NJ 06/17 by NIADA

D E C E M B E R 2 016

DEALER NEWS

S TAT E A F F I L I AT E

MAGA ZINE

N E W J E R S E Y I N D E P E N D E N T AU T O M O B I L E D E A L E R S A S S O C I AT I O N

J U N E / J U LY 2 0 17

ASSOCIATION NEWS

2017 WORLD AUTO AUCTIONEER CHAMPIONSHIP P A G E 16

DALLAS, TEXAS Permit No. 2079

PAID

PRSRT Standard U.S. Postage

W W W. N E WJ E R SE Y I A DA .O RG

INSIDE

06.....Facebook Marketing Key Performance Indicators 08...........Affiliate Members AUL and Autotrader Join Forces 10........................................NIADA Government Report 12......................Are Sales Rolling Out Your Front Door? 14...................................Managing Dealership Reviews 18........When Exceptions Overtake the Rules of Your Showroom

WHAT’S NEW NIADA.TV

Who is the latest world auto auctioneer champion? Watch the recap of the World Auto Auctioneer Championship, held at Manheim Pennsylvania, on NIADA.tv and find out!

ADVERTISERS INDEX

Auto Auction of New England ........................................... IBC Auto Use...................................................................................7 AutoZone .............................................................................. 14 Black Book................................................................................3 BMW Group Direct............................................................... IFC Manheim ................................................................................11 Manheim New York..................................................................5 Manheim Pennsylvania..........................................................13 NextGear Capital................................................................... 12 PassTime ................................................................................15 Protective ...............................................................................17 VAuto...................................................................9, Back Cover

OFFICE

For information on how to become a member, please contact Paula Frendel: 855.694.2324 or njiada.pfrendel@gmail.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 The New Jersey Dealer News 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 New Jersey Dealer News 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

Christy Haynes • christy@niada.com PRINTING Nieman Printing

2017 MEMBER DISCOUNT BOOK 2 0 1 6 M E M B E R D IS C O U N T B O O K $5,000 IN AUCTION DISCOUNTS

2016 M EM B ER D ISC OU N T B OOK BUY FEE ONE PER MONTH INER AUCTION 2016 $5,000 M EM$50 B D ISCDISCOUNTS OU N T B OOK Long IsLand

new Jersey

syracuse

$5,000 IN AUCTION DISCOUNTS

(TWO) $100 OFF BUY FEE / (TWO) $100 OFF SELL – PER TOTAL $400 FROM EACH AUCTION = TOTAL $1,600 $50 BUY FEEFEE ONE MONTH Long IFEE sLand new Jersey $50 BUY ONE PER MONTH

syracuse

(TWO) $100 OFF BUY FEE / (TWO) $100 OFF SELL FEE – TOTAL $400 FROM EACH AUCTION = TOTAL $1,600 Long IsLand$50 OFFnBUY ew Jersey syracuse BLOOMBERG AUTO AUCTION – (TWO) FEE (TWO) $50 OFF SELL FEE

(TWO) $100 OFF BUY FEE / (TWO) $100 OFF SELL FEE – TOTAL $400 FROM EACH AUCTION = TOTAL $1,600 BSC AMERICA, BEL AIR, MD – $50 OFF REGISTRATION BLOOMBERG AUTO AUCTION – (TWO) $50 OFF BUY FEE (TWO) $50 OFF SELL FEE

BLOOMBERG AUTO AUCTION – (TWO) $50 OFF BUY FEE (TWO) $50 OFF SELL FEE BSC AMERICA, BEL AIR, MD – $50 OFF REGISTRATION BUFFALO AUTO AUCTION – $100 OFF BUY FEE / $100 OFF SELL FEE

GARDEN T OFF REGISTRATION BSC AMERICA, BEL AIR, MD SP – $50 Auto Auction YO UR PR OF SP IT OT

GARDEN SPOT AUTO AUCTION – (FIVE) $50 OFF BUY FEE BUFFALO AUTO AUCTION – $100 OFF BUY FEE / $100 OFF SELL FEE

GARDEN SP T Auto Auction

YO UR PR OF SP IT OT

BUFFALO AUTO AUCTION – $100 OFF BUY FEE / $100 OFF SELL FEE MANHEIM ALBANY – $100– OFF BUY/ $100 GARDEN SPOT AUTO AUCTION (FIVE) $50 OFF SELL BUY FEE

GARDEN SP T Auto Auction

YO UR PR OF SP IT OT

GARDEN SPOT AUTO AUCTION – (FIVE) $50 OFF BUY FEE MANHEIM ALBANY $1007-DAY OFF BUY/ $100 SELL MANHEIM NEW JERSEY – 1–FREE POST SALE INSPECTION MANHEIM ALBANY – $100 OFF BUY/ $100 SELL MANHEIM NEW JERSEY –NEW 1 FREE 7-DAY POST SALE INSPECTION MANHEIM NEWBURGH, YORK – $100 OFF BUY/ $50 SELL MANHEIM NEW JERSEY – 1 FREE 7-DAY POST SALE INSPECTION MANHEIM NEWBURGH, NEW YORK$50 – $100 $50 SELL MANHEIM NEW YORK SKYLINE – (TWO) OFF OFF BUY BUY/ / (TWO) $50 OFF SELL MANHEIM NEWBURGH, NEW YORK – $100 OFF BUY/ $50 SELL MANHEIM NEW YORK SKYLINE – (TWO) – $50 OFFBUY/ BUY $100 / (TWO) $50 OFF SELL MANHEIM PENNSYLVANIA $100 SELL MANHEIM NEW YORK SKYLINE – (TWO) $50 OFF BUY / (TWO) $50 OFF SELL MANHEIMMANHEIM PHILADELPHIA – (TWO) $50 OFF BUY (TWO)SELL $50 OFF SELL PENNSYLVANIA – $100 BUY// $100

MANHEIM PENNSYLVANIA – $100 BUY/ $100 SELL MANHEIM PHILADELPHIA – (TWO) $50 OFF BUY / (TWO) $50 OFF SELL ROCHESTER CENTRAL AUTO AUCTION – $200 OFF BUY FEE; $200 OFF SELL FEE; ENTRY FEE ($35) MANHEIM PHILADELPHIA – (TWO) $50 OFF BUY / (TWO) $50 OFF SELL ROCHESTER CENTRAL AUTO AUCTION – $200 OFF BUY FEE; $200 OFF SELL FEE; ENTRY FEE ($35) ROCHESTER SYRACUSE AUTO AUCTION – ONE FREE BUY / ONE FREE SELL NO LIMIT ROCHESTER CENTRAL AUTO AUCTION – $200 OFF BUY FEE; $200 OFF SELL FEE; ENTRY FEE ($35) ROCHESTER AUCTION – ONE FREE BUY / ONE SELL NO LIMIT STATE SYRACUSE LINE AUTO AUTO AUCTION – 12 MONTHLY COUPONS FORFREE REGISTRATION

$5,000 in Auction Discounts! Buy and Sell Fees...SAME AS CASH! ROCHESTER SYRACUSE AUTO AUCTION – ONE FREE BUY / ONE FREE SELL NO LIMIT PLUS...$4,000 in Vendor Coupons! STATE LINE AUTO AUCTION – 12 MONTHLY COUPONS FOR REGISTRATION

$5,000 in Auction Discounts! Buy and Sell Fees...SAME AS CASH! STATE LINE AUTO AUCTION – 12 MONTHLY COUPONS FOR REGISTRATION PLUS...$4,000 in Vendor Coupons! $5,000 in Auction Discounts! Buy and Sell Fees...SAME AS CASH! PLUS...$4,000 in Vendor Coupons!

For complete membership information please visit vwww.newjerseyiada.org 4

DEALER NEWS June/July 2017

www.newjerseyiada.org

SOCIAL MEDIA BY KATHI KRUSE

TOP 10 FACEBOOK

MARKETING KPI’S Key Performance Indicators

Facebook marketing done right communicates your store’s core message and personality, attracts and engages your target customers, and converts fans into customers. Too often dealers jump onto Facebook without a plan or clear idea of what success really means for them. Most of us have experienced how planning improves our endeavors, and marketing is no exception. A solid social media strategy plan saves time, money and precious resources. It also puts the company in touch with target customers on a more meaningful level. Time spent on strategy planning is evident in the results. “Tactics without strategy is the noise before defeat.” - Sun Tzu In my everyday travels, I see a lot of dealers using the “trial and error” method of Facebook marketing. Example: “Let’s post this random picture of a vehicle for sale so everyone will see how fantastic it is!” The number one reason they use this tactic is because they’ve seen another dealer do it. Random pictures of cars have been posted by dealers throughout the country for years. Isn’t it time to hold up on that and do something unique? There’s nothing about benign vehicle photos and “sales jargon”that promises value to the customer. Now, if there was a story behind the image that told of a fantastic customer experience, then telling that story would bring you a big step closer to a quality post. Otherwise, it’s just noise, and noise is something we can all do with less of these days. The ability to recognize the difference between a random, useless post and a quality piece of content is rooted in strategy. Specific goals and their corresponding strategies make Facebook marketing click. What you post is governed by why you post. Defined within your social media strategy plan should be: • Goals you want to reach. • A timeframe to reach those goals. • A roadmap of how you’ll achieve goals. • Definitive metrics. Look for success markers along your Facebook marketing journey. Just like the maps app on your phone shows the best route to take toward your destination, key performance indicators guide you to what success looks like for your Facebook marketing. KPI’s give you a solid foundation from which to measure results.

DEALER NEWS June/July 2017

TOP 10 FACEBOOK MARKETING KPI’S Every social media strategy plan should outline the metrics you’ll analyze for best results. These are Kruse Control’s top 10 Key Performance Indicators we use with our clients: 1. Audience Growth • How quickly are your fans growing? • What are you doing to increase growth? • Are you setting growth goals? • Are you achieving those goals? 2. Audience Profile • Have you defined your target audience? • What type of audience are you building? • How close is the audience you’re building to your target audience? 3. Audience Engagement • Is your audience interacting with your content? • If so, how are they engaging (i.e. comments, likes, shares)? • If they’re not engaging, why not? • Are you responding to comments on posts? • Are you equipped to engage leads when they comment on posts? 4. Content Reach • How many people are seeing your content each week? • What are you doing to improve reach? • What’s the optimal time of day to reach fans/followers? • Are you getting “referral traffic” (website visits) from Facebook (especially blog posts)? • Is referral traffic being tracked for remarketing? 5. Engagement by Content Type • What types of content are getting the best results? • Have you tried different types of content that you haven’t before (example: live vs. recorded video)? • Are you prepared internally to produce that new type of content? • What organizational changes need to happen to produce content? 6. Leads • What is the click through rate to each vehicle display page or landing page? • What is the CTR from each social media channel? • Number of leads per landing page (how many filled out lead form)? • Number of clicks to landing page that did not fill out the lead form? • Paid vs Organic Leads (organic leads are the result of networking and relationship building)? 7. Conversions • What’s your conversion rate? How many leads converted on landing pages? • Number of “organic” leads that converted (leads earned, not paid for)? • Which landing pages had the highest conversions? 8. Response Rate & Quality • How quickly are you responding to comments and messages? Facebook grades your page for response time. • Is your lead form response time (follow up

to lead form inquiries) reasonable? • How effective are you at social customer service? Currently, 92.5 percent of brands fail to meet customer expectations on social media and these failures can have big implications. Bad social customer service isn’t just embarrassing. It’s bad for business: • 38 percent will feel negatively toward the brand without a response, and a full 60 percent will tweet about their negative experiences. • Two thirds of customers with poor customer experience reduce their spending with a brand. • 55 percent of Americans have switched brands due to poor customer service. Customers turn to social media when issues arise, expecting a response. Thirtythree percent prefer to contact brands using social media rather than the telephone. How equipped are you to embrace social media as a customer service channel? Any opportunity to hear customer feedback is a gift. 9. Sales Marketing’s job is to serve up leads. Conversions are tracked to determine if the message is resonating. Marketers, however, rarely track sales, because it’s a hand off of sorts. Other organizational processes come into play and many on both sides of the equation don’t bother communicating about sales results. As a company leader myself, I’ve always thought of marketing and sales holistically. Tracking marketing through to sales results will only improve both. 10. Negative Feedback • How much negative feedback have you received? • Do you know how much is to be expected (i.e. unfollows, hide posts, etc.)? • What is your process for dealing with negative Facebook reviews? Facebook, at this point, doesn’t offer even a rudimentary process for appealing a review. Your 4.8 stars can quickly become 2.0 with a few negative reviews, regardless of whether they’re real. Next Steps Examine your own Facebook marketing results using these top 10 KPI’s. If you haven’t yet determined your social media strategy, we’re here to help. There’s no sense in waiting. A solid plan with proven strategies takes the guesswork out of social media so you can engage more customers. 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.newjerseyiada.org

ACCELERATE

ASSOCIATION NEWS

BY GWC WARRANTY

3 COMPLIANCE PITFALLS FOR YOUR VSC PROGRAM The Solutions

You stand to lose a lot by not being compliant or trying to go about compliance on your own. Let’s take a look at potential pitfalls in your VSC program – places noncompliant actions can take place and what you can do to ensure it doesn’t happen on your watch. Your Process Federal regulations put a lot of scrutiny on how vehicle service contracts are marketed, presented and sold. Because of this, there is plenty that can go wrong, whether it’s intentional or not. Payment packing, selling a service contract on a vehicle with a pre-existing condition and more can put your dealership in a tight spot. The solution: Training. Don’t underestimate the value of a solid training program. It eliminates all these fears and lets your staff know any suspicious activity is unwelcome in your dealership.

www.newjerseyiada.org

Your Claims Handling If you have a service facility or work closely with one, the temptation might exist for a vehicle service contract to be a menu of problems a mechanic could diagnose, putting your dealership’s money, reputation or perhaps both in jeopardy. The solution: Random inspections. Randomly inspect the claims process of some smaller-value claims and send the message there are eyes on the process, even with lighter claims. Your Incentives What is in it for your employees when it comes to the success of your service contract program? It’s not their money on the line, after all. But to avoid the costly penalties that can come with non-compliance and lost profits as a result of high reserves, rewarding those who maximize the performance of your service contract program can go a long way. The solution: Monetary incentives. Think about a monetary reward for those who work to keep your loss ratios below a certain threshold. Letting them in on the overall success of a service contract program can help encourage ethical behavior and consistent selling practices.

JOIN TODAY! Member Benefits

There are so many benefits to membership with the NJIADA! With over $20,000 of savings on products and services, NJIADA and affiliate NIADA put money in your pocket! In addition, we’re here for you. We will help you stay in compliance, represent you with regulators and provide education to help make your business more successful. Learn more and join today at www.newjerseyiada.org.

June/July 2017 DEALER NEWS

PRODUCTS & SERVICES

SAFETY WATCH

AFFILIATE MEMBERS AUL AND AUTOTRADER JOIN FORCES

AUTOTRADER RAISES MONEY FOR NASCAR CHARITY

BY MARCUS DAME

Innovative Used Car Warranty Program

The evolution of the online to in-store car buying process doesn’t just apply to new cars. The digital space is filled with opportunities for dealers to provide additional and more efficient services to consumers. One area that has transformed recently is warranty programs, which add tremendous peace of mind, but have historically been prohibitive for dealers because of cost, especially for single rooftops. At Autotrader, a Cox Automotive company, we looked at ways to innovate and revolutionize the warranty program to be better for dealers and consumers. As a result, we recently partnered with HomeNet Automotive, F&I Express and AUL to launch a used car warranty program called the Autotrader Warranty Advantage Program. The Autotrader Warranty Advantage Program combines F&I workflows with a leading thirdparty automotive shopping website to drive more ready-to-buy online traffic to a specific dealership. This new program will have an incredible impact on dealers as the Autotrader Warranty Advantage Program is designed to give them total control and flexibility over their warranty programs. Dealers can confidently build trust and satisfaction with their customers from the beginning of the relationship. Autotrader’s partners include AUL, an industry leader in used car warranties, who will provide the insurance protection underwriting, and F&I Express, a well-known F&I workflow leader that built the platform powering the program at the VIN-level. There are a number of benefits the Autotrader Warranty Advantage Program offers that no other program does, including coverage that starts on the first day of purchase so dealers do not pay the warranty cost per unit until the vehicle is sold. This is very important for single rooftop independents who must manage cash flow tightly on a daily basis. The Autotrader Warranty Advantage Program takes away the burden for dealers of bearing the cost of the warranty coverage up front. Most other warranty programs are activated at the point of sale, which does not allow the dealership to influence the consumer while they are shopping online in the comfort of their home – the setting where the majority of consumers prefer to learn about protection

DEALER NEWS June/July 2017

USED CAR NEWS

$23,500 Raised Through Challenge

and finance products, according to the 2017 Cox Automotive car buyer journey study. With the Warranty Advantage Program, dealers can also differentiate their inventory from their competitors. It is the only program that allows dealers to merchandise at the VIN level on their Autotrader and Kelley Blue Book Vehicle Detail Pages. This online experience for the customer builds trust and peace of mind into the transaction and shopping experience before the dealership is even contacted. Additionally, there is an opportunity for greater revenue as the 2016 Autotrader CPO Study showed consumers are willing to pay a premium for cars backed with warranties and those thoroughly inspected. The Autotrader Warranty Advantage Program was designed to work well with vehicle service contracts by easing the conversation about F&I products between dealers and consumers and aligning the coverages and length of coverage with VSCs. According to the 2015 Autotrader Car Buyer of the Future study, while only 7 percent of dealers use VSCs, 78 percent of consumers say they are satisfied after purchasing a VSC. The Autotrader Warranty Advantage Program includes three coverage levels, all of which include powertrain coverage and 24-hour roadside assistance. Brakes and electric components are included in the second and third coverage levels, two areas that are frequently excluded from used car warranties. The first level of coverage is for 30 days/1,000 miles and is offered at $35 per unit, which is significantly less than the cost of other used car warranty programs. The second level is for 4 months/5,000 miles at $177 per unit and the third level is for 12 months/12,000 miles at $238 per unit. This revolutionary and innovative used car warranty program is a great new tool for dealers to build trust with their customers, increase customer satisfaction and loyalty, and create a new revenue stream. For more information, go to warrantyadvantageprogram.com. Existing Autotrader or Kelley Blue Book clients, please call 800-353-9350. For new clients, please call 877-627-9585. Marcus Dame is the senior director of product management for vehicle merchandising at Autotrader, a Cox Automotive company.

Autotrader’s recent head-to-head charity challenge #Speed4Need, in collaboration with Team Penske Monster Energy NASCAR Cup Series drivers Joey Logano and Brad Keselowski, raised a total of $23,500 benefiting the drivers’ non-profit foundations, the Joey Logano Foundation and Brad Keselowski’s Checkered Flag Foundation.

USING FACEBOOK AS THE SOLE PLATFORM FOR THIS SUPERCHARGED PROGRAM, THE DRIVERS UTILIZED THEIR PERSONAL PAGES, AS WELL AS TEAM PENSKE AND EACH OF THE FOUNDATION’S PAGES, TO INCREASE DONATIONS FROM FANS AND WORD-OF-MOUTH ABOUT THEIR RESPECTIVE CAUSES.

Launched at the beginning of the NASCAR season in early March, the #Speed4Need campaign featured Autotrader-sponsored drivers Joey Logano and Brad Keselowski competing against each other in a series of head-to-head speed challenges on Facebook to raise both awareness and money for their respective foundations. The campaign concluded on April 16, and after tallying the final donations, Logano won the friendly competition with $12,500 for his foundation, while Keselowski raised a formidable $11,000 for his foundation. Using Facebook as the sole platform for this supercharged program, the drivers utilized their personal pages, as well as Team Penske and each of the foundation’s pages, to increase donations from fans and wordof-mouth about their respective causes. Logano and Keselowski added to their overall fundraising tally by winning a series of challenge rounds as part of the campaign, and Autotrader contributed $500 to the winner of each challenge round.

www.newjerseyiada.org

June/July 2017 DEALER NEWS

WASHINGTON UPDATE BY SHAUN PETERSEN

NIADA GOVERNMENT REPORT Latest Government Issues and Activity NIADA is your voice in Washington D.C., advocating for independent dealers, the used vehicle industry and small business. Here’s an update on the latest news and NIADA efforts regarding legislative, regulatory, PAC and grass roots activities. Legislative The Financial CHOICE Act – the Republican replacement for the Dodd-Frank law that includes major changes to the Consumer Financial Protection Bureau – made it through the House Financial Services Committee on May 4 and has been sent on for consideration by the full House of Representatives. The current version of the bill, introduced April 26 by Rep. Jeb Hensarling (R-Texas) with seven cosponsors, would eliminate bailouts of so-called “too big to fail” banks, exempt well-capitalized financial institutions and community banks from certain regulations and reduce regulations overall, and increase penalties for financial fraud. Its biggest impact, though, would be felt by the CFPB, which would be drastically overhauled. To begin with, its name would be changed to the Consumer Law Enforcement Agency, and it would be funded through the regular congressional appropriations process – currently it’s funded automatically through the Federal Reserve – as well as subject to congressional oversight and expanded judicial review. The agency would lose its supervisory authority over financial institutions and its enforcement authority regarding unfair, deceptive and abusive acts and practices, among other restrictions to its authority. The bill would allow the CLEA’s director to be fired at will by the President, rather than only for cause as is currently the case. The bill would also void the CFPB’s controversial 2013 guidance on indirect auto lending, which claimed dealer discretion on interest rates creates a “significant risk” of unintentional disparate impact discrimination. Regulatory In April, the New York attorney general’s office announced settlement agreements with 104 auto dealerships in the state that were alleged to have sold vehicles with open recalls without disclosing those recalls. Attorney General Eric Schneiderman said in a statement the charges were based on checking dealership ads and identifying dealers who advertised vehicles with unrepaired recalls.

DEALER NEWS June/July 2017

According to the settlements, each dealer will pay a $1,000 fine and will be required to notify consumers of any existing and unrepaired recalls on their vehicles. Other terms include: •D ealers who advertise used vehicles online must include information to allow consumers to check the advertised vehicles for recalls, including NHTSA’s safercar.gov website. •A ds in print or other media must also disclose if the vehicle is subject to a safety recall. •A decal must be placed in the window of used cars with information allowing consumers to check their recall status, including safercar.gov and NHTSA’s mobile app. •T wo days prior to any sale, dealers must provide consumers with a copy of any recalled vehicle’s NHTSA recall status report and obtain a written acknowledgment from the consumer. •D ealers must send notices to customers who purchased vehicles from January 2016 to present that have safety recalls that are still unrepaired. Franchise dealers must also cover up to five days of a loaner car for consumers if their vehicle requires repairs that will take longer than one day. PAC In early May, our colleagues at the National Auto Auction Association held their annual Day on the Hill. Like the NIADA-PAC during the National Leadership Conference and Legislative Summit, NAAA’s event included a fundraiser for key members of Congress – Sen. Mike Crapo (R-Idaho) and Rep. Bob Latta (R-Ohio). In conjunction with those fundraisers, the NIADA-PAC fund contributed $2,495 to each of their campaigns. Sen. Crapo is the new chairman of the Senate Banking Committee, the committee of jurisdiction for all things related to the CFPB. He has been a proponent of reforming the CFPB and any bill proposing to make changes to the bureau will go through his committee. Rep. Latta is chairman of the House Energy and Commerce Committee’s Subcommittee on Consumer Protection. That subcommittee has jurisdiction over motor vehicle safety and recalls. Any recall-related legislation or initiatives goes through Chairman Latta’s subcommittee before going on to the main committee. The NIADA government affairs team has met with Sen. Crapo’s and Rep. Latta’s staffs on those important issues. The PAC fund also contributed $495 to Nevada Attorney General Adam Laxalt (R). Laxalt has been a friend of NIADA through the Republican Attorneys General Association. We reached out to him as part of the new battle we are facing against Nevada’s proposed overregulation of payment assurance devices. He is a strong ally of small businesses and independent dealers.

NIADA IMMEDIATELY MADE ATTEMPTS TO CONTACT THE BILL’S SPONSOR TO BEGIN DISCUSSIONS ABOUT THE BILL AND TO EDUCATE HIM ABOUT THE DEVICES AND THEIR USE. Grass Roots In February, NIADA got wind of a bill about to be introduced in the Nevada legislature that would ban payment assurance devices. NIADA immediately made attempts to contact the bill’s sponsor to begin discussions about the bill and to educate him about the devices and their use. Notwithstanding those attempts, the bill was formally introduced in Nevada’s Senate Commerce Committee. NIADA rallied the troops and coordinated a coalition of dealers, finance companies and device manufacturers – including PassTime and Spireon – to fight the legislation. I flew to Las Vegas to testify against the bill. After NIADA’s opposition testimony, the Senate committee agreed to amend the bill from an outright ban to one that would place significant regulations on the devices. But many of the requirements in the amended bill, which passed the Senate, are unworkable for creditors using the devices. The bill has now moved to the Nevada Assembly and has been assigned to the Assembly Transportation Committee. NIADA, working with its coalition and a retained lobbyist, met with members of that committee and other key Assembly leaders to oppose the bill’s provisions. I also appeared before the committee to testify against the bill. Our objective is for the Assembly to agree to our proposed changes or kill the bill entirely. Shaun Petersen is NIADA’s senior vice president of legal and government affairs.

www.newjerseyiada.org

PRODUCTS & SERVICES BY DENISE CAIAZZO

ARE SALES ROLLING OUT YOUR FRONT DOOR?

New Affiliate Member and Accessible Vehicles

There are 3.2 million adults with disabilities in New York State. They have special needs and requirements when purchasing a vehicle. Is your sales team capturing that business, or are you letting it roll right out your front door? New NYIADA/NJIADA affiliate member Bussani Mobility Team works with car dealerships to put people with physical disabilities safely in the driver’s seat. Carl Surface, a mobility specialist at Bussani Mobility, gave us a rundown of the accessible vehicles market. How does Bussani Mobility Team work with car dealerships? You never know when someone with a disability will stop by your dealership looking for help, so you need to be prepared in advance. We visit regularly with vehicle dealerships in the local area to give them a quick overview of how we can help them serve these customers. We talk about wheelchair conversions and modifications including hand controls, scooter lifts, and transfer seats. We provide guidance and information to the dealer they can pass along to their disabled customers. We typically also handle the vehicle modifications. We’re a behindthe-scenes partner, giving the dealership the ability to help people with disabilities regain the independence they may have lost because of an injury or illness. When you do that successfully, you often have a customer for life. What kinds of vehicles and driving equipment do you offer? We can modify most minivans on the market to accommodate an individual who needs to stay seated in their wheelchair while in the vehicle. This is done by lowering the entire floor of the minivan a minimum of 10 inches. It allows enough headroom for them to enter the vehicle through an automatically deployed ramp on the passenger side. We also have wheelchair and scooter lifts. They offer a substantial cost savings to the customer who can transfer from their wheelchair into the vehicle or who has a caregiver to assist them. The lifts are designed to be installed on many standard vehicles without extensive modifications. They accommodate just the wheelchair or scooter, and the individual must transfer to the vehicle before the wheelchair or scooter can be loaded with the lift. Finally, we offer a wide variety of driving aids. These devices allow a person who has limited use of their limbs to operate a motor vehicle safely. They range from something as simple as a steering knob to assist in turning the steering wheel, to hand controls that allow

DEALER NEWS June/July 2017

the individual to operate gas and brake with a single lever, to a fully electronic system that allows complete and safe control of the vehicle via a drive by wire joystick. What do you sell the most? Dealerships usually come to us needing scooter or wheelchair lifts, as well as transfer seats and driving controls. We can also assist if the customer needs a lowered floor conversion, which can be a minivan, a fullsize van or an SUV. Does Bussani Mobility do the adaptations to the vehicles or do you send them out? The lowered floor conversions are done by manufacturers in the Midwest on an assembly line using the referring dealer’s inventory. But the wheelchair lifts, transfer seats and driving aids are all taken care of in one of our three full-service automotive shops (two on Long Island and one in Westchester). Our technicians are all factory trained. What’s the price range for wheelchair accessible vehicles? The typical cost of a wheelchair/scooter lift ranges from $1,995-3,800 and the cost of a transfer seat is $9,300-$9,700. Basic hand controls are around $1,300-$2,700. Generally, for a lowered floor minivan, the rule of thumb is to take the cost of the minivan and add about $25,000 and up to it. Financing and funding sources are available for individuals who qualify. How does the car dealership make money? There are two options: Either we provide a discount and they mark up the product for the final sale, or we offer a referral fee. The next time you’re face to face with a customer with a disability, you’ll have a resource to turn to. Whether they’re a senior citizen, a Millennial, a veteran, or a parent who needs to transport a disabled child, you’ll have a basic knowledge of the options for accessible vehicles. To learn more about how you can grab a piece of the accessible vehicles market, visit www.BussaniMobility.com, call 855-418-4252 or stop by one of Bussani Mobility Team’s three locations. www.newjerseyiada.org

MANAGEMENT MATTERS BY NEXTGEAR CAPITAL

MANAGING DEALERSHIP REVIEWS

Best Practices for Your Customer’s Digital Experience

Encouraging a car buyer to shop at a particular dealership is no longer just a matter of simply being the closest dealership. For today’s customer, the car buying experience begins online. According to a study from Autotrader and Kelley Blue Book, car buyers spent 60 percent of their time online in the vehicle purchasing process. The time to influence where a customer shops begins with a dealership’s digital presence, and when a customer is deciding on a dealership to visit they are bound to run across a number of dealership reviews. Feedback should always be appreciated, and review sites make earning dealership feedback easier than ever. In an industry where the digital experience can make or break a potential customer’s decision to purchase at a location, it’s important to monitor and respond to dealership reviews. Take the below best practices into

DEALER NEWS June/July 2017

consideration to ensure your dealership’s reviews encourage, and don’t discourage, potential customers from visiting your lot. Monitor reviews. Take note of the review sites where your dealership has earned reviews. What are customers saying about the dealership? Are there any issues mentioned in the dealership reviews that can be addressed? Every dealer and dealership will have to decide how frequently they monitor and respond to reviews. Find a cadence that works best for the team member in charge of monitoring and responding to reviews. Comment on reviews, both good and bad. Every customer leaves a dealership either satisfied or dissatisfied with their experience. For the customers that leave positive dealership reviews, make sure to thank them for their feedback. They took the time to share their positive purchasing experience with the rest of the digital world. While it might be tempting to just ignore negative dealership reviews or tell the reviewer why their opinion is misguided, it will better serve the dealership if the response asks to reconcile the negative experience with the reviewer. Encourage feedback. Feedback can give dealers an idea of what they need to do to improve service for their customers. Be willing to ask customers if

they would like to contribute a dealership review after their purchase. Their feedback can lead to valuable insights on ways to improve the dealership experience. Dealerships that ask for and implement feedback are more likely to be in tune with the wants and needs of their customers. Though dealership reviews have the potential to influence a potential customer’s visit, when managed correctly, those reviews can bring out the best qualities of a dealership, provide insight on dealership processes that could be improved and encourage customers to visit and purchase.

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PRODUCTS AND SERVICES

PROTECTIVE ASSET PROTECTION LAUNCHES PROGRAM New Higher Mileage Service Contract Program

Protective Asset Protection has launched its new Protective Auto Care Plan program. This new service contract program is focused on providing a service contract solution that meets the needs of higher mileage vehicles. The Protective Auto Care Plan provides coverage for vehicles up to 200,000 miles, with numerous coverage plans and deductible options, allowing dealerships to better meet the needs of pre-owned auto buyers. Additionally, the program provides terms to support late model vehicles and “wrap” plans to add coverage to existing warranties. The Auto Care Plan includes other benefits such as rental car reimbursement and emergency roadside service.

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“We worked closely with dealers and independent agents, in addition to conducting research to develop a plan tailored to the needs of higher mileage vehicles. The Protective Auto Care Plan is the result of these efforts and we feel this is the service contract program that will meet the needs of the industry today and into the future,” said Protective Asset Protection vice president for independent auto sales Mark Edmundson. The new Protective Auto Care Plan provides dealerships with an opportunity to provide greater peace of mind for car buyers, while point-of-purchase and digital materials are available to help inform customers of the program’s value. Protective Asset Protection senior vice president for distribution Rick Kurtz said, “With the average age of vehicles on the road remaining high and the projected growth of pre-owned inventories, we see this program serving an important role in dealerships’ F&I offering.” About Protective Asset Protection Protective Asset Protection provides vehicle protection plans, GAP, credit insurance, training and other F&I services through vehicle dealerships. Protective Asset Protection has been serving dealers for 55 years and currently provides products and services to automobile,

marine, RV and powersports dealers. Protective Asset Protection is part of the financial services holding company, Protective Life Corporation. For more information about Protective Asset Protection call 800-323-5771 or visit www.protectiveassetprotection.com.

June/July 2017 DEALER NEWS

AUCTION NEWS

A TRIPLE CROWN Andy White Completes His Set of Major Titles With a Victory at the 2017 World Auto Auctioneers Championship

Andy White has now officially done it all as an auctioneer. White joined an ultra-exclusive club when he claimed the top honor at the 2017 World Auto Auctioneers Championship on May 12 at Manheim Pennsylvania. With that world title, White, from Ashland, Ohio, joined Jeff Stokes as the only auctioneers to win all three of the industry’s major competitions. Last year, White won the World Livestock Auctioneer Championship, and he won the International Auctioneer Championship in 2013. Stokes won his WAAC championship in 1993. “My wife Megan and I have got three beautiful boys at home,” White said as he accepted his trophy and the $5,000 prize. “When I started to chase this, I said, ‘You know what? I want a ring for every one of my boys.’ And I did it.” White said he was inspired by the quality of the competition, which included more than 100 competitors in the auctioneer, ringman and team categories. “Auctioneering is a team sport and I am so fortunate to be surrounded by the greatest group of professionals our industry has to offer,” he said. “One of the lessons my parents instilled in me was you’re only as good as the people you surround yourself with. And we’ve done that. It was an emotional roller coaster today.” Dallas Massey of Starkville, Miss., was named the world champion ringman, while auctioneer Woody Woodruff of Shelbyville, Tenn., and ringman Ben Gunter of South Side, Ala., triumphed in the team competition. It was an emotional victory for Woodruff, who has been working with Gunter – the 2000 world champion ringman – for 15 years. “He’s like a second dad to me,” Woodruff said, his voice as he stood next to Gunter on the awards stand. “When I was 21 my dad went to a car sale with me, and … he told Ben, ‘I want you to take him on the road and turn him into an auctioneer.’ “To stand here with this guy, you have no idea how much it means. To do this with him is a huge, huge honor.”

DEALER NEWS June/July 2017

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! E R E H S IT’

THE HIGHER C S V E G A E L I M 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 S HA 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.

MANAGEMENT GAMEPLAN BY SCOTT BERGERON

The term showroom control has been around for years, and it exists for good reason. For example, on a busy Saturday when deals are happening left and right, it’s easy to lose control and start making exceptions and, as a result, mistakes. Many of us have been taught the rules of the road. But how many times have we taught the rules of our dealership, and our showroom? Why do they exist? What happens when they aren’t followed?

customer experience and the profitability of a dealership, as well as contribute to the lackluster reputation of our industry. My wife and I bought an SUV last month. As usual, it wasn’t from a salesperson I knew, although I’d purchased from the dealership 10 years before and had actually hired several of their top brass in the 1990s. It was a bigbox store. The salesperson was a “veteran,” having been there six years. Even though I’ve been in the business for close to 30 years, and can get a quick and easy fleet deal, I enjoy seeing how the retail side of dealerships is progressing in the eyes of a retail customer. Specifically, I like to see if we’re improving our reputation or holding onto our long held “traditions.” What struck me most about our visit was it was way too impersonal for either of us to quickly “fall in love” with our new car. Sure, we liked the salesperson, and he did a great job building rapport, but we were in the showroom cubicle for at least an hour

When exceptions to the rules overtake the rules themselves, what do you do to get them back on track? Start by identifying them, and the process it takes to make sure they’re being followed consistently. Recently the Academy Awards had one of their biggest screw-ups ever – announcing the wrong Best Picture winner to over 50 million viewers. The reasons it happened were simple: Details were overlooked and there were distractions. While most of us won’t suffer a worldwide embarrassment and lose all credibility, our industry does when missed details and distractions start adding up. It can ruin the

searching inventory on the computer since they had at least 100 in stock. Getting a proper walkaround and sitting in a car, let alone driving it, didn’t happen for well over an hour and a half. Six and a half hours later we took delivery. It was a snowy Thursday in Denver with no customers and I had a trade. I will give them an hour off since it took that long to get my fleet price and negotiate on the trade. They were all very nice and had a really nice delivery person, but over five hours if you take out the trade/negotiations?! I had helped family friend Patricia buy from another dealership only two months

WHEN EXCEPTIONS OVERTAKE THE RULES OF YOUR SHOWROOM How to Get Back on Track

DEALER NEWS June/July 2017

earlier. They were a local dealership, with an awesome reputation, and the experience was incredible. They didn’t miss a beat. Every “I” was dotted and every “T” crossed, and she was in and out in just a couple of hours. As complicated as some like to make it, showroom control isn’t rocket science. A deal is made up of a lot of little pieces, and if those pieces aren’t spelled out time is lost and so are deals. With defined rules everyone knows, business can flow through quickly. In my friend’s case, her salesperson and dealership had every process done from start to finish with no room for mess ups. Her sales rep had only been in the business for six months. She worked through a sales manager but also had a “modified four square” as well. The sales rep didn’t have a finance person, but sold every aftermarket and finance product I’d ever seen, and did a great job of it, even though she was fairly inexperienced. My friend bought a warranty, even though it was a certified used car. It made sense, and her salesperson took the time to build the value. Pat is the happiest customer and is still talking up her great deal and how nice and respectful they all were. She still tells me how much she appreciates me walking her through the process and helping her get such a great deal. Coincidentally, it was a one price store, and I didn’t get her a penny off. Her deal was quick, easy, and was profitable for the dealership. My six-hour deal included recopied state documents, and a credit app that was virtually impossible for all of us to read. We kept taking pictures of the application, just so we could blow it up on our phones to see what they really needed. When we got to the finance manager, he didn’t even attempt to sell us anything, and immediately slashed his warranty price because, in his words, “You’re from the business so I won’t try to sell you anything. I’ll just give you the warranty at cost plus $100.” I didn’t buy it. It might have been a good deal, but he never showed me what it included other than a “6-year, 100k” and an internal price sheet. In our business, it’s all about the details. In key ways, it’s like football. When a team executes on its game plan consistently, touchdowns happen. When it doesn’t, interceptions leading to an opponent’s touchdown can result. That’s a 14-point swing. In your market, the difference in the details can mean finishing at the top of the heap, or struggling to make payroll and keep your franchise or lease. Don’t let the little things make or break your store. Stay on the details and finish strong. 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