LA 08/17

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S TAT E A F F I L I AT E

MAGAZINE

L O U IS I A N A I ND E P E ND E N T AU T O M O BI L E D E A L E R S A S S O C I AT I O N AUGUST/SEP TEMBER 2017

2017 STATE QUALITY DEALER

LOUISIANA’S DON MENDOZA HONORED AMONG NATION’S TOP 3 DEALERS PAGE 04

DALLAS, TEXAS Permit No. 2079

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READ WHAT’S NEW

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INSIDE

04.........................................................Don Mendoza Honored 06........................Facebook Organic Reach is Near Extinction 08..................................................Rejoice in ROI from Training 10.............................................. Add Structure and Scalability 12..........Increasing Your Vehicle Throughput and Profitability

WHAT’S NEW NIADA.TV

Once again NIADA.TV presents the NIADA Online Convention, a website that includes every session and special event of the 2017 NIADA Convention and Expo, held in June in Las Vegas. The NIADA Online Convention, available at www.niadaconvention.tv, is free for convention attendees. Dealers and others who did not attend can access the site for a one-time yearly fee of $149. In addition, the NIADA Virtual Trade Show is available free at NIADA.TV. Viewers can see videos of convention exhibitors’ product and service offerings from the vendors’ Expo Hall booths.

ADVERTISERS INDEX

America’s AA - Baton Rouge............................................... IBC AmTrust Financial ..................................................................21 AutoZone..................................................................................8 Black Book................................................................................5 BMW Group Direct................................................................ 15 DAA Dealers Auto Auction, LLC .............................................7 DealerLane.com .....................................................................17 Lake Charles AA...................................................................... 9 LA’s 1st Choice AA................................................................IFC Manheim ................................................................................11 NextGear Capital ...................................................................12 PassTime ................................................................................13 Reynolds and Reynolds .........................................................14 STARS GPS ............................................................................10 Texas Direct Auto Auction.....................................................19 VAuto...................................................................... Back Cover

OFFICE

For information on how to become a member please contact Dwayne Tambling louisianaiada@gmail.com 877-513-6275.

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 ©2017 by NIADA Services, Inc.

STATE MAGAZINE MGR./SALES

Troy Graff • troy@niada.com EDITORS

Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT

INDUSTRY NEWS

GROUP HONORS TFS FOR COMMUNITY CONTRIBUTIONS Third Year to be Recognized

Toyota Financial Services has been named one of the most community-minded companies in the nation by Points of Light Foundation. This is the third consecutive year TFS earned a spot on the nonprofit’s Civic 50 list, the latest recognition the company has received for its initiatives and its dedication to supporting and empowering communities. The Civic 50 sets the standard for corporate community engagement nationwide, and creates a roadmap for companies seeking to

best use their time, talent, and resources to improve the quality of life in the communities where they do business. Winners are selected based on four dimensions of their national community engagement programs: integration, investment, impact, and institutionalization. TFS earned this recognition through its unwavering commitment to youth development and successful initiatives such as the Making Life Easier Financial Empowerment program, the Road to Success program (partnering with Scholarship America to fully fund college scholarships to underserved students, based on financial need and community), strong partnerships with Girl Scouts and Boys & Girls Clubs, and its Community Ambassador program, which promotes employee engagement within the community.

BOARD MEMBERS PRESIDENT Kevin Reeves Dixieland Autoplex 15600 Florida Blvd. Baton Rouge, LA 70819 kevin@dixielandautoplex.com 225-248-6519

BOARD MEMBERS Scott Ledet Ledet’s Auto Sales P O Box 1505 Gonzales, LA 70737 scottledet@ledetsautos.com 225-644-2886

VICE 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

EXECUTIVE DIRECTOR Dwayne Tambling Dwayne Tambling Auto Brokers 46001 Hwy # 22 St. Amant, LA 70774 225-675-3675

Donald Mendoza Don’s Wholesale 6902 Johnston St. Lafayette, LA 70503 mendozadonald@yahoo.com 337-210-5000

SECRETARY Rudy Martinez Ponce Imports, Inc. 6060 Florida Blvd. Baton Rouge LA 70806 rudymp@cox.net 225-927-4346 TREASURER Chuck Hill Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 chuckhill69@yahoo.com 337-433-8664

David Albritton Redline Motorcars, LLC 605 Cypress Street West Monroe, LA 71291 dcalbritton@gmail.com 318-605-3655

Jeff Hernandez Airline Automart Inc. 4520 Airline Hwy Baton Rouge LA 70805 airlineautomart@yahoo.com 225-357-1597 Scott Rabeaux Rabeaux Auto Sales 6882 Johnson St. Lafayette, LA 70593 srabeaux@yahoo.com 337-991-9100 Matt Pedersen Lake Charles Auto Auction 2435 E. Broad St. Lake Charles LA 70601 matt@lcautoauction.com 337-433-8664 Eric Stroderd (Past President) My Dealer Supply 850 Kaliste Saloom Rd. Lafayette, LA 70508 877-427-1238

Daniel Guinn Guinn Auction Company, Inc. 1635 Thibodeaux Rd. Jennings, LA 70546 daniel@guinnauctions.com 337-368-7713

Christy Haynes • christy@niada.com PRINTING Nieman Printing

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ASSOCIATION NEWS

LOUISIANA’S DON MENDOZA HONORED AMONG NATION’S TOP 3 DEALERS Second Runner-Up

Congratulations to Louisiana’s Donald Mendoza for being named NIADA’s National Quality Dealer Second Runner-Up! Don was honored among the top three dealers in the nation at the National Quality Dealer awards banquet, held during the NIADA Convention and Expo. Don’s Automotive Group, a leading Louisiana auto dealer with more than 150

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employees in four locations throughout the state, was awarded the prestigious title of State Quality Dealer of the Year by Louisiana Independent Automobile Dealers Association. With this award came the nomination for National Quality Dealer of the Year. This coveted award is one of the most prestigious awards in the industry. Nominees for the award are selected by the state association for outstanding service to his or her community and to the industry. NIADA sent all nominee dealers a very detailed packet to return to the selection committee. Included in the Mendozas’ packet were personal and company biographies as well as letters from past and present employees, pastors, several charities they support, and customers. The packet also included pictures of their facilities and some of the many awards received over the years. Don’s Wholesale, LLC began in 2004 with single car out of a rented shop with little traffic. Donald and Danielle Mendoza, owners of Don’s Automotive Group, have

worked hard to grow their business. Their dealership has grown to four retail locations, a parts/service/accessories/paint and body shop and large accounting department with 132 total employees. With deep roots in the southern Louisiana area, the Mendozas are grounded in their faith and are actively involved in the community. The dealership has been recognized by the local government as a distinguished business and given the key to the city of Lafayette. Don lives and runs his business with the philosophy: “Let us not lose heart in doing good, for in due time we will reap if we do not grow weary.” Committed to his local community, Don helps in causes such as Down’s Syndrome Association and the families involved in Maddie’s Footprints, Trinity Outdoors and more. For more information about Don’s Automotive Group, visit www.DonsWholesale.com. To learn more about the NIADA award, please head to www.niada.com and www.niada. com/national_quality_dealer_of_the_year. php.

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SOCIAL MEDIA BY KATHI KRUSE

FACEBOOK ORGANIC REACH IS NEAR EXTINCTION Now What?

Facebook organic reach refers to how many people you can reach for free on Facebook by posting to your page. Organic reach has been declining for years, and it’s a common misperception that Facebook is doing this to make more money. While it’s true they need to make money (like all businesses), the decline in organic reach can be attributed to more complex issues faced when exponential growth occurs. Why is Facebook organic reach declining? There are two main reasons. The first reason involves a simple fact: More and more content is being created and shared every day. You’ve probably felt this change yourself. There’s now far more content being created and shared than time to absorb it, something Mark Schaefer talked about in his book The Content Code. On average, there are 1,500 “stories” (posts) that could appear in a person’s newsfeed each time they visit Facebook. For people with lots of friends and liked pages, as many as 15,000 potential stories could appear any time they log on. As a result, competition in the newsfeed is increasing, and it’s becoming harder for any “story” to gain exposure in the newsfeed. In addition to the growth in content, people are also liking more pages. The number of pages liked by the typical Facebook user grew more than 50 percent last year. With each new page like, competition in the newsfeed increases even further. The second reason for declining organic reach involves how the newsfeed works. Rather than showing people all possible content, the newsfeed is designed to show each user the content most relevant to them. Of the 1,500-plus stories a person might see whenever they visit, their newsfeed displays approximately 300. To choose which stories to show, the newsfeed ranks each possible story by looking at thousands of factors relative to each person. This is what’s known as the Facebook newsfeed algorithm. The Facebook algorithm roller coaster. I was recently asked by a potential client to help create an “organic strategy” to market their business on Facebook. I thought it was an important topic to discuss since there really is no such thing as organic reach anymore. Each social media channel has its own algorithms, and since the introduction of Facebook ads, organic reach has all but evaporated.

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Social media is a pay-to-play environment now. As you may know, 10 percent of Kruse Control profits go to animal welfare. The conduit for my cause is Hanaeleh Horse Rescue, for which I volunteer my time on the board, do marketing and personally help with the horses every weekend. We have a lively Facebook page with over 65,000 fans. As a volunteer-run non-profit, we have very little budget to spend on Facebook ads so I’ve become quite creative over the last few years to grow our community of like-minded horse lovers and advocates. It’s amazing to see what you can do with entertaining, informative content when you have zero budget to work with. The page is my bellwether that signals me when Facebook shifts their algorithms. Regarding content, we are a horse rescue so we have that going for us, which many independent dealers don’t. Who doesn’t love horses, right? Our organic reach is always above average because people like horses and we provide awesome content to keep them engaged. For an independent dealer, it’s tougher to come up with awesome content, which is why I recommend starting with a written content strategy. Up until a few months ago, the Hanaeleh page was still getting about 20-30 percent organic reach. But in the last few months I’ve seen it drop to 10 percent, and in some cases even lower. Can dealers succeed on Facebook with decreased organic reach? Currently, according to optimistic data, an average Facebook post reaches around 5 percent of page fans. However, there are other stats available claiming the average organic reach of a Facebook post can be as low as 2 percent. So if your Facebook page has 1,000 fans, your new post will be seen by 20-50 people on average. Facebook ads solve the problem of declining organic reach. Here are four fantastic ways to leverage Facebook ads to reach more people and engage more customers. 1. C reate brand awareness. Reach people more likely to pay attention to your ads and increase awareness for your brand. 2. Increase engagement and/or page likes. Get more people to see and engage with your post or page. Engagement can include comments, shares, likes, event responses and offer claims. 3. Lead generation. Collect lead information from people interested in your business. 4. I ncrease conversions. Get people to take valuable actions on your website or app, such as adding payment information or making a purchase. Use the Facebook pixel or app events to track and measure conversions.

EACH SOCIAL MEDIA CHANNEL HAS ITS OWN ALGORITHMS, AND SINCE THE INTRODUCTION OF FACEBOOK ADS, ORGANIC REACH HAS ALL BUT EVAPORATED.

Important note: If you don’t have a Facebook ads strategy as part of your social media strategy, you will not get the traction for which you’re looking. Without a solid strategy and Facebook ads to promote your content, many of your entertaining and intriguing content will never see the light of day. Now that you know Facebook ads solve the problem of declining organic reach, commit to taking the next step of putting them into action. 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. www.louisianaiada.com



ACCELERATE

BY GWC WARRANTY

REJOICE IN ROI FROM TRAINING A Wise Investment Think about all the investments you make in your business. Perhaps it’s new advertising. Maybe it’s new technology or signage on your building. And, of course, there are investments in people and inventory. But how much do you know about the return on investment from each of these? Sure, you know how much profit you clear on a car. But do you know how much business you gained from expensive new advertising or a new fancy piece of technology? One activity that can drive added profits and is easily trackable from an ROI perspective is dealership training. Perhaps more so than any other investment you make in your dealership, the effects of training are measurable and profitable – especially when it comes to F&I training. First, you’ll need to start with a baseline. For instance, if your training is aimed at selling more vehicle service contracts, know the percentage of deals on which you sell a VSC today. Set a target, and seek out the tools you need to get there. Next is finding the right training approach. For dealers on the run, online,

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WITH F&I PRODUCTS, IT CAN EVEN BE EASIER THAN TRACKING HOW MANY MORE CARS YOU SELL BECAUSE OF A NEW APPROACH OR TRAINING STRATEGY. BY KNOWING YOUR PENETRATION RATES UPFRONT, INSERTING F&I TRAINING CAN MAKE FOR A CLEAR CAUSE AND EFFECT WITH MORE SERVICE CONTRACTS SOLD. interactive options often work best. When you can train on your schedule as time allows, it’s easier to make your way through coursework at your own pace. Not to mention that if your service contract provider can offer a discounted or no-charge training option, it’s a major savings compared to paying full freight for a training platform or sending staff away for conferences or seminars. Finally, you’ll need to track your results. With F&I products, it can even be easier than tracking how many more cars you sell because of a new approach or training strategy. By knowing your penetration rates upfront, inserting F&I training can make for a clear cause and effect with more service contracts sold. From there, you’ll be basking in the ROI benefits from your new F&I training strategy – bottom-line bonuses like increased back-end profits, higher profits per unit and even longterm repeat and referral business.

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BHPH MATTERS BY SCOTT BATES

ADD STRUCTURE & SCALABILITY TO YOUR BHPH DEALERSHIP Key Advantages

There are three key advantages for Buy Here-Pay Here auto dealers to establish a strong partnership with their CPA firm:

maintaining compliance on bank financing, filing an accurate and clean tax return, and operating at a profit. When these three advantages are realized, the dealership is set up properly to sustain cash flow and avoid costly penalties by state or federal agencies like the IRS. In this article, we explore common accounting mistakes made in BHPH dealerships in the areas of discounting, reporting, remitting sales tax and customer service – and how to add more structure to efficiently scale up your operation. Used cars are in high demand – and not just by people with no credit or bad credit.

WITH F&I PRODUCTS, IT CAN EVEN BE EASIER THAN TRACKING HOW MANY MORE CARS YOU SELL BECAUSE OF A NEW APPROACH OR TRAINING STRATEGY. BY KNOWING YOUR PENETRATION RATES UPFRONT, INSERTING F&I TRAINING CAN MAKE FOR A CLEAR CAUSE AND EFFECT WITH MORE SERVICE CONTRACTS SOLD. Debt-averse consumers of all stripes are shopping a wide variety of used inventory online or with their favorite dealer. Subprime lenders also view used cars as a hot commodity again, and have become competition for Buy Here-Pay Here dealers and their related finance corporations. As the industry saying goes, “Now is the best time…” for BHPH dealers to make sure their systems and records are efficient and clean to compete in this competitive landscape. There are three distinct advantages to operating a clean and efficient BHPH dealership. Dealers can more easily document and satisfy bank financing terms during an audit. They can plan ahead and file an accurate tax return and remit accurate sales tax. They can also attract and keep more customers in vehicles for a longer period of time. In our experience, problems with accounting, collections or sales tax remittance often don’t come to light until an audit or tax return preparation. That timing may lead to a costlier process to fix problems, including potential penalties by the IRS, state department of revenue or even the Consumer Financial Protection Bureau. For a few hours a month – and the right knowledge about which data to record and which reports to review – your dealership can be efficient, competitive and scalable. SCOTT BATES, CPA, is a partner in the audit practice Cornwell Jackson. Contact Scott at scott.bates@cornwelljackson.com or 972-202-8000.

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MANAGEMENT MATTERS BY DALE POLLAK

M RE 2

ND

LOCATION

INDUSTRY EXPERTISE FOCUSED ON HELPING ME EXPAND MY BUSINESS* OTTO HAHNE CITY OF CARS, INC. TROY, MI

Smart. Simple. Fast. Learn how Otto gets MORE at nextgearcapital.com

*This testimonial was received via interview, audio and/or video submission. This testimonial is based on this dealer’s individual experiences, reflecting real life experiences of a NextGear Capital dealer. NextGear Capital does not claim they are typical results that dealers generally will achieve. This dealer’s experiences may not be indicative of future performance or success of any other dealers. Some of the testimonial has been shortened so the whole message is not displayed due to length and/or relevance.

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KEYS TO INCREASE YOUR VEHICLE THROUGHPUT & PROFITABILITY Three Strategic Priorities We’ve arrived at an interesting time for retail sales of new and used vehicles. Both sides of the business face a market supply/demand imbalance, which raises risk for dealers. In new vehicles, there’s almost an inventory pile-up on some dealers’ lots. Dealership days’ supply is running well north of the norm. Some dealers don’t even have the kind of vehicles (e.g., SUVs and trucks) today’s buyers really want. Factories have pledged to adjust their production mix and pace, but I’m told they could, and should, do more. Meanwhile, retail sales appear to be driven by ever-higher incentives, which ultimately crimps the contribution each car makes to the dealer’s bottom line. In used vehicles, the big headline is the rising supply of off-lease, or near-new vehicles, in the market. We’ve begun to see the effects of this supply surge: Market Days’ Supply metrics are up across several segments in most markets. Wholesale prices are also more volatile, due largely to the supply surge. On top of all this, the incentive-driven new vehicle market is eroding the “value gap” between new and used vehicles – adding further risk to front-end margins and retail sales. Most industry observers expect buyer demand for new and used vehicles to remain relatively stable in the coming months. But a “relatively stable” degree of buyer demand is no guarantee you’ll be able to sell more vehicles and make more money than you did last year or the year before – particularly if you aren’t doing things any better or different to offset competitive threats and ongoing margin compression. In light of these conditions, I encourage dealers to be more diligent and focused on three strategic priorities. Pursue the Fast Sellers This priority helps dealers mitigate the drag on operational performance and profitability that comes as vehicles sit, and sit, in your inventory. If you make it a top priority to acquire vehicles based on favorable market days’ supply and cost to market metrics, you’ve set the stage to attract buyers, drive a faster pace of sales and achieve the gross profits you expect. Manage Your Return on Investment A sometimes underappreciated reality of today’s retail market is that age matters in both new and used vehicles. Over time, the return on your capital investment in

any vehicle diminishes, whether this depreciation comes from changed market conditions, floorplan/holding costs or some other factor. These are the variables dealers must track as they manage each vehicle’s lifecycle and strive to maximize ROI. By focusing more keenly on each vehicle’s ROI, dealers are less likely to overprice vehicles and allow any car to remain in inventory past the point it delivers a sufficient return. This emphasis on ROI naturally leads to a more efficient and more profitable pace of sales. Reduce Your Discounts For some dealers, this priority might be considered a “last frontier” for additional profitability. Here’s a common situation: Dealers have accepted the reality they must price their vehicles to the market. In sum, they are offering a reasonably fair offer on their vehicles. But, at the desk during negotiation, there’s little or no recognition of the pricing strategy. Managers and sales associates don’t explain to customers how your fair market pricing is purposeful – it’s intended to eliminate much, if not all, of the need to haggle over a purchase price. The absence of this discussion opens the door for buyers, some of whom are already satisfied with the price you posted online, to ask to pay even less. Dealers who have made discount reduction a priority typically pick up $200 to $500 in front-end gross per vehicle they were effectively giving away.Their first step: Track the discounts on every deal to identify who contributes most to the problem. Each of these strategic priorities, if executed correctly, can help dealers gain operational efficiencies that lead to competitive advantage. But it’s the trifecta, working together, that truly provides the ability to achieve your goals of selling more cars and making more money in today’s “relatively stable” market. DALE POLLAK is founder of vAuto and has published several books on his Velocity Method of Management.

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MARKET WATCH

BY AUTO REMARKETING

CAR DESCRIPTION WORDS MOST ENTICING TO KEY DEMOGRAPHICS New Research on Key Words

Particular car shoppers respond better or worse to different words when debating which car to buy, according to new research recently released by CDK Global. The company’s latest edition in its Language of Closers series provides demographicspecific intel valuable to dealers seeking out ways to most effectively describe inventory on their vehicle description pages. “Our research examined the words that would eventually lead buyers of different demographics to leave a review website and head to a dealership site,” said CDK Global lead data scientist Jason Kessler. “In our most recent analysis, we were able to

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pinpoint specific words that shed valuable light on what vehicle traits matter most to women, Generation-X consumers, recent college graduates, and parents.” CDK found a number of words that resonate with multiple demographics heavily. For example, the research revealed mentioning the word “power” attracted several groups. CDK suggested it helps illustrate the experience of driving a vehicle in a relatable way. Conversely, certain words fell flat and failed to lead prospective buyers to a dealership site. Women responded negatively to “bigger,” Generation-Xers would rather read “performance” over “design” and most parents felt that both “sound” and “tech” were low priorities compared to others. Below is a list of the top and low performing words associated with four demographics that CDK highlighted. WOMEN Top: drive, power, trip, comfortable, luxury. Low: bought, transmission, owned, bigger, cargo.

GEN-X Top: truck, power, luxury, package, performance. Low: back, seat, design, built, difference. COLLEGE GRADS Top: buy, work, truck, power, highway. Low: company, designed, inside, warranty, light. PARENTS Top: truck, leased, row, nice, purchase. Low: sounds, buying, control, tech, company. “As a leading provider of websites and digital advertising for dealers and OEMs, we are always looking for the best ways to help our customers bring the right buyers into their dealership. By making subtle changes to the language used on vehicle description pages, dealers can help customers easily identify cars that they both connect with and fit their lifestyle needs,” Kessler said. “Ultimately, these changes will prime both dealers and customers for success.”

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ONLINE MARKETING BY DALE POLLAK

A LONGER-TERM VIEW OF DIGITAL RETAILING FOR DEALERS Don’t be Short-Sighted Dealers often have an “all or nothing” view of digital retailing. That is, to them, digital retailing represents the full monty of selling a vehicle online. You’d have a “buy it now” button on every vehicle details page for every vehicle, customers would work their deals, and dealers would deliver sold cars to customers at their homes. These dealers also often dismiss this concept of digital retailing as unrealistic – as something too few customers are willing to do today. In turn, dealers make a critical mistake: They put the whole idea of digital retailing on the shelf until the time comes when they’re fully convinced more customers would actually “buy it now” for their next vehicle. This viewpoint isn’t necessarily wrong. In fact, these dealers are absolutely correct that a majority of vehicle buyers today wouldn’t want to buy their next vehicle completely online. Studies show that maybe 10 to 15 out of every 100 people might be ready for this kind of vehicle purchase experience.

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It does seem a bit ill-advised to invest in an endto-end digital retailing experience when the vast majority of buyers wouldn’t use it. But here’s the big miss for dealers who shelve digital retailing on these grounds: The “all or nothing” view is a bit short-sighted. It undercuts your ability to serve the remaining 85 percent to 90 percent of customers who are, in fact, receptive right now to taking part in at least a piece or two of a digital retailing experience. These are customers who want more convenience and a greater sense of control as they purchase a vehicle. They don’t want to spend hours in a dealership to complete a purchase transaction. They might even pay more for the privilege of completing some part of a deal – such as negotiating a payment, purchase price or trade-in value – from the comfort of their own homes. “I’m getting an additional eight to 10 deals a month because I offer the option of working out deal terms online,” said the general manager of a Southeast Volkswagen store. “We do things differently than other dealers and we’re getting better at telling the world about it.” I hear similar stories from other dealers. Even if they aren’t adding a “buy it now” option to their website, they are fostering a different type of engagement that speaks to the needs of today’s increasingly me-focused and timeaddled buyers. In other words, they’re working deals while “all or nothing” dealers aren’t getting any of the action.

The general manager for a Midwest Lexus store noted his dealership continues to see a growing number of customers take advantage of his digital retail offerings. He added every one of the customers who negotiates a payment or trade-in value online still wants to “come in and take delivery in person.” Such is the nature of digital retailing today. The vast majority of vehicle buyers aren’t really looking for a “buy it now”-based, end-to-end digital car deal. They simply want to carve out the parts of buying a car they perceive as potentially problematic and time-consuming, and complete them in a way that’s more convenient and easier for them. The takeaway here for dealers is that digital retailing shouldn’t be viewed as an “all or nothing” proposition. Rather, it’s more of a “have it your way” approach, wherein dealers provide the digital retailing tools, and customers use as much, or as little, of them as they prefer. I understand how and why some dealers have landed on an “all or nothing” view of digital retailing. I would simply encourage them to consider the business they’re probably missing as they hold out for a complete, end-to-end digital retailing solution the majority of buyers may never want, and might never arrive. DALE POLLAK is founder of vAuto and has published several books on his Velocity Method of Management.

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ASSOCIATION NEWS

NIADA CONVENTION AND EXPO 2017 71st Annual Event Draws Another Record Turnout

The voyage to success is not always smooth sailing. In fact, it is often anything but. But for the record number of independent used vehicle dealers who attended the 2017 NIADA Convention and Expo, the course to that ultimate destination of success might be just a bit less stormy. The theme of the association’s 71st annual Convention was “Chart Your Course,” and an education agenda featuring more sessions on more topics than ever before provided tools and ideas designed to allow dealers to do just that – chart a course to their unique definition of success for their dealership. Not to mention a sold-out Expo Hall filled with products and services aimed at enhancing all areas of dealership operations. “An awesome investment in my business,” Larry Schmidt of Countryside Auto and Cycle in Fond du Lac, Wis., called the Convention. “Four days of industryspecific training along with trade vendors to improve my business – that’s an investment every dealer should be making.” As it turns out, more dealers are making that investment. The 2017 Convention drew more attendees than any other NIADA Convention in history, breaking the record set by the 2016 event. In fact, overall attendance was up for the fifth consecutive year, and the number of dealers was also up from last year. And just as in 2016, nearly 20 percent of those attending the 2017 convention did so for the first time. In addition to the used vehicle industry’s strongest dealer training program, there was plenty more available for all those dealers. For example, keynote speaker Captain Richard Phillips, whose amazing story of survival in a dangerous encounter with Somali pirates in 2009 inspired the hit movie Captain Phillips, recounted his five-day ordeal and the lessons learned from it. Phillips stressed the importance of preparation and offered three takeaways that can apply in any difficult situation, telling the overflow crowd, “You are much stronger than you know. … Nothing is truly lost until you choose to give up. … And a dedicated and motivated professional team, working together, can overcome almost any obstacle or solve almost any problem.” Attendees also had a chance to celebrate, dance and loosen up at the Cigars and Martinis welcome reception in a lush, tropical setting at poolside, and at a pirate-themed After Party following the crowning of Texas’ Robert Blankenship as the 2017 National Quality Dealer of the Year. In addition to the NQD ceremony – webcast live as always on NIADA.TV – the previous night’s National Leadership Awards Banquet introduced new NIADA president David Andrews as well as honoring NIADA scholarship recipients and the winners of awards for the top performers within the association and the used vehicle industry. For 2018, the NIADA Convention and Expo will be moving away from Las Vegas for the first time since 2009 – it’s scheduled for June 18-21, 2018 at the Rosen Shingle Creek Resort in Orlando, Fla. Save the date and don’t miss your chance to be part of the used vehicle industry’s biggest event of the year!

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You Are Invited

2017 LIADA Convention

Louisiana Independent Automobile Dealers Association When: August 18-19, 2017

Where: Golden Nugget Hotel & Casino 2550 Golden Nugget Blvd. Lake Charles, LA 70601

*For more information or to register contact us at louisianaiada@gmail.com or 877-513-6275.

**Coming soon: Register at www.louisianaiada.com** 18

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LIADA AUCTION MEMBERS ADESA Shreveport

Louisiana’s 1st Choice AA

Alexandria Auto Auction

Long Beach Auto Auction

America’s Auto Auction Baton Rouge

Manheim Lafayette

7666 Greenwood Road Shreveport, LA 71119 318-938-4400 Phone 318-938-7623 Fax www.adesa.com Sale Wednesday at 9 a.m. 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.

3960 Blount Road Baton Rouge, La 70807 225 778 3737 www.auctionbroadcasting.com Sale Thursday

18310 Woodscale Road Hammond, LA 70401 985-345-3302 Phone 985-343-5735 Fax www.lafcaa.com Sale Tuesday at 9 a.m.

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

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.

Bayou State Auctions, LLC

Manheim New Orleans

America’s Auto Auction Houston

134 ½ Galbert Rd Lafayette, LA 70506

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 Eunice, La 70535 Phone: 337-457-4919 www.brownsauction.com Mid-South Auction Sale is quarterly (call for more 1657 Old Whitfield Road information). Jackson/Pearl, MS 39208 601-956-2700 Phone Copart 601-956-5603 Fax 21595 Greenwell Springs Rd. www.midsouthaa.com Greenwell Springs, LA 70739 Sale Tuesday at 9 a.m. 225-261-0102

Greater Shreveport-Bossier

Mike McTurner Dealers

1315 Grimmett Drive Shreveport, LA 71107 318-221-3362 Phone 318-221-3372 Fax www.gsbautoauction.com Sale Wednesday at 1 p.m.

136 Gregory Drive Monroe, LA 71202 318-343-8200 Phone 318-343-8259 Fax www.dealersautoauction monroe.com Sale Tuesday at 10 a.m.

Insurance Auto Auction

Oak View Auto Auction

Lake Charles Auto Auction

Z66 Auto Auction

29000 Frost Road Livingston, LA 70754 225-686-9197 Phone 225-686-8197 Fax www.iaai.com Sale Monday at 9 a.m.

2435 E Broad Street Lake Charles, LA 70601 337-433-8664 Phone 337-436-7197 Fax www.pedersenandpedersen.com Sale Wednesday at 5:30 p.m.

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*Auction Discount Coupon Books worth $4,650.00 available to LIADA members. Coupons can be redeemed at the following participation auctions.

13451 Florida Blvd Baton Rouge, LA 70815 225-272-5139 Phone 225-272-5314 Fax www.oakviewautoauction.com Sale Friday at 10 a.m. 66 N Mingo Tulsa, OK 74116 Phone: 918-794-0660 www.z66aa.com Sale Friday’s at 11:30 a.m.

OPEN ROAD August/September 2017

www.louisianaiada.com



LIADA DEALER SERVICE PROVIDERS DEALER SUPPLIES / FORMS ADVERTISING My Dealer Supply Company Auto Sweet Eric Stroderd Christopher Lentz ericstroderd@mydealersupply.com lenny@autosweet.com 311 A West University 3240 W. Henderson Rd. Lafayette, LA 70506 Columbus OH 43220 Phone: 877-427-1238 Phone: 614-448-9089 Romano Promotions LLC ATTORNEY Megan Romano McGlynn Glisson Mouton megan@romanopromo.com Attorney at Law 42062 Gardens Blvd Christopher D. Glisson Hammond, LA 70403 chris@mcglynnglisson.com Phone: 985-634-8274 340 Florida St. DETAILING Baton Rouge, LA 7080 Phone: 225-344-3555 Jose Upholstery Jose Delgado Tureau & Tureau, APLC 4776 Fairfields Ave. Ralph Tureau & Steven Tureau Baton Rouge, La 70802 steven@tureaulawfirm.com Phone:225-316-4575 12320 Hwy 44 Suite 3C Gonzales, LA 70737 M M Topshelf Detailing & Recon Phone: 225-647-8529 Lonnie McCauley Fax: 225 647-8530 lmccauley@eatel.net 4452 Jeffery Dr. AUTO PARTS Baton Rouge, LA 70816 ABC Auto Parts Phone: 225-603-4600 Larry Pyle Fax: 225-622-5994s dereck@abcauto.com FINANCES P.O. Box 3627 Longview, TX 75606 American Credit Acceptance Phone: 903-232-3060 Rachel Swain callie.kwiatt@acacceptance.com AutoZone Phone: 864-308-4380 Derlyn Odom 961 E. Main St. deryln.odom@autozone.com Spartanburg, SC 29302 6517 airline why Metairie LA, 70003 AppOne 228-990-5669 Penny Bearb 6815 Saukview Dr. Pull A Part St. Cloud, MN 56303 Toby Thompson pbearb@appone.net Baton Rouge, LA 70814 www.appone.net Phone: 225-247-9160 Phone: 877-277-6631 x1228109 BODY SHOP Automotive Finance Company Custom Colors 11221 Cedar Park Ave. Pete McKnight--Billy Rapp Baton Rouge, LA 70809 customautocolors@gmail.com Julie@teamhonda.com 11550 Cloverland Ave. www.automotivefinancecompany.com Baton Rouge, LA 70809 Phone: 225-293-6488 Phone: 225-752-5947 Center Street Finance, LP Fax: 225-752-5940 200 N. Mesquite, Suite 202 BUSINESS SERVICES Arlington, TX 76011 Davenport Business Services LLC Phone: 682-777-2002 Fax: 817-887-4976 David Davenport david@davenportbusinessservices.com Central Credit Inc. 14 Concord Place Charles E. Spedale Gulfport, MS 39507 skebdees@yahoo.com Phone: 228-547-9219 4303 Plank Rd. Baton Rouge, LA 70805 CONSULTING Phone: 225-356-4656 DealerDynamix Fax: 225-356-4656 Joseph Ventura First Consumers Financial, LLC jventura@dealer-dynamix.com Bob Chedville 6671 W Indiantown Rd. bob@fcfcarloan.com Jupiter, FL. 33458 14580 Florida Blvd. Phone: 866-970-8929 Baton Rouge, LA 70819 CREDIT CARD SERVICES Phone: 225-272-9009 Applied Merchant Nationwide Acceptance Jeff Gallo Martin Less jgallo@appliedmerchant.com mless@nac-loans.com 26775 Malibu Hills Rd. 3435 N Cicero Ave. Calabasas, CA 91301 Chicago IL 60641 Phone: 800-236-2179 Phone: 800-622-7605 DEALERSHIP MAINTENANCE

Integrity Audio Visual LLC Steve Clay steve@integrity-av.com 39089 South Angelle Court Gonzales, LA 70737 Phone: 225-235-1528 DEALER MANAGEMENT SYSTEMS

Dealer Market Exchange Holly Jonsson holly@dmx.io B5 Calle Tabonuco Guaynabo PR 968 Phone: 970-749-0851 Frazer Computing Inc. help@frazer.com P.O. Box 569 Canton, NY 13617 Phone: 1-888-963-5369 Fax: 1-888-963-3366

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Preferred Loans LLC Shana Quick preferloans@eatel.net 12241 Roddy Rd. Gonzales, LA 70737 Phone: 225-644-0304 Fax: 225-644-6862 Westlake Financial Services Rob Wilson 4751 Wilshire Blvd, Suite 100 Los Angeles, CA 90010 dealers@westlakefinancial.com www.westlakefinancial.com Phone: 888-8YES-YES

OPEN ROAD August/September 2017

FLOOR PLAN

AFC Tim Ormiston 1610 A St. Mary St. Scott, La. 70583 timothy.ormiston@autofinance.com www.Afcdealer.com Phone: 337-593-8992 AFC Michael Meyers Michael.Meyers@autofinance.com 18310 Woodscale Rd. Hammond La. 70401 Phone: 877-739-0218 Automotive Finance Corporation Cassie Lasley 106 Village St. Suite 1 Slidell, La 70458 Office: 985-288-6431 Cell: 504-235-4264 Cassie.Lasley@AutoFinance.com www.AFCDealer.com CarBucks Floor Plan Brandon Ziebarth www.usecarbucks.com 381 Halton Road Greenville, SC 29607 Phone: 225-819-6747 NextGear Capital 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

S. Brown Associates 150 River Rd. M3 Montville, NJ Phone: 973-270-2270 Safe Lily Insurance Agency Laquica Fisher lfisher@safelilyins.com 720 Burnside Ave. Gonzales, LA 70737 Phone: 225-450-2009 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

Cars.com 75 W. Jackson Blvd. Suite 800 Chicago, IL 60604 Phone: 312-601-5188 Interactive Financial Marketing Group Travis Weisleder dealerinfo@interactivefmg.com 1509 West Main St. Richmond, VA 23220 Phone: 804-225-1880 Showroom Logic 47013 N. Morrison Blvd. Hammond LA 70401

Express OMV Brooke Barnett Phone: 225-243-6925 485 Florida Blvd. Denham Springs LA 70726 LeBlanc Auto Title Company 1116 E. Cornerview St. Gonzales, LA 70737 Phone: 225-644-4591 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 VEHICLE HISTORY

Carfax Kathy Collins kathycollins@carfax.com Phone: 703-934-2664 5860 Trinity Pkwy Centreville, VA 20120 WARRANTY

AUL Corp Shelton Green shelton@sadrinc.com 1250 Main St. Suite 300 Napa, CA 94559 PAINT TOUCHUP & INTERIOR REPAIR Phone: 504-722-8123 GPS MasterMatch Centurion Automotive Eddie Krueger Position Plus GPS Consultants eddielsufan@yahoo.com Andy Seckinger Danny Delich 1104 Pine St. Suite A aseckinger@spireon.com centurionautomotiveproducts@gmail.com Monroe LA 71207 950 Market St. Atlanta, GA Phone: 318-322-2886 Shreveport, LA 71107 Phone: 470-955-9757 563-581-7693 SECURITY SYSTEMS CTR Warranty, LLC SVR Tracking Integrity Audio Visual LLC Ken Rugg Zanita Phillips Steve Clay 319 North 3rd St. Zphillips1225@gmail.com Steve@Integrity-av.com Monroe, LA 71201 950 N. Market St. 39089 South Angel Court Phone: 318-323-6385 Shreveport, LA 71107 Gonzales, LA 70737 Phone: 318-286-6297 Ferrell Dealer Services 225-235-1528 18016 Shadow Creek Ave. INSURANCE & BONDS Baton Rouge, LA 70816 RENTAL CAR Affordable Insurance Solutions Enterprise Rental Car Phone: 225-978-5111 Janis Fallaw fspruell@gmail.com 3545 N 1-10 Service Rd., Ste. 101 agentj0912@aol.com Metairie, LA 70002 GCWS, LLC 751 Hwy 51 Phone: 504-454-1717 Rock Brunet Madison, MS 39110 rockbrunet@gmail.com Phone: 601-856-9447 RENT TO OWN 101 Shumard Dr. Seadra Inc. Carmouche Insurance Inc. Lafayette LA 70508 John Garner 516 N. Burnside Ave Phone: 337-258-2998 john@seadraonline.com Gonzales, LA. GWC Warranty 10555 Lake Forrest Blvd. Phone: 225-647-8552 James W. Hester New Orleans LA 70127 Charles Carmouche jhester@gwcwarranty.com charles@carmoucheinsurance.com Phone: 504-241-0211 40 Coal St. Crossland Insurance Agency Wilkes-Barre, PA 18702 TIRES Andrew Arceri Phone: 225-771-9766 Cooper Tire and Rubber Company andrew@crosslandins.com Michael Wertz Protective Solution LLC 1101 Hwy 90 E. mtwertz@coopertire.com Rick Cole New Iberia, LA 70560 820 Rivers CreekLn. rcmarketingllc@me.com Phone: 337-367-6035 Little Elm, TX 75068 4211 Sterlington Rd. Phone: 567-525-2765 Dwight W. Andrus Insurance Monroe, LA 71203 Bonnie Dozier Phone: 877-697-2533 TITLE – NOTARY bbd@andrus.com PWI Dealertrack Registration P.O. Box 60970 Sharon Coleman and Titling Services Lafayette, LA 70598 sharon@warrantys.com Processed by Auto Title Express Phone: 337-981-7300 PO Box 278 Amy Casey Insurance & Bonds, LLC Orwigsburg, PA 17961 3445 Causeway Blvd Suite 103 John Sonnier Phone: 800-548-1121 Metairie, LA 70002 9131 Interline Ave. #10-B 7 locations throughout Louisiana! Baton Rouge, LA 70809 Go.dealertrack.com/LA Jsonnier60@gmail.com Contact Sales: 888.346.3087 Phone: 225-922-3700

www.louisianaiada.com


AMERICA’S AA

www.louisianaiada.com

August/September 2017 OPEN ROAD

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OPEN ROAD August/September 2017

www.louisianaiada.com


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