INDIANA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION | AUGUST 2019
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SALES MATTERS |
INDUSTRY NEWS
By John Chapin
SALES SUCCESS
Are you IN or are you OUT? I was recently speaking with a manager at a real estate office about what makes some agents successful and others unsuccessful. He told me, “John, I can sum up the difference between the successful agents and the unsuccessful agents with one quick example: during a major blizzard when everything is shut down and everyone is at home, my top agents are making phone calls to prospects because they know they have a captive audience, and the rest of my agents are posting pictures on Facebook of the cookies they’re baking.” I’ve noticed a similar phenomenon when I speak. Afterwards it’s always the top salespeople who line up to buy my book. The mediocre and poor salespeople, on the other hand, always give me an excuse for not investing in the book – either they don’t read or they can’t afford to buy the book. Here’s another example that outlines the difference between success and failure in sales. Several years ago I worked for the largest banking equipment distributor in the world. The top salesperson was a guy named Pete. One day while Pete was out making prospecting calls, he got in a car accident. In fact, he totaled his car. Luckily, he didn’t get hurt too badly. He ripped his pants, got some cuts on his nose and forehead, but for the most part, he was OK. When the paramedics insisted he go to the hospital and get checked out, Pete adamantly refused. Regardless of the car accident, he was determined to get the rest of his sales calls in. After pleading with Pete for a while, they finally gave him some butterfly stiches to close the facial wounds and sent him on his way. Pete jumped into a cab and completed his calls for the day. While that’s a pretty good story on commitment, it doesn’t end there. Like most top athletes and people who are among the best in their field, Pete was determined to find the advantage in wrecking his car and it didn’t take long to find it. He remembered two hard-to-reach prospects he simply could not get through to. He’d call, stop by in person, email, send items through the mail, and use any and every trick and technique to get through, but he simply wasn’t able to get to these two prospects. Pete now saw the car accident, and his current condition, as an opportunity to change things. He took the cab to both offices. When he arrived – torn pants, bloody face, butterfly stiches and all – he told the receptionist, “Hi, I’m here to see Mr. Prospect. You have no idea what I’ve been through today to see him.” Now these gatekeepers, who had bulletproof teeth and had been shutting Pete down for months, were now off selling to the decision maker why they had to see Pete. I can imagine it sounded something like, “You’re not going to
believe this. There’s a guy out in the reception area with torn pants and blood on his face. I mean it’s not Halloween, right? You have to see this.” The result was Pete got in to see both prospects that day. They both laughed as he told his story. The best news is three months later Pete ended up getting one of them as an account and it became his fourth largest account. While that’s a great story about commitment, there’s another point to be made here. Both of these prospects were owners of medium-sized businesses. As such, they undoubtedly have some slackers who work for them. You know the type – the ones who take every sick day, holiday, vacation day, family day, and look for every excuse to take days off and work as little as possible when they are actually there. Yet here’s a guy who got in a car accident and had a perfect excuse to take the rest of the day off, but he’s still out working. Do you think that gives Pete some instant credibility? You bet it does. Do those owners know that if Pete says he’s going to do something, they can count on it? Of course. Now let’s compare Pete’s story to that of a low-performing salesperson at the same banking equipment company. This guy showed up to the weekly sales meeting with a coffee stain on his shirt. I said, “Wow, tough drive into work, huh?” His response, “Yeah, luckily my appointment was able to reschedule.” I asked what a coffee stain had to do with rescheduling an appointment. He said, “Well, obviously I can’t go out calling on prospects looking like this.” While missing an appointment because he had a coffee stain on his shirt was bad enough, also notice he said “appointment” versus “appointments.” That one appointment was his one for the day, and probably his one for the week. So we have the top sales rep who gets in a car accident and actually makes two more calls than he had planned on versus the lowest performing sales rep who uses a coffee stain as an excuse to make no calls. I think the difference between the successful and unsuccessful is pretty obvious. One is committed and determined to make the calls and do whatever it takes to be successful. The other is simply going through the motions and trying to stay on the payroll while doing as little work as possible. One’s all in. The other, for all practical purposes, is out. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.
TRUECAR CEO CHIP PERRY RETIRES
Industry Veteran to Continue in Advisory Role TrueCar president and chief executive officer Chip Perry has retired. The company said it intends on Perry continuing in an advisory role, with Michael Darrow appointed by the board as interim Chip Perry president and CEO. Darrow’s current post is executive vice president of partner and OEM development and president of TrueCar’s ALG subsidiary. “I feel beyond proud of the work the TrueCar team has done over the past few years,” Perry said. “We have righted the ship, rebuilding our dealer network to over 16,500 dealers while concurrently completing our Capsela technology re-platforming effort. “This is a critical foundation upon which to build a differentiated, end-to-end car buying experience. Additionally, TrueCar Trade and our expansion into digital retail through our DealerScience acquisition are rapidly advancing us toward becoming the preeminent shopping-to-showroom solution. “With these critical puzzle pieces now in place, I believe TrueCar is well positioned to create even more fabulous new products and services that will provide significant additional value to consumers, dealers, and OEMs.” Perry was named TrueCar’s president and CEO in late 2015, taking over for Scott Painter. This was just the latest in a long automotive career for Perry, who founded what is now Autotrader in 1997 and served as its CEO until 2013. TrueCar chairman of the board Chris Claus said, “On behalf of the board of directors, I want to sincerely thank Chip for the leadership he has brought to TrueCar over the last few years, rebuilding our dealer customer base, reinventing our technology platform and setting the stage for TrueCar’s growth as a bestin-class online automotive marketplace. “We are grateful to Chip and wish him all the best in his retirement. We appreciate his deep commitment to TrueCar, and we thank him for his service.” WWW.IIADA.COM AUGUST 2019 CAR LINES 3
BOARD MEMBERS Bruce Norton Drive1 USA, Inc. 1512 W. 96th Avenue Suite C Crown Point, IN 46307 Phone: 219.670.0542 Bnorton@drive1usa.com
Ed White White’s Auto Sales 1105 McKinley Ave. Rensselaer, IN 47978 219.866.7553 Fax: 219.866.7256 edwhite123@att.net
Travis Baldwin Best Deal Auto Sales 2526 Scotswolde Drive Fort Wayne, IN 46808 Phone: 260.483.7999 travisbaldwin@ bestdealautosalesonline.com
Andy Zay Zay Leasing & Rentals, Inc. 4957 N. Broadway Huntington, IN 46750 Phone: 260.356.1588 azay@sbcglobal.net
Sharon Brennan Fritz in Fishers 8599 E. 116th Street Fishers, IN 46038 Phone: 317.842.2228 sharonb@fritzinfishers.com
John Stumpf Greater Kalamazoo Auto Auction P. O. Box 697 Schoolcraft, MI 49087 269.679.5021 jstumpf@kalamazooaa.com
Taryn Sanchez White’s Auto Sales LLC 1105 N. McKinley Avenue Rensselaer, IN 47978 Phone: 219.866.7553 twhite1517@att.net
Chairman of the Board Legislative Chairman
Tricia Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com
Executive Director Treasurer Debbie Andersen 128 S. East Street # 1393 Crown Point, IN 46308 219.661.0287 iiada@comcast.net
Index
05.............World Auto Auctioneer Championship 06.........................................................CarLawyer 07..................................................Google Reviews 08.............................................Mental Toughness 10................................NIADA Government Report 12................................................Big Auction Wins
Advertisers Index
Dyer Auto Auction............................................... 7 Kesler-Schaefer AA............................................. 9 Manheim............................................................. 11 NextGear Capital ..........................................12-13 vAuto................................................... Back Cover Warrantech.......................................................IFC
What’s New
CONVENTION SESSIONS ONLINE
If you missed the 2019 NIADA NABD Convention & Expo, or a particular session, you can now watch education content online! You can also view education from last year’s convention. Check it out at NIADA.tv, the exclusive host of the 2019 NIADA Convention Sessions.
President
Fritz Kreutzinger Fritz Associates P.O. Box 168 Fishers, IN 46038 317.842.2228 Fax: 317.842.7900 fritzauto@aol.com
Vice President
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
Secretary
David Lewis Lewis Motor Sales 1125 Sagamore Parkway S. Lafayette, IN 47905 765.448.4006 Jennifer Cotton Dyer Auto Auction 219.865.2361 Fax: 219.322.1761 bcotton@dyerauction.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
Tony Del Real Del Real Automotive Group 1002 Walnut Avenue Frankfort, IN 46041 Phone: 765.446.9204 tdelreal@delrealauto.com
Tyler Trent Trent Auto Sales 1327 N 6th St. Vincennes, IN 47591 812.882.3772 Fax: 812.882.1986 ttrent01@yahoo.com
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 © 2019 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 PRINTING Nieman Printing
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INDUSTRY NEWS
NEW CFPB DEPUTY DIRECTOR
Brian Johnson
Consumer Financial Protection Bureau director Kathleen L. Kraninger recently announced Brian Johnson will serve as the deputy director. Mr. Johnson first joined the bureau in December 2017 as senior advisor to the director and was named principal policy director in April 2018. He has served as acting deputy director since July 2018. “I’m glad to announce officially that Brian will be the bureau’s deputy director,” said Kraninger. “Not only has he done a fantastic job serving in the acting capacity, he has been an invaluable part of the team. Brian’s extensive experience on consumer and financial policy will continue to serve the bureau in its focus on preventing consumer harm and using all of the tools Congress gave us to protect consumers.” Johnson joined the bureau from the House Financial Services Committee, where he spent over five years serving in various capacities, including senior counsel, chief financial institutions counsel, and policy director. During his time on the committee, Mr. Johnson led the policy and legislative work for the Financial Institutions and Consumer Credit Subcommittee on issues related to consumer protection and credit, mortgage origination, credit reporting, banking and data security. Prior to joining the committee, Johnson worked for the attorney general of Ohio and the White House Domestic Policy Council. He received his B.A. in economics, as well as his J.D., from the University of Virginia.
AUCTION NEWS
WORLD AUTOMOBILE AUCTIONEERS CHAMPIONSHIP RECAP
Cody Shelley Follows His Mentor With a Victory at the 2019 World Automobile Auctioneers Championship
World champion ringman Landon Waddle
Winning a world championship was a special moment for Cody Shelley. There was only one way it could be even more special. When 2018 champion Casey Enlow handed his fellow Oklahoman the trophy at the 2019 World Automobile Auctioneers Championship, Shelley couldn’t help getting emotional – especially since he knew it took Enlow, his longtime mentor, 17 tries before he won his title. “I don’t feel worthy or deserving of this,” Shelley said. “He’s taught me so much.” Shelley, who won in his sixth appearance in the contest, credited Enlow and Oklahoma auctioneer John Gary Collins as being instrumental in turning a high school rodeo star with dreams of going pro into a world champion auctioneer. “This means so much, especially coming from Casey – and from the other people who have won it in the past,” Shelley said. Shelley’s score of 91.5833 edged 2017 runner-up Matt Moravec for the victory in the
31st annual event, held May 10 at Charleston Auto Auction in Charleston, S.C. Landon Waddle of Lago Vista, Texas claimed the title of world champion ringman, while Blake McDaniel won his second team title, this time pairing with defending champion ringman Chris Elliott to take top honors. Shelley, who turned 30 the day before the contest, looked very much like a rising star when he finished third in his first WAAC appearance in 2013. But he missed the finals the next two years, then skipped the event the next year before returning in 2017. In fact, Shelley almost missed this year’s WAAC as well, after a delayed flight turned what should have been a relatively easy trip into an all-night odyssey. He had rushed back from Dallas that day, stopping at his home near Tulsa just long enough to pick up the bag his wife Ashley had packed for him before heading to the airport. But when a flight delay caused him to miss his connection to Charleston, Shelley said, he thought about turning
World champion auctioneer Cody Shelley
around and going home. He didn’t – not because he wanted to compete as much as because of his friendships with his fellow auctioneers. “I’ve met so many unbelievable people here,” he explained. “I was just going to go home. And then I got to thinking I just wanted to see everybody. … That’s what made me go.” It was nearly midnight when Shelley arrived in Atlanta. He tried to talk his way onto another flight to Charleston, but it was full, forcing him to rent a car and drive. “I said, ‘I understand the flight was overbooked, but since it’s been delayed, some people didn’t make it. Can you let me on?’ ” he recalled in an interview on Mike “McGavel” Jones’ podcast. “ ‘Nope.’ The pilot was standing there at the gate and he said, ‘I’ll race you.’ ” Needless to say, the pilot won the race. Shelley arrived in Charleston at 4:45 a.m., took a quick shower and got to the auction at 6:30 to get ready to compete. “It was a long day,” he said. “It didn’t go as planned, but I got here.”
Photos by Myers Jackson ceo@myersjackson.com
WAAC president Paul C. Behr (left) and 2018 champion auctioneer Casey Enlow (right) flank the 2019 world champs: Blake McDaniel and Chris Elliott (team), Cody Shelley (auctioneer) and Landon Waddle (ringman)
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LEGAL UPDATE | By Thomas B. Hudson and Nicole Frush Munro
THE CARLAWYER
Keeping You Informed with the Latest Governmental Issues and Activity in the Used Car Industry Here’s our monthly article on selected legal developments in the auto sales, finance, and leasing world. This month, the action involves the Federal Trade Commission and the Consumer Financial Protection Bureau. As usual, our article features the “case of the month” and our “compliance tip.” Note this column does not offer legal advice. Always check with your lawyer to learn how what we report might apply to you, or if you have questions.
plan and focus on the value it provides for most customers, without thinking about who may not benefit. Perhaps that’s what happened here. The dealer just didn’t think about whether the service plan would be valuable to a customer who turned in the leased car when the manufacturer’s warranty expired. Or maybe the dealer assumed customers would figure this out for themselves. This AVC hit the dealership in its pocketbook. The AG invited customers to complain to his office and required the F ED ER A L D EVELOPM E N TS dealership to make restitution to those FTC extends deadline to comment on complainants “to the satisfaction of the proposed safeguards rule changes: In Commonwealth.” And it looked like the March, the FTC announced it was seeking dealership already had made restitution to public comment on proposed changes to the complaining customers. Finally, the AVC Gramm-Leach-Bliley Act’s Safeguards Rule required the dealership to pay a civil penalty and Privacy Rule. The FTC set a comment of $5,000 and another $5,000 to the AG’s deadline of June 3, 2019. On May 21, 2019, office for the investigation’s cost. in response to requests from commenters, The toughest part of this AVC may the FTC announced it is extending the be neither the reputational harm nor Safeguards Rule deadline to August 2, 2019. CAS E O F T H E M O N T H the financial cost. The AVC enjoins FTC rescinds unnecessary FCRA A Pennsylvania dealership sold and leased the dealership from engaging in any model forms and disclosures: On May 22, cars with a manufacturer’s warranty for “fraudulent or deceptive conduct which 2019, the FTC issued a final rule rescinding 36 months or 36,000 miles. It also offered creates a likelihood of confusion or of several Fair Credit Reporting Act model retail and lease customers a product it called misunderstanding.” This prohibition lasts forms and disclosures. The Dodd-Frank a “warranty,” but this may have been an forever. A future violation entitles the AG Act transferred rulemaking authority extended service plan. The product excluded to a civil penalty up to $5,000 per violation. associated with these forms and disclosures manufacturer’s warranty claims. Pennsylvania law also includes a “nuclear to the CFPB. The final rule, intended to The Pennsylvania attorney general option” – for the violation of an injunction, reduce confusion by eliminating forms and pounced on the dealership, alleging the the AG can ask the court to revoke the disclosures that are no longer necessary, product “failed to provide any meaningful dealership’s right to do business and appoint includes a chart cross-referencing value relative to the consideration paid by a receiver of the dealership’s assets. rescinded forms with the corresponding the consumer.” The AG’s press release was This Month’s CARLAWYER CFPB Forms. The changes were effective blunter – the headline said the dealership Compliance Tip May 22, 2019. sold “valueless warranties.” In colorful This compliance tip mirrors the one we CFPB issues proposed FDCPA rule: language, the AG said, “This dealership gave you last month about the sale of GAP On May 7, the CFPB issued a proposed rule took its customers for a ride” and “bilked coverage. Here, as then, we immediately implementing the Fair Debt Collection customers out of their hard-earned money.” wondered whether the dealership had Practices Act. The proposed rule focuses on Ouch. trained its salespeople about what they the substance of consumer communications Was this dealership’s voluntary protection could and should not say about the and time-and-place requirements and product worthless? A service plan that voluntary protection products they offer restrictions. Comments on the proposed rule only duplicates a manufacturer’s warranty to their car buyers. Have the dealership’s are due by August 19, 2019. The proposed rule would seem to offer no value. Is that what employees involved in the sale of these includes a proposed effective date of one year happened here? It is hard to tell from products read them thoroughly and do they after its publication in the Federal Register. either the press release or the Assurance of understand their terms and conditions? FTC retains holder rule: On May 2, the Voluntary Compliance the AG filed in state Did the dealership have scripts for the FTC announced it completed its regulatory court. salespeople to follow, and were those scripts review of the Trade Regulation Rule But we have a clue. Although the blessed by the dealership’s lawyers? How is Concerning Preservation of Consumers’ dealership sold this product to both this issue addressed in your shop? Claims and Defenses as part of its systematic purchase and lease consumers, the AVC So, there’s this month’s roundup! Stay review of its rules and guides and has alleged a problem only for the product legal, and we’ll see you next month. determined to retain it without modification. bought in connection with 36-month leases. Tom (thudson@hudco.com) is of counsel and Nikki CFPB sues over credit repair That’s the limit of the manufacturer’s (nmunro@hudco.com) is a partner in the law firm of Hudson Cook, LLP. Tom has written several books services: On May 2, the CFPB announced warranty. This fact suggests to us the and is the publisher of Spot Delivery, a monthly it has sued PGX Holdings, Inc., its dealership’s product provided service legal newsletter for auto dealers. He is the CEO of CounselorLibrary.com, LLC and the editor in chief of subsidiaries – Progrexion Marketing, Inc., beyond the manufacturer’s warranty. If CARLAW, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a Progrexion Teleservices, Inc., eFolks, so, only consumers who leased cars for 36 contributing author to the F&I Legal Desk Book and LLC, and CreditRepair.com, Inc. – and months – the limit of the manufacturer’s frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. © CounselorLibrary.com an individual attorney for deceptive and warranty – would not benefit. 2019, all rights reserved. Single publication rights only, to abusive telemarketing acts and practices Many dealers would look at their service the Association. HC/4812-0002-7032.1.
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in violation of the Consumer Financial Protection Act and the Telemarketing Sales Rule. The defendants operate two of the largest credit repair companies in the country, Lexington Law and CreditRepair.com. The bureau alleged the defendants and their affiliates made deceptive marketing representations to generate referrals to the credit repair companies. The bureau also alleged the defendants requested and received payment of prohibited upfront fees for their credit repair services. Under the TSR, companies can charge fees for credit repair services only after a certain period has elapsed and the company has demonstrated the promised results have been achieved. The defendants allegedly charged consumers when they signed up for the service and on a monthly basis thereafter, without waiting the prescribed period and demonstrating the promised results were achieved.
108 people saw your review!
ONLINE MARKETING | By Kenny Atcheson
GOOGLE REVIEWS
3 Critical Updates
Google techs have been busy changing things again, including three critical updates. First, they are proactively asking Android phone users to write a review on Google for each place their phone has been physically located within the last few months. It is amazingly accurate. In one session I was asked to give a rating on Google about my experiences at places I
People like your review
Congratulations, your review helped people over 100 times! Millions of people rely on reviews like yours to learn what places are like.
had visited in South Dakota, Orlando, Tampa, Having spilled the beans about Google’s Dallas, San Antonio, Phoenix, Las Vegas, inner workings, here are some dos and Henderson, and more. My Android phone don’ts regarding online reviews. tracked the restaurants, hotels and dealerships Don’t I visited during that same time period. • Don’t write a review about your own What Google techs did not know was I business. wasn’t a customer at any of the dealerships • Don’t let employees write a review about I visited. I was consulting and conducting your dealership. employee training on customer service, sales, • Don’t write negative reviews about the and online reviews. But I was asked for a competition. review anyway. • Don’t exchange positive reviews with Here’s what stands out: If someone visits your buddy’s business. your dealership and does not buy, a Google • Don’t incentivize customers to write a prompt will still ask for a review. Is a nonreview. buying customer more likely to write a Do negative review than a customer who buys? • Do recognize that the way your team Second, Google is incentivizing people to treats people has a big impact on write a review. Google has reviews, but it’s not all that matters. You offered free access to Google need to do more. tools that are not available to • Do respond to all reviews. It shows everyone else at this time. You customers, prospects and Google can’t incentivize customers to powers-that-be you are listening. write a review, but evidently • Do use a system to keep most negative Google muckety-mucks can. reviews internal while at the same In another update, they are time boosting positive reviews into the encouraging people through public realm, such as on Google. positive reinforcement to write more reviews on Kenny Atcheson is the founder and president of Dealer Profit Pros and Google, such as the pictured author of Marketing Battleground: How to Deploy Under-the-Radar Strategies example I recently received to Explode Your Profits. His website can from Google. be found at www.DealerProfitPros.com.
PRODUCTS & SERVICES
OFFERUP IDS BUYERS READY TO BUY CARS
Hot Lead Indicator
OfferUp recently announced the launch of its Hot Lead Indicator, a machine-learning tool that helps automotive dealers identify prospective car buyers who are ready to buy their cars. In addition, the company announced that Buy Here-Pay Here dealers can now add a “Verified Low Credit Financing” label to their profile and list vehicles with a “Call for Details” tag in lieu of showing their vehicles’ prices. Both features are free and part of OfferUp’s Automotive Dealer Program, which launched in 2018.
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SALES MATTERS |
By John Chapin
MENTAL TOUGHNESS AND SALES SUCCESS
Train to Overcome
In a recent article, I mentioned the five foundational personality qualities necessary for sales success: people skills, mental toughness, work ethic, attitude, and character (honesty and integrity). If someone is missing any one of these, they won’t make it in sales over the long haul. Of the five, I find the one that is most overlooked is mental toughness. Not just in the initial search when looking for a new sales rep, but also after the person is hired. When someone comes to you, they either have good people skills, work ethic, attitude and character, or they don’t. You can’t teach those. They also come to you with some level of mental toughness. It may be high, low, or somewhere in the middle, but they at least have some. That said, mental toughness is a skill that can be, and should be, developed after they’ve been hired, similar to sales skills and product knowledge. This is where many companies miss the boat. While most companies have some form of product and sales training, very few do any mental toughness training, and mental toughness can make or break a salesperson. Why mental toughness training? There’s a saying that 90 percent of life is mental, or as Yogi Berra reportedly said, “90 percent of life is half mental.” Whether or not you like math or Yogiisms, one thing is true: sales – like life – is pretty much 100 percent mental. Think about it. One hundred percent of our waking hours, and most of our sleeping hours, are done through our brain. With the amount of rejection required to be successful in a sales career, one needs to have a high level of mental toughness. When people fail at sales, 99.9 percent of the time it’s due to a lack of activity: they didn’t make enough calls, talk to enough people, or get enough qualified prospects to make enough sales. What causes the lack of activity is either fear of rejection (addiction to the approval of others), complacency (the comfort zone), or an inability to persist and persevere when they encounter repeated failure and rejection. The cause of each of these is a lack of mental toughness. What is mental toughness training and how do you do it? In short, mental toughness training is training people to overcome the mental hurdles they encounter in sales and in life. Essentially, it’s developing someone’s grit and determination.
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You do it by discovering what they’ll fight for and what they’ll die for and then helping them use those emotional hot-buttons when they are down or otherwise unmotivated. This requires a deep dive into the psyche via targeted questions that cover the past, present, and future in all the major areas of life. What you’re after here is their why. Why do they do what they do? Why do they get up in the morning and go to work? Why is it critical they succeed in their career? A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” In other words, if the why is powerful enough, a person will go through almost anything to achieve their goals. That means they’ll push through rejection, won’t allow themselves to get complacent, and even when they are feeling down and beat up, they’ll still have the persistence and perseverance to keep moving forward. While finding someone’s why involves some extensive questioning over several weeks, in short, you discover someone’s why in two areas: pleasure and pain, which is the language of the brain. On the pleasure end, what are they running toward? What do they want for themselves and the people in their lives? Do they want a house on the lake or a new sports car? Do they want to send their kids to a specific school? Do they want to take a trip around the world with their family? Do they want to retire and travel? What are their goals and dreams, and how much money do they need to make those goals and dreams a reality? Start with goals but keep in mind for most people positive goals aren’t enough to keep them motivated long-term. As a result, we need to leverage pain. Pain is a more powerful motivator than pleasure for humans. What “pain” is someone running from in the present, hoping to avoid in the future, or striving to overcome from the past? What has happened to them that motivates them? Did they get fired from a job? Did someone tell them they’d never amount to anything? Is there an ex-spouse or ex-boss they’re going to show they made a mistake? Are they afraid of not having enough money? Are they afraid of how they’ll feel if they don’t provide for their family? Where are the issues, or the pain? What are the motivators or demotivators behind those? When you think of motivation, think of the 3 Ps: people, possessions, and proof.
A powerful why is the key to having a high level of mental toughness. As Nietzsche once said, “He who has a [powerful enough] WHY to live, can bear almost any HOW.” What do they want for the people in their lives, including themselves? What possessions do they want and what values do those possessions fulfill, such as peace of mind, security, love, and excitement? And what do they have to prove to themselves and others? Do they need to prove they are worthy, important, capable of taking care of their family, or good enough? When you discover what’s truly important to people, what they are willing to fight and die for, then you and they will have the necessary emotional hot-buttons to push for them to get through fear, step out of their comfort zone, and get back up after they’ve been knocked down. John Chapin is a sales and motivational speaker and trainer. He has over 31 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For more information, visit www.completeselling.com or email johnchapin@completeselling.com.
PRODUCTS & SERVICES | By Auto Remarketing Staff
“NO QUESTIONS ASKED” TradeRev Unveils Pilot Program
When wholesale vehicle buyers feel they did not get what they pay for, they often must go through a cumbersome process to return the vehicle. With a new TradeRev pilot program, buyers can now return vehicles with “no questions asked.” TradeRev, a business unit of KAR Auction Services, has been piloting what it describes as an industry-first return policy since May. “With No Questions Asked, we’re making things as simple as possible for buyers – you don’t like the car, you get your money back,” said TradeRev executive vice president of global operations Keith Crerar. Through the pilot program, buyers can notify TradeRev within two business days of vehicle delivery to use the return policy. At that time, TradeRev refunds the purchase price less any initial transport charges and buy fee. TradeReady vehicles (inspected by TradeRev), as well as as-is vehicles, are eligible for the program. The company will continue the return policy as a pilot, with plans to roll out availability to all users over the next year. TradeRev president Becca Polak said TradeRev is working to improve the user experience, eliminate friction and build customer trust. “When buyers feel they didn’t get what they paid for, they enter an arbitration process that involves the seller and can take time,” Polak said. “For dealers, time is money. Our No Questions Asked return policy helps dealers buy with confidence, knowing they can return a vehicle if it’s not what they expected and get their money back quickly.” Crerar said, “The policy aims to remove all potential pain points for the buyer and is a prime example of how TradeRev is standing behind its commitment to make buying fast, fair and easy for dealers.”
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WASHINGTON UPDATE
| By Shaun Petersen
NIADA GOVERNMENT UPDATE Latest Government Issues and Activity
R E G U L ATO RY
The Federal Trade Commission reached a settlement with dealership software provider DealerBuilt over data security failures that allowed hackers to gain access to the personal information of more than 12 million consumers from the databases of 130 dealership clients. The 2016 data breach was traced to an unsecured storage device installed on DealerBuilt’s network by an employee. The device created an open connection port that allowed transfers of information. The breach was discovered by a dealer who found his customers’ data online and alerted DealerBuilt, his DMS provider. According to the FTC, DealerBuilt was made aware of the open port on its storage device by a news reporter. The FTC cited LightYear Dealer Technologies, known commercially as DealerBuilt, for violating the FTC Act, saying its failure to employ reasonable security measures was an unfair practice. More significantly, it also cited violations of the Safeguards Rule, claiming DealerBuilt meets the Gramm-Leach-Bliley Act’s definition of a “financial institution.” The violations included failing to develop, implement and maintain a written information security program; failing to identify reasonably foreseeable risks to the security, confidentiality and integrity of customer information; and failing to implement basic safeguards and regularly test their effectiveness. The settlement prohibits DealerBuilt from handling consumer data until it has a security program in place that complies with Safeguards Rule, and requires the company to obtain third-party assessments of its security program every two years. It also requires a senior DealerBuilt officer to provide the FTC with annual certifications of compliance. The FTC does not have authority to seek monetary penalties for a first violation, but if the company violates the settlement, it could be fined up to $42,530 per violation.
NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s a look at the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities.
L E G I S L AT I V E
Sen. Richard Blumenthal (D-Conn.) has again introduced a bill – with Sen. Ed Markey (D-Mass.) as his co-sponsor – to ban the sale of used vehicles with an open recall. The Used Car Safety Recall Repair Act would require used vehicle dealers to repair any outstanding safety recalls before selling, leasing or loaning them to customers. Blumenthal called it “a no-brainer measure to protect American consumers and our roads from unsafe cars.” Blumenthal has introduced similar bills multiple times over the years but all have been defeated before coming before the full Senate for a vote, thanks in part to NIADA, which opposes such legislation and has lobbied extensively against it. NIADA has already met with legislators to advocate against Blumenthal’s latest recall bill. While NIADA opposes legislation banning sales of used cars with open recalls, the association strongly recommends that its dealer members check their inventory for any open recalls and have them repaired prior to sale if possible. If the repair cannot be completed immediately – primarily because parts are not available – NIADA strongly recommends dealers disclose the existence of the open recall to their customers at the time of sale.
Region III vice president Scott Allen hoists the PAC Cup to celebrate his region’s victory in the 2018 competition, which raised a total of $212,000 for the NIADA-PAC Fund.
PAC
The PAC Cup competition is officially underway. The friendly fundraising competition pits NIADA’s four geographical regions against each other, with the Cup going to the region that contributes the most to the NIADA-PAC Fund through the National Policy Conference in Washington D.C., which is coming up Sept. 23-25. Last year’s competition raised a record $212,000 for the PAC Fund – more than double the previous mark. For the first time, Region III, representing the nation’s midsection, won the Cup, barely edging four-time defending champion Region II (Southeast). This year, more than $22,000 has been contributed so far, with Region I taking a slim early lead over Region III in the competition. The PAC Fund allows NIADA to contribute to candidates for office who will protect the interests of the used vehicle industry and small business. The PAC Cup will be awarded at the Tuesday night dinner during the National Policy Conference, at which NIADA will also honor legislators who support our industry. During the NPC we’ll also present the third annual NIADA Legislator of the Year award to a lawmaker who has made an outstanding effort to advance the cause of independent dealers and small business. The winner will join previous recipients Rep. Mike Kelly (R-Pa.) and Rep. Roger Williams (R-Texas) in that prestigious honor. The NPC includes briefings with federal regulatory agencies that oversee the used vehicle industry – and your dealership – and is highlighted by the Day on the Hill, your chance to meet face-to-face with members of Congress to tell them your story, your concerns and how your business and customers are impacted by the decisions they make. For more information or to register, visit www.niadapolicyconference.com.
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GRASS ROOTS
Colorado IADA is among the organizations fighting an executive order issued by Gov. Jared Polis proposing to adopt California’s strict standards on the percentage of zeroemission vehicles offered for sale by new car dealers. The new standard would mandate that 10 percent of manufacturers’ fleets in the state must be zero-emission vehicles, such as fully electric cars. The Colorado Air Quality Control Commission announced it will hold a hearing this month on whether to adopt the proposed ZEV Rule. State officials and the major auto manufacturers have had talks but have not been able to agree on a voluntary alternative. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
ACCELERATE |
By GWC Warranty
BIG AUCTION WINS
Outside-The-Box Ideas to Stand Out The used car industry is more competitive than ever before. Everywhere you turn you and your competition are going head to head on the vehicles customers in your area want. Overcoming this obstacle is all about standing out from the crowd. And what better way to step out from the crowd than to step out from your normal acquisition habits? Sometimes the hidden gems are simply hiding in places you haven’t looked before. And once you find them your customers and your bottom line stand to benefit. Hop in the Car Sometimes the best finds reside a few miles farther away than you’re used to. If you’ve been hitting the same auctions year after year, it might be time to extend your radius a bit. You might just score a car that’s what you’re looking for and more for your customers. Hop on the Internet Online auctions may be a new frontier but might just be the ticket to the cars you and your customers desire. Test the waters and get on the web to see if you can find a new frontier for vehicle acquisition. Not to
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Everywhere you turn you and your competition are going head to head on the vehicles customers in your area want. Overcoming this obstacle is all about standing out from the crowd. mention if you find some you like you can start finding cars from the comfort of your office chair. Hop on the Phone You might even be able to find some dealers outside of the live or virtual auction lanes. If you’re in an area near a senior home, you might be able to make a connection to get vehicles as new residents are looking to offload them. Or maybe you operate near a college and graduates moving onto new jobs are trading up to a new car. Both scenarios give you the opportunity to find unconventional avenues to score big when acquiring new inventory.
INDUSTRY NEWS
| By Auto Fin Journal Staff
EQUIFAX OFFERS DATA TO FINTECH SANDBOX STARTUPS
Promoting Technological Innovation Equifax is sharing in hopes of cultivating technological innovation. The global data, analytics and technology company recently announced a joint collaboration with FinTech Sandbox to help drive global fintech innovation. Equifax highlighted that startups can now leverage various forms of consumer and commercial data from the company in an effort to help these new businesses develop products for the benefit of the industry and consumers. Nonprofit FinTech Sandbox promotes innovation in the financial sector by making data and infrastructure available to well-qualified fintech startups. In return, Sandbox startups collaborate with current and past residents by sharing learnings and advancements with respect to the fintech ecosystem. Participating startups pay no fees, and no equity is taken, according to a news release from Equifax. In addition to data, Equifax said it will give
analytical support to the Sandbox by allowing access to its Ignite portfolio of data and advanced analytics solutions. The portfolio can securely and comprehensively support the full analytical lifecycle – from data access and transparency to visualization and deployment – using a single, connected suite of advanced analytics processes, technology and tools. “The fintech industry is moving fast, and I’m so proud that we have an opportunity to collaborate around our shared mission for advancing the industry,” said Equifax AtlFi and fintech leader Sharla Godbehere. “We look forward to helping influence the Sandbox’s next generation of leaders with our data and analytical tools. “We’re also offering our expertise in this space. Being a fintech company, we understand the challenges of bringing all the pieces together to make a product work. This is an exciting opportunity to partner and share our personal insights and experience
with these startups.” Equifax has earned a spot on the IDC FinTech Rankings list consecutively for the past 15 years since it has been produced. It has one of the most comprehensive vendor rankings within the financial services industry.
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August 25, 2019 Eagle Creek Golf Club Pete Dye Championship Golf Indianapolis, IN
2019 IIADA ANNUAL GOLF TOURNAMENT AWARDS DAY AND
TRADE SHOW
Save the date
08 25 2019
Eagle Creek Golf Club 8802 W. 56th Street Indianapolis, IN 317.297.3366 Breakfast & Registration - 9:00 am Shotgun Start - 10:00 am After Golf - Dinner
Directions to Eagle Creek From 465: Take Exit 19. West on 56th Street to first stoplight west of Eagle Creek Reservoir. From I-65: Exit at Lafayette Road. South to 56th Street. West on 56th Street to first stoplight west of Eagle Creek Reservoir.
Registration and Information: Phone: 219.661.0287 • Email: iiada@comcast.net
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Registration Form Name______________________________________________ Spouse/Guest Name____________________________________ Company Name_______________________________________ Address_____________________________________________ City________________________________________________ State____________ Zip_______________ _________________ Phone______________________Fax______________________
Golf Outing Entry Form Participants Names:
1. _________________________________________________ Company ___________________________________________ 2._________________________________________________ Company____________________________________________ 3 ._________________________________________________ Company____________________________________________ 4 ._________________________________________________ Company____________________________________________
SPONSORSHIP OPPORTUNITIES
Platinum - $3,000
Registration and Sponsorship* Totals
Breakfast, Golf, & Dinner - $120/Person
______
Platinum Sponsorship - $3,000
______
Includes registration for foursome, sponsorship of dinner.
Diamond Sponsorship - $2,000
______
Gold Sponsorship - $1,500
______
Diamond - $2,000
Silver Sponsorship - $700
______
Bronze Sponsorship - $400
______
Total Enclosed
______
Includes registration for foursome, sponsorship of breakfast.
Gold - $1,500
Includes registration for twosome, sponsorship of beverage cart.
Silver - $700
Sponsorship of Closest to the Pin, Longest Putt or Longest Drive
Bronze - $400
Sponsorship of Golf Hole All sponsors may participate in trade show and will be recognized in Car Lines.
___Money Order/Check Enclosed
email registration: iiada@comcast.net Fax Registration CREDIT CARD ONLY: 219.663.5294 ___Visa ___MasterCard Card No.______________________ Expiration Date___________ Security code________ Name on Card (please print) _______________________________ Card Holder’s Signature __________________________________
All golfers must have entry fees paid by August 15. Phone: 219.661.0287 Email: iiada@comcast.net
Please send entry fee to:
Indiana Independent Auto Dealers Association P.O. Box 1393 Crown Point, IN 46308 WWW.IIADA.COM AUGUST 2019 CAR LINES 15
REGISTER NOW
• Training for new & experienced operators • Network with industry experts • Capital to fund your operation • Collections & underwriting training • Best practices that work today and in the future • The latest marketing strategies • Legal and compliance updates • Exhibit hall with all the latest products & services • New industry technology • And MUCH MORE!
Visit: NABDsubprimeconference.com or call: 832.767.4759 16 CAR LINES AUGUST 2019 WWW.IIADA.COM
Choose Your
Conference Experience
ELITE Package
Express Package
Early Bird:
Early Bird:
Regular Rate: $895
Regular Rate: $695
$695
$495
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage • Separate Check-in Counter • VIP Meet & Greet Reception • Monday, VIP Sky Bar Party
• All Educational Sessions • Includes General and Breakout Session • Exhibit Hall Access (4 sessions) • Includes Food and Beverage
HOTEL INFORMATION Marriott Marquis Chicago McCormick Place 2121 S Prairie Ave Chicago, IL 60616
Room Rate: $199/night + tax Reservations: Phone - 312.824.0500 (Reference BHPH Conference)
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ASSOCIATE MEMBERS IIADA Associate Membership is available to automotive related businesses. Please call 219-661-0287 for more information on Associate Memberships.
700 Credit
BirdEye, Inc.
David Tulkin 650.313.5225 David.tulkin@birdeye.com
Donn H. Wray
Britney Fischer 586.915.4703 bfischer@700credit.com www.700credit.com
Legal Counsel Stoll Keenon Ogden 201 N. Illinois Street, Ste. 1225 Indianapolis, IN 46204 317.608.4369
ACV Auctions
Drive1 USA, Inc.
Dennis Carey 260.350.2617 dcarey@acvauctions.com
AFC
Stephanie Freeman 317.343.5020 Stephanie.freeman autofinance.com
AFS Dealers LLC
Bill Elizondo 972.322.0730 www.afsdealers.com
AFS Dealers
Bill Elizondo 972.322.0730 bill@afsdealers.com
Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 Phone: 219.670.0542 Email: Bnorton@drive1usa.com
Encompass Dealer Services Terry Schwer 765.969.1692 terry@encompassdealers.com
Envirotest Titling & Registration Kevin Lewis 1445 Brookville Way Suite G Indianapolis, IN 46239 317.322.0020 www.etrindiana.com
Envirotest Titling & Registration
Brad LeBlanc 513.317.9861 brad@aogllc.com
Kevin Lewis 1111 S. Green River Rd. Suite 100 Evansville, IN 47715 812.909.0116 www.etrindiana.com
ASC Warranty Co. Inc.
Envirotest Titling & Registration
Alpha Omega Group
Susan Williams/ Clayton Morgan 800-442-7116
AutoZone
Gerry Sutter gerald.sutter@autozone.com 440.263.3389
BirdEye, Inc.
David Tulkin 650.313.5225 David.tulkin@birdeye.com
Coastal Credit LLC
Austin McFarland 317.727.2778 amcfarland@coastalcreditllc.com
Consolidated Automotive Services
Chris Walsh 812.988.8300 www.consolidated autoservices.com
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Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 219.661.8220 www.etrindiana.com
GWC Warranty
P O Box 7900 Wilkes-Barre, PA 18773 317.374.6271 www.gwcwarranty.com
HBK CPAs & Consultant Rex Collins 330.758.8613 rcollins@hbkcpa.com
Insurance ProfessionalsDealer Specialists Steffy Hatoway Jan Hatoway Office: 317.861.4411 Cell: 317.750.3032
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
Integrity Warranty, LLC
Paul Mulready 423.355.8353 pmulready@integritywarranty.com www.integritywarranty.com
Lincolnway Insurance Services Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.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
Pull A Part of Indianapolis LLC Mark Cohen 2505 Producers Lane Indianapolis, IN 46218 Phone: 678.327.5584
Reliable Auto Finance
Lester Dean PO Box 9700 Wyoming, Michigan 49509 616.438.3591 Fax: 616-245-5978 lesterd@reliableautofinance.com
Somerset CPAs
Jane Saxon, CPA 3925 River Crossing Pkwy. Indianapolis, IN 46240 317.472.2183 jsaxon@somersetcpas.com
Spireon
Dave Boekholder 800.557.1449 dboekholder@spireon.com
Strategic Consulting Jeff Bond 317.363.6458 jeff@scspro.net
National Auto Auction Association
T & J Dealer Services
6196 US Hwy 11, P O Box 569 Canton, NY 13617 888.963.5369 www.frazer.com
Nationwide Cassel LLC
Teipen, Selanders, Poynter & Ayres, P.C.
Frazer Software
NextGear Capital
Frazer Computing Inc.
Custom Dealer Products Bill Ecklor 260.415.9119
Freedom Warranty
John Skelton 423.207.1333 www.freedomwarranty.com
Guardian Finance Company
Tom Lloyd 513.515.5442 tlloyd@guardianfinancecompany.com
Frank Hackett 301.696.0400 naaa@naaa.com
Mark Plunkett mplunkitt@nationwideloans.com 317.441.1637 Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com
NVP Warranty
Art Mastyugin 888.270.5835 art@nvpwarranty.com
Preferred Warranties, Inc.
Gregg Reidenbach/Guy Loeffler 800-548-1121 info@warrantys.com www.warrantys.com
Justin Stuckey 260.403.2410 justin@dealerservices.com
Certified Public Accountants Barnett Sapurstein, CPA 317.598.6700 bsapurstein@teipencpa.com
Turner Acceptance
Jonathon Turner Phone: 773.290.5007 turneracceptance.com
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