DEALER NEWS
S TAT E A F F I L I AT E
R E P R E S E N T I N G A L L A U T O, T R U C K , TRAILER, RV AND POWER SPORT DE ALERS OF OREGON
THE OFFICIAL MAGA ZINE OF OREGON IADA F E B R U A R Y 2 0 17
M A N A G E M E N T
G A M E P L A N
ELECTION PROVIDES INSIGHTS TO MORE
EFFECTIVE CAR SELLING Technology Alone Isn’t the Holy Grail P A G E 14
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V I S I T U S AT W W W.O I A D A .C O M
INSIDE
05.............................................. When Good Recon Goes Bad 06................................................. NIADA Government Report 08................................................Autotrader Names Top Tech 08..............................................................Building Your Bench 10.....................................Embracing the Hashtag Generation 14..............................Election Provides Insights to Car Selling
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.
ADVERTISER’S INDEX
ADESA......................................................................................9 BMW Group Direct ..................................................................7 CarMax Auctions..................................................................... 5 DAA Northwest/Seattle.......................................................IFC Lobel Financial......................................................................... 3 Manheim ................................................................................11 NextGear Capital..................................................... Back Cover VAuto.................................................................................... IBC
OFFICE
Oregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070 800-447-0302
NIADA HEADQUARTERS NATIONAL INDEPENDENT AUTOMOBILE
DEALERS ASSOCIATION WWW.NIADA.COM • WWW.NIADA.TV 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838 OIADA Dealer News is published monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the authors and do not necessarily represent the views of OIADA Insider 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. 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
SAFETY WATCH
FORD RECALLS SEDANS FOR SEAT BELTS May Fail to Properly Restrain
Ford Motor Co. is recalling 603,392 model year 2013-16 Ford Fusion vehicles manufactured Nov. 2, 2012, to July 31, 2014, and 2013-15 Lincoln MKZ vehicles manufactured Nov. 14, 2012, to July 31, 2014.
In the event of a crash, heat from the deployment of a seat belt pretensioner may cause a front seat belt anchor cable to fail. If the driver or front passenger seatbelt cables cannot properly restrain the front seat occupants, they would be at an increased risk of injury. Ford will notify owners, and dealers will apply a protective coating to the seat belt cable, free of charge. Remedy parts are expected to be available by the second quarter of 2017. Ford’s number for this recall is 16S42.
ASSOCIATE MEMBERS ACCOUNTING SERVICES Delap, CPA Adam Puckett Lake Oswego, OR 97035 503-697-4118 ADVERTISING Affiliated Media LLC Aaron Jarvis 503-683-2574 Carsforsale.com Aaron Oestretch 605-306-3302 AutoTrader.com Ed Merrick 503-747-9162 Cars.com James Lynch 312-601-5052 UsedCars.com by Dealix Tamara Garris 847-397-1700 AUTO SERVICES & ACCESSORIES Auto Marketing Specialist Gary Palaniuk 503-519-7725 AUTO DETAILER Show Room New Mike Barthe P O Box 822073 Vancouver, WA 98682 360-882-8162 Northwest Auto Accessories Craig Lessard 503-288-5700 SHOWROOM/ BUSINESS JANITORIAL Show Room New Mike Barthe 360-882-8162 COMMERCIAL CLEANING JaniKing Morgan Thomas 541-868-8080 PRIVATE AUCTIONS
Brasher’s Northwest Auto Auction Mark Melton 541-689-3901 Brasher’s Portland Auto Auction Jerry Hinton 503-492-9200 Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 Manheim Portland Auto Auction Ray Priest 503-286-3000 OUT-OF-STATE AUCTIONS ADESA Seattle Auto Auction Jason Arcaro 253-735-1600 x 213 DAA Northwest Mitzi Vanvoorhis 509-244-4500 DAA Seattle Dave Blake Auburn, WA 98002 253-737-2200 Manheim Seattle Auto Auction Ray Priest 206-762-1600 PUBLIC AUCTIONS & AUCTIONEERS Commercial Industrial Auctioneers Ray Beal 503-760-0499 Insurance Auto Auctions, Inc. Ryan Hall 503-253-1500 Petersen Auction Group of Oregon Curt Davis 541-689-6824 Rick Leathers Auctioneers Rick Leathers 503-668-5326
Woodburn Auto Auction Steve Morin 503-981-8185 DEALER SOFTWARE Frazer Computing Michael Frazer 888-963-5369 FINANCING Credit Acceptance John Bragg 360-980-2214 Credit Concepts Jason Moon 541-342-8545 JP Morgan Chase Auto Finance Jeff DeGarmo 503-201-4370 Lobel Financial Tom McConkey 503-653-8000 Nationwide Insurance Mark Tischer 503-339-4165 Oregon Auto Finance Gary Veum 541-868-0472 Oregon Community Credit Union Rich Black 541-681-6311 PacWest LLC John Keifer 341-868-2595 Reliable Credit Association David Marx 503-462-3022 Smartway Auto Advisors Sheldon Harris 503-795-7700 The Equitable Finance Co. Brandon Fox 503-808-7939 United Finance Todd May 503-238-6488
BOARD OF DIRECTORS
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OIADA / February 2017
FLOORPLAN FINANCING Lobel Financial Tom McConkey 503-653-8000 Floorplan Xpress Josh Chandler 503-621-9260 NextGear Capital Robert Torbet 503-358-3911 INSURANCE & BONDING Hecht & Hecht Insurance Agency Evelyn Hecht 503-542-1131 KMI Agency, Inc. Kelly Martin 503-625-2615 Shepard & Shepard Business Solutions Todd Shepard 509-396-0488 The Summit Group of Oregon John Petrie 503-581-2825 LEASING Oregon Roads, Inc. Joseph McKinney 541-683-2277 SERVICE CONTRACTS A.U.L./D.P.C. Jim Bangert 360-834-3333 Automotive Business Developers Shannon Meany 541-944-9186 Auto Services Company Susan Williams 800-442-7116 DPC, Inc. Jacob Bangert 360-834-3333 Protective Life Insurance Dylan Doran 818-836-1455 TRAINING OIADA/NIADA Certified Pauline Sill 503-362-6839
PRESIDENT Tommy Wilson, Jr.
1ST VICE PRESIDENT Jim Weaver
TREASURER Salvador Alvarez Herrera Zamora Auto Sales
EXECUTIVE VICE PRESIDENT Siamak Lotfi
SECRETARY Gary Brooks
CHAIRMAN OF THE BOARD Gary Sargent
www.oiada.com
ACCELERATE
BY GWC WARRANTY
WHEN GOOD RECON GOES BAD Solve Your Recon Woes
Few things can be more of a headache for used car dealers than the reconditioning process. Far too often, it can lead to delays, forfeited front-end gross, poor relationships within your dealership and other consequences that ultimately hurt the overall bottom line. It sounds simple enough: Acquire vehicle. Prepare vehicle. Sell vehicle. So how can something so simple cause so many problems? It’s when good recon goes bad. You can solve your recon woes, however, by making small tweaks to your dealership that will have a tangible payout at the end. It’s all about culture. Too many times you hear stories of the back and forth between those acquiring the inventory and those getting it ready to go on the lot. Good recon starts when everyone stops pointing fingers. Cultivate a culture of collaboration. If you’re acquiring inventory, ask your service team what you should look for in a vehicle at
www.oiada.com
auction. If you’re getting a vehicle frontline ready, ask about deadlines and find out why a specific turn time is so important. Don’t get overconfident. If you’re estimating how long it will take to recondition a vehicle, be honest with yourself. Time is money, and you can’t accurately appraise and price your vehicle if you’re building in five days of holding costs when it will really take 10. Having a trusting and cooperative culture will help everyone feel comfortable enough to be transparent with these types of details. Know the dollars and cents. It’s estimated that holding costs can range from $30 to $50 dollars per day. Take the average figure from that range ($40 per day) and do the math for what you spend regularly on reconditioning costs. At an average of six recon days for 40 vehicles a month, you’re looking at $9,600 per month in holding costs alone. At that rate, that’s over $115,000 per year. You can even think of this on a per vehicle basis. At that same holding cost, a vehicle that takes five extra days to recondition cuts a $3,000 gross profit into a $2,800 gross profit – all this without even factoring in the actual parts and labor costs of the reconditioning itself. Knowing these numbers will help everyone in the dealership be accountable for their role in reconditioning.
Communicate. It sounds simple, but so many reconditioning processes go bad when management, sales and service simply aren’t on the same page. Things like repair approval delays and misplaced vehicles can add days to the reconditioning process (see above for how much that costs you). Getting all your departments on the same page can help in this process. It can be as simple as creating a spreadsheet that tracks each vehicle’s progress. This way, you’ll be able to see where delays happen and quickly get your reconditioning back on the rails.
February 2017 / OIADA
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WASHINGTON UPDATE
NIADA GOVERNMENT REPORT
July 2016, the CFPB issued proposals it was considering for a debt collection rule for third-party collectors. They are not intended to apply to a first-party creditor collecting its own debts. In the agenda, the CFPB said it will convene a panel of small businesses to consider rulemaking focused on companies that collect their own debts sometime in 2017.
Here’s a rundown of some of the latest governmental issues and activity affecting the used car industry from NIADA senior vice president of legal and government affairs Shaun Petersen and NIADA lobbyist Sante Esposito of Key Advocates.
DEPARTMENT OF JUSTICE Volkswagen settlement: DOJ, the EPA and the state of California announced a settlement with Volkswagen AG, Audi AG, Porsche AG and related entities regarding 3.0-liter diesel vehicles sold or leased with emissions defeat devices. For 2009-12 Volkswagen Touareg and Audi Q7 models, Volkswagen is required to offer to buy back the vehicles or terminate leases, and must also offer a modification to substantially reduce emissions, if one is proposed by Volkswagen and approved by regulators. For 2013-16 vehicles affected, including the Touareg, Q7, Porsche Cayenne and Audi A6 Quattro, A7 Quattro, A8, A8L and Q5, if VW demonstrates it can make the vehicles compliant with the certified exhaust emission standards, it will have to fix the vehicles and will not be required to buy them back. Volkswagen is also required to spend $225 million to fund projects that will reduce emissions of nitrogen oxide. Vehicle owners and lessees will receive updated information from Volkswagen, Audi and Porsche concerning their available buyback or modification options once the settlement is approved by the court. Information is also available at www.vwcourtsettlement.com and www. audicourtsettlement.com. Dealer arrested: A New Jersey auto dealer was charged with allegedly defrauding $2 million from more than 140 Russian citizens who were customers of his auto sales business. Sergey Kapustin, owner and president of Global Auto Group, Effect Auto Sales and G Auto Sales in Elizabeth, N.J., had Russian language websites that offered for sale luxury vehicles, including Mercedes and Lexus models priced below market value that could be shipped to Finland for easy delivery to Russian citizens – if they agreed to pay full price up front for the vehicles. Kapustin is Russian and his websites were geared to buyers in Russia, the Ukraine and other former Soviet republics who believed they were getting a “good deal” from a countryman who could be trusted to follow through once the purchase price had been paid. After the buyers wired the full price to one or more bank accounts controlled by Kapustin, he allegedly gave them a litany of excuses for delay in delivery. Allegedly, Kapustin had neither possession of nor title to the vehicles being sold.
Latest Government Issues and Activity
REGULATORY REPORT BY Shaun Petersen
CONSUMER FINANCIAL PROTECTION BUREAU On Dec. 1, the CFPB released its rulemaking agenda through Oct. 19 – before the election. The results of the election could have drastic impact on the agenda. Some of the highlights include: Arbitration rule: The agenda said the CFPB is reviewing and considering comments on its proposed rule banning pre-dispute arbitration agreements with class action waivers and is considering February 2017 as an estimated date for a final rule. Payday, title and deposit advance loans: The CFPB released a proposed rule in June. NIADA filed comments to express our position that the rule did not apply to retail installment contracts for purchase money security interests. Debt collection: In November 2013, the CFPB issued an Advance Notice of Proposed Rulemaking concerning debt collection, about which NIADA filed comments. In
On Dec. 1, the CFPB released its rulemaking agenda through Oct. 19 – before the election.
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OIADA / February 2017
At some point, the victim was offered a different, often inferior car, burdened with added shipping and storage costs. The victims often wired additional money in an attempt to rescue the car from storage. Many of the vehicles that did make it to customers were allegedly salvage or flood vehicles. DEPARTMENT OF LABOR Whistleblower rule: OSHA finalized its rule for handling retaliation complaints filed by whistleblowers in the automotive industry, which became effective Dec. 14. In accordance with legislation passed by Congress in 2012, motor vehicle manufacturers, parts suppliers and dealerships are prohibited from retaliating against employees who provide information about motor vehicle defects or violations of safety standards; file, testify or assist in any proceeding concerning alleged motor vehicle defects; or object to or refuse to participate in any activity that person believes is a violation of a safety standard. Retaliation includes firing, reduction in pay or hours, discipline or similar sanctions. Employees who believe they have been subject to retaliation have 180 days from the date of alleged retaliation to submit a complaint to OSHA. OSHA recordkeeping: A final rule that took effect Jan. 18 backs OSHA’s longstanding position that an employer’s duty to record an employee’s injury or illness continues for the full five-year record-retention period. The amendments in the final rule add no new compliance obligations and do not require employers to make records of any injuries or illnesses for which records are not already required.
LEGISLATIVE REPORT BY Sante Esposito
CFPB REFORM Rep. Jeb Hensarling (R-Texas) is talking about including his Financial CHOICE Act in the reconciliation bill Republicans are considering using to repeal Obamacare and introduce tax reform. Hensarling’s bill would rein in the CFPB’s authority by, among other provisions, making the bureau subject to the annual Congressional appropriations process, replacing its single director with a fivemember commission, requiring it to obtain permission before collecting personally identifiable consumer information and limiting its authority to prohibit consumer financial services or products it deems “abusive” and to prohibit the use of arbitration agreements. With the new Congress in session, all of the bills and the bills not enacted by the previous Congress have “died” and must be re-introduced – including a House-passed bill that would rescind the CFPB’s controversial 2013 auto financing guidance and specify a more transparent and accountable process. That bill’s language is included in the Financial CHOICE Act.
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MARKET WATCH BY USED CAR NEWS
AUTOTRADER NAMES TOP TECH
Trending Auto Technology
With new automotive technology constantly emerging and 2017 model-year vehicles now flooding dealer lots, the editors at Autotrader recently named their Must-Have Automotive Technology for 2017. Automakers like Mercedes-Benz, Tesla and Volvo are rolling out self-driving systems that can put many autonomous features together in one advanced package, appealing to even the most die-hard auto enthusiasts, especially when it comes to the more boring parts of driving like commutes or long highway trips. While Tesla’s Autopilot may currently be among the most advanced (and better-known) of these systems, several other automakers offer an impressive look at the future, including Volvo’s Pilot Assist system. Formerly only seen on ultra-high-end sports cars, adaptive suspension is making its way into other models, allowing you to custom tailor your car’s suspension based on the experience you want to have, with modes
like “comfort” and “sport.” For drivers who often find themselves critiquing a car’s ride, or for those who spend a lot of time on rough roads or driving tight corners, the ability to change your driving experience with the push of a button can be well worth the cost. Many new vehicles now offer a suite of autonomous safety tech, including lane keep assist, automatic forward collision braking and adaptive cruise control - and the great news is that these systems are getting more affordable and are no longer only reserved for pricey luxury cars. Affordable new compact models like Honda Civic, Hyundai Elantra and Mazda Mazda3 all feature impressive autonomous safety tech features. Say goodbye to the little sticker on the corner of your windshield that reminds you of your next oil change - now many cars deliver this information and more in a handy app, making it easier to keep track of everything. Some automakers like Hyundai even have the Hyundai Assurance Car Care App, which not only tells you when your vehicle needs its next service, but it can even schedule it for you. Gesture control is the wave of the automotive future. It allows you to control various features of your vehicle using gestures instead of pressing a button, touching a screen or using voice commands. Currently BMW is the only automaker to
offer this feature (and only on its high-end 7 Series), but expect this to reach more vehicles in the coming years. Huge screens seem to be replacing many gauges and buttons in the cockpit of new cars, operating similarly to a smartphone with ultra-sensitive touch and the ability for details to be reconfigured. While some may worry about the future reliability of such screens in lieu of simple buttons, experts praise the more clean presentation and easier-to-use infotainment systems versus former complex controls or tiny buttons. Electric drivetrain technology is now becoming more widespread and delivers not only the obvious fuel-economy benefit, but also performance benefits. Modern exotic sports cars like the Acura NSX, BMW i8, Porsche 918 Spyder and LaFerrari all feature electric drivetrains. For everyday drivers, features ranging from fully electric to plugin gas/electric hybrids mean several options for the driving masses.
MANAGEMENT MATTERS BY CHRIS KAHRS
BUILDING YOUR BENCH STRENGTH
Create Future Leaders Ready to Step In
Addressing personnel changes and challenges can occasion lengthy conversations. I’d say that the most often asked question is, “Where do I find my next manager?” As dealerships continue to experience rapid turnover and acquisitions – and promote good employees into management – many organizations struggle to find replacements for vacancies. Prepare for the unavoidable. It’s generally when they’ve lost an employee that dealers realize they have no one in their organization to assume that
particular role. Dealers are forced to search outside their organizations for a candidate who shares their business’ values, culture, work ethic and vision. This hunt can be exhaustive, and the process is disruptive to the daily operations of the organization. Why your team is critical. To use a sports analogy, each team has its starters suited up and ready to go for each game. When one of those starters gets hurt, a “bench player” is the next man up to assume that role. That bench player has been preparing for a scenario like this and is ready to perform. Yet in a lot of automotive organizations, there isn’t a bench player who has been coached to assume the role of the starter should there be the need. How to create a strong bench. Weak bench strength is a problem for a number of reasons. First, it means you must spend time and money to find an outside replacement. And, more important, that unnoticed bench player is likely to leave. I honestly believe one the greatest threats to
your dealership is for an overlooked bench player – one who is not being groomed for advancement – to leave. And they will. Sensing the lack of opportunity, individuals like this will typically depart for greener pastures should they have the opportunity, thus leaving your organization searching for yet another replacement. Here are my suggestions to improve your bench strength: • Train and educate from the top down to develop future organizational leaders. • Cross train for diversity. • Create peer-leader relationships. • Create a career path with clear and defined advancement opportunities. • Train, coach, motivate and encourage personal development. Filing managerial vacancies can be challenging for many organizations. However, you may already have an individual eager and ready to perform if given the opportunity. By building your bench, you can create future leaders from within your organization. Work on developing one to strengthen your overall talent pool. Chris Kahrs brings more than 17 years of experience to NCM, with extensive expertise in multi-facility management and dealer operations. This article originally appeared on NCM’s Up to Speed blog (blog. ncminstitute.com) and is reprinted with permission.
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OIADA / February 2017
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&
MANAGEMENT MATTERS BY ALISHA STEWART
EMBRACING THE #HASHTAG GENERATION
How to Retain Talented Millennials in the Workplace
CHART
YOUR COURSE
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OIADA / February 2017
Millennials get a bad rap. We’re called loud and opinionated, lazy and entitled… the list goes on. And employers seem wary of hiring us, especially given reports about our low loyalty, making it hard to find the right job. As a millennial employee, I have experienced the backlash of these assumptions, but I think a lot of our negative press misses the point: Our opinions may challenge your dealership, but we want to bring our passion for change and innovation to the workplace! And it’s going to happen. The truth is that we are the future of business, and by 2020 millennials will make up 50 percent of the world’s workforce. Here are a few suggestions to help your dealership retain your talented millennial employees and embrace the cutting-edge ideas that they bring with them. Pay us fairly and give us room to grow. Fair pay and growth opportunities are paramount to the retention of millennials. As a group, we expect to progress in your company – and achieve leadership roles – faster than Gen X or older groups. When we don’t achieve this, we leave. A business’s failure to offer advancement results in costly and constant turnover. While it may seem easy to take the cheaper route, there are many employers out there who will provide fair compensation and a clear career path, and millennials are eager to find them. Embrace social media in all aspects of business. We all know millennials live their lives
online. Whether you’re looking to hire or looking to engage, I can’t stress enough the use of online tools that are available to you, and 99 percent of them are free! Let your employees write for the company newsletter or blog. Use LinkedIn and Indeed to recruit talent. Post employee recognition or business events on Twitter, Facebook, and Instagram. Other ideas include purchasing a custom Snapchat filter for company parties and hosting a weekly vlog on YouTube. The options are truly endless, and they all help your millennial employee feel engaged with your dealership! Allow us to use our voice. I’d say millennials have a deep desire or, more appropriately, a need to let our voice be heard and share our views. Why do you think we’re so active on social media? A few ways to encourage that: • Give us opportunities to lead in roles that bring active change to the company, such as seats on committees and inclusion in forums. • Listen to us and be open to ideas! Just because something has been done a certain way for an extended amount of time does not mean it is the most effective or efficient way to keep doing things. Use our creativity to advance your business. • Allow us to be creative by embracing technology. • Let us be involved. Here at NCM, we have an Ownership Culture Committee that not only plans social events for the company but also participates in charity and giving back. Believe it or not, millennials do care about things bigger than themselves. Allowing them to give back and get involved will reap huge rewards in employee morale and culture. Alisha Stewart began her career at NCM Associates in September 2015. She graduated from California Baptist University in 2010 with a Bachelor of Arts degree in Communications and Public Relations. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.
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ASSOCIATION NEWS
OREGON INDEPENDENT AUTO DEALERS OIADA ~ Oregon IndependentASSOCIATION Auto Dealers Association Your only nationally recognized association since 1948. OIADA, here to help, support, educate and promote quality dealers in Oregon. Here are the great benefits of OIADA membership: • Oregon Dealer News is delivered to our dealers monthly, filled with quality up to date business articles. • Included in each Dealer News Magazine is 30 minutes towards continued education, free to OIADA members, which now means returning eight answer sheets a year. This is a savings of $75 annually. • OIADA Auction Punch Card: Our valued auction houses in Oregon, Washington and California are offering $50 savings on your buy and sell fees, a value of $1,100. • OIADA offers members discounts on all meetings, educational programs and conventions, with an annual savings of over $200. • OIADA members receive a discount on most forms, a savings of up to $100 or more annually. • Quarterly regional dinner meetings, an outreach to bring programs, education and conversation to all areas within Oregon. • Annual convention will host a variety of programs including eight or more hours of continued education. Quality Dealer of the Year Awards and Banquet. At a savings of $100 for OIADA members. • Opportunities for OIADA members to be awarded Oregon’s Quality Dealer of the Year and to compete for the National Quality Dealer of the Year at our national convention. • National education opportunities, becoming a Certified Master Dealer and more. • National access to Dealers 20 Groups . • OIADA has on contract a lobbyist to bring forth interests and to protect our dealers at the state level. • OIADA hosts a required certified 8-hour Pre-License Class. Upon completion dealers will receive the DMV required 8-hour certificate. • Title and registration classes, savings of $35 for OIADA members. • Help and support with your issues is just a phone call away. • Automatic membership with NIADA and the NIADA Used Car Dealer Magazine. • Access to NIADA’s annual convention. • Opportunities for scholarships, both state and national. • NIADA offers OIADA members a wide variety of discounts to members, from education to everyday business expenses.
ASSOCIATION NEWS
OIADA FORMS STORE YOU CAN E ASILY AT TAIN FORMS NEEDED FOR E V ERY DAY BUSINESS
Don’t let yourself run out of the forms you need to do business every day. OIADA has four ways for you to get forms:
1. 2. 3. 4.
You can order forms any time of the day online at OIADA.com. All you need is an email address. You can stop by one of three locations within the Oregon auction houses during auction day. You can pick up forms at the OIADA office, located at 1475 Capitol Street NE in Salem. OIADA members receive a discount on most forms, a savings of up to $100 or more annually. You can order forms any time online at OIADA.com. All you need is an email address.
Don’t be caught without a Secure Odometer Form or Secure Power of Attorney. These forms are DMV forms and each has a registered number assigned to the dealer who purchased them, so don’t lend yours out and do not borrow from your neighboring dealer. When you purchase these forms, it’s a good idea to pull them out of the packet and slip a reminder near the bottom to call OIADA and order more. You can even add the phone number (503-362-6839) on the note. Did you know that our members get a discount on most state forms? OIADA members save an average of $100 or more every year.
ontact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a ember of OIADA. Annual Savings $1100 Auction Punch Card $ 100 Forms $ 75 Education $ 100 OIADA Convention $ 50 Driven to Learn & Regional Meetings $ 1425 Bottom Line Savings
25 Cost of Membership ~ OIADA helping you succeed.
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OIADA / February 2017
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OIADA CONTINUING EDUCATION PROGRAM sponsored by onstar.com / trialon
OIADA CONTINUING E D U C AT I O N P R O G R A M
READ & RESPOND AND CERTIFY BELOW COMPLE T E T HIS T EST AND CERTIF Y BELOW T HAT YOU HAV E RE AD T HE ARTICLES FOR FEBRUARY 2017.
“WHEN GOOD RECON GOES BAD”
True/False: Cultivating a culture of collaboration contributes to good recon. True/False: Holding costs can range from $30 to $50 dollars per day.
“BUILDING YOUR BENCH STRENGTH”
Which of the following was NOT listed as a tip to improve your bench strength? a) T rain and educate from the top down to develop future organizational leaders. b) Train, coach, motivate and encourage personal development. c) Hire often. d) Cross train for diversity. True/False: By building your bench, you can create future leaders from within your organization.
“EMBRACING THE #HASHTAG GENERATION”
How can you retain your talented millennial employees and embrace their cutting edge ideas? a) Pay them fairly and give them room to grow. b) Embrace social media in all aspects of business. c) Allow them to use their voice. d) All of the above.
“ELECTION PROVIDES INSIGHTS TO MORE EFFECTIVE CAR SELLING”
True/False: Human decision-making is complicated, prone to whimsy and spontaneity, and can be influenced by factors that no technology-driven profiling will uncover. True/False: Non-verbal clues such as basic body language gestures are unimportant. I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for February 2017. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.
My Name ____________________________________________________________ ____________________________________________________________________ Dealership Name ______________________________________________________ Dealership # __________________________________________________________ Dealer License Expiration Date: (Month)_____________________________________ (Year)________________ Signed: _________________________________________ Date _________________________________________________________________
FAX TO: 503-364-7331 MAIL TO OIADA at 9150 SW Pioneer Ct Ste H, Wilsonville, OR 97070 www.oiada.com
AUCTION NEWS
BY AUTO REMARKETING STAFF
MANHEIM SEATTLE HONORED Best in Class Performance
Manheim sites across the country were honored by Element Fleet Management for best-in-class performance at the recent 18th annual Remarketing by Element Awards. Manheim led the field of winners this year, taking 10 national and regional awards for outstanding achievements and innovative practices in vehicle remarketing. “Remarketing by Element appreciates all of our partner auctions and commend those that are the best of the best,” said Remarketing by Element vice president Paul Seger. “We congratulate all of our winners, especially Manheim Ohio for achieving the top honor as Auction of the Year.” Highlighting the ceremony was Manheim Ohio winning the Gold Award as the top national auction in Element Fleet Management’s remarketing program and three locations taking top regional auction honors – Manheim Statesville, Manheim Kansas City and Manheim Nevada. In total, Element Fleet Management honored 10 Manheim locations, including:
• Manheim Ohio – Gold Award • Manheim Statesville – Silver Award, Northeast • Manheim Kansas City – Silver Award, Midwest • Manheim Nevada – Silver Award, West • Manheim Pennsylvania – National Technology Award, East • Manheim Riverside – National Technology Award, West • Manheim Central Florida – Above and Beyond Award, Southeast • Manheim Chicago – Above and Beyond Award, Midwest • Manheim Phoenix – Above and Beyond Award, West • Manheim Seattle – Outstanding Promotions Award, West “Being recognized by our clients for helping them meet their business goals is one of the highest compliments Manheim can receive,” said Manheim senior vice president of sales Tim McKinley. “These awards are a testament to our locations’ commitment to delivering top-notch service and sales results. We are honored to receive these awards, and we are so very proud of the teams who earned them.”
February 2017 / OIADA
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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 technologydriven 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
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OIADA / February 2017
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? 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 nonverbal 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 wouldbe 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?” 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.
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