DEALER
INSIGHT
THE OFFICIAL MAGA ZINE OF NEW MEXICO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
J U LY/A U G U S T 2 0 1 8
THE RIGHT
WAY T
GET MORE MILLENNIALS DO IT RIGHT AND YOU’RE CAPITALIZING ON A DEMOGRAPHIC WITH LOADS OF DISCRETIONARY INCOME. | PAGE 12|
DALLAS, TEXAS Permit No. 2079
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INSIDE
THE OFFICIAL MAGAZINE OF NEW MEXICO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
DEALER
INSIGHT
05.................................................. Dealer Inspection Services 07................................................NMIADA Expo & Convention 08.................................................. NMIADA Dealer Education 10............................................................................Tax Reform 12...............................The Right Way to Get More Millennials 13......................................Proposed Amendments to Bylaws
WHAT’S NEW
National Policy Conference Dates Announced The 2018 National Policy Conference will be held September 24-26 at the Ritz-Carlton Pentagon City. Make plans now to join NIADA in Washington, D.C. as we meet legislators face to face to make your voice heard! Stay tuned for more details.
ADVERTISERS INDEX
Alliance Inspection ................................................................7 AmTrust Financial................................................................. IFC Lobel Financial..........................................................................3 Manheim................................................................................ 11 NextGear Capital................................................................... 12 VAuto .......................................................................Back Cover
OFFICE
New Mexico Independent Automobile Dealers Association 604 Chama NE • Albuquerque, NM 87108 Phone: 505.232.0809 • Fax: 505.232.0810 email:marc@nmiada.com website: www.nmiada.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. NM Dealer Insight is published bimonthly by the National Independent Automobile Dealers Association Services Corporation. 2521 Brown Blvd., Arlington, TX 76006-5203. 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 NMIADA or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2018 by NIADA Services, Inc.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com
ASSOCIATION NEWS
MEET THE NMIADA TITLE STAFF
Theresa and Jessica
Theresa Garcia Theresa Garcia is manager of our title division. She is a native New Mexican and has 11 years of title experience, including managing the MVD’s busiest office. Theresa has expanded our expertise, and we look forward to her contributions to the growth and progress of the NMIADA team. If you have any tough title problems, call Theresa. Jessica Ukastine Jessica Ukastine joined us in 2016 after several years as a lead agent for MVD Express. A lifelong Albuquerque resident, Jessica earned an associate’s degree in Liberal Arts in 2002. Jessica is among our hardest working teammates. Call Jessica and let her explain how we serve and protect dealers in the titling process. Our title division offers title pick-up and delivery, 24-hour turn around, and member discounts. Call us at 505-232-0809 to learn more.
BOARD MEMBERS
CHAIRMAN
James Santistevan Zia Auto Wholesalers LLC 4913 Menaul Blvd NE Albuquerque, NM 87110 (505) 889-9653 ziawhsl@cs.com
PRESIDENT
Christy Haynes • christy@niada.com PRINTING
Nieman Printing
July/August 2018
www.nmiada.com
Victor E. Saenz 604 Chama St NE Albuquerque NM 87108 505-232-0809
DEALER BOARD MEMBERS
VICE PRESIDENT
James Schrimer The Car Store, Inc. 1650 N. Valley Las Cruces, NM 88007 (505) 524-2283 thecarstorelc@gmail.com
Aaron Flores A-Star Motors LLC 5700 Menaul Blvd NE Albuquerque, NM 87110 (505) 503-6846 aaron@astarmotors.com
DEALER INSIGHT
OPERATIONS MANAGER
Thomas Hawkins AutoMax Farmington 5210 E Main St Farmington, NM 87402 (505) 327-0500 thomas@4automax.com
TREASURER
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Marc Powell marc@nmiada.com
Rob Martinez ABQ Auto Deals, LLC 169 Griegos NW Albuquerque, NM 87107 (505) 554-2428 rob@abqautodeals.com Luis Soto Sun City Motors 8504 Central Ave SE Albuquerque, NM 87108 (505) 256-1200 suncitymotors@yahoo.com
MAGAZINE LAYOUT
EXECUTIVE DIRECTOR
Rodger Barkoff Affordable Auto Sales 4525 Lomas Blvd NE Albuquerque, NM 87110 (505) 266-2886
ASSOCIATE BOARD
MEMBERS
Vanesa Alarid (Board Advisor) Po Box 36778 Albuquerque, NM 87176 Maxine Vega Manheim 3411 Broadway Se Albuquerque, NM 87105 (505) 242-9191
Mike Godin Godin Dealer Services PO Box 67440 Albuquerque, NM 87193 (505) 710-7295 mike@godindealerservices.com
Dealer Inspection Services Demanding Dealers Demand DIS Best Inspectors + Best Process + Best Technology = Bulletproof Inspections Experienced Experts.
Our iCar Certified Master Painters have decades of experience in
the automotive paint and body industry, with keen eyes and good judgement. With over 25,000 inspections under our belt, our inspections have stood the test of time. Never distracted, all we do is inspections.
Proven Process Technology.
Protecting your business motivated us to create best-
in-class process utilizing cutting edge technology to ensure that every inspection is done the same way, in the same order, and with the same attention to detail. This detail includes 40 photographs of each vehicle, paint meter readings, and notes on each vehicle.
Proprietary Software.
Guarantees our disciplined approach, and allows for electronic
storage of every inspection – available to dealers at any time.
Mobile Service. Our inspectors come to your lot, at a time that works for YOU. No more taking on the risks of having your vehicles leave the lot.
Dealers Serving Dealers.
As an arm of the NMIADA, the inspection is only the first step. We also help you get the 6 percent Prior Damage Disclosure Affidavit done and ensure your dealership is in compliance with New Mexico law. We are always on your side, and all profits go back to the dealer community – funding scholarships, education, lobbying and events for dealers.
Call 505-232-0809 for more info. Call 505-259-8912 for appointments. www.nmiada.com July/August 2018
DEALER INSIGHT
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SAFETY WATCH
CHRYSLER TELLS ALMOST 5 MILLION DRIVERS NOT TO USE CRUISE
Defect Could Prevent System from Disengaging
Chrysler is recalling 4,846,885 2014-18 Dodge Journey, Charger and Durango, RAM 2500, 3500, 3500 Cab Chassis (more than 10,000 lb.), 4500 Cab Chassis and 5500 Cab Chassis, Jeep Cherokee and Grand Cherokee and Chrysler 300, 201419 RAM 1500, 2015-18 Dodge Challenger, 2015-17 Chrysler 200, 2016-18 RAM 3500 Cab Chassis (less than 10,000 lb.), 2017-18 Chrysler Pacifica and 2018 Jeep Wrangler vehicles.
THESE VEHICLES ARE BEING RECALLED TO ADDRESS A DEFECT THAT COULD PREVENT THE CRUISE CONTROL SYSTEM FROM DISENGAGING. These vehicles are being recalled to address a defect that could prevent the cruise control system from disengaging. If, when using cruise control, there is a short circuit within the vehicle's wiring, the driver may not be able to shut off the cruise control either by depressing the brake pedal or manually turning the system off once it has been engaged, resulting in either the vehicle maintaining its current speed or possibly accelerating. Chrysler will notify owners, and dealers will inspect the software, and perform a software flash on the engine or powertrain control module, free of charge. Owners are advised to stop using cruise control until the software update has been performed. In the event that cruise control cannot be disengaged while driving, owners should firmly and steadily apply the brakes and shift the transmission to neutral, placing the vehicle in park once it has stopped.
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www.nmiada.com
NMIADA
Save the Date
2018 Annual NMIADA Expo & Convention Thursday, September 27, 2018, 8:00am-5:00pm
The NMIADA would like to welcome our new members as well as acknowledge our renewing dealers. High Quality Auto Wholesale, LLC
PBR Auto Sales, LLC
JC Auto Center
Roswell Cars
Intrigue Automotive, LCC
Arian Auto Sales
McCall and Son Motorcycles
Fresh Motors
Aria Auto Sales
Grants Auto Sales, Inc
Dream Cars ABQ. COM
J&M Discount Towing
DHD Sales and Rentals, LLC
Kay’s RV, LLC
D 7 K Motors, LLC El Primo Auto Sales, LLC
Out West Auto Corral, LLC
R & D Auto Sales, LCC
Doral Motors
Zia Motors
Isleta Resort and Casino 11000 Broadway SE, Albuquerque, NM 87105 Continuing Education will be offered. If your most recent Continuing Education Certificate is dated BEFORE June 30, 2017, you MUST take Continuing Education!
Register online now at www.NMIADA.com Take advantage of the “Early Bird” price for Continuing Education & Membership Special: $495 before August 15. Expo only pass: $75 (member) or $90 (non-member) Join us on the eve of the convention (Wed., September 26) for a mixer with sponsors and the NMIADA board members for an evening of bowling and beverages.
For more information call us at 505-232-0809.
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ASSOCIATION NEWS | By NMIADA Staff
NMIADA DEALER EDUCATION REPORT
September 2017-March 2018
Overview NMIADA has been doing independent automobile dealer education since its inception in 1962, and in partnership with the New Mexico MVD since the passage of formal education requirements. Education is at the core of NMIADA’s mission to serve, share and support the independent automobile industry. It is a duty we undertake with seriousness of purpose. This report summarizes the progam results and changes between September 15, 2017, and March 15, 2018. In Fall 2017, the board of directors undertook a strategic planning process to identify areas in which NMIADA could better serve our industry, consumers and partners. The result was a comprehensive two-year strategic plan to expand and improve our services and products, especially in the education arena. Feedback from dealers and the Dealer Licensing Bureau regarding our training program drove a complete overhaul, resulting in a re-organized and re-focused approach to dealer education with an expanded schedule. Investing in dealer education has required significant investments in technology, facilities and personnel to achieve our aggressive plan. Thus, NMIADA expanded its staff in March 2018 to include an education and communications specialist to drive implementation. We intend to add a director of education and communications in the coming months. With our expanded staff and aggressive program, we hope to better assist dealers in protecting consumers, thus improving the reputation and success of our industry. Our education approach is now focused on three primary areas: compliance, operations and marketing. Each area has specific lesson plans tailored to the needs of both pre-licensing and continuing education students. Of the three areas, compliance is the foundation. The plethora of federal, state and local law, rules and regulations make the automobile industry particularly complicated among other small businesses. The majority of New Mexico’s independent automobile dealers are small businesses, and they require significant support to properly comply with the often-changing consumer protection requirements. How dealers operate is key to both compliance and long term business success, and our goal is to teach best practices in this arena. Marketing and branding is particularly challenging for small businesses. We seek to assist dealers in utilizing cutting edge methodology and technology to compete in a market environment dominated by national franchise brands.
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EDUCATION PROGRAM CHANGES Expanded Schedule and Capacity Continuing education was historically offered once a year during the annual convention, with video makeup sessions for those who could not attend. At the request of members and the Dealer License Bureau, continuing education is now offered quarterly, including winter, spring and summer dealer conferences along with the fall annual convention. NMIADA provided continuing education training to 189 dealers at the annual convention in October, to 83 dealers at the winter conference in January, and to 36 dealers at the spring conference in March. A summer conference will be held in July and the annual convention will be held September 27, 2018. Despite the significant additional cost of the added training, the cost of continuing education for the conferences has remained stable over the period. Pre-licensing education opportunities have been expanded from 11 to 12 times per year and are scheduled on the second Tuesday of each month. In addition, NMIADA has invested in a major renovation of its facility to increase education capacity, technology and setting. As a result, PLE class size has increased by 50 percent, from 10 participants to 15 participants per month. Over the past six months, NMIADA provided training to 65 independent dealer candidates. To better reflect the actual investments of the small class size, ongoing support features of our new PLE program, facilities and personnel, the price for PLE was set at $595. Revised Continuing Education Program New Mexico law requires independent dealers complete four hours of training every two years to renew their dealer license. NMIADA’s revised education program balances the importance of each area of focus, with two and a half hours focused on compliance training, one hour focused on operations training and half an hour on marketing and brand development. We invite representatives from the N.M. attorney general’s office and the Dealer License Bureau to speak at each event, creating dialog between dealers and the state. The rollout of this new approach has been well received. One CE participant commented it was the best continuing education program she had attended in over 30 years in the industry. Compliance training consists of a focused and detailed review of federal and state requiremenets, including privacy, TILA, IRS reporting, OFAC reporting, recalls, buyer’s guides, excise and GRT taxes, prior damage disclosure, 15 day/500 mile warranty, and goodwill repairs. After identifying that very few dealers utilized a deal checklist to ensure compliance, the NMIADA developed a model checklist that is the centerpiece for compliance training. Development of the model checklist included input from industry leaders and the DLB.
www.nmiada.com
THE MODEL CHECKLIST IS USED AS THE TEMPL ATE FOR REVIEWING EVERY SINGLE FORM REQUIRED TO MEET COMPLIANCE REQUIREMENTS DURING THE TRAINING. The model checklist is used as the template for reviewing every single form required to meet compliance requirements during the training. The form-by-form approach allows dealers to ask questions about details on the forms and best practices to ensure full disclosure and protections for consumers. The checklist, training PowerPoint presentation, relevant federal and state statutes and regulations, sample documents and forms, and other useful documentation is provided to each contintuing education participant on a dedicated thumb drive, along with paper copies. This thumb drive is then available as a complete resource for them to train their own employees and to utilize when compliance and operations questions arise. Revised Pre-Licensing Education Program New Mexico law requires completion of eight hours of training prior to granting an automobile dealers license. NMIADA’s revised program includes four hours of compliance training, explaining in detail all applicable federal and state laws and regulations regarding the industry. It also includes two and a half hours of initial operational training, including entity formation and registration, bonding, insurance, accounting, budgeting, fleet management, financing options and pitfalls, model checklist, and forms training. Additionally, it includes one and a half hours on brand development and marketing for start-ups. Subjects range from defining a market to logo development, proper signage and development of initial marketing plans. As in the continuing education program, the checklist, training PowerPoint presentation, relevant federal and state statutes and regulations, instructions for applying for a dealer license, sample documents and forms, and other useful documentation is provided to each participant on a dedicated thumb drive, along with paper copies. This thumb drive is then available as a complete resource for them to
train their own employees and to utilize when compliance and operations questions arise. The pre-licensing education fee also includes individualized support to prospective dealers in preparing dealer license applications. NMIADA supports 4-6 new dealers a month in their applications, evaluating any issues and assisting in proper documentation. Support Services to New Mexico Agencies In addition to its class offerings, NMIADA provided the following services to state agencies under the education program. • C ommunication with independent dealer community: NMIADA routinely supports communications at the request of state agencies with email campaigns, BOLOs and important policy and regulation changes. With 1,800 on our email list, active Facebook page and daily contact with 5070 people, NMIADA acts as an important participant in disseminating information on behalf of the state. • Responding to consumer complaints: NMIADA fields an average of five consumer complaints about dealers each month, with an eye to de-escalating the situation and supporting rapid and fair settlement of any disagreements prior to involving state agencies and the courts. • Dealer licensing support: NMIADA assists in resolving a number of licensing issues and provides support and technical assistance to dealers during their dealer
licensing process. We field at least a dozen calls a week with a range of technical questions, policy issues, and clarifications. Without our partnership, all these calls would go directly to the DLB. • D ealer regulatory advice: When dealers have a regulatory issue, NMIADA provides business compliance advice for them to make appropriate business decisions regarding the compliance issue. The executive director meets with each dealer, carefully reviewing the document file and identifying potential fair resolutions based on the situation. This approach often leads to efficient, consumer-centric resolutions – reducing agency time investment for resolution. NMIADA handled 2-3 cases per month during the term. • S upporting law enforcement: Illegal car dealers cheat consumers, steal tax revenues and support other criminal behavior. NMIADA worked closely over the term with MVD to identify and report popular locations of curbstoned vehicles and details and suspicious dealer purchases by transmitting tips received from the dealer community. NMIADA has created and supported an education campaign that includes boosted Facebook posts, email campaigns, weekly discussions at the Manheim auction, banner advertising for both Manheim and IAA auction houses, and extensive coverage in both PLE and CE training. We continue to expand cooperation in this area, and believe the program has seen progress in reducing the number of curbstoners.
The online edition of Used Car Dealer has an all-new look, with a flip book that’s easier to read and navigate and simpler to share on all of your social media.
And it includes something extra
Expanded Platforms As part of our continued investment in the dealer education program, NMIADA has recently launched a mobile phone application that will serve as a platform for dealer education resources. We are currently developing 10-15 minute tutorials on critical compliance and operational best practices to be available via mobile and Internet as well as in person. Our education and communications specialist travels to dealers, who often cannot leave the shop, giving training on the model checklist, compliance and tutorials. The next six months will see expansion of the number and accessiblity of tutorials and regional training opportunities outside of the Albuquerque area. Summary The last six months have seen the development and initial implementation of a strengthened dealer education program. NMIADA will constantly work to improve our ability to assist dealer success, consumer protection, and industry improvement via the Dealer Education Program. We are grateful for the effective working relationship with state agencies and hope to continue to build on progress to date. We are working to produce legislation for the 2019 legislative session that will model laws in states that have successfully shut down illegal dealers. We seek the input, advice and support of all stakeholders in the independent automobile industry as we expand our educational offerings in the coming months and work to improve the regulatory environment.
– exclusive online-only content, a valuable resource that gives you more information, strategies, techniques and ideas to help you take your dealership to the next level.
The Right Tool
AmTrust Financial’s Jackie Banks shows you how a certified pre-owned program, in addition to its many other benefits, can help unlock the true value of reinsurance, a “hidden gem” that can maximize insurance profits, not to mention investment income and possible tax advantages. Visit www.usedcardealermagazine.com each month for the latest exclusive online content.
Visit www.usedcardealermagazine.com each month for the latest exclusive online content. www.nmiada.com July/August 2018
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REGULATORY NEWS
| By Dave Wiggins
TAX REFORM
The Answers to Your Questions
Overview The recent tax reform legislation is the largest tax overhaul since 1986. While there are some elements of simplification – increasing the standard deduction, removing the alternative minimum tax for businesses, etc. – the law as passed is quite complex. It will take years for the IRS to issue rulings and interpretations, and for tax court rulings to settle disputes and offer clarity. The change most dealers are immediately curious about is the treatment of passthrough entity income (e.g., income flowing to an owner’s personal return from an S corporation or LLC). Under the new law, the top personal tax rate was reduced from 39.6 percent to 37 percent. Dealerships structured as pass-through entities are eligible for an additional 20 percent deduction against income, reducing the effective tax rate to 29.6 percent. The following discussion includes answers to many of the questions dealers are asking about the new tax law. Is interest still deductible? For businesses with less than $25 million in average annual gross receipts, interest will continue to be deductible in full. For those with over $25 million in gross receipts, nonfloor plan interest is limited to 30 percent of net income before interest and depreciation. Floor plan interest is deductible in full. Since the deduction limitation is a function of income, the limitation is most likely to apply in years in which profitability is down. If you have significant non-floor plan interest, it may be worthwhile to analyze whether you expect the interest limitation to apply for 2018 and consider whether any changes should be made to your existing capital structure in response to the limitation. Interest – other than floor plan interest – exceeding the limitation amount can be carried forward to future years. If you elect to do so, the limitation would not apply to interest incurred in real property development or rental real estate operations. As an aside, the floor plan expense carve out in the law was very valuable because floor plan interest is not netted with floor plan assistance received from the factory for tax purposes. Had the limitation applied to floor plan interest, it is possible a dealership could break even or lose money for the year yet still owe significant tax. Is full expensing allowed for fixed asset purchases? Bonus depreciation has been enhanced with a full deduction of the cost of most new or used property acquired after September 27, 2017. Real estate will generally not be eligible for the bonus depreciation, but certain real estate improvements will qualify. Unfortunately, when dealers were allowed to exclude floor plan interest from
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the 30 percent interest limitation, the service included a related provision stating businesses that use the floor plan interest exclusion are not eligible to use bonus depreciation for the year. Thus, this item will have to be determined each year. All fixed asset acquisitions made between September 27, 2017, and December 31, 2017, will qualify for bonus depreciation because the interest limitation doesn’t apply until 2018. Are entertainment expenses affected? In the past, business-related entertainment expenses were 50 percent deductible. Under the new law, the cost of business-related entertainment is generally not deductible. Baseball tickets given to employees or customers, luxury boxes at stadiums, etc., are now non-deductible. Business-related meals continue to be deductible at 50 percent. Business meals on site for the employer’s convenience (including Saturday salesperson lunches, etc.) are 50 percent fully deductible. Holiday parties remain 100 percent deductible. I own an S corporation. What will my tax rate be? The effective rate on your pass-through income will vary each year based on your circumstances. Instead of establishing a pass-through tax rate (like was the case with C corporations), Congress settled on passthrough entities being taxed at ordinary rates but with a deduction of up to 20 percent of qualifying income. Determining what “qualifying income” is will be tricky enough, but Congress added several limitations on the deduction as well. They include a limitation of the greater of: • 50 percent of the W-2 wages paid by the business, or • The sum of 25 percent of the W-2 wages paid plus 2.5 percent of the unadjusted basis of all depreciable property used in the qualified business. In the end, the blended federal tax rate for many dealerships with pass-through income will end up at about 29.6 percent. Because the C corporation rate is lowered to 21 percent, should a dealership switch from an S corporation to a C corporation? The earnings of a C corporation are generally subject to a lower tax rate than the earnings of a pass-through entity (21 percent vs. 29.6 percent). However, the earnings of a C corporation are subject to a second level of tax of up to 23.8 percent when the corporation pays a dividend or is liquidated or sold. The second level of tax means the owners of a C corporation keep about $0.60 for every $1.00 in corporate earnings, compared to about $0.70 for a pass-through entity, making a pass-through entity the entity of choice for a business that distributes most or all of its earnings. If you are looking to reinvest your earnings in the dealership, the lower current cash tax expense in a C corporation environment may make a C corporation the preferred
www.nmiada.com
IT WILL TAKE SOME TIME FOR THE DUST TO SETTLE ON THIS L AW. THE IRS INTERPRETATIONS ARE JUST STARTING TO COME OUT AND WILL CONTINUE FOR YEARS. entity. Each dealer’s situation is unique, and there are other factors to consider as well, including whether the business owns appreciating assets (like real estate), the impact of state taxes on cash flow, and the business exit strategy and timeline. Modeling after-tax cash flow on a present-value basis is a great way to evaluate different structures for your business. How We Can Help It will take some time for the dust to settle on this law. The IRS interpretations are just starting to come out and will continue for years. They will be followed up by tax court decisions. CLA’s dealership professionals can work with you to assess your current structure and any future business transactions and understand the impact of the new tax law on your business and your family. Local Representative: Victor Kraft, CPA, CGFM, CFE CLA Albuquerque 505-842-8290 victor.kraft@CLAconnect.com Dave Wiggins is dealership tax principal at CliftonLarsonAllen LLP.
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ACCELERATE |
By GWC Warranty
There’s a right way and a wrong way to go after more millennial business. Do it right and you’re capitalizing on a demographic with loads of discretionary income. Do it wrong and you could miss out on a gold mine of profit opportunity. A recent study by eBay found that despite delayed tax refunds, most millennials filed before the technology incidents that caused a delay for others. Furthermore, the research reported 37 percent of millennials planned to use their returns to buy a car and 80 percent planned on rewarding themselves with their returns. But are you ready to pounce on this limitedtime opportunity? Advertise in the Right Places Millennials won’t be able to find you unless you make the effort to get noticed where they’re looking. Social media advertising can be an affordable way to reach a highly targeted audience with a highly targeted message. You can select the age, location and other characteristics of your audience and speak directly to their needs and wants. Have the Right Cars If you often look back to see what sells well before you head off to auction, now’s the time to take it to the next level. Go back in the books to see if there are any trends in what past millennial buyers have purchased from you. If you don’t have much of a history with this group, some research from outside the car industry could help. It’s been widely reported how much millennials rely on recommendations, how much they research a purchase of this size and how image-conscious they are. Making sure you have vehicles that are reliable and competitively priced with all the right perks will go a long way.
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www.nmiada.com
Cover Story
Communicate the Right Way Millennials, more so than most audiences, are bombarded with emails, text messages, phone calls and more on a daily basis. So before, during and after a sale, your messages need to stand out. Tools like Covideo, which embeds personalized video messages into emails, can make your messages stand out from the crowd and get noticed. Using these kinds of messages throughout the buying experience can help a millennial customer stay more engaged with your dealership. Appeal to the Right Sensibilities We mentioned earlier how 80 percent of millennials are looking to reward themselves with their tax returns. This supports the idea that millennial decision-making is driven by emotion and self-image. Playing to this personality trait while millennials are on your lot or interacting with you online is an effective practice to get them in a car from your lot. Let them know how their image will benefit from this purchase and it could pay dividends. Provide the Right Protection Perhaps more so than anything else, millennials have high expectations after pouring hours upon hours of research, negotiations and time on the lot into making a vehicle purchase. Because of this, you don’t want a repair – big or small – after the purchase to put a damper on your millennial customer’s entire experience. This makes getting a service contract on every millennial deal an absolute necessity, especially since this demographic is also more likely to leave a review online.
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