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W W W.II A DA .C O M www.iiada.com
SEPTEMBER 2016 / CAR LINES 1
DEALER BEST PRACTICES / BY CHET HEUGHAN
VENDOR MANAGEMENT
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>> What Lenders Want to Know
About Your Dealership
VENDOR MANAGEMENT has become somewhat of a buzzword in the consumer lending industry, especially around auto lending. It has always been a financial institution’s responsibility and obligation to know who they are doing business with and how loan applications are reaching their institutions. The Consumer Financial Protection Bureau, however, has further emphasized financial institutions are responsible for the end product. This is to say that any negative actions taken by the dealer will become a problem for the lender. Within franchised dealerships the vendor management requirement is aided by a strong presence from the manufacturer. For example, a franchise dealer has certain covenants that require financial reporting, including minimum capital thresholds, required training and certifications. Franchised dealers also benefit from the monitoring of customer satisfaction surveys, detailed inventory tracking and industry benchmarks provided by other franchise dealerships selling the same brands. Independent auto dealers represent a unique challenge for many lenders. Independent auto dealers often vary in size, financial strength, operational models, inventory and experience. Unlike most franchise dealerships, independent auto dealers do not have the support of a franchise offering multiple checks and balances. It is easy to understand why lenders then tend to gravitate toward independent dealers that look and act more like a franchise dealership. As indirect auto lending has become more competitive and lenders struggle to increase yield, many have had to broaden their credit spectrum and move closer toward subprime lending or expand their dealer network outside their traditional relationships. To do this lenders have had to modify their dealer underwriting and dealer management models to fit smaller dealerships with more diverse revenue and sales models. In years past independent auto dealers had to meet the same minimum criteria for doing business with the lender as a franchise dealership, but times are changing. Many lenders have multiple programs and mitigate the risk of smaller dealerships with low working capital and minimal experience by using a third-party risk mitigation platform. With many of these platforms, small or new independent dealerships can gain access to the same national programs as large franchised stores. Lenders are able to serve independent dealers because thirdparty risk mitigation platforms are helping bring efficiency and transparency to the transaction. www.iiada.com
For example, independent dealers may be subject to more frequent underwriting, additional verification steps and less direct access to loan underwriters. While there is more work on the dealer’s side, these steps also benefit the stores’ owners by helping identify fraud attempted by customers or rogue employees. The days of simply signing a lender’s dealer agreement and providing a few supporting documents to gain access to their retail financing program are drawing to a close. Lenders are being required to truly know and manage their dealer relationships. This means updating key pieces of data and underwriting each dealership on an annual basis. As an independent auto dealer it’s important to understand what lenders are looking for and be prepared to provide the documentation needed annually to avoid disruptions in your lenders’ retail financing programs. Lenders will be evaluating the dealer principals, the dealership itself and inventory. They will be looking at credit reports that indicate bankruptcies, tax liens, past-due accounts, and potential fraud or identity theft. In addition, lenders will check criminal history reports and verify addresses, property ownership, bank statements, business financial statements and tax returns. Lenders will also be looking at more subjective data such as references from your auctions, floor plan lenders, warranty providers and personal references. You should be prepared to provide proof of insurance, copies of bonds and licenses, and expect a yearly site visit and basic inspection of your facility. Lenders really want your business, but they must first know who you really are. Creating your own internal process for managing due diligence requests from lenders and thirdparty risk mitigation service providers will make this process easier and more efficient for you. Understanding what lenders are looking for and providing it in a timely manner goes a long way toward building a strong profitable relationship along with the ability to compete with your neighboring franchise stores. Chet Heughan is director of AppOne® Risk Mitigation Services and Indirect Lending for Wolters Kluwer. For more information, please visit www. wolterskluwerfs.com.
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INSIDE WHAT’S NEW
2016 National Leadership Conference NIADA’s National Leadership Conference will be held September 26-29 at the Dupont Circle Hotel in Washington, D.C. Once again, the Leadership Conference will be combined with a Legislative & Regulatory Summit and Lobbying Day on Capitol Hill. This important event will help frame the NIADA Legislative & Regulatory agenda for 2016 2017 and beyond as NIADA’s legislative committee and association leadership meet face-to-face with legislators and continue their important work. For more information, visit www.niada.com.
07 INDIANA DEPARTMENT OF REVENUE UPDATE 09 INDIANA LEGISLATIVE UPDATE 10 T RADITION AND TRENDS NEED TO WORK TOGETHER 12 CARLAWYER 15 CASHING IN ON LEADS 19 WASHINGTON UPDATE 22 W HAT TO POST ON FACEBOOK ADVERTISER’S INDEX
ADESA........................................................... IFC Autotrader .....................................................IBC AutoZone .........................................................14 Black Book........................................................ 5 Dyer Auto Auction.............................................. 6 Kesler Schaefer AA............................................. 9 Manheim ..................................................... 10,11 Manheim Indianapolis....................................... 3 Manheim Pennsylvania..................................... 13 NextGear Capital...............................................12 PassTime ......................................................... 15 Paymaxx Pro ..................................................... 8 VAuto..................................................Back Cover
OFFICE
For information on how to become a member of IIADA, please call 219.661.0287 128 S. East Street # 1393 Crown Point, IN 46308 iiada@comcast.net • www.iiada.com
NIADA HEADQUARTERS National Independent Automobile Dealers Association www.niada.com www.niada.tv 2521 Brown Blvd. Arlington, TX 76006-5203 phone (817) 640-3838
For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. Car Lines is published 10 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; 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 Senior Art Director/Production Manager Christy Haynes • christy@niada.com Printing Nieman Printing
4 CAR LINES / SEPTEMBER/OCTOBER 2016
AUCTION NEWS / BY AUTO REMARKETING STAFF
TOYOTA RECALLS 482K HYBRIDS >> Curtain Shield Air Bags
TOYOTA MOTOR SALES USA announced recently it is conducting a safety recall of approximately 482,000 vehicles to correct an issue with the curtain shield air bags. The action by Toyota is unrelated to the ongoing Takata airbag recall. Included in the campaign is the Toyota Prius from the 2010 through 2012 model years, the Toyota Prius Plug-In Hybrids from the 2010 and 2012 model years as well as the 2011 and 2012 Lexus CT 200h. The automaker explained the involved vehicles are equipped with curtain shield air bags (CSA) in the driver and passenger side
roof rails that have air bag inflators composed of two chambers welded together. The OEM indicated some inflators could have a small crack in the weld area joining the chambers, which could grow over time and lead to the separation of the inflator chambers. “This has been observed when the vehicle is parked and unoccupied for a period of time,” officials said. “If an inflator separates, the CSA could partially inflate, and, in limited circumstances, one or both sections of the inflator could enter the interior of the vehicle. “If an occupant is present in the vehicle, there is an increased risk of injury.” Owners of the involved vehicles will be notified by first class mail. Toyota and Lexus dealers will install retention brackets on the curtain shield air bag inflators at no cost. “These retention brackets are designed to prevent the inflator chambers from entering the vehicle interior if separation occurs,” officials said.
BOARD MEMBERS 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
Harold Drees H.T.D., Inc. 200 E. Main Street Thorntown, IN 46071 317.402.2312 Fax: 765.436.7222 htdinc@msn.com
Ed White White’s Auto Sales 1105 McKinley Ave. Rensselaer, IN 47978 219.866.7553 Fax: 219.866.7256 edwhite123@att.net
Doug Alvey First Class Auto Sales, Inc. 695 W. 900S Hebron, IN 46341 219.996.2600 Fax: 219.531.4628 talvey65@yahoo.com
John Stumpf Greater Kalamazoo Auto Auction P. O. Box 697 Schoolcraft, MI 49087 269.679.5021 jstumpf@kalamazooaa.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
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
David D. Baldwin II Best Deal Auto Sales, Inc. 1875 SR 8 Auburn, IN 46706 260.357.0099 Fax: 260.357.0090 dbthesecond@yahoo.com Debbie Andersen Executive Director 128 S. East Street # 1393 Crown Point, IN 46308 219.661.0287 iiada@comcast.net
Travis Baldwin Best Deal Auto Sales 2526 Scotswolde Drive Fort Wayne, IN 46808 Phone: 260.483.7999 travisbaldwin@ bestdealautosalesonline.com Taryn Sanchez Whites Auto Sales LLC 1105 N. McKinley Avenue Rensselaer, IN 47978 Phone: 219.866.7553 twhite1517@att.net
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AUCTION NEWS /
DEEPEST SYMPATHY
>> Auction Veteran Gregg Kobel Passes Away AUCTION VETERAN GREGG KOBEL died June 24. He was 67.
Spending more than four decades in the auto auction industry, Gregg served as National Auto Auction Association president in 2007-2008. Kobel was also president and director of the Midwest Auto Auction Association. In 1969, Kobel entered the auto auction business with the opening of Auction Way Auto Auction in nearby Crestwood, Ill. Nine years later, when Joe Lyng bought Greater Chicago, he hired Kobel to be the general manager and vice president for both operations. When General Electric bought the two independent auctions in 1987, the company kept him as general manager for both auctions. Kobel remained in that position after Manheim acquired the auctions in 1991. Kobel’s opportunity to become an auction owner came in 1996 as he teamed up with Tom Crane to purchase a small auction in Crestwood that they renamed Tri-State Auto Auction. In a decade, they grew the business from 200 cars a week to 1,600 cars a week. He later joined South Bend Mishawaka Auto Auction where he served as general manager and vice president, before being named executive vice president in 2011. Gregg was the oldest of seven children born in the Chicago area. He was the beloved husband of Patricia; loving father of James (Sherri), Brian (Jennifer) and Phyllis (Sam) Kotsonis, and devoted grandfather to Madeline, Brett, Julia, Paul, Brian Jr., and Kristin. The funeral service was held Wednesday, June 29. In lieu of flowers, donations may be made to the Alzheimer’s Association (www.alz.org).
Gregg Kobel SAFETY WATCH / BY USED CAR NEWS
CHEVY RECALLS IMPALAS FOR AIR BAG ISSUES Disable Passenger Air Bag
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>> Damaged Wires Could
GENERAL MOTORS LLC IS RECALLING 289,254 model year 2009-10 Chevrolet Impala vehicles manufactured April 25, 2008, through Feb. 16, 2010. The front passenger seat frame may contact and damage the wires of the passenger presence sensor module. If the wires are damaged, the passenger presence sensory system may fail to recognize the passenger seat is occupied, disabling the air bag. Damage may also cause the air bag fuse to short resulting in a loss of all air bags and seat belt pretensions. Both conditions increase the risk of injury during a crash. GM will notify owners, and dealers will double wrap the wires with anti-abrasion tape and replace damaged wires as necessary, free of charge. GM’s recall campaign number is 36110. 6 CAR LINES / SEPTEMBER/OCTOBER 2016
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REGULATORY NEWS /
INDIANA DEPARTMENT OF REVENUE UPDATE AS A GENERAL RULE OF THUMB, the sales tax rate imposed on all retail transactions in Indiana is 7 percent. However, there are some exceptions specifically directed toward the sale of vehicles to individuals or entities who intend to title and register the vehicle for use in another state or country. Effective July 1, 2016, the sales tax rate imposed on such sales is the state-level sales tax rate of the state in which the vehicle will be titled and/or registered. When the purchaser of a motor vehicle intends to both (a) transport that motor vehicle to a destination outside Indiana within 30 days after delivery, and (b) title and register that motor vehicle for use in another state or country, the rate at which sales tax is to be imposed and collected on the sale is the rate of the intended destination state or country. The sales tax rates of the other
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>> Sales Tax on Vehicle Sales
states are inclusive of only statelevel rates. Any locally imposed sales tax rates in the other states are not included in the rates Indiana dealers will be required to collect. If the destination state does not impose a sales tax, either in general or on purchases of vehicles, then no sales tax is to be collected by the
Indiana dealership. In these situations, only the sales tax rate is impacted. All other laws and guidelines pertaining to sales of motor vehicles in Indiana still apply. More information is available in Sales Tax Information Bulletin #28S and Sales Tax Information Bulletin #84.
SEPTEMBER 2016 / CAR LINES 7
MANAGEMENT MATTERS / BY KENNY ATCHESON
ENTREPRENEURS AND HARD WORKING EMPLOYEES MAKE AMERICA GREAT
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>> Train and Appreciate
ONE QUESTION I HEAR OFTEN IS, “What if we put a lot of money into training an employee and then they leave?” My response is, “What if you don’t train an employee and they stay?” Train employees, and not just up front. Appreciate employees, and not just on Labor Day. I’m sure nearly everyone has done business in a place stocked with employees who are not highly disciplined, fully capable or able to function as team members. Customers want to be comfortable when parting with their money. The person they deal with should know what they are talking about and be nice about it. Nowadays, customers are part of any company’s marketing team because they can and will voice their opinions about any business before they walk out the door or leave their table at a restaurant. A Nielsen
study showed that recommendations from friends and family and consumer opinions posted online are the top two most trusted forms of advertising. A bad review on Facebook, Google or any number of places is like graffiti splattered across a storefront that says, “Don’t shop here.” Employees are the most important part of any marketing team because they deal with customers the most. Their attitude, experience and service affect any other marketing that money is spent on. Appreciate your team. A WorkplaceDynamics study of roughly 1 million Americans revealed the two things employees want most in the workplace. Neither was “more money.” However, one was “To feel appreciated for their contribution.” Show your appreciation for your team to get more of the behavior you are rewarding. As you train and appreciate your employees, I take this moment to appreciate you the entrepreneur. You are a job creator. As such, you pay more than your fair share of taxes and regulatory fees that are disguised from what they really are – more taxes. Each year I like to celebrate you over Labor Day because of what you went through to get here and what you will continue to do to excel. Leadership comes with a certain amount of responsibility, determination, investment, success and learning experiences. As a leader you deal with stress and decisions on a day-to-day basis most
people will never understand. You also have a significant amount of sacrifice and risk. Every entrepreneur gets to hear media and politicians regularly vilify business owners. By the age of 18, the average TV viewer has seen businessmen and businesswomen attempt more than 10,000 murders and countless lesser offenses ranging from extortion and bribery to kidnapping and dumping toxic waste, according to a survey by the Media Institute. If you let your guard down for a moment, the pressure can get to you. That is why I am such a big fan of author Daniel Lapin. His writing and teachings make me feel proud to be an entrepreneur. He puts things into perspective like few can. As a fan of the book Thou Shall Prosper, I reached out to Lapin for an interview to share with other entrepreneurs. The interview is available for free at www.DealerProfitPros. com/RDL. Here are a few quotes from his book: “In a fair, transparent marketplace, you cannot make the money in the first place without benefitting other people. If you chose to give away money that is fine, but it is not the justification for making money.” “Philanthropists ‘give back to society’ implies that for-profit activities ‘take from society.’” “If you cannot wrap yourself around the notion that other humans are worthy of your committed service and that you are not diminished but are instead elevated by providing that service, you will never really excel at what you do.” “By remaining exactly the same today as you were yesterday, you are guaranteeing that tomorrow will be no better than today.” “When spending time on cost containment you could be spending time on revenue activities.” “Profit tells you that you are supplying a need and filling other people’s wants. They are not the motivation for your work. They are the validation of your work.” Because Labor Day is a public holiday held in honor of working people, I celebrate the employees and the entrepreneur, because they work too. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny offers private consulting, teaches workshops, and speaks at conventions and 20 Groups. Learn more at www.DealerProfitPros.com.
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DEALERSHIP BLOGGING >> Does it Really Work?
EVERYONE LOVES FREE INFORMATION. And free information brings in customers. In fact, 90 percent of future car buyers report they search online for answers to their questions about their next vehicle purchase or service. THREE STRATEGIES FOR BLOGGING SUCCESS Because of this push for knowledge, blogs are no longer a luxury. But you have to do it right if you want to get the best results for your dealership. 1. Become an industry expert. Defy the stereotypes! Show future buyers that dealing with car dealers actually can be better than eating worms! Online research can frustrate customers, partly because we often let third-party sites educate them with inaccurate and confusing information. Blogging is one of the best ways for your dealership staff to establish authority and expertise. Once Google realizes you’re an authority on the topic(s) customers are searching for, you’re going to see increased traffic from search engines. And who doesn’t want to drive more traffic to their website? 2. Stick to a schedule. I often see dealerships post a few blogs
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and end up quitting. You have to blog regularly and remain focused on providing high-quality information. Did you know that Google knows the difference between high and low quality? This is one of Google’s 200 ranking factors! Make sure you create a schedule you can maintain by creating an editorial calendar. 3. Tackle current issues. Talk to your staff and find out the “top 10” questions they answer on a regular basis. You can do this for both sales and service. Make sure to write posts about your local area and events because this will also boost your local relevancy. Another hint? Review everything! Customers often add the word “review” to many of their searches. Keep in mind that you must write fresh content instead of copying and pasting from your manufacturer’s website. Google and your customers know the difference. The icing on the cake? Ongoing communication is like marketing: You have to stay top of mind with your clients. How else are you going to provide customers with a steady stream of information without scaring them away? Customers may ignore your ads, but blogs include content they actually want to read. Supplying this content gets them to your website and helps humanize your dealership. 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.
ASSOCIATION NEWS /
QUALITY DEALERS DUEL IN CHARITY AUCTION
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ONLINE MARKETING / BY CHELSEA MAGEE
>> $27,500 Raised for NIADA Foundation
ANDREW GUROWITZ, the owner of Fairfax Motors in Fairfax, Va., placed the winning bid of $27,500 on a 2015 Chrysler 300 Limited donated by ADESA, AFC, IAA and TradeRev in an auction to raise funds for the NIADA Foundation. All proceeds from the auction, which was held during the NIADA convention, benefit the foundation, which spearheads the association’s commitment to charitable giving as well as awarding scholarships to deserving college-bound students across the U.S. and providing training and educational opportunities to automobile dealers and the general public. The vehicle, an ivory 2015 Chrysler 300 Limited with a black leather interior, a skyslider roof, a wood-grain dash and 9,320 miles on the odometer, will be delivered to Gurowitz free of charge by ADESA/AFC/IAA/TradeRev. Gurowitz, Virginia’s 2015 Quality Dealer, prevailed in a spirited bidding battle with California’s 2015 Quality Dealer, Mehdi Chitgari of Classic Chariots, Vista, Calif.
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MANAGEMENT GAMEPLAN / BY SCOTT BERGERON
TRADITIONS AND TRENDS NEED TO WORK TOGETHER
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>> Finding a Successful Blend
THERE’S A REASON traditions exist. They grow out of established, credible and time-tested circumstances. Trends, on the other hand, can be today’s hot attraction, which may or may not stand the test of time. How can a dealership capture the best of today’s trends and blend them successfully into a tradition-based program that drives more
sales on a consistent basis? CRM and Personal RelationshipBuilding There’s no question technology-driven Customer Relationship Management programs are firmly established as a trend. In all likelihood, CRM will become a tradition over time. But for now it’s still a relatively new and shiny toy many dealerships have embraced as a bedrock organizational and sales tool. CRM enables data mining about customers as well as regular communication with them. In essence, it can serve as the engine that drives relationship-building because it brings evidence-based intel to the table. Depending on the CRM used (and how consistently and completely it is adhered
to), salespeople can gain valuable information about buying history and preferences, and communication preferences. It’s gotten to the point where CRM can tell a dealership how often to communicate with a customer via email, and what not to do (e.g., overwhelm with too many emails that end up alienating the customer). But without tires the vehicle won’t move very far. All the technology-driven protocols in the world can only go so far toward the time-honored tradition of relationshipbuilding. This is the ability through interpersonal contact to establish and maintain trust, comfort and likeability with prospective and present customers. In the rush toward technology trends (e.g., Internet car-shopping and pricing tools), there’s a tendency to embrace the former and forget the latter. The truth is successful salespeople need both – the “scientific” piece that CRM systems can bring to the table and the “artistic” ability to develop rapport oneon-one. When the two work in harmony, dealerships get the best of both worlds. Buyers are “primed” by the CRM outreach that shows the dealership understands them and gives them useful information. In-person relationship-building then seals the deal. Here’s what can happen if the two aren’t working side by side: a prospective buyer walks into a dealership and is basically ignored by salespeople nearby because they’ve been schooled not to be too pushy or aggressive. (In some cases, it’s just plain laziness.) Armed with the amount of information available online, salespeople today too often assume a prospect will seek them out if interested. In the interim, they give them space. In reality, this is the worst way to proceed. It’s happened to me. I wound up feeling ignored rather than valued. Instead, a salesperson could have introduced himself/ herself and offered to help – without coming across as pushy. This would have set the tone for a pleasant and productive discussion and potential sale. Internet Shopping vs. Instinct Another “trend” (yes, many will say it’s
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The trend is no-haggle pricing.
The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences.
they’ve achieved a lower price through negotiation, they won’t buy at all – or at least they will be reluctant. Here’s another perfect example of how trend and tradition can complement each other perfectly. The trend is nohaggle pricing. The tradition is to play the negotiating game. Both are valid. It depends on buyer preferences. So find out what those preferences are, then go one direction or another – or both. Read the prospective buyer carefully, then adjust as gut feelings dictate. If someone comes in and is adamant from the get-go about a firm price, so be it. If it’s unclear what their preferences might be, ask. (Then, have an option to fit their preferences. If they want to negotiate, be prepared to shift gears from one-price shopping.)
Then, of course, there’s the hybrid – a buyer who wants the firm price and wants to negotiate from there. Decide if/how to address this scenario. In short, prepare your salesforce to deal with all types of buyers. Because just as the U.S. is a melting pot of different ethnicities, so is the car buying population a melting pot of preferences. Those preferences can best be addressed by honoring both trends and traditions. Former dealer executive Scott Bergeron is the founder and principal at Daily Gameplan (www.dailygameplan.com), a sales team performance company. Daily Gameplan’s Red Books and cloud-based CRM have been used in thousands of dealerships throughout the United States. Bergeron can be reached at 303.918.3169 or scott@dailygameplan.com.
here to stay) is Internet-based car shopping and pricing. There’s no doubt the abundance of Internet information has led to much more savvy and educated buyers. This is great because it opens the door for a salesperson to build rapport based on instincts instead of just answering pedestrian questions about a potential car or sale. However, exercising those traditional instincts seems to be a lost art in too many dealerships. Salespeople often are cast as order-takers, there to follow through on customer requests. As with the CRM example above, this is leaving a big (some would say the biggest) piece of salesmanship on the salesroom floor. Instincts can be wonderful because they work at a level technology doesn’t. Properly tuned in, a salesperson can intuit buying clues just by observing a prospective buyer’s body language, movements, gestures and actions. For example, a prospect is viewing pricing information on a particular vehicle, then throws up his hands. That well could indicate frustration, or is it exhilaration? The alert salesperson will make sure to find out, and take the conversation in the direction it needs to go from there. While instincts themselves can’t be trained, awareness of when and how to use them can. This needs to become, once again, a key part of salesforce training – at the time of hiring, and periodically thereafter. Even if the new hire is a seasoned pro, the “hows” of exercising instinct may need to change depending on previous experience and current dealer aims. Iron-Clad Internet Pricing vs. Art of the Deal Following through on the trend of all things Internet, one-price-no-dickering shopping has become the rule, not the exception. Why? Yes, I know a gazillion surveys have said buyers don’t want to haggle or be hassled in the price-shopping arena, and that a oneprice policy makes them feel much more at ease and trusting. Well, that’s great for those people. But what about those who like to haggle? There are still many buyers out there who live for the art of the deal. If they can’t feel like
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SEPTEMBER 2016 / CAR LINES 11
LEGAL UPDATE / BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO
THE CARLAWYER
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>> Keeping You Informed with
the Latest Governmental Issues and Activity in the Used Car Industry
This Month’s CARLAWYER Compliance Tip Does your compliance officer (don’t tell us you don’t have one) regularly visit the websites of the CFPB, the FTC, your state’s attorney general and your state’s motor vehicle and consumer protection agencies to see what they are up to? That’s a good (and inexpensive) way to head off legal problems before they get started. If that’s not on the schedule, it should be. Better yet, get alerts sent to your compliance officer. You don’t have to like the CFPB or the FTC to follow them on Facebook or Twitter or to subscribe to receive alerts. Federal Developments CFPB targets payday lenders, may hit dealers and finance companies: The CFPB proposed a rule aimed at payday lending. The rule would require lenders to take steps to make sure consumers have the ability to repay their loans, and would cut off repeated debit attempts that rack up fees. These proposed rules would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment and openend loans. The CFPB’s definition of covered loans is broad enough to encompass some typical auto finance activities, so dealers and finance companies should seriously consider participating in the comment process. CFPB announces auto financing aids: On June 9, the CFPB released an “auto loan shopping sheet,” a step-by-step guide, and additional online resources as part of a new “Know Before You Owe” initiative to help consumers shop for auto financing. The bureau claims the shopping sheet helps
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IT’S NEARLY THE DOG DAYS OF SUMMER, but we’re back, passing on what we’ve recently learned about legal developments in the auto sales, finance and lease world. This month, we feature developments from the Consumer Financial Protection Bureau and the Federal Trade Commission, as well as our “Case of the Month.” Remember – we aren’t reporting every recent legal development, only those we think might be particularly important or interesting to the industry. Why do we include items from other states? We want to show you new legal developments and trends. Also, another state’s laws might be a lot like your state’s laws. If attorneys general or plaintiffs’ lawyers are pursuing particular types of claims in other states, those claims might soon appear in your state. Note that this column does not offer legal advice. Always check with your own lawyer to learn how what we report might apply to you, or if you have questions.
The bureau reportedly found
that while many consumers extensively research the types of vehicles they want to buy, most do not take as much time to research available financing options.
consumers see the total cost of auto financing and make apples-to-apples comparisons among financing products. The Know Before You Owe initiative walks consumers through each step of the auto finance process to help them decide how much they can afford to borrow and what options are right for them. The CFPB says its shopping sheet allows consumers to understand the total cost of financing (not just the monthly payment), comparison shop, and watch out for financing features and add-ons that could lead to costly surprises down the road. The Know Before You Owe auto financing initiative can be found at: http://www.consumerfinance. gov/consumer-tools/auto-loans/, and the shopping sheet can be found at http://files. consumerfinance.gov/f/documents/201606_ cfpb_auto-loan-worksheet.pdf. CFPB eyes car financing: On June 27, the CFPB released a report entitled “Consumer Voices on Automobile Financing,” which examines how consumers navigate the process of financing a vehicle. The report is based on findings from consumer focus group research conducted by the bureau and consumer complaint data submitted to the bureau. The bureau reportedly found that while many consumers extensively research the types of vehicles they want to buy, most do not take as much time to research available financing options. Also, the bureau’s analysis of the complaint data shows consumers sometimes had difficulty understanding financing features during loan negotiations. (The bureau insists on erroneously referring to all auto financing transactions as “loans.”) According to the bureau, the complaint data also highlighted consumer problems with the sales process for extended warranties and other add-ons, and few consumers reported focusing on the total cost of financing when
CONTINUED ON PAGE 14 www.iiada.com
specific laws the FTC enforces, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The act directs agencies to implement a “catch-up” inflation adjustment based on a prescribed formula. The maximum civil penalty amount, effective August 1, has increased from $16,000 to $40,000 for a number of violations.
CARLAWYER / CONTINUED FROM PAGE 12 they negotiated their financing contracts. More CFPB complaint data: On June 28, the CFPB released its monthly complaint report, which highlights trends in the complaint data the bureau receives through its Consumer Complaint Database. The monthly report includes complaint data specific to certain companies, overall complaint volume and complaint volume by state, and other trends in the data. Each month, the report spotlights complaints about a particular issue and complaints from a particular geographic location. The June report focused on complaints related to vehicle financing and leases, installment loans, title loans, and pawn loans, and highlighted complaints from consumers residing in Arkansas. The FTC ups the ante: The FTC announced on June 29 it has approved final amendments to its rules that adjust the maximum civil penalty dollar amounts for violations of
14 CAR LINES / SEPTEMBER/OCTOBER 2016
Case of the Month Security interest perfected more than 30 days after debtor took possession of car and within 90 days of debtor’s bankruptcy filing avoided as preferential transfer: An individual and his company bought a car on December 29, 2014. The individual applied for a certificate of title on January 30, and the title, listing the lienholder, was issued on February 17. The individual and his wife filed a Chapter 7 bankruptcy petition on April 16, and the Chapter 7 trustee filed an adversary proceeding seeking to avoid the lien as a preferential transfer. The federal bankruptcy court granted judgment for the trustee. The court noted that the only element at issue in the case was whether the transfer of a security interest in the car was for or on account of an antecedent debt owed by the individual before the transfer was made. Section 547(e)(2)(A) of the Bankruptcy Code provides that if a transfer is perfected more than 30 days after the transfer takes effect between the transferor and the transferee, the transfer is deemed made at the time the transfer is perfected. The court found the transfer was not
perfected within 30 days of the date the individual signed the retail installment contract and took possession of the car. Therefore, the transfer of the security interest was on account of an antecedent debt. Finally, the court rejected the lienholder’s argument the “new value” defense applied. That defense provides an exception to the finding of a preferential transfer for a transfer that creates a security interest in property acquired by the debtor for new value if the security interest is perfected on or before 30 days after the debtor receives possession of the property. Because the security interest was perfected, at the earliest, 32 days after the individual took possession of the car, the court found the defense did not apply. You can bet the bank that bought the finance contract at issue in this case will be demanding the dealer make good on the bank’s losses. See In re Resler (Reynard v. Bank of America, N.A.), 2016 Bankr. LEXIS 2187 (Bankr. D. Idaho June 3, 2016). So there’s this month’s roundup! Stay legal, and we’ll see you next month. Tom (thudson@hudco.com) and Nikki (nmunro@ hudco.com) are partners in the law firm of Hudson Cook, LLP. Tom has written several books and is the publisher of Spot Delivery, a monthly legal newsletter for auto dealers. He is Editor in Chief of CARLAW®, a monthly report of legal developments for the auto finance and leasing industry. Nikki is a contributing author to the F&I Legal Desk Book and frequently writes for Spot Delivery. For information, visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2016, all rights reserved. Single publication rights only, to the Association. (7/16). HC# 4823-2513-7204.
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CASHING IN ON LEADS
>>
>> Do’s and Don’ts
URGENCY TO BUY HAS NEVER BEEN GREATER.
A Google/Polk study recently found 81 percent of car buyers make a purchase within three months of beginning their online search and 51 percent buy within one month of their first clicks. Furthermore, a Cars.com survey found online shoppers are three times more likely to contact a dealership by phone than they are to reach out via email or chat. What does that mean for you? It shows you need to be on your toes for each and every phone call that comes into your dealership. Here are some simple do’s and don’ts that will help you capitalize on Internet leads that find their way to your phone lines. DO’S • Have a process. Without a process, you’re just guessing. Make sure you answer the phone consistently, ask for names, provide your name and treat sales calls as the golden opportunities they are. A Marchex Institute study showed 53 percent of answered calls were from shoppers with a clear intent to buy. • Set an appointment. Don’t put the phone on the hook without putting
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something on the books. If you haven’t set an appointment for a customer to come look around the lot or test drive a car they saw online, you wasted your time and your customer’s. They called because something about your dealership caught their eye. Find out what it is and get them in the door to take a closer look. • Return calls promptly. Surprisingly enough, this may not be as simple as it sounds. Only about 20 percent of car shoppers begin their search looking at the brand they’re going to buy. You’re not the only dealer they’re looking at, but you could be if you’re the first to respond. DON’TS • Don’t try to sell a car over the phone. Best Mark placed test calls to dealerships around the country and found 91 percent of salespeople attempted to sell a car over the phone rather than set an appointment. Nothing sells a car better than seeing it in person. A sale over the phone is rarely effective. • Don’t wing it. Best Mark’s survey also uncovered the staggering fact that 95 percent of salespeople don’t have a defined road to an appointment. Like we said about creating a process, guessing at what will get your customers off the phone and in their next vehicle isn’t the most practical way to approach a lead. • Don’t wait for an email. Online shoppers are often searching on a cell phone or mobile device. They have easy access to a call button, plus we’ve already established they’re three times more likely
A Google/Polk study recently
>>
ACCELERATE / BY GWC WARRANTY
found 81 percent of car buyers make a purchase within three months of beginning their online search and 51 percent buy within one month of their first clicks.
to place a phone call than type up an email. If you think all your leads will land in your inbox, you could be sadly mistaken.
SEPTEMBER 2016 / CAR LINES 15
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
16 CAR LINES / SEPTEMBER/OCTOBER 2016
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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
$600 Includes
$300 Includes
WE WANT TO BE A SPONSOR FOR THE IIADA 29TH 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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SEPTEMBER 2016 / CAR LINES 17
LEGISLATIVE NEWS /
OHIO VIN VERIFICATIONS
>> Law Changes EFFECTIVE JULY 1, the State of Ohio now requires VIN Verifications to be completed on their form BMV 3787. The form must be signed by a law enforcement agency or active duty military personnel.
18 CAR LINES / SEPTEMBER/OCTOBER 2016
Effective July 1
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LEGISLATIVE MATTERS /
INDIANA LEGISLATIVE UPDATE >> From Indiana Secretary of State
– Auto Dealer Services Division
TITLE DELIVERY Dealers now have up to 31 days after date of sale to deliver a title to a customer if the title cannot be provided at the time of the sale. To accommodate this extension, interim license plates issued to customers after June 30, 2016, will be valid for 45 days. The deadline for a consumer to apply for a title has also been extended to 45 days.
VIN INSPECTIONS Dealer employees will no longer need to be approved or designated by the Secretary of State’s office to complete a VIN inspection. The restriction that an inspection can only be completed by a dealer who has been in business for five years and sold at least 150 vehicles in the previous calendar year is also being removed. www.iiada.com
A dealer will now be able to issue
>>
AFTER RECEIVING FEEDBACK
from consumers, auto dealers and our industry partners, the Secretary of State’s office pursued a robust agenda during the 2016 legislative session. This resulted in several changes to Indiana law. To ensure you are up to date on the new laws, here is a brief summary of the changes that went into effect on July 1.
interim license plate when the dealer allows a purchaser to take delivery of the motor vehicle before the sale of the motor vehicle is fully funded.
EXPIRATION DATES Dealer plates and dealer licenses issued to a dealer whose business name begins with a non-alpha character (i.e., a number or symbol) will expire on November 1 of each year. Fees for the transition license year will not be prorated.
SPOT DELIVERY A dealer will now be able to issue an interim license plate when the dealer allows a purchaser to take delivery of the motor vehicle before the sale of the motor vehicle is fully funded. This amendment was intended to address “spot delivery” situations. A dealer can still only issue one interim plate per sale.
COURTESY DELIVERY New motor vehicle dealers can now issue interim license plates for use on vehicles being delivered under a written courtesy agreement. The agreement must be between the dealer and another new dealer or manufacturer with whom the dealer has a franchise agreement.
UNFAIR PRACTICES In an effort to clarify how the Secretary of State’s office handles unfair practice complaints, the process has been put into statute, but has not been changed. If a dealer files a complaint with the office, the Secretary of State may investigate. If the office determines the manufacturer or distributor committed a violation, the office is authorized to take action against the manufacturer or distributor. Declaratory judgment procedures related to franchise terminations were also clarified in statute. The statutes setting out the administrative procedures related to relocation protests were not changed. Please feel free to contact our office with any clarifying questions. The Dealer Services Division can be reached at (317) 234-7190 or dealer@sos.in.gov. Our office has also launched a quarterly publication, Dealer Digest, in an effort to improve our communications efforts. It can be found at in.gov/sos/ dealer/. SEPTEMBER 2016 / CAR LINES 19
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
CVR-Computerized Vehicle Registration
GoldStar GPS
Ron Zimmerman 317.522.6256 Fax: 866.231.4996 rzimmerman@cvrreg.com
guided by SPIREON Cesar Yepez 949.697.3459 cyepez@spireon.com
Greg Goresen 800.488.9992 acsi@digicove.com www.acsds.com
DealerRater
GWC Warranty
AFC
DealerSocket
Affordable Computer Systems
Ryan Lewis 2950 E. Main St. Plainfield, IN 46168 317-453-1172 ryan.lewis@autofinance.com
Ally-Smart Auction
Amy Rosenfield 800.266.9455 amy@dealerrater.com Kym Tran 949.900.0300 x759 ktran@dealersocket.com id.dealersocket.com
Dealertrack
Jeff Kubicki 812-455-7967 jeffrey.kubicki@ally.com www.smartauction.biz
Diane Zewalk 115 Pohesanut Dr., Ste. 201 Groton, CT 06340 860-448-3177 Fax: 860-448-3187
Alpha Omega Group
Dealer Funding
Brad LeBlanc 513.317.9861 brad@aogllc.com
Ashton Agency Inc.
Curt Massey 770.883.3883 cwm@dealerfunding.com www.dealerfunding.com
Dealer Insurance, Bonds Kathy Alexander 407.678.5900 kalexander@ashtonagency.com
Diversified Vehicle Services
Auction Insurance/Robinson
Drive1 USA, Inc.
Adams Insurance Tom Adams/Debbie Thompson 800-239-1327 www.robinsonadams.com
Auto Services Co. Inc. Susan Williams/ Clayton Morgan 800-442-7116
AutoZone
Gerry Sutter gerald.sutter@autozone.com 440.263.3389
Black Book National Auto Research Larry Knapp lknapp@blackbookusa.com 800.554.1026
Glenna Deviers 317.862.9100 www.diversifiedvehicleservices.com Bruce Norton 1512 W. 96th Ave., Ste. C Crown Point, IN 46307 Phone: 219.670.0542 Email: Bnorton@drive1usa.com
Donn Wray, Attorney at Law Bamberger, Foreman, Oswald & Hahn, LLP Phone: 317-464-1591 dwray@bambeger.com
Envirotest Titling & Registration
Custom Facilities
317.259.0038 lcolle@cfidm.com BuildMyDealership.com
20 CAR LINES / SEPTEMBER/OCTOBER 2016
Curt Holmes cholmes@hfgnet.com
Insurance Professionals-Dealer Specialists Mike Lee 8509 Zephyr Dr. Indianapolis, IN 46217 317-432-1092 Fax: 317-300-0501 teamallenc21@comcast.net
Insurance Professionals of New Palestine 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
Envirotest Titling & Registration
Envirotest Titling & Registration
Chris Walsh 812.988.8300 www.consolidated autoservices.com
Heritage Acceptance Corporation
Greg St. Germain 336 E. Lincoln Hwy. Schererville, IN 46375 219-865-2227 gregg@lincolnwayinsurance.com
Cars.com
Consolidated Automotive Services
Rex Collins 330.758.8613 rcollins@hbkcpa.com
1512 N. Delaware Street Indianapolis, IN 46202 317.331.5648 eugene@egmlegal.com
P. O. Box 20229 Knoxville, TN 37940 865.573.3355 175 W. Jackson Blvd., 8th Fl. Chicago, IL 60604 800-298-1460 dealers.cars.com
HBK CPAs & Consultant
Kevin Lewis 1445 Brookville Way Suite G Indianapolis, IN 46239 317.322.0020 www.etrindiana.com
Kevin Lewis 1111 S. Green River Rd. Suite 100 Evansville, IN 47715 812.909.0116 www.etrindiana.com
CAR Financial
Carmie Fruits - Indiana Dealer Consultant PO Box 7900 Wilkes-Barre, PA 18773 317-374-6271 cfruits@gwcwarranty.com www.gwcwarranty.com
Jennifer Kharchaf 1171 Breuckman Dr., Ste. B Crown Point, IN 46307 219.661.8220 www.etrindiana.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
Lincolnway Insurance Services
Mighty Auto Parts of Central Indiana
David McCabe 317.685.8650 mightyautopartsindy@gmail.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
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
Teipen, Selanders, Poynter & Ayres, P.C. Certified Public Accountants Barnett Sapurstein, CPA 317.598.6700 bsapurstein@teipencpa.com
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
Nationwide Cassel LLC 773.777.7600 www.nac-loans.com
NextGear Capital
Lori Kahre 1320 City Center Drive Suite 100 Carmel, IN 46033 Phone: 317.571.3845 www.nextgearcapital.com
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SEPTEMBER 2016 / CAR LINES 21
>>
Review your list
and discover you've just experienced what it's like to know what to post on Facebook.
SOCIAL MEDIA / BY KATHI KRUSE, FOUNDER CEO KRUSE CONTROL INC.
5 WAYS TO FIGURE OUT WHAT TO POST ON FACEBOOK >> Engage Your Customers and
Reach Your Goals
ONE OF THE most common challenges for independent dealers is social media. It’s actually a challenge for most companies simply because it’s a medium not well understood. Not to oversimplify it, but Facebook and other social channels are just another medium to connect with customers. If you think about the “traditional” media such as TV, radio, print, billboards, email and phone, they are all places where customers spend time, and it’s your job (through marketing and advertising) to attract them to your store. Once a dealer has decided to venture out into Facebookland, the first question that comes up is “What do I post on Facebook to attract more customers?” The answer is a simple one but not so easy to find. Engagement is king on Facebook. It drives everything. There are two types of Facebook engagement: organic and paid. Organic simply means you did not pay to promote your post. Organic is the best kind of engagement and it’s the hardest to achieve. Solid, original, high-quality content achieves organic reach and engagement. People like, comment and share, which builds more authority with Facebook’s algorithms. It’s key to pay close attention to what’s working and what’s not. You must learn through data how best to promote (pay for) your content to improve on what’s happening organically. But what do you do when you hit a brick wall for ideas? These five ways will help you figure out what to post on Facebook to engage customers and reach your goals. 1. It all begins with your why. If you’ve done the work to determine your true why – why you’re participating in this race, and why your customers choose you over your competitor – the search for what to post on Facebook gets so much easier. Simon Sinek said, “People don’t buy what 22 CAR LINES / SEPTEMBER/OCTOBER 2016
you do, they buy why you do it. The goal is not to do business with people who need what you have. The goal is to do business with people who believe what you believe.” Without inspiration, motivation and passion to craft meaningful content, your Facebook page falls flat. Pro tip: If you’re new to determining your why, take a look at your online reviews. Look and listen for commonalities from what your customers are saying – that will help you know why your customers choose you. 2. Determine what your target customers want to know. Building relationships with buyers is how business gets done (with or without Facebook, right?). Knowing your customers’ interests and challenges helps you create content for your page that matters to them. Whether you realize it or not, there’s a story happening in the mind of your customer. They are the hero of their story, and when you actively participate in that narrative in a meaningful way (which Facebook is ideal for), you position your business within your customer’s story... and have a great shot at the sale! Pro tip: Begin to notice ideal customer experiences within your store and find a way to document them. 3. Identify and develop your resources. Part of your plan for what to post on Facebook is sitting down and assessing just what it is you have available. Failing to identify and develop your resources makes it even harder to know what to post on Facebook. Answer these questions: • Who will produce our content? • Who’s in charge of our content? • Who will maintain our content? (Content is a business asset!) • Examine and describe what forms of content are most comfortable right now (written, images, audio, video). • What types of content do you want to focus on in the next 12 months? • What do you need to do to get there? 4. Encourage employee participation. Most dealers agree they need to A) produce more content and B) connect on a deeper, personalized level with today’s hyperconnected buyers. Shifting your internal processes to engage employees (especially salespeople) in content creation helps with both of these challenges. When you showcase employees as thought leaders in the automotive industry, the company receives more recognition online.
Employees reap the benefit of their voices being broadcast, paving the way for more referrals, leads and sales. The company looks smarter because its employees look smarter. 5. Don’t make it too complicated. If you’ve been managing a Facebook page for a business, chances are one or more of these statements apply to you: •Y ou’re a current or potential customer of that store. •Y ou possess similar attributes to the customers you’re trying to attract. •Y ou have empathy for customers’ struggles and feel a connection. This means you are uniquely positioned to understand your customer (because they’re just like you). You have an idea of what would be valuable to post on Facebook and you need to give it wings. Try this: identify four to five Facebook pages you like and what it is about them you admire. Write down your answers. Review your list and discover you’ve just experienced what it’s like to know what to post on Facebook. Those pages you identified are successful for the reasons that attracted you. They are the same or similar to the reasons customers like your page. Brainstorm with others within and without your organization to come up with a game plan to create content that elicits the same interest, excitement and belonging you feel when you visit those pages on your list. Pro tip: We all get busy and it’s nice to have one place to refer to our game plan. A content calendar helps you think through what to post on Facebook, gives you the room you need to plan your strategy and allows you to schedule posts into the future to save time. Fact: figuring out what to post on Facebook is a creative process. Not everyone is cut out for it, but those who are usually realize it’s fun once you get things in place. Don’t be afraid to test different types of content with your fans. This will build your self-confidence and motivate you to keep going. The answer to “what to post on Facebook” is simple, but not easy. Do the work, test your ideas and make good use of a content calendar. You’ll soon stop struggling, find the answers and become a Facebook superstar. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc. Kruse Control coaches, trains & delivers webinars focused on integrating social media and online reputation management into dealership operations.
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