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Inside:

Seven Essentials for Your Reputation IIADA Legislative Update Golf Tournament

IIADA GOT THE JOB DONE!

EFFECTIVE JULY 1, 2016

HEA 1365 INCREASES DAYS FOR TITLE DELIVERY FROM 21 TO 31 AND TEMPORARY PLATES TO 45 DAYS. FALL SUMMIT PAGE 18

GOLF TOURNAMENT - AWARDS DAY - TRADESHOW

DALLAS, TEXAS Permit No. 2079

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PRSRT Standard U.S. Postage

VISIT US AT W W W.IIADA.COM

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IIADA RECOGNIZES THE FOLLOWING MEMBERS The following members have joined (denoted by *) or renewed their membership since our last issue of Car Lines. Crossroads Auto Recycling* Michell Kyger Frankfort Anderson Auto Auction* Doug Bowmer Anderson Custom Facilities* Charles Walker Indianapolis Diversified Vehicle Services* Glenna Devers Indianapolis HBK CPA’s & Consultants* Rex Collins Canfield Mauck Towing* Michelle Mauck Borden Payless Autos* Wajid Safdar Indianapolis Burns Auto Sales* Dan Burns Macy Lawrence Motorsports Auto & Trailer Sales* Mike Lawrence Aurora Rightway Automotive Credit* Lori Brethour Verifacto* Barauch Pappo Norcross AF Sales and Service Indianapolis All Star Autos Kelly Crowl LaPorte

Dependable Auto Sales Ralph Butrum Indianapolis

Best Deal Auto Sales Dave Baldwin Fort Wayne

D & H Auto Sales Troy Deppe Danville

GMG Motors Curtis Sandefer Morgantown

Best Deal Auto Sales Import Dave Baldwin Fort Wayne

Dealer Funding Melvin Prim Atlanta

Jamerson Auto Sales Paddy Jamerson Anderson

Del Real Auto Sales Eddy Del Real Lafayette

Drive Time Indianapolis

Drive 1 USA Bruce Norton Crown Point

Pletcher Motor Company Rodney Pletcher Goshen

Envirotest Systems Jennifer Kharchaf Crown Point

Gray Auto Brokers Brad Gray Greenfield

Prestige Auto Sales James Horner Indianapolis

Feldman Auto Center Richard Feldman Greensburg

Hillside Motors Dushan Galic Schererville

RC Leasing Randy Chupp Elkhart

Frankies Auto Sales Alan Stock Dyer

Reliable Auto Finance Lester Dean Wyoming

Gebhardt Motor Sales Tim Gebhardt Osceola

Manheim’s Louisville Auto Auction David Kaflik Clarksville

Shaver Motors of Allen County John Shaver Sr. Ft. Wayne

Great Deals on Wheels Rich Newenhouse Michigan City

Jim Butner Auto & RV Tammy Naville Clarksville

Ski’s Body Shop and Truck Sales Dave Zatorski Rockville Superior Auto Nick Schenkel Fort Wayne Welch Motors William Welch Jr. Rolling Prairie 45th Street Motors Kirk Slikas Highland

Asay Motor Sales Carlos Asay Lafayette

Affordable Computer Systems Greg Goresen Jeffersonville

Bailey Brothers Used Cars Marvin Bailey Shoals

Andrews Auto Sales Dan Francis Evansville

Bart’s Car Store Bart Churchward Columbia City

Best Buy Motors Jaspal Gothra Lafayette

Big Daddy’s Auto Sales David Bohall Indianapolis

Best Deal Auto Sales David Baldwin II Auburn

Clos Auto Shawn Clos New Market

Best Deal Auto Sales Dave Baldwin Warsaw

Concord Cars David Jamesen Elkhart

CarMax Auto Superstores David Unice Richmond

Greg’s Auto Sales Evansville Indianapolis Car Exchange Danny Hockett Whitestown Mint Auto Sales Sam Kamdar Fort Wayne Preferred Auto Greg Bradshaw Kendalville Schultz Auto Sales Bob Schultz DeMotte Slone Automotive Enterprise Donald H. Slone Clarksville Universal Publications Phil Davis Plainfield

McHugh Motors Tim McHugh Indianapolis Patriot Sales Howard Curry Liberty SweeCars Chuck Surack Fort Wayne Thompson Brothers Auto Sales John Thompson Lafayette Ultimate Auto Deals Luis Hernandez Fort Wayne Valley Motors Enterprise Rick Jones Mooresville Westfield Motor Sales Al Johnson Noblesville White’s Auto Sales Ed White Rensselaer

Vincennes Autoplex Keith Webb Vincennes American Imports Jeff Cork Speedway Andy Zay Leasing Andy Zay Huntington

THANK YOU FOR YOUR MEMBERSHIP IN INDIANA’S TRADE ASSOCIATION FOR INDEPENDENT DEALERS. CAR LINES

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Inside J U N E

Nominate a Dealer for IIADA’s 2016 Quality Dealer of the Year

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NEW & RENEWING MEMBERS | PAGE 03

IIADA LEGISLATIVE VICTORY Effective July 1, 2016 | PAGE 06

LESSONS LEARNED FROM IRATE CUSTOMERS Take the High Ground | PAGE 08

IS YOUR CPA A STRANGER FROM MAY UNTIL DECEMBER? Your CPA Should be a Trusted Business Advisor | PAGE 08

SEVEN ESSENTIALS FOR YOUR REPUTATION Building and Repairing Your Dealership Reputation | PAGE 14

IIADA LEGISLATIVE UPDATE Post-Session Review | PAGE 16

What’s New

BHPH DEALER MAGAZINE

NIADA now has a magazine devoted to Buy Here-Pay Here! The BHPH DEALER Magazine is published bi-monthly on the even months of the year and is included as a supplement to NIADA’s Used Car Dealer magazine. Visit www.niada.com/bhph_dealer_magazine.php to check out the inaugural issue.

Advertiser’s Index

700 Credit .........................................................................14 ADESA..................................................................................IFC Autotrader ...................................................................... IBC Black Book............................................................................5 Dyer Auto Auction.......................................................16 Kesler Schaefer AA.........................................................9 Manheim ....................................................................10,11 Manheim Indianapolis................................................3 Manheim Pennsylvania..........................................13 NextGear Capital..........................................................12 PassTime ...........................................................................15 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 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 Car Lines or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2016 by NIADA Services, Inc. All

STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.com EDITORS Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT & GRAPHIC ARTIST Chantae Arrington • chantae@niada.com ART DIRECTOR Christy Haynes • christy@niada.com PRINTING Nieman Printing

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A PPL ICAT ION DE A DL INE: JULY 1, 2016

Applications are now being accepted for Indiana’s 2016 Quality Dealer of the Year. The winner will represent Indiana at the 2017 NIADA Convention and compete for the coveted NIADA Quality Dealer of the Year award. The public recognition and prestige associated with this award will produce many benefits for your dealership. Our 2016 Indiana Quality Dealer of the Year will be named and recognized at our 29th Anniversary Golf Tournament and Awards Day on September 11.

ELIGIBILITY: DEALERS MUST BE NOMINATED BY AN IIADA MEMBER OR SPONSOR. TO REQUEST AN APPLICATION: EMAIL IIADA@COMCAST.NET OR CALL 219.661.0287.

Board of Directors Andy Zay President Zay Leasing & Rentals, Inc. 4957 N. Broadway Huntington, IN 46750 Phone: 260.356.1588 azay@sbcglobal.net Fritz Kreutzinger Chairman of the Board Legislative Chairman Fritz Associates P.O. Box 168 Fishers, IN 46038 317.842.2228 Fax: 317.842.7900 fritzauto@aol.com Tony Del Real Vice President Del Real Automotive Group 1002 Walnut Avenue Frankfort, IN 46041 Phone: 765.446.9204 tdelreal@delrealauto.com Bruce Norton Treasurer Drive1 USA, Inc. 1512 W. 96th Avenue Suite C Crown Point, IN 46307 Phone: 219.670.0542 Bnorton@drive1usa.com Sharon Brennan Secretary 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

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

Travis Baldwin Best Deal Auto Sales 2526 Scotswolde Drive Fort Wayne, IN 46808 Phone: 260.483.7999 travisbaldwin@ bestdealautosalesonline.com Taryn Sanchez Whites 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

L EG ISL AT I V E NE W S

EFFECTIVE JULY 1, 2016 DAYS FOR DELIVERY OF TITLE INCREASES TO 31 AND TEMPORARY PLATES INCREASE TO 45 DAYS

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BY IIADA STAFF

THE INDIANA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION UNDERSTOOD OUR MEMBERS’ INABILITY TO PROVIDE CUSTOMERS WITH THEIR TITLE IN 21 DAYS AND WE ARE PLEASED TO ANNOUNCE THE LAW HAS CHANGED!

The types and geographic locations of lenders, the geography of our customer base, mail delivery, and title processing have changed. These changes are the reason we educated and worked with our legislature to make delivery of title time requirements more reflective of business conditions. CUSTOMER FINANCING has become specialized with subprime financing making up the majority of the financing market. These companies, along with credit unions and state and nationally chartered banks, have given us the ability to meet the needs of our individual customers. However, the physical location of lenders can be almost anywhere, making it increasingly difficult to get titles. This is in contrast to times when the majority of lending was underwritten by a local bank or credit union that held the title in their safe, all located down the street from the dealership. INTERNET PRESENCE is now as important as physical location to most dealers. Today’s customers are shopping your inventory online from other states and countries. BUYING HABITS have changed from the times when the majority of vehicle sales came from a customer driving by the dealership to see your inventory or seeing an ad in the local paper. The logistics of delivering a title to a customer many states away increases the

time needed to get the title to the customer. CONSUMER PROTECTION remains in place. The safeguards that protect a consumer purchasing a vehicle in Indiana include: • Indirect Retail Lenders – Lenders are continuously monitoring their dealers to make sure they are compliant and solvent. • Floor Plan Inspections – Dealers who borrow money to finance their inventory are subject to regular inspection by their floor plan lenders. • Dealer Inspections – Dealers are subject to inspections by the Dealer Services Division under the Indiana Secretary of State's Office. • Consumer Complaints – A bad online review can do a lot of damage to a dealer and his reputation. Indiana’s attorney general investigates customer complaints against Indiana dealers. • Dealer Bonds – Dealers must maintain a $25,000 bond to ensure clear title. WORKING TOGETHER we were able to get this legislation written and passed. Fritz Kreutzinger, IIADA legislative chairman, laid much of the groundwork for this legislation through the Motor Vehicle Advisory Board meetings with the Indiana Secretary of State. Indiana’s new car dealers endorsed the legislation to extend time for delivery of title. Thank you to the legislators who listened and heard our concerns! IIADA is working for you!

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M A N AG E MEN T M AT T ERS

Lessons Learned From Irate Customers Boss Deborah is sitting in her office when she hears her secretary, Mary, attempting to get a word in as she deals with a rather stubborn and authoritative customer. The call is transferred into Deborah’s office. Mary announces, “Mr. Money is on the phone. He is angry and demands your help.” As Deborah reaches for her phone, how she handles the next few seconds will determine whether Mr. Money will raise or lower the bottom line on the next monthly report. In the time it takes to reach for the phone and say “Hello,” you must have the focus and knowledge necessary to take control and lead the caller back into your corner.

and address his concerns. Let’s begin with the approach – how you manage the window between the “ring” and the “answer” defines the experience as educational, confrontational or successful. In the seconds before answering the call or beginning the contact, keep in mind that the best way to initiate control is to take the high ground. Not just the high road of virtue and doing the right thing, but the high ground as a vantage point to observe the situation as a whole. Prepare to remove yourself from the fray and look at the big picture. The best means of accomplishing this is to remember these rules: Do not speak until you have truly listened: The opposite of speaking is not listening – it is waiting to speak. Listening is a separate task and, in fact, is an art. The easiest of all customers to deal with in the world of irate customers is the one that just wants to be heard. Everyone has dealt with someone who expressed every detail of his complaint to every

Preparedness comes from having the structure in mind that will allow your persuasive and reassuring abilities to control the situation. Maybe it was your staff, your management team or a salesman, but the buck stops with you. As you listen to the complaint, pay attention to how the caller became disgruntled and match his words to the organizational structure and discipline you have in place. Many times the caller reached your desk because someone in the chain of command failed to listen

person in the organization. The repeated telling of the story is your first indication that all he needs is understanding and reassurance. He wants someone to listen. Make that person you. Do not defend until you have heard the attack: Step back and allow the speaker to talk. As you listen, do not formulate your response – follow the speaker with an eye toward understanding the nature of the allegations. The ability to effectively challenge someone’s argument hinges on your understanding

TAKE THE HIGH GROUND BY JOE CURCILLO

AC C OUN T ING M AT T ERS

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of their argument, not on the merits of your own. Taking control of a situation requires paying attention to what is being said so you can take all you’ve heard and use it as you map out your proposed solution. Adopting the other person’s arguments makes it much more difficult to logically rebuff your offer of resolution. Identify the true nature of the complaint and the complainant: There are many reasons a person complains. Dissatisfaction with a product or service is obvious, but some complaints are born and nurtured in environments outside of your control. Taking control of those complaints requires listening and exploring with questions the circumstances leading the customer to your door. Some people are simply disappointed with your entire industry. It is necessary to set yourself apart from the herd and let the speaker know you care. Some complaints come from a lack of clear expectations. Explore their concerns and guide them back to a more realistic path. The most difficult complainant is the person who, due to his own shortcomings, is unable to understand the reason for the problem is his inability to follow instructions or guidance. It is essential to speak to those people as you would to a friend. Make sure your vocabulary and speech is simple enough that they can follow your directions to the letter – but do not allow yourself to come across as condescending. That can be avoided by remaining social and human as you address your customer. Focus on areas in which you and your company can improve: Learn. Even the most irrational or self-absorbed customers can teach you valuable lessons to improve service. By looking for areas of improvement in every conversation, you will not only actively listen, you’ll enjoy the opportunity to grow and become better. Joe Curcillo, “The Mindshark,” is a speaker, entertainer, lawyer and communications expert, and an adjunct professor at Widener University School of Law. For more information, visit www.themindshark.com.

Is Your CPA a Stranger From May Until December?

YOUR CPA SHOULD BE A TRUSTED BUSINESS ADVISOR BY SOMERSET CPA

Now that tax season has passed, don't let your relationship with your CPA fade. It is easy for both the CPA and the business owner to drift apart once the final tax return is signed and focus on much more pleasant tasks. However, this is the time of year your CPA can and should add value to your business beyond tax preparation. A CPA should be a trusted business and personal advisor – a partner and consultant prepared to offer suggestions and strategies to move your business forward and assist you in reaching your personal goals during the year. A timely meeting with your CPA to discuss short term and long term visions, and how those visions become reality, will pay rewards to the business owner – a tune up, if you will. This should be a time to discuss concerns such as an exit strategy for the retiring owner, a succession plan for the business – perhaps with the next generation or trusted employees. Discussions may include ideas how to retain and motivate high performers and key individuals. Perhaps you are considering expansion – a new market, an increased workforce or increased capital assets. A discussion with your CPA can provide recommendations, strategies, programs and clarity on how to not only finance this expansion but also a time frame for a return on your investment. Perhaps your business is moving forward at a nice, even pace and all seems well. Now is the time to address the wide range of missed opportunities your advisor can help you identify. This may be sales tax refunds left on the table, addressing internal controls that allow you as the owner more freedom with less worry, re-evaluating your current financing, considering your personal goals, college planning, retirement planning, etc. There are many months left in 2016 to make impactful changes in your business. Include your advisor along the way. Remember that by the time December rolls around, it is very difficult for your advisor to make recommendations for the previous year. If you would like to work with a CPA who is more than a tax accountant, please contact us at Somerset. Our goal is to be your year-round partner and advisor. Contact a member of our dedicated dealership team at 317-472-2183 or jsaxon@somersetcpas.com.

P RODUC T S & SER V ICES

INDUS T R Y NE W S

GWC Warranty Welcomes New Dealer Consultant to Indianapolis INTRODUCING KRISTIN MISHLER

GWC Warranty is proud to announce the arrival of a new dealer consultant in the Indianapolis area: Kristin Mishler. Mishler, a seasoned sales professional, will call upon existing GWC Warranty dealer partners and all used car dealers throughout the Indianapolis area to help them sell more cars with the assistance of GWC’s best-in-class service, products, training and technology. A 2003 graduate of Roosevelt University, Mishler joins GWC Warranty following nearly a decade in sales and account management. Mishler’s track record of outstanding customer service is a natural fit for GWC Warranty, where every employee is dedicated to providing best-in-class service to dealers and end customers

that helps avoid post-sale dissatisfaction and protects dealers’ reputations. Since 1995, GWC Warranty has helped protect more than 1.5 million drivers from costly, unexpected out-of-pocket repair bills by paying more than $375 million in claims to date. This longstanding record of excellence has earned GWC an A+ rating from the Better Business Bureau and designation as a Motor Trend® Recommended Best Buy for Independent Dealers. In addition to these honors, in 2016, GWC Warranty was once again named a Bronze Level Corporate Partner of the NIADA and recognized in SubPrime Auto Finance News’ SubPrime 125. For more information about GWC Warranty please visit www. GWCwarranty.com.

Routeone eContracting Growth Expands STREAMLINED PROCESSES AND INCREASED FINANCE SOURCES

RouteOne eContracting volume increased nearly 30 percent to 2 million contracts processed in 2015 after more than doubling in 2014. The growth is attributable to widespread adoption by over 5,300 dealers and increased finance source participation. To support that growth and further streamline dealer processes, RouteOne implemented numerous enhancements. A complimentary tablet computer e-signing app was launched to de-tether the signing process and reduce reliance on proprietary devices. The ability to Paper Out® was enabled to allow any deal to start as an eContract and then

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simply convert to paper if it's rejected. In addition, the capability for dealers to switch a credit application associated with an eContract was added to better facilitate spot delivery and other similar needs. The number of finance sources and dealer management systems (DMS) available for eContracting also increased and is expected to grow again in 2016. “Growth is great,” said RouteOne CEO Mike Jurecki, “but what is more important is that eContracting is making it easier to buy and finance vehicles. It is helping ensure consumers are always presented with the most current finance contract and disclosures, completed with correct, validated data, and that their signatures are captured where needed. eContracting supports a better and more transparent consumer experience, reduces errors and contract returns, and provides a faster funding process for dealers. It is a win for everyone.”

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Predictive Analytics

BY LANG SMITH

HOW IT CAN MAKE OR BREAK A DEALERSHIP CRM SYSTEM

For an automotive sales organization, it isn’t the size of your data that matters but what you do with it. No longer a discretionary luxury, predictive analytics are now the name of the game for dealerships that seek to utilize customer metrics in a meaningful way to establish a tremendous competitive advantage, gain notable market

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share and significantly boost bottom lines. Just what exactly is predictive analysis? Simply put, it’s the ability to more precisely predict a customer’s future spending based on their past behaviors. Of course, there’s no way to actually predict the future but predictive analysis can give companies invaluable insight that can make or break a CRM system. If your dealership isn’t using predictive analytics, your current CRM system is likely falling short in several areas. Forecasting Likely Customer Behaviors There’s an old saying in sales: “buyers are liars.” Unfortunately, salespeople are forced to enter notes based on what the customer

tells them. Besides these basic notes, which are often unreliable, it’s almost impossible for a CRM system to determine a consumer’s actual behavior. However, predictive analytics software comes with a certain level of assumptions. In this case, the assumption is the future will continue to be like the past. Often, however, behaviors change. That’s why it’s critical to have a system that can not only change with your customers but also learn and adapt to their new actions to make predictive calculations based on the past, present and future behaviors. Enhancing Customer Relationships It’s very difficult to build a true customer relationship if you have no way of accessing and analyzing their prior behavior with your company. Unfortunately, a CRM system cannot automatically track customer actions. It relies heavily on manual human interaction and cultivation relying heavily on the accuracy of a salesperson’s notes, which are often less than desirable. The most common use of predictive analytics is to increase and improve customer relationships. The better you know your customer, the more sales you can ultimately make. Using sophisticated algorithms to reveal how your customer behaves also allows you to better communicate with your customer. For instance, isn’t it nice to hear your name when you walk in to your local coffee shop? Isn’t it nice they already know what you’re drinking without you saying anything? On a larger scale, this is how predictive analytics enhance a company’s sales efforts. Many direct marketers have it figured it out – mailing you offers you are likely to actually want as opposed to the ones you consider junk. This is all done with predictive analytics. Another great thing about predictive analytics data is that it doesn’t have to be “big” at all. In fact, sometimes the data can be just a small concentrated section of just a few hundred actions. Maximizing Marketing Budget ROI If you’re like most companies and have an actual marketing budget, however big or small, it’s best to first make sure the audience you’re targeting actually wants what you’re selling. On its best day, a CRM system can only give you an educated guess. If you want to maximize your marketing dollars, solely using a CRM platform to determine the best suited marketing audience is not the best direction. With predictive analytics, you can maximize your return on investment no matter the budget. For example, if you seek to spend $10,000 on a campaign for delivery to 10,000 customers or prospects, predictive analytics will curate that audience to deliver your message to 10,000 consumers who specifically want what you’re offering at the time. Conversely, CRM solutions alone have very limited filters that prevent a business owner from drill-down targeting the correct

PREDICTIVE ANALYTICS NOT ONLY ANALYZES CUSTOMER ACTIONS AND HABITS BUT ALSO “LEARNS” AS IT GOES.

specifically to their needs and, as a result, companies can more readily build stronger customer relationships that bolster the bottom line. Lack of quality data is usually the greatest barrier a sales-driven organization can face when deciding to implement predictive analytics. Getting the most out of a predictive analytics platform requires there is actually available data on customer spending habits, the attributes of the products or services they’re buying (other than the “people who buy this also buy this” type of model), date ranges of their spending, and how much they spend on average. Some demographic information

wouldn’t hurt either. If it’s really good, the predictive analytics platform will automatically track all your customer actions from start to finish. And, although it can be very difficult to find in current predictive analytics software, a really good system will also automatically capture this data for you to create unique profiles of your individual customers. With this weapon in your proverbial sales arsenal, prepare to grow your sales revenue and overall company profitability in kind. Lang Smith is the founder of Cloud Signalytics, a first-of-its-kind predictive intelligence software platform helping major franchise auto dealerships create highly precise, individualized customer profiles to maximize sales. He may be reached online at www. cloudsignalytics.com.

audience and, as a result, are undermining their ROI with opportunity loss. Allowing Data-Driven Decisions The core success benchmark of any company is its numbers. A CRM system cannot show you exact sales numbers broken down by each individual customer over time with any ease. A significant amount of training is usually involved in trying to properly access and formulate these tasks. This often requires a lot of time, which means less time spent making actual sales. Fortunately, good predictive analytics software will allow you to specifically identify where all your money is being made and where the areas of your business are lacking. It should also be able to provide you with a specific customer spending list based on what you’re asking for. Adept systems can actually categorize all your customer’s spending and break it down for you in an easy to read format that allows you to properly make future predictions. Formulating Offer Intelligence Unlike a predictive analytics platform, CRM systems cannot recommend specific offers unique to customer spending habits. This is a huge downside. It is very difficult to maintain and engage repeat customers without knowing what they want. CRM solutions are mainly a lead management system but, let’s be honest, who wants leads when you can have buyers? Predictive analytics not only analyzes customer actions and habits but also “learns” as it goes. For instance, when an online offer is sent out to customers, or even different offers sent to varying customer segments, a predictive analytics platform can tell you who opened a particular offer, who clicked through on that offer, who redeemed that offer and, when they did, how much that customer spent. The data can also be finely filtered down further to key metrics like which date and day of the week a customer redeemed a particular offer. With the rich data predictive analytics provides, customers can be sent highly meaningful offers tailored

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SO CI A L MEDI A gets 94 percent more views than content without related images. Utilize images that will immediately intrigue, delight and connect with your audience (And no, I don’t mean just pictures of your inventory!). You might want to think about it this way: Images are QUICK TIPS FOR ANY SOCIAL PLATFORM bold, beautiful and simple to BY CHELSEA MAGEE scan. Visuals are especially important in our quickDid you know social paced society. People love to advertising outperforms all see themselves online, and traditional media? It also exceeds nearly every digital ad pictures draw them in, so consider posting photos of format in both Cost-Per-Click (CPC) and Cost-Per-Thousand happy customers (with their Impressions (CPM) of the ad… permission). Do you have an animal when targeted, optimized mascot at the dealership? and tracked! You’re probably Involve them! Pets and thinking, “Great! So how do I animals seem to get a lot of get started?” To get your actual customers “likes.” Engagement is essential. or prospective customers to Keep your customers follow you, you need to give them a good reason. Below are engaged with games and some quick tips you can utilize giveaways. Think about your target on any social platform. audience. What do they want? Accept the importance of What are their hobbies and social media. lifestyles? In Lexington, You need to realize that I might offer tickets to a social media is here, and it’s University of Kentucky not going anywhere. If you resist the change, you are sure basketball game. What would appeal to your clientele? to fall behind. So what’s the You also need to think about good news? A little bit of effort how much effort from your goes a long way! consumer you are asking – Be visual! match the giveaway with your Pictures drive engagement, ask. If you give too little, you regardless of the platform! won’t get a lot of motivation, Content with relevant images

How to Increase Your Social Presence

and you won’t gain followers or increase engagement. You might get a ton of followers when you offer a grand giveaway, but you also run the risk of consumers not trusting you. Our industry already has an issue with distrust, so don’t prove consumers’ worst fears right! A quick note about giveaways in social media: Most channels have pretty strict rules about contests and giveaways, so be sure to check terms and conditions. These rules change frequently, so review them before any contest, just to be safe. Chelsea Magee has been involved in digital throughout her career. She is the Client Success Director at NCM and oversees their online training website, digital marketing and social media. This article originally appeared on NCM’s Up to Speed blog (http:// blog.ncminstitute.com) and is reprinted with permission.

M A RK E T WAT CH

Gen Z Prefers Face-to-Face Interactions AUTOTRADER AND KELLEY BLUE BOOK STUDY Generation Z – individuals up to 17 years of age – may have grown up with more access to technology than Millennials, but buying online isn’t in the cards for this emerging demographic, according to a joint study conducted by Autotrader and Kelley Blue Book. “Gen Z accounts for nearly a quarter (23 percent) of the population right now, and by 2020 this group will translate to $3.2 trillion in purchasing power, which is larger than the GDP of

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some small countries,” said Isabelle Helms, vice president of research and market intelligence for Cox Automotive. “While they will have access to some serious cash, they will be cautious about how they spend their money, a trait that makes Gen Z markedly different than their Millennial counterparts.” While Gen Z is full of technology natives, only 26 percent of them said they wanted to buy a car online in the future. Sixty-eight percent of them said faceto-face interactions during their vehicle transaction was important and 54 percent claimed they would need to test drive a vehicle before making a purchase. The study further found that while the environmental

impact of a vehicle is important to Gen Z the majority of respondents said cost was the most important aspect of a vehicle purchase. When asked on their opinion, more respondents said it was the gas savings rather than impact on global warming that would sway them toward environmentally friendly vehicles. “What worked for marketing to Millennials will not work for Generation Z because some of the defining traits of Millennials do not hold true for the next generation of car shoppers,” Helms said. “The best news from this research is that auto sales are not going to take a hit because of this generation. In fact, it may prove to be quite the opposite. Their love for cars and driving is very much alive.”

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Seven Essentials for Your Reputation BUILDING AND REPAIRING YOUR DEALERSHIP REPUTATION BY DEALERSOCKET

When was the last time you Googled your dealership? If you’re like many dealers, you may be scared by what you find. The Internet is awash in harsh reviews written by frustrated customers who believe it’s their only way to move the needle. Some reviews may be accurate — others, not so much. The problem is your future customers can’t tell the difference. How can you maintain a pristine online reputation and minimize any damage already done? Ask for customer opinions. By proactively gathering buyer comments, you can pinpoint successes and opportunities for improvement ahead of time. The more an issue festers, the angrier

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a customer becomes. Manage your Customer Satisfaction Index (CSI) follow up process with integrated e-surveys. The immediate feedback will allow you to respond in real time. Track all incidents. Develop a clear process for complaint management, including detailed tracking of each incident. Escalate negative survey responses, buyer complaints and outstanding open items to a senior-level manager at your dealership. Whatever you do, don’t send the customer back to the employee they originally dealt with so the two of them can “work it out.” That’s a recipe for further trouble. Acknowledge angry customers. An ignored complaint is one of the quickest paths to a downhill reputational slide. As much as you want to just delete that email or hang up the phone, you must face the music when a customer is mad. Start by acknowledging their outrage and putting yourself in their position, as hard as that may be. Even if you know they are 100 percent wrong, ask yourself how you would like to be treated if you were in the customer’s

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shoes. Swallowing a little pride may mean the difference between a scathing online review and the customer not bothering to pursue it further. Squelch the concerns. Of course, if your dealership was in the wrong, you should do what it takes to correct the situation. However, what about gray areas? In those cases, ask yourself what you would lose by helping the customer out. Is that expense worth more than what you would lose from another negative review or, even worse, a potential lawsuit or regulator audit? The headache and expense of legal ramifications may make it more cost-efficient to just give the buyer what they’re asking for (assuming it’s reasonable) and move on. Even in cases where the customer clearly has no case, consider what you could offer that would still make them feel as if they won something. That’s usually enough to satisfy an angry buyer, and it will save you serious time and money down the line. Calmly respond to negative reviews. Some sites will remove or suppress negative reviews for a

fee, but you can’t count on that. Many other review sites, including Google Reviews, offer little to no way of removing critical feedback. Your best course of action is to respond quickly and thoughtfully. The original reviewer may or may not see your public response. However, people searching for your dealership will see it and form an opinion based on how you address criticism. Be polite, apologetic and gracious, even if the customer is rude. Other readers will remember how you handled a tough situation with class, and they’ll feel confident you will treat them fairly should they ever have an issue. Keep your responses brief, and never publicly rehash details of the customer’s situation. Instead, acknowledge their frustration, sincerely apologize, and invite them to engage offline. If possible, give them a direct line to call so it’s clear they are receiving special attention. Fight the bad with the good. If you can’t remove negative reviews and you’ve already responded to them, the next step is to bury them. Try to get as many positive reviews on as many sites

AUC T ION NE W S as possible. While you should avoid offering incentives, you can still: • Direct positive survey responses via automated emails to Google Reviews, Facebook, Yelp, DealerRater, and/or any websites where you currently have negative reviews. Buyers who shared their happy experiences in a survey will be more likely to share on a review site. • At the time of sale, ask customers if they were pleased with your service. If they answer yes, encourage them to share their experience on a specific review site. Consider printing a handout with instructions to make it as easy as possible. • When customers visit in person to make a payment, ask them about their satisfaction with their purchase. Use that as another opportunity to ask for reviews. In your quest to garner positive reviews, resist the temptation to write them yourself or ask employees to post fake customer reviews. Shady tactics like these will come back to bite you, I promise. If you really need to boost your online rankings, you could ask

team members to leave a review but only with full disclosure that they work at your dealership and are sharing their experience as an employee (not a customer). These kinds of stories aren’t as compelling as someone with no vested interest in the dealership, but they still boost your overall rating. Ramp up your community involvement. Run your dealership as an upstanding corporate citizen by sponsoring local events or donating to worthwhile charities. Then, share your community involvement through social media, photos and thank you certificates hung at your store. You may even wish to give a shout-out to your most satisfied customers on Facebook. Take pictures with happy car buyers holding their new car keys, and publicly congratulate them on their purchase. While it’s impossible to stop every single complaint, you still have an arsenal of options. If you treat customers right, and make sure your community knows it, your dealership’s reputation can endure for the long haul.

ADESA Helps Raise Record Amount for Dogs RE-AUCTIONED HARLEY RAISES $127,000

An ADESA auction raised a record $128,000 to train service dogs for wounded veterans at the recent NADA Convention & Expo in Las Vegas. One winning bidder after another donated back a 2014 Harley-Davidson Dyna Street Bob FXDB motorcycle to be reauctioned. Mike Dullea placed the winning bid of $25,000. Dullea is CEO of AutoAlert, with locations in Irvine, Calif., and Raytown, Mo. Joe Verde, president of Joe Verde Group in San Juan Capistrano, Calif., matched the bid with $25,000. But then Dullea surprised everyone by donating the motorcycle back to ADESA to be re-auctioned. Lewie Card was the top bidder at $20,000. Card is director of Carlister.co in Bonita Springs, Fla. Verde decided to also match that bid with another $20,000. Then Card donated the motorcycle to be re-auctioned.

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Justin Becker placed the third winning bid of $12,000. Becker is director of logistics for Wholesale Express in Mt. Juliet, Tenn. But Dullea, the first winning bidder, announced he would match Becker’s bid of $12,000. The final surprise came when it was time to write the check to ADESA and Dullea kicked in another $13,000. Another $1,000 was raised in cash donations to bring the final contribution to $128,000. This was the fifth year ADESA has auctioned a motorcycle at the NADA convention. Funds from the event benefit the NADCF Frank E. McCarthy Memorial Fund, which supports the Wounded Veterans Initiative of Canine Companions for Independence. McCarthy served as NADA president for more than 30 years.

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IIADA Legislative Update POST-SESSION REVIEW BY MICHAEL SOLARI, IIADA LOBBYIST

The Indiana General Assembly finished their business for the year ahead of schedule on Thursday, March 10. Governor Mike Pence (R-Columbus) stated before the start of session this year would be a year focused on infrastructure. While the governor, Senate Republican caucus and House Republican caucus all had different plans on how to fund infrastructure, they were all able to reach a deal before the session ended. House Enrolled Act 1001 calls for almost $230 million to be used for state highways and bridges over the next two years, while local governments will receive close to $580 million for their infrastructure needs and improvements. All of the funding comes from the state’s $2 billion budget reserve and not

from the proposed tax increases found in the other versions of infrastructure funding plans passed by the House Chamber earlier in the session. Other issues the legislature was able to address this year include the following: • HEA 1019 (Law Enforcement Recordings) provides a framework for the release of law enforcement recordings. • HEA 1087 (Bureau of Motor Vehicles) was in response to numerous issues that arose from Indiana’s BMV. • HEA 1396 (ISTEP Matters) made numerous changes to the contentious ISTEP test. • SEA 80 (Ephederine/ Pseudoephedrine) aims to crack down on meth manufacturing in the state. Currently, Indiana leads the nation in reported meth labs incidents. • SEA 177 (Alcoholic Beverage Matters) prohibits an out of state resident from retaining a liquor store permit. House Enrolled Act 1365 As we have heard from many of you over the past few years, it was becoming increasingly more difficult for dealers to provide the purchaser a title

within the statutorily mandated 21 days. Our association made this issue a top legislative priority. We spent the past two years educating members of the general assembly, along with the secretary of state’s office, about the need to find a resolution. Fortunately for the auto dealer industry, Secretary of State Connie Lawson and members of the general assembly also made this issue a priority for the 2016 legislative session. Representative Holli Sullivan (R-Evansville) introduced House Bill 1365, which included a common sense solution that would increase the days for title delivery from 21 to 31. Subsequently, consumers would then have 45 days instead of the current 31 days to get their license plate from the BMV. Our association supported HB 1365 through the process. It passed unanimously through both chambers, and the governor signed the bill into law on March 23. This law will take effect on July 1. I’d like to take a moment to thank Secretary Lawson and her staff again for working with us over this past year on HEA 1365.

With her leadership, we believe 1365 is a great solution that is not only business friendly but truly provides the necessary consumer protections. Interim Study Committees Legislative Council is set to meet on Wednesday, May 25. During that meeting, leaders from the four legislative caucuses will release the topics to be studied by the various interim study committees. We will be sure to provide you with an update, especially if any issue pertains to the automobile dealer industry. Looking to 2017 We expect more turnover to occur with members of the general assembly after November’s elections. Eight members of the Indiana Senate and eight members of the Indiana House have announced they will not run for reelection. Governor Pence is also up for reelection this year, which looks to be a close race in a rematch against the former Indiana House Speaker, John Gregg. There is a lot of time between now and November. Add to the mix an uncertain national ticket for both Republicans and Democrats, and it’s setting up to be an interesting November.

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FICO Says Millennials Avoid F&I PREFER CASH OR BANK LOAN

A survey conducted by FICO showed Millennials still seek the freedom and convenience of owning their own car – they just don't necessarily want to finance their next purchase through a dealership. According to the survey of 1,000 U.S. consumers over the age of 17, more Millennials – 34 percent – said they would prefer a full cash purchase, followed by 27 percent who said they would get funding through banks or credit unions. Only 20 percent surveyed said they would finance their purchase through a dealer, and almost as many (19 percent) said they would buy a car on a credit card, despite the high interest rates. The Millennial generation – consumers aged 25-34 – accounted for 39 percent of the respondents who said they plan to purchase a new vehicle in the coming year, more than the 28 percent of those aged 35-49 and the 22 percent for 18-24-year-olds. More than 80 percent of consumers among the combined age groups said auto dealers are the preferred choice for financing a vehicle, but the survey showed Millennials are more likely to consider purchasing a car online through sites like Craigslist, eBay and AutoTrader.

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S A L ES M AT T ERS

Identifying Key Metrics to Maximize Your Sales Opportunities YOU CAN’T MANAGE WHAT YOU DON’T MEASURE BY MARK DUBOIS

You have probably heard the expression, “You can’t manage what you don’t measure!” This time tested saying holds true for any business, regardless of the size or type. In a Buy Here-Pay Here business the same principles apply. Measuring and analyzing metrics is critical to sales growth. It’s important to track the performance of

IT’S IMPORTANT TO TRACK THE PERFORMANCE OF YOUR BUSINESS SO YOU CAN IDENTIFY THE STRENGTHS AND WEAKNESSES OF YOUR BUSINESS, AND TAKE CORRECTIVE ACTION WHERE NECESSARY.

your business so you can identify the strengths and weaknesses of your business, and take corrective action where necessary. Here are five key metrics that are important to analyze if you want to maximize your sales opportunities: 1. Sales volume. Sales volume is probably the most widely used metric to track results. In most businesses high sales equates to good results, and low sales equates to bad results. Not so in a BHPH business. Chasing aggressive sales targets can produce big losses if the incremental sales result in higher charge offs. The most successful BHPH operators have a well-defined business plan and utilize BHPH specific dealer management software to track and analyze key sales metrics. Tracking month to date and year to date sales results will help identify trends or patterns when comparing these results to previous years. Identifying these trends may provide valuable insight into key areas of your business, such as vehicle inventory management and knowing when to ramp up inventory for strong sales months. However, simply knowing your sales results were higher or lower than previous years is not where the analysis of these metrics stops. The key is to understand why! These answers will unfold when you dig deeper and analyze the other metrics that impact sales results. 2. Sales by type. The most successful BHPH operators understand what type of vehicles bring the best sales results in their market. Your market may get better sales results with sedans and mini-vans while another market might get better sales results with SUVs and pick-ups. Stocking your car lot with the right type of vehicle is as important as identifying the type of customer base you are targeting. To do this a dealer needs to monitor vehicle sales by year, make and model and determine what is selling, and what is not. In general, it makes sense to have a good mix of makes and models in your inventory to choose from, but if 70 percent of sales comes from sedans and mini-vans,

your sales results will suffer if 70 percent of your inventory is made up of SUV’s and pick-ups. 3. Sales by lead source. In the world of social media, Internet, iPhones, tablets, Wi-Fi and countless other advances in technology and communication, knowing how your customers found you, knowing how your customers want to interact with you, and responding to leads and inquiries in a timely manner has never been more important. The days of waiting for a “phone up” or a “lot up” have been replaced by a highly mobile, information hungry, tech savvy customer who has multiple resources to shop for products and find answers. Today customers can contact you using a wide range of formats, including websites, email, text, social media, instant messenger, chat, and cell phone to name just a few. Tracking the source of your leads or prospects has become more difficult in many ways, if not just for the fact there are so many more formats for prospects to contact you than in years gone by. One of the key metrics in assessing any form of advertising or promotion – whether it’s print, radio, television, direct mail, email/ electronic, social media or some other form – is to measure the return on investment. Knowing if your advertising message is reaching your target audience is critical to determining which type of advertising source to utilize. Money spent on ineffective advertising, or advertising that can’t be measured, is money wasted or money that could be put to better use elsewhere. Knowing how many leads were generated from a certain advertisement or promotion, and knowing how many sales resulted from those leads, will allow you to determine the closing ratio for your business. Armed with these metrics you can make adjustments to both the type and format of your advertising or promotion. 4. Sales revenue. Another key metric is sales revenue. In the BHPH business there is a wide range of business models that can deliver profitable results. Whether your business model is based on sales volume, cost of vehicle, inventory size, advertising

budget, overhead expense, or some other component, the profitability of your business will be driven largely by sales revenue. Some of the key metrics used to maximize your sales opportunities are most useful when compared to other BHPH dealers of similar size. For example, based on your business model and market size, how many sales should your BHPH business be generating each month? Are your gross profit levels competitive with other comparable dealers? How does your average selling price, down payment and cash in deal compare with other dealers? The ability to analyze and compare your business results will open up new ideas and opportunities for your business. 5. New sales versus repeat sales. In a BHPH business, repeat and referral sales are the backbone to success and portfolio growth. New sales and repeat sales can be positively or negatively impacted by the key metrics outlined above. The right advertising resources, the right advertising message and the ability to measure the ROI will provide the metrics for targeting new sales with better results. The most successful BHPH operators have formal incentive programs in place to reward repeat and referral customers. Growing your loan portfolio over time will require a blend of new sales and repeat sales. Having the right vehicle inventory that fits your target market will also impact new and repeat sales. The fast pace growth of technology customers use to shop for products and find answers requires BHPH dealers to embrace this new technology. Analyzing and comparing your business results with other BHPH dealers will enable you to make adjustments and increase sales opportunities. The important thing to do is to track the key metrics of your business results to understand what’s working and what’s not. Once you have identified those areas, the task becomes to do more of the things that are working, and fix or change the things that aren’t working. At the end of the day it comes down to that time tested saying: You can’t manage what you don’t measure! Mark Dubois is a moderator for NIADA Dealer 20 Groups and an auto industry veteran with more than 35 years of experience, including sales, management, recruiting and training, e-business, marketing and Buy Here-Pay Here management.

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Join Us

for our 2016 IIADA

Registration Fee: $ 95 per person • Breakfast and registration 9 a.m. • Dinner after golf included • Team Awards to 1st, 2nd and 3rd place, longest drive, closest to the pin, longest putt • Golf chairmen: Fritz Kreutzinger, David Baldwin and Joe Inabnitt

Golf Registration Participants’ Names:

Don’t miss out! Please register early to reserve your place!

Participants’ Company:

1._____________________________________________________________________Company_________________________________________________________ 2._____________________________________________________________________Company_________________________________________________________ 3._____________________________________________________________________Company_________________________________________________________ 4._____________________________________________________________________Company_________________________________________________________ No. of golfers_____________________ @ $ 95 _______________________________Total Enclosed_____________________________________________________ _____Check or money order included

Fax Registration – CREDIT CARD ONLY to: 219.663.5294 _____Visa _____ MasterCard Card No._________________________________________________Expiration Date________________________________________ Name on Card (please print)_________________________________________________Address of Cardholder___________________________________________ Phone____________________________________________________________Card Holder’s Signature__________________________________________________

SEND ENTRY FEE TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • FAX REGISTRATION – CREDIT CARD ONLY TO: 219.663.5294

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IRONWOOD GOLF CLUB • 10955 FALL ROAD • FISHERS, IN

Golf Tournament-Awards Day-Trade Show Excellent sponsorship opportunities are available for our 29th Anniversary Golf Tournament-Awards Day-Trade Show Event on September 11, 2016, at Ironwood Golf Club in Fishers. Market your company and support the Indiana Independent Automobile Dealers Association All sponsors will be recognized at the tournament, on our website (iiada.com) and in our Car Lines publication. CALL 800.310.3112 OR EMAIL IIADA@COMCAST.NET FOR DETAILS

Sponsor Exclusive Opportunity Platinum –

Diamond –

Gold –

Silver –

Bronze –

Sponsorship of dinner and driving range. Outing registration for foursome.

Sponsorship of breakfast. Outing registration for foursome.

Sponsorship of a beverage cart. Outing registration for twosome.

Sponsorship of closest to the pin, longest putt or longest drive.

Sponsorship of golf hole.

$3,000 Includes

YES!

$2,000 Includes

$1,500 Includes

$ 300 Includes

$ 600 Includes

WE WANT TO BE A SPONSOR FOR THE IIADA 25TH ANNIVERSARY GOLF TOURNAMENT-AWARDS DAY-TRADE SHOW. PLEASE INDICATE THE SPONSORSHIP OF CHOICE.

_____Platinum $3,000 _____Diamond $2,000 _____Gold $1,500 _____Silver $600 _____Bronze $300 _____Total Payment by ______ Check ______ Visa ______ MasterCard ______ Credit Card Number_________________________________________________________________________ Expiration Date __________________________________ Contact Name:______________________________________________________________________________ Organizational Name:______________________________ Address:_____________________________________________________________________________________________________________________________________ City_____________________________________________________________________State___________________

Zip Code___________________________________

Phone __________________________________________________________________Signature____________________________________________________________ PLEASE SEND OR FAX TO: IIADA • P.O. BOX 1393 • CROWN POINT, IN 46308 • PHONE: 219.661.0287 • FAX: 219.663.5294

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MEMBER BENEFITS

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

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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2016 Member Auction Coupons For A Total Savings Of $3,000! abc Detroit/Toledo ADE of Indianapolis ADESA Cincinnati/Dayton ADESA Indianapolis ADESA Lansing Anderson Auto Auction Clark County Auto Auction Dyer Auto Auction Flint Auto Auction Fort Wayne Truck and Auto Auction Greater Kalamazoo Auto Auction Greater Rockford Auto Auction Indiana Auto Auction, Inc. Indiana Public Auto Auction Indianapolis Car Exchange Kesler-Schaefer Wholesale Auto Auction Lafayette Auto Auction Manheim Chicago Manheim Cincinnati Manheim Indianapolis Manheim Lexington Mobile Sale Manheim Louisville Manheim Ohio Mt. Vernon I-64 Auto Auction South Bend/Mishawaka 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 WARRANT Y

SUPPORT IIADA! We are your voice in Indianapolis.

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

JOIN TODAY

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.

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 46308

Note: 25% of dues are non-deductible

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SECURI T Y WAT CH

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 Absolute Surety, LLC Blair Ashton PO Box 547898 Orlando, FL 32854 855-689-5106 Fax: 407-674-7978 bashton@absolutesurety.com absolutesurety.com Affordable Computer Systems Greg Goresen 800.488.9992 acsi@digicove.com www.acsds.com AFC 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

Creative Underwriters Doug Setters 317.844.8289 doug@Creativeunderwriters.com Custom Facilities 317.259.0038 lcolle@cfidm.com BuildMyDealership.com CVR-Computerized Vehicle Registration Ron Zimmerman 317.522.6256 Fax: 866.231.4996 rzimmerman@cvrreg.com DealerMatch Ellen Hoy 678.645.2746 ellen.hoy@dealermatch.com DealerRater Amy Rosenfield 800.266.9455 amy@dealerrater.com

Alpha Omega Group Brad LeBlanc 513.317.9861 brad@aogllc.com

DealerSocket Kym Tran 949.900.0300 x759 ktran@dealersocket.com id.dealersocket.com

Ashton Agency Inc. Dealer Insurance, Bonds Kathy Alexander 407.678.5900 kalexander@ashtonagency.com

Dealertrack Diane Zewalk 115 Pohesanut Dr., Ste. 201 Groton, CT 06340 860-448-3177 Fax: 860-448-3187

Auction Insurance/ Robinson Adams Insurance Tom Adams/Debbie Thompson 800-239-1327 www.robinsonadams.com

Dealer Funding Curt Massey 770.883.3883 cwm@dealerfunding.com www.dealerfunding.com

AUTOSAVE Paul Pawlusiak Phone: 248.412.8500 paul@autosave.com

Diversified Vehicle Services Glenna Deviers 317.862.9100

Auto Services Co. Inc. Susan Williams/ Clayton Morgan 800-442-7116

Drive1 USA, Inc. Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 Phone: 219.670.0542 Email: Bnorton@drive1usa.com

Automotive Credit Corporation Dan Boes 26261 Evergreen Rd. Ste. 300 Southfield, Michigan 48076 888-268-1400 dan@automotivecredit.com AutoZone Gerry Sutter gerald.sutter@autozone.com 440.263.3389 Black Book National Auto Research Larry Knapp lknapp@blackbookusa.com 800.554.1026 CAR Financial P. O. Box 20229 Knoxville, TN 37940 865.573.3355 Cars.com 175 W. Jackson Blvd., 8th Fl. Chicago, IL 60604 800-298-1460 dealers.cars.com

Consolidated Automotive Services Chris Walsh 812.988.8300 www.consolidated autoservices.com

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www.diversifiedvehicleservices.com

Donn Wray, Attorney at Law Katz & Korin PC Phone: 317.464.1100 dwray@katzkorin.com Envirotest Systems Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 888-240-1684 Fax: 219-661-8409 indiana@esph.com Floorplan Xpress Jason Burns jburns@floorplanxpress.com 317.719.9276 Frazer Computing Inc. 6196 US Hwy 11, P O Box 569 Canton, NY 13617 888.963.5369 www.frazer.com GoldStar GPS guided by SPIREON Cesar Yepez 949.697.3459 cyepez@spireon.com

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GWC Warranty Carmie Fruits - Indiana Dealer Consultant PO Box 7900 Wilkes-Barre, PA 18773 317-374-6271 cfruits@gwcwarranty.com www.gwcwarranty.com HBK CPAs & Consultant Rex Collins 330.758.8613 rcollins@hbkcpa.com Heritage Acceptance Corporation Curt Holmes cholmes@hfgnet.com Honor Finance LLC 30575 Bainbridge # 150 Solon, OH 44139 216.694.8974 Insurance ProfessionalsDealer Specialists Mike Lee 8509 Zephyr Dr. Indianapolis, IN 46217 317-432-1092 Fax: 317-300-0501 teamallenc21@comcast.net Insurance Professionals of New Palestine 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 Keystone Insurers Group Lori Simpson 570.473.2146 lsimpson@keystoneinsgrp.co Law Office of Eugene Mogilevsky LLC 1512 N. Delaware Street Indianapolis, IN 46202 317.331.5648 eugene@egmlegal.com Lincolnway Insurance Services Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.com Nationwide Acceptance Bonnie Herden 773-777-7600 www.nac-loans.com Mighty Auto Parts of Central Indiana David McCabe 317.685.8650 mightyautopartsindy@gmail.com Nationwide Cassel LLC 773.777.7600 NextGear Capital Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com PassTime Jake Frank 303.623.5339 jjones@passtimeusa.com

Penn Warranty Corporation 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 Reach Local Katy Gibson katy.gibson@reachlocal.com 614.312.3443 Reliable Auto Finance Lester Dean PO Box 9700 Wyoming, Michigan 49509 616.438.3591 Fax: 616-245-5978 lesterd@reliableautofinance.com Security Auto Loans Joe Ruhland 4900 Hwy. 169 N, Ste. 205 New Hope, MN 55428 763-559-5892 Fax: 763-559-7549 jruhland@securityal.com www.securityal.com Somerset CPAs Jane Saxon, CPA 3925 River Crossing Pkwy. Indianapolis, IN 46240 317.472.2183 jsaxon@somersetcpas.com Teipen, Selanders, Poynter & Ayres, P.C. Certified Public Accountants Barnett Sapurstein, CPA 317.598.6700 bsapurstein@teipencpa.com Triumph Consulting Services Jack Haworth 800-875-3137 jackhaworth@ triumphconsulting.net Turner Acceptance Jonathon Turner Phone: 773.290.5007 turneracceptance.com Universal Publications PO Box 628 Plainfield, IN 46168 317.203.5118 publicationsinc.universal@ yahoo.com Verifacto, Inc. Enrique Castiblanco info@verifacto.com 678.916.8311 VideoTirekicker.com John Commorato 2413 N. Meridan St. Indianapolis, IN 46208 317-466-0321 Fax: 317-826-1964 john@cmcmediagroup.com

Hackers Targeting Dealerships FIRM WARNS DEALERS

According to Helion Automotive Technologies, hackers are targeting dealerships and their accounting and F&I departments. Helion claims international crime organizations are using targeted email scams designed to trick employees into performing actions that make their dealerships vulnerable to an attack. “The increase in the number of organized attacks in the last year is astounding, and auto dealers need to be on alert,” said Helion president Erik Nachbahr. “In addition to the volume of attacks, the level of sophistication and research involved is frightening.” Hackers who break through dealership networks have the ability to gain access to dealership login credentials, dealership and customer bank account and routing numbers, and other private customer information. According to Helion, security software and firewalls can’t stop an attack like this because the attack originates from an employee email. These email attacks are targeted and designed to look as if it were sent from within the organization. To prevent these spear phishing attacks, Nachbahr recommends dealerships verbally verify all requests for wire transfers. He also recommends dealerships have a cyber-liability insurance policy in place. Employees should be trained on cyber warfare tactics, he said, and all software patches should be regularly updated.

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Hyundai Recalls Sonatas for Steering Issues

MAY LOSE POWER STEERING ASSIST Hyundai Motor Company is recalling 173,000 model year 2011 Sonata vehicles manufactured Dec. 11, 2009, to Oct. 31, 2010. In the affected vehicles, the Electronic Power Steering circuit board may be damaged and result in a loss of power steering assist. With a loss of power steering assist, extra steering effort will be required, especially at lower speeds, increasing the risk of a crash. Hyundai will notify owners, and dealers will replace the EPS control unit, free of charge. The recall is expected to begin May 30. Hyundai’s number for this recall is 143.