongst some in the regulatory community towards dealer-assisted financing, one of the most important tasks as an industry will be to assist the FTC and the consuming public in better understanding the mechanics of dealer-assisted financing. We must also collectively establish a facts-based record upon which the question of whether to engage in a UDAP rulemaking may be considered. Over the past 27 years (the last 16 as outside general counsel to NIADA) I have had the opportunity to work with federal regulatory agencies, including the FTC, to promote independent dealers’ compliance with federal statutes and regulations and to educate consumers about the car buying and financing processes. Never in this time period has there been an issue as important to independent dealers and the future of our industry as this. It will change the landscape of how cars are sold and financed for years to come. We will continue to be actively involved in the process as things progress and I look forward to having the opportunity to discuss the issues in greater detail at the NIADA Convention & Expo in June. Until then, you can stay current with the latest developments by following me at www.facebook. com/keithwhann and twitter.com/keithwhann. See you in Las Vegas! FEDERAL ADVOCATES is NIADA’s governmental advocacy partner. To read past lobbying reports, visit www. niada.com/legislative_and_legal.php

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FACEBOOK 101

THE DEALERS SOCIAL MEDIA

BY D U S T I N JA N SS O N

How effective is your dealership’s following and interaction with Facebook and other social media? Most dealers

create a fan page, load a photo of their dealership and don’t invest any more time or effort in the page’s content or building the fan base. Although thousands of dollars are spent in a dealer’s monthly advertising budget, the Facebook and social media investment is often overlooked when it could be the best source of customer retention and referral business. Social media can be exceptionally beneficial when you’re dealing with hundreds of millions of people on multiple levels. First, you have the ability to connect with consumers on more of a personal level. Second, you create a one-off relationship where the thought of making a purchase from a dealer utilizing these tools is a much more comfortable engagement. Third, you can effectively continue a relationship with the consumer for years rather than days.

FACEBOOK FACTS

• More than 500 million active users • 5 0 percent of active users log on to Facebook in any given day

• Average user has 200 friends • P eople spend more than 700 billion minutes per month on Facebook

• 2 5 percent of all internet traffic in the U.S. is going through Facebook

• “Like” button found on two millionplus websites (Bing, etc.)

Start by tending to your own backyard… your customers! The horsepower of a fan page is built by your following that will give you the power to deliver your messages more efficiently and methodically. Advertising a sale every weekend by posting it on FB is not the answer.

Remember the customer calendars with the picture of them buying their car from your dealership and those cut-out coupons spread throughout months for service and parts? Social media is the same concept, but on steroids and at a fraction of the cost or effort! You want your customers to “like” your fan page because that shows their hundreds of FB friends they like you. You can take this one step further and take a picture of every customer in their new car and “tag” them in the photo. Once you’ve tagged that person, all their friends will see it, leading to limitless impressions! The immediate network everyone possesses on FB is your highway to customer retention and referral business. Try enticing your customers by offering a referral or bird-dog fee to give them incentive to engage their FB friends into your dealership. Again, social media is not necessarily lead generator, but a vessel to grow your business’s reputation on multiple levels. You may not get a Facebook message saying, “I would like to purchase a car from you,” but you will likely get recommendations from people in your network to buy from your dealership. Proper page setup and execution of your social media is important. Your dealership page should be set up as a fan page on FB, not a personal profile. Information and photo captions on fan pages are indexed for search engines, so make sure your information is complete and appropriately labeled. You also can have your inventory listed with videos, if applicable. Sending mass messages to your fans is only possible with fan pages. The list of fan page do’s and don’ts goes on and on so if you believe you need help with the setup of your social media pages contact DealerNet Solutions for some consulting. Execution of your social media really comes down to this: what reason do you give people to like your page and revisit

it? You need to run on all cylinders (sales, parts, service, customer appreciation, etc.). Make your content fun and attractive to the customer as well as informing and beneficial. Update your fans about the little league baseball team you sponsor, or about a little-known holiday that’s occurring today, then add something about the new offerings your service or detail department has. Prospecting with social media is possible, too. There is technology now available that allows you to enter keywords to search for in a specific geographic radius on the social networks. Every time those words show up in somebody’s shared post or tweet, you see them (e.g. shared post; I am looking at a Toyota Camry) and can often capture their contact info by just “friend-ing” or “following” them. Companies such as DealerNet Solutions have taken the lead in the social media realm by not only providing auto-targeting to capture the millions of consumers, but also by tying in traditional internet inventory posting on their social media thus creating a web around all aspects of internet marketing. Again, driving sales with Internet postings is not enough, but coupling it with social media creates a new generation of sales. All the potential is in the big picture. The way dealers advertise has changed immensely and the days of the instant leads are growing fewer. Your services and reputation are what set you apart from the rest of the competition. Being able to manage millions of potential customers will take you to the top. J A N S S O N provides consulting on social media and social media management tools as well as complete dealer inventory marketing and management products. Contact him at 303-232-3435 or dj@dealernetsolutions.com DUSTIN

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MEMBERSHIP APPLICATION & BENEFITS PROGRAMS TO HELP YOU SAVE MONEY • Access to Insured Warranty & Service Agreements • Online Marketing and Advertising of Inventory • Vehicle History Report Discounts • Access to Customer Financing and Leasing Options • Networking with Dealers Nationwide • Discount Automotive Guide Books Subscriptions • Discount on State Approved Business Forms • Standardized Dealer Accounting Software • Annual College Scholarships for Family • NIADA Insurance • Prescription Drug Discounts • Savings on Shipping Services • Hotel & Rental Car Discounts • Telephone and Other Utilities Savings • Vehicle Transportation Services • Marketing Supplies & Printing Services REPRESENTATION • Federal Legal, Legislative and Regulatory Tracking and Reporting PUBLICATIONS • Used Car Dealer Magazine

• Annual Used Car Industry Report • Illinois Dealer’s Edge • IRS Audit Technique Guide for the Independent Used Car Dealer • NIADA’s Standardized Dealer Accounting Manual/CD • Legislative Alerts • NIADA Annual Buyer’s Guide PROFESSIONAL DEVELOPMENT • Dealer Education Provided at Annual Convention • Certified Master Dealer Program • NIADA.TV’s Online Dealer Education Training Videos • NIADA Annual Convention & Expo • Access to Industry Education Providers • NIADA Membership Certificate • Adhering to NIADA Membership Code of Ethics

To see all benefits & discounts visit http://www.Niada.com/benefit_program.php

APPLICATION Type of Membership: Regular New Member: (company)

____________ Associate ___________ (non-dealers) _____________

_____________________________________________________________

Owner’s Name: __________________________________________________________________________ Mailing Address: __________________________________________________________________________________________ City/ State/ Zip:____________________________________________________________________________________________ Phone Number: _____________________________________ Fax: _________________________________________________ E-mail Address: ___________________________________________________________________________________________ Kind of Business: (check all that Buy Here Pay here Wholesale Classic Cars

apply) Independent

Auction House

Franchise

Retail Body Shop

Re-builder

Salvage Yard

ANNUAL DUES $299 • MAKE CHECKS PAYABLE TO: ILLINOIS INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION P.O BOX 7266 • ROCKFORD, IL 61125

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CARFA X L AUNCHES ADVANTAGE PROGRAM FOR DEALERS NEW PROGRAM DESIGNED TO INFLUENCE SHOPPER’S DEALER CHOICE, ENHANCE CONFIDENCE

Carfax is giving dealers a powerful new way to attract customers using the Carfax brand. The Carfax Advantage™ Dealer Program distinguishes Carfax-subscribing dealers that are committed to transparency. Through the program,

participating dealers can set themselves apart from their competition. Used car shoppers know they can buy with greater confidence when shopping at any Carfax Advantage dealership. “Being a Carfax Advantage dealer with unlimited access to Carfax Reports, Carfax has quickly become one of our most valued partners,” said Adam Warmka, general sales manager at Dick Brantmeier Ford Lincoln Kia in Wisconsin. “We use them when we’re buying cars to make sure everything checks out and our salespeople are constantly asking for printed copies so they can show our customers. Every car we list online has a Carfax Report. Carfax is in our advertising, out in front of our dealership and on every car in our inventory. We use them every day.” According to recent research, more than 80% of used car shoppers surveyed said they would prefer to shop at a Carfax Advantage dealership. Carfax Advantage dealers have another way of building confidence with used car buyers and help customers make faster buying decisions. “Our participation in the Carfax Advantage program has helped us build credibility with customers,” said Dan Moltz, general manager at Car Center of Waldorf, Md. “We show the Carfax up front on every car. Customers appreciate it and the result is additional sales and higher customer satisfaction. Also, by pulling Carfax Reports prior to buying inventory, we shorten our turn, which we all know increases retained earnings. The more you turn, the more you earn.” As part of the program, participating dealers have unlimited access to Carfax Vehicle History Reports and Carfax Auction Quick Check, plus a Consumer Information Pack for every car being retailed. Carfax also provides enhanced point-of-sale materials for free, including new items that highlight Carfax Advantage dealerships. “Transparency greatly influences consumers when making their dealer choice,” said Bill Eager, vice president of Carfax. “Thousands of consumers we tested said that the Carfax Advantage program means trust and confidence. They know immediately that a Carfax Advantage dealer will show them the Carfax. As a result, participating dealers enhance their reputation and sell more cars faster.”

PRE-GAME WARM-UP:

REVIEW FINANCING PRACTICES AHEAD OF CFPB AND FTC RULES It’s the beginning of the baseball season. Experts are poring over team rosters, game schedules and statistics to predict the season’s outcome. The fun and fear

is the element of the unknown. The same is true of the new Consumer Financial Protection Bureau. As it takes shape, we are checking its roster of leaders and their speeches and public announcements to predict first-year activities. The fear, not so much the fun, is the element of the unknown. One unknown is how the bureau and the Federal Trade Commission will define an unfair, deceptive, or abusive act or practice in motor vehicle financing. The Dodd-Frank Act authorizes them to make and enforce rules to prevent such acts and practices in consumer financial products and services. Many states already have similar statutes, but each state has its own unique definitions and case law. Some states have developed a large body of case law defining the standard, but the Dodd-Frank Act will add a unique layer of federal law, regulations and court decisions. State attorneys general also can sue to enforce federal law, so we may see case law develop based on unique state decisions to enforce. In addition, state laws that provide greater consumer protection will continue to be enforceable. The FTC recently announced it’s conducting public roundtables in three to five cities around the U.S. to discuss consumer protection issues in connection with motor vehicle sales and leasing. It published a list of discussion topics indicating the acts and practices under the most intense scrutiny. The list includes yo-yo financing, finance company incentives to dealers resulting in more expensive credit, interest rate mark-ups and upfront charges of which the consumer is unaware, negative equity financing, selling and financing add-on products and services and use of GPS location devices. Details may be found at ftc.gov. Information from the roundtable meetings will likely shape the FTC’s view on whether the practices discussed are in any way unfair, deceptive, or abusive acts or practices. The meetings will likely be a game changer. Whether or not you participate in the meetings, you should review your dealership’s practices in these areas. The legal standard for review will develop over time. For now, I suggest the common person standard: Would you be comfortable having your practices displayed on the Jumbotron at the ball game? BY C H I P Z Y VO LOSK I

Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

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