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 M A R C H 2 0 17
DEALERS BEWARE! Thieves Using New Technology PAGE 0 6
DALLAS, TEXAS Permit No. 2079
PAID
PRSRT Standard U.S. Postage
V I S I T U S AT W W W.O I A D A .C O M
EDMONDS BOYS & GIRLS CLUB PAGE 08
2
OIADA / March 2017
www.oiada.com
PRODUCTS & SERVICES
SEARS AUTO CENTER JOINS MYCARFAX SERVICE SHOP PROGRAM
Helps Reduce Headache of Car Care
Sears Auto Center has teamed with Carfax to help millions of people take better care of their vehicles. By joining the myCarfax Service Shop program, all Sears Auto Centers nationwide now have exclusive access to Carfax information and resources. Using these free benefits helps Sears Auto Center reduce the headache of car care, increase member loyalty and bring more people to Sears Auto Center for service. To foster repeat visits, Sears Auto Center also is enrolling customers in the free myCarfax.com service. Customers get vehicle-specific email and mobile reminders from myCarfax.com that direct them back to Sears Auto Center when recommended oil changes, tire rotations and other services are due. Customers are enrolled in myCarfax. com with one click of a sign-up button
built into the Sears Auto Center shop management system. “Sears Auto Center prides itself on delivering excellent customer service,” said Sears Auto Center president Brian Kaner. “Through our partnership with Carfax and the myCarfax Service Shop program, we are able to provide our customers with unrivaled information to help them keep their vehicles safe and well-maintained while maximizing potential resale value.” Sears Auto Center technicians are able to make more accurate service recommendations, which boosts customer confidence, using free myCarfax Service Shop tools like Carfax Service History Check. Maintenance work done at Sears Auto Center is included on Carfax Reports and helps drive new customers using Carfax to shop for and buy used cars. Sears Auto Center recently launched its DieHard 360º Vehicle Assessment, which includes a Carfax Vehicle History Report along with other valuable benefits. “We are excited to work with Sears Auto Center in delivering more value to their stores and customers,” said Carfax general manager Vern Poyner. “Sears Auto Center is one of the nation’s premier auto service locations and shares our commitment to helping people take better care of their vehicles. Those who do often see them last longer, perform better and get more
money for them.” With the addition of Sears Auto Center, more than 43,000 service shops are currently part of the free myCarfax Service Shop program. Participating shops get access to free resources that help drive customer loyalty, increase productivity and maximize service revenue. More than 4 million vehicle owners are currently enrolled in the myCarfax.com service. To learn how to become a myCarfax Service Shop visit www.mycarfaxserviceshop.com or call 888-655-5362.
MANAGEMENT MATTERS BY ROBERT NEUMAN
ARE YOUR EMPLOYEES ACTUALLY WORKING AT WORK? Gauge Productivity and Share Your Expectations
Five or six times a week, your employees get up in the morning and say to themselves: “I have to go to work today.” That’s good because you hired workers to produce – or assist in producing – gross in the first place. Here is the big question, though: Do your work expectations match your employees’ work expectations? You likely want your employees to put in a full day of activity at work – you know, working while at work. On the other hand, your employees may believe “as long as I am at work, I am working.” Notice the difference?
www.oiada.com
Gauge Productivity How do you know if you are getting the full work production out of your employees? Be observant. Compare the numbers produced by your departments against industry production benchmarks: How are you doing? Is one department falling behind? Then inspect all departments in the dealership, at all time slots, to see if or when there are pockets of idle time or non-productivity. Create Productive Employees If your departments are not producing as they should, it’s time to make sure your employees work at work! First, evaluate your employees. Here are some questions to consider: • Are your sales people producing the volume and gross you would expect a professional sales person to achieve? • Is your used vehicle manager producing the inventory turn you need to achieve your return on investment? • Does your service department produce the simple key performance indicators, such as gross as a percentage of sales, increasing your effective labor rate and selling more hours per RO? Once you’ve identified any problems, you need to develop a correction plan. One of the first things I recommend is educating your staff, especially if you haven’t yet invested in
formal training for your team. If you’ve already taken the time to train your people, there may be some process issues happening. Is Downtime OK? You may say, “It’s OK to have some employees have idle time, as long as they produce to a set production standard or expectation.” I agree with that statement to a point. Just make sure your employees are achieving – or exceeding – industry benchmarks. I recommend you keep an eye on it. Accountability Helps Everyone Obviously, everyone must work at what they were hired to do. Let’s make sure we are getting our fair share out of the employees we have hired. Share your expectations with them. Show them the industry benchmarks or standards, train them in the skills they need to achieve these standards and then hold them accountable. Times are getting leaner, and now is not the time to allow employees in your business to not work at work. Robert Neuman is an automotive executive with 32 years of diverse experience in the automotive industry. He currently serves as an executive conference moderator for NCM Institute conducting 20 Group meetings around the country. This article originally appeared on NCM’s Up to Speed blog (blog. ncminstitute.com) and is reprinted with permission.
March 2017 / OIADA
3
INSIDE
03..............................Are Your Employees Actually Working? 06....................................................................Dealers Beware 08.........................................Kaman Auctions Raises $12,600 10........................................ Reasons Your Facebook is Failing 12............................................Tips for a Subprime Slam Dunk 14................................................. NIADA Government Report
WHAT’S NEW
Tire Safety Week Dates Announced
The dates for National Tire Safety Week 2017 are May 28-June 3. An initiative of the Rubber Manufacturers Association, the event promotes tire safety among consumers. Auto dealers join the tire and auto industry to encourage drivers to “be tire smart.” For more information, or to request print materials, visit www.betiresmart.org.
ADVERTISER’S INDEX
ADESA..................................................................................... 5 AutoZone................................................................................. 9 CarMax Auctions..................................................................... 7 DAA Northwest/Seattle.......................................................IFC Manheim................................................................................ 11 Manheim Portland.................................................. 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 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. Inc.
STATE MAGAZINE MGR./SALES
Troy Graff • troy@niada.com EDITORS
Jacinda Timmerman • jacinda@niada.com Andy Friedlander • andy@niada.com MAGAZINE LAYOUT
Christopher Hanley • chris@niada.com PRINTING
Nieman Printing
REGULATORY NEWS BY USED CAR NEWS
FTC UPDATES PENALTIES Increase in Maximum Penalties for Violations
The Federal Trade Commission has adjusted the maximum civil penalty dollar amounts for violations of 16 provisions of law the FTC enforces, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The act directs agencies to implement
annual inflation adjustments based on a prescribed formula. The new maximum civil penalty amounts will take effect upon publication in the federal register. The maximum civil penalty amount has increased from $40,000 to $40,654 for violations of Sections 5(l) and 5(m)(1)(A) and (B) of the FTC Act, Section 7A(g)(l) of the Clayton Act and Section 525(b) of the Energy Policy and Conservation Act. The maximum civil penalty amount has increased from $1,138,330 to $1,156,953 for violations of Section 814(a) of the Energy Independence and Security Act of 2007. The maximum civil penalty amounts for other law violations within the agency’s jurisdiction are listed in the Federal Register Notice.
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 FLOORPLAN
BOARD OF DIRECTORS
4
OIADA / March 2017
PRESIDENT Siamak Lotfi
1ST VICE PRESIDENT Gary Brooks
EXECUTIVE VICE PRESIDENT Jim Weaver
SECRETARY/ TREASURER Salvador Alvarez Herrera
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
CHAIRMAN OF THE BOARD Gary Sargent
www.oiada.com
www.oiada.com
March 2017 / OIADA
5
SAFETY WATCH SOURCE: NICB
DEALERS BEWARE! Thieves Using New Technology The National Insurance Crime Bureau (NICB) says new technology is being used to not only unlock and open vehicles, but to also start and steal them. NICB recently obtained one of the so-called “mystery devices” the public was first warned about over two years ago. At the time, thieves were seen on security cameras across the country, using unknown devices to unlock vehicles and steal valuables inside. In recent months, NICB has noted reports of thieves not only opening the vehicles, but also starting them and driving away. The device obtained by NICB was purchased via a third-party security expert from an overseas company. It was developed by engineers in an effort to provide manufacturers and other antitheft organizations the ability to test the vulnerability of various vehicles’ systems. Called a “Relay Attack” unit, this particular model only works on cars and trucks that use a keyless remote and push-button ignition. In a series of unscientific tests at different locations over a two-week period, 35 makes and models of cars, SUVs, minivans and a pickup truck were tested. We partnered with NICB member company CarMax because they are the nation’s largest used car retailer and have nearly every make and model in their inventory. Tests were also done at a new car dealership, an independent used car dealer, at an auto auction and on NICB employee vehicles and ones owned by private individuals. The vehicles were tested to see if the device could: • Open the door. • Start the vehicle. • Drive it away. • Turn off and restart the engine without the original fob present. The NICB was able to open 19 (54 percent) of the vehicles, and start and drive away 18 (51 percent) of them. Of the 18 that were started, after driving them away and turning off the ignition, the device was used to restart 12 (34 percent) of the vehicles. NICB said there are a number of different devices believed to be offered for sale to thieves. Some use different technology and may work on different makes and models and ignition systems. More expensive models may have a greater range and better capabilities for opening and starting a vehicle. “We’ve now seen for ourselves that these devices work,” said NICB president and CEO Joe Wehrle. “Maybe they don’t work on all makes and models, but certainly on enough that car thieves can target and steal them
6
OIADA / March 2017
Mystery Device
Device in Action
with relative ease. And the scary part is that there’s no warning or explanation for the owner. Unless someone catches the crime on a security camera, there’s no way for the owner or the police to really know what happened. Many times, they think the vehicle has been towed.” Wehrle said it’s important for law enforcement officers to be aware of this threat and be on the lookout for thieves who may be using the technology. According to NICB chief operating officer Jim Schweitzer, who oversees all NICB investigations, vehicle manufacturers must continue their efforts to counter the attacks on anti-theft technology. “Vehicles are a valuable commodity and thieves will continue to wage a tug of war with the manufacturers to find a way to steal them,” said Schweitzer. “Anti-theft technology has been a major factor in reducing the number of thefts
over the past 25 years. The manufacturers have made tremendous strides with their technology, but now they have to adapt and develop countermeasures as threats like this surface.” While there may not currently be an effective way of preventing this kind of theft, NICB advises drivers to always lock their vehicles and take the remote fob or keys with them. Drivers should also be on the lookout for suspicious persons or activity and alert law enforcement rather than confronting a possible thief. It’s also a good idea to never invite a break-in by leaving valuables in plain sight. And once thieves get inside, they can easily steal a garage door opener and valuable papers such as the vehicle registration that could lead them to your home. So take the garage door opener with you and take a picture of your registration on your cell phone rather than keeping it in the glove compartment.
www.oiada.com
INDUSTRY WATCH
BY NATIONAL AUTO AUCTION ASSOCIATION
2017 EXPECTED TO BE RECORD YEAR
NAAA Economic Report
AUTO AUCTIONS The strength in new light vehicle sales during the 2010 to 2016 period created a large number of off-lease, off-rental, and off-fleet vehicles that have, and will, come back to the market in the form of commercial consignment to auctions. Dealer consignment growth, which is closely timed with new sales and the related trade-ins, declined slightly last year and is expected to drop by a bit more this year. We had expected auction volume to come in at 9.7 million in 2016, but it appears to have been a bit stronger at 9.8 million. This year, we forecast continued growth in auction unit volume, but at a slower pace than in recent years as declines in dealer consignment will to some extent offset strong gains in commercial consignment. In total, 2017 unit auction volume is anticipated to be 10.1 million, a 3 percent increase and a new record. LIGHT VEHICLES Although the overall recovery/expansion has been significantly below average, light
www.oiada.com
vehicle sales have experienced a normal recovery and expansion. After bottoming out at 10.4 million in 2009, light vehicle sales moved up at a double digit rate for three years and then increased consistently through 2015 when they hit a record level of 17.4 million. Last year light vehicle sales increased slightly to a new record of 17.5 million. Recently, higher sales have been boosted by increased incentives, suggesting underlying demand is weakening as pentup demand has been worked off. The lack of pent-up demand and the need for increased incentives has resulted in a small decline in our expectations for 2017 light vehicle sales to 17.2 million units, a 1.5 percent decline from 2016.
March 2017 / OIADA
7
AUCTION NEWS
KAMAN AUCTIONS RAISES $12,600 FOR EDMONDS BOYS & GIRLS CLUB Local Women-Owned Business Gives Back to Community
Kaman Auctions, owned by sisters Lynn Kamacho and Marci Norman, presented a $12,600 check to Brandie Lovelace, the unit director of the Edmonds Boys & Girls Club. The Boys & Girls Clubs of America is a movement that includes over 1,140 independent and national organizations. The funds donated to the local chapter will be used for various programs and athletics that encourage “friendship, skill development, selfdiscipline, and respect for self, others, staff and equipment.” This was the fourth annual charity auction for Kaman Auctions and was held November 22. Participants bid on over 90 items such as a Schwinn Roadster Tricycle and vacation getaways to Tulalip Resort Casino, RCI properties and Wyndham Plus resorts. “One of our goals when we started this business was to be a contributor to the local community,” said co-owner Lynn Kamacho. “The auction format was a natural choice for a fundraiser since this is what we do every week and it brought the community, our customers, friends and family together for fun and a worthwhile cause.” The company’s charity auctions have grown significantly since their first auction that raised $3,600 in 2013. “We chose the Edmonds Boys & Girls Club because kids are our future and they really are the ones who will make our country great again. They all deserve an opportunity to thrive and be the best that they can be,” said co-owner Marci Norman. The mission of the Boys & Girls Clubs of America is “to enable all young people, especially those who need us most, to reach their full potential as productive, caring, responsible citizens.” The Edmonds Club was established in 1968 and supports three locations with before and after school programs for ages 5 through 18. Kaman Auctions LLC provides auto auction services for local franchise and independent car dealers in the greater Seattle area every Thursday at 12 p.m. Special event auto auctions are also offered to the public several times a year. The live, single-lane format generates high-energy car auctions. Kaman’s facilities are conveniently located on Highway 99 in Edmonds, Wash. Kaman Auctions provides a full suite of additional services, including transportation, detailing, pre- and post-sale inspections and other mechanical services.
8
OIADA / March 2017
The focus of Kaman is delivering exceptional customer service throughout the auction process. Kaman also believes strongly in supporting the local community, businesses and charities with their business values focused on authenticity, integrity, honesty, respect, professionalism, and happiness. “We would like to acknowledge Bill Knorr of Mountlake Terrace, as well as Ron Newman of Bayside Auto Sales, who both donated items and were significant participants in the auction. As well, we would like to commend the entire Kaman team and their friends and family too!” said Lynn and Marci. “We enjoyed the energy of everyone coming together with the same goal – it was a fun environment with enthusiastic participation!”
www.oiada.com
REGULATORY UPDATE BY AUTOMOTIVE NEWS
U.S. PROPOSES V2V MANDATE TO AVERT CRASHES Technology has Significant Safety Potential
U.S. auto safety regulators proposed requiring all new vehicles to be equipped with vehicle-to-vehicle communication systems, citing the technology’s significant potential to reduce crashes. The proposed mandate, recently released by the Department of Transportation, would require all new cars and light trucks to have dedicated short-range communication systems that transmit and receive basic messages about the vehicles’ speed, location, braking and other data. DSRC systems allow cars to “talk” to other vehicles on the road and to infrastructure equipped with the systems, allowing drivers to “see” around corners and be warned of a potential crash. “This technology has enormous safety potential to prevent hundreds of thousands of crashes and save lives,” transportation secretary Anthony Foxx said. Under the proposal, automakers would be
www.oiada.com
required to equip half of all new cars with the technology two years after the National Highway Traffic Safety Administration issues a final rule. Full penetration would be required within four years after the rule is final. U.S. officials have said the technology could potentially reduce non-impaired traffic crashes by 80 percent once fully deployed. Regulators signaled their intent to mandate V2V systems in August 2014. Under this most recent proposal, the DSRC systems would be required to use a common set of communications protocols to ensure all vehicles “speak the same language,” the DOT said. The proposal also contemplates the technology working alongside crash avoidance technologies like automatic emergency braking to help prevent collisions. The proposed rule also has privacy and security requirements, including 128-bit encryption on vehicle data transmissions. In addition, the department said it plans to soon issue guidance on vehicle-toinfrastructure communications. Saving Lives Last year, there were 6.3 million U.S. vehicle crashes. In October, NHTSA said U.S. traffic deaths jumped 10.4 percent in the first six months of 2016. The jump followed a spike in 2015, when road deaths rose 7.2
percent to 35,092, the highest fullyear increase since 1966. The rule would not require vehicles currently on U.S. roads to be retrofitted with the technology. Foxx said owners couldn’t turn off the technology but could turn off warnings. The Alliance of Automobile Manufacturers, a trade group representing General Motors, Toyota Motor Corp., Volkswagen AG and other major automakers, noted the system is already being tested. The group said it would study the proposal. Automakers are pushing to ensure that a portion of the spectrum reserved for connected vehicles is not used by other companies for other wireless device use. The U.S. Federal Communication Commission has begun testing potential sharing options. Separately, the Federal Highway Administration plans to issue guidance for vehicle-to-infrastructure communications, which will help planners allow vehicles to “talk” to roadway infrastructure such as traffic lights. Reuters contributed to this report.
March 2017 / OIADA
9
SOCIAL MEDIA BY KATHI KRUSE
REASONS YOUR FACEBOOK PAGE IS FAILING Make It Work For You, Not Against You
Not all Facebook pages are created equal. It’s hard to ignore the opportunities available with Facebook to engage would-be customers, but building a highconverting Facebook page has been elusive for many dealers. It’s important to know the elements of a successful Facebook page and it’s even more crucial now to recognize the reasons your Facebook page is failing. Engaging customers on Facebook is challenging because it requires publishing the type of content they want to engage with. This means employing a content strategy that works for your store both culturally and operationally. In addition, Facebook ads promote your content, increase clicks to your website and, ultimately, turn fans into customers. Is achieving consistent engagement on Facebook a struggle for your store? Here’s a list of reasons why your Facebook page is failing with tips to make it work for you rather than against you. You Don’t Publish Regularly Consistency is a cornerstone of Facebook (or any other) marketing. Users need to see your posts in their newsfeeds for you to stay relevant. It’s a battle right now for attention, and inconsistency will kill you. Posting a few times per week or per month is not going to capture anyone’s attention. Post two to three times per day during the week and one to two times per day on the weekend. Your Page Lacks the Human Touch Facebook pages fail because posts focus on products instead of people. There’s a complete disconnect from the human side on most dealership Facebook pages. Content that demonstrates why people choose you seems to be nonexistent. If you approach Facebook with the sole mindset of “making money” you will end up wasting your time. Facebook is first and foremost a social network, not a business network. You’re Not Using the Three-Geared Content Approach Facebook is a powerful tool for engaging customers. The challenge lies in producing high quality, original content on a consistent basis. Use our three-geared approach to increase engagement: • Entertain. Most people who engage with your page are not immediately inmarket. The inability to engage this type of prospect is where many pages fail. • Educate. Fans who are thinking
10
OIADA / March 2017
about a purchase appreciate answers to their questions. • Excite. Offer something worthy of their time. Exciting offers compel people to click in anticipation. Your Posts Look and Feel Counterfeit Every dealership has a personality – characteristics, features, and traits – that makes it unique. Customers prefer dealers who communicate exactly who they are and the impact they want to have in their customers’ lives. Publishing benign content that can be found anywhere is the shortest distance to the bottom. This happens when dealers hire outside providers (and sometimes shady vendors) to “do social media” for them. The provider’s lack of personality comes through and it’s obvious someone other than you is doing the work. It’s not a good look for those who want to engage real people. Real people are behind your brand so let that shine through in your content. You’re Not Targeting In-Market Customers Facebook Ads’ deep data allows dealers to laser-target customers who are in-market. Building target audience profiles improves your Facebook marketing tenfold. • Determining the “buyer personas” of your core audience improves the way you solve problems for your customers. • Establishing customer pain points helps create content that’s useful to your prospects (and builds authority with search engines). • Useful, high quality content increases engagement and builds your social presence. • Website content (i.e. blog posts) published on Facebook and clicked through to your site increases search ranking. You Don’t Regularly Conduct a Facebook Page Audit Whether your social media marketing is in-house or outsourced, it’s difficult to know where the gaps are between your current successes and where you need to be. There are many ways to benefit from a social media audit. Given today’s accelerated rate of Facebook failures, a social media audit will help you engage more customers and achieve goals faster. You’re Ignoring Comments and Messages Facebook is a communication channel just like email and phone. Customer service via social media is a game changer, but if you don’t have a process to monitor, listen and respond to messages, you’re dead in the water. • 71 percent of consumers who experience positive social customer care are likely to
recommend the brand to others, compared with just 19 percent of customers who do not get a response. • Today’s tech-savvy consumers want their online questions to be addressed promptly – 42 percent expect a response within one hour. • 83 percent of respondents in a recent survey said they liked – or even loved – when a company responded to them on social. You Lack Clear Goals Highly-engaging Facebook pages start with clear, well-defined goals. At Kruse Control, we begin with an outline of four goals and then build out the specific strategies that help each client achieve them: 1. Attract. 2. Engage. 3. Convert. 4. Retain. You’re Not Leveraging the Power of Facebook Ads Facebook has become one of the most powerful platforms to engage customers and build business. Facebook pages fail because they either aren’t using Facebook Ads correctly or they’re not using Facebook Ads at all. No Facebook page will work without Facebook Ads. Why? Because you must pay Facebook to reach your target audience and deliver the right content to the right customer at the right time. No pay, no play. You’re Not Measuring and Analyzing Your Results Dealerships that don’t review their Facebook results are doomed to repeat their mistakes over and over again. Facebook Insights is your best friend. It provides all the metrics you need to judge how your page is doing. You can see which content got the most organic and paid interaction, what you did right, and what didn’t work so well. Analyzing results lets you deliver a better experience for fans, make better decisions on your content and determine if you’ve reached your goals. Next Steps... If you’re not getting the results you want, review your page using these tips. If your page doesn’t size up and you need help to improve, reach out to me (www. krusecontrolinc.com). We’ll work together to create social media strategies that work! 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.oiada.com
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.
e 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. OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a of OIADA.
ual Savings 00 Auction Punch Card 00 Forms 75 Education 00 OIADA Convention 50 Driven to Learn & Regional Meetings 25 Bottom Line Savings
Cost of Membership ~ OIADA helping you succeed.
12
OIADA / March 2017
ACCELERATE
BY GWC WARRANTY
TIPS FOR A SUBPRIME SLAM DUNK Ensure Your Subprime Business Doesn’t Fluctuate
As the pendulum swings with subprime lending, it becomes increasingly difficult for dealers to give their subprime customers the best deal possible. But regardless of which way the subprime breezes are blowing, there are certain steps used car dealers can take to ensure their own subprime business doesn’t fluctuate with the annual ebbs and flows of the subprime market. The Right Inventory It starts with selection of inventory and moves on to the inventory you present to each individual customer. Head to auction with the subprime customer in mind. Do some research with your lenders beforehand to see which vehicles they’ve had subprime success with and target a few of those each time you’re acquiring inventory. Once they’re on your lot, present them to customers who pre-screen with subprime credit. Once you engage with the customer, try something along these lines: “Thanks for reaching out, Mr. Smith. I have three great vehicles here that match what you’re looking for and they’re vehicles I know we can get financed for you.” The Right Lenders Part of being able to select, present and finance the right vehicle for a subprime customer is having strong lender partnerships. Seek out lenders who know the subprime space well and operate in it frequently. Many can be local providers, so finding lenders who know your area well will help, too. Lenders that meet these criteria will be more consistent with their decisions and help you get more subprime deals approved on a regular basis. The Right Protection A common struggle on a subprime deal can be adding a vehicle service contract on the back end with a limited subprime advance. This is an obstacle you can certainly overcome – especially if you’ve worked on the first two points we’ve discussed. It’s a simpler solution than you might think, too. Just ask. And you might have to ask more than once, but good subprime lenders will understand the value of a service contract on a vehicle. Remind them of that if you need to. A service contract will keep a car on the road, protect a customer’s monthly budget and, in turn, lower the likelihood of a default. As you look at ways to breathe some life into your subprime business, remember three keys to successful subprime sales: the right inventory, the right lenders and the right protection.
www.oiada.com
ASSOCIATION NEWS
OIADA CONTINUING EDUCATION PROGRAM sponsored by
OIADA FORMS STORE
onstar.com / trialon
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.
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 MARCH 2017.
“U.S. PROPOSES V2V MANDATE TO AVERT CRASHES” True/False: U.S. officials have said the technology could potentially reduce non-impaired traffic crashes by 80 percent once fully deployed.
“REASONS YOUR FACEBOOK PAGE IS FAILING” True/False: Engaging customers on Facebook means employing a content strategy that works for your store both culturally and operationally. What approach should you use to increase engagement on Facebook? a) Entertain. b) Educate. c) Excite. d) All of the above. True/False: Analyzing results lets you deliver a better experience for fans, make better decisions on your content and determine if you’ve reached your goals. How often should you post on Facebook? a) Two to three times per day. b) A few times a week. c) A few times a month.
“TIPS FOR A SUBPRIME SLAM DUNK” True/False: It’s easier than ever for dealers to give their subprime customers the best deal possible. True/False: A service contract will keep a car on the road, protect a customer’s monthly budget and, in turn, lower the likelihood of a default.
I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for March 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
March 2017 / OIADA
13
WASHINGTON UPDATE
NIADA GOVERNMENT REPORT Latest Government Issues and Activity
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.
REGULATORY REPORT By Shaun Petersen
CONSUMER FINANCIAL PROTECTION BUREAU The CFPB released a report drawn from its first national survey of consumer experiences with debt collectors. The report found: • 27 percent of consumers approached about debt said they felt threatened by the conduct of the creditor or collector who most recently contacted them. • 40 percent of consumers contacted about a debt in collection said they asked at least one debt collector or creditor to stop contacting them. Three in four of those consumers said the debt collector did not honor the request. • 53 percent of consumers contacted about a debt said at least one collection effort was mistaken in some way. • 36 percent of consumers reported being contacted at inconvenient times. • 40 percent reported a debt collector attempted contact four or more times per week. • 15 percent of consumers contacted about a debt in collection during the prior year reported being sued. DEPARTMENT OF JUSTICE Dealer sentenced: Kenneth Smith, who operated Cars Unlimited in Lebanon, Mo., was sentenced to 18 months in federal prison and fined $50,000 for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that underreported the vehicles’ actual mileage. After buying cars at auction, Cars Unlimited requested duplicate titles that
14
OIADA / March 2017
showed a lower mileage, and replaced the vehicles’ instrument clusters. Takata pleads guilty: Takata Corporation agreed to plead guilty to wire fraud and pay a total of $1 billion in criminal penalties $975 million in restitution and a $25 million fine – stemming from its alleged fraudulent conduct in relation to sales of defective airbag inflators. An indictment was also unsealed charging Takata executives Shinichi Tanaka, Hideo Nakajima and Tsuneo Chikaraishi, all Japanese citizens, with wire fraud and conspiracy in connection with the scheme. DOJ claims Takata induced its customers to purchase airbag systems it knew were faulty by submitting false and fraudulent reports and other information that concealed the true condition of the inflators. Volkswagen pleads guilty: Volkswagen AG agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s sale of approximately 590,000 diesel vehicles in the U.S. equipped with a defeat device to cheat emissions tests, and allegedly lying and obstructing justice to further the scheme. VW will also be on probation for three years under an independent corporate compliance monitor. In addition, six VW executives and employees have been indicted for their roles in the conspiracy, with charges including conspiracy, wire fraud and violations of the Clean Air Act. VW also agreed to pay $1.5 billion in separate civil resolutions of environmental, customs and financial claims. FEDERAL TRADE COMMISSION Resignations: Edith Ramirez announced her resignation as the commission’s chair on Jan. 13. Commissioner Maureen Ohlhausen was named acting chair. On Feb. 8, Jessica Rich, director of the FTC’s bureau of consumer protection, also resigned. Rich, who joined the FTC in 1991, had spearheaded a series of major enforcement actions against businesses, including car dealerships. Among them were Operation Steer Clear and Operation Ruse Control, which led to almost 300 enforcement actions involving allegations of deceptive advertising, fraud and other violations. Volkswagen settlement: The FTC settled litigation with Volkswagen Group of America to fully compensate consumers who purchased 3.0-liter TDI diesel vehicles through a combination of repairs, additional monetary compensation and buybacks for certain models. Under the order, owners of model year 2009-2012 vehicles will be able to sell their cars back to Volkswagen and obtain full compensation for their losses. Consumers are eligible to receive $26,000-$58,000 for a buyback, depending on the model, mileage and trim of the car. Those owners can also choose to keep their cars and receive a modification that
would improve their vehicle’s emissions, if a modification is approved by the Environmental Protection Agency and the California Air Resources Board. Consumers receiving an emissions modification will also receive monetary compensation. Owners and lessees of model year 20132016 vehicles will get their cars fixed to bring them into compliance with originally certified emission standards as well as compensation ranging from $8,500 to $17,600. Owners can determine if they are eligible for compensation and submit claims at VWCourtSettlement.com and AudiCourtSettlement.com.
LEGISLATIVE REPORT By Sante Esposito
REFORMING CFPB INDIRECT AUTO FINANCING GUIDANCE ACT The bill, which would rescind the controversial auto financing guidance action regarding dealer discretion on interest rates issued by the CFPB in March 2013 and provide a more transparent and accountable process for dealing with the issue, passed the House last year but must be reintroduced in the new Congress. With Sen. Jerry Moran (R-Kan.), the sponsor of the Senate version of the bill last Congress, no longer on the Banking Committee, action on the issue is pending guidance from Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, and any action taken by the Trump Administration regarding the CFPB. During the last Congress, Hensarling introduced The Financial CHOICE Act, which would bring sweeping reforms to the CFPB – including a repeal of the auto finance guidance. One of the major changes proposed in Hensarling’s bill is replacing the CFPB’s single director with a bipartisan five-member commission. The term of the current director, Richard Cordray, runs until July 2018, but his fate is up in the air in the wake of a federal appeals court ruling that the bureau’s structure – one director who can only be fired for cause – is unconstitutional. In January, Sens. Ben Sasse (R-Neb.) and Mike Lee (R-Utah) told the President in a letter that he should fire Cordray, saying his tenure has been a “disaster” because of policies that have hurt small banks and limited consumers’ credit availability. If Cordray is ousted, recently retired Rep. Randy Neugebauer (R-Texas), a cosponsor of the auto finance guidance bill, is reportedly a candidate to fill that post, having met with Trump during the transition. HOUSE AND SENATE AUTO CAUCUSES Rep. Mike Kelly (R-Pa.) and Rep. Marcy Kaptur (D-Ohio) will continue as co-chairs of the House Auto Caucus, which is starting to recruit new members. Sens. Rob Portman (R-Ohio) and Sherrod Brown (D-Ohio) remain co-chairs of the Senate Auto Caucus.
www.oiada.com