OR 04/17 by NIADA

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 A P R I L 2 0 17

SAVE THE DATE

OIADA CONVENTION O C T O B E R 2 1 AT H O L I D AY I N N W I L S O N V I L L E

PA G E 13

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

INSIDE

06.................................................Is Your Sales Process a Hit? 08............................................Combatting Negative Reviews 09................................... Automotive Floorplan Management 10....................................Recruiting Strategies for Millennials 13................................................................OIADA Convention 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 DAA Northwest/Seattle.......................................................IFC Dealer Title Service................................................ Back Cover Lobel Financial .........................................................................3 Manheim ................................................................................11 NextGear Capital .....................................................................8 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

Christy Haynes • christy@niada.com PRINTING

Nieman Printing

ASSOCIATE MEMBERS Advertising / Marketing Autotrader.com 866-836-1455 Used Cars.Com by Dealix 650-599-5616 Cars.com James Lynch 312-601-5052 Carsforsale.com Grant Lockner 605-306-3492 Interactive financial Marketing Group Travis Weisieder 804-248-0892 Attorney Byrd Cabrera LLP Robert (Scott) Byrd 310-365-1954 Auto Parts AutoZone, Inc. Daniel Narvaez 971-218-2300 AutoZone Inc Ray Curry 503-964-9420 Bond & Insurance Hecht & Hecht Insurance Agency Larry Hecht 503-542-1130 Shepard & Shepard Business Solutions Todd Shepard 1-855-396-0488 #8 Kelly Martin Insurance Agency Kelly Martin 503-625-2615 Dealer Auction Manheim Seattle Auto Auction Ray Priest 206-762-1600 Manheim Portland Auto Auction Alex Fraser 503-286-3000 ADESA Seattle Auto Auction Mark Dumbler 253-735-1600 DAA Seattle Dave Blake 253-737-2200

United Vehicle Auctions Lori Jacoby 503-380-1927

Veros Credit John Pierce 714-415-6125 x21131

ADESA Northwest Auto Auction Mark Melton 541-689-3901

Reliable Credit Associations David Marx 503-462-3022

ADESA Portland Auto Auction Jerry Hinton 503-492-9200

Ted Investment LLC Tom Garza 503-213-1109

Crosspoint NW Dealer Auction Brian Hardy 503-594-2800 DAA Northwest (Dealers Auto Auction) Mitzi VanVoorhis 509-244-4500 Car Max Sean McDonald 804-747-0422 Dealer Software Frazer Computing Inc Michael Frazer 888-963-5369 Motor Vehicle Software Vitu John Brueggeman 546-270-6699 Financing Credit Acceptance John Bragg 360-980-2214 Lobel Financial David Lobel 714-816-1301 Oregon Auto Finance Gary Veum 541-868-0472 The Equitable Finance Co. Brandon Fox 503-808-7939 Pac West Credit LLC John Kiefer 541-868-2595 United Finance Todd May 503-238-6488 Oregon Community Credit Union Rich Black 541-681-6311 Nationwide Insurance Mark Tischer 503-339-4165 Credit Concepts Inc Jason Moon 541-342-8545

Floorplan Lobel Financial David Lobel 714-816-1301 NextGear Robert Torbet 503-358-3911 Floorplan Xpress Josh Chandler 503-621-9260 Auto Cap Services (ACS) Michael Smith 800-800-6494 Online Review Management Podium Kaylie Smart 801-376-0677 Public Auction Woodburn Auto Auction Steve Morin 503-981-8185 Petersen Auction Group of Oregon Curt & Susan Davis 541-689-6824 Security Pro-Vigil Kris Brackin 210-858-1105 Service Contracts AUL Corporation Jacqueline Swank 800-826-3207 Elite Warranty, Inc Al Ham 503-530-0912 Automotive Business Developers Shannon Meany 541-944-9186 Benchmark Dealer Services Jacob Bangert 360-834-3333 Protective Asset Dylan Doran 818-836-1455

BOARD OF DIRECTORS

OIADA / April 2017

PRESIDENT Siamak Lotfi

1ST VICE PRESIDENT Gary Brooks

EXECUTIVE VICE PRESIDENT Jim Weaver

SECRETARY/ TREASURER Salvador Alvarez Herrera Zamora Auto Sales

CHAIRMAN OF THE BOARD Gary Sargent

www.oiada.com

MANAGEMENT GAMEPLAN BY SCOTT BERGERON

IS YOUR SALES PROCESS A HIT? OR HIT AND MISS? Increase Your Batting Average Louis Pasteur said, “Chance favors the prepared mind.” When it comes to sales, this is the most important driver to long term success. Selling a vehicle comes down to two essentials. First, having someone to talk to who can buy. Second, being prepared so you don’t ruin your chances when you do have someone to talk to. All this means being organized in how you manage your sales process. The ultimate goal is to turn every opportunity into a sale. But since a 100 percent closing ratio never happens, the goal is to increase your batting average by consistent and correct execution of the basics. Shooting from the hip strategies never work as a game plan for success. These offthe-cuff processes typically rely on force of personality, which can be hit and miss depending on the salesperson’s mood. Charm may captivate one prospect and turn off the next, who feels as if it’s a put on. It can enthrall and entertain people in short bursts, but will only seal the deal with a select number of people. Salespeople accustomed to this type of selling may achieve a certain level of success, but it won’t ultimately rival what a well-organized, prepared salesperson can accomplish over the long term. Another analogy helps drive home the point even further. I call Denver home. Here, the Denver Broncos are as close to a religion as a sports team can be. In January, the Broncos’ coach, Gary Kubiak, resigned, citing health issues creating an inability to put in the amount of preparation time necessary for his standards. For him, that was a 5 a.m. to 10 p.m. regimen. The results of this approach are significant – in his first year as head coach, the Broncos won Super Bowl 50, proof the guy knows his stuff. There are likely very few salespeople who want to spend 17 hours a day preparing to sell cars. So it’s important to find other ways to help sales teams achieve. Here are a few important tips to develop an effective preparedness plan that doesn’t micromanage salespeople or make them feel like they’re stuck doing unnecessary hours of “homework”: Clarify objectives and goals by quantifying a sales funnel featuring prospects, sales, and activities needed for both. While this can get really detailed, the basics are straightforward. First, look at the forecast. To hit a certain forecast, the initial

OIADA / April 2017

step is to reverse-engineer the process. Second, determine the historical average of how many prospects (UPs) it takes to make a sale. Let’s say it’s 4:1, or a 25 percent closing ratio. If that’s the case, you’ll likely need 100 prospects to make 25 sales. Third, determine historically what you have averaged per sale in commission (or gross if you’re the dealer) to determine how many prospects (UPs) you would need to hit your forecast. In the real world a salesperson who wants to earn $5,000 consistently each month needs to know exactly how to do that. If a salesperson historically earns $280 per sale, then he needs to sell 18 cars to make over $5,000. If his closing ratio is historically 29 percent, he needs to talk to 62 prospects (UPs) to sell 18 cars. The key here is getting accurate data to be able to do the math. Look at how to improve on historical numbers. For example, sales training can improve closing ratios, as can listening and learning body language. The key is to be able to give the salespeople all the tools they need to be consistently successful. Many email prospecting campaigns, as an example, fail miserably because of overcommunication or coming across as pushy and self-serving. Today’s prospects want to know what’s in it for them and how you can help them get there. Use a CRM tool to track and help assess your sales team’s opportunities. I always try to get consistently better, whether I’m managing or selling directly, and to do that I need real data on my capabilities. Creating a doable plan is only half the battle. Fulfilling it is the other half. How many New Year’s resolutions are kept? Therein lies the difficulty, and the challenge. Keep the plan on track. Identify ways to improve it. Spot and repair weak links (e.g., sales team members not following through, either with their objective or reporting of it). Streamline processes further to make it even easier for your team to follow. Avoid the traps of assuming “there’s an APP for that.” When processes, especially sales processes, are overly complicated, technical, or not easily inspected, it almost always leads to failure. Sometimes, the simplest solutions are the best – particularly when they gain easy acceptance from the team. Two major considerations outweigh all others: A) Does the system provide basic key performance indicators (KPI) that managers can easily pull up and track? B) Is it easy for salespeople to learn, adopt and use consistently? Installing any new or exciting sales process can be tricky. The first step is to make sure it fits your dealership’s current selling style. There’s no need to reinvent the wheel here. Just make sure it fits. For example, older salespeople may be more inclined to use paper-based sales management systems, while digital processes via smartphones or workstations

SALES PROCESSES AND SYSTEMS ARE ALL ABOUT IMPROVING THE CUSTOMER AND SALESPERSON EXPERIENCE SO NOTHING IS LEFT TO CHANCE. OVERALL, MAKE SURE YOUR PROCESSES ARE WORKABLE AND WELL THOUGHT OUT, SO THEY CAN BECOME A CORNERSTONE OF YOUR SUCCESS. may be the overwhelming millennial preference. Keep your options open as both have strengths and weaknesses. Balance all this out by maintaining consistency. Sales processes and systems are all about improving the customer and salesperson experience so nothing is left to chance. Overall, make sure your processes are workable and well thought out, so they can become a cornerstone of your success. By deploying a consistent, balanced, and inspected sales system, you can steadily increase your bottom line and build a solid sales team for the long haul. Former dealer executive Scott Bergeron is the founder of Daily Gameplan.com, a sales team performance company. Scott can be reached at 303.918.3169 or scott@dailygameplan.com.

www.oiada.com

ONLINE MARKETING BY KENNY ATCHESON

FAKE NEWS ABOUT YOUR DEALERSHIP

Combatting Negative Reviews

There has been a lot of talk regarding fake news lately as the political season brought the problem to the forefront. However, fake news has been spreading for a long time – especially in the digital realm. Smaller businesses are able to compete with bigger businesses on the Internet. People can run video advertisements online at a fraction of the cost of television ads. Unfortunately, nefarious characters are also enabled to spread lies and propaganda on the Internet for the purpose of hurting others. Some fake news is meant to generate money. Fake news is often fronted by outlandish headlines meant to garner click-throughs so website owners can show advertisers their “news” gets millions of views per month. The fake news you should concern yourself with is what is being spread about your dealership. Just because you know the news is fake doesn't mean your potential customers do. A competitor or disgruntled employee can create a fictitious name, go to Google and write an online review telling people your dealership ripped him off. That scenario is rare. However, it’s not rare for actual customers to complain online about your dealership and leave out important details, such as how they missed payments for three months. The best lies – or fake news – to spread are those that contain some truth. Partial truths may be shared to start the communication, such as the online review that leads readers to trust what they consume before they get to the fake part. For example, a customer has had his car repossessed. He goes to your Google page and tells potential customers your dealership can't be trusted. He purchased a car and paid more than it was worth. When he was one day late on the payment he called the dealership to tell them the payment was on the way. The payment was late because he had to take his kid to the doctor – and then the

vehicle was repossessed from the hospital parking lot! What a big meanie you are. The truth: Someone at your dealership sold a vehicle to him at an agreed-on price – that, incidentally, he thought was fair at the time. He signed an agreement that the car would be repossessed if the payment was X days late. When the payment was one day late you spoke to him and told him to get his payment in by a certain date or you would be forced to repossess the vehicle. The customer did in fact purchase a vehicle from your dealership. Although it was at an agreed-on price, the stigma that used car dealers sell vehicles for more than they are worth is already out there. So the first two things the complaining customer said were true in the mind of the reader. That can – and does – lead whoever reads the negative online review to think the entire story is true. During a recent consulting call, a new client asked me how to stop getting negative reviews. It's a common question and worthy of a two-part answer. 1. L aunch a customer feedback and review system that encourages complaining customers to vent internally. There should be signage in the building and language in communications with customers alerting them where to go to share their feedback. Many customers who complain on Google or Facebook would use an internal system if there was one in place. If the dealership does not offer one, they complain publicly and leave out important details. We did a case study of one client who used our feedback and review system for their dealership. Out of 56 customer complaints, only two went public over a given time. 2. Saturate your dealership’s Google and Facebook pages with positive reviews. Having one or two negative reviews won't hurt as much if there are 150 positive reviews. Negative reviews will get buried by positive comments from happy customers. Fake news has been in the news so much lately because it can be highly detrimental to the country. It can also be highly detrimental to your business. You can choose to do something about it. Kenny Atcheson is the founder of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-theRadar Strategies to Explode Your Profits. To learn more, visit www.DealerProfitPros.com.

ASSOCIATION NEWS

2017 NIADA & COX AUTOMOTIVE COMMUNITY SERVICE AWARD Nomination Deadline May 12

Nominations are now open for the 2017 NIADA & Cox Automotive Community Service Award, presented by Manheim. The deadline for submission is May 12.

OIADA / April 2017

NOMINATE YOUR DEALERSHIP TODAY AT

WWW.COXAUTOINC.COM/COMMUNITY-SERVICE-AWARD. Reward your favorite charity with $10,000. Nominate a deserving independent dealership that works to find innovative and meaningful ways to collaborate with community partners. The winning dealership will be recognized at the 2017 NIADA Convention and will receive $10,000 for their local charity of choice, courtesy of Manheim. Dealerships must be a current member of NIADA to qualify. Nominate your dealership today at www.coxautoinc.com/communityservice-award.

www.oiada.com

MANAGEMENT MATTERS BY NEXTGEAR CAPITAL

AUTOMOTIVE FLOORPLAN MANAGEMENT BEST PRACTICES Capitalize on Your New Capital

Once a dealer is cleared to use an automotive floorplan, they instantly have access to more capital to aid in purchasing inventory. However, along with that instant access to more capital is a new set of management responsibilities. Keeping these best practices in mind will help dealers integrate their new capital into their current business plans, allowing them to use their floorplan more effectively. Fit the floorplan to the dealership. Dealers need to be aware of their own business numbers to optimally manage an automotive floorplan. What is the dealership’s average inventory turn time? How many cars need to be sold to meet operating expenses? What is the average profit margin per car? Knowing the answers to questions like these can give dealers key insights to help establish where they are, where they are going and how long it will take for a dealer to reach their goals. The answers to those questions can also provide clarity on how an automotive floorplan can fit into the current shape of the business.

Use floorplans for discipline. When a dealer uses cash or a regular business loan, there is no incentive to sell a car or profit quickly. Additionally, a dealer’s initial investment will depreciate depending on how long the vehicle stays on their lot. Floorplanning can help provide a dealership with discipline. Dealers have a given amount of time available until they have to pay a vehicle off. Use that deadline to the dealership’s favor. If a dealer hasn’t received a profitable offer on the vehicle due for payoff, that approaching deadline can jumpstart their inventory exit strategy process. Whether that exit strategy includes selling the car at auction, working with other local dealers, or holding out for a more profitable offer, the floorplan deadline ensures a dealer doesn’t just let their inventory, and their initial investment, depreciate. Always floorplan responsibly. A dealer’s business data combined with a floorplan can lead to excellent dealership profits. However, dealers need to make sure they floorplan responsibly. If a dealer uses their entire line of credit and those vehicles haven’t sold once payoff time arrives, that dealer is going to have a pretty hefty bill. Space out inventory purchases. That way, payoff dates are spaced appropriately for dealership cash flow, just in case inventory hasn’t sold before payoff time. Used together, these best practices allow dealers to purchase the inventory needed, provide incentive to profit and allow for manageable floorplan payments.

SALES MATTERS BY GEORGE DANS

CLOSE OR LOSE What If They Say No?

How many times have you heard the dreaded phrases, “We need to go home and think about it,” “This is our first place,” or, “I need to go home and talk to my wife”? According to Internet statistics, the average customer is spending over 15 hours of research when it comes to buying a vehicle. Doesn't that mean they have accomplished all of their pre-game activities prior to buying a car? Then why do they come in and say they’re just looking? The dreaded word “no” has destroyed so many good people because they haven't been professionally trained, developed or maintained to overcome it. My best advice is to set your sale up the right way so you can close the right way. Follow and execute the basics of selling with every single customer, every day, and I know you will sell more, close more, net more and profit more, and more success will follow you right to the bank. Closing is when you do something positive that is leading your prospect through the sales process. Every time your prospect says “yes” to you that’s a minor commitment toward the ending commitment, when you finally ask for the sale.

www.oiada.com

When is the best time to ask for the sale? It’s when you have built the value higher than the price in the prospect’s mind. One of the easiest closes to use is the summary close, which is like a designed play in sports. Three “yes” questions or minor commitments: 1. You did like the car, didn’t you? 2. Didn’t this have all the room you need? 3. Won’t this car save you money on gas in the long run? Positive statement: Steve, it sounds like you and I found the perfect car! Close: Will you be registering this in one name or two? Shut up. Like most great salespeople, when you ask for the close you have to make sure you shut up! Don’t over talk, don’t talk, just shut up. When you ask for the sale, let the prospect come back with an answer. Example if the answer is no: Flush out the objection – “Is it the car, make, model, equipment or the price?” Then shut up. “It’s the price!” Ask, “Are you writing a check or making payments?” Then shut up. “Payments.” “Sounds to me like you want to make sure it fits your needs and in your budget. Am I right?” Then shut up.

“Yes.” “Other than fitting this into your budget, is there any other reason why we couldn't wrap it up right now?” Then shut up. “No.” “Congratulations. Are you going to be registering this in one name or two?” Then shut up. “Two names!” “Follow me and let’s go write it up!” If you are an amateur, I’m sure you won’t practice or take the time to learn, absorb, repeat and master the above scripts. If you are a real professional, or on your way to becoming a professional, you know you have to practice the scripts so they don’t sound like a script. Pros practice until they can’t get it wrong. Read it, role play it, record it and watch how easy it is to close more sales.

April 2017 / OIADA

MANAGEMENT MATTERS BY ADAM ROBINSON

RECRUITING STRATEGIES TO ATTRACT MILLENNIALS Key Traits

By the year 2020, the U.S. workforce will be comprised almost entirely of millennials. What’s more, Generation Y accounted for aproximately 30 percent of new vehicle sales in 2016, and that number could double in 2017. Millennials are much more apt to make a purchase from a company with whom they identify and are even more trusting of purchases from employees who are like them. As a result, companies must now clearly communicate their viewpoints and company culture to potential millennial customers, and, perhaps most importantly, employ individuals who connect with that target audience. Unlike previous generations, millennials care more about fulfillment from their careers and evaluate potential jobs on a number of factors that can cater to this need. To retain these workers, organizations must tailor internal positions and programs to meet the needs of this growing workforce demographic. Also, recruitment strategies must be updated accordingly, to attract the best candidates effectively. Companies must first identify what millennials want. Here are key traits of what they look for in potential jobs, and how that plays a role in the recruitment process. What does millennial recruitment mean for dealerships? The dealership model has been in play for decades with little to no change. But these days, millennials want to work for a company that is not only profitable but making a difference in society and providing them with perks that will fit into their personal lives. Millennial needs from employers include the following. Income Reliability Due to the challenges of making large student loan payments and covering basic living expenses, millennials as a demographic are not interested in a commission-based position where pay is unreliable. Rather, they are interested in a base pay plan that gives them the confidence of a guaranteed stream of income. In the auto industry, providing base salary positions in lieu of commission will not only attract better talent but can provide a better customer experience as well. Work Flexibility Fewer millennials today believe in the 9-5 workday but prefer instead the flexibility to integrate their personal and professional lives. In an interview with Forbes, chief strategy officer Jamie Gutfreund said 88 percent of millennials consider how a potential job will cater to their work-life balance. While it may seem more challenging to provide scheduling

OIADA / April 2017

flexibility in your dealership, there are a number of options that can work for your organization. Examples include running two shifts – 9 a.m. to 3 p.m. and 3 p.m. to 9 p.m. – and perks such as giving every other weekend off. Some innovative dealerships have even moved to a “four days on, three days off” format where sales associates work four 10-hour workdays. Clear Job Titles and Descriptions Job descriptions and position titles must be updated for the millennial audience, highlighting the aspects that will fulfill their wants and needs. Outside of salaries and benefits, millennials are looking for a job with a higher purpose – one that makes them feel fulfilled. As a result, they are interested in companies focused on helping solve problems in society. In addition, because millennials are still relatively early on in their careers, they want job titles and responsibilities to outline the scope of the work clearly. They are interested in learning as much as they can to advance in their careers and want to know if a company is willing to invest in them through ongoing training and development programs. Lastly, when placing job openings online, be sure to use concise keywords and descriptors your target audience will most likely type into search engines when looking for open positions to help better connect you with ideal candidates. Consistent Communication In addition to clear communication of job responsibilities, millennials are interested in real-time feedback on the job. Because they appreciate knowing where they stand, along with the opportunity to consistently learn, maintain engagement with them by providing periodic, consistent check-ins as opposed to an annual review. A Bigger Picture As mentioned, millennials consider a number of factors from a potential position so as to feel fulfilled, maintain a work-life balance, continue career advancement and align with a company’s values. In exchange for their productivity and devotion, millennials are looking at what a company can offer them not just in monetary compensation, but how a job will fit into their overall life and society. Once you’ve successfully recruited top talent, it becomes imperative your dealership retains that employee. This is a particular challenge with the Gen Y employee. In fact, according to a recent 2016 Gallup report, 21 percent of millennials have changed jobs within the past year – more than three times the number of other generations. This turnover is estimated to cost the U.S. economy $30.5 billion annually. One of the biggest complaints millennials have is a lack of opportunities to move their career paths forward. One explanation for this is a company’s

preference to hire externally rather than promote from within. Hiring from within is more cost efficient and provides your millennial employees the chance to further engage with, and invest in, your company. Tailoring recruitment strategies to attract top talent to your workforce, and providing them with ongoing opportunities for advancement and support, will help ensure your millennial employees will connect with your company and provide loyalty and dedication for years to come. Adam Robinson is the co-founder and CEO of Hireology and a noted recruiting industry expert, speaker and author with more than 20 years of experience in the field of hiring and selection management. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute. com) and is reprinted with permission.

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.

ere 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 9150 SW Pioneer Ct. Ste. H in Wilsonville. 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.

act OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a ber of OIADA.

nnual Savings 1100 Auction Punch Card 100 Forms 75 Education 100 OIADA Convention 50 Driven to Learn & Regional Meetings 1425 Bottom Line Savings Cost of Membership ~ OIADA helping you succeed.

OIADA / April 2017

www.oiada.com

OIADA CONTINUING EDUCATION PROGRAM sponsored by onstar.com / trialon

READ & RESPOND AND CERTIFY BELOW OIADA CONTINUING E D U C AT I O N P R O G R A M

SAVE-THE-DATE O I A DA C O N V E N T I O N O C T O B E R 2 1 AT H O L I D AY I N N W I L S O N V I L L E

COMPLE T E T HIS T EST AND CERTIF Y BELOW T HAT YOU HAV E RE AD T HE ARTICLES FOR APRIL 2017

“IS YOUR SALES PROCESS A HIT? OR HIT AND MISS?” True/False: Shooting from the hip strategies never work as a game plan for success. True/False: By deploying a consistent, balanced, and inspected sales system, you can steadily increase your bottom line and build a solid sales team for the long haul. “FAKE NEWS ABOUT YOUR DEALERSHIP” How can you combat negative reviews? a) Launch a customer feedback and review system that encourages complaining customers to vent internally. b) Saturate your dealership’s Google and Facebook pages with positive reviews. c) Both A and B. True/False: “Fake news” is a new trend you need not worry about. “AUTOMOTIVE FLOORPLAN MANAGEMENT BEST PRACTICES” What best practice should you keep in mind to use your floorplan more effectively? a) Fit the floorplan to the dealership. b) Use floorplans for discipline. c) Always floorplan responsibly. d) All of the above. True/False: A dealer’s business data combined with a floorplan can lead to excellent dealership profits. “RECRUITING STRATEGIES TO ATTRACT MILLENNIALS” True/False: Unlike previous generations, millennials care more about fulfillment from their careers and evaluate potential jobs on a number of factors that can cater to this need.

I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for April 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

April 2017 / OIADA

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 lobbyist Sante Esposito of Key Advocates and NIADA senior vice president of legal and government affairs Shaun Petersen. LEGISLATIVE REPORT By Sante Esposito D.C. MEETINGS NIADA’s leadership visited Washington on Feb. 27-28 for a series of legislative meetings. The NIADA contingent included CEO Steve Jordan, president Billy Threadgill, presidentelect David Andrews, legislative committee chairman Henry Mullinax, senior vice president of legal and government affairs Shaun Petersen and Key Advocates. That group had more than 20 meetings to provide legislators and others information about NIADA and to convey the association’s legislative priorities for 2017 – a list headed by the issue of recalled vehicles and the Consumer Financial Protection Bureau’s impact on the auto industry. In addition to 12 Senate offices and committees – including meetings with Sens. Lamar Alexander (R-Tenn.), Bob Corker (R-Tenn.) and Luther Strange (R-Ala.) – and seven House offices and committees, NIADA attended a meeting of the Republican Attorneys General Association and met with NADA to discuss the associations’ mutual interests. FINANCIAL CHOICE ACT Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, circulated an outline of potential changes to the Financial CHOICE Act he introduced during the previous Congress. Hensarling is expected to re-introduce the bill, which includes a series of reforms of the CFPB, but there could be a number of changes. One reportedly under consideration is whether to keep the bureau’s leadership in the hands of a single director but to allow that director to be removed by the President at will, as opposed to only for cause as is currently the case (pending an appeals court ruling), or to have a five-member commission, as proposed by the bill’s previous version. Other changes could include removing the CFPB’s authority to regulate unfair, deceptive or abusive acts and practices violations, and limiting its rulemaking to enumerated financial statutes such as the Truth in Lending Act. While the revised Financial CHOICE Act has not yet been put forward, several other

OIADA / April 2017

bills have already been introduced to change the structure or limit the authority of the CFPB. In fact, bills have been introduced in both houses to eliminate the bureau entirely. The House bill (H.R.1031), introduced Feb. 14 by Rep. Jon Ratcliffe (R-Texas), now has 17 cosponsors, while the Senate version (S.370), introduced the same day by Sen. Ted Cruz (R-Texas), has four cosponsors. REGULATORY REPORT By Shaun Petersen FEDERAL TRADE COMMISSION Bureau of Consumer Protection: Jessica Rich, a past speaker at the NIADA Convention and Expo and the National Leadership Conference and Legislative Summit, resigned as director of the FTC’s Bureau of Consumer Protection. Tom Pahl, an attorney who had previously served as assistant director of the Bureau of Consumer Protection, has been appointed acting director. On March 1, I met with Mr. Pahl and his senior staff in Washington to introduce him to NIADA and the association’s priorities. Fair lending report: The FTC transmitted its annual report of enforcement activity related to fair lending and the Equal Credit Opportunity Act. The report said the FTC has proposed a qualitative survey of consumers designed to provide useful insights into consumer understanding of the automobile purchasing and financing process at dealerships. The report said it would seek consumer interviews as well as their purchase and finance documents. CONSUMER FINANCIAL PROTECTION BUREAU The CFPB has launched an inquiry into ways to expand access to credit for consumers who are “credit invisible” or lack enough credit history to obtain a credit score. The bureau is seeking public feedback on the benefits and risks of tapping alternative data sources to make lending decisions about consumers whose lack of credit history might otherwise block opportunities. The CFPB estimated 26 million Americans are credit invisible, meaning they have no credit history with a nationwide consumer reporting agency. Another 19 million consumers have a credit history that has gone stale or is insufficient to produce a credit score under most scoring models. The initiative includes looking at alternative data as a way to build a credit history and gain access. Alternative data draws from sources such as bill payments for mobile phones and rent, and electronic transactions such as deposits, withdrawals or transfers. The bureau is also exploring risks posed by alternative data that is inconsistent, incomplete, incorrect, overgeneralized or biased.

THE BUREAU IS SEEKING PUBLIC FEEDBACK ON THE BENEFITS AND RISKS OF TAPPING ALTERNATIVE DATA SOURCES TO MAKE LENDING DECISIONS ABOUT CONSUMERS WHOSE LACK OF CREDIT HISTORY MIGHT OTHERWISE BLOCK OPPORTUNITIES. DEPARTMENT OF JUSTICE Paul Robinson of Lawrenceville, Ga., pleaded guilty to one count of conspiracy to commit securities fraud and odometer tampering in U.S. District Court in Norfolk, Va. As owner and operator of Affordable Auto Body Repair, a repair shop and licensed salvage vehicle dealer in Chesapeake, Va., Robinson purchased older vehicles – many of which had been involved in accidents – from an auto auction specializing in vehicles from insurance companies. On more than 100 of those vehicles, Robinson altered or replaced the odometer to reflect a false, lower mileage. He then obtained fraudulent Virginia motor vehicle titles with mileage readings matching the false odometer readings and passed the falsified title documents on to auto purchasers. Robinson obtained many of those fraudulent titles from a former DMV Select clerk. STATE ACTIVITY New Jersey: After a bill regulating the use of GPS and starter-interrupt technology passed the state legislature, Gov. Chris Christie conditionally vetoed many of the bill’s most problematic provisions, including a mandatory interest rate reduction for use of starter interrupt devices. The New Jersey Assembly has concurred with the governor’s changes and a vote to consider those changes is pending in the Senate.