Texas Dealer February 2024

The

FTC

CARS RULE Also in this issue: – Michael W. Dunagan: Negligent Entrustment — When is a Dealer Liable?

– Optimize Your Dealership’s Service Department for Technicians – Mastering the Art of Online Car Salesmanship – Boost Your Texas Dealership’s Online Presence with SEO and Google Business Profile

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TIADA Board of Directors PRESIDENT Eddie Hale/Neighborhood Autos PO Box 1719 Decatur, TX 76234 PRESIDENT ELECT Vicki Davis/A-OK Auto Sales 23980 FM 1314 Porter, TX 77365 CHAIRMAN OF THE BOARD Ryan Winkelmann/BJ’s Autohaus 5005 Telephone Road Houston, TX 77087 SECRETARY Greg Phea/Austin Rising Fast 8024 IH 35 North Austin, TX 78753 TREASURER Brad Kalivoda/Fiesta Motors 2599 74th Street Lubbock, TX 79423 ICE PRESIDENT, WEST TEXAS V (REGION 1) Cesar Stark/S&S Motors 7699 Alameda Ave. El Paso, TX 77915 ICE PRESIDENT, FORT WORTH V (REGION 2) Tyler Simmons/Abilene Used Car Sales, Inc. 2150 N. 1st Street Abilene, TX 79603 ICE PRESIDENT, DALLAS V (REGION 3) Greg Reine/Auto Liquidators 39670 LBJ Freeway Dallas, TX 75237 ICE PRESIDENT, HOUSTON V (REGION 4) Lowell Rogers/11th Street Motors 1355 N 11th St, Beaumont, TX 77702 ICE PRESIDENT, CENTRAL TEXAS V (REGION 5) Chad Lancaster/Chacon Autos 11800 E. Northwest Hwy Dallas, TX 75218 ICE PRESIDENT, SOUTH TEXAS V (REGION 6) Cesar Torres/Lofi Motors 4634 Ayers St. Corpus Christi, TX 78415 ICE PRESIDENT AT LARGE V Armando Villarreal/McAllen Auto Sales, LLC 4215 S. 23rd St McAllen, TX 78503 ICE PRESIDENT AT LARGE V Russell Moore/Top Notch Used Cars 900 East Davis Conroe, TX 77301

TIADA EXECUTIVE DIRECTOR John Frullo 9951 Anderson Mill Rd., Suite 101 Austin, TX 78750 Office Hours M-F 8:30am – 4:30pm 512.244.6060 • Fax 512.244.6218 john.frullo@txiada.org

Volume XXIV / Is sue 2 / Februar y 2024

TexasDealer

contents

4 Officers’ Message

by Brad Kalivoda, TIADA Treasurer

6 TIADA Membership Application 10 TIADA Auction Directory 13 Boost Your Texas Dealership’s Online Presence with SEO and Google Business Profile: A Powerful Duo for Driving More Traffic and Sales

by AutoSweet

15 Save the Date: 2024 TIADA Conference & Expo 17 Legal Corner: What Is Negligent Entrustment and When Is A Dealer Liable For Accidents Caused by His Buyer?

by Michael W. Dunagan

20 Upcoming Events 24 On The Cover: The FTC CARS Rule

by TIADA Staff

29 That Time of Year: Tax Season

by Brent Carmichael

31 How to Optimize Independent Dealership Service Departments for Technicians

by Sara Kerwin

32 Local Chapters 33 Used Car Dealer Marketing in 2024: Innovative Strategies for Digital Advertising and Social Media

by Sean Cassy

37 New Members 40 Scholarship Application 41 Mastering the Art of Online Car Salesmanship

by Andrew Smith

46 Behind the Wheel

by John Frullo

Did You Know?TIADA has a brand new in-person

seminar. The BHPH Compliance Summit features representatives from TxDMV, OCCC, the Texas Comptroller of Public Accounts, and TIADA Counsel Michael W. Dunagan. Turn to page 9 or visit. https://www.txiada.org/bhph_compliance_ summit for more information and registration.

Notice to all members concerning services and products: TIADA was established in 1944 to develop professional standards of service and conduct for the independent auto industry. Opinions expressed herein are not necessarily those of the TIADA management, the Board of Directors or the membership. Likewise, the appearance of advertisers or their indemnifications of TIADA does not constitute endorsement of the products or services featured.

Editor: Stephen Pallas

Magazine Ad Sales: Patty Huber, 512-310-9795

officers’ message

by Brad

Kalivoda

From Boss to Coach

O

wner, operator, manager, team lead, boss… no matter the title you go by or even your role in the organization, I want to encourage you to have the heart and thought process of a coach, not a boss. A boss and a coach essentially have the same goal in mind: lead a team to a desired outcome. However, their approach to that pathway can differ significantly.

More importantly, how those teams perform and interact together can also differ.

Many of us have been fortunate enough to have a great coach in our lives at some point. Sports, the arts, or even at work, where a person invested time and energy to help us achieve more than we thought possible ourselves. If you have been fortunate enough to experience that process, you can probably remember how satisfying that feeling was. Coaches can be tough on you, tell you hard truths, and push you when you don’t want to be pushed any further. Yet we still revere the experience and work just as hard for the coach as we do for ourselves.

So, what are two things we can be aware of to help make us great coaches in our dealerships?

Let’s start with feedback. A coach will offer continuous and constructive feedback. They emphasize where a person needs to improve and how to achieve that.

A boss typically gives very limited feedback during a period and then holds a more formal meeting to tell

Fiesta Motors (Lubbock) TIADA TREASURER

where someone missed the mark. If there was constant feedback along the way, it’s possible that employee would not have missed their goal because they could have made adjustments along the way. That’s where the coach wins. There is no way a coach would let his players make the same mistake game after game and then tell them at the end of the season. “You could have won more tournaments if you would have fixed your backswing.” That coach is in there after every strike of the ball, correcting and guiding that athlete on how to win.

What about decision-making? A boss makes the decisions. They instruct employees as to what tasks need to be done, and when there is a problem, they are the ones finding the solution. A coach, on the other hand, guides the decision-making progress by asking questions and getting the employee to think about what should happen next. Building that autonomy in an employee where they feel empowered to make decisions is a good feeling for the employee and takes stress off the coach.

This process will take your time and energy, and wrong decisions are going to be made. But once that time is invested, employees start problem-solving on their own. They are happier, and so is the coach.

Next time you’re looking for something to read or listen to, grab a topic on coaching. They can really give some great ideas and motivation to help you build a winning team. So, get in there, coach! Let’s go win the day!

No matter your role in the organization, I want to encourage you to have the heart and thought process of a coach, not a boss.

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February 2024

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• Collateral Protection Insurance • Vehicle Service Contracts • GAP Waivers

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Streamline and Scale your Dealership Operations Experience the Value of Cloud-Based DMS Inventory Management Sales Processing Compliance Forms Reporting & Analytics DMS Integrations With over 200 tools from industry-leading partners to choose from, customize a suite of solutions tailored to fit your dealership’s needs, ensuring you not only meet but exceed operational exceptations.

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February 2024

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5

Become a TIADA Member Business Name: ___________________________________________ Select one:

q Dealer Member

q Associate Member

Contact Person: ____________________________________________

City: ____________________________________ State:____________

Membership Dues:

Zip:_________________ County: _____________________________

$499

E-mail address: ____________________________________________

Dues include NIADA and local chapter membership where applicable

Address: _________________________________________________

Business Phone: ______________________ Fax: ________________ Cell Phone: _______________________________________________ Dealer P Number: __________________________________________ Who referred you to TIADA? __________________________________________________________________________ Mailing Address (if different from above): _________________________________________________________________________________________________ City: ____________________________________________________ State:_____________ Zip: ___________________ _________________________________________________________________________________________________ PLEASE INDICATE PAYMENT METHOD: q

Check or Money Order (payable to TIADA) Check# ___________

q

Credit Card Card Number: _____________________________ Sec. Code: _______ Expiration Date:____________________

q

via Bank Draft (Authorization Agreement Required – email accounting@txiada.org to get set up)

q

Monthly Payment via Credit Card (Dealer Members Only; Please enter card information above) - $42.83 per month Mail or Fax Application To: TIADA Membership Services, 9951 Anderson Mill Rd., Suite 101, Austin, TX 78750 FAX 512.244.6218

www.txiada.org

512.244.6060

Dues are not deductible as charitable contributions for income tax purposes but may be deductible as miscellaneous itemized deductions, subject to IRS restrictions. It is estimated that 20 percent of your dues dollars is used for lobbying activities and therefore not deductible.

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February 2024

o

tex

dealers

as ind

le

ep

e

nt autom

bi

ROAD TO CONFERENCE

e nd

a s TIADA n s o c i at i o

Recruitment Challenge *

Have a cup of coffee on us.

Actually, have 4 cups. Recruit a new member and we will send you a $10 gift card — and we’ll do that for the first 4 members you recruit.

Receive top-notch education.

Recruit 5 new members by June 30th and you will receive one free registration to the 2024 TIADA Conference & Expo.

JULY 21-23, 2024 SAN ANTONIO, TX

20 24

Relax with the family and turn work into pleasure.

Recruit 10 new members by June 30th and you will also receive your hotel room for free (up to two nights) at the JW Marriott Hill Country Resort in San Antonio during the TIADA conference.

Travel to Vegas, Orlando or somewhere else!

Recruit 20 members and you will receive an all-expense trip for you and a guest to attend 2025 NIADA Convention & Expo.

* This promotion is only valid for active dealer members.

Contact TIADA for details.

512.244.6060

Auto Dealer Solutions

Houston, TX

BHPH

Compliance Summit

4

Monday

March

2024

9:00 a.m. – 4:00 p.m.

Lunch will be included

a can't-miss educational experience Featuring representatives from the Texas Department of Motor Vehicles (TxDMV), the Office of Consumer Credit Commissioner (OCCC), the Texas Comptroller of Public Accounts, and long-time TIADA Counsel Michael W. Dunagan.

MEMBERS — $249 1st Registrant each additional $199 (must be from the same dealership) NON-MEMBERS — $498

To register visit

tx i a d a . or g or

call 512.244.6060

TIADA Auction Directory

Save thousands on buy or sell fees at these participating auctions! * VALID FOR SELL FEE ONLY AT INSURANCE AA LOCATIONS ** ONLINE AUCTION AVAILABLE

Abilene

ALLIANCE AUTO AUCTION ABILENE**

www.allianceautoauction.com 6657 US Highway 80 West, Abilene, TX 79605 325.698.4391 GM: Brandon Denison Friday, 9:45 a.m.

$AVE : $200

IAA ABILENE*

www.iaai.com 7700 US 277, Hawley, TX 79601 325.675.0699 GM: Shaun Lemke Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Amarillo

DAX of AMARILLO** NEW

www.daxofamarillo.com 3208 SE 10th Ave., Amarillo, TX 79104 806.374.8982 GM: Kelsy Allen Every Tuesday, 11:00 a.m.

$AVE : $200

IAA AMARILLO*

www.iaai.com 11150 S. FM 1541, Amarillo, TX 79118 806.622.1322 GM: Shawn Norris Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Austin

ADESA AUSTIN**

www.adesa.com 2108 Ferguson Ln., Austin, TX 78754 512.873.4000 GM: Michele Arguijo Tuesday, 9:30 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION AUSTIN**

IAA DALLAS*

$AVE : up to $200 Sell Fee

$AVE : up to $200 Sell Fee

www.iaai.com 2191 Highway 21 West, Dale, TX 78616 512.385.3126 GM: Rick Hahn Tuesday, 9:30 a.m.

www.iaai.com 204 Mars Rd., Wilmer, TX 75172 972.525.6401 GM: Terrie Smith Wednesday, 9:30 a.m.

METRO AUTO AUCTION AUSTIN

IAA DFW*

$AVE : $200

$AVE : up to $200 Sell Fee

www.metroautoauction.com 2221 Hwy 21 W., Dale, TX 78616 512.282.7900 GM: Brent Rhodes 3rd Saturday monthly, 9:00 a.m.

Corpus Christi CORPUS CHRISTI AUTO AUCTION**

www.corpuschristiautoauction.com 2149 IH-69 Access Road, Corpus Christi, TX 78380 361.767.4100 GM: Hunter Dunn Friday, 10:00 a.m.

$AVE : $200

IAA CORPUS CHRISTI*

www.iaai.com 4701 Agnes Street, Corpus Christi, TX 78405 361.881.9555 GM: Patricia Kohlstrand Wednesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Dallas-Ft. Worth Metroplex ADESA DALLAS**

www.adesa.com 3501 Lancaster-Hutchins Rd., Hutchins, TX 75141 972.225.6000 GM: Eric Jenkins Thursday, 9:30 a.m.

$AVE : $200

ALLIANCE AUTO AUCTION DALLAS**

www.iaai.com 4226 East Main St., Grand Prairie, TX 75050 972.522.5000 GM: Julissa Reyes Monday, 9:30 a.m.

IAA FORT WORTH NORTH*

www.iaai.com 3748 McPherson Dr., Justin, TX 76247 940.648.5541 GM: Jack Panczyk Tuesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

MANHEIM DALLAS**

www.manheim.com 5333 W. Kiest Blvd., Dallas, TX 75236 214.330.1800 GM: Rich Curtis Tuesday 9:30am / Wednesday, 9:00 a.m.

$AVE : $100

MANHEIM DALLAS FORT WORTH**

www.manheim.com 12101 Trinity Blvd., Fort Worth, TX 76040 817.399.4000 GM: Glenna Bishop Thursday, 9:30 a.m.

$AVE : $100

METRO AUTO AUCTION DALLAS**

www.metroaa.com 1836 Midway Road, Lewisville, TX 75056 972.492.0900 GM: Scott Stalder Tuesday, 9:30 a.m.

www.allianceautoauction.com 1550 CR 107, Hutto, TX 78634 737.300.6300 GM: Brad Wilson Thursday, 9:15 a.m.

www.allianceautoauction.com 9426 Lakefield Blvd., Dallas, TX 75220 214.646.3136 GM: Robert Kersh Wednesday, 12:30 p.m.

$AVE : $200

$AVE : $200

AMERICA’S AA AUSTIN**

AMERICA’S AA DALLAS**

AMERICA’S AUTO AUCTION EL PASO

$AVE : $200

$AVE : $200

El Paso

www.americasaa.com 219 N. Loop 12, Irving, TX 75061 972.445.1044 GM: Ruben Figueroa Tuesday, 12:00 p.m. / Thursday, 12:30 p.m.

www.aaaelpaso.com 7930 Artcraft Rd., El Paso, TX 79932 915.587.6700 GM: Judith Ayub Wednesday, 9:30 a.m. MST

$AVE : $200

$AVE : $200

AMERICA’S AA LONE STAR AUSTIN NEW

DAX of ROCKWALL** NEW

IAA EL PASO*

$AVE : $200

$AVE : $200

$AVE : up to $200 Sell Fee

www.americasaa.com 16611 S. IH-35, Buda, TX 78610 512.268.6600 GM: Jamie McCollum Tuesday, 1:00 p.m. / Thursday, 1:00 p.m.

www.americasaa.com 8408 Shoal Creek Blvd., Austin, TX 78757 214.483.3597 GM: Sara Edgington Friday and Every Other Thursday, 11:00 a.m.

10

IAA AUSTIN*

www.daxofrockwall.com 1810 E I-30, Rockwall, TX 75087 972.771.9919 GM: Tim Clement Tuesday, 6:00 p.m. / Thursday, 2:00 p.m.

www.iaai.com 14651 Gateway Blvd. W, El Paso, TX 79927 915.852.2489 GM: Hector Escobar Wednesday, 9:30 a.m. MST T e x a s

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February 2024

MANHEIM EL PASO**

www.manheim.com 485 Coates Drive, El Paso, TX 79932 915.833.9333 GM: JD Guerrero Thursday, 10:00 a.m. MST

$AVE : $100

IAA HOUSTON SOUTH*

www.iaai.com 2839 E. FM 1462, Rosharon, TX 77583 281.369.1010 GM: Roxy Castillo Friday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Harlingen/McAllen

MANHEIM HOUSTON**

IAA McALLEN*

www.iaai.com 900 N. Hutto Road, Donna, TX 78537 956.464.8393 GM: Ydalia Sandoval Tuesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

BIG VALLEY AUTO AUCTION**

www.bigvalleyaa.com 4315 N. Hutto Road, Donna, TX 78537 956.461.9000 GM: Lisa Franz Thursday, 9:30 a.m.

$AVE : $200

www.manheim.com 14450 West Road, Houston, TX 77041 281.890.4300 GM: Nick Hanson Tuesday, 9:30 a.m.

$AVE : $100

MANHEIM TEXAS HOBBY**

www.manheim.com 8215 Kopman Road, Houston, TX 77061 713.649.8233 GM: Darren Slack Thursday, 9:00 a.m.

$AVE : $100

Houston

Longview

www.adesa.com 4526 N. Sam Houston, Houston, TX 77086 281.580.1800 GM: Keyvan Nayeri Wednesday, 9:30 a.m.

www.allianceautoauction.com 6000 SE Loop 281, Longview, TX 75602 903.212.2955 GM: Billy Fitzgerald Friday, 9:30 a.m.

AMERICA’S AA HOUSTON**

IAA LONGVIEW*

ALLIANCE AUTO AUCTION LONGVIEW**

ADESA HOUSTON**

$AVE : $200

www.americasaa.com 1826 Almeda Genoa Rd., Houston, TX 77047 281.819.3600 GM: Kyle Drake Thursday, 2:00 p.m.

$AVE : $200

AMERICA’S AA NORTH HOUSTON** www.americasaa.com 1440 FM 3083, Conroe, TX 77301 936.441.2882 GM: Buddy Cheney Tuesday, 1:00 p.m.

$AVE : $200

AUTONATION AUTO AUCTION - HOUSTON** www.autonationautoauction.com 608 W. Mitchell Road, Houston, TX 77037 855.905.2622 GM: Juan Gallo Friday, 9:15 a.m.

$AVE : $200

HOUSTON AUTO AUCTION**

www.houstonautoauction.com 2000 Cavalcade, Houston, TX 77009 713.644.5566 GM: Rich Levene Tuesday, 12:00 p.m.

$AVE : $200

IAA HOUSTON*

www.iaai.com 2535 West. Mt. Houston, Houston, TX 77038 281.847.4700 GM: Alvin Banks Wednesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

$AVE : $200

www.iaai.com 5577 Highway 80 East, Longview, TX 75605 903.553.9248 GM: Ulysses Else Thursday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Lubbock AMERICAS AA LONE STAR LUBBOCK** www.americasaa.com 2706 E. Slaton Road., Lubbock, TX 79404 806.745.6606 GM: Dale Martin Wednesday, 9:00 a.m

$AVE : $75/Quarterly

IAA LUBBOCK*

www.iaai.com 5311 N. CR 2000, Lubbock, TX 79415 806.747.5458 GM: Chris Foster Tuesday, 9:30 a.m.

$AVE : up to $200 Sell Fee

Lufkin LUFKIN DEALERS AUTO AUCTION

www.lufkindealers.com 2109 N. John Reddit Dr., Lufkin, TX 75904 936.632.4299 GM: Wayne Cook Thursday, 5:30 p.m.

$AVE : up to $200 Sell Fee

$AVE : up to $200 Sell Fee

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www.adesa.com 200 S. Callaghan Rd., San Antonio, TX 78227 210.434.4999 GM: Clifton Sprenger Thursday, 9:00 a.m.

$AVE : $200

IAA SAN ANTONIO*

www.iaai.com 11275 S. Zarzamora, San Antonio, TX 78224 210.628.6770 GM: Paula Booker Monday, 9:30 a.m.

$AVE : up to $200 Sell Fee

MANHEIM SAN ANTONIO**

www.manheim.com 2042 Ackerman Road, San Antonio, TX 78219 210.661.4200 GM: Mike Browning Wednesday, 9:00 a.m.

$AVE : $100

SAN ANTONIO AUTO AUCTION**

www.sanantonioautoauction.com 13510 Toepperwein Rd., San Antonio, TX 78233 210.298.5477 GM: Brandon Walston Tuesday, 9:00 a.m

$AVE : $200

Tyler GREATER TYLER AUTO AUCTION** www.greatertyleraa.com 11654 Hwy 64W, Tyler, TX 75704 903.597.2800 GM: Wayne Cook Tuesday, 5:00 p.m.

$AVE : $200

Waco ALLIANCE AUTO AUCTION WACO**

www.allianceautoauction.com 15735 I-35 Frontage Road, Elm Mott, TX 76640 254.829.0123 GM: Christina Thomas Friday, 9:45 a.m.

$AVE : $200

Wichita Falls

DAX of WICHITA FALLS** NEW

www.daxofwichitafalls.com 2206 Sheppard Access Rd., Wichita Falls, TX 76306 940.720.0435 GM: Lisa Shelton Every Other Wednesday, 5:00 p.m.

$AVE : $200

Midland Odessa IAA PERMIAN BASIN*

February 2024

ADESA SAN ANTONIO**

$AVE : $200

IAA HOUSTON NORTH*

www.iaai.com 16602 East Hardy Rd., Houston-North, TX 77032 281.443.1300 GM: Aracelia Palacios Thursday, 9:30 a.m.

San Antonio

www.iaai.com 701 W. 81st Street, Odessa, TX 79764 432.550.7277 GM: Sheila Gray Thursday, 9:30 a.m.

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On-Demand Offerings

Featured Courses TIADA designed and implemented some important on-demand courses to give dealers quality educational programs they can access throughout the year. These programs are essential for dealers to stay compliant. They offer flexibility, so you can complete them according to your schedule. These courses are designed for any dealers with questions related to various regulations that affect their businesses.

Repossession 101: What You Need to Know In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of self-help repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.

$98 for two 1-hour videos

The Basics of Transferring Titles* Want to avoid having your title transfer paperwork rejected at the tax office? This online course is designed to walk you through the title transfer process and is best suited for people new to transferring titles or those who want to brush up on the basics. This course has been reviewed for accuracy by the Tax Assessor-Collectors Association of Texas.

$48 for the course

To register visit Txiada.org/on-demand Call us at 512.244.6060 or email us if you need assistance.

Texas Independent Automobile Dealers Association

*Also available in Spanish

feature

Boost Your Texas Dealership’s Online Presence with SEO and Google Business Profile: A Powerful Duo for Driving More Traffic and Sales

by AutoSweet

RAFAEL HENRIQUE - STOCK.ADOBE.COM

I

n today’s digital age, car dealerships need a strong online presence to attract customers and stay ahead of the competition. This is especially true in Texas, where a large and tech-savvy population relies heavily on the internet for their car-buying journey.

Two essential tools can help you achieve this: search engine optimization (SEO) and Google Business Profile (GBP). While both have their own strengths and weaknesses, using them together can create a powerful synergy that drives more traffic and sales to your dealership.

SEO: Ranking Higher in Search Results

SEO is the practice of optimizing your website and online content to rank higher in search engine results February 2024

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pages (SERPs). This means that when potential customers search for keywords related to car dealerships, your website is more likely to appear near the top of the results.

There are many SEO techniques you can use, such as: K eyword research: Identify the keywords that people are using to search for car dealerships in your area.

O n-page optimization: Use relevant keywords throughout your website content, including titles, meta descriptions, and headings.

B acklink building: Get other websites to link to your website, which signals to search engines that your site is authoritative and trustworthy.

T echnical SEO: Make sure your website is 13

mobile-responsive, has a fast loading speed, and is free of technical errors.

SEO can be a complex and time-consuming process, but it’s a valuable investment for any dealership that wants to attract more organic traffic from search engines.

Google Business Profile (GBP): Your Free Local Marketing Tool

GBP is a free tool from Google that allows you to create a profile for your dealership on Google Search and Google Maps. This profile includes important information such as your address, phone number, website, hours of operation, and photos.

GBP is essential for local SEO, as it helps your dealership appear in the “3-pack” of results that show up at the top of search results for local queries. It also allows customers to leave reviews, ask questions, and even message you directly through your profile. This is important because over 46% of searches have local intent and the “3-Pack” appears in 93% of those search results.

Here are some of the benefits of using GBP: I ncreased visibility: Your dealership will appear in Google Search and Maps, making it easier for potential customers to find you.

I mproved engagement: Customers can leave reviews, ask questions, and message you directly, building trust and credibility.

F ree to use: GBP is a free tool from Google, making it a great option for dealerships with limited marketing budgets.

Using SEO and GBP Together

While SEO and GBP can be used independently, they are most effective when used together. Here are some tips for combining them: U se local keywords in your SEO efforts. This will help your dealership rank higher in local search results.

O ptimize your GBP profile for relevant keywords.

This will help your profile appear in the “3-pack” of results.

E ncourage customers to leave reviews on your GBP profile. Positive reviews can help boost your ranking in local search results.

U se GBP posts to promote your dealership’s specials and events. This can help attract new customers and drive traffic to your website.

By using SEO and GBP together, you can create a powerful online presence that attracts more customers and drives more sales to your Texas car dealership.

Additional Tips for Texas Dealerships

THURSDAYS 3 AM SALE STARTS at 9:00 (Fleet/Lease and Dealer Consignment)

8:30 AM SALVAGE AND INOPS SALE MONTHLY: GSA General Services Adminitration— open to the public www.autoauctions.gsa.gov • 900+ vehicles every week!

• 7 Lanes • Online Sales: TAP, Simulcast, Smart Auction, OVE, ADESA Openlane • Great Sellers - Featuring units from Ally, Avis Budget Group, Hertz, Santander and more • 85 paved acres—all concrete—one of few in the country • Marshalling room for 15,000+ vehicles

SERVICES: • MECHANIC SHOP: We offer a full range of make-ready repairs and maintenance.

Our one-stop shop makes units sales-floor ready faster!

• BODY SHOP: Team of dedicated experts offers full-service cosmetic repair and conditioning

M obile-friendliness is essential. Make sure your website and GBP profile are optimized for mobile devices, as most car shoppers in Texas use their smartphones to research dealerships.

U se high-quality photos and videos. Showcase your inventory and dealership with attractive visuals that will capture the attention of potential customers.

O ffer competitive pricing and financing options.

Texas car buyers are price-conscious, so make sure your dealership offers competitive prices and financing options to stay ahead of the competition.

P rovide excellent customer service. Building a positive reputation is essential for attracting and retaining customers. Make sure your dealership provides excellent customer service throughout the entire sales process.

By following these tips and using SEO and GBP effectively, you can ensure that your Texas car dealership thrives in the competitive online marketplace.

• Full-service transportation department • Title processing in-house

1028 S. Portland Oklahoma City, OK 73108 405.947.2886 // daaokc.com

14

This article appears on the AutoSweet website. Please visit https://www.autosweet.com/blog/ for more insights.

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February 2024

same time ,

same place .

save the date .

july 2123 2024

February 2024

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Insurance Matters!

CP Insurance Associates has been providing Buy Here Pay Here Dealers a Custom CPI Program for over 20 years. We will prevent you from being CLIPPED by the unexpected!

6/22

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February 2024

legal corner What Is Negligent Entrustment and When Is A Dealer Liable for Accidents Caused by His Buyer?

Dunagan

Dealer Question: I’ve received

a demand letter from an attorney who represents an individual who was injured in an accident with one of my customers. My customer did not have liability insurance and the attorney claims I have liability because: (1) I am lien holder on the title; (2) I failed to ensure that my customer had liability insurance before delivering the vehicle, and (3) I negligently entrusted a vehicle to my customer who was a bad driver. My questions: (1) What is negligent entrustment; (2) Do I have a duty to see that my buyers have liability insurance before they drive away, and (3) If they don’t have liability insurance, do I have liability for accidents they cause?

First, some background.

A

t one time, dealers were obligated to present proof of liability insurance for their customers at the time of title transfer. While that law was in place, dealers were constantly struggling with their customers to bring in proof that they had liability coverage, and in many cases, missed the deadline for making timely transfer.

This problem was resolved when TIADA and the Texas Automobile Dealers Association convinced the Texas Legislature to drop the proof-of-liability-at-title-transfer requirement on dealer transfers. But there are some folks out there who still think that selling dealers have the responsibility to see that their buyers have liability insurance, or should otherwise be responsible for the accidents the customers cause.

February 2024

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by Michael W. TIADA COUNSEL

Some people think — incorrectly — that the owner of a vehicle is automatically liable for the negligence of someone else. First, mere ownership without something more is not a sufficient legal basis for liability. Second, a dealer who has sold a vehicle, even if a lien is retained, is not the owner.

No one questions the goal of universal liability coverage for drivers. All drivers should have liability insurance and the law requires it.

How it should be enforced and who should bear the burden for enforcing it are other questions.

Dealers should always notify their customers in writing that they are required by state law to have liability insurance.

But the reality is that there will always be people driving on the state’s roads and highways who don’t have current liability coverage.

It is thus necessary to examine the law of liability and see how it applies to a motor vehicle seller and/ or lien holder.

Generally, to be liable for an accident, a person must breach some duty to the injured party. For example, a driver of a vehicle has a duty to maintain control of his vehicle so that he can avoid striking a vehicle in front of him. If he causes an accident by driving too fast, by not keeping a proper watch out, by not braking soon enough, or by violating some traffic law, he has breached that duty, or put another way, has been negligent.

In order to be negligent in the ordinary sense, a person must be driving the vehicle. Unless the selling dealer or one of his employees was driving the vehicle when the accident occurred, the dealer 17

wouldn’t be negligent in breaching a duty to drive safely. So, in a situation where the driver of a vehicle who causes an accident is insolvent and uninsured, an attempt is often made by the victim (and the victim’s attorney) to reach beyond the driver or owner of the vehicle to, for instance, the dealer who sold the vehicle by alleging a breach of some other duty.

Negligent Entrustment

One such theory is called negligent entrustment. This type of negligence refers to the negligence of an owner in entrusting a vehicle to someone the owner knows, or should know, is an unsafe driver. Some people think – incorrectly – that the owner of a vehicle is automatically liable for the negligence of someone else. First, mere ownership without something more is not a sufficient legal basis for liability. Second, a dealer who has sold a vehicle, even if a lien is retained, is not the owner. A seller who has completed a sale is no longer the owner, even if the title certificate hasn’t yet been transferred.

A dealer client once received a demand letter from an attorney who happened to be the person that the dealer’s buyer had rearended. The buyer didn’t have liability coverage. The attorney/victim demanded that the dealer take responsibility for the damages because the dealer had not yet transferred the title, and thus he was still the owner of the vehicle. Being the owner, the attorney concluded, the dealer was liable. In this case, the attorney was wrong.

Under almost identical facts, the Court of Civil Appeals in San Antonio held that a selling dealer could not be liable for negligent entrustment, even though the title certificate had not yet been transferred at the time of the accident. First, the court held, the law of Texas is that a seller can not have liability under negligent entrustment. Next, the court addressed the non-transfer issue by concluding that ownership passed upon signing the sales contract papers, payment of the down payment, and delivery of possession to the buyer. Title transfer, while important, was not the same as transfer of ownership.

The Texas Supreme Court, in the case of National Convenience Stores, Inc. v. TT Barge Cleaning Company, refused to review or change the long-established rule that a seller in Texas can’t be held liable for the acts of a buyer under the theory of negligent entrustment.

How about a seller’s potential liability under negligent entrustment for selling a vehicle to a person who has no driver’s license? It would appear that since negligent entrustment does not apply to a completed sale,

it wouldn’t matter if the buyer had no driver’s license.

Many years ago, a bill was filed in the Texas Legislature that would make it illegal to sell a vehicle to an unlicensed driver. The bill didn’t pass, and Texas statutes do not contain any provision that makes it a violation to sell to an unlicensed driver (but pay heed to the warnings below about allowing test drives or loaning a vehicle to an unlicensed driver).

The fact of the matter is that motor vehicle sellers have no obligation with regard to the liability insurance of their buyers or for claims of negligent entrustment. Yet dealers continue to receive demand letters in such situations and, occasionally, lawsuits.

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We’ve seen several attorney-demand letters and even lawsuits that alleged that the selling dealer had a duty to make sure that the buyer had liability insurance. None of these claims has succeeded.

One of the aspects of the argument that a selling dealer has some type of obligation with regard to liability insurance that is most puzzling is just how far the obligation would extend. If, for instance, the dealer required that a buyer have an insurance card, and the card was good for only 30 days, would the dealer be obligated to see that the policy was renewed? What if an accident occurred on the thirty-first day and the insurance company denied the claim? How about an accident a year later? What if the insurance card was forged?

Dealers Are Not the Liability Insurance Police

The fact of the matter is that motor vehicle sellers have no obligation with regard to the liability insurance of their buyers or for claims of negligent entrustment.

Yet dealers continue to receive demand letters in such situations and, occasionally, lawsuits.

19

Upcoming Events 2024 TIADA DEALER ACADEMY

For online registration and information, see www.txiada.org

March 4 BHPH Compliance Summit

Sheraton Houston Brookhollow Hotel Houston, TX

May 6 Collect the Cash, Not the Car San Antonio, TX

If such a letter is received, however, it should not be ignored. The dealer should contact his or her attorney and also notify the garageliability carrier about the claim.

One warning about relying on the defense of a completed sale: this defense would not be available if the sale is incomplete. In one court case a dealer “sold” a vehicle to an employee, but failed to have all the paperwork signed. The dealer was found liable under the theory of negligent entrustment when the employee caused a wreck without liability insurance, even though the accident occurred on the employee’s personal time.

Another word of warning: This rule does not apply to test drives or loaners. A seller could be held liable under a negligent-entrustment claim if there has not been a completed sale. Thus, it is risky to allow a potential customer to test drive a vehicle without (1) a current driver’s license and (2) a valid liability

insurance policy. The law carries a presumption that an unlicensed driver is an unsafe driver. It would be an easy step to establish that a dealer negligently entrusted a vehicle to an unlicensed (and thus, unsafe) driver in a demonstrationdrive situation.

With regard to liability insurance coverage, dealers should make sure that customers test driving vehicles are covered by the dealer’s garage liability policy or, alternatively, that the test driver has his or her own liability insurance. The same standard would apply to supplying loaners to customers.

Michael W. Dunagan is an attorney in Dallas, Texas who has represented the Texas Independent Automobile Dealers Association for over 45 years. He has written a number of books and hundreds of articles for trade journals and law reviews. His clientele includes dealers, banks, finance companies, auto auctions and credit unions.

OTHER TIADA EVENTS

February 21 Townhall

Lubbock, TX

22 Townhall El Paso, TX

March 7 Townhall Donna, TX

April

29 Board of Directors Meeting Austin, TX

30 Townhall Austin, TX

July

21 Board of Directors Meeting

JW Marriott Hill Country Resort San Antonio, TX

21-23 TIADA Conference and Expo JW Marriott Hill Country Resort San Antonio, TX 20

resource guide The TIADA Website: txiada.org

Members can log in with their username/password and access our Dealer Member Directory, Legislative Action Center, Compliance Consultation Service and much more. Register for all upcoming TIADA events online through the Calendar of Events, access our online membership application, find contact information for all our Local Chapters, and access many additional resources through our Knowledge Base.

License Renewal Certificate TexasDealerEducation.com

Office of Consumer Credit Commissioner 800.538.1579 occc.texas.gov

Texas Comptroller 800.252.1382 comptroller.texas.gov

NIADA 817-640-3838 niada.com

REPOSSESSIONS American Recovery Association 972.755.4755 repo.org or contact TIADA state office

Texas Department of Motor Vehicles

FORMS

888.368.4689 txdmv.gov

512.990.1188 burrellprinting.com

Burrell Printing

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Please fill out the form on the next page to help our efforts out at the Capitol!

Thank you to all those who contributed to INDEPAC in 2023!

Dear TIADA Community, We want to take a moment to thank all of those who have made a contribution to INDEPAC. Due to your generous efforts, we collected over $81,000 in donations in 2023.

Because of these contributions, INDEPAC can continue to protect the rights and interests of independent automobile dealers across the state of Texas. There are many issues confronting the industry right now, and we appreciate your dedication to ensuring we continue to have a strong voice at the Capitol.

We are looking forward to representing the interests of all independent dealers along the road ahead.

Thank you for your support!

Sincerely, INDEPAC

22

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February 2024

Yes, I would like to help with TIADA’s grassroots effort!

Please list me as a sustaining donor. I would like to support my industry by making a monthly credit card donation of $______________ Add me to the KEY-PERSON list! I know (Name of Legislator) _______________________________________________ as a ____ Acquaintance

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February 2024

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23

on the cover

by TIADA Staff

Editor’s Note: Information provided was current at the time of this article’s writing. TIADA will provide regular updates about this major rule as the situation changes.

The

FTC

CARS RULE T

MAJOR IMPLICATIONS for INDEPENDENT DEALERS

he Federal Trade Commission (FTC) has recently unveiled a new rule aimed at curbing deceptive practices in the car buying process, titled the “Combating Auto Retail Scams (CARS)” rule. The rule, which has drawn mixed reactions from various stakeholders in the auto industry, targets what the FTC calls “bait-and-switch” advertising and “junk fees.” While the FTC claims that the rule is intended to protect consumers from unfair and deceptive practices, some have expressed concerns that it could have unintended consequences and create an overly burdensome regulatory environment.

Independent dealerships, which often operate on a smaller scale than

24

“This regulation is heavy-handed bureaucratic overreach and redundancy at its worst...”

Mike Stanton NADA President and CEO

their larger franchise counterparts, have traditionally relied on flexibility and personalized service to compete. They argue that the CARS Rule’s focus on standardization and upfront disclosure could hinder their ability to negotiate and offer customized deals to their customers. Additionally, some independent dealerships worry that the rule’s restrictions on add-on products and fees could cut into their already tight profit margins.

The FTC website offers a dealers’ guide to the CARS Rule, which was scheduled to take effect on July 30, 2024. That date is now on hold until legal challenges to the Rule are resolved.

The dealers’ guide offers a summary of its requirements: T e x a s

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1

The CARS Rule prohibits misrepresentations about material information.

2

The CARS Rule requires dealers to clearly disclose the offering price — the actual price anyone can pay to get the car, excluding only required government charges. For example, an advertised price would need to include the documentary fee in the advertised price to meet this requirement.

3

Dealers must provide the drive-off-the-lot price in any communication with a consumer that refers, expressly or by implication, to a specific vehicle or to any monetary amount or financing term. For example, a dealer responding to an inquiry on a specific vehicle must include the offer price in a response to the inquiry.

4 the dealer has to tell the consumer

If a dealer mentions optional add-ons, they can say no. And if discussing a monthly payment, the dealer has to tell the consumer the total payment.

5it illegal

The CARS Rule makes for dealers to charge consumers for add-ons that don’t provide a benefit such as selling GAP when the amount financed is low enough that it would not benefit the consumer.

6

The CARS Rule requires dealers get consumers’ express, informed consent before charging them for anything. This consent must be conveyed in writing, and also orally for in-person transactions.

“When Americans set out to buy a car, they’re routinely hit with unexpected and unnecessary fees that dealers extract just because they can,” said FTC Chair Lina M. Khan in a press release. “The CARS Rule will prohibit exploitative junk fees

February 2024

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in the car-buying process, saving people time and money and protecting honest dealers.”

According to the FTC, “Vehicles are one of the most significant purchases that American consumers make — for many, a vehicle is the single most expensive item they will ever purchase. The CARS Rule targets illegal practices that capitalize on the challenging nature of buying a vehicle, particularly the often lengthy and opaque process that can leave consumers open to scams by unscrupulous car dealers.”

“...taking a small sample size and punishing the entire industry for the actions of a few rogue actors does more harm than good for consumers and dealers.

Jeff Martin NIADA CEO

However, it’s important to note that the Rule’s effectiveness remains to be seen. While the FTC intends to monitor compliance and enforce the regulations, the long-term impact on car-buying practices is yet to be fully realized.

NADA President and CEO Mike Stanton released a statement in response to the CARS Rule. In it, he stated, “This regulation is heavyhanded bureaucratic overreach and

redundancy at its worst, that will needlessly lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction. The FTC made up data to support its claims, then rejected calls to slow down the process and test the effectiveness of its proposal with real consumers. We are exploring all options on how to keep this ill-conceived rule from taking effect.”

The FTC’s main claim focuses on protecting consumers from harmful practices and promoting a more honest and transparent car buying experience through the CARS Rule. Opponents argue these new requirements will stifle dealers’ ability to operate efficiently and cater to diverse customer needs. The upfront pricing requirement, for example, removes the art of negotiation, a skill many smaller dealerships pride themselves on. It could also force them to adopt a one-size-fits-all pricing model, neglecting specific customer wants and budget constraints. Similarly, the emphasis on add-on transparency could deter dealers from offering valuable service packages tailored to individual needs, potentially reducing revenue and limiting customization options. Additionally, the doubleconfirmation consent process, while well-intentioned, could lengthen the already complex sales process, potentially deterring impatient customers.

Ultimately, independent dealerships fear these rules prioritize standardization over flexibility, possibly homogenizing the carbuying experience and hampering their ability to compete with larger, franchise-backed giants.

NADA and TADA have recently filed a lawsuit challenging the CARS Rule, asking the Fifth Circuit Court of Appeals, which may delay or overturn the Rule. In response 25

to the legal challenge to the Rule, the FTC has paused its effective date while litigation is pending.

According to a fact sheet released

by NADA, the association “is challenging the FTC in court to stop a rule that will add massive amounts of time, complexity, paperwork and cost to car buying and car shopping for tens of millions of Americans every year.” NADA

emphasizes the rushed process through which the Rule was implemented and the difficult business environment in which the rule places dealers. TIADA and NIADA are in close communication with both parties and ready to assist them in order to best support their members throughout the process.

Similarly, NIADA voiced

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concerns about the potential impact on dealerships, citing a study by the Center for Automotive Research (CAR) suggesting the rule could cost consumers over $38 billion and add 2 hours per transaction. Meanwhile, consumer advocates have welcomed the move, arguing it’s crucial to protect buyers from deceptive practices. NIADA members actively engaged in discussions with lawmakers about the proposed rule during their National Policy Conference in September.

“It’s frustrating to see the FTC rush this rule out given the extensive questions, concerns, and comments the FTC received about the proposal,” said NIADA CEO Jeff Martin. “When we met with the FTC at our Policy Conference in September, it was clear there were more questions than answers from the agency. Our members are not opposed to well-thoughtout, reasonable, and responsible regulation. However, taking a small sample size and punishing the entire industry for the actions of a few rogue actors does more harm than good for consumers and dealers. We will review the over 370-page rule, help our dealers navigate the new compliance regulations, and explore other options to address some of the overregulation in this rule.”

The FTC’s CARS Rule presents several potential challenges for automobile dealers, ranging from operational adjustments to concerns about increased costs and competitiveness. Requirements like upfront pricing and clear disclosures may stifle negotiation freedom, restrict alternatives, and dampen the ability to advertise. Adapting to a slower, government-directed buying process means operational headaches and potential technology hurdles.

Ultimately, the CARS Rule presents a challenging balancing act for dealers.

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February 2024

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All users earn a certificate upon completion

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feature

That Time of Year: Tax Season

by Brent Carmichael

Moderator and Consultant at NCM Associates

ROMAN / STOCK.ADOBE.COM

I

t’s that time of year again. It’s time to make hay while the sun is shining, so to speak. Tax time. And if the competition for those tax dollars hasn’t challenged BHPH dealers enough, the current economic conditions have not made the pursuit any easier. Because of these, tax season is not what it once was, but you can still put a good amount of hay in the barn with the right tools.

Four things are imperative to be prepared for the season, or any time of year for that matter. Adequate staffing levels include an effectively trained staff, a good inventory mix, and disciplined underwriting. Missing any of these will most definitely lead to a season of missed opportunities and missed profits.

For these reasons, it’s more important than ever to have the right people in the right positions and ensure that effective initial and ongoing training procedures are in place.

Just because the sun is shining doesn’t guarantee that hay will grow. It will take the right farmers with the right tools and the knowledge to use them to grow and harvest them.

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Tax-time farmers would, of course, be the sales staff, salespeople, and sales managers. These are the ones responsible for getting the hay into the barn. With a good, well-trained staff from top to bottom, all the traffic in the world would be well-spent.

The old adage when it comes to vehicle sales staffing is one salesperson for every 13-15 sales projected or expected. This holds true for BHPH sales as well. So, if 50 sales per month are projected, four salespeople should be sufficient, depending on what the overall job description entails. In these challenging economic times, erring on the conservative side makes more financial sense. It’s better to have more than enough ups to go around than to have a bunch of lot dogs hanging out on the porch.

Sales management staffing should be based on the number of people to supervise as opposed to sales projections.

The best managers can only effectively manage 6-8 people.

This should ensure the ability to run the store and train and develop the staff. Get too far outside this ratio, and 29

something or someone will get left out or overlooked.

If preparing for the season means adding sales personnel, keep in mind that BHPH is not about selling cars. It’s about selling financing and/or the plan. Previous vehicle sales experience is not as important as a good personality and a positive attitude. Take an energetic, outgoing gogetter over a seasoned lot hound any day. It’s always easier to mold clay than to teach an old dog new tricks.

When it comes to sales management staffing, experience is definitely a prerequisite, especially if promotion from within is not an option.

Hire or promote a “manager,” not necessarily a “sales manager.” One of the most common mistakes made is promoting a sales superstar. The best salesperson rarely makes a good manager. The mistake will usually compound itself as not only will there be a reduction in sales because the horse is gone, but the overall store effectiveness suffers because a good salesperson, not a good manager, is in charge.

Find the best manager available with used vehicle experience due to the intricacies of the business.

If training is the missing piece of equipment in preparing for the season or any time, remember that the sales training wheel has already been invented. There are more books, tapes, videos, and seminars than days in a decade. Most of which provide good common sense ideologies. All preach a process, the ongoing training of that process, and follow-up and accountability, which are all paramount to a successful sales department.

In choosing or developing a process, keep in mind that BHPH is about selling financing and/or the plan and not necessarily about selling cars. Some of the “steps” just aren’t applicable. Pick and choose the steps that fit the program and commit to them.

Sales training, initial and ongoing, should be one and the same. Process-driven. Year around. Daily at most.

Weekly, at the least. If the process has seven steps, that would be seven weeks of training. Then, start the training over again. Initial training should include a mentoring program. Who better to train a green pea than a proven winner? One who knows, works, and believes in the process and has had success using it. This can also be an avenue to develop the mentors into future managers.

The most effective process and best training are only useful with follow-up and the accountability that comes with it. Inspect what you expect. As with the process and the training program, these should be in writing and part of the employee manual. For any process and training program, there must also be clearly defined goals and expectations and the discipline to enforce them. Having just a warm body so as not to be understaffed can be extremely costly regardless of the time of year.

Having a good inventory mix is the next tool necessary to ensure a good tax season harvest.

With the recent cost of acquiring inventory, maintaining a good mix is easier said than done. The target inventory mix would be a 10-80-10 mix. 10% of your inventory being the high dollar, late model, lower mileage units. And 10% being the low dollar, later model, higher mileage units. Leaving 80% being that core vehicle that the average customer with the average down can take delivery of. The top 10% and bottom 10% are much easier to source.

It’s the 80% that has been the biggest challenge, especially in the past two years. A big mistake I see dealers make in tax season is the top 10% becomes the top 30-40%, and after tax season, money is used up, and they are left with those high dollar units and customers without the down payment to buy them.

Last but not least of the tax season harvesting tools is underwriting. I still see too many dealers letting the big tax season downs sell deals that otherwise wouldn’t.

Don’t get me wrong, I love a big down payment as much as the next guy, but if that’s the only thing that sells the deal, it’s best to rethink it. The highest two loss frequency months are still February and March, which coincidentally are also the highest two down payment months.

Big tax downs are a good way to get a good customer into a better car. Not a bad customer into our best car.

‘Tis the season when most in BHPH make up to 35% of their annual hay. The key is having the right farmers and ensuring they have the right tools, equipment, and knowledge to harvest it and get it in the barn.

In choosing or

developing a process, keep in mind that

BHPH is about selling financing and/or the plan and not

necessarily about

selling cars. Pick and

choose the steps that fit the program and commit to them.

30

TIADA will be hosting a seminar in San Antonio on May 6 with Brent Carmichael, “Collect the Cash, Not the Car.” Check out https://www.txiada.org/collect_the_cash for more information.

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feature

How to Optimize Independent Dealership Service Departments for Technicians

by Sara Kerwin

Director of Marketing at WrenchWay

T

he heartbeat of any successful independent dealership is its service department, where technicians are the unsung heroes working diligently to keep vehicles on the road and customers satisfied.

From a technician’s standpoint, optimizing the service department is not just about fixing cars; it’s about creating an efficient, supportive, and forwardthinking work environment.

With the right management practices in mind, technician needs can be met and customers can be better served.

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A well-equipped service department is more attractive to both customers and skilled technicians seeking employment.

In this article, we’ll explore what is important to technicians and successful management tips for service departments.

What’s Important to Technicians?

1

Staying Up-to-Date on Technology.

Technological advancements have revolutionized the automotive industry, and technicians understand the importance of staying ahead. Independent 31

Local Chapters CORPUS CHRISTI G.R. Moore The Car Shack (dates announced at

www.txiada.org)

EL PASO Cesar Stark S & S Motors Meeting – 3rd Friday (Monthly)

FORT WORTH Jerry Smith H J Smith Automobiles (dates announced at

www.txiada.org)

HOUSTON Robert Edenfield Mi Pueblo BRP Meeting – 2nd Tuesday (Monthly)

SAN ANTONIO Nory Pakravan 210 Auto Credit (dates announced at

www.txiada.org)

32

dealerships must invest in cuttingedge diagnostic tools and software that enable technicians to diagnose and repair vehicles quickly. This not only enhances efficiency but also boosts the dealership’s reputation for staying on top of industry trends.

2

Training and Development.

In a recent survey, 91% of technicians said paid training is important or very important when evaluating a potential employer. Independent dealerships should prioritize ongoing training programs to keep technicians up-to-date with the latest repair techniques and emerging technologies. Well-trained technicians are not only more productive, but also contribute significantly to customer loyalty.

Communication 3 Open Channels.

In a recent survey, less than half (47%) of technicians said their shop management communicates well.

This is an area that needs to be addressed. Establishing open lines of communication between management and technicians creates a collaborative environment where concerns can be addressed promptly.

Regular team meetings, suggestion boxes, and one-on-one discussions foster a culture of transparency and mutual respect.

Service Department Success: Best Practices for Managers

1 Streamlined Workflow.

Efficient workflow is vital for a successful service department.

Managers should focus on creating a streamlined process that minimizes downtime and maximizes productivity. Assigning tasks based on technicians’ expertise and skill

sets ensures that each team member operates at their full potential.

nvestment in Quality 2 ITools and Equipment.

Providing technicians with topnotch specialty tools and equipment is an investment that pays off in the long run. High-quality tools not only enhance efficiency, but also contribute to the overall satisfaction of technicians. In fact, when looking at a potential employer, 98% of technicians agree it’s important the shop has proper equipment. A well-equipped service department is more attractive to both customers and skilled technicians seeking employment.

3

Recognition and Incentives.

Acknowledging the hard work and dedication of technicians is crucial for maintaining a motivated workforce. Implementing recognition programs and offering performancebased incentives not only boosts morale, but also contributes to a positive work environment. Happy technicians are more likely to go the extra mile to provide excellent service to customers.

Aligning Expectations Between Management & Technicians Independent dealerships can optimize their service departments by aligning with the expectations and needs of technicians. By investing in technology, prioritizing training, fostering open communication, streamlining workflows, and recognizing technician contributions, dealerships can create an environment where both employees and customers are satisfied.

This article appears on the WrenchWay website. Please visit https://wrenchway. com/blog/ for more insights.

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February 2024

feature

Used Car Dealer Marketing in 2024: Innovative Strategies for Digital Advertising and Social Media

by Sean Cassy

Co-Owner of Turbo Marketing Solutions

LEEKRIS - STOCK.ADOBE.COM

T

he days when dealerships could mostly swing by with simple newspaper ads and radio spots to market used cars have become a distant memory.

Welcome to 2024, an era dominated by advanced digital advertising techniques and social media strategies. Now more than ever before, the war for consumers’ attention and loyalty is being fiercely fought online. Buckle up as we explore some of the most innovative marketing strategies that are propelling savvy used car dealers into the fast lane of success in this ever-evolving digital age. It’s time to drive your dealership beyond traditional methods and turbocharge your marketing engine!

In 2024, the most effective marketing strategies for used car dealerships include leveraging digital platforms such as social media advertising, search engine optimization, and targeted email campaigns. Utilizing data-driven analytics and personalized customer experiences will also play a crucial role in attracting and retaining customers.

February 2024

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Digital Advertising and Social Media Trends in 2024

In the year 2024, digital advertising and social media marketing will continue to be an indispensable element for all businesses, including used car dealerships. With rapid technological advancements over recent years, traditional methods of advertising have slowly faded into oblivion. In contrast, digital advertising has emerged as the game-changer for every industry. Social media has played a significant role in revolutionizing digital marketing. In 2024, social media trends for used car dealerships are expected to include creating engaging and authentic short-form videos, leveraging AI-based tools to create visually appealing content, and using influencer marketing.

Picture a used car dealership that has just added a rare Ferrari to their inventory. They could advertise it through a stunning video showcasing its features in detail while demonstrating driving dynamics. Authenticity is crucial 33

here; emphasizing the car’s key qualities while also taking viewers on a fun ride would attract more leads.

It’s essential to recognize your target audience and tailor ad campaigns accordingly. In 2024, more customers are inclined towards online research before making any purchase decision — including car purchases.

Dealerships should invest time in communicating with prospects through various avenues like chatbots or personalized messages.

We’ve now identified some possible social media trends for used car dealerships in 2024 — let’s explore how advanced marketing platforms can translate these tried-and-tested strategies into tangible business benefits.

Benefits of Advanced Marketing Platforms for Used Car Dealerships

Navigating the Online Used Car Market

As we step into 2024, customers’ car buying journeys continue to shift online. According to a survey conducted by Autotrader, over 70% of car shoppers believe that online research makes the process more efficient.

This change in customer behavior affects traditional used car marketing strategies and calls for more digital integration.

One major aspect of navigating the online used car market is identifying key sources where potential buyers frequent. A dealer who understands this would set up shop on major car aggregate sites like Cars.com and Edmunds.com. These platforms are some of the most trusted sites among consumers seeking a reliable source for car information.

Prominent social media channels like Facebook and Instagram offer innovative ways to connect with users pertinent to certain demographics. These networks present an opportunity for real-time engagement with customers and offer unique opportunities to create an online community around your brand that keeps them invested.

It’s important to remember that customers want to be informed, not sold to when purchasing a used car, so providing blogs or articles sharing tips for buying used cars is one way of engaging with potential buyers.

Now that we’ve learned about navigating the online used car market let’s explore data-driven strategies specific to used vehicle marketing.

A research report indicates that around 63% of car buyers start their journey online, emphasizing the importance of digital marketing for used car dealerships in 2024.

There are numerous effective ways to market your used car dealership online successfully. Advanced marketing platforms provide tools that make it easier to reach potential customers interested in purchasing cars while streamlining dealer operations and increasing revenue generation.

Think of it this way: stocking your dealership with inventory is only half the battle — without efficient customer outreach and smart marketing tactics, those vehicles could potentially gather dust.

One of the significant advantages of advanced marketing platforms is that they help you target specific demographics more accurately. This approach allows a dealership to eliminate campaigns’ guesswork and waste, ultimately resulting in better-performing ad campaigns and improved ROI. Moreover, it’s less expensive than traditional advertising methods like television or radio ads.

In addition to streamlined customer outreach, technology has created several solutions for tracking inventory levels conveniently. Advanced marketing platforms enable dealerships to identify trends in sales volume and adjust strategies accordingly. They can also analyze data to determine which models are selling the most and when a car may need special promotions to increase traffic.

However, some could argue that incorporating advanced marketing techniques seems too technical or costly. While there is an element of investment involved in developing a digital presence, what’s more 34

expensive is losing out on business to competitors who have invested in online capabilities and benefitted from their results.

Data-Driven Strategies for Used Car Dealer Marketing

Data-driven insights will play a pivotal role in streamlining the implementation of any used-car dealer marketing strategy in 2024. By leveraging analytics, dealerships can create personalized digital marketing campaigns tailored to their target demographic while optimizing the company’s advertising spend.

One important use case of data analysis is segmenting demographic data by location, age, income, and preferences based on search history and other factors.

Doing so ensures marketing campaigns are targeted and T e x a s

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relevant to the intended audience, thereby increasing the likelihood of engagement.

However, dealers should go beyond past sales records and audience analysis — they need to employ predictive analytics to identify future trends. This way, they can proactively respond to emerging customer needs and stay ahead of the curve.

Predictive analytics will be key in identifying which vehicle models appeal most to customers in certain locations. For example, if a dealer located in a rural area notes that trucks are becoming increasingly popular in local searches, it may indicate a changing preference for residents. Being able to pivot quickly can lead to higher revenue from increased sales.

Think of data-driven insights as your dealership’s GPS system — dependable, insightful information that guides you towards success while reducing risk substantially.

Ultimately, dealerships that successfully leverage digital channels and use data strategically will have a competitive advantage when navigating the online used car market.

A ccording to Insider Intelligence, digital ad spending in the auto industry is projected to exceed $21 billion by 2024, with a significant portion dedicated towards used car dealership marketing.

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A report by Facebook parent company Meta indicates that around 63% of car buyers start their journey online, emphasizing the importance of digital marketing for used car dealerships in 2024.

Th e National Automobile Dealers Association (NADA) revealed that certified pre-owned sales grew by less than 1% in 2024, reinforcing the need for effective marketing strategies to boost this sector’s growth.

Targeting and Reach within Digital Channels

As the auto market continues to recover post-Covid, adopting innovative strategies for targeted advertising and audience reach becomes crucial for used car dealerships to keep up with the competition. While traditional advertising methods such as flyers and billboards still hold value, digital channels offer a more cost-effective approach while targeting specific demographics.

Consider digital channels like a sniper’s scope; focusing in on precise targets that are most likely to buy from dealerships.

One effective method is geofencing, where ads are shown exclusively to people who are in specific locations, whether it be at events or neighborhoods known to have potential buyers. Dealerships can also target audiences by their interests through Facebook Ads Manager. This tool allows

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advertisers to select certain interests — such as luxury car brands or outdoor activities — creating a higher likelihood of conversion rates.

Incorporating local SEO strategies is another effective way to increase reach on digital channels.

By raising dealership awareness locally, it allows potential customers to find dealerships they may not have previously considered.

And while these methods offer benefits, one cannot overlook the importance of marketing content itself. Customers want transparency and clear information about dealerships and available cars, making high-quality photos and accurate descriptions critical for attracting online interest.

With numerous platforms and tools available across vast digital landscapes, the key for successful targeting and reach is finding which ones best fit each dealership’s needs.

Customer Relationship Management in Used Car Dealer Marketing

Successfully managing customer relationships in the used car industry can present numerous challenges. With many consumer options and price points available, what sets apart a quality dealership is their ability to provide topnotch service. This isn’t just at one stage of the buyer’s journey but throughout every interaction with the dealership. With technological advancements, this aspect becomes easier than ever before.

One powerful tool in this regard is customer relationship management (CRM) software. This type of program allows dealerships to manage contact lists, monitor customer interactions and create more personalized experiences. Instead of relying on how customers find the dealership, CRM focuses on fostering long-term relationships with existing and potential customers.

Say, for instance, a customer who was considering buying from T e x a s

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Aranda Auto Sales

Arturo Aranda . . . . . . . . . . 3102 S. Buena Vista Ave, Laredo, TX 78046

Carland Auto Group LLC

Fethullah Ayyildiz . . . . . . . . . . . . 11553 Chairman Dr., Dallas, TX 75243

D&B Auto Sales

David Brodsky . . . . . . . . . . . . 431 N Sunset Strip St, Kenedy, TX 78119

Elite Truck Sales, LLC

Casi Jo Guess . . . . . . . . . . . . . . . PO Box 1130, Colorado City, TX 79512

Florido Sales

Adan Florido . . . . . . . . . . . . . 3808 Sandy Lane, Nacogdoches, TX 75964

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As car dealerships deal with rapid technological advancements, there are constant innovations in customer service tools that assist staff in delivering personalized services to clients. Technology has enabled many dealership entities to put the client’s needs at the forefront of operations by improving solutions to problems and enhancing communication with customers.

For instance, AI-powered chatbots have been increasingly employed as an innovative solution to enhance customer care services.

These bots are designed to offer clients automated support available 24/7. By engaging customers

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a dealership backed out at the last minute due to bustling schedules.

With a CRM system in place, that dealership can send follow-up reminders or customized communication catering to the customer’s individual needs and preferences.

Another crucial aspect of marketing within CRM is email automation campaigns that show off inventory to customers. These campaigns can target specific groups based on interests or buying history and keep them engaged throughout their carbuying journey.

But even the best CRM strategy can only go so far without utilizing technology in other aspects of used car marketing. For example, chatbots on dealership websites provide immediate support and assistance, enhancing customer satisfaction levels while improving response times.

At the end of the day, effective marketing is all about creating lasting customer relationships that drive repeat business and positive recommendations. And with CRM tools and technological advancements available, achieving this goal within the used car industry has never been easier.

TexasDealerEducation.com 37

through chats, it helps build a more personalized approach and brand loyalty.

Providing self-service options is another strategy used by dealership entities that aim to achieve great customer satisfaction levels. Self-service options like digital swatches help customers identify their ideal car models without investing unnecessary time and effort. Think of these services as virtual sales representatives working alongside human personnel, enhancing the customer experience and overall satisfaction.

Moreover, social media marketing has become a growing trend for used-car dealerships. Platforms like Facebook and Instagram provide retailers with a vast audience that significantly contributes to higher conversion rates of potential clients.

In addition, mobile apps equipped with features such as vehicle maintenance schedules and financing calculators have proven helpful in the dealer-customer relationships. It’s also an effective means of collecting customers’ data that allows profitable information analysis and targeted advertising campaigns.

Imagine being able to schedule your car check-ups instantly without having to queue or make calls all while under one web page or app — improved convenience drives trust, which translates into profit generation for businesses.

Furthermore, enhanced communication channels like video calling have been instrumental in providing prospective buyers with more insight into vehicles sold online. The pandemic accelerated this phenomenon since digitization was heightened during lockdowns, but the benefits will continue beyond Covid-19 times.

As much as technology advancements have led to visible transformations in the car dealership industry, some premises of good customer service go beyond automated solutions. Personalized human interaction is vital in blending traditional and contemporary methods of delivering quality service.

There are instances when clients need more detailed information on specific vehicle models or personalized attention to unique needs. In such cases, nothing beats faceto-face conversations, where questions get appropriately answered and lasting client relationships can be built.

In conclusion, technology continues to transform all aspects of business, with customer services being a crucial component. It’s essential for used car dealerships to equip themselves with innovations that address customer satisfaction and aid in creating reliable communication channels to retain clients in the competitive market.

Sean Cassy is the Co-Owner of Turbo Marketing. For more information, please visit https://www.turbomarketingsolutions.com/.

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Maximize Your Sales Potential with the TIADA CPO Program.

Visit with the approved providers below to learn about the value of offering a CPO.

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May 15, 2024 {Applications and/or any required documents received after May 15, 2025 will NOT be accepted.} Criteria and Guidelines 1. Each applicant must be entering or currently enrolled in an accredited college or a trade school. Proof of enrollment must be included with this application.

Date: Name:

DOB:

Address: City:

State:

Zip:

Email: (You will receive an email confirmation of receipt.)

Telephone Number: High School Last Attended:

2. Each applicant must provide a letter from their TIADA member sponsor that includes the sponsor’s address and phone number.

Address:

3. Each applicant must complete the application form.

Date of Graduation:

4. A copy of high school transcripts is required for applicants who are college freshmen. If applicant is currently enrolled, provide college transcripts with official university imprint.

Other High Schools Attended (Names and Addresses):

5. Provide a detailed description of participation in any academic, honorary, civic or extracurricular activities in college. In addition, a detailed description of high school activities is required from college freshmen along with a college acceptance letter.

6. Compose an essay of no more than two typed, double-spaced 8 ½” x 11” pages. The essay should discuss the applicant’s relationship with their TIADA scholarship sponsor, current education goals and future aspirations as it relates to the applicant’s subject/training area.

7. Provide at least two (but no more than three) letters of recommendation, no older than one year, from college/high school faculty, employers or other appropriate sources (not related).

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SCHOLARSHIP APPLICATION

City:

State:

Zip:

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College(s) you are attending or plan to attend for admission:

Parents Name(s): TIADA Member Name (Sponsor): TIADA Member Company Name: TIADA Member Address: City:

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Sponsor Signature Should you have any questions, please contact TIADA at 512.244.6060. Please return the completed application with all required documents to: TIADA Attention: Scholarship Applications 9951 Anderson Mill Rd. Suite 101, Austin, TX 78750

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feature

Mastering the Art of Online Car Salesmanship

by Andrew Smith

CEO of AutoRaptor

PORT-O - STOCK.ADOBE.COM

I

n today’s digital age, where online shopping has become second nature to many consumers, it’s essential for car dealerships to master the art of online car sales. The key to success lies in understanding the basics of online car sales, building a strong online sales strategy, effectively communicating with customers, and utilizing digital marketing techniques. By embracing these concepts and overcoming the challenges that come with online sales, dealerships can thrive in the digital world.

Understanding the Basics of Online Car Sales

One of the most important aspects of online car sales is establishing a powerful online presence. Consumers increasingly turn to the internet when researching and purchasing vehicles, making it crucial for dealerships to have a strong online showroom. Additionally, the February 2024

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shift from traditional to online car sales has become more pronounced in recent years, with the majority of consumers now utilizing online platforms to initiate the car buying process.

The Importance of Online Presence in Car Sales

An effective online presence is essential for car dealerships to reach a wider audience and establish credibility. Through a well-designed website and engaging social media profiles, dealerships can showcase their inventory, special offers, and provide valuable information to potential customers. A professional and user-friendly website serves as a virtual showroom, giving customers a glimpse into the available vehicles and enticing them to take the next step.

Furthermore, an online presence allows dealerships to provide detailed information about each vehicle, 41

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Repossession 101: What You Need to Know

Dealer Academy This is a video course with

including specifications, features, and pricing.

This level of transparency builds trust with customers, as they can make informed decisions without the pressure of a salesperson hovering over them. Online platforms also enable customers to compare different models, read reviews, and access financing options, all from the comfort of their own homes.

Moreover, an online presence opens up opportunities for dealerships to engage with customers through various channels. Social media platforms, such as Facebook and Instagram, provide avenues for dealerships to interact with potential buyers, answer questions, and address concerns. This personalized interaction helps build relationships and establishes the dealership as a trusted source in the car buying process.

The Shift from Traditional to Online Car Sales

Michael W. Dunagan TIADA General Counsel, author of Dealer Financing of Used Car Sales and Texas Automobile Repossession: A Lien Holder’s Legal Guide.

In this two-part video course TIADA counsel Michael Dunagan answers repossession related questions for both the dealer starting out and those dealers who want a refresher. Dunagan goes through the basics of selfhelp repossession, repossession when a client has filed bankruptcy, and using the courts to regain collateral through sequestration. The course also covers all the repossession letters and includes a downloadable deck of slides to follow along with the course.

• Preliminary Considerations Before Repossession • When is a Customer Considered in Default • Avoiding Liability from Repossession • Types of Disposition • Required Notices to the Debtors • Handling Personal Property • Using the Courts to Get Your Car Back

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Traditional car sales methods, such as print advertisements and physical car lots, no longer hold the same influence they once did. This shift in consumer behavior requires dealerships to adapt and meet customers where they are most comfortable — online.

By embracing online car sales, dealerships can tap into a larger market and streamline the car buying process for customers.

With online car sales, customers have the convenience of browsing through a wide selection of vehicles from the comfort of their own homes. They can explore different makes and models, compare prices, and even schedule test drives without the need to visit multiple physical locations. This saves customers time and effort, allowing them to make more efficient decisions.

Furthermore, online car sales provide customers with access to a wealth of information.

They can research the history of a specific vehicle, check its maintenance records, and even obtain a vehicle history report. This level of transparency empowers customers to make informed decisions and reduces the risk of purchasing a lemon.

In addition, online car sales often offer customers the ability to customize their search criteria. Customers can filter their search based on specific features, mileage, price range, and more. This targeted approach helps customers find the exact vehicle they are looking for, saving them from having to settle for something that doesn’t meet their needs.

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Lastly, online car sales provide customers with the option to complete the entire purchasing process online.

From selecting a vehicle to securing financing and arranging delivery, customers can go through the entire process without ever stepping foot in a dealership. This convenience appeals to busy individuals who value their time and prefer a hassle-free car buying experience.

Building a Strong Online Sales Strategy

A successful online sales strategy begins with identifying your target audience. Understanding the demographics, preferences, and behaviors of your potential customers is crucial for tailoring your marketing efforts and creating compelling content. Through extensive market research and customer analysis, you can develop a comprehensive profile of your ideal customer.

Identifying Your Target Audience

Knowing your target audience allows you to create personalized marketing campaigns that resonate with potential car buyers. By understanding their needs, desires, and pain points, you can tailor your messaging to address their specific concerns effectively. This personalized approach not only helps you stand out from competitors but also builds trust and rapport with your customers.

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Creating a Compelling Online Showroom

Your online showroom should be visually appealing and easy to navigate. High-quality images, detailed descriptions, and intuitive search filters help customers find the vehicles that meet their requirements without hassle. Additionally, providing transparent pricing information, vehicle history reports, and virtual test drive options offer customers peace of mind and build trust in your dealership. Remember, the online showroom serves as a customer’s first impression, so make it count.

Effective Communication in Online Car Sales

While the physical aspect of car sales is absent in online transactions, effective communication remains paramount. Building trust and rapport with customers is crucial to secure online sales and generate positive reviews and referrals.

The Art of Online Negotiation

Negotiating online requires a different approach compared to face-to-face interactions. Clear and concise communication is key to ensure both parties understand each other. During negotiations, it’s important to highlight the unique value and features of the vehicle, justify the price, and provide any additional 43

incentives, such as after-sales support or warranty options. Honesty, responsiveness, and flexibility play a vital role in successful online negotiations.

Building Trust and Rapport with Customers

Establishing trust in online car sales takes time and effort. Promptly responding to customer inquiries and providing accurate information builds credibility.

Offering virtual vehicle walkarounds, video testimonials, or even arranging third-party inspections enhance trust in the online buying process. Additionally, showcasing positive customer reviews and testimonials on your website creates social proof and reassures potential customers of your dealership’s reputation.

building backlinks from reputable sources all contribute to improving your website’s visibility on search engine results pages. By appearing higher in search rankings, you increase the chances of attracting targeted traffic to your website.

Social Media Marketing for Car Sales

Engaging with customers on social media platforms allows you to build brand awareness, foster customer relationships, and generate leads. Utilize visually appealing advertisements, interactive posts, and contests to capture the attention of your target audience. Regularly updating your social media profiles with new inventory, promotions, and industry news keeps your dealership top of mind for potential customers.

Handling Online Sales Challenges

Online car sales come with their unique set of challenges. By proactively addressing these obstacles, dealerships can ensure customer satisfaction and minimize any potential issues that arise during the online buying journey.

Overcoming Common Obstacles in Online Car Sales

One of the common challenges faced in online car sales is customers’ inability to physically inspect or test drive the vehicle. To tackle this issue, consider implementing virtual test drive options, offering detailed vehicle descriptions, and providing comprehensive vehicle history reports.

Offering flexible return policies and warranties also gives customers peace of mind when purchasing online.

Maintaining Customer Satisfaction in the Digital Age

Utilizing Digital Marketing Techniques

Effectively marketing your dealership online requires a comprehensive digital marketing strategy. Two critical aspects include search engine optimization (SEO) and social media marketing.

SEO for Car Dealerships

Optimizing your website for search engines ensures that potential customers can find you when searching for relevant keywords. Implementing on-page optimizations, creating valuable and engaging content, and 44

Customer satisfaction should remain a top priority, even in online car sales. Responding promptly to customer inquiries and resolving any issues that may arise demonstrates a dedication to customer service. Providing regular updates throughout the sales process and ensuring a smooth delivery experience help build long-term customer relationships.

Mastering the art of online car salesmanship requires dealerships to combine a strong online presence, effective communication, targeted marketing, and a focus on customer satisfaction. By embracing the digital landscape, car dealerships can expand their reach, increase sales, and thrive in the ever-evolving world of online car sales.

This article appears on the AutoRaptor website. Please visit https://www.autoraptor.com/blog/ for more insights.

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Spring Cleaning and Your Dealership

W

e are all familiar with “Spring Cleaning” as the time-tested practice for preparing our homes for the months ahead, but have you thought about spring cleaning your dealership in the upcoming months for all the new rules and regulations? Never have there been so many items to clean up and ready your business for the future than there are now. Coming off some of the highest interest rates in decades and a shortage of inventory in our industry, we now face a plethora of new laws that will have a profound impact on how auto dealerships operate. These rules and regulations have either been enacted, are scheduled to be enacted, or are going through the governmental administrative process for enactment dates, as in the case of the change from temporary buyer tags.

Consider having your business put a plan in place to gear up to comply with wide, sweeping changes in the law that will have a dramatic effect on your business.

Hopefully, you have complied with the FTC Safeguards Rule that was ultimately put into place this past summer to protect your business. If you still need to, that law requires you to become compliant. With that said, the law has changed since June 2023, and there are new requirements you need to be aware of. Several places offer courses, including the low-cost, newly updated option from TIADA, which many of you and your employees are already familiar with.

Please make sure you are compliant with this important law as changed, and please reach out to us if you have questions.

Along with new laws to be implemented, The Federal Trade Commission “FTC” is issuing the Combating Auto Retail Scams Trade Regulation Rule known as the “CARS Rule” that will be revolutionary in how you conduct business,

TIADA EXECUTIVE DIRECTOR

as you read in the cover story on page 24. It changes the regulations on everything from how you can advertise to how you can sell and finance vehicles. This Rule initially scheduled to be implemented on July 30th has been postponed while a legal challenge against the rule is pending. The FTC has indicated that the postponement is likely to result in a minimal delay in the Rule’s implementation. Stay tuned for developments and information being distributed to you from TIADA and NIADA on how this will affect your dealership.

One of the most significant changes we will face over the next year and a half will be addressing the implications of HB 718 relating to replacing paper buyer tags with metal plates. As your association has been working to distribute and present information to keep you up to date, we are entering the time when the Texas Department of Motor Vehicles will be holding committee meetings and developing how the transformation will take place. Many of you have attended the town hall meetings, which have been extremely important in that transition as TIADA and TxDMV have worked together in historic fashion to complete this legislative directive. As the information from this process becomes available, we will continue communicating with you. Items you will need to be ready for include how to complete the exchange of information electronically, changes in the sales process, and how the new plates will be obtained, controlled, and safeguarded in your operations.

As you can see, plenty of spring cleaning and preparatory tasks are to be completed, and TIADA will be here to help. Please invest the time to read our communications and be on the lookout for information to assist you in implementing these rules and regulations.

Think about spring cleaning your dealership for all the new rules and regulations.

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