Mi 0117 by NIADA

DRIVELINE

State Affiliate

M I C H I G A N I N D E P E N D E N T A U T O D E A L E R S A S S O C I AT I O N WINTER 2016

HAPPY

NEW YEAR! DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

VISIT US AT W W W.MIADA.US

MI_0117.indd 1

1/3/17 9:36 AM

DON’T LIKE IT? DON’T KEEP IT. 30-DAY RETURN GUARANTEE

Purchase a 30-day guarantee on off-lease and rental vehicles offered in the DealerBlock Prime sale on ADESA.com. Pay just $50 for a 30-day guarantee.



Need to return the vehicle? We’ll pick it up from your lot!



Transportation refund too! If you use CarsArrive Network for transport of an ADESA Assurance vehicle, we’ll refund your transportation cost, if the vehicle is returned.

ADESA Assurance buyer protection program and CarsArrive Network must both be selected at time of purchase to qualify for transportation refund. Vehicle must be returned in same condition as purchased within 30 days from purchase date. ADESA Assurance refund covers vehicle sale price and buy fee; transportation costs are only included if CarsArrive Network is used for transportation. See terms and conditions for full details. ADESA Assurance program may be cancelled by ADESA at any time and without notice.

MI_0117.indd 2

1/3/17 9:36 AM

MI_0117.indd 3

1/3/17 9:36 AM

INSIDE

06..............................Election Provides Insights to Car Selling 08......................................................... Annual Awards Dinner 09............................................................ Scholarship Winners 11..........................................................Security Starts Within 14...........................................Tips for a Profitable Tax Season

WHAT’S NEW

CMD Dates Announced

Class dates for NIADA’s industry leading Certified Master Dealer program have been announced for the upcoming year. Look for a class coming to your area! Dates include Feb. 9-11 in Portland, Ore.; May 15-17 in Atlanta; Sept. 12-14 in Dallas; and Dec. 11-13 in Tampa, Fla.

Visit www.niada.com or contact Diann Flanders at 888-906-8283 or diann@niada.com for more information.

ADVERTISERS INDEX

ADESA...................................................................................IFC Black Book................................................................................3 Greater Kalamazoo AA............................................................9 Lakeside Insurance............................................................... IBC Manheim ..........................................................................10, 11 Manheim Pennsylvania..........................................................13 NexGear Capital.......................................................................7 Protective..................................................................................5 VAuto....................................................................... Back Cover

OFFICE

For information on how to become a member of please contact us at (248) 828-7010 www.miada.us

NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE

DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 Driveline is published by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006. Periodical postage is paid at Arlington TX, and at additional offices. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of the Michigan Independent Automobile Dealers Association or NIADA. Likewise, the appearance of advertisers, or their identification as members 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

Christopher Hanley • chris@niada.com PRINTING

Nieman Printing

ASSOCIATION NEWS BY OTTO HAHNE

PRESIDENT’S LETTER Annual Awards Dinner

Greetings! The holiday season is a time to be thankful for our family and friends. We had an amazing awards banquet held at the GM Heritage center this year, with tickets selling out very quickly and I’m sure we could have sold many more! Our executive director Lisa Michael did an amazing job putting it all together. A couple of highlights from the evening: • The Unity Award was presented to Maurice VanCoillie, otherwise known as “Mr. Van.” Mr. Van has always been giving of his time and support to the MIADA. He again set a record for selling the most tickets not only to our event but raffle tickets as well. Having the distinguished title of our nation’s oldest active car dealer, Mr. Van is

a very tough act to follow. My videographer Austin Feys and I interviewed Mr. Van without informing him it would be aired at the awards banquet. The video, along with his hilarious acceptance speech, turned out to be a fantastic crowd-pleaser. • Our Dealer of the Year award was given to Gerald Drouillard for his outstanding work in the community and at his dealership. Like Mr. Van, this award was a surprise. Gerald will represent the MIADA in Las Vegas in June at the NIADA Annual Convention. • Our guest speaker, Don Foss, gave a very inspirational presentation. It was an honor to have him there that night. Families of both award winners were in full force at the banquet and a wonderful night was had by all. These kinds of events cannot be done without all of our volunteers and wonderful sponsors. We just can’t thank everyone enough.

BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Ray Campise Certified Motors 23509 Little Mack St Clair Shores, MI 48080 586-775-7000 sales.cmotors@gmail.com

DIRECTORS Dennis Craig Instant Car Credit PO BOX 146 Acme, MI 49610 231-938-2627 dcintc@gmail.com

PRESIDENT Otto Hahne City of Cars 1695 Stutz Dr Troy, MI 48084 248-458-1500 otto@cityofcars.com

Rick Rynberg Rynberg’s Car Co. 3880 Holton Rd Muskegon, MI 49445 231-744-1441 rickandwendy1@verizon.net

VICE PRESIDENT Ted Cooper Genesys Systems Inc 360 E Maple Rd Troy, MI 48083 248-597-1003 ted@gensystems.com TREASURER Joe Kuhta GWC Warranty 8865 Reese Rd Clarkston, MI 48348 248-670-1133 JKuhta@gwcwarranty.com SECRETARY Ed Ophoff Ophoff Motor Sales Inc. 2921 S Division Wyoming, MI 49548 616-452-7761 edwoph@aol.com

Tony LoBretto Alamo Valley A/S 6100 West D Ave Kalamazoo, MI 49009 269-344-8250 alamovalley@gmail.com Darvin Mileski NextGear Capital 11799 N College Ave Carmel, IN 46032 Maurice VanCoillie Van’s Used Cars 23509 Little Mack St Clair Shores, MI 48080 586-773-0560 586-773-0660 Bob Vincent Automotive Dealer Services LLC PO Box 102 Milford, MI 48381 586-477-8282 robertvincent@live.com

Nicole Renee Rite On, Inc 4680 W Jefferson Ave Ecorse, MI 48229 313-649-7308 nicole.riteon@gmail.com Jerry Drouillard Autohaus of Royal Oak 4411 Delemere Royal Oak, MI 48073 248-549-3636 gdro999@hotmail.com Jeff Baker Muskegon Car Credit Inc. 1515 28th St SW Wyoming, MI 49509 616-249-2000 EXECUTIVE DIRECTOR Lisa Michael 5119 Highland Rd PMB 393 Waterford, MI 48327 248-828-7010 lisamichaelmiada@gmail.com

Mission Statement

The Michigan Independent Automobile Dealers Association is committed to promoting growth and preserving the vitality and integrity of the independent motor vehicle industry through education and legislation as advocates for consumers and dealers.

4 MI_0117.indd 4

Driveline / Winter 2017

www.miada.us

1/3/17 9:36 AM

MI_0117.indd 5

1/3/17 9:36 AM

MANAGEMENT GAMEPLAN BY SCOTT BERGERON

ELECTION PROVIDES INSIGHTS TO MORE EFFECTIVE CAR SELLING Technology Alone Isn’t the Holy Grail Donald Trump’s election proves that state-of-the-art technology, by itself, doesn’t provide all the answers. Based on the vote totals, the highly sophisticated, technology-driven polls missed the mark. In that same vein, relying on technology alone to sell cars isn’t the Holy Grail that some make it out to be. With all its bells and whistles, technology can be undone by people who deliberately distort their answers, provide incomplete/inaccurate information, or change their minds. Case in point: a dealer’s data mining shows that a prospect wants a red crossover SUV, and details the supposed preferences about everything from color to desired storage capacity. Acting on this profile, the sales specialist steers the prospect toward SUV crossovers on the floor. Suddenly, the would-be buyer bolts toward a fire-engine red two-seater convertible on the showroom floor, and wants to test drive it. We see it every day. What they say they want and what they buy are sometimes two different things. Ask away… then listen. Human decision-making is complicated, prone to whimsy and spontaneity, and can be influenced by factors that no technology-driven profiling will uncover. That said, what does it take to help ensure the sale – no matter what has gone before? Good questioning, listening skills and intuition all contribute. Properly done, this will both confirm what the prospect says he prefers and compare it to other feedback that might dictate a different recommendation. (Trump is credited with intuition and listening skills that told him what his audience wanted, and how to respond to “close the sale.”) For example, the prospect may “prefer” an SUV crossover because of its practicality and suitability for a growing family. But there’s another voice screaming for the excitement and freedom of having that hot sports car. A savvy salesperson will then throw out the technologically-driven “personal playbook” and become a good investigative reporter. Questions can be along the lines of: 1. What pressures have moved you in the direction of this SUV? 2. How many of those pressures exist because of the need to satisfy other people (e.g., family)? 3. If you were just buying for yourself, what direction would you go? 4. Is this vehicle going to be a primary family car or serve as a backup, impacting reliance on it for multiple-person transportation? 5. How often do you need to haul goods? What types and volumes of goods do you haul? 6. Are you more interested in the car as dependable transportation, traveling or thrill-seeking?

A key part of getting to clarity in terms of helping a prospect is listening very closely to how the answers are phrased, tone of voice, and emotions being conveyed.

6 MI_0117.indd 6

Driveline / Winter 2017

7. How big a factor is safety? 8. How big a factor is MPG? 9. How big a factor is fast acceleration and overall power? 10. How big a factor is economy of ongoing maintenance? Obviously, these are just some basics. The key is to get a clearer idea of what the prospect’s priorities are, then confirm budget, assemble them into recommendations, and see what solutions you can provide to meet the needs and wants. Take into account both verbal and non-verbal clues. A key part of getting to clarity in terms of helping a prospect is listening very closely to how the answers are phrased, tone of voice, and emotions being conveyed. It’s also critical to watch body language. A prospect displaying openness and overt acceptance or guarded response and hesitation can be seen in basic body language gestures. To some of us old school car guys, all of this may sound elementary – because that’s how we came up through the business, before there were all the advanced ways to “figure out” prospects before they entered a showroom floor. Today, between order-takers who just answer questions without asking any of their own, and “know-it-alls” who presume to know their prospects’ total picture based on a digital profile asking confirming questions, these are highly important skills. Get creative with solutions. Once the salesperson has as full a picture as possible, provide ideas that can range from conventional to way out of the box. It may require looking beyond the obvious, including present inventory, to find answers that will resonate with a would-be buyer. In the example above, let’s say the salesperson determines the prospect really wants the sports car but is resigned to the more practical SUV crossover. Based on the intelligence gathered, the SUV meets most of the needs/ preferences. But, what he really yearns for is the excitement of the convertible sports car that can go 0-60 in under four seconds. It’s easy enough to stop with the SUV. After all, it’s the better objective solution for the circumstances at hand. But, as we all know, car buying is also about the emotional thrill of adventure,

open air, high speed, and whatever appeals to that prospect. Why not wrap practicality and performance in a creatively structured “two-car deal?” Find a used SUV crossover that meets the practical needs, and then move on to a sports car (likely older and lower-priced) for the “want” side of things. While two-car deals can be tricky, weigh all the options in the direction that suits your buyer’s ability, wants, and then needs, in that order. Technology itself can fool salespeople into only one solution. As your deal ebbs and flows during the “landing stage,” keep the ideas flowing in your head on how to best structure the deal that will work best based on abilities, wants, and needs. If the deal doesn’t necessarily work out with all your sales expertise, don’t be afraid of a tried and true process, known as the T.O., or turnover. A T.O., or manager introduction, can help move the deal along while the prospect is still there. There may be other options a manager or even another salesperson can think of that you haven’t. In any case, give the prospect a reason to return. Then follow up periodically when another option presents itself on the lot or a special deal can be offered based on other factors. Capture the conversation on a database. One area where technology can be extremely helpful is using a CRM, or other technology, and using it consistently. Get in the habit of recording information immediately after your contact’s visit, call, or email. A CRM is only as good as the information going in. If you prefer writing things down, the secret is in the consistency – even if it’s a 3x5 card. Combining this with post-visit intel can make a powerful follow-up, and creates more customers for life. Moral of this story: Salespeople who rely too much on technology and not enough on good interviewing skills and instincts will find themselves losing sales they could have won. Former dealer executive Scott Bergeron is the founder of Daily Gameplan.com, a sales team performance company. Scott can be reached at 303.918.3169 or scott@ dailygameplan.com.

www.miada.us

1/3/17 9:36 AM

MORE BUYING POWER COMING YOUR WAY IN 2017 Let NextGear Capitalâ&#x20AC;&#x2122;s flexible lines of credit empower you to purchase the units you want from over 1,000 live and online auctions, in addition to other inventory sources nationwide.*

Visit nextgearcapital.com or call 855.372.2329 and make 2017 your most successful year yet!

MI_0117.indd 7

1/3/17 9:36 AM

ASSOCIATION NEWS

ANNUAL AWARDS DINNER Two Prestigious Awards

This year our annual awards dinner dance was held October 8 at the GM Heritage Center in Sterling Heights. We had over 160 guests. The following awards were presented: • Quality Dealer of the Year: Jerry Drouillard of Autohaus of Royal Oak. •N ancy R Chapman Unity Award: Maurice VanCoillie of Van’s Used Cars Pictures courtesy of Surprenant Photography.

GUEST SPEAKER DON FOSS Dan Foss is the founder (1972) and significant shareholder of Credit Acceptance, in addition to owning and operating companies engaged in the sale of used vehicles. He was formally named chairman of the board of directors and chief executive officer of Credit Acceptance in March 1992 and vacated the chief executive officer position January 1, 2002. Mr. Foss spoke about his friendship with Mel Farr. Mel had a dream of helping underprivileged children in Detroit, Michigan. Don Foss founded Car Dealers Care in 2016 in his friend’s honor.

8 MI_0117.indd 8

Driveline / Winter 2017

Guest speaker Don Foss

www.miada.us

1/3/17 9:36 AM

ASSOCIATION NEWS

RAFFLE WINNERS

MIADA’S SCHOLARSHIP WINNERS

The winners of the 2016 raffle: • First Place: Ray Campise/Dominic Caradonna • Second Place: G & L Auto Sales • Third Place: City of Cars

Madison Vincent & Zachary Radmacher

Thank you to our sponsors:

CARFAX has graciously offered a scholarship of $500. Thank you, CARFAX! The recipient of this scholarship is Madison Vincent, daughter of Bob & Jill Vincent of Automotive Dealer Services. Madison is currently enrolled in Oakland Community College and hopes to graduate in 2018. The recipient of this year’s Greater Kalamazoo Auto Auction Scholarship, also $500, is Zachary Radmacher, grandson of David Roush of Roush’s Automotive. Zachary is attending Kuyper College and pursuing a degree in business.

ADESA Lansing AFC AutoZone Carfax Chief Financial Credit Union City of Cars Cox Automotive/Kelley Blue Book Flint Auto Auction Genesys Systems Grand Rapids A/A Greater Kalamazoo A/A Guardian Warranty Co. Lakeside Insurance Agency Manheim Detroit Nationwide Acceptance NextGear Capital Preferred Warranties World Data Corp

GREATER KALAMAZOO AUTO AUCTION 900 Vehicles EVERY THURSDAY at 10am Promo Sale

THE PREMIER FLEET/LEASE & REPO SALE

THURSDAY, JANUARY 26, 2017 AT 10AM - 100+ UNITS 2 Lease Lanes • 6 Dealer Lanes 9 Lane Recon Facility • 400 - 450 Lease Cars & Repos

FAST START 2 8

D A Y

F R E E

FIND US ON

F L O AT

TAX-TIME UNITS UNDER $7,000 1st and 3rd Thursday at 9am

Daryl DeVries, General Manager daryld@kalamazooaa.com Tim Schebeck, Fleet/Lease Manager Candice Peterson, Area Sales Manager cpeterson@xlerategroup.com tschebeck@kalamazooaa.com

Easy To Do Business With For Over 40 Years

800-536-2047

Toll Free: 800-536-2047 Office: 269-679-5021 Fax: 269-679-4542 900 N. U.S. 131 (8 miles south of I-94) Schoolcraft, MI 49087 www.kalamazooaa.com

www.miada.us

MI_0117.indd 9

Winter 2017 / Driveline

9 1/3/17 9:36 AM

A S S O C I AT I O N N E W S

QUALITY DEALER OF THE YEAR

QUALITY DEALER OF THE YEAR Jerry Drouillard of Autohaus Royal Oak

Jerry Drouillard of Autohaus Royal Oak is the 2016 Quality Dealer of the Year. Jerry and his wife Karen have two children, Lori and Jon. Jerry worked as a VW mechanic in high school and college. Jerry purchased a gas station in Birmingham and also purchased an Avis Rent a Car in Clawson and started a body shop in Royal Oak, which became his current location for his dealership and repair facility in 1984. Jerry is a devout Christian and always does the right thing. He believes “Do the right thing and the customer will stay loyal.” Jerry has been a member of the MIADA since 1990 and has served as the president.

WORLD-CLASS SERVICE...

129426_NIADA State Jan2017 insertions_HalfPage_NIADA_Left_Pg01.indd 1

MI_0117.indd 10

Driveline / Winter 2017

12/16/16 10:12 AM

www.miada.us

1/3/17 9:36 AM

TECHNICALLY SPEAKING BY DAN DOMAN

SECURITY STARTS WITHIN Six Steps to Protect Your Dealership’s Data

According to data security firm Virtru, even as hackers become more and more sophisticated, much of the threat to your business actually comes from inside. The company notes that up to 28 percent of enterprise data security incidents come from inside an organization. They’re not saying any of your employees has malicious intent – though that is possible. What they are saying is your staff could be inadequately trained or your data security policies might be incomplete or not enforced. So here are six training and enforcement policies to help protect your dealership from possible threats: Strong passwords: While you’ve heard it before and it might seem obvious, enforcing strict password requirements – such as requiring a minimum of eight alphanumeric characters with symbols – and prompting users to change their passwords regularly are easy ways to protect against unauthorized access. A 2015 survey by TeleSign found 47 percent of people use passwords that are at least five years old. Don’t let your dealership’s employees be among them. Authentication: Require multi-factor authentication on every device that accesses your dealership’s data. The process requires users to register their devices to a particular user ID and password. Registering a device requires employees to select and answer a series of “security” questions not easily guessed by anyone but the employee. In the event a user name and password was compromised, a hacker would still be unable to access your dealership’s systems unless that device was authenticated to those credentials, adding another layer of security.

IP blocking: Use IP blocking to limit user access from only dealershipapproved IP addresses. That helps prevent unauthorized access from remote or mobile locations. Implementing IP blocking is a great opportunity to review and audit your dealership’s policies regarding remote access to integrated dealer systems and appropriate purposes and use. Now that you have secured the devices that are coming into your system, focus on your dealership’s employees’ day-today use. Check your user permissions: Not every employee needs access to all of your dealership’s data. Assign employee permissions and access to specific

dealership systems that suit your business processes and the employees’ respective responsibilities. That will help control their ability to access personal and confidential customer data. Use your systems’ notification or activity alert tools: They can be configured to alert you of potentially suspicious employee activity, such as changes to a user’s “setup” or “preferences.” Run a report: Regularly run a user report to ensure all who have access truly need it. The reports should provide detailed information on users including dealer ID and dealer name (for dealer groups), user name, last successful login date, no user activity for more than 60 days, and admin. It is a sound security practice to check your

user reports against your active employee list. You should never have an ex-employee authorized to access your systems. Secure dealerships are successful dealerships, and maintaining a secure dealership begins with fundamental security practices. By implementing the six practices explained here, your dealership will be well on its way to helping ensure the security of your customers’ information – and a successful future. Dan Doman is chief legal and privacy officer of RouteOne LLC (www.routeone.com), a joint venture created by Ally Financial, Ford Motor Credit Company, TD Auto Finance and Toyota Financial Services. He is responsible for managing the legal, governmental, privacy, and security affairs of RouteOne LLC.

MICHIGAN » Manheim Detroit » Manheim Flint manheim.com 1-866-MANHEIM (626-4346)

...RIGHT IN YOUR BACKYARD.

See how Manheim can help you succeed — visit your local auction or manheim.com today.

129426_NIADA State Jan2017 insertions_HalfPage_NIADA_Michigan_Pg02.indd 1

www.miada.us

MI_0117.indd 11

12/16/16 10:11 AM

Winter 2017 / Driveline

11 1/3/17 9:36 AM

ASSOCIATION NEWS

AUCTION NEWS

NEW MEMBERS Welcome

KAR AUCTION SERVICES ACQUIRES FLINT AUTO AUCTION Detroit-area Facility Will Operate as ADESA Flint

ABC Detroit/Toledo Perrysburg, OH

Elite Car Sales & Rentals Inc. Waterford, MI

All Ready Auto Inc. Bay City, MI

Floorplan Xpress Oklahoma City, OK

AutoZone

Shadow Trailer World of Michigan Berrien Springs, MI

Carshow LLC Southfield, MI Drivetime Car Sales Tempe, AZ

Steinman Group Inc. Pigeon, MI Victor Johnson Used Cars LLC Grand Rapids, MI

KAR Auction Services announced it has acquired Flint Auto Auction, a whole car auction facility in Flint, Mich. The facility will operate as ADESA Flint, strengthening the national footprint of KAR’s ADESA business unit and extending the reach of KAR’s integrated operating model. “Fortifying KAR’s presence in the epicenter of the U.S. automotive industry has been a long-term strategic priority,” KAR chief executive officer and chairman Jim Hallett said. “ADESA Flint enhances KAR’s endto-end remarketing platform in Detroit and positions us to accelerate growth in the very dynamic Midwest marketplace.” ADESA Flint joins KAR’s other primary business units, Insurance Auto Auctions and Automotive Finance Corporation, in the Detroit market and is KAR’s sixth location in Michigan. Together, the companies provide a full range of whole car, salvage and financing options and a differentiated suite of innovative products and technology solutions.

AUCTION NEWS

WEST MICHIGAN AUTO AUCTION HONORED

TOGETHER, THE COMPANIES PROVIDE A FULL RANGE OF WHOLE CAR, SALVAGE AND FINANCING OPTIONS AND A DIFFERENTIATED SUITE OF INNOVATIVE PRODUCTS AND TECHNOLOGY SOLUTIONS.

NAAA’s Auto Auction of the Year

West Michigan Auto Auction of Wayland, Mich., has earned the 2016 Auction of the Year Award from the National Auto Auction Association. The award honors excellence in community service. West Michigan Auto Auction was also the winning recipient of the regional Midwest Chapter Auto Auction of the Year, winning $5,000, which will be donated to the charity or charities of their choice. As the NAAA’s National Auction of the Year Award winner, West Michigan Auto Auction received an additional $20,000 to be donated to the charity or charities of its choice. In addition, NAAA’s On the Block magazine will feature a January 2017 cover story about WMAA and its charitable efforts. The auction will also grace the cover of the 2017 NAAA Member Directory.

(Left to Right): NAAA President Mike Browning; West Michigan Auto Auction Fleet Lease Manager

Jana Rauschenberg; WMAA General Manager, Carl Miskotten; WMAA Comptroller Kate Van Dyke; WMAA Dealer Registration Clerk Melinda Dykstra, and WMAA Accountant Rebecca Ward.

12 MI_0117.indd 12

Driveline / Winter 2017

Located just northwest of the Detroit metro area, Flint Auto Auction is a fully automated, eight-lane auction on 60 acres. The site also includes full-service reconditioning facilities, including a body shop and mechanical shop. “ADESA is a leading brand in the industry, and Flint Auto Auction is very pleased to join its international network of auctions,” Flint Auto Auction president Bill Williams Jr. said. “Both companies share a culture of innovation and a strong commitment to customer service. Joining the KAR platform will help us meet the demands of our increasingly sophisticated buyers and sellers, many of whom have been with us for generations.” Lawrence Cubitt will remain as general manager and other members of the auction team will retain key leadership roles. The auction hosts factory, fleet and dealer sales each Wednesday and has received multiple industry recognitions based on service and performance.

www.miada.us

1/3/17 9:36 AM

MI_0117.indd 13

1/3/17 9:36 AM

PRODUCTS & SERVICES BY DAVE MEYER

PAID ADVERTORIAL

TIPS FOR A PROFITABLE TAX SEASON How to Make the Most of It

As more consumers find stronger financial standing, their purchasing power increases. However, their credit scores don’t always reflect the same progress. The end result is a massive pool of subprime and deep subprime consumers ready to buy cars this tax season. Even large lenders are relaxing their credit score requirements to attract the subprime market. It’s a pretty big indicator that there’s opportunity to go around, whether you’re a BHPH dealer or own a small franchise. It also shows that there’s a lot of competition out there. So, with more car loan options available to subprime buyers, how do you increase sales and make the most of tax season? If you’re smart and proactive you can bring in up to 50 percent of your annual sales in just 8-12 weeks. That’s money in the bank or money you can reinvest in your business by adding to your inventory.

As more consumers find stronger financial standing, their purchasing power increases. However, their credit scores don’t always reflect the same progress. Tips for a Profitable Tax Season 1. You need to be able to say “yes” to subprime and deep subprime buyers. With technology like GPS vehicle tracking protecting your assets, the inherent risk of serving this type of buyer is drastically reduced. Without it, you lose a large pool of tax season buyers. 2. Have a plan in place to secure every deal. Competition is on the rise and every customer who walks onto your lot is a golden opportunity. If your sales process is long and cumbersome, they’ll walk off the lot and you’ll be out of the sale. To make your sales process run smoothly, have GPS preinstalled on all of your vehicles to eliminate wait time for your customers. 3. Don’t let things slip just because sales are on a roll. While a buyer may have money for the down payment, it’s important they can also afford the payments. You want airtight underwriting guidelines from your applications to your follow-through on STIPs verifications. GoldStar’s Reference Genie can

14 MI_0117.indd 14

Driveline / Winter 2017

save you time by verifying work and home addresses without picking up the phone. 4. Remember that the sale is only the beginning and profits are only profits after they’ve been collected. Have policies in place regarding partial payments, at what point recovery becomes an option and if a GPS vehicle tracking solution should be used to support your collection efforts. 5. Think out of the box. If you hadn’t heard, the PATH Act is now a federal law. That means tax refunds won’t be sent out prior to February 15. Instead of letting the new rules delay your tax season surge, start now. Yes, now! You can get way ahead of the rule and your competition by partnering with a tax and technology professional who can estimate refunds for your buyers. Once you’ve determined the refund schedule, you can set up irregular or later payments based on when the refund will come in. Layer that with an industry trusted GPS solution provider, and you’ll have peace of mind when it comes to your bottom line.

At the end of the day, it’s all about maximizing your revenue while maintaining the peace of mind that your business and investments are safe. During Tax Season more than ever, the opportunity is there and the time is right. Don’t let the downside of selling to subprime buyers stop you from reaping the profits! A solution like GoldStar GPS can help minimize your risk with automated reference checks up front, and on the back end has the ability to keep buyers current using invehicle payment reminders. Of course, you’ll also be able to find and recover assets when necessary. Say “yes” to more buyers with confidence this tax season and maximize your potential profit. Dave Meyer is the executive vice president of Spireon GoldStar GPS.

www.miada.us

1/3/17 9:36 AM

MI_0117.indd 15

1/3/17 9:36 AM

Stockwave puts my instincts into overdrive.

% 90

INCREASE

IN TIME

SAVINGS Tony Rammer Dealer Principal, Auto Kingdom Blaine, Minnesota

VISIT U

S AT N

Tony Rammer knew wholesale buying was critical to his

ADA 20

1737

# A faster path to success. Like every independent dealer,

BOOTH

TO LE BUY O ARN HOW TO N TH EVERY E MONEY TIME

dealership’s success. He also knew that finding profitable buys — searching his favorite auctions’ online listings and crunching the numbers on every car he considered — was taking a whopping 30 hours a week. Stockwave helped him gain back lost time and make more money. Now Tony sets up his search parameters, lets the software search and rank

See how easy it is to source cars like Tony!

cars by profit potential, and in just three hours he has better

stockwave.com/savetime 888-365-1032

cars than he ever found in 30.

MI_0117.indd 16

1/3/17 9:36 AM