INDIANA INDEPENDENT AUTOMOBILE DE ALERS A S S O C I AT I O N
JANUARY 2017
CAR LINES
State Affiliate
MAGAZINE
2016 “JOE KRIER” INDIANA STATE QUALITY DEALER OF THE YEAR
CONGRATULATIONS, ANDY ZAY!
Page 6
DALLAS, TEXAS Permit No. 2079
PAID
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Ready To Reach New Heights This Year?
Make It Your New Year’s Resolution To:
Increase Profits. Sell More Vehicles. Reach New Markets. Call 1.877.310.0288 to start today!
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MANAGEMENT MATTERS BY ADAM ROBINSON
HIRING THE MOST IMPORTANT SALES ROLE Service Advisors There is no question a successful dealership has both skilled technicians and knowledgeable salespeople to maintain profit margins. But an oft-overlooked – and equally (or arguably even more) important – component is the service advisor. When people take their cars to a dealership, the service advisor is the first face they see. The service advisor quarterbacks the entire service experience and serves as the critical link between the customer and the work. This dynamic means service advisors have a heavy influence on customer experience, which can either keep them coming back or drive them away. While a basic understanding of how cars work is essential to helping the customer navigate their needs, communication skills are even more crucial in ensuring the customer has a positive experience and feels confident about the work and service your dealership provides. Critical conversations between the advisor and customer include such topics as explaining invoices, deciphering warranty coverage, explaining necessary or suggested additional repairs and providing the customer with updates on the progress of the work. All these conversations require someone with good people skills as well as excellent car skills. Here are key elements I recommend to identify quality service advisor candidates and how to hire them.
and be able to relay that information correctly to the technicians doing the work. • Integrity. In addition to communicating information between customers and technicians, service advisors have a responsibility to provide the client with accurate information that is in their best interest, instead of using every interaction as an opportunity to upsell extra work. A service advisor with honesty and integrity will quickly earn the confidence of your customers, ensuring they look to your dealership as a trusted place of business, returning for additional needs and sending friends and family your way. Also, a good service advisor will provide updates or call customers back in a timely fashion, keeping them looped in every step of the way. Things to Consider When Hiring a Solid Service Advisor Now that you know what to look for in a service advisor, there are some factors to keep in mind when you’re considering hiring one. For starters, consider how your dealership and employment brand will appeal to women candidates. Half of your customers are women, so having at least one female service advisor on staff will help you better connect with that demographic. Consider advertising the job with a title other than “service advisor,” so as to appeal to a larger number of applicants. Alternate titles can include customer service
representative, service secretary or customer service associate. While technical knowledge is beneficial, you might consider advertising the position with “no experience required” to welcome applicants who have all the other necessary skills without potential bad habits that will require much more aggressive retraining to break. Lastly, consider the number of service advisors your dealership needs to meet demand and give your customers the full attention and service required. Benefits of a Solid Service Advisor Hiring the right individual for a service advisor position will yield lasting benefits, including an increase in repair order count, CSI and owner retention. It will also increase your technicians’ productivity, resulting in a boost of customer loyalty. A service advisor typically touches a customer five times more than a sales person, making proper candidates for this position a crucial component for your dealership’s success. Preparing for 2017 means staffing up with skilled service advisors who can create a lasting, positive impact. Adam Robinson is the co-founder and CEO of Hireology and a noted recruiting industry expert, speaker, and author with over 20 years of experience in the field of hiring and selection management. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.
Recognize the Traits of a Solid Service Advisor As mentioned above, a service advisor is the first face your customer sees and the person with whom they communicate the most, if not exclusively, throughout their service experience. A good service advisor should possess the following traits: • Mechanical knowledge and ability to articulate. Because the service advisor is the one to communicate with the customer from start to finish, it is important they understand the industry enough to be able to answer questions, suggest options and explain the process to a customer who may otherwise be unfamiliar with the work needed. Additionally, the service advisor should be able to relay the information without overusing technical jargon, making it simple for every customer to follow and understand. • People skills. The service advisor should have the ability to read and adapt to different customers’ communication preferences: some like a plethora of details while others prefer to be in and out. The service advisor must also possess good listening skills to clearly understand what the customer needs or wants
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INSIDE
BOARD MEMBERS
06...............................Indiana State Quality Dealer of the Year 08.......Right-Now Actions to Improve Your Online Reputation 10.......................................................The Importance of Value 12..............................................New and Renewing Members 15...........................................................Security Starts Within 16...................................................................Record Retention
WHAT’S NEW
CMD Dates Announced
Class dates for NIADA’s industry leading Certified Master Dealer program have been announced for the upcoming year. Look for a class coming to your area! Dates include Feb. 9-11 in Portland, Ore.; May 15-17 in Atlanta; Sept. 12-14 in Dallas; and Dec. 11-13 in Tampa, Fla.
Visit www.niada.com or contact Diann Flanders at 888-906-8283 or diann@niada.com for more information.
ADVERTISERS INDEX
ADESA .....................................................................................7 AutoZone............................................................................... 14 Black Book................................................................................5 CarMax Auctions ...................................................................15 Dyer Auto Auction....................................................................3 Kesler Schaefer AA..................................................................9 Manheim ........................................................................... 10,11 Manheim Pennsylvania..........................................................13 NextGear Capital ...................................................................17 NIADA Certified.....................................................................IFC NIADA.TV.............................................................................. IBC VAuto....................................................................... Back Cover
OFFICE
For information on how to become a member of IIADA, please call 219.661.0287 128 S. East Street # 1393 Crown Point, IN 46308 iiada@comcast.net • www.iiada.com
NIADA HEADQUARTERS
NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. Car Lines is published 10 times per year 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 Car Lines 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.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christy Haynes • christy@niada.com Christopher Hanley •chris@niada.com PRINTING
Nieman Printing
President
Andy Zay Zay Leasing & Rentals, Inc. 4957 N. Broadway Huntington, IN 46750 Phone: 260.356.1588 azay@sbcglobal.net
Chairman of the Board Legislative Chairman Fritz Kreutzinger Fritz Associates P.O. Box 168 Fishers, IN 46038 317.842.2228 Fax: 317.842.7900 fritzauto@aol.com
Vice President
Tony Del Real Del Real Automotive Group 1002 Walnut Avenue Frankfort, IN 46041 Phone: 765.446.9204 tdelreal@delrealauto.com
Treasurer
Bruce Norton Drive1 USA, Inc. 1512 W. 96th Avenue Suite C Crown Point, IN 46307 Phone: 219.670.0542 Bnorton@drive1usa.com
Secretary
Sharon Brennan Fritz in Fishers 8599 E. 116th Street Fishers, IN 46038 Phone: 317.842.2228 sharonb@fritzinfishers.com Tricia Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com
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Jennifer Cotton Dyer Auto Auction 219.865.2361 Fax: 219.322.1761 bcotton@dyerauction.com Kim Graham Kim Graham, Inc. 1648 A US 31 S Greenwood, IN 46143 317.888.0100 Fax: 317.888.8900 k.motors@sbcglobal.net Ed White White’s Auto Sales 1105 McKinley Ave. Rensselaer, IN 47978 219.866.7553 Fax: 219.866.7256 edwhite123@att.net John Stumpf Greater Kalamazoo Auto Auction P. O. Box 697 Schoolcraft, MI 49087 269.679.5021 jstumpf@kalamazooaa.com Tony Houk Kesler-Schaefer Auto Auction, Inc. 5333 W. 46th Street Indianapolis, IN 46253 317.297.2300 Fax: 317.297.6236 skesler@ksaa1.com Tyler Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com
Taryn Sanchez White’s Auto Sales LLC 1105 N. McKinley Avenue Rensselaer, IN 47978 Phone: 219.866.7553 twhite1517@att.net Harold Drees H.T.D., Inc. 200 E. Main Street Thorntown, IN 46071 317.402.2312 Fax: 765.436.7222 htdinc@msn.com Doug Alvey First Class Auto Sales, Inc. 695 W. 900S Hebron, IN 46341 219.996.2600 Fax: 219.531.4628 talvey65@yahoo.com Andrew J. Inabnitt Approval Auto Credit Inc. 9825 Huggin Hollow Rd. Martinsville, IN 46151 317.422.8001 Fax: 317.422.8020 joe@approvalautocredit.com David D. Baldwin II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 260.357.0099 Fax: 260.357.0090 dbthesecond@yahoo.com Debbie Andersen Executive Director 128 S. East Street # 1393 Crown Point, IN 46308 219.661.0287 iiada@comcast.net
Travis Baldwin Best Deal Auto Sales 2526 Scotswolde Drive Fort Wayne, IN 46808 Phone: 260.483.7999 travisbaldwin@ bestdealautosalesonline.com
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ASSOCIATION NEWS
ZAY LEASING & RENTALS INC. 2016 “Joe Krier” Indiana State Quality The Indiana Independent Automobile Dealers Association is proud to announce Zay Leasing & Rentals, Inc. as our 2016 “Joe Krier” Quality Dealer of the Year. This award was presented to Andy Zay at the association’s 29th Anniversary Golf Tournament and Awards Day, which was held September 11 at Ironwood Golf Club in Fishers. The Quality Dealer of the Year selection is based on several attributes. The dealership must be consumer oriented, and the dealer must have a record of good business decisions based on honesty and integrity. Also, the dealership must represent themselves as a civic leader within the community. Zay Leasing & Rentals, Inc. represents all of these attributes. Andy Zay is the third generation owner of the business. In 1953 Ernest Zay, Andy’s grandfather, purchased the Ford franchise in the city of Huntington. After five years of operating the franchise by himself, Andy’s father, Rees, retired from industrial sales and joined his father in the automotive business. In 1964, Ernest and Rees built a new building on Business 24 East. Upon completion, they operated the Ford franchise until 1976. During Ernest and Rees’s tenure in the car business they formed a leasing company. In 1976 Andy’s father sold the franchise and maintained the used vehicle operation and leasing company. After operating as an independent dealer for the next 13 years, they introduced Andy to the car business. In 1989 the operation was expanded to include rentals and in 1996 Andy became the sole owner of the Zay companies. He consolidated the business and opened a new location at 4957 N. Broadway in Huntington. Zay Leasing & Rentals, Inc. continues to lease, rent, and sell cars, trucks and vans at this location. In the Zay Leasing & Rentals, Inc. business model,
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marketing is done primarily through their community involvement. Andy Zay is quick to say “yes” when an organization is in need of a van or car donation. He is supportive of many local organizations and received the “Half Century Award” presented by Governor Mitch Daniels for 50 years of business. Also, Andy received the “Optimist of the Year” award. Andy has worked hard to make Huntington a better and brighter place to live and play, mirroring his parents’ commitment to good education and a strong family. These are the very same principles he uses with his employees and customers. Whether volunteering his time coaching, working with the Junior Achievement organization, raising money for schools, supporting the local YMCA, organizing 5K races for charities, or serving as president of the Indiana Independent Automobile Dealers Association, Andy Zay is always doing something to make the
Huntington community a better place to work, live, and raise families. Zay Leasing and Rentals, Inc. will represent Indiana at the National Independent Automobile Dealers Association Convention in Las Vegas in June 2017. They will compete with quality dealers from other states for the National Quality Dealer Award. The primary purpose of the Indiana Independent Automobile Dealers Association is to address legal and legislative issues that confront the used car industry and to promote the businesses of its members while serving the public interest. The Indiana Independent Automobile Dealers Association has supported independent used car dealers in Indiana for more than 29 years. The association is proud to have Zay Leasing and Rentals, Inc. as this year’s “Quality Dealer of the Year.” Congratulations to Zay Leasing and Rentals, Inc.!
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© 2016 ADESA, INC.
Dealer of The Year
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© 2016 ADESA, INC.
ADESA Assurance buyer protection program and CarsArrive Network must both be selected at time of purchase to qualify for transportation refund. Vehicle must be returned in same condition as purchased within 30 days from purchase date. ADESA Assurance refund covers vehicle sale price and buy fee; transportation costs are only included if CarsArrive Network is used for transportation. See terms and conditions for full details. ADESA Assurance program may be cancelled by ADESA at any time and without notice.
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SOCIAL MEDIA BY KATHI KRUSE
RIGHT-NOW ACTIONS TO IMPROVE YOUR ONLINE REPUTATION It Pays Off
Online ratings are what brought me to digital marketing. It was 2008 and I could see the 4-way intersection of social media, online ratings, customer experience and dealership operations becoming the foundation to build a modern business. Online ratings are one of the first places people go when they’re looking for solid, trustworthy advice, so staying informed on the latest ways to improve your online reputation could actually increase business. I’ve stayed in touch with a lot of my colleagues from my days managing car dealerships. Back in 2008, one of my friends had moved to a BMW store in Orange County and I became a customer. One day after picking up my car from service, I decided to post a Yelp review. I discovered the dealership had a rating of 1.5 stars. Surprised (because I knew this dealer was a good operator and the store had high CSI ratings through the manufacturer), I decided to do a “mini market study” on my couch. There were 50 or so BMW stores in California at the time and, shockingly, I found all but about four had less than two stars on Yelp. I saw an opportunity to leverage my years of auto retail experience and bring value to companies who needed guidance with social media marketing. Now, social media and online reputation have merged. In fact, SEO, content marketing and social advertising all work together to provide dealers with lucrative ways to attract, engage and sell to their target customers. I’m a natural networker. Word of mouth referrals have always been my go-to source for finding trusted sellers, and online ratings sites are where most people turn today. • 90 percent of consumers read online reviews. • 88 percent trust online reviews as much as personal recommendations. • 86 percent will hesitate to purchase from a business that has negative reviews. • Customers are likely to spend 31 percent more with a business that has positive reviews. • 92 percent will use a local business if it has at least a 4-star rating. Reviews are Insanely Influential We live in what Forrester Research has dubbed “The Age of the Customer.” Empowered customers are more demanding than ever, and they have the ability to make or break your business. They don’t trust what you say about your product or service, and they really don’t trust your ads. Instead, they trust other people
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like themselves. I’ve seen numerous car dealerships that have over 400 reviews and a 2-star rating. To me, this would constitute a call to 911. When you’ve got a large amount of reviews and your overall reputation reads negative, that’s a consensus... not just the opinions of a few unhappy customers. Myth: My Reputation Can Take Care of Itself Online ratings and reviews have the potential to be the single most effective and rewarding marketing channel for small and local businesses, and yet most marketers and business owners do very little to foster and shape reviews because they assume it’s out of their hands. They take a wait-and-see approach – forever. RIGHT-NOW ACTIONS TO IMPROVE YOUR ONLINE REPUTATION Improving, protecting, and promoting the company’s online reputation should become part of daily operations. Negative reviews deter buyers. If you have even one negative review, it’s impossible to gauge how many sales you lost because of it. Use the following eight actions to improve your online reputation and give your store every chance to reach its revenue goals. Remove the obstacles that stymie reviews. Ninety percent of consumers read online reviews. Six percent write them. Happy customers don’t often write reviews. They’ll say they forgot to, never thought to do so, got too busy or that it’s just too difficult. Make it easy for your happy customers to write reviews. Implement a proactive, automated process with the help of online reputation management
software like Grade.us. This not only makes reviewing your business easy, it simplifies the tasks required within daily operations. Earn the privilege of a positive review. Every customer is looking for a “guide.” One of the most important things a guide does in a customer’s life is participate in their transformation. They help the customer become somebody better than they used to be. Rather than sell them products, you actually position your products as tools they can use to win the day. Positive reviews are a natural extension of your customer’s transformation. Respond to every review honestly, openly and with enthusiasm. Responding to online reviews is an art form. Positive reviews deserve acknowledgement. Respond to each one with a sincere note of thanks. If you’re familiar with the transaction or can do some behind-the-scenes research, mention a detail the customer will remember. Everyone likes to feel important. When someone writes something negative about your business, it’s easy to become reactionary. Cooler heads always prevail so stand back, take a deep breath and give yourself time to regroup. Be open, honest and conciliatory. Be humble and offer to do whatever you can to solve the problem. Recognize that online reviews are a company asset. Happiness and enthusiasm about your company is a valuable advantage. A flock of glowing reviews greases the gears of search engines to greatly increase your authority in local search. Combined with the powerful word-of-mouth effect, positive online reviews deserve a place on your company’s balance sheet. After all, if you’ve put in the time and effort to improve your online
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reputation, positive reviews are worth their weight in gold. Acknowledge that software can help but it’s not a replacement for hard work. There are providers who promise to “manage your online reputation” but let’s get the facts straight. No one truly manages your company’s reputation but you and your staff. Software automates your process but that’s only if you have a process to begin with. Within your company are the seeds from which a stellar reputation blooms. Sustain your process by creating a review funnel, invite customers to provide feedback and recover unhappy customers before they vent online. Engage employees in your process. Customers are Googling salespeople. Reviews equate to online authority and when employees are mentioned it increases their value to the customer and the company. Trustworthy employees make the company appear trustworthy. When employees see their names in online reviews, it’s very powerful. Use this as a
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leverage point to engage them in the review process. Improve your sales process to build online reputation: • Establish WIIFM (what’s in it for me). • Inspire. • Motivate. • Recognize. • Incentivize. • Reward. Craft the right message when inviting reviews. One of the benefits of using software to support your efforts to improve your online reputation is that it guides the customer through the review funnel with a simple choice of either, “I had a good experience” or “I had a bad experience.” If they choose “I had a good experience,” here are two examples of the right way to ask for a review: • “Our business is based on referrals and we’d really appreciate you sharing your experience with others online.” • “Thank you for the awesome opportunity to serve you. We’d love to hear about your experience and no doubt, others would too.”
If they’ve chosen the “I had a bad experience,” they will click over to a landing page that helps recover unhappy customers before they vent online. Here’s an example of the right message for this scenario: • “Thank you for alerting us to your bad experience. We don’t like bad experiences either. Please allow us make things right. We’ll contact you within 24 hours (often sooner) to find a solution that works for you! (and humbly ask how we could’ve done better).” Offer an incentive to engage. I don’t mean to suggest that you ever offer an incentive in exchange for a positive review, a practice that is not only unethical, but violates the terms of service on many review sites… and may lead to FTC fines, getting banned, named and/or publicly shamed. However, you might offer a no-strings incentive to get customers a step further into your review funnel. For example, Grade.us clients can attach an offer to the landing page they drive customers to for feedback (NOTE: I’m not a paid endorser
of Grade.us. There are other similar solutions available). The no-strings offer is simply a way of getting more people to the landing page. The offer – maybe a discount coupon or a free download – is available to anyone, whether or not they post a review. But making the offer available there, on a page otherwise designed to guide customers through the process of submitting a review, increases the odds of getting that review. Next Steps... The data shows taking the necessary steps to improve your online reputation pays off. Reviews are insanely influential. If you find you’re still not comfortable with rolling out an internal process to capture your happy, loyal customers’ feedback, contact me and I’ll be your Sherpa. 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.
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MANAGEMENT MATTERS BY GEORGE GOWEN
THE IMPORTANCE OF VALUE Unveil the Value of Service and Parts
We all know a customer will buy a product or service when the value exceeds price. Unfortunately, automotive dealerships hide the value that the service and parts departments bring. Here’s how you can change that. Recognize the value of “free.” Grocery stores commonly show the
customer how much they “saved” on every receipt. That builds additional value to the price they paid for groceries. For some reason, dealerships comp services but, unlike the grocery store, never let anyone know about it. Here’s an example: Almost every dealership I know requires a multi-point inspection (MPI) for each repair order. This check builds trust and helps sell needed services. But what is the “value” to the customer for that service? None. However, if you show on the repair order that the MPI has a $49-$149 value that we provided at “no charge,” it does means something. After all, the service has actual value, and we should let customers know it. Here’s another example. Many dealerships charge a diagnostic fee, using the information to explain the nature of the problem and how much the repair will cost. Along with the diagnostic work, you probably do a complete inspection of the entire vehicle and don’t charge for it. You should mention this value to your customer.
And, no matter what, make sure the value you provide exceeds the price. Always offer a deal. While we’re looking at other industries for inspiration, let’s consider restaurants. I’ve been to many establishments that promote a special that includes the appetizer, salad, entrée and dessert. You’re told that you’ll get a special value by ordering the components as a group versus ordering them individually. The reality is that people will take advantage of the “deal” even though they likely would not have ordered all the items separately. You can apply the same principle to service menu items. The best performers on menu sale penetration show the value of the combined services versus doing those services individually. But if you offer a “30k Service” for $400 without explaining the value of the individual services, all they will see is the $400. Imagine the penetration level if you showed that all the services in the “30K Service” would separately cost $530! If the menu item is “only $400,” the customer just saved $130 by purchasing it. The same advice goes if you provide a car wash, loaner cars, or any other services: Always make sure the customer knows the value. And, no matter what, make sure the value you provide exceeds the price.
WORLD-CLASS SERVICE...
This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.
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ACCELERATE
BY GWC WARRANTY
BANK MORE ON THE BACK END The Ultimate Customer Satisfaction Experience
So much of what you do on a day-today basis is to preserve your front-end gross. You act with discipline when acquiring inventory, you carefully manage reconditioning costs, you price your cars based on demand and market and you work to sell them in a timely fashion. But what are you doing to make more profit on the back end of your deals? Statistics show very few dealers offer service contracts on every sale. But why? Beyond the fact you can better protect your customers after the sale, there are countless benefits that put more profit in your pockets. Think about the extra commas in your bottom line if you apply the same effort to your back-end profits as you do to protecting your front-end gross. Nice mental image, isn’t it? It starts with having a process: Think 300 percent. That means you offer 100 percent of your service contract menu to 100 percent of your customers 100 percent of the time. That doesn’t mean you’ll end up getting every single customer to purchase a service contract. But if you can bump your penetration from 25 percent to 50 percent, you’ve just doubled your profits from the back end of deals. Not to mention the more service contracts you sell, the more you stand to get back in return. You get out what you put in: A portion of every service contract you sell is set aside in the event a claim is paid on that particular vehicle. Check with your service contract provider to see what portion of that reserve, if any, you can get back when the contract expires. GWC Warranty dealers who qualify for our Elite Dealer Program begin earning a portion of those reserves back when they reach certain service contract volume milestones. Create enough service contract volume and WealthBuilder dealers can qualify for up to 100 percent of their underwriting profits. Service contract volume isn’t the only driver of that profit center. Selling quality vehicles and focusing on reconditioning will help keep reserve accounts full, as fewer claims are paid from them. Up your game with upsells: When it comes to immediate profits, upsells to richer coverage levels with longer terms will help build up reserve account balances.
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If you’ve followed the first two steps of this process and you work in upsell opportunities, you’ll be offering better contracts more often, making more underwriting profits available and, perhaps most important, improving post-sale satisfaction, setting you up for long-term profitable benefits as well. Repeat, refer, rejoice: Where you stand to benefit the most from a standardized back-end profit approach is when it comes back to you on the front end. How does that work? Imagine the customer you protected for a longer
term with richer component coverage. Now think about how he’ll feel when two, three, four or even five years down the road, the service contract you sold is still saving him money on unexpected repairs. It’s the ultimate customer satisfaction experience, and one customers will tell family and friends about. So when their cousin, friend or colleague needs a quality vehicle, where will they go? You guessed it – they’re coming to you. And when they’re in the market for another vehicle, you can be sure they’ll start their search where their last one ended – on your doorstep.
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ASSOCIATION NEWS
NEW AND RENEWING MEMBERS IIADA recognizes the following members.
Heckley Auto and Diesel Services Kevin Heckley Woodburn
The following members have joined* or renewed Homestead Motors their membership since our last issue of Car Lines. Jack Newenhouse Highland 4B Auto Sales LLC* Howards Auto Sales Nerwin Besirovic Bob Howard Ft. Wayne Mishawaka Davco Auto* J. D. Byrider Systems Jason Collins Angela Walsh Ft. Wayne Carmel Mame Auto Sales* K & J Auto Sales Yarep Tekle Ken Brophey Ft. Wayne Indianapolis Raptor Automotive* Malibu Motors Hemant Patel Ryan Trock Ft. Wayne Hammond Reliable Auto Sales* Mikes Auto Sales Todd Rhodes Scott Kidwell Ft. Wayne Indianapolis Indy Luxury Auto* Patrick’s Car and Truck Chuck Pandy Mike Harris Plainfield Whiteland Freedom Warranty* Snyder Auto John Skelton Richard Herma Chattanooga DeMotte Regulation and Revenue* Time Motors Myles Stevenson Robin Redman Louisville Evansville Car Credit* Velocity Motors Corbin Berkshire Steve Feasel Ft. Wayne Blufton Custom Car Care* Basic Auto sales Dan Evans Mark Stepp Decatur Attica Motor Vehicle Gerton Auto Sales Remarketing* John Gerton Andy Webster Mt. Vernon Crown Point Strategic Consulting Services Jeff Bond Fishers Approval Auto Credit Joe Inabnitt Martinsville Auto and Parts Locator Chip Koby Carmel Autobarn Sales & Leasing Darlene Pfledderer Francesville Berman’s Infiniti of Merrillville Jae Chang Merrillville Cruisin Auto Sales Marc Gray Madison Curtis Auto Sales Robert Curtis Indianapolis
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Grote Automotive Fred Grote Ft. Wayne H & H Auto Sales Tom Hilsmeyer Jasper Rainbow Auto Sales Robert Trock Hammond Tim’s Muffler and Auto Outlet Connersville TNT Auto Sales & Service Trent Davis Kokomo True Blue Autos Joseph Enneking Greensburg Turner Acceptance Johnathon Levin Skokie Affordable Auto Rental Richard Shaffer South Bend
Car Lines / January 2017
AMS Cars Alex Shapiro Indianapolis
Trent Auto Sales Tyler & Tricia Trent Vincennes
Clark County Auto Auction Dynamic Auto Wholesalers Matt Fetter Mohammad Darabaih Jeffersonville Highland
ASC Warranty Susan Beard Mountain Home
Car Stop of Terre Haute John Ellis Terre Haute
NJ Enterprises Nicholas Loyd Indianapolis
Auto Express Vale Jorge Mejia Indianapolis
Custom Auto Sales Ron Ondra Cedar Lake
Oak Motors Bob Okeley Anderson
Bells Auto Sales Hammond
First Class Auto Sales Doug & Tina Alvey Hebron
Ohio Valley Auto Brokers Darrel Eissler Newburgh
Gaeta Auto Sales Eva Gaeta Lafayette
Plainfield Auto Sales Michael Firestone Plainfield
Bob’s 31 South Auto Sales Bob Hayes Franklin
Del Real Automotive Group Tony Del Real Instant Auto Finance Frankfort Gretchen Carpenter South Bend Fritz Associates Fritz Kreutzinger Kim Graham Motors Fishers Kim Graham Greenwood H.T.D. Harold Drees One Way Auto Sales Thorntown Patrick O’Hern Hammond Indiana Public Quick Auto Auto Auction Dan Morrison Steve Archer Elkhart Indianapolis Isaacs Pre-Owned Autos Steven Isaac New Albany
Ritchie Auto Sales Danny Ritchie Middlebury
Justice Auto Center Wayne Justice Greenwood
South Bend Mishawaka Auto Auction Karen Smith Mishawaka
Keystone Insurers Group Lori Simpson Northumberland Kramer Motor Co Christopher Kramer Shelbyville Lewis Motor Sales Dave Lewis Lafayette Manheim Indianapolis Chuck Werner Indianapolis Mr. Care Auto Beecher Greer Camby Omni Auto Sales Robert Walczak Whiting Premier Truck Rental Rob Troxel Ft. Wayne Southwest Auto Sales Chet Kitch Ft. Wayne Stark Leasing Thomas Stark Indianapolis Teipen, Selanders, Poynter & Ayres Barnett Sapurstein Indianapolis
Spoors Auto Sales Dan Spoor LaPorte Used Car Factory Jim Wheeler Franklin Whitewater Motors Gary Ross West Harrison 30 West Auto Rick Jackson Warsaw Bessler’s Trackside Auto Depot Doug Bessler Batesville Bob Sullivan Motors Bob Sullivan New Palestine Burgess Motors Ron Burgess Michigan City C & G Auto Sales Harry Georgalas Gary Cars To Go Mark Dimmich Lafayette Cars2You Stoyan Stoyanov Mishawaka
Shaver Preferred Motors Michael Shaver Merrillville Stutzman Motor Sales Randy Stutzman Goshen Tom Wood Automotive Group Tom Wood Indianapolis Truworth Auto Edmund Hourigan Indianapolis Westside Motors Delphi Gagnon Motors John Gagnon Akron Greer Motors Kent Greer Thayer Jim Orr Auto Sales Jim Orr Mitchell Whitewater Motor Co Michael Ross Milan KLM Car & Truck Kathy Ellegood Columbus Circle City Enterprises Ron Povinelli Indianapolis
Greater Kalamazoo Auto Auction John Stumpf Schoolcraft Indiana Auto Auction Luke Dietrick Ft. Wayne Indy FIDI Auto Sales Van Hnin Indianapolis Joe’s Auto Sales George Krier Indianapolis Kesler Schaefer Auto Auction Steve Kesler Indianapolis NextGear Capital Lori Kahre Carmel Omega Auto Sports Jonathan Downs Noblesville Professional Financial Services Matthew Reece Spartanburg Royal Motors of Middlebury Middlebury Select Motors Vicky Krohn Evansville What A Dealer Motors Scott Eakins Kokomo XL1 Motorsports Craig Koch Indianapolis Thank you for your membership in Indiana’s trade association for independent dealers!
Alpha Omega Group Brad LeBlanc Loveland Ashton Agency Kathy Alexander Winter Park Bamberger Foreman Oswald & Hahn LLP Donn Wray Indianapolis City Karz Auto Sales Indianapolis Druley Investments Thomas Druley Laotto
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AUCTION NEWS
SAFETY WATCH
ADESA MAKES $40 MILLION INVESTMENT IN CHICAGO FACILITY Customer-Centric Technologically Advanced Location
ADESA recently announced it has officially opened its new ADESA Chicago auto auction. KAR invested approximately $40 million to develop the company’s most integrated, customer-centric and technologically advanced physical auction location to date. “As one of the largest car markets in the United States, Chicago is a top priority in our strategic growth initiatives. There are nearly 1,100 car dealers within a 100-mile radius of our centrally located Hoffman Estates auction facility. Our goal is to provide our services to the majority – if not all – of those customers,” said ADESA CEO and president Stéphane St-Hilaire. During the first sale, customers were introduced to some of the most innovative technology and concierge-level service in the industry, including mobile iOS applications that allow dealers to do even more while in the auction lanes. Right from their mobile devices, dealers can now: pay for their vehicles, request post-sale inspections and get gate passes emailed to their device. “More than 200,000 vehicles were sold at auction last year in Illinois. We are committed to expanding
our market share and facilitating the exchange of many of these vehicles. We are filling an unmet need in the market with our endto-end remarketing services and unmatched technology,” St-Hilaire said. Advanced technology also streamlines the checkout process with an iOS application that quickly and easily scans the driver’s license, gate pass and vehicle barcode. Mobile printers managed by ADESA employees also allow dealers to print bid badges from their mobile devices pre-sale. ADESA Chicago joins the already well-established presence of KAR subsidiaries in the Chicago market, Insurance Auto Auctions and Automotive Finance Corporation. ADESA Chicago is KAR’s seventh location within 40 miles of Chicago proper. This auction facility hosted its first sale on Friday, October 28, for dealers in the Chicago, Wisconsin and Indiana markets. It is conveniently located between six major interstate systems and near O’Hare International airport. The 167,000-square-foot facility is built across 65 acres and is currently hiring 100 employees.
MITSUBISHI RECALLS OUTLANDERS Possible Wiper Failure Mitsubishi Motors North America Inc. is recalling 94,534 model year 2011-15 Outlander Sport vehicles manufactured Aug. 26, 2010, to Jan. 5, 2015. In the affected vehicles, water may drop between the hood and the windshield and leak into the wiper motor breathing hole. The water may cause internal corrosion of the windshield wiper motor and the possible failure of the motor. Failure of the wiper motor can cause a loss of visibility, increasing the risk of a crash. MMNA will notify owners, and dealers will replace the wiper motor, free of charge. The manufacturer has not yet provided a notification schedule. MMNA’s number for this recall is SR-16-010.
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TECHNICALLY SPEAKING BY DAN DOMAN
SECURITY STARTS WITHIN Six Steps to Protect Your Dealership’s Data
According to data security firm Virtru, even as hackers become more and more sophisticated, much of the threat to your business actually comes from inside. The company notes that up to 28 percent of enterprise data security incidents come from inside an organization. They’re not saying any of your employees has malicious intent – though that is possible. What they are saying is your staff could be inadequately trained or your data security policies might be incomplete or not enforced. So here are six training and enforcement policies to help protect your dealership from possible threats: Strong passwords: While you’ve heard it before and it might seem obvious, enforcing strict password requirements – such as requiring a minimum of eight alphanumeric characters with symbols – and prompting users to change their passwords regularly are easy ways to protect against unauthorized access. A 2015 survey by TeleSign found 47 percent of people use passwords that are at least
five years old. Don’t let your dealership’s employees be among them. Authentication: Require multi-factor authentication on every device that accesses your dealership’s data. The process requires users to register their devices to a particular user ID and password. Registering a device requires employees to select and answer a series of “security” questions not easily guessed by anyone but the employee. In the event a user name and password was compromised, a hacker would still be unable to access your dealership’s systems unless that device was authenticated to those credentials, adding another layer of security.
IP blocking: Use IP blocking to limit user access from only dealership-approved IP addresses. That helps prevent unauthorized access from remote or mobile locations. Implementing IP blocking is a great opportunity to review and audit your dealership’s policies regarding remote access to integrated dealer systems and appropriate purposes and use. Now that you have secured the devices that are coming into your system, focus on your dealership’s employees’ day-to-day use. Check your user permissions: Not every employee needs access to all of your dealership’s data. Assign employee permissions and access to specific dealership systems that suit your business processes and
the employees’ respective responsibilities. That will help control their ability to access personal and confidential customer data. Use your systems’ notification or activity alert tools: They can be configured to alert you of potentially suspicious employee activity, such as changes to a user’s “setup” or “preferences.” Run a report: Regularly run a user report to ensure all who have access truly need it. The reports should provide detailed information on users including dealer ID and dealer name (for dealer groups), user name, last successful login date, no user activity for more than 60 days, and admin. It is a sound security practice to check your user reports against your active employee list. You should never have an ex-employee authorized to access your systems. Secure dealerships are successful dealerships, and maintaining a secure dealership begins with fundamental security practices. By implementing the six practices explained here, your dealership will be well on its way to helping ensure the security of your customers’ information – and a successful future. Dan Doman is chief legal and privacy officer of RouteOne LLC (www.routeone.com), a joint venture created by Ally Financial, Ford Motor Credit Company, TD Auto Finance and Toyota Financial Services. He is responsible for managing the legal, governmental, privacy, and security affairs of RouteOne LLC.
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LEGAL MATTERS
REGULATORY UPDATE
RECORD RETENTION FOR AUTO DEALERS
BY USED CAR NEWS
Guidelines
The following information is a guideline for auto dealers to use. Your attorney and accountant should also be consulted regarding your individual records. The IRS website at www.irs.gov is also a useful resource.
ACCOUNTING RECORDS
Audit Reports Accounts Receivable and Payable Ledgers Bank Statements & Reconciliations Cancelled Checks Capital Stock Book Cash Disbursement and Cash Receipts Journals Expense Reports Financial Statements General Ledger and Journal Inventory Records Notes Receivable Ledger Parts and Services Sales Journal Payroll Earnings Records Payroll Journal Payroll Time Cards Petty Cash Vouchers Petty Cash Summary Prepaid and Accrued Expenses Journal Subsidiary Ledger Trial Balances Vouchers-Vendors or Employees
CORPORATE RECORDS
Articles, By-Laws, Minutes and other Corporate Records
CORRESPONDENCE General Legal and Tax
OPERATIONS
Accident Reports Bills of Lading Credit Applications - denied Credit Card Slip Customer Files Damage Disclosure Statements Employment Applications - Terminated Employment Applications - Hired Insurance policies - expired Internal Repair Orders Junking Certificate Odometer Statements OSHA Records Purchase Orders Repair Estimates Repair Order Check Sheet Repair Order Retail Installment Contract - assigned Retail Installment Contract - not assigned Sales Invoices Service Contracts/Extended Warranties Shipping and Receiving Reports Vehicle Invoices Vehicle Purchase Orders Vendor Invoices
TAX DOCUMENTS
Form 8300 - $10,000 Cash Reporting Form Income Tax Returns (federal and state) IRS Audit Results Unemployment Tax Returns (federal and state) Withholding Tax Returns (federal and state) Withholding Tax Statements Compiled by: IIADA Staff
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Permanently 8 years 5 years 5 years Permanently 8 years 6 years Permanently Permanently 8 years 8 years 8 years 5 years 5 years 3 years 3 years 3 years 3 years 8 years 8 years 8 years Permanently 10 years Permanently 6 years 10 years 25 months 1 year 10 years 5 years 3 years 3 years past termination Permanently 3 years 3 years 5 years 6 years 6 years 9 months 2 years 6 years 10 years 10 years past expiration 6 years 10 years past expiration 6 years 6 years 10 years 6 years 5 years Permanently Permanently 5 years 5 years 5 years
FTC ISSUES REVISED USED CAR RULE Changes to Buyer’s Guide
The Federal Trade Commission has announced final amendments to its Used Car Rule. The FTC has sought public comments on a series of proposed changes to the rule, which requires car dealers to display a window sticker, or “Buyers Guide,” on used cars offered for sale. The guide discloses whether the dealer is offering to sell a used car “as is” (without a warranty), or with a warranty. If the sale is with a warranty, the guide discloses the terms and conditions, including the duration of coverage, the percentage of total repair costs the dealer will pay, and the vehicle systems the warranty covers. In states that do not permit “as is” used car sales, dealers must use an alternative guide that discloses whether the sale is with a warranty or with implied warranties only. In December 2012, the FTC sought public comments on proposed changes to the Buyers Guide as part of its systematic review of all of the agency’s rules and guides. In response to comments received, the agency sought comments on additional proposed changes to the Used Car Rule and invited comments on alternative approaches that public commenters proposed for the vehicle history disclosure and the “as is” statement. As announced, the FTC is revising the Buyers Guide by: • Changing the description of an “as is” sale. • Placing boxes on the face of the Buyers Guide dealers can check to indicate whether a vehicle is covered by a third-party warranty and whether a service contract may be available. • Providing a box dealers can check to indicate an unexpired manufacturer’s warranty applies. • Adding air bags and catalytic converters to the Buyers Guide’s list of major defects that may occur in used vehicles. • Adding a statement that directs consumers to obtain a vehicle history report and to check for open recalls. The statement also instructs consumers to visit ftc.gov/usedcars for information on how to obtain a vehicle history report and to visit safercar.gov to check for open safety recalls. • Adding a statement, in Spanish, to the English-language Buyers Guide, advising Spanish-speaking consumers to ask for the Buyers Guide in Spanish if the dealer is conducting the sale in Spanish. • Providing a Spanish translation of the statement that dealers may use to obtain a consumer’s acknowledgement of receipt of the Buyers Guide. The amended rule, which takes effect Jan. 27, permits dealers to use their remaining stock of Buyers Guides for one year after the effective date.
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MARKETING MATTERS BY KENNY ATCHESON
ELIMINATE WASTE IN ADVERTISING Data-Driven Decisions
When consulting with a dealer, I usually find waste in their advertising. A multilocation dealer tends to have a bigger budget and may have more waste. That’s not always the case, but a multi-location dealer with a larger advertising budget sees media salespeople who are after his full budget. It’s how they get paid. I prefer to see dealerships with larger budgets spend their budget only if it’s working. This is why tracking and measuring as much as possible helps define what the budget actually is or should be. It may be fluid throughout the year, not just during tax time. The marketing director for the current winning presidential candidate said, “We used digital data to decide where to spend the budget offline.” Data-driven decisions remove human bias from budget decisions. Recently, we launched a new message with media to help dealers who are already using a program to generate new business
before tax returns arrive. A dealer called me to ask about it, and I said, “I expect it to work, but we are testing it. The data will answer that question.” At my recommendation, several of our larger clients have saved money on advertising by moving a portion of their budget to media and delivery that is more effective… and it’s trackable. For example, $20,000 per month may be reallocated to a different strategy, but I want to track effectiveness. We may find the last $5,000 of that spend is not working out because it is used to reach a potential customer base that is geographically too far away. So that portion of the budget is cut and the same or more cars are sold with less investment. Dealers with smaller budgets have their share of waste in advertising. The culprit is often the geographical area in which they advertise. Much of the time their radius is too large. There is a slight chance someone who lives 100 miles away will buy from them if given the chance, but they shouldn’t spend money trying to lure them in. That’s like management in a steakhouse spending good money on advertising targeting vegetarians just in
AUCTION NEWS
BY USED CAR NEWS
case there is a chance they may come in for a fancy salad. Whatever you do, track and measure so you can tweak or cut it. Kenny Atcheson is the president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy an Army to Battle for Your Business. Kenny teaches workshops, speaks at conventions and 20 Groups, and his company offers several marketing and advertising programs. His website is www.DealerProfitPros.com.
AUCTION NEWS
NAAA INDUCTS OWNER KAR AUCTION SERVICES ACQUIRES FLINT AUTO AUCTION OF TWO AUCTIONS Detroit-area Facility Will Operate as ADESA Flint INTO HALL OF FAME Patty Stanley Honored Patty Stanley, co-owner of Carolina Auto Auction and Indiana Auto Auction, was inducted into the National Auto Auction Association Hall of Fame during the association’s recent convention. NAAA has given the honor each year since 1968. It is bestowed on those who have worked for the improvement of NAAA and consistently followed the high standards of the association’s Code of Ethics. Patty Stanley joins her husband Henry Stanley, a former NAAA president, who was inducted into the Hall of Fame in 2013. She currently serves as ServNet’s chairman of the board and has been in the auction industry since 1969, when she and her husband purchased Capital Auto Auction in Columbus, Ohio, which they renamed Ohio Auto Auction. Charlotte Pyle, co-owner/operator of two West Virginia auto auctions, presented the award to Stanley, noting that their professional and personal relationship spans nearly three decades.
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KAR Auction Services announced it has acquired Flint Auto Auction, a whole car auction facility in Flint, Mich. The facility will operate as ADESA Flint, strengthening the national footprint of KAR’s ADESA business unit and extending the reach of KAR’s integrated operating model. “Fortifying KAR’s presence in the epicenter of the U.S. automotive industry has been a long-term strategic priority,” KAR chief executive officer and chairman Jim Hallett said. “ADESA Flint enhances KAR’s end-to-end remarketing platform in Detroit and positions us to accelerate growth in the very dynamic Midwest marketplace.” ADESA Flint joins KAR’s other primary business units, Insurance Auto Auctions and Automotive Finance Corporation, in the Detroit market and is KAR’s sixth location in Michigan. Together, the companies provide a full range of whole car, salvage and financing
options and a differentiated suite of innovative products and technology solutions. Located just northwest of the Detroit metro area, Flint Auto Auction is a fully automated, eight-lane auction on 60 acres. The site also includes full-service reconditioning facilities, including a body shop and mechanical shop. “ADESA is a leading brand in the industry, and Flint Auto Auction is very pleased to join its international network of auctions,” Flint Auto Auction president Bill Williams Jr. said. “Both companies share a culture of innovation and a strong commitment to customer service. Joining the KAR platform will help us meet the demands of our increasingly sophisticated buyers and sellers, many of whom have been with us for generations.” Lawrence Cubitt will remain as general manager and other members of the auction team will retain key leadership roles. The auction hosts factory, fleet and dealer sales each Wednesday and has received multiple industry recognitions based on service and performance.
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ASSOCIATE MEMBERS
IIADA Associate Membership is available to automotive related businesses. Please call 800-310-3112 for more information on Associate Memberships. 700 Credit
Ann Carson 202.422.2351 aclarkA@700credit.com www.700credit.com
Affordable Computer Systems
DealerRater
HBK CPAs & Consultant
Dealertrack
Heritage Acceptance Corporation
Amy Rosenfield 800.266.9455 amy@dealerrater.com
Greg Goresen 800.488.9992 acsi@digicove.com www.acsds.com
Diane Zewalk 115 Pohesanut Dr., Ste. 201 Groton, CT 06340 860-448-3177 Fax: 860-448-3187
AFC
Dealer Funding
Ryan Lewis 2950 E. Main St. Plainfield, IN 46168 317-453-1172 ryan.lewis@autofinance.com
Ally-Smart Auction
Jeff Kubicki 812-455-7967 jeffrey.kubicki@ally.com www.smartauction.biz
Alpha Omega Group Brad LeBlanc 513.317.9861 brad@aogllc.com
Ashton Agency Inc.
Dealer Insurance, Bonds Kathy Alexander 407.678.5900 kalexander@ashtonagency.com
Auto Services Co. Inc. Susan Williams/ Clayton Morgan 800-442-7116
AutoZone
Gerry Sutter gerald.sutter@autozone.com 440.263.3389
Black Book National Auto Research Larry Knapp lknapp@blackbookusa.com 800.554.1026
Curt Massey 770.883.3883 cwm@dealerfunding.com www.dealerfunding.com
Diversified Vehicle Services
Glenna Deviers 317.862.9100 www.diversifiedvehicleservices.com
Drive1 USA, Inc.
Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 Phone: 219.670.0542 Email: Bnorton@drive1usa.com
Donn Wray, Attorney at Law Bamberger, Foreman, Oswald & Hahn, LLP Phone: 317-464-1591 dwray@bambeger.com
Envirotest Titling & Registration Kevin Lewis 1445 Brookville Way Suite G Indianapolis, IN 46239 317.322.0020 www.etrindiana.com
Envirotest Titling & Registration Kevin Lewis 1111 S. Green River Rd. Suite 100 Evansville, IN 47715 812.909.0116 www.etrindiana.com
Envirotest Titling & Registration
Rex Collins 330.758.8613 rcollins@hbkcpa.com
Curt Holmes cholmes@hfgnet.com
Insurance Professionals-Dealer Specialists Mike Lee 8509 Zephyr Dr. Indianapolis, IN 46217 317-432-1092 Fax: 317-300-0501 teamallenc21@comcast.net
Insurance Professionals of New Palestine
Universal Publications
Mighty Auto Parts of Central Indiana
Verifacto, Inc.
Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.com
David McCabe 317.685.8650 mightyautopartsindy@gmail.com
Custom Facilities
GoldStar GPS
317.259.0038 lcolle@cfidm.com BuildMyDealership.com
CVR-Computerized Vehicle Registration
Ron Zimmerman 317.522.6256 Fax: 866.231.4996 rzimmerman@cvrreg.com
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guided by SPIREON Cesar Yepez 949.697.3459 cyepez@spireon.com
GWC Warranty
Carmie Fruits - Indiana Dealer Consultant PO Box 7900 Wilkes-Barre, PA 18773 317-374-6271 cfruits@gwcwarranty.com www.gwcwarranty.com
Certified Public Accountants Barnett Sapurstein, CPA 317.598.6700 bsapurstein@teipencpa.com Jonathon Turner Phone: 773.290.5007 turneracceptance.com PO Box 628 Plainfield, IN 46168 317.203.5118 publicationsinc.universal@ yahoo.com Enrique Castiblanco info@verifacto.com 678.916.8311
Nationwide Cassel LLC 773.777.7600 www.nac-loans.com
NextGear Capital
Penn Warranty Corporation
John Skelton 423.207.1333 www.freedomwarranty.com
Dave Boekholder 800.557.1449 dboekholder@spireon.com
Lincolnway Insurance Services
Frazer Computing Inc.
Chris Walsh 812.988.8300 www.consolidated autoservices.com
SPIREON
Turner Acceptance
Lori Simpson 570.473.2146 lsimpson@keystoneinsgrp.com
Cars.com
Consolidated Automotive Services Freedom Warranty
Jane Saxon, CPA 3925 River Crossing Pkwy. Indianapolis, IN 46240 317.472.2183 jsaxon@somersetcpas.com
Keystone Insurers Group
P. O. Box 20229 Knoxville, TN 37940 865.573.3355
6196 US Hwy 11, P O Box 569 Canton, NY 13617 888.963.5369 www.frazer.com
Somerset CPAs
Teipen, Selanders, Poynter & Ayres, P.C.
Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com
175 W. Jackson Blvd., 8th Fl. Chicago, IL 60604 800-298-1460 dealers.cars.com
Lester Dean PO Box 9700 Wyoming, Michigan 49509 616.438.3591 Fax: 616-245-5978 lesterd@reliableautofinance.com
Network Benefits of Mid America 35 W. Main St. P.O. Box 467 New Palestine, IN 46163 Office: 317-861-4411 800-688-7988 Cell: 317-750-3032
Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 219.661.8220 www.etrindiana.com
CAR Financial
Reliable Auto Finance
Jude Tuma/Michael Roe 1081 Hanover St. Wilkes Barre, PA 18706 800-356-9441 michael.roe@pennwarrantycorp.com www.pennwarrantycorp.com
Preferred Warranties, Inc.
Gregg Reidenbach/Guy Loeffler 800-548-1121 info@warrantys.com www.warrantys.com
Professional Financial Services Matt Reece Phone: 864.237.6090 Matt.Reece@pfs-corp.net Nat Rieder Nat.Rieder@pfs-corp.net Phone: 614.935.9808
Regulation and Revenue LLC Myles Stevenson 502.387.5485 myles@reponotice.com
January 2017 / Car Lines
19 1/3/17 9:38 AM
MEMBER BENEFITS
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JOIN TODAY
For $295 You Get Membership In Both IIADA and NIADA Plus All Of The Following Benefits And Even More That Are Not Listed! Programs for Extra Profit
• Dealer Bond at Member Rates • Dealer Insurance • Health Insurance • Forms • Financing • Software • IIADA Help Desk • National Dealer Network Skip Tracing Contacts • College Scholarships • Prescription Drug Card • National Dealer Network
Publications
• Car Lines Publication • Used Car Dealer Magazine • Federally Required Safeguards Policy Document • Federally Required Red Flags Rules Policy Documents • IRS Audit Technique Guide For the Independent Used Car Dealer • Current Industry Information • Legislative Alerts • NIADA Annual Market Analysis
Professional Development
• Certified Master Dealer Program • Free Access to NIADA.tv Training at Your Business • Access to IndependentDealer.com where dealers go for answers • NIADA Membership and Window Decal • IIADA “Symbol of Integrity” Logo and Window Decal • NIADA Annual Convention and Trade Show • Code of Ethics
2017 Member Auction Coupons For A Total Savings Of $3,000! abc Detroit/Toledo ADE of Indianapolis ADESA Cincinnati/Dayton ADESA Flint ADESA Indianapolis ADESA Lansing Anderson Auto Auction Clark County Auto Auction Dyer Auto Auction Fort Wayne Truck and Auto Auction Greater Kalamazoo Auto Auction Greater Mishawaka Auto Auction Greater Rockford Auto Auction Indiana Auto Auction, Inc. Indianapolis Car Exchange Kesler-Schaefer Wholesale Auto Auction Manheim Chicago Manheim Cincinnati Manheim Indianapolis Manheim Lexington Mobile Sale Manheim Louisville Manheim Ohio Mt. Vernon I-64 Auto Auction West Michigan Auto Auction Wolfe’s Auto Auctions-Evansville/ South Bend/Terre Haute
AUC T ION C OUP ON B OOK P RIN T ING SP ONSORED B Y: • AFC • CVR • ASC WARRANT Y • 700 CREDIT AMERICAN RECOVERY ASSOCIATION
Representation
• State Lobby and Consultant Services • State Legislative and Regulatory Tracking and Reporting • Federal Lobby and Consulting Services • Federal Legal, Legislative and Regulatory Tracking and Reporting • Indiana Department of Revenue Liaison • Indiana Dealer Services Liaison • Indiana Bureau of Motor Vehicles Liaison
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SUPPORT IIADA! We are your voice in Indianapolis.
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Indiana Independent Automobile Dealers Association
MEMBERSHIP APPLICATION The IIADA Has the Independent Auto Dealer Covered! Phone: (219) 661-0287 • Fax: (219)663-5294 iiada@comcast.net
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JOIN TODAY For an annual membership investment of only $295,
which includes an NIADA membership, you get a $3,000 Auto Auction Coupon Book and a whole lot more!
GENERAL INFORMATION Dealership Name ____________________________________ Dealer Lic#_______________ Mail Address ________________________________________________________________ County _____________________________________________________________________ City/State/Zip________________________________________________________________ Phone _____________________________________________Fax ______________________ E-mail_______________________________________________________________________ Website_____________________________________________________________________ Owners (Please Print) _________________________________________________________ Recommended By _____________________________________________________________
PAYMENT INFORMATION oCheck oVisa oMasterCard Credit Card Number: _____________________________________Expiration Date: ________ Signature: _____________________________________________________________________________
Please include your email address, phone and fax numbers so that we can easily communicate with you. Membership dues are $295 for 12 months from the date you join, and your National lADA dues are included. Please send application and check or credit card information to: IIADA, PO Box 1393, Crown Point, IN
This is our personal invitation to you to join the State and National Independent Automobile Dealers Professional Associations It is important to me to be recognized as a professional! Enclosed are my annual dues of $295 to make sure that my business has all the advantages IIADA/NIADA Inc., provides to put me at the forefront of my profession. By completing this form, I agree to abide by the Code of Ethics. Also, I am consenting to and giving IIADA/NIADA Inc., its affiliates and subsidiaries, my permission to (until I give written notice to discontinue) contact me and provide information to me at the mailing and email addresses, telephone and fax number(s) I have provided.
46308
Note: 25% of dues are non-deductible
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PRODUCTS & SERVICES BY DAVE MEYER
PAID ADVERTORIAL
TIPS FOR A PROFITABLE TAX SEASON How to Make the Most of It
As more consumers find stronger financial standing, their purchasing power increases. However, their credit scores don’t always reflect the same progress. The end result is a massive pool of subprime and deep subprime consumers ready to buy cars this tax season. Even large lenders are relaxing their credit score requirements to attract the subprime market. It’s a pretty big indicator that there’s opportunity to go around, whether you’re a BHPH dealer or own a small franchise. It also shows that there’s a lot of competition out there. So, with more car loan options available to subprime buyers, how do you increase sales and make the most of tax season? If you’re smart and proactive you can bring in up to 50 percent of your annual sales in just 8-12 weeks. That’s money in the bank or money you can reinvest in your business by adding to your inventory.
As more consumers find stronger financial standing, their purchasing power increases. However, their credit scores don’t always reflect the same progress. Tips for a Profitable Tax Season 1. You need to be able to say “yes” to subprime and deep subprime buyers. With technology like GPS vehicle tracking protecting your assets, the inherent risk of serving this type of buyer is drastically reduced. Without it, you lose a large pool of tax season buyers. 2. Have a plan in place to secure every deal. Competition is on the rise and every customer who walks onto your lot is a golden opportunity. If your sales process is long and cumbersome, they’ll walk off the lot and you’ll be out of the sale. To make your sales process run smoothly, have GPS preinstalled on all of your vehicles to eliminate wait time for your customers. 3. Don’t let things slip just because sales are on a roll. While a buyer may have money for the down payment, it’s important they can also afford the payments. You want airtight underwriting guidelines from your applications to your follow-through on STIPs verifications. GoldStar’s Reference Genie can
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save you time by verifying work and home addresses without picking up the phone. 4. Remember that the sale is only the beginning and profits are only profits after they’ve been collected. Have policies in place regarding partial payments, at what point recovery becomes an option and if a GPS vehicle tracking solution should be used to support your collection efforts. 5. Think out of the box. If you hadn’t heard, the PATH Act is now a federal law. That means tax refunds won’t be sent out prior to February 15. Instead of letting the new rules delay your tax season surge, start now. Yes, now! You can get way ahead of the rule and your competition by partnering with a tax and technology professional who can estimate refunds for your buyers. Once you’ve determined the refund schedule, you can set up irregular or later payments based on when the refund will come in. Layer that with an industry trusted GPS solution provider, and you’ll have peace of mind when it comes to your bottom line.
At the end of the day, it’s all about maximizing your revenue while maintaining the peace of mind that your business and investments are safe. During tax season more than ever, the opportunity is there and the time is right. Don’t let the downside of selling to subprime buyers stop you from reaping the profits! A solution like GoldStar GPS can help minimize your risk with automated reference checks up front, and on the back end it has the ability to keep buyers current using invehicle payment reminders. Of course, you’ll also be able to find and recover assets when necessary. Say “yes” to more buyers with confidence this tax season and maximize your potential profit. Dave Meyer is the executive vice president of Spireon GoldStar GPS.
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