MA Independent Auto Dealer by NIADA

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S TAT E A F F I L I AT E

MAGAZINE

MASSACHUSETTS/NEW ENGLAND INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION NOVEMBER/DECEMBER 2017

MIADA SALUTE TO VETERANS

DALLAS, TEXAS Permit No. 2079

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V I S I T U S AT W W W. M I A D A .C O M

MARKET WATCH

FLOOD CARS IN THE U.S. JUMP 20 PERCENT Reminder and Offer from Carfax

New research from Carfax suggests drivers may be behind the wheel of more than 325,000 previously flooded vehicles. That number is a 20 percent increase from 2016 and a stark reminder for consumers to do their due diligence when used car shopping. Vehicles reported as flood damaged by a state’s Department of Motor Vehicles, insurance companies and more have washed up in every state. These 10 states have the most:

1. Texas – 51,000 2. Louisiana – 29,000 3. Pennsylvania – 20,000 4. Florida – 19,000 5. Kentucky – 16,000 6. Illinois – 15,000 7. South Carolina – 13,000 8. Virginia – 13,000 9. North Carolina – 13,000 10. Michigan – 11,000

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LOCALIZED FLOODED VEHICLE STATISTICS ARE AVAILABLE UPON REQUEST. AN INFOGRAPHIC ALSO IS AVAILABLE FOR USE AT WWW.CARFAX.COM/PRESS/RESOURCES/FLOODED-CARS.

“I bought a car last year and the seller never told us anything about it being a flood car,” said Pennsylvania resident Charlene Geiger. “When we got home and ran a Carfax, there it was – a flood car from Hurricane Sandy. It showed the seller bought it as a salvage car and the title was washed when he brought it to Pennsylvania. We lost $16,000 over all of it.” In addition to the current total, several hundred thousand more flooded cars may emerge from hurricanes Harvey and Irma. Historically, about half the vehicles damaged by floods end up back on the market. Flooded cars rot from the inside out as water corrodes the mechanical parts, shorts the electrical system and compromises safety features like airbags and anti-lock brakes. Health concerns are an added problem, as mold and bacteria permeate the soft parts of the car.

“Our data shows there’s still much work to be done in helping consumers avoid buying flood damaged cars,” said Carfax president Dick Raines. “They can, and do, show up all over the country, whether it be a few miles or hundreds of miles from where the flooding occurred. With two devastating storms already this year, it’s vital for used car buyers everywhere to protect themselves from flooded cars that may wind up for sale. Start with a thorough test drive, a vehicle history report and a mechanic’s inspection before buying any used car.” In the wake of hurricanes Harvey and Irma, Carfax is letting consumers check for flood damage free of charge at carfax.com/ flood. Localized flooded vehicle statistics are available upon request. An infographic also is available for use at www.carfax.com/ press/resources/flooded-cars.

November/December 2017 DEALER NEWS

INSIDE

08 ..........................................................Flood Damage Basics 10............................................... MIADA Goes to Washington 12........................................4 Misunderstandings about Price 18.......... Why Customers Refuse a Vehicle Service Contract 19..................................................Dealership’s Natural Ability 20...................................................................Golf Tournament

WHAT’S NEW

SPECIAL FEATURES: DISASTER RELIEF

NIADA and Spireon recently teamed up to provide disaster relief to those directly impacted by hurricanes Harvey and Irma. Partnering with the NIADA Foundation Disaster Relief Fund, Spireon is contributing $100,000 through the end of the year to help with recovery. Spireon is also helping customers get their businesses back up and running through data on their NSpire platform. To learn more, check out the story on NIADA.tv’s Special Features channel.

ADVERTISERS INDEX

ADESA ................................................................................. 15 Alliance Inspection Management ........................................19 AmTrust Financial................................................................. 17 Auto Auction of New England ...........................................IBC Auto Use .................................................................................8 BMW Group Direct............................................................... 13 Central Mass AA.....................................................................3 Lynnway Auto Auction........................................................6, 7 Manheim ...............................................................................11 Net Driven............................................................................... 9 NextGear Capital.................................................................. 12 Protective................................................................................ 5 Rockland Trust Floorplan.......................................................18 Southern Auto Auction........................................................IFC VAuto......................................................................Back Cover

OFFICE

For information on how to become a member of MIADA, please contact Melissa Otis at 781-278-0077 or director@miada.com.

NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE

DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com. The MA/New England Dealer News is published bi-monthly 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 Dealer News or NIADA. Likewise, the appearance of advertisers, or their identification as members of MIADA or 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

Christy Haynes • christy@niada.com PRINTING

Nieman Printing

AUCTION NEWS

BY AUTO REMARKETING STAFF

2017 BEST AUTO AUCTIONS TO WORK FOR Workplace Study

Auto Remarketing’s Best Auctions to Work For, sponsored by CARS Recon, is a free workplace study for the auto auction industry that recognizes the best auto auctions to work for on an unranked basis. It is designed and intended for individual auction locations – not corporate or headquarter offices. It is absolutely free for these individual auctions to participate. Winners are recognized both in Auto Remarketing and at the National Remarketing Conference/NAAA Convention during Used Car Week. Auto Remarketing, teaming with the Best Companies Group in Pennsylvania, underwrites the study. The study is managed by BCG, and the data is analyzed 100 percent by the staff at BCG. Best Companies Group directly administers all surveys and manages and analyzes all data and information gathered. The Best Companies Group assesses the data from the group of auctions choosing to participate and develops metrics and standards based on that data to determine which auctions are named. Thank you to all who participated this year, and congratulations to those recognized in this year’s study.

EXECUTIVE COMMITTEE

BOARD OF DIRECTORS

PRESIDENT Juan Mendez JC Auto Sales

Ed McLaughlin MASS Car Mart

Rich Copponi Auto Use/Auto Loan

VICE PRESIDENT Bob Baker Jr. Dorchester Motor Sales

Bob Shaw Sr. Shaw Auto Leasing

Tim Hoegler Manheim New England

TREASURER Rick Schneider The Garage

Dana Duchak Lynnway Auto Auction

John Perro Perro’s Auto Sales

SECRETARY Brent Landes Landes Family Auto

Dave Chandler Toy Store Auto Sales

Harold Proodian Wagner Group

CHAIRMAN OF THE BOARD Bob Hayes Auto Town Rentals Inc. EXECUTIVE DIRECTOR Melissa Otis director@miada.com

PAST PRESIDENTS

Steven Carnes - Worldwide Preowned LLC Tim Collins - Quincy Auto Auction Eddie Coolbrith - S & E Auto Ron Dial - Dialworks Phil Greenstein - Keystone Automotive

DEALER NEWS November/December 2017

Here are the 2017 Best Auto Auctions to Work For: Auctions in Motion DAA Northwest DAA of Chattanooga DAA Seattle KCI Kansas City Louisiana’s 1st Choice Auto Auction Manheim California Manheim Dallas Manheim Dallas-Fort Worth Manheim Darlington Manheim Fredericksburg Manheim Hawaii Manheim Keystone PA Manheim Lakeland Manheim Mississippi Manheim Nashville Manheim Pensacola Manheim Philadelphia Manheim St Pete Best of the Rest: While their overall scores were just shy of the high mark required to be included in the Best Auto Auctions to Work For, they represent the up and coming, and we expect to see many of the following on next year’s Best Auto Auctions to Work For list: DAA of Huntsville DAA of Memphis DAA of Mobile DAA of Murfreesboro Texas Lone Star Auto Auction Editor’s Note: ADESA auctions did not participate in the 2017 Best Auto Auctions to Work For Study. To see the company’s auctions that earned recognition last year, reference the Sept. 15, 2016 issue of Auto Remarketing.

Luke Semmelrock Central Mass Auto Auction

Robert Shedd II The Auto Brokerage Steve Newcomb Royal Administration

Don McKenna - Patriot Motors Inc. Fred Moschetto - Moschetto Brothers Inc. Louis Tedeschi - ASPI Motor Cars John Eleftherakis - John’s Auto Sales

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! E R E H IT’S

THE HIGHER MILEAGE VSC S R E L A E D M A PROGR R O F G N I T I A HAVE BEEN W

. D E V I R R A HAS INTRODUCING THE NEW PROTECTIVE AUTO CARE PLAN Higher mileage vehicles need a higher mileage protection plan. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans

STAY FOCUSED ON YOUR CUSTOMERS Visit protective-acp.com

or call 866 924 7513 to learn more.

and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. The plan includes other benefits such as rental car reimbursement and emergency roadside service providing true peace of mind.

Protect Tomorrow. Embrace Today.™ VEHICLE PROTECTION PLANS | GAP COVERAGE | CREDIT INSURANCE | LIMITED WARRANTY PRODUCTS DEALER PARTICIPATION PROGRAMS | F&I TRAINING | ADVANCED F&I TECHNOLOGY Limited Warranty Products, Vehicle Protection Plans (VPPs) and GAP are backed by Protective Property & Casualty Insurance Company in all states except NY. In NY, VPPs are backed by Old Republic Insurance Company, Limited Warranty Products are backed by Western General Insurance Company and GAP is not available. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.

MARKET WATCH

BY MATT ARIAS

FLOOD DAMAGE BASICS Tips on Flooded Vehicles Damage to vehicles by floodwater is a topic that keeps coming up as we continue to analyze issues around the country that have physical effects on vehicles. As stated by NAAA, “Vehicles are frequently exposed to moisture during their ordinary operation, maintenance and reconditioning. Occasionally, such exposure may leave residual marks or indicators similar to those left by exposure or immersion of the vehicle in floodwater.” We also know that flood damage carries a stigma that damages the overall value of a vehicle. It is vitally important that a systematic and complete inspection be performed by personnel qualified to appropriately evaluate each condition in the context of the total condition and vehicle history. WHAT IS A FLOOD? According to the National Flood Insurance Program’s website (www.floodsmart.gov) a flood is defined as “a general and temporary condition where two or more acres of normally dry land, or two or more properties are inundated by water or mudflow.” Floods are caused by events such as hurricanes and damaged or overflowing

DEALER NEWS November/December 2017

levees, dams, drainage systems, rivers, ponds or lakes. The majority of floods are caused by rainfall. HOW DO WE INSPECT A VEHICLE FOR EVIDENCE OF FLOOD DAMAGE? As outlined in the NAAA Auction Standards Training, flood damage involves the entire vehicle, any relevant history and title status. Below is a recommended course of discovery to determine if a vehicle requires disclosure for flood damage. Data History Ideally the majority of insurance companies that manage flood-related claims to all property will report to various vehicle-history databases. One of these databases is run by the National Insurance Crime Bureau, a North American non-profit membership organization created by the insurance industry to address insurance-related crime. It works closely with law enforcement agencies. NAAA recommends using more than one credible source to help establish the claim may be valid by creating a need to inspect visually. Title Status

The title may or may not be branded due to the effects of the flood. The vehicle may indicate “total loss” history but have a clean title. It is important to understand the reason the vehicle was deemed a “total loss.” If the title is branded, the vehicle will require a proper disclosure by sellers to would-be buyers when selling at an auction that falls under NAAA policy. Physical Condition The vehicle may have been cleaned up partially or fully. The indicators below will help the inspector determine the actual presence of flood damage. •S trong musty odor in interior or luggage compartment. •S urface rust under dash or seats on unfinished steel brackets, frames or springs. •D ampness in seat cushions, headliner, visors and other upholstered components. •M ud, silt or sludge build-up in wheel wells; inside bumpers, hinge boxes, door openings/sills, or door drain holes; under carpets or luggage compartment floor mats.

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• Surface rust on underbody components, brake rotors/drums, exhaust system, pinch welds, brake lines, chassis components. • Mud or sludge build-up inside door panels, behind luggage compartment side walls, beneath dash, inside glove box, etc. • High water marks on door panels, upholstery, trunk interior, or head or tail light lenses. • Deposit of debris such as silt, grass and small twigs. • Accumulation of silt/rust inside major mechanical components. • Extremely corroded wiring harness, fuse boxes, etc. • Corrosion to structure that requires disclosure, per NAAA Structural Damage Policy. Some caveats exist with the physical inspection. The NAAA policy exempts vehicle affected by water ingress by the following: • Heavy detailing: Some carpets and upholstery are badly stained or soiled. This may require hard scrubbing with hot water and strong chemicals during the detail process. These signs alone are not proof of flood damage. In many cases, carpet wetness or dampness and odors in the trunk area and interior are misdiagnosed as flood damage. • Dirt road usage: Many vehicles are operated on unimproved, dirt and gravel roads. Many are subjected to off-road conditions. Thus mud, silt and sludge build-up may be normal and should not in itself be considered flood damage. Interior dust and dirt accumulated during normal operation may become muddy during the detail process. • Normal wear and tear: Light surface rust is common on exposed metal surfaces and is not sufficient alone to prove flood exposure. The absence of rust on exposed metal should also be considered, although not conclusive, as evidence of no flood exposure. • Disclosure requirements: No disclosure is required nor is arbitration allowed for the following types of water exposure, provided that none of the components outlined below are damaged: o Rain, snow or sleet due to open windows, doors or tops, or leaking seals. o Car wash or rinse water. o Carpet or upholstery shampooing or cleaning. o Stream, pond, puddle or floodwater that does not rise above the rocker panel or otherwise enter the passenger compartment. o Stream, pond, puddle or floodwater that enters the luggage compartment, but does not damage any electrical components – such as lighting or wiring harness – or does not enter the passenger compartment. Disclosure is required and arbitration shall be allowed under the following conditions:

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o Claim filed within specified timelines (per NAAA Appendix 1). o The title has been correctly branded indicating flood history of the vehicle. o Any of the following components have been damaged due to immersion:  Front or rear lighting or wiring harnesses.  Engine and its major components.  Transmission and differential.  Dash instrument panel and wiring.  Passenger seat cushions.  Power seat or window motor.  Major sound system components.

The recommended disclosure that a seller should make to would-be buyers is “Flood Damage.” This disclosure requirement should be made regardless of sale light, but buyers must be mindful of sale channel exemptions (e.g, salvage sales). All stakeholders must be mindful of the vehicle’s history, physical symptoms and policy disclosure requirements when selling or buying at auction. Keep in mind that flood damage vehicles are like floods. They can appear anywhere it rains! MATT ARIAS is Manheim’s director of operational excellence. This article originally appeared in NAAA’s On the Block.

November/December 2017 DEALER NEWS

ASSOCIATION NEWS

MIADA GOES TO WASHINGTON National Policy Conference

The NIADA National Policy Conference was held September 25-27, in Washington, D.C. Association members from all over the country rallied together to discuss legislative and regulatory issues as well as lobby on Capitol Hill. Lou Tedeschi, NIADA Region 1 vice president and MIADA past president, and MIADA executive director Melissa Otis teamed with AutoZone representatives James Chenier of Massachusetts and Ray Curry of Oregon as well as auto dealers Gary Sargent from Oregon and Michael Frazer from New York. They visited with representatives from the offices of Senator Elizabeth Warren, Congressman Joe Kennedy, Congressman Earl Blumenauer, Congressman Peter DeFazio, Senator Jeff Merkley and Senator Ron Wyden. Topics discussed were tax reform regarding the independent dealer, repealing the anti-consumer arbitration rule and recalls. Guest speakers at the event included White House deputy chief of staff Rick Dearborn, Jason Dore from the Small Business Administration and D.J. Gribbin from the White House National Economic Council. At the rooftop dinner, NIADA region vice presidents worked diligently to raise money for the NIADA PAC Fund, or Political Action Committee Fund, to ensure continued political effort to protect the independent dealer. In total, an astounding $96,000 was raised. If you have not attended this event before, it is in your best interest as a business owner to attend and let your voice be heard.

DEALER NEWS November/December 2017

AUCTION NEWS

ADESA BOSTON HOSTS SAFETY DAY Putting Safety First

ADESA Boston recently hosted Safety Day, bringing together auctions from all over the country to discuss fresh ideas on auction safety. Safe T. Sam was on hand as well as leaders from NAAA, KAR Auction Services, Manheim New England, Lynnway Auto Auction, MIADA and more. Thank you ADESA Boston for being such a gracious host and putting safety first!

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MANAGEMENT MATTERS

BY DALE POLLAK

4CouldMISUNDERSTANDINGS ABOUT PRICE Impede Your Sales Velocity and Profitability Old beliefs and habits definitely die hard. Take the way many dealers still think about their vehicle prices, for example. Dealers control vehicle prices. I’m not talking about the obvious point that dealers do, in fact, largely set the asking prices for their vehicles. My point relates to the ever-more powerful influence the market has on a dealer’s latitude to price vehicles the way they really want to. Some dealers have let this one go entirely. They’ll price their vehicles based on what the market data tells them – no more, no less. They recognize they can’t control or make the market for a vehicle. They understand the market dictates if the car’s a winner or loser, or lies somewhere in between, and they should price accordingly. A higher price is a better price. Some dealers still believe higher prices lead to higher front-end gross profits. This belief used to be true, before the Internet and pricing transparency gave the market more influence on vehicle prices. Back then, dealers could set their retail asking price as high as they wanted, and negotiate to keep every last bit of gross profit from a customer. Unfortunately, it doesn’t work that way as much or as well today. Vehicle buyers hunt hard for a fair price, and don’t respond well to dealers with vehicles priced 10 to 20 percent higher – or more – than the same or similar cars in their markets for no apparent reason. Price and age aren’t related. This thinking isn’t as prevalent as it used to be in used vehicles. Generally, dealers recognize the longer a used vehicle sits in inventory, the less money it makes, due to depreciation, competing units and opportunity costs. As a result, many dealers make the effort to adjust prices as vehicles age to facilitate a timely retail exit. But these same dealers often do not apply the time-is-money principle in new vehicles. The prices these dealers place on new vehicles on Day 1 often don’t change for months. Other dealers, however, have recognized that age- and market-related adjustments result in faster retail sales, which affords them the right to earn additional inventory from their factory partners. When you re-price, you lower your price. Dealers affirm the vast majority of re-pricing decisions result in a lower price. But the most market-astute dealers know this isn’t always true. That’s why they assess each vehicle’s online performance. They ask these and other questions: Is the vehicle’s online listing getting a sufficient number of Vehicle Details Page views? Is the online activity increasing or on the

DEALER NEWS November/December 2017

THEY ASK THESE AND OTHER QUESTIONS: IS THE VEHICLE’S ONLINE LISTING GETTING A SUFFICIENT NUMBER OF VEHICLE DETAILS PAGE VIEWS? IS THE ONLINE ACTIVITY INCREASING OR ON THE WANE? ARE THERE MORE OR FEWER COMPETING CARS IN THE CURRENT MARKET? wane? Are there more or fewer competing cars in the current market? How do the prices and Market Days Supply metrics on these cars compare with mine? Most of the time, the answers lead to price reductions. But there are times where dealers are well-justified to raise a vehicle price, or hold off on a price reduction, because their vehicle stands taller in the market than others. I’m sharing these misunderstandings because I’ve seen, time and time again, how they impede a dealer’s ability to fully maximize vehicle sales velocity and profitability. In today’s market, margins are too thin, and time is too precious, to allow these common misunderstandings about vehicle prices to get in the way of tomorrow’s retail sales. DALE POLLAK is the founder of vAuto and an executive with Cox Automotive. This column ran on his blog on June 19. For this story and all his posts, visit www.dalepollak.com.

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ASSOCIATION NEWS

IN MEMORIAM Darcy Cassidy

DEALER NEWS November/December 2017

MARCH 12, 2004 OCTOBER 3, 2017

Darcy Cassidy was the loving daughter of auctioneer Mike Cassidy and his wife Cathy. Our thoughts are with the entire Cassidy family.

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AUCTION NEWS

REMEMBERING VICTIMS OF LYNNWAY AUTO AUCTION TRAGEDY Thank you to Donors

Elliott M. Rowlands, Jr., 50 of Buzzards Bay

Thank you to all who helped MIADA raise $140,000 for the families of the victims of the Lynnway Auto Auction tragedy. A special thank you to our friends at NAAA and NIADA for their support and assistance.

Our thoughts and prayers are with you.

Leezandra Aponte, 36 of Lowell, MA

Ruben Espaillat, 55 of Methuen, MA

Brenda Azucena Lopez, 48 of Lincoln, Rhode Island

Pantaleon Santos, 49 of Cumberland, Rhode Island DEALER NEWS November/December 2017

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November/December 2017 DEALER NEWS

ACCELERATE

BY GWC WARRANTY

WHY CUSTOMERS REFUSE A VEHICLE SERVICE CONTRACT Setting Yourself Up for Success

There’s a lot of blame to go around when an F&I deal falls through. You might put it on the customer who just didn’t have an open mind. Or you could point to the sales department that agreed to a deal that left little room in the customer’s budget. In the end there’s only one place to look when it comes to opportunities in vehicle service contract deals gone bad: the person sitting across from the customer. But there’s good news. It’s an easy problem to fix. Every service contract deal that doesn’t happen is an opportunity to objectively look at why the deal didn’t come to fruition. But boiling things down, there are two main reasons why customers refuse to buy a vehicle service contract: they think they can’t afford it or they don’t see the need right now.

DEALER NEWS November/December 2017

Focus on key words in each of these objections: Customer think they can’t afford them, and they don’t see the need right now. What’s positive here is the person sitting across the desk from the customer in the F&I office has control over both of these lines of thinking. All it takes is a few questions for you to show the customer what they really can’t afford is a major repair bill and while the vehicle is in great shape now, there are realities with used cars they should prepare for. Almost every customer will object to paying more for a VSC. The key here is getting to the bottom why. Often, it’s a simple misunderstanding of what common repairs cost. Always ask price-conscious customers what they think a major repair costs. Regardless of their answer, you have an opportunity to position the value of a service contract.

If their response is too low, you can show past repair orders and ground the customer in the reality of these costs. If the response is on point or on the higher end, you can focus on how such a repair impacts a monthly budget while asking the customer if that repair fits within their monthly expenses. When customers don’t see the need for a service contract, it’s usually due to confidence they have in the vehicle they’re buying. Most car buyers expect to be purchasing a vehicle in good working order. So why would they need protection on repairs? The reality here, especially with used vehicles, is that components are more likely to break down as they age. Ask a customer about their level of understanding of factory warranties, if the vehicle still qualifies. Here is your opportunity to showcase that factory coverage covers many parts least likely to fail. But a service contract covers many of the components likely to break down with wear and tear. Just like your grandparents visit the doctor more often, used vehicles will visit the shop for smaller issues more often as they age, so it’s important to be prepared for this fact. Getting to the root of why your customer is refusing a service contract is where your opportunities reside. Most of the time, customers are excited to drive off in their new car or they simply don’t understand many of the intricacies of owning a vehicle and what it costs. Take this opportunity to act as a consultant. Ask the right questions and be prepared with the answers, and you’ll set yourself up for more success in the F&I office.

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MANAGEMENT MATTERS

SAFETY WATCH

BY MICHAEL WATERMAN

KNOW YOUR DNA Dealership’s Natural Ability

What is DNA? In the car business, I define it as Dealership’s Natural Ability. Whether you are a new car dealer or an independent used car dealer, you have a natural ability to sell certain models well. Units we would refer to as “core” units you should always have in stock and look to replace as quickly as you sell them. What percentage of your inventory is currently a “core” unit? How does that compare to what you have sold over the last three, six, or 12 months? Does your current “mix” make sense? How do we figure out what our DNA is? Let’s start with the cost of acquisition. Do you know what your cost of acquisition is from each venue you use? Start with fees, such as buy fees and transportation. How much does each venue tack on to every car you buy? How quickly do you get the car to your location? What is your “days to market” from each venue? That is how long it takes you to process the car and place it on the front line and online for sale. Top dealer groups in the U.S. run five to seven days to market. It’s all about turn. You cannot maintain a 25-day turn if you are taking 12-15 days to get a vehicle retail ready.

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Now look at your average turn and average gross. How long did it take to sell? How much did you make? What was your gross profit per day? If you sold a car for $2,000 in 20 days, that’s $100 per day gross profit. If you sold a car for $3,000 but it took 60 days, that’s $50 per day gross profit. If you are working towards a better turn, which example is better? In the first example you are turning your inventory over 18 times per year at $2,000 per copy. The second example turns your inventory only six times per year. If you have 20 cars in stock today, example one would move over 350 units in a year at $2,000 per copy. The second example would move 120 units at $3,000. Which is better? Gross is not always king. Turn plus gross is king. Now add in what your DNA looks like. Evaluate your most cost effective acquisition sources and you will win. Good luck! MICHAEL WATERMAN is vice president of sales for ACV Auctions. He can be reached at (207) 752-2449 or mwaterman@acvauctions.com. For more information, visit www.acvauctions.com.blog. For this story and all his posts, visit www.dalepollak.com.

MAZDA RECALLS CARS FOR WIRING ISSUES Damaged Wiring Could Deactivate Passenger Airbag

Mazda North American Operations is recalling 57,878 2015-16 Mazda6 vehicles. Debris from the welding process during manufacturing of the front passenger seat frame may damage the occupant classification system (OCS) wiring. If the wiring becomes damaged, there may be a loss of power steering assist and the deactivation of the passenger airbag, increasing the risk of a crash and the risk of injury in the event of a crash. Mazda will notify owners, and dealers will attach a protective pad on the seat frame. If the OCS harness is damaged, insulating tape will be applied to the harness. These repairs will be performed free of charge. Mazda’s number for this recall is 1517H.

November/December 2017 DEALER NEWS

DEALER NEWS November/December 2017

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November/December 2017 DEALER NEWS

ASSOCIATION NEWS

SPIREON DONATES $100,000 TO NIADA FOUNDATION’S DISASTER RELIEF FUND Major Financial Commitment to Assist the Dealer Community Affected by Hurricanes Harvey and Irma

Spireon Inc., a Diamond-level NIADA National Corporate Partner and leading provider of GPS solutions with GoldStar and other connected vehicle products, will contribute $100,000 to the NIADA Foundation’s Disaster Relief Fund to assist members of the automotive community in their recovery from the devastating effects of hurricanes Harvey and Irma. Spireon, a longtime NIADA partner, said it selected the NIADA Foundation Disaster Relief Fund for its commitment to directly contribute to its customers and the communities they serve because it was the quickest way to help in the recovery. “Our hearts and prayers go out to the folks whose lives have been impacted by hurricanes

Harvey and Irma,” Spireon CEO Kevin Weiss said. “We know the road has not been easy over the past few weeks and we know the recovery efforts will continue for months to come. “We are incredibly thankful for the support our customers have shown us over the years and feel very fortunate to be in a position to give back to these impacted communities.” In addition, Weiss said Spireon will use its NSpire platform to provide the data its customers need to help get their businesses up and running, creating reports to help identify assets potentially at risk from the storms and assist dealers in assessing the next steps for their business. “When Spireon heard the NIADA Foundation had created the Disaster Relief Fund, it quickly rallied and offered a major financial commitment to help those affected by the catastrophic storms,” said Steve Jordan, NIADA’s CEO and president of the NIADA Foundation board of trustees. “We appreciate that Spireon understands recovery doesn’t happen overnight and we are looking forward to working with Kevin

Weiss and his entire team to advance our shared goals of helping all members of the independent dealer community get back on their feet again.” The Disaster Relief Fund was established by the NIADA Foundation to provide a venue for members of the National Independent Automobile Dealers Association and its industry partners to assist fellow dealers and others in the automotive community affected by the recent storms. Jordan said 100 percent of all contributions received will be donated to provide relief from the effects of flooding, help repair property damage and assist with other disaster-related needs attributable to the catastrophic weather events that struck Houston and other areas along the Texas coast and Florida. The NIADA Foundation is a non-profit 501(c) (3) charitable organization that serves as the focal point of NIADA’s charitable efforts and coordinates the association’s charitable giving. The NIADA Foundation will continue to fund hurricane relief efforts in the coming months. It is not too late to donate. For more information or to contribute, visit www. niadafoundation.org.

We are making a difference “We are committed to helping our friends and colleagues in the automotive industry get through this trying time. Our thoughts and prayers got out to all those affected or displaced by these massive storms.”

- Steve Jordan, NIADA Foundation President and CEO

The NIADA Foundation is collecting donations for a Disaster Relief Fund for Hurricane Harvey and Hurricane Irma victims.

100% of the contributions received will be donated to those needing relief from the effects of flooding, property damage or other disaster-related needs attributable to this weather event. Donations will be made in collaboration with both the Texas IADA and the Florida IADA and will be considered on a case-by-case basis as identified through this collaborative disbursement relationship.

Contributions, which will assist the hurricane disaster victims directly, may be mailed to the address indicated below or made online.

DISASTER RELIEF FUND

Donate Here: National Independent Automobile Dealers Association Foundation 2521 Brown Boulevard • Arlington, Texas 76006

www.niadafoundation.org The NIADA Foundation is a tax exempt nonprofit organization under section 501(c)(3) of the Internal Revenue Code and is qualified to receive tax deductible contributions including bequests, devises, transfers or gifts. *Donations to the NIADA Foundation are voluntary and are tax deductible. Please consult your own tax advisor for the tax implication on the deduction for this donation.

DEALER NEWS November/December 2017