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ASSOCIATION NEWS | BY ANDY FRIEDLANDER
For the past several years, NIADA has worked hard to top itself when it comes to the annual NIADA Convention and Expo.
While it hasn’t been easy, that goal has been met. Attendance has risen for each of the past five conventions, with the past two setting alltime records in that category. The 2017 event had more attendees, more exhibitors and more education sessions on more topics than any in the convention’s 71-year history. Clearing such a high bar takes extreme measures. And so, NIADA has gone mega. That’s mega as in MegaConference – for the first time ever, a showcase for the combined resources of NIADA and the National Alliance of Buy Here-Pay Here Dealers, which was acquired by NIADA in December. The acquisition was the impetus for merging NABD’s traditional May conference into NIADA’s Convention in June, which will create what is expected to be the largest event in the used car industry, one that will provide unmatched resources for independent dealers and allow you to Rewrite the Playbook for success. That event – the NIADANABD Mega-Conference, officially known as the 72nd NIADA Convention and Expo – is coming up June 18-21. After nine years in Las Vegas, it’s moving for 2018 to a brandnew venue, the luxurious Rosen Shingle Creek Resort in Orlando, Fla. So what exactly is a MegaConference? It is some 60 education sessions, the most ever for an NIADA event, covering every aspect of independent dealership operations in five distinct educational tracks – Retail, BHPH, Legal and Regulatory, CPO and an allnew Digital Marketing track. It is sessions exploring new developments and best practices in inventory acquisition, sales, marketing and advertising, F&I, collections, technology, social
NIADA GOES MEGA NABD Joins NIADA Convention and Expo to Create the Used Car Industry’s Largest Event – the Mega-Conference
media, cybersecurity and so much more, led by the industry’s best and brightest experts – including NIADA’s own Justin Osburn. It is the top-of-the-line BHPH-specific training attendees of NABD conferences have come to expect over the years, featuring NABD founders Ken Shilson and Ingram Walters, NIADA BHPH gurus Chuck Bonanno, David Brotherton and Mark Dubois, and many more of the Buy Here-Pay Here world’s top minds. It is Wednesday afternoon’s Financing Fair, a chance for you to meet one-on-one with a variety of finance companies to discuss your specific problems – and to find solutions. It is the new Marketplace Keynote Series, offering the insights of some of the industry’s most prominent leaders, thinkers, innovators
and disruptors about where the used car market is now and where it’s headed, as well as cutting-edge ideas on how you can take advantage of those conditions. It is by far the largest Expo Hall in NIADA Convention history, featuring more than 210 exhibitors offering the latest state-of-the-art products and services to help keep you ahead of the pack in today’s ultra-competitive used vehicle market. It is the boundless enthusiasm of keynote speaker Dick Vitale, appearing courtesy of CARFAX. Known to basketball fans for his energy, wit and colorful descriptions of players and plays, Dickie V’s entertaining message of overcoming life’s challenges and obstacles is nothing short of “awesome, baby!” He’ll speak Tuesday afternoon and will meet attendees at the CARFAX
booth during the Expo Hall’s Grand Opening Reception that evening. And, of course, it is the traditions that have become an essential part of the NIADA Convention and Expo, beginning with the popular Cigars and Martinis welcome reception Monday night, featuring a tailgate party theme. We’ll honor the industry’s best at Wednesday night’s National Leadership Awards banquet – including Crystal Eagle membership awards, the CPO Dealer of the Year the NABD BHPH Hall of Fame’s latest inductee and the NIADA & Cox Automotive Community Service Award – leading up to the climactic announcement of the National Quality Dealer of the Year on Thursday night. And we’ll close the event in style with a rocking After Party featuring live music. Your chance to go mega by attending the NIADA-NABD Mega-Conference is here now. You can register online at www.niadaconvention.com. And don’t miss out on group discount opportunities for additional attendees from your dealership. Due to the immense interest in this event, NIADA is offering five options for accommodations. Because the Rosen Shingle Creek is sold out, NIADA has secured a block of rooms at four nearby hotels – with transportation to and from the Convention venue provided. Don’t miss out on this great opportunity. Register and make your travel plans now. For more information about the 2018 NIADA Convention and Expo, visit www.niadaconvention.com or www.bhphinfo.com, or call 800-682-3837.
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INSIDE
BOARD MEMBERS
03.................................................NIADA Convention Preview 06.................................57 Million Vehicles with Open Recalls 08............................................................... BHPH Benchmarks 10...........................................Get Certified or Get Left Behind 12.............................................................................Collections 13.......................... Greater Shreveport-Bossier Auto Auction 18............................................................Don’t Step on a Rake
PRESIDENT Robert Perry Doug Perry Wholesale Cars 311 N. 4th Street Monroe, LA robertperry2010@yahoo.com 318-343-8611
Jacob Warren Louisiana’s 1st Choice Auto Auction 18310 Woodscale Rd. Hammond, LA 70401 jacob@lafcaa.com 985-345-3302
WHAT’S NEW
VICE PRESIDENT Matt Pedersen Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 matt@lcautoauction.com 337-433-8664
Donald Mendoza Don’s Wholesale 6902 Johnston St. Lafayette, LA 70503 mendozadonald@yahoo.com 337-210-5000
Big and Rich Concert NIADA is pleased to announce the popular Cigars and Martinis welcome reception on the opening night of the first-ever NIADA/NABD Mega-Conference will be followed by a special concert on the terrace featuring none other than country duo Big and Rich. The concert is presented by TradeRev. Learn more about the concert, and the largest and most comprehensive education agenda in the used car industry, at www. NIADAconvention.com.
ADVERTISERS INDEX
America’s AA - Baton Rouge..............................................IBC AmTrust Financial....................................................................9 DAA Dealers Auto Auction, LLC.............................................5 LA’s 1st Choice AA...............................................................IFC Manheim................................................................................11 NextGear Capital...................................................................12 Texas Direct Auto Auction......................................................7 vAuto...................................................................... Back Cover
OFFICE
For information on how to become a member please contact Emily LeBlanc Domangue: louisianaiada@gmail. com or 225-571-8589.
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 The Open Road is published bimonthly 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 the Open Road 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 ©2018 by NIADA Services, Inc.
EXECUTIVE DIRECTOR Emily LeBlanc Domangue 8792 Highway 28 West Alexandria, LA 71303 225-571-8589 louisianaiada@gmail.com SECRETARY Daniel Guinn Guinn Auction Company, Inc. 1635 Thibodeaux Rd. Jennings, LA 70546 daniel@guinnauctions.com 337-368-7713 TREASURER Chuck Hill Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 chuck@lcautoauction.com 337-433-8664 BOARD MEMBERS Scott Ledet Ledet’s Auto Sales PO Box 1505 Gonzales, LA 70737 scottledet@ledetsautos.com 225-644-2886
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christopher Hanley • chris@niada.com PRINTING Nieman Printing
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David Albritton Redline Motorcars, LLC 605 Cypress Street West Monroe, LA 71291 dcalbritton@gmail.com 318-605-3655
Kevin Reeves Dixieland Autoplex 15600 Florida Blvd. Baton Rouge, LA 70819 kevin@dixielandautoplex.com 225-248-6519 Rudy Martinez Ponce Imports, Inc. 6060 Florida Blvd. Baton Rouge LA 70806 rudymp@cox.net 225-927-4346 Ricky Donnell Best Stop Auto Sales LLC 3591 Front St. Winnsboro LA 71295 Bsas03@yahoo.com 318-435-6565
Jeff Hernandez Airline Automart Inc. 4520 Airline Hwy Baton Rouge LA 70805 airlineautomart@yahoo.com 225-357-1597
Matt Chiasson Greater Shreveport/Bossier Auto Auction 1315 Grimmett Dr. Shreveport, LA 71107 mattautoauction@att.net 318-573-5562
Scott Rabeaux Rabeaux Auto Sales 6882 Johnson St. Lafayette, LA 70593 srabeaux@yahoo.com 337-991-9100
Walter Warren Tint City Auto 1410 W. Thomas St. Hammond LA 70401 tintcity1972@yahoo.com 985-969-0940
Eric Stroderd My Dealer Supply 850 Kaliste Saloom Rd. Lafayette, LA 70508 877-427-1238
Joel Couvillion Joel’s Auto Sales 5517 Coliseum Blvd. Alexandria, LA 71303 hotbyjoel@yahoo.com 318-442-3448
INDUSTRY WATCH | BY CARFAX
57 MILLION VEHICLES IN U.S. HAVE OPEN RECALLS New Research from Carfax Millions of vehicles being acquired, retailed and serviced by dealers this year may have potentially dangerous unfixed recalls. According to Carfax, more than 57 million recalled vehicles – more than one out of every five vehicles in the U.S. – currently are in use across the country. The company’s annual research suggests the southern parts of the country are most likely to have cars with open recalls. Southern states like Texas, Mississippi, Louisiana, New Mexico, Alabama and Arizona are some of the top states with the highest open recall percentages. California, Texas, Florida, Pennsylvania and New York have the most vehicles with open recalls. “For more than two decades, Carfax has supported the manufacturers’ efforts to get recalled cars fixed,” said Carfax president Dick Raines. “Every day we help thousands of dealers identify vehicles with open recalls. We also alert millions of drivers about
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recalls on their vehicles so they can bring them to dealers to be fixed. Safety is our number one concern.” Carfax offers free services to help notify dealers and about open recalls. Carfax Advantage dealers have their inventory continuously monitored for recalls by Carfax free of charge and get regular reports identifying which vehicles have open recalls. Making this information readily available for dealers can help boost closure rates of open recalls. In addition, registering customers with myCarfax helps keep those drivers informed about recalls. For dealers with service bays, registering customers for myCarfax also comes with free benefits that help increase customer loyalty and retention. The new data also suggests that work-life balance may be a factor for some vehicle owners not knowing about a recall or getting it fixed. Light trucks and SUVs – vehicles often used by businesses and busy families – are the ones most likely to have unfixed recalls.
Recently in Vegas, Carfax checked cars for open recalls at a local DMV. They spoke to several people whose vehicles had open recalls they knew nothing about until Carfax showed them. “Carfax told me the car had an open recall. I found out that it was the driver’s airbag,” said consumer Robert V. in Redmond, Ore. “After purchasing the car it went to the local BMW dealer where it was replaced in less than an hour. I was treated royally, chatted about the car and soon was on my way. I did appreciate knowing beforehand.” Dealers can inform online shoppers about open recalls by listing their vehicles for sale on Carfax Used Car Listings. Every vehicle listed for sale on carfax.com includes the Carfax Report dealers run for each vehicle, which includes open recall information reported to Carfax and helps consumers buy with confidence. Editor’s note: Recall statistics for your area are available upon request. For more information, visit www.carfaxonline.com or call 888-788-7715.
MARKET WATCH | BY KENNETH SHILSON
WITH 2017 IN THE REARVIEW MIRROR, WHAT’S AHEAD? Insights from 2017 BHPH Benchmarks I recently completed the BHPH benchmarks for the 20th consecutive year. My sincere thanks to NIADA and its 20 Groups, SGC CPAs, NCM 20 Groups and Subprime Analytics for the portfolio performance information they contributed. Collectively their data and the narrative make this a very informative report. In the aggregate, these statistics provide a comprehensive look at the 2017 financial and operating performance of the BHPH industry, together with important trend information. It is a reference tool for operators, capital providers and others who are interested in the subprime auto finance marketplace. Here is an overview of the 2017 results and metrics: • The deep subprime market remained highly competitive in 2017 but some of that competition declined during the second half of the year and the first quarter of 2018. • Independent operators who did not match the auto bond securitization model involving newer, more costly vehicles, longer loan terms, and higher financing amounts fared better. • Increasing sales prices and amounts financed over longer repayment terms did not appear to work successfully for those who tried it.
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• Overall profitability improved in 2017 for operators who were proactive using social media and advance tax refunds, and who implemented technology to reduce their overhead costs and increase their efficiencies. • Rising interest rates and tighter capital availability forced operators to be more cash-efficient. That trend will continue in 2018 and beyond. Subprime customers are facing higher interest rates and gas prices. • The best performing business models were both profitable and cashefficient. • Bad debt losses and default rates increased as competition has diluted the overall quality of subprime customers during the past 36 months. • A new credit loss measurement standard will require operators to
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increase their allowance for credit losses and reduce their equity in their future financial statements. Prudent operators should prepare now for this change before they are required to report it in their financial statements. • Although vehicle acquisition prices stabilized during 2017, good subprime inventory remains in short supply, challenging to find and expensive. • Salvage values for repossessed vehicles that could not be retailed stabilized in 2017, but remain more than 50 percent lower than their values a few years ago. • Texting has replaced emails as the best way to connect with and collect from subprime customers. They all depend on their smartphones. At the NIADA/NABD Convention and Expo in Orlando, Fla., June 18- 21, I will take a deeper dive into these
benchmarks and discuss more about what worked and what didn’t, what’s ahead and what we have learned during the past 36 months. I will also discuss which business models are the most successful today. Copies of the benchmark report will be available at the conference and in the June issue of BHPH Dealer, a supplement of Used Car Dealer magazine. The retail side of the subprime used vehicle business is declining while BHPH offers some great new profit opportunities for those with the capital and right infrastructure. If you want to make 2018 better, come to Orlando and learn how to Rewrite your Playbook and become more successful in the subprime auto finance business. Good luck and see you in Orlando! Kenneth Shilson, CPA, (ken@kenshilson.com) is president of Subprime Analytics. Subprime Analytics uses data mining to perform computerized portfolio analysis for operators and capital providers. For further information call 832-767-4759.
ACCELERATE
| BY GWC WARRANTY
GET CERTIFIED OR GET LEFT BEHIND
Having a Certifed Program is No Longer an Option
Every customer who hears “Certified Pre-Owned vehicles” instantly equates that with a more confident purchasing decision. But the power behind Certified programs isn’t limited to major manufacturers. With the right program and process in place, dealerships of any kind can cash in on the cachet behind the Certified name. These days, having a Certified program is no longer an option. Without one, your dealership runs the risk of being left in the dust. With independent dealers joining in on the Certified trend, it’s now more about how you execute your Certified program than just having one and hoping it sets you apart from competitors. Even the Playing Field If you don’t have a Certified program today, you run the risk of falling behind the industry. Independent dealers now have access to Certified programs, meaning more dealers than ever before are jumping on the bandwagon. If you look around at competition and see Certified programs popping up, it’s time to get on board before you get lapped by the field.
Marketing Power The term Certified provides a powerful lead generation tool for you. Customers see value in Certified vehicles and will seek them out when browsing inventory. By marketing your inventory as Certified, you’re providing an instant feeling of confidence to your customers who are looking for a car they can rely on. Upsell Opportunities The dealers who have the most success with Certified are the ones who rarely sell it. What this means is that strong Certified programs at independent dealerships often lead to upsell opportunities to richer coverage levels and longer terms. Certified is a basic level of coverage for your customers that should give them confidence in the vehicle, but highlighting what that coverage doesn’t cover can help customers see value in higher coverage levels, which will ultimately increase your revenue opportunities on the back end. Hone Your Skills If you’ve had trouble instituting a consistent F&I process in the past, Certified programs can help you work on upsell tactics while still having a baseline level of coverage to protect your customers. Over time as you develop your F&I process, you’ll see more upsell opportunities converted into actual back end revenue.
Renewal Opportunities Most Certified programs provide shorterterm coverage to protect your customers in the months right after the purchase. Making note of when these contracts are set to expire will give you the opportunity to engage with your customer after the sale. In checking up on your customers, you can remind them their coverage is about to run out. Even if you don’t land a VSC renewal, you might just learn about friends or family members who are shopping for cars. The extra customer touchpoint could prove profitable in the long haul.
AUCTION NEWS |
LFCAA DOUBLES DOWN ON CAR CERTIFICATIONS
Jacob Warren Earns Important Designation
Louisiana’s 1st Choice Auto Auction is proud to announce Jacob Warren, general sales and marketing manager, is now CAR certified by IARA. International Automotive Remarketers Alliance (IARA) has created an education program over the last 10 years to expand overall knowledge of the remarketing industry. A Certified Automotive Remarketer (CAR) understands all aspects of automotive remarketing including remarketing channels, pre-sale activities, actual sale activities, post-sale activities, legal/ethics, and terminology. Warren said, “The certification is valuable in our industry. Having the certification added to the Auction Academy curriculum was a huge opportunity I am thankful to have had.” Jacob Warren will be graduating from Auction Academy in March 2019. He has been a member of the 1st Choice team for 14
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years, working in almost every department with roles including vehicle registration specialist, sales representative, marketing manager, business operations manager, and now general sales and marketing manager.
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The auction congratulates Jacob on earning this mark of distinction as a Certified Automotive Remarketer. Managing partner John Poteet is proud to have two employees CAR certified. Poteet said, “Congratulations to Jacob on becoming CAR certified by IARA. Jacob joins Mike McCollum, our fleet lease manager, as CAR certified, making us one of the few auctions with more than one employee with this important designation. CAR certification shows our commitment to employee education and the highest level of service to our valued institutional accounts.” Independently owned and operated, Louisiana’s 1st Choice Auto Auction is located in Hammond, Louisiana. The team of auction professionals serves the entire Gulf Coast Region and a national online buying base. Dealers gather every Tuesday at 8:45am in six lanes and online to bid on a consignment of over 700 vehicles. Auction inventory is included on Edge Pipeline, where customers may view detailed condition reports, market report information and participate in online sales.
F&I MATTERS | BY SCOTT BATES, CPA
COLLECTIONS The Key is Relationship Collections best practices are designed to increase the number of payments received on every contract – increasing cash flow and potentially increasing sales from referrals. A shut-off box on a car is no substitute for good collections practices. You are also discouraged from making field calls, as it can violate CFPB rules – not to mention be potentially dangerous. The key is to make your payment a top priority in the mind of the customer – specifically because customers trust and perceive your dealership is willing to work with them to find a solution. Nothing can really motivate a customer to pay for a car except a strong relationship. This approach is harder than billing and repossession. It takes a different mindset among your collections and service staff, but it can be efficient if you establish a positive rapport and understanding from the beginning of the transaction. Your process and paperwork should be consistent and clean every time, no matter who is closing the deal. Emphasize that you expect payments on or before the agreed due dates. If you can, set up an electronic funds transfer with customers around their payroll time. You can’t require it, but you can make it attractive by offering a discount. Outline the process of what will happen if they can’t pay on time. If the car malfunctions or if they need to refigure the payment terms due to a change in circumstances, talk through those situations, too. Establish a clear process for communicating, which in some cases may be opt-in text messaging. You can now use SMS for automatic payment reminders, service reminders and late payment notices. In any and every case, keep the lines of communication open. Follow up with a check-in call. Congratulate customers on their purchase 12
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and ask them if they have any questions. Make it clear your team is there to help so their first contact with you is positive, rather than a delinquency call. Provide clear contact information for customers to reach their “account rep.” A strong closing process with full disclosure followed by a welcome checkin call reduces the need to chase down payments, and also increases the number of payments made. This won’t happen on every transaction. There will still be cases of repossession, but dealers can reduce the chances. A full inventory of cars is not what you want. Deal with service issues quickly. One of the biggest reasons customers stop making payments is that the car has a problem. Make it clear during the closing process that any issues with the car will be handled, whether through a limited warranty or service call. Depending on the issue and timing, work out how the customer will participate in paying for the service. Calculate the cost of the repair against the benefit of more monthly payments, and often the benefit is on the side of more monthly payments and a happy customer willing to refer your dealership to friends and family. Keep in mind that your inventory is not your biggest asset – your portfolio is the golden egg. Accounts need to be worked every day by collections. Don’t just wait for the phone to ring. A 30-day past due notice equals four to six missed payments. If you have 100 accounts, a good rule of thumb is to have four collections staff and one part-timer in the wings to pitch in when necessary. Scott Bates, CPA, is a partner in the audit practice and leads Cornwell Jackson’s Business Services Department, which includes a dedicated team for outsourced accounting, bookkeeping and payroll services. Contact Scott at scott. bates@cornwelljackson.com or 972-202-8000.
AUCTION SPOTLIGHT
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THE GREATER SHREVEPORT-BOSSIER AUTO AUCTION Longtime Supporter of LIADA This month’s spotlight auction is the Greater Shreveport-Bossier Auto Auction. Long-time member Steve Chiasson first opened in 2001 at 1315 Grimmett Drive in Shreveport. As a result of the family-like atmosphere, excellent dealer relationships and commitment to customer service, this independently owned auction has recently moved to a larger facility, conveniently located at 8000 Greenwood Road in Shreveport. On March 28, 2018, the Greater ShreveportBossier Auto Auction graciously hosted a membership drive promoting the LIADA at their weekly sale. Assistant general manager Matthew Chiasson spearheaded this successful
event. In addition to the new members that were signed, GSBAA made a generous donation to the LIADA based on the number of vehicles sold. The Greater Shreveport-Bossier Auto Auction has been a long-time supporter of the Louisiana Independent Automobile Dealers Association and we greatly appreciate their generosity and commitment. We encourage all of our members to visit GSBAA at their new location on Wednesdays at 1:00 p.m. For more information, please check out their website: www.GSBAutoAuction.com.
ACCELERATE | BY GWC WARRANTY
THE END OF THE 1-STAR REVIEW
Maintaining Your Online Reputation
Online reputation is more important today than ever before. If you take your eye off the ball for even a second, a small number of customers can have a severe impact on your online image. That’s why you need to do whatever it takes to stop 1-star reviews before they pop up online. When it comes to online reputation, sometimes the best offense is a good defense. By putting in place the right steps and procedures, you can simultaneously prevent bad reviews while also potentially turning these negative experiences into positive ones.
YOU CAN’T HELP CUSTOMERS YOU NEVER HEAR FROM
A bad review could catch you by surprise. You sold a car and it was uneventful, but before you know it that customer is leaving a stain on your online reputation. It’s frustrating for you since the customer never voiced their issues to you, but there is something you can do. Give all your customers a chance to come to you first with their complaints or issues. This requires regular follow up on your
part. Whether it’s by phone, email or oldfashioned direct mail, checking in with your customers will help you get a chance to proactively address any issues that come up.
ARTFULLY CRAFT YOUR ASK
If you’re plugged into your online reputation, you’re likely doing something to ask your customers for reviews. Sometimes it’s in person and other times it could be with email or text messages. Whatever you do, having an electronic method for customers to leave negative feedback will help you capture these issues before they turn into online complaints. If you ask electronically, start with a question about whether the customer had a positive experience. If they had a poor experience, direct the customer somewhere he or she can vent to you. If it’s positive, continue them on the way to leaving a positive review.
RESPOND TO THE NEGATIVE
Sometimes, poor reviews will slip through the cracks. When they do, respond quickly
and personally, apologizing for the poor experience and providing a way for the customer to contact you. If you can identify the customer based on the review, you can also reach out directly to the customer. It’s a delicate situation, but try to identify what went wrong for the customer and see if there is anything you can do to resolve the situation. You may even be surprised by a customer revising their negative review into a positive review once you’ve shown how much you care about their experience.
OUTRUN THE BAD REVIEWS
Above all else, the best way to limit the impact of 1-star reviews is to outweigh these stories with the positive ones that tell the true story of your business. It’s no secret that upset customers are more likely to leave a review than happy ones, so it’s incredibly important to ask as many customers as possible for reviews. By building a consistent process for asking for reviews, you’ll land enough positive to improve or maintain your positive online image.
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WASHINGTON UPDATE | BY SHAUN PETERSEN
Latest Government Issues and Activity 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. LEGISLATIVE The U.S. House of Representatives voted to repeal the Bureau of Consumer Financial Protection’s controversial 2013 guidance on indirect auto lending, paving the way for dealers to again set loan terms and rates for third-party financing without being subject to CFPB enforcement. The House approved S.J. Res. 57, which would overturn the much-criticized guidance document under the authority of the Congressional Review Act, on May 8 by a bipartisan 234-175 majority. The Senate had already passed the joint resolution by a 51-47 margin April 18. “The CFPB’s 2013 indirect auto lending guidance was a harmful, ill-advised solution that purported to solve the problem of a disparate impact theory that only existed in some mythical CFPB fairyland,” NIADA CEO Steve Jordan said. “The reality is automobile dealers had a rich history of using indirect lenders to provide financial transactions in the best interests of the driving public 14
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long before the CFPB decided to interfere. “NIADA is thrilled Congress has removed the CFPB from that equation.” The guidance, issued in March 2013, claimed dealer discretion on interest rates creates a “significant risk” of unintentional disparate impact discrimination and spelled out the bureau’s intention to pursue enforcement actions on that basis. Critics have pointed out the CFPB’s theory was based on shaky methodology for determining disparate impact and the guidance was put in place without comments from stakeholders, public hearings or studies of its impact on the cost of credit to consumers. The resolution followed a December opinion from the Government Accountability Office that defined the guidance document as a CFPB rule for the purposes of the CRA, which meant it could be struck down by a simple majority vote of both houses of Congress. The White House has issued www.louisianaiada.com
a statement in support of the resolution and President Trump is expected to sign it into law. Rep. Murphy to speak at NIADA Convention: Rep. Stephanie Murphy (D-Fla.) will be the featured speaker for the Welcome Luncheon on Tuesday at the 2018 NIADA Convention and Expo, coming up June 18-21 in Orlando, Fla. Murphy, who in 2016 became the first Vietnamese-American woman elected to Congress, represents Florida’s 7th District, which includes downtown Orlando. In only her first term, she has already built a strong record of supporting small business. The former businesswoman serves on the House Small Business Committee – she is the ranking Democrat of the Subcommittee on Contracting and Workforce – and has been the lead Democratic co-sponsor on several bipartisan bills aimed at promoting the interests of small businesses. Murphy was one of 11 Democrats who in May voted in favor of repealing the CFPB’s controversial 2013 indirect auto lending guidance. She is also a member of the Blue Dog Coalition, a group of House Democrats who according to their mission statement are “dedicated to pursuing fiscally responsible policies, ensuring a strong national defense for our country and transcending party lines to get things done for the American people.” She is co-chair of that caucus’ Fiscal Responsibility Task Force. Murphy says she is “working to reduce the regulatory burdens on small businesses, increase their access to capital and help strengthen our region’s economy by creating more well-paying jobs.” REGULATORY The Federal Trade Commission sent letters to six companies that market and sell automobiles, cellular devices and video gaming systems warning them about their statements telling consumers they must
use specified parts or service providers to keep from voiding their warranties. The FTC told the companies unless they provide the parts or services for free or receive a waiver from the FTC, those statements could violate the Magnuson-Moss Warranty Act and could be considered a deceptive practice in violation of the FTC Act. The commission asked the companies to review their promotional and warranty materials to make sure they do not state or imply that a warranty applies only if the consumer uses specific parts or services – and to make necessary changes if they do. The FTC said it would review the companies’ websites again after 30 days and proceed with enforcement action if necessary. FTC attorney Courtney Estep will discuss this and other warranty compliance issues in her session “Legal Considerations in Offering Warranties and Service Contracts” at this month’s NIADA Convention and Expo. GRASS ROOTS Independent dealers in Illinois won an important victory in May when legislation that would have placed undue regulatory burdens on the use of GPS and starterinterrupt devices failed to get out of committee in the state Senate. State Sen. Steve Stadelman, who introduced the bill, made several attempts to push it through, but was unsuccessful thanks in large part to a determined effort by NIADA, the Illinois IADA and industry partners to educate the state’s legislators and Gov. Bruce Rauner about the devices and their use in the BHPH industry. Stadelman’s decision to not pursue a vote on the bill is the latest chapter of a threeyear battle over the proposal, which has been backed by state attorney general Lisa Madigan. While Madigan is not seeking re-election this year, NIADA and IIADA will continue to monitor this situation for further developments. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.
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LIADA AUCTION MEMBERS ADESA Shreveport
7666 Greenwood Road Shreveport, LA 71119 318-938-4400 Phone 318-938-7623 Fax www.adesa.com Sale Wednesday at 9 a.m.
Alexandria Auto Auction 515 N 3rd Street Alexandria, LA 71301 318-484-9672 Phone 318-484-9699 Fax www.alexandriaauction.com Sale Tuesday at 5:30 p.m.
America’s Auto Auction Baton Rouge
3960 Blount Road Baton Rouge, La 70807 225 778 3737 www.auctionbroadcasting.com Sale Thursday
Louisiana’s 1st Choice AA 18310 Woodscale Road Hammond, LA 70401 985-345-3302 Phone 985-343-5735 Fax www.lafcaa.com Sale Tuesday at 8:45 a.m.
Long Beach Auto Auction 8494 County Farm Road Long Beach, MS 39560 228-452-2030 Phone 228-452-9588 Fax www.lbautoauction.com Sale Wednesday at 1:30 p.m. 1611 St. Mary Street Scott, LA 70583 1-337-237-5620 Phone Sale Thursday at 10:00 a.m.
Manheim Mississippi
1826 Almeda Genoa Rd. Houston, TX 77047 281-819-3600
Bayou State Auctions, LLC
Manheim New Orleans
134 ½ Galbert Rd Lafayette, LA 70506 337-289-9191 Sale Tuesdays at 5:30pm
Brown’s Auction Co.
61077 St. Tammany Slidell, LA 70460 985-643-2061 Phone 985-643-2122 Fax www.manheim.com Sale Wednesday at 9 a.m.
6249 Hwy 190 Mid-South Auction Eunice, La 70535 1657 Old Whitfield Road Phone: 337-457-4919 Jackson/Pearl, MS 39208 www.brownsauction.com 601-956-2700 Phone Sale is quarterly (call for more 601-956-5603 Fax information). www.midsouthaa.com Sale Tuesday at 9 a.m. Greater Shreveport-Bossier 8000 Highway 80 Mike McTurner Dealers Shreveport, LA 71119 136 Gregory Drive P O Box 29590 Monroe, LA 71202 Shreveport, LA 71149 318-343-8200 Phone Phone: 318-221-3362 318-343-8259 Fax www.gsbautoauction.com www.dealersautoauction Sale Wednesday at 1:00 p.m. monroe.com Sale Tuesday at 10 a.m. Insurance Auto Auction 29000 Frost Road Oak View Auto Auction Livingston, LA 70754 13451 Florida Blvd 225-686-9197 Phone Baton Rouge, LA 70815 225-686-8197 Fax 225-272-5139 Phone www.iaai.com 225-272-5314 Fax Sale Monday at 9 a.m. www.oakviewautoauction.com Sale Friday at 10 a.m. Lake Charles Auto Auction 2435 E Broad Street Z66 Auto Auction Lake Charles, LA 70601 66 N Mingo 337-433-8664 Phone Tulsa, OK 74116 337-436-7197 Fax Phone: 918-794-0660 www.pedersenandpedersen.com www.z66aa.com Sale Wednesday at 5:30 p.m. Sale Friday at 11:30 a.m.
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Membership ($400.00 yearly dues.)
Manheim Lafayette
7510 U S Highway 49 Hattiesburg, MS 39402 601-268-7550 Phone 601-579-7202 Fax www.manheim.com Sale Thursday at 9 a.m.
America’s Auto Auction Houston
privileges. ($400.00 yearly dues.)
www.louisianaiada.com
*Auction Discount Coupon Books worth $4,050.00 available to LIADA members. Coupons can be redeemed at the following participation auctions.
LIADA DEALER SERVICE PROVIDERS DETAILING ADVERTISING Jose Upholstery Auto Sweet Jose Delgado Christopher Lentz 4776 Fairfields Ave. lenny@autosweet.com Baton Rouge, La 70802 3240 W. Henderson Rd. Phone:225-316-4575 Columbus OH 43220 Phone: 614-448-9089 M M Topshelf Detailing & Recon Lonnie McCauley ATTORNEY lmccauley@eatel.net Tureau & Tureau, APLC 4452 Jeffery Dr. Ralph Tureau & Steven Tureau Baton Rouge, LA 70816 steven@tureaulawfirm.com Phone: 225-603-4600 12320 Hwy 44 Suite 3C Fax: 225-622-5994s Gonzales, LA 70737 Phone: 225-647-8529 FINANCES Fax: 225 647-8530 First Consumers Financial, LLC Bob Chedville AUTO PARTS bob@fcfcarloan.com AutoZone 14580 Florida Blvd. Derlyn Odom Baton Rouge, LA 70819 deryln.odom@autozone.com Phone: 225-272-9009 6517 airline why Nationwide Acceptance Metairie LA, 70003 Martin Less 228-990-5669 mless@nac-loans.com Pull A Part 3435 N Cicero Ave. Toby Thompson Chicago IL 60641 Baton Rouge, LA 70814 Phone: 800-622-7605 Phone: 225-247-9160 Preferred Loans LLC BODY SHOP Shana Quick preferloans@eatel.net Custom Colors 12241 Roddy Rd. Pete McKnight--Billy Rapp Gonzales, LA 70737 customautocolors@gmail.com Phone: 225-644-0304 11550 Cloverland Ave. Fax: 225-644-6862 Baton Rouge, LA 70809 Phone: 225-752-5947 Reynolds & Reynolds/AppOne Fax: 225-752-5940 Michael Riley michaelriley@reyrey.com BUSINESS SERVICES Davenport Business Services LLC 4150 2nd St. South Suite 550 St. Cloud MN 56303 David Davenport david@davenportbusinessservices.com Phone: 877-277-6631 X 57628 14 Concord Place Westlake Financial Services Gulfport, MS 39507 Rob Wilson Phone: 228-547-9219 4751 Wilshire Blvd, Suite 100 Los Angeles, CA 90010 CREDIT CARD SERVICES dealers@westlakefinancial.com Applied Merchant www.westlakefinancial.com Jeff Gallo Phone: 888-8YES-YES jgallo@appliedmerchant.com 26775 Malibu Hills Rd. FLOOR PLAN Calabasas, CA 91301 AFC Phone: 800-236-2179 Tim Ormiston 1610 A St. Mary St. DEALER MANAGEMENT SYSTEMS Scott, La. 70583 Dealer Market Exchange timothy.ormiston@autofinance.com Holly Jonsson www.Afcdealer.com holly@dmx.io Phone: 337-593-8992 B5 Calle Tabonuco AFC Guaynabo PR 968 Michael Meyers Phone: 970-749-0851 Michael.Meyers@autofinance.com Frazer Computing Inc. 18310 Woodscale Rd. help@frazer.com Hammond La. 70401 P.O. Box 569 Phone: 877-739-0218 Canton, NY 13617 Phone: 1-888-963-5369 Automotive Finance Corporation Fax: 1-888-963-3366 Cassie Lasley 106 Village St. Suite 1 DEALER SUPPLIES / FORMS Slidell, La 70458 My Dealer Supply Company Office: 985-288-6431 Eric Stroderd Cell: 504-235-4264 ericstroderd@mydealersupply.com Cassie.Lasley@AutoFinance.com 311 A West University www.AFCDealer.com Lafayette, LA 70506 CarBucks Floor Plan Phone: 877-427-1238 Brandon Ziebarth Romano Promotions LLC www.usecarbucks.com Megan Romano 381 Halton Road megan@romanopromo.com Greenville, SC 29607 42062 Gardens Blvd Phone: 225-819-6747 Hammond, LA 70403 NextGear Capital Phone: 985-634-8274 Stuart LaBauve slabauve@nextgearcapital.com Phone: 225-620-1660 Fax: 866-550-8694
GLASS/WINDSHIELD
Babin’s Auto Glass Inc. Brent Babin babinsautoglass@eatel.net 13283 Airline Hwy. Gonzales, La 70737 Phone: 225-647-1369 GPS
Position Plus GPS Andy Seckinger aseckinger@spireon.com 950 Market St. Shreveport, LA 71107 563-581-7693 INSURANCE & BONDS
Affordable Insurance Solutions Janis Fallaw agentj0912@aol.com 751 Hwy 51 Madison, MS 39110 Phone: 601-856-9447 Carmouche Insurance Inc. 516 N. Burnside Ave Gonzales, LA. Phone: 225-647-8552 Charles Carmouche charles@carmoucheinsurance.com Crossland Insurance Agency Andrew Arceri andrew@crosslandins.com 1101 Hwy 90 E. New Iberia, LA 70560 Phone: 337-367-6035 Dwight W. Andrus Insurance Bonnie Dozier bbd@andrus.com P.O. Box 60970 Lafayette, LA 70598 Phone: 337-981-7300 Insurance & Bonds, LLC John Sonnier 9131 Interline Ave. #10-B Baton Rouge, LA 70809 Jsonnier60@gmail.com Phone: 225-922-3700 S. Brown Associates 150 River Rd. M3 Montville, NJ Phone: 973-270-2270 US Agencies Low Cost Insurance Sharon Miller Sharon.Miller@confiegroup.com 440 Third St. Baton Rouge, LA 70802 Phone: 225-615-0957 Fax: 225-987-5144 US Agencies Low Cost Insurance Kenneth Champagne kchampagne@usagencies.com 440 Third St. Baton Rouge, LA 70802 Phone: 225-408-8492 Fax: 225-987-5144 MARKETING
Interactive Financial Marketing Group Travis Weisleder dealerinfo@interactivefmg.com 1509 West Main St. Richmond, VA 23220 Phone: 804-225-1880
PAINT TOUCHUP & INTERIOR REPAIR
VEHICLE HISTORY
MasterMatch Eddie Krueger eddielsufan@yahoo.com 1104 Pine St. Suite A Monroe LA 71207 Phone: 318-322-2886
Carfax Kathy Collins kathycollins@carfax.com Phone: 703-934-2664 5860 Trinity Pkwy Centreville, VA 20120
SECURITY SYSTEMS
WARRANTY
Integrity Audio Visual LLC Steve Clay Steve@Integrity-av.com 39089 South Angel Court Gonzales, LA 70737 225-235-1528
AUL Corp Shelton Green Shelton@sadrinc.com 704 Hickory Ave. New Orleans, LA 70183 Phone: 504-722-8123 CTR Warranty, LLC RENTAL CAR Ken Rugg Enterprise Rental Car 319 North 3rd St. 3545 N 1-10 Service Rd., Ste. 101 Monroe, LA 71201 Metairie, LA 70002 Phone: 318-323-6385 Phone: 504-454-1717 Ferrell Dealer Services RENT TO OWN 18016 Shadow Creek Ave. Seadra Inc. Baton Rouge, LA 70816 John Garner Phone: 225-978-5111 john@seadraonline.com fspruell@gmail.com 10555 Lake Forrest Blvd. GCWS, LLC New Orleans LA 70127 Rock Brunet Phone: 504-241-0211 rockbrunet@gmail.com 101 Shumard Dr. TIRES Lafayette LA 70508 Cooper Tire and Rubber Company Phone: 337-258-2998 Michael Wertz mtwertz@coopertire.com GWC Warranty 820 Rivers CreekLn. James W. Hester Little Elm, TX 75068 jhester@gwcwarranty.com Phone: 567-525-2765 40 Coal St. Wilkes-Barre, PA 18702 TITLE – NOTARY Phone: 225-771-9766 Dealertrack Registration Protective Solution LLC and Titling Services Rick Cole Processed by Auto Title Express rcmarketingllc@me.com Amy Casey 4211 Sterlington Rd. 3445 Causeway Blvd Suite 103 Monroe, LA 71203 Metairie, LA 70002 Phone: 877-697-2533 7 locations throughout Louisiana! PWI Go.dealertrack.com/LA Sharon Coleman Contact Sales: 888.346.3087 sharon@warrantys.com Express OMV PO Box 278 Brooke Barnett Orwigsburg, PA 17961 Phone: 225-243-6925 Phone: 800-548-1121 485 Florida Blvd. Denham Springs LA 70726 Southern Auto Dealer Resources 704 Hickory Ave. LeBlanc Auto Title Company Harahan, LA 70123 1116 E. Cornerview St. Shelton Green Gonzales, LA 70737 sheltongreen3@aol.com Phone: 225-644-4591 Phone: 504-466-88002 Fax: 225-644-8207 hopeleblanc@eatel.net TOWING & RECOVERY
Smart Tow Kevin Rembert 3045 Rosenwald Rd. Baton Rouge, LA 70807 kevinpremert@yahoo.com Phone: 225-356-3002 Fax: 225-356-3222 TRANSPORTATION
Masney Auto Transport Inc. Greg Hedges page@masney.com 831 Maguire Rd. Ocoee FL 34761 Phone: 407-877-8882
www.louisianaiada.com
June/July 2018
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SOCIAL MEDIA | BY KATHI KRUSE
DON’T STEP ON A RAKE Avoid Social Media Pitfalls
For many dealers, social media seems like a minefield. Add the fact it's quickly matured into a very viable place to engage customers and promote sales and you've got a terrifying place many dealers would rather ignore.
Ignoring social media in today’s world is the equivalent of opening a store without telling anyone. But all the warnings in the world are not going to motivate a dealer to take action if they still have a lot of fear. I'd like to alleviate some of that fear today. Avoiding social media pitfalls has become a big business. It's difficult to know where to turn for the best advice. For nearly 10 years now, I've been singing the “social media song” and, alas, the needle hasn't moved much, especially for auto retail. You know what? That's okay. It's perfectly fine to venture out into social media at your own pace. What I don't want you to do is venture out and step on a rake.
5 FOUNDATION ESSENTIALS FOR SOCIAL MEDIA SUCCESS
Whether you're new to social media or you've been using it for some time, these five components will help you leverage all you can from each platform. 18
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Secure Your Reputation with a Social Media Policy
At Kruse Control, we advocate implementing an upto-date policy for employee use of social media. The line between dealers and their employees on social media is steadily blurring. Organizations today need a social media policy that helps keep the store’s reputation intact while also encouraging employee participation online. A social media policy outlines how an organization and its employees should conduct themselves online. This document helps safeguard your brand’s reputation. Ideally, you'll want to consult with the following stakeholders when creating a social media policy for your store: • C-level (owners and managers). • Human Resources. • Corporate counsel. •S ocial media strategist. Because social media moves fast, this policy should be considered a living document – ongoing updates will be necessary.
Written Social Media Strategy
Social media strategy defines how a dealership will use social media to achieve its business goals, including the supporting platforms and tools it will use to do so. At a basic level, it’s a statement of intent, outlining the goals and measurable objectives for using social media, and the target outcomes you want to achieve. www.louisianaiada.com
When defining what it takes to achieve social media success, we need to talk about strategy first. I was inspired to include this component because I receive questions like these from good people, many of whom are struggling to find answers: • “Do I have to be on every social network?” • “What type of things do I say on social media?” • “ How often should I post?” • “How do I get more followers?” • “ My boss asked me to take over the Facebook page, but where do I start?” • “ Should I pay for social advertising?” • “I'm in a boring industry. Do I still need social media?” • “ Do I need social media management tools?” • “Should I outsource my social media?” I've had a run of these emails lately and, frankly, my heart aches for these good people because they're lost. It's easy to get lost these days because the social media landscape is no longer a field of flowers sparsely populated. Today, social media is a dense, crowded, noisy, smoggy urban jungle.
Do a Social Media Audit
Whether your social media marketing is in-house or outsourced, it’s often difficult to see where the gaps are between your current successes and where you need to be. Your inbox is full of tips, tools and hacks to “improve” results and it’s exhausting. The best way to remove the guesswork is with a social media audit. A social media audit is a smart step because time and resources are often wasted trying to improve things that don’t need improving, while neglecting the things that really need attention.
Build an Online Review Funnel
Word of mouth referrals have always been a go-to resource for finding trusted sellers, and online ratings sites are where most people turn today.
Online reviews are insanely influential: • 90 percent of consumers read online reviews. •8 8 percent trust online reviews as much as personal recommendations. • 86 percent will hesitate to purchase from a business that has negative reviews. • Customers are likely to spend 31 percent more with a business that has positive reviews. • 92 percent will use a local business if it has at least a 4-star rating. Benefits of building an online review funnel: 1. S ystematically drive customers to one conversion funnel that routes them to the review sites you care about. 2. Automatically ask, remind and guide happy customers through the funnel. 3. R ecover unhappy customers before they vent online. 4. A nalyze results daily for actionable insights to improve upon.
Engage with Social Customer Service
People increasingly turn to social media to engage with businesses. Social has matured as a communication channel and people have blended it into their lives. They expect dealers to do the same. While many companies now use social media regularly, very few take social customer service seriously. Currently, 92.5 percent of brands fail to meet customer expectations on social media and these failures can have big implications. Quality customer service – regardless of channel – relies on a meaningful, efficient, solution-focused exchange between dealers and their customers. The growing preference for social media as a communication channel requires your organization to re-think its customer service strategy. Good social customer service strategy keeps your store in the conversation and doesn't allow malcontents and competitors to speak for you. Kathi Kruse is an automotive social media marketing expert, blogger, consultant, author, speaker and founder of Kruse Control Inc., which coaches, trains and delivers webinars focused on integrating social media and online reputation management into dealership operations. She can be reached at kathi@krusecontrolinc.com.