CIADA Insider Jan/Feb 13

JANUARY/FEBRUARY 2013

NEGATIVE SEO? EXPAND YOUR AUCTION OPTIONS

COMPLIANCE OVERDRIVE

Embrace the Green Revolution BECOMING ENVIRONMENTALLY CONSCIOUS CAN BE

COST-EFFECTIVE – AND FINANCIALLY REWARDINGPage 6

Xinside

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

V i s i t u s a t w w w . c i a d a . o r g

C O L O R A D O I N D E P E N D E N T A U T O M O B I L E D E A L E R S A S S O C I A T I O NCIADA INSIDER

CO_0113.indd 1 12/19/12 5:06 PM

CO_0113.indd 2 12/19/12 5:06 PM

JANUARY/FEBRUARY 2013 C I A D A I N S I D E R

3

w w w . c i a d a . o r g

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

CIADA Insider is published 6 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional of!ces. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of CIADA Insider or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identi!cation as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2013 by NIADA Services, Inc.

��Mkhr�@kZ__��mkhr9gbZ]Z'\hfEDITOR :g]r�?kb^]eZg]^k��Zg]r9gbZ]Z'\hf

�<akblmr�AZrg^l��\akblmr9gbZ]Z'\hf��Gb^fZg�Ikbgmbg`�

MAGAZINE CONTENTS

ADVERTISERS INDEX

BOARD OF DIRECTORSPRESIDENTDean [email protected]

Dave CardellaCardella’s Car [email protected]

Lloyd DonnellyKing Credit Auto [email protected]

TREASURERStan MartinStan’s Auto Sales [email protected]

CHAIRMANPeppe DeMarcoHighline [email protected]

WHAT’S NEW

3UH�/LFHQVLQJ�&HUWLÀFDWLRQColorado state statute requires anyone applying for a used motor vehicle dealer’s license or a XVHG�SRZHUVSRUWV�GHDOHU¶V�OLFHQVH�EH�FHUWL¿HG�WKURXJK�D�SUH�OLFHQVLQJ�FRXUVH��This seminar is also offered to salespeople to be able to pass the New Mastery Examination Test. Class is given at least once a week. Check our website for dates.

%DVLF�7LWOH�7UDLQLQJ�&ODVV-RLQ�XV�WR�JHW�XSGDWHG�LQIRUPDWLRQ�WR�OHDUQ�WKH�&255(&7�ZD\�WR�¿OO�RXW�\RXU�SDSHUZRUN�DW�WLPH�RI�VDOH��RWKHU�WRSLFV�LQFOXGLQJ�WLWOH�FRPSOLDQFH��GR¶V�DQG�GRQ¶WV�IRU�WLWOHV�DQG�PRUH��7KLV�FODVV�LV�JLYHQ�RQFH�D�PRQWK�IRU�KDOI�D�GD\�

NEW!!8SFRPLQJ�VHPLQDUV�RQ�YDULRXV�WRSLFV�RIIHUHG�WKH�VHFRQG�0RQGD\�RI�HYHU\�PRQWK�� *HW�XSGDWHV�RQ�ZKDW¶V�QHZ�IRU�VRFLDO�PHGLD��ZHE�DGYHUWLVLQJ��FRPSOLDQFH�DQG�PRUH��*R�WR�RXU�ZHEVLWH�WR�FKHFN�GDWHV�DQG�WLPHV�DQG�WR�UHJLVWHU�

Call CIADA for information on these classes, also to get your forms and/or Dealer/Salespersons Bonds. 303-239-8000

$OO�FODVVHV�DUH�VXEMHFW�WR�FKDQJH�ZLWKRXW�QRWLFHPlease check our website at www.ciada.org for any changes. ZZZ�FLDGD�RUJ��±�SKRQH��ID[

Colorado Independent Automobile Dealers Association /DNHZRRG��&RORUDGR

Education & Training Center��:HVW��WK�$YH��/DNHZRRG��&2��

F R O N T R A N G E C L A S S E S

06 The Environmentally Conscious Dealer10 Negative SEO?12 Government Report16 Creating an Elite Sales Force18 Expand Your Auction Options22 Compliance Overdrive

ADESA ........................................................................9Ally ...........................................................................13AutoManager ............................................................21 Auto Search Technologies ........................................16CarMax Auctions ......................................................17Dealer Services Corp./MAFS .............................19GoldStar GPS ................................... Inside Front CoverLobel Financial Corporation .......................................7Loveland Auto Auction ..............................................14Manheim.com ..........................................................11Manheim Denver .........................................Back CoverNIADA Certi!ed .........................................................19Protective ...................................................................5United Acceptance ..................................................15VAuto ............................................... Inside Back Cover

Certi!ed Master Dealer Program - Feb. & April 2013 Educates dealers on how to manage and grow a pro!table business “Effective Management Practices”, “Business Planning”, “Human Resources”, “Merchandising”. “Financial Management” Call (800)756-4232 to sign up.

TAKE US WITH YOUwww.niada.tv - Free Dealer Education 24/7

We are sure you share our relief that the 2012 election had ended!:KLOH�ZH�SUHGLFWHG�WKH�UDFH�IRU�3UHVLGHQW�DQG�WKH�YDULRXV�VWDWHZLGH�RI¿FHV�WR�FRPH�GRZQ�WR�WKH�

wire, we were surprised how quickly the elections were called on election evening.7KH�&RORUDGR�6HQDWH�'HPRFUDWV�PDQDJHG�WR�KROG�FRQWURO�RI�WKHLU�FKDPEHU�ZLWK�D��PDUJLQ��

GHVSLWH�WZR�NH\�UDFHV�EHLQJ�WLJKWO\�FRQWHVWHG�DQG�ZRQ�E\�D�IUDFWLRQ�RI�WKH�HOHFWRUDWH�7KH�UHVXOWV�LQ�WKH�&RORUDGR�+RXVH�ZHUH�PRUH�VXUSULVLQJ��DV�WKH�+RXVH�'HPRFUDWV�ZRQ�DOO�

RI�WKHLU�NH\�UDFHV�WR�HDUQ�D��PDUJLQ��$OO�WROG��WKHUH�ZLOO�EH��QHZ�OHJLVODWRUV�LQ��QRW�LQFOXGLQJ�WKRVH�ZKR�ZHUH�SUHYLRXVO\�LQ�DQRWKHU�FKDPEHU�:KDW�GRHV�WKH�IDFW�WKDW�DOPRVW�RQH�WKLUG�RI�WKH�VWDWH�OHJLVODWRUV�ZLOO�EH�QHZ�PHDQ�WR�PHPEHUV�RI�

&,$'$",W�PHDQV�D�ORW�RI�SHRSOH�ZLOO�QHHG�HGXFDWLQJ�DERXW�RXU�LQGXVWU\��,W�LV�D�KLVWRULFDO�QXPEHU�DQG�

\RXU�WHDP�ZLOO�EH�ZRUNLQJ�KDUG�WR�PDNH�VXUH�WKH�QHZ�SROLF\PDNHUV�DUH�DZDUH�RI�\RXU�QHHGV�WR�GR�EXVLQHVV�LQ�&RORUDGR�7KH�VHVVLRQ�EHJLQV�-DQ��ZLWK�'HPRFUDW�6SHDNHU�0DUN�)HUUDQGLQR�KROGLQJ�WKH�JDYHO�DQG�

3UHVLGHQW�-RKQ�0RUVH�LQ�FKDUJH�RI�WKH�6HQDWH�-RE�FUHDWLRQ��KHDOWKFDUH�UHIRUP�DQG�VWLPXODWLQJ�WKH�HFRQRP\�WR�JURZ�VHHPV�WR�EH�WKH�PDQWUD��

FRQWLQXHG�IURP�WKH�SUHYLRXV�*HQHUDO�$VVHPEO\��:KLOH�OHDGHUVKLS�LV�HQWLUHO\�GLIIHUHQW��WKRVH�WRSLFV��DORQJ�ZLWK�HGXFDWLRQ��ZLOO�EH�WKH�VDPH�EX]]ZRUGV�IRU�WKLV�VHVVLRQ�:LWK�WKH�IHGHUDO�JRYHUQPHQW�PRYLQJ�IRUZDUG�RQ�KHDOWKFDUH�UHIRUP��&RORUDGR�KDV�EHHQ�

DJJUHVVLYHO\�VHWWLQJ�XS�LWV�RZQ�V\VWHP�DQG�KDV�LGHQWL¿HG�D�PHWKRG�IRU�KRZ�LW�ZLOO�EH�GRQH��)RU�LQIRUPDWLRQ�UHJDUGLQJ�WKH�VPDOO�JURXS�SXUFKDVLQJ�SURMHFW��WKURXJK�WKH�&RORUDGR�%HQH¿WV�([FKDQJH��YLVLW�ZZZ�JHWFRYHUHGFR�RUJ�5HVRXUFHV�6PDOO�%XVLQHVVHV��7KH�OLQN�SURYLGHV�LQIRUPDWLRQ�WKDW�ZLOO�EH�SHUWLQHQW�WR�WKH�VL]H�RI�EXVLQHVV�\RX�RSHUDWH�:H�ZLOO�EH�PRQLWRULQJ�DQ\�SRWHQWLDO�OHJLVODWLRQ�WKDW�ZRXOG�RSHQ�RXU�EXVLQHVVHV�RQ�6XQGD\��DOWHU�

LQVXUDQFH�SURGXFWV�RU�DVVLVW�\RX�LQ�DQ\�DVSHFW�RI�\RXU�GD\�WR�GD\�RSHUDWLRQV�:DWFK�IRU�PRUH�LQIRUPDWLRQ�UHJDUGLQJ�WKH�OHJLVODWLYH�VHVVLRQ�HLWKHU�LQ�&,$'$�,QVLGHU�RU�YLD�HPDLO�

EODVW�IURP�&,$'$�7KDQNV�DJDLQ�IRU�\RXU�VXSSRUW�RI�\RXU�&,$'$�3ROLWLFDO�&RPPLWWHH�IXQG�+DSS\�1HZ�<HDU�DQG�,�ZLVK�\RX�EHVW�VXFFHVV�WKLV�FRPLQJ�\HDU�(GLH�%XVDP�$SRQWH�%XVDP�3XEOLF�$IIDLUV&,$'$�/REE\LVW

High Turnover Means Lots of Work to Do

Inside

CO_0113.indd 3 12/19/12 5:50 PM

C I A D A I N S I D E R JANUARY/FEBRUARY 2013

4


A DV E R T O R I A L

INDEPENDENT DEALERS NEED NEW ‘F&I MANAGER’

Having had the pleasure of serving automobile dealers for more than 50 years, we at 3URWHFWLYH�$VVHW�3URWHFWLRQ�DUH�FRPPLWWHG�WR�PHHWLQJ�WKH�¿QDQFH�DQG�LQVXUDQFH�QHHGV�of our dealer customers.

Like many readers of this magazine, we place great importance on industry studies to ensure we are on top of the latest market trends – and in particular, your needs. However, we recognize selling cars is more than numbers and charts. It’s a people business.

We spend countless hours working to support dealers of all sizes and types. We’re in the car business and a lot of what we do still takes place with a meeting, a handshake, leadership and good in-store training.0RUH�WKDQ�¿YH�GHFDGHV�RI�H[SHULHQFH�DQG�GRLQJ�EXVLQHVV�WKH�ROG�IDVKLRQHG�ZD\�KDV�

SRVLWLRQHG�3URWHFWLYH�WR�H[FHHG�WKH�H[SHFWDWLRQV�RI�RXU�GHDOHU�FXVWRPHUV�In our goal to share proven dealer solutions, we turned to the largest audience – the

growing group of independent auto dealers. We wanted to better understand what you UHDOO\�QHHG�WR�KHOS�IXUWKHU�GULYH�\RXU�),�VDOHV�DQG�SUR¿WV�

We asked many of you from across the county questions about your operations, current selling processes and the importance of F&I to your businesses. Your feedback was informative and insightful, and aligned with many of the current successful approaches we use today.

Here is a snapshot of what we learned: When we inquired about the types of vehicles and service contracts being sold

today, we learned the average vehicle sold is 3-7 years old with 50,000-100,000 miles on it. We discovered more than 65 percent of you sell vehicle service contracts in your dealership.

When we inquired how Protective could better support you, we learned that ease of doing business is very important, followed by working with a company you can trust. On the technology front, 55 percent of you use or plan to use an electronic device such as an iPad® or a tablet device to educate your current and future consumers about F&I products.

We found that in general, consumers still rely on good, quality education from you to learn about the value of a service contract and most consumers don’t have preconceived ideas about what that value really offers them.

The study reinforces what Protective Asset Protection already does well: helping dealers make money selling F&I products.

So what is the best way to help you be more productive, drive more revenue and increase customer retention within the F&I process?

We think the answer is obvious – hire an F&I manager. No one said it was a simple VROXWLRQ��%XW�DQ�H[SHULHQFHG�),�PDQDJHU�EULQJV�WKH�NQRZOHGJH�DQG�VNLOOV�WR�SURYLGH�customers with the best options and the true value of making an F&I purchase decision.

Obviously, adding to your headcount is no small task, and we asked ourselves what ZH�FRXOG�GR��6R�ZH�GHFLGHG�WR�³¿OO´�\RXU�),�SRVLWLRQ�IRU�\RX�

Okay, we didn’t hire an F&I manager for each independent dealer. Instead, we FUHDWHG�³WKH�PDQDJHU�´�%\�FRPELQLQJ�\RXU�FULWLFDO�),�QHHGV�ZLWK�RXU��\HDUV�RI�H[SHULHQFH��ZH�EXLOW�3URWHFWLYH¶V�3URWHFWLRQ�3OXV�6ROXWLRQ��GHVLJQHG�H[FOXVLYHO\�IRU�\RX�

You might have guessed your new F&I manager is not actually a person but instead is an electronic sales presentation using an iPad, or a desktop/laptop-based solution.:KLOH�RXU�QHZ�VWUDWHJ\�PLJKW�QRW�UHSODFH�DQ�H[SHULHQFHG�),�PDQDJHU¶V�NQRZ�KRZ�

and sales ability, it does provide you a tool to increase service contract sales. With our new F&I solution, you have the ability to offer a vehicle service contract customized WR�WKH�VSHFL¿F�QHHGV�RI�\RXU�FXVWRPHU��DOO�ZLWK�HDV\�WR�XVH�WHFKQRORJ\�GHVLJQHG�WR�overcome objections and help close the sale.

We want you to have the closest thing we could provide to an actual F&I manager. Protective’s Protection Plus vehicle service contract and supporting web/iPad app will SURYLGH�\RX�DQG�\RXU�GHDOHUVKLS�ZLWK�WKH�QH[W�EHVW�WKLQJ�3URWHFWLYH�$VVHW�3URWHFWLRQ�ORRNV�IRUZDUG�WR�H[SDQGLQJ�RXU�QDWLRQZLGH�UHDFK�DQG�

working with independent dealers to introduce them to their new F&I manager. You can learn more about the technology and our goal to bring you innovative new ideas and SUR¿W�JURZWK�VWUDWHJLHV�E\�YLVLWLQJ�ZZZ�QHZIDQGLPDQDJHU�FRP��

BY RICK KURTZSENIOR VICE PRESIDENT-DEALER SERVICES FOR PROTECTIVE ASSET PROTECTION HAS MORE THAN 23 YEARS OF INDUSTRY EXPERIENCE. PROTECTIVE ASSET PROTECTION PROVIDES F&I PRODUCTS FOCUSED ON ENHANCING PROFITABILITY AND CUSTOMER SATISFACTION. FOR MORE INFORMATION, CALL 800-950-6060, EXT. 5755, EMAIL [email protected] OR VISIT PROTECTIVEASSETPROTECTION.COM.

&KLQHVH�PDGH�FRXQWHUIHLW�DLUEDJV�KDYH�been used as replacement parts for as PDQ\�DV��XVHG�YHKLFOHV�WKDW�KDYH�been involved in a crash over the past three \HDUV��WKH�1DWLRQDO�+LJKZD\�7UDI¿F�6DIHW\�$GPLQLVWUDWLRQ�ZDUQHG�7KH�1+76$¶V�WHVWV�VKRZHG�WKH�EODFN�

PDUNHW�IDNH�DLUEDJV��ZKLFK�ORRN�OLNH�FHUWL¿HG�original equipment parts right down to the manufacturer’s logo, either don’t deploy at all RQ�LPSDFW�RU�H[SORGH��VHQGLQJ�¿HU\�VKUDSQHO�WRZDUG�WKH�GULYHU¶V�IDFH�

The airbags are being sold to independent repair shops as original equipment, the 1+76$�VDLG��7KH�DJHQF\�KDV�FRPSLOHG�D�OLVW�RI�PDNHV�DQG�PRGHOV�IRU�ZKLFK�WKH�FRXQWHUIHLW�DLUEDJV�DUH�NQRZQ�WR�H[LVW��EXW�DGPLWWHG�LW�GRHV�QRW�\HW�NQRZ�WKH�³IXOO�VFRSH�and scale of the problem” and said the list LV�OLNHO\�WR�³HYROYH�RYHU�WLPH�´�7KH�OLVW�LV�DYDLODEOH�DW�ZZZ�VDIHUFDU�JRY�

Cars that have had their airbags replaced by independent shops or by airbags purchased online during the past three years DUH�DW�ULVN��WKH�1+76$�VDLG��2ZQHUV�RI�VXFK�YHKLFOHV�DUH�DVNHG�WR�FRQWDFW�WKH�FDOO�FHQWHU�established by their car’s manufacturer to have the vehicle inspected and the airbag UHSODFHG�LI�QHFHVVDU\��7KH�OLVW�RI�FDOO�FHQWHUV�and other information is also available at ZZZ�VDIHUFDU�JRY�

In August, federal agents arrested a North Carolina auto mechanic and discovered PRUH�WKDQ��FRXQWHUIHLW�DLUEDJV��DFFRUGLQJ�WR�YDULRXV�PHGLD�UHSRUWV��7KH�FDVH�ZDV�UHSRUWHGO\�OLQNHG�WR�D�FDVH�LQ��in Tennessee, in which a Chinese citizen SOHDGHG�JXLOW\�WR�WUDI¿FNLQJ�LQ�FRXQWHUIHLW�DLUEDJV�DQG�ZDV�VHQWHQFHG�WR��PRQWKV� LQ�SULVRQ�7KH�1+76$�VDLG�QR�GHDWKV�RU�LQMXULHV�

have been tied to the counterfeit bags but said it is unclear whether police accident LQYHVWLJDWRUV�ZRXOG�EH�DEOH�WR�LGHQWLI\�D�IDNH�DLUEDJ�IURP�D�UHDO�RQH�DIWHU�D�ZUHFN��

WA R N I N G

NHTSA Warns of Counterfeit Airbags

CO_0113.indd 4 12/19/12 5:06 PM

CO_0113.indd 5 12/19/12 5:06 PM


6


The Environmentally Conscious DealerN O T O N LY I S I T C O S T E F F E C T I V E , I T CA N B E F I N A N C I A L LY R E WA R D I N G T O E M B R AC E T H E G R E E N R E VO LU T I O N .

Each day, consumers and businesses JURZ�PRUH�HQYLURQPHQWDOO\�FRQVFLRXV�� Yet we are a long way from where we need WR�EH�0DNH�QR�PLVWDNH��7KLV�LV�D�FDOO�IRU�DFWLRQ�For all of us in the auto industry, each car

GHDO�LV�SDUW�RI�D�JLJDQWLF�UHYHQXH�PDFKLQH��2XU�IRFXV�LV�RQ�UHWDLO�PDUNHW�YDOXH�YV��ZKROHVDOH�FRVW��6XEWUDFW�UHFRQ�H[SHQVHV��DGYHUWLVLQJ�H[SHQVHV��FRPPLVVLRQV��HWF��DQG�ZH¶UH�OHIW�ZLWK�QHW�SUR¿W�7KH�TXHVWLRQ�PDQ\�RI�XV�IDLO�WR�DVN��

What is the impact on the environment?)DFW��7KH�VHFRQG�OHDGLQJ�FDXVH�RI�JOREDO�

ZDUPLQJ�LV�FDUERQ�GLR[LGH�HPLVVLRQV�IURP�EXUQLQJ�JDVROLQH�

Our industry is married to the internal FRPEXVWLRQ�HQJLQH��2XU�VXFFHVV�LV�SUHGLFDWHG�RQ�SUR¿WV�IURP�VHOOLQJ�ODUJH�YROXPHV�RI�JDV�JX]]OLQJ��RLO�EXUQLQJ�KXQNV�RI�PHWDO�WR�FRQVXPHUV�

Often we gauge our performance on YROXPH��7KH�PRUH��WKH�EHWWHU�

Given the nature of our industry, it’s vital that we all embrace, with open arms, the need for a heightened level of HQYLURQPHQWDO�UHVSRQVLELOLW\�

There are countless ideas each of us FDQ�LPSOHPHQW�WRGD\�WKDW�ZLOO�PDNH�D�difference to the environment while feeding RXU�ERWWRP�OLQHV�

Green SolutionsRecycle: In my travels and visits to

GHDOHUVKLSV��,¶P�FRQVWDQWO\�VXUSULVHG�±�DQG�GLVDSSRLQWHG�±�E\�WKH�ODFN�RI�UHF\FOLQJ�ELQV�DW�GHDOHUVKLSV��7KDW�LV�WKH�HDVLHVW�ZD\�imaginable to have a positive impact on the HQYLURQPHQW�

Electronic fax: There are several FRPSDQLHV�WKDW�SURYLGH�WKH�VHUYLFH��8VLQJ�DQ�H�ID[�VHUYLFH�GUDVWLFDOO\�FXWV�GRZQ�RQ�SDSHU�DQG�LQN��DQG�LV�VXSHU�HDV\�WR�LPSOHPHQW�

Forget traditional mailers: Typical response rate on mail advertising is a mere

��SHUFHQW��6DYH�WKH�SDSHU��LQN��IXHO�DQG�PRQH\��$OORFDWH�WKRVH�UHVRXUFHV�HOVHZKHUH�

Turn off the printer: We print so PDQ\�WKLQJV�WKDW�MXVW�GRQ¶W�QHHG�WR�EH�SULQWHG��&UHGLW�UHSRUWV��IRU�H[DPSOH��Instead try saving them on your computer DORQJ�ZLWK�WKH�FXVWRPHU¶V�HPDLO�DGGUHVV�

Turn off excess lighting.Use a green demo:�7DNH�WKH�3ULXV�

IRU�D�VSLQ�LQVWHDG�RI�WKH�<XNRQ��0RVW�of us drive without passengers a large PDMRULW\�RI�WKH�WLPH��'ULYLQJ�D�VPDOOHU��PRUH�HI¿FLHQW�YHKLFOH�ZLOO�VDYH�\RX�JDV�PRQH\�ZKLOH�UHGXFLQJ�WR[LF�JUHHQKRXVH�HPLVVLRQV�

Walk or cycle: *R�E\�IRRW�RU�ELNH� WR�ZRUN�RU�WR�\RXU�IDYRULWH�OXQFK�RU� FRIIHH�VSRW�

Smartphone apps:�8VH�WKH�H[WUHPHO\�broad selection of apps to replace paper ZKHQHYHU�SRVVLEOH�

Do business with green businesses: $VN�\RXU�ERG\�VKRS�KRZ�LW�GLVSRVHV�RI�ZDVWH��&KRRVH�FRPSDQLHV�DQG�vendors that act in an environmentally UHVSRQVLEOH�PDQQHU�

Eliminate bottled water: Bottled ZDWHU�LV�H[WUHPHO\�LQHI¿FLHQW��,QVWHDG��LQVWDOO�DQG�XVH�D�ZDWHU�¿OWUDWLRQ�V\VWHP�

Hit the switch: Turn off and/or unplug unused appliances and computers ZKHQ�WKH\¶UH�QRW�LQ�XVH�

Lot lights: %H�GLOLJHQW�DERXW�DGMXVWLQJ�WKH�WLPHU�WKDW�FRQWUROV�\RXU�ORW�OLJKWV�

Every one of those items can be easily implemented today with little or no QHJDWLYH�LPSDFW�RQ�\RXU�EXVLQHVV��,Q�PRVW�FDVHV��\RX�ZLOO�H[SHULHQFH�D�VLJQL¿FDQW�cost savings, especially when that savings accumulates over the course of one or PRUH�\HDUV�6LPSO\�SXW��ZH�FDQ�QR�ORQJHU�LJQRUH�WKH�

fact we are depleting the world’s natural UHVRXUFHV��:H�DUH�GULYLQJ�DW�D�YHU\�IDVW�SDFH�WRZDUG�D�KRWWHU�DQG�KRWWHU�IXWXUH��:K\�LJQRUH�WKH�IDFWV�ZKHQ�\RX�FDQ�EHQH¿W�

LQ�QXPHURXV�ZD\V�E\�PDNLQJ�VRPH�SRVLWLYH�changes?

In addition, the consumer climate has changed to the point that it is not only cost HIIHFWLYH��EXW�LW�FDQ�EH�¿QDQFLDOO\�UHZDUGLQJ�WR�HPEUDFH�WKH�JUHHQ�UHYROXWLRQ��%H�JUHHQ�DQG�PDNH�VXUH�WKH�ZRUOG�NQRZV��<RX�will attract better talent along with more FXVWRPHUV�DV�D�UHVXOW�

Electric Vehicles and Hybrids$�PDMRU�LQGXVWU\�VKLIW�LV�VWDULQJ�DOO�RI�XV�

LQ�WKH�IDFH�OLNH�D�KXQJU\�EHDU�IUHVK�RXW�RI�KLEHUQDWLRQ��DQG�WKH�HOHFWULF�K\EULG�PDUNHW�VHJPHQW�LV�JURZLQJ�UDSLGO\��1HDUO\�HYHU\�PDMRU�PDQXIDFWXUHU�LV�JHWWLQJ�LQWR�WKH�VSDFH��and new competitors are emerging with FXWWLQJ�HGJH�SURGXFWV�WKDW�XVH�VWDWH�RI�WKH�DUW�WHFKQRORJ\�WR�PHHW�FRQVXPHU�GHPDQG�7KH�SURGXFWV�FXUUHQWO\�RQ�WKH�PDUNHW�DUH�

H[WUHPHO\�FRPSHOOLQJ��DQG�WKH�IXWXUH�RI�WKH�VHJPHQW�LV�H[FLWLQJ�

Here’s a lineup with some information DERXW�VHYHUDO�RI�WKH�SURGXFWV�DYDLODEOH�QRZ�

Tesla Model S:�7KH�¿UVW�IXOO�HOHFWULF�YHKLFOH�WR��PRVWO\��RYHUFRPH�FRQVXPHUV¶�1R��FRQFHUQ�±�UDQJH�DQ[LHW\��7KHUH�DUH�GLIIHUHQW�EDWWHU\�RSWLRQV�GHVLJQHG�WR�JR�XS�WR��RU�HYHQ��PLOHV�SHU�FKDUJH�DW��PSK�

Consumer interest in the product LV�SKHQRPHQDO��7KH�IDVW��VSRUW\�DQG�EHDXWLIXO�VHGDQ�LV�H[SHQVLYH�IRU�WKH�DYHUDJH�consumer, but will be attractive to the PDVVHV�RQ�WKH�UHPDUNHWLQJ�VLGH�

Tesla Roadster: 6LPLODU�WR�WKH�0RGHO� 6��EXW�QRW�DV�SUDFWLFDO��7KLV�LV�D�SXUH� VSRUWV�FDU�

Fisker Karma: Electric/hybrid with H[WHQGHG�UDQJH��,W�FDQ�JR�XS�WR��PLOHV�on 100 percent electric power, then the internal combustion engine engages for DQRWKHU��PLOHV��,W�DYHUDJHV�DERXW� ��PSJ�

BMW ActiveE:�%0:¶V�¿UVW�IXOO�HOHFWULF�YHKLFOH�LV�RQO\�DYDLODEOH�LQ�VHOHFW�PDUNHWV�RQ�D�WZR�\HDU�OHDVH�

C O N T I N U E D O N PAG E 8

CO_0113.indd 6 12/19/12 5:06 PM

CO_0113.indd 7 12/20/12 9:37 AM


8


Toyota Prius:�$UJXDEO\�WKH�PRVW�FRVW�HIIHFWLYH�VROXWLRQ�RQ�WKH�PDUNHW��7KRXJK�not a full electric vehicle, it deserves a spot in the lineup based on its massive success LQ�WKH�8�6��FRXSOHG�ZLWK�LWV�H[WUHPH�HI¿FLHQF\�DW��PSJ�

Chevrolet Volt: The Volt can go up WR��PLOHV�RQ�IXOO�HOHFWULF�SRZHU�EHIRUH�engaging the gasoline engine for up to DQRWKHU��PLOHV��5DQJH�DQ[LHW\�LV�D�WKLQJ�RI�WKH�SDVW�ZLWK�WKLV�HOHFWULF�K\EULG�YHKLFOH�

Ford Focus Electric: The Focus can go up to 100 miles on a charge and LV�PRUH�DIIRUGDEOH�WKDQ�DQ\�RI�LWV�OX[XU\�FRXQWHUSDUWV��6XSHU�IDVW�FKDUJLQJ��DQG��SHUFHQW�HOHFWULF�

Nissan Leaf: 7KH�/HDI�ZDV�WKH�¿UVW�mainstream pure electric car offered for VDOH�LQ�WKH�8�6��,W�LV�DQ�H[FHOOHQW�XUEDQ�commuter vehicle but falls short when it FRPHV�WR�WKH�UDQJH�DQ[LHW\�FRQFHUQ�

Consumers are more informed and HQYLURQPHQWDOO\�FRQVFLRXV�WRGD\�WKDQ�HYHU��7KH\�DUH�DFWLYHO\�VHHNLQJ�RXW�DQG�JRLQJ�RXW�RI�WKHLU�ZD\�WR�¿QG�JUHHQ�VROXWLRQV�WKDW�PHHW�WKHLU�QHHGV�

Additionally, gasoline prices are still KLVWRULFDOO\�KLJK��VR�WKH�¿QDQFLDO�DQG�environmental need for alternative fuel

VROXWLRQV�LV�JURZLQJ�E\�WKH�PLQXWH��$V�more products emerge that meet the GHPDQGV�RI�WKH�PRGHUQ�³HFR�VXPHU�´�WKRVH�SURGXFWV�ZLOO�LQHYLWDEO\�JDLQ�PRUH�WUDFWLRQ�

When it comes to pricing, most of those YHKLFOHV�DUH�DW�WKH�WRS�HQG�RU�MXVW�RXWVLGH�WKH�UHDFK�RI�WKH�DYHUDJH�FRQVXPHU��%XW�DV�WKH\�ÀRZ�LQWR�WKH�UHPDUNHWLQJ�VSDFH��D�PDMRULW\�RI�WKHP�ZLOO�IDOO�ULJKW�LQWR�WKH�VZHHW�VSRW�

Unfortunately, a large portion of our HOHFWULF�SRZHU�FRPHV�IURP�FRDO�EXUQLQJ�VRXUFHV��$FFRUGLQJ�WR�WKH�(QHUJ\�Information Administration, the most predominant sources of electricity in the 8�6��FRPH�IURP�FRDO��SHUFHQW��QDWXUDO�JDV��SHUFHQW��DQG�QXFOHDU�SRZHU��SHUFHQW��

Because so much of our energy is created E\�FRDO�EXUQLQJ�SRZHU�SODQWV��LW�LV�DUJXDEOH�that electric vehicles consume similar amounts of energy and as a result produce nearly as much greenhouse emissions DV�JDV�SRZHUHG�YHKLFOHV��8QWLO�ZH�FUHDWH�more clean and renewable energy sources, electric vehicles will remain an imperfect solution, But they represent a big step in WKH�ULJKW�GLUHFWLRQ�

In the end, innovation without

FDSLWDOL]DWLRQ�ZLOO�GLH��%XW�LI�HQRXJK�RI�XV�EX\�LQ�DQG�VXSSRUW�WKH�PRYHPHQW��WKH�VN\�LV�WKH�OLPLW�7KH�TXHVWLRQ�UHPDLQV��:KHUH�GR�\RX�

stand on the matter? Are you going to be one of the dealers with your hand raised ZKHQ�DQ�HOHFWULF�YHKLFOH�FURVVHV�WKH�EORFN"�Or are you going to stand on the sidelines and watch your competitors lead the charge?

Technology and the environment are WZR�PDMRU�LWHPV�WKDW�LQÀXHQFH�DQG�FKDQJH�KRZ�RXU�LQGXVWU\�ORRNV�DQG�IHHOV��'6&�remains committed to providing you not RQO\�ZLWK�WKH�EHVW�¿QDQFLQJ�RSWLRQV��EXW�also cutting edge technological solutions WR�HQKDQFH�DQG�WDNH�\RXU�EXVLQHVV�WR�WKH�QH[W�OHYHO�

We are also committed to shifting with your business as environmental needs DQG�FRQVXPHU�GHPDQG�GLFWDWHV�� :H�DUH�FRQ¿GHQW�ZH�KDYH�WKH�PRVW�ÀH[LEOH�ÀRRUSODQ�¿QDQFH�VROXWLRQV�LQ�WKH�LQGXVWU\��designed to empower you and your business WR�HPEUDFH�FKDQJH�DQG�JURZ�JUHHQ��

BY GARRETT JOREWICZ NORTHWEST REGIONAL DIRECTOR OF DEALER SERVICES CORPORATION.

C O N T I N U E D F RO M PAG E 6 THE ENVIRONMENTALLY CONSCIOUS DEALER

REGION I: MAINE, VERMONT, NEW HAMPSHIRE, MASSACHUSETTS, CONNECTICUT, RHODE ISLAND, NEW YORK, PENNSYLVANIA, NEW JERSEY, DELAWARE, MARYLAND, VIRGINIA, WEST VIRGINIA, INDIANA, OHIO AND MICHIGAN.

REGION II: KENTUCKY, TENNESSEE, NORTH CAROLINA, SOUTH CAROLINA, GEORGIA, FLORIDA AND ALABAMA.

REGION III: NORTH DAKOTA, SOUTH DAKOTA, MINNESOTA, WISCONSIN, ILLINOIS, IOWA, MISSOURI, KANSAS, NEBRASKA, OKLAHOMA, ARKANSAS, LOUISIANA, MISSISSIPPI AND TEXAS.

REGION IV: WASHINGTON, OREGON, CALIFORNIA, NEVADA, IDAHO, MONTANA, WYOMING, UTAH, COLORADO, ARIZONA, NEW MEXICO, ALASKA AND HAWAII.

The foundation invites you as an eligible student to complete this application in pursuit of scholarship funds to be paid to the college of your choice in the fall of 2013. Applications must be POSTMARKED NO LATER THAN MARCH 1, 2013 AND RECEIVED NO LATER THAN MARCH 11, 2013.

The National Independent Automobile Dealers Association Foundation was founded in 2006 by the National Independent Automobile Dealers Association, a 66-year-old trade association, to “improve the independent motor vehicle industry by informing and educating consumers of the general public and training individuals DVVRFLDWHG�ZLWK�RXU�LQGXVWU\�´

Historically, the association’s scholarship program was WKH�UHVSRQVLELOLW\�RI�WKH�1,$'$¶V�DX[LOLDU\��1RZ��KRZHYHU��DV�DQ�,56�DSSURYHG��F��QRQSUR¿W�RUJDQL]DWLRQ��WKH�foundation has assumed the oversight of that scholarship program’s functions.

Submit the completed application form with the required attachments in a 10 inch-by-13 inch envelope with adequate postage to:

SCHOLARSHIP SELECTION COMMITTEENIADA FOUNDATION2521 BROWN BLVDARLINGTON, TX 76006

All information MUST be included with the original application. No additional information will be accepted at a later date.

Staff will review the applications for completeness and will forward them to the Scholarship Selection Committee within NIADA and at Northwood University in Midland, Mich. They will be reviewed by region. One applicant will be selected from each of the four NIADA regions based on the merit of KLV�RU�KHU�VFKRODUVKLS�DSSOLFDWLRQ�DQG�ZLOO�EH�QRWL¿HG�E\�WKH�IRXQGDWLRQ�RI¿FH�QR�ODWHU�WKDQ�PLG�0D\��

FOUR REGIONAL SCHOLARSHIPS ARE AWARDED ANNUALLY AT THE ANNUAL NIADA CONVENTION IN JUNE.

Annual Scholarship Program

FIND THE SCHOLARSHIP APPLICATION AT WWW.NIADAFOUNDATION.ORG

Looking to improve your bottom line, manage more effectively, improve employee retention,

and leverage the newest and most effective marketing techniques? NIADA can help!

CERTIFIED MASTER DEALER TRAINING

CMD training positions you to take your success to

the next level. The CMD designation serves as recog-

nition of your dedication to the industry, and of your

proven record for stability, reliability, and

ethical business practices.

February: DallasApril: AtlantaJuly: Arizona

September: Atlantic City

DEALER 20 GROUPSShare successful ideas and best business practices

in this unique, cost-effective 20 Group, designed for

BHPH and retail dealers alike.

January: AtlantaApril: Dallas

August: AtlantaDecember: Dallas

FO R M O R E I N FO R M AT I O N , V I S I T:W W W. N I A DA . C O M / E D U CAT I O N . P H P

CO_0113.indd 8 12/19/12 5:06 PM

CO_0113.indd 9 12/19/12 5:06 PM


10


Negative SEO?:KHQ�\RX�¿UVW�KHDU�WKH�ZRUGV�

³1HJDWLYH�6(2´�\RX�SUREDEO\�WKLQN�LW�VRXQGV�OLNH�DQ�R[\PRURQ��<RX�NQRZ��OLNH�OLYLQJ�GHDG��RULJLQDO�FRS\��GDUN�OLJKW�RU�DFFLGHQWDOO\�RQ�SXUSRVH�

But two items that don’t seem to mesh DUH�¿QDOO\�GRLQJ�VR�'XULQJ�WKLV�HOHFWLRQ�\HDU��ZH�KDYH�

DOO�VHHQ�WKH�GLUW\�WULFNV�SROLWLFLDQV�KDYH�SOD\HG�RQ�HDFK�RWKHU�±�QHJDWLYH�VPHDU�FDPSDLJQV�DQG�WUXWK�VSLQQLQJ��%XW�GRQ¶W�WKLQN�WKRVH�WDFWLFV�DUH�LVRODWHG�WR�SROLWLFV�

In the automotive industry, there are JURZLQJ�QXPEHUV�RI�FRPSDQLHV�WKDW�OLNH�WR�play dirty as well, and if you are not aware RI�LW�\HW��\RX�QHHG�WR�FRQWLQXH�UHDGLQJ�

With the constant uphill battle of \RXU�FRPSHWLWLRQ�³ÀDJJLQJ´�\RXU�DGV�RQ�Craigslist or leaving negative reviews on OLVWLQJ�VHUYLFHV�VXFK�DV�'HDOHUUDWHU �FRP��*RRJOH�3ODFHV�RU�HYHQ�0HUFKDQW�&LUFOH��WKH�ZDU�KDV�MXVW�EHFRPH�D�ELW�PRUH�FRPSOLFDWHG�³1HJDWLYH�6(2´�FDQ�PHDQ�DQ\�W\SH�RI�

malicious harm intentionally caused to hurt the placement of a website’s search HQJLQH�UDQNLQJV��7KH�WKRXJKW�SURFHVV�LV�� LI�\RX�FDQ¶W�EHFRPH�1R��WKHQ�VDERWDJH�DOO�of those ahead of you until you are 1R��

Forcing one website to appear lower in WKH�6(53��VHDUFK�HQJLQH�UDQN�SODFHPHQW��means other websites will climb higher in WKH�6(53��7KDW¶V�ZK\�QHJDWLYH�6(2� is considered a viable model by unethical ZHEVLWH�SURYLGHUV�DQG�RQOLQH�PDUNHWLQJ�FRPSDQLHV�

The most common form of negative 6(2�LV�DFFRPSOLVKHG�E\�OLQNLQJ�D�ZHEVLWH�WR�ORZ�TXDOLW\��XQUHODWHG�EXVLQHVVHV��7KRVH�DUH�FDOOHG�³EODFN�KDW´�OLQNV�±�WKH\¶UH�WKH�EDG�JX\V�/LQNV�DUH�DPRQJ�WKH�PRVW�LPSRUWDQW�

LWHPV�ZKHQ�LW�FRPHV�WR�6(2��VHDUFK�engine optimization), but you want to PDNH�VXUH�UHODWHG�LQGXVWU\�EXVLQHVVHV�DUH�OLQNLQJ�LQWR�\RXU�ZHEVLWH��/LQNV�FDQ�pass value to your website when done WKH�ULJKW�ZD\��/LQNV�FDQ�KDUP�\RXU�ZHEVLWH�ZKHQ�GRQH�WKH�ZURQJ�ZD\��

7KHUH�DUH�WZR�W\SHV�RI�OLQNLQJ�WKDW�FDQ�EH�GRQH�ZLWK�DQ\�ZHEVLWH��LQWHUQDO�OLQNLQJ�DQG�H[WHUQDO�OLQNLQJ��,QWHUQDO�OLQNLQJ�LV�OLQNLQJ�WR�UHVRXUFHV�LQVLGH�\RXU�ZHEVLWH�GRPDLQ��ZKLOH�H[WHUQDO�OLQNLQJ�OLQNV�WR�web pages or other resources outside your ZHEVLWH�GRPDLQ�$�OLQN�RQ�DQRWKHU�ZHEVLWH�WKDW�SRLQWV�

to your site can either have value to it and help your site or it can have a negative HIIHFW�RQ�\RXU�ZHEVLWH�DQG�KXUW�\RX��([WHUQDO�OLQNV�WKDW�SRLQW�WR�\RXU�VLWH�DUH�D�FRPPRQ�ZD\�QHJDWLYH�6(2�LV�DSSOLHG��and it is very hard to see because it all happens away from your site and is QHDUO\�LQYLVLEOH�

Related incoming business links: <RX�PLJKW�KDYH�KHDUG�WKH�WHUP�³OLQN�VZDSSLQJ�´�7KDW¶V�ZKHQ�D�EXVLQHVV�DVNV�\RX�WR�SODFH�D�OLQN�WR�LW�RQ�\RXU�ZHEVLWH�LQ�H[FKDQJH�IRU�D�OLQN�IURP�LWV�ZHEVLWH�7KDW�FDQ�EH�EHQH¿FLDO�LI�WKH�EXVLQHVV�

LV�LQ�WKH�VDPH�LQGXVWU\�DV�\RX�DUH��)RU�H[DPSOH��LI�D�XVHG�FDU�GHDOHUVKLS�VZDSV�OLQNV�ZLWK�DQ�DXWR�UHSDLU�VHUYLFH�IDFLOLW\��D�WRZLQJ�FRPSDQ\�RU�D�WLUH�VDOHV�EXVLQHVV�7KHUH�LV�D�UHDVRQ�IRU�\RX�WR�VZDS�OLQNV�

because you are helping your customers navigate to a product or service that you might not offer that could be considered KHOSIXO��9DOXH�FDQ�EH�DVVRFLDWHG�WR�ERWK�ZHEVLWHV�LQ�WKDW�SURFHVV�(DFK�RI�WKH�OLQNV�IURP�WKH�RWKHU�

website that points to your website counts DV�DQ�³LQFRPLQJ�LQERXQG�OLQN´�WR�\RXU�VLWH��2WKHU�UHODWHG�OLQNV�WKDW�FDQ�TXDOLI\�DUH�IURP�WKLUG�SDUW\�SDLG�OLVWLQJ�VHUYLFHV��social media outlets, online video FKDQQHOV�DQG�EXVLQHVV�GLUHFWRU\�OLVWLQJV�,I�\RX�DUH�OLQN�VZDSSLQJ�ZLWK�RWKHU�

EXVLQHVVHV��\RX�DOZD\V�ZDQW�WR�PDNH�VXUH�WKH�OLQNV�\RX�DUH�SRLQWLQJ�WR�DUH�YDOLG�ZHEVLWHV�WKDW�DUH�VWLOO�LQ�EXVLQHVV��,I�\RX�DUH�OLQNLQJ�WR�DQ�RII�OLQH�ZHEVLWH��RU�³GHDG�OLQN�´�DV�LW�LV�FDOOHG��LW�FDQ�easily wipe out the value of hundreds of SRVLWLYH�OLQNV�

Disassociated business links and unnatural links:�'LVDVVRFLDWHG�

OLQNV�DUH�FRQVLGHUHG�DQ�DWWHPSW�WR�WU\�WR�ERRVW�WKH�UDQNLQJ�RI�\RXU�VLWH�IRU�WKH�VROH�SXUSRVH�RI�LQFUHDVLQJ�\RXU�SRVLWLRQ�6RPH�EXVLQHVVHV�WKLQN�DOO�OLQNV�DUH�

JRRG�OLQNV��5LJKW"�:URQJ��0DNH�VXUH�OLQNV�SRLQWLQJ�WR�\RXU�ZHEVLWH�DUH�ZLWKLQ�\RXU�JHQHUDO�LQGXVWU\�±�VWD\�DZD\�IURP�GLVDVVRFLDWHG�OLQNV��VXFK�DV�OLQNLQJ�D�XVHG�FDU�GHDOHUVKLS�ZLWK��VD\��D�ÀRZHU�VKRS��D�KDUGZDUH�VWRUH�RU�D�PRYLH�WKHDWHU�,Q�DGGLWLRQ�WR�GLVDVVRFLDWHG�OLQNV��WKHUH�

DUH�FRPSDQLHV�UHIHUUHG�WR�DV�³OLQN�IDUPV´�that advertise they’ll sell you hundreds RU�WKRXVDQGV�RI�LQFRPLQJ�LQERXQG�OLQNV��ZKLFK�DUH�UHIHUUHG�WR�DV�³EDFNOLQNV�´�7KH�FRPSDQLHV�ZLOO�SRLQW�WKRVH�OLQNV�WR�\RXU�ZHEVLWH�IRU�D�PRQWKO\�IHH�

Most of the time, the companies will FODLP�WKH�OLQNV�WKH\�SURYLGH�ZLOO�EH�ZLWKLQ�the same industry as your business, but WKHUH�LV�QR�UHDO�ZD\�WR�JXDUDQWHH�WKDW��Google recently released an update called WKH�3HQJXLQ�WKDW�LQ�SDUW�LGHQWL¿HV�ZHEVLWHV�LQ�WKH�OLQN�IDUP�EXVLQHVV�WKDW�RIIHU�XQQDWXUDO�OLQNV��,I�\RX�DUH�IRXQG� RQ�WKH�UHFHLYLQJ�HQG�RI�WKRVH�OLQNV��\RX�could have some serious issues with your RQOLQH�SODFHPHQW��%HFDXVH�WKHUH�LV�QRWKLQJ�WR�NHHS�D�

competitor from signing up your website’s 85/�ZLWK�WKRVH�NLQGV�RI�FRPSDQLHV��DQG�WKH�OLQNV�GR�QRW�DSSHDU�RQ�\RXU�ZHEVLWH��WKDW�VW\OH�RI�DWWDFN�FDQ�HDVLO\�JR�XQQRWLFHG�%H�DZDUH�RI�ZKR�LV�OLQNLQJ�WR�\RX��

3HULRGLFDOO\�ORRNLQJ�LQWR�ZKDW�OLQNV�DUH�being directed to your website can help GHWHFW�QHJDWLYH�6(2�FDPSDLJQV�WKDW�KDYH�been launched against your business, DV�ZHOO�DV�LGHQWLI\�DQ\�OLQNV�WKDW�DUH�XQUHODWHG�WR�\RXU�LQGXVWU\�

There are many free websites you can XVH�WR�FKHFN�IRU�EDFNOLQNV��$�JRRG�IUHH�VLWH�WR�FKHFN�LV�ZZZ�UDQNVLJQDOV�FRP��ZKLFK�allows you to identify the total number of EDFNOLQNV�DV�ZHOO�DV�JHW�D�SDJH�UDQN�RI�WKH�OLQNV�WKDW�DUH�SRLQWLQJ�WR�\RXU�ZHEVLWH��

BY MICHAEL D. JACKSON CEO OF AUTO SEARCH TECHNOLOGIES, INC. HE CAN BE REACHED AT (949) 608-0809 OR [email protected].

Negative campaigning LVQ¶W�OLPLWHG�WR�SROLWLFV�±�your competitors could be sabotaging your website

W E B C H AT

CO_0113.indd 10 12/19/12 5:06 PM

CO_0113.indd 11 12/19/12 5:06 PM


12


NIADA LEGISLATIVE TEAM UPDATEG OV E R N M E N T R E P O R T

REGULATORY REPORTFederal Trade Commission3URSRVHG�FKDQJHV�WR�WKH�8VHG�&DU�5XOH��

Last month, the FTC released a proposed change to the Used Car Rule, which would PDNH�WKH�IROORZLQJ�FKDQJHV�WR�WKH�%X\HUV�*XLGH��$GG�D�VWDWHPHQW�HQFRXUDJLQJ�FRQVXPHUV�

WR�VHHN�D�YHKLFOH�KLVWRU\�UHSRUW�DQG�GLUHFWLQJ�them to an FTC website with information on YHKLFOH�KLVWRULHV��$GG�D�VWDWHPHQW�WR�WKH�(QJOLVK�%X\HU¶V�

Guide noting the document is also available LQ�6SDQLVK�DQG�LQIRUPLQJ�6SDQLVK�VSHDNLQJ�FXVWRPHUV�WKH\�FDQ�UHTXHVW�WKH�6SDQLVK�JXLGH��$GGLQJ�FDWDO\WLF�FRQYHUWHUV�DQG�DLUEDJV�

WR�WKH�V\VWHPV�FRYHUHG�RQ�WKH�EDFN�RI�WKH�JXLGH��3ODFLQJ�ER[HV�RQ�WKH�EDFN�RI�WKH�JXLGH�

giving the dealer the option of informing the consumer whether the manufacturer’s warranty still applies or whether a PDQXIDFWXUHU¶V�XVHG�ZDUUDQW\��VXFK�DV�D�&32�ZDUUDQW\��RU�DQRWKHU�WKLUG�SDUW\�XVHG�YHKLFOH�ZDUUDQW\�DSSOLHV��7KH�)7&�LV�VHHNLQJ�FRPPHQWV�UHJDUGLQJ�

WKH�FKDQJHV��&RPPHQWV�PXVW�EH�VXEPLWWHG�E\�)HE��1,$'$�FKLHI�RSHUDWLQJ�RI¿FHU�6WHYH�

Jordan, Region III vice president Gordon 7RUPRKOHQ�DQG�FRXQVHO�6KDXQ�3HWHUVHQ�met with the FTC attorneys responsible for RYHUVLJKW�RI�WKH�8VHG�&DU�5XOH�RQ�'HF��WR�GLVFXVV�WKH�SURSRVHG�FKDQJHV�1,$'$�DOVR�SODQV�WR�VXEPLW�ZULWWHQ�

FRPPHQWV�In addition, the commission made minor

FKDQJHV�WR�WKH�6SDQLVK�JXLGH��HIIHFWLYH�)HE��7KH�UHYLVHG�6SDQLVK�YHUVLRQ�LV�DYDLODEOH�DW�ZZZ�IWF�JRY��'HDOHUV�FDQ�XVH�XS�WKHLU�UHPDLQLQJ�6SDQLVK�ODQJXDJH�JXLGHV�DIWHU�)HE��11, but must transition to the new guide when H[LVWLQJ�VWRFN�LV�XVHG�XS�7KH�)7&�LV�DOVR�VHHNLQJ�FRPPHQWV�RQ�

the nature and prevalence of deception in ,QWHUQHW�YHKLFOH�WUDQVDFWLRQV��1,$'$�ZLOO�VXEPLW�FRPPHQWV�

Settlement with car loan PRGL¿FDWLRQ�FRPSDQ\��2Q�1RY��WKH�FTC entered into a settlement agreement with D�PRWRU�YHKLFOH�ORDQ�PRGL¿FDWLRQ�FRPSDQ\�UHJDUGLQJ�LWV�XQIDLU�DQG�GHFHSWLYH�SUDFWLFHV��7KH�PRGL¿FDWLRQ�RIIHUHG�E\�WKH�FRPSDQ\�allegedly promised to save vehicles from UHSRVVHVVLRQ�DQG�ORZHU�YHKLFOH�SD\PHQWV��,Q�RUGHU�WR�REWDLQ�WKH�PRGL¿FDWLRQ��WKH�FRQVXPHU�ZDV�UHTXLUHG�WR�SD\�KLJK�XS�IURQW�IHHV��8OWLPDWHO\��WKH�PRGL¿FDWLRQ�SURYLGHG�QR�

YDOXH�WR�WKH�FRQVXPHU�No civil penalty was assessed to the

directors or company, but the company and its owner have heightened reporting and UHFRUG�UHWHQWLRQ�UHTXLUHPHQWV�RYHU�WKH�QH[W��\HDUV�

Interim Red Flags Rule, limiting WKH�GH¿QLWLRQ�RI�FUHGLWRU� The interim UXOH�FRQVWULFWV�WKH�WHUP�³FUHGLWRU�´�ZKLFK�LV�FRYHUHG�E\�WKH�5HG�)ODJV�5XOH��8QGHU�WKH�new rule, a creditor is covered if, in the ordinary course of business, it regularly obtains or uses consumer reports in credit transactions, provides information to consumer reporting agencies in relation to a credit transaction or advances funds to D�SHUVRQ�

The FTC has invited comments on the SURSRVHG�FKDQJH��1,$'$�LV�HYDOXDWLQJ�WKH�FKDQJHV�7RS�RI¿FLDOV�OHDYLQJ� The FTC

DQQRXQFHG�'DYLG�&��9ODGHFN��GLUHFWRU�RI�WKH�%XUHDX�RI�&RQVXPHU�3URWHFWLRQ��OHIW�'HF��to return to a faculty position at Georgetown 8QLYHUVLW\�/DZ�&HQWHU��'HSXW\�GLUHFWRU�&KDUOHV�$��+DUZRRG�ZLOO�VHUYH�DV�WKH�%&3¶V�DFWLQJ�GLUHFWRU�,Q�DGGLWLRQ��)7&�H[HFXWLYH�GLUHFWRU�(LOHHQ�

+DUULQJWRQ�UHWLUHG�DW�WKH�HQG�RI��ZLWK�GHSXW\�H[HFXWLYH�GLUHFWRU�3DW�%DN�WDNLQJ�RYHU�RQ�DQ�LQWHULP�EDVLV��7KH�H[HFXWLYH�director is responsible for the administration and management of the FTC, including human resources, information technology, ¿QDQFLDO�PDQDJHPHQW��DGPLQLVWUDWLYH�services and legal document processing and UHFRUGV�PDQDJHPHQW�DFWLYLWLHV�

Consumer Financial Protection Bureau2Q�'HF��WKH�&)3%�VXEPLWWHG�LWV�

annual report to Congress, as required E\�WKH�'RGG�)UDQN�$FW��UHODWLQJ�WR�LWV�supervisory powers under the Equal Credit Opportunity Act and the Home Mortgage 'LVFORVXUH�$FW��7KH�UHSRUW�KLJKOLJKWHG�WKH�&)3%¶V�LQYHVWLJDWLRQV�RYHU�WKH�SDVW�\HDU�DQG�XUJHG�FRQJUHVV�WR�UH�H[DPLQH�WKH�WUDQVSDUHQF\�RI�FRQVXPHU�¿QDQFH��VSHFL¿FDOO\�VWXGHQW�OHQGLQJ��7KH�&)3%�DQQRXQFHG�SODQV�WR�VKDUH�

consumer complaint data with state DJHQFLHV�WKDW�KDYH�MXULVGLFWLRQ�RYHU�consumer protection activities via a secure FKDQQHO�WKDW�SURWHFWV�FRQ¿GHQWLDO�DQG�SHUVRQDOO\�LGHQWL¿DEOH�LQIRUPDWLRQ��7KH�bureau plans to accept complaints and information from state agencies in the IXWXUH�7KH�)HGHUDO�5HVHUYH�%RDUG�DQG�WKH�&)3%�

increased the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M �&RQVXPHU�/HDVLQJ��IRU�H[HPSW�FRQVXPHU�FUHGLW�DQG�OHDVH�WUDQVDFWLRQV��7UDQVDFWLRQV�DW�RU�EHORZ�WKH�WKUHVKROGV�DUH�VXEMHFW�WR�UHJXODWLRQ��)RU�GHDOHUV��WKH�7UXWK�LQ�/HQGLQJ�Act and the Consumer Leasing Act generally will apply to consumer credit transactions and FRQVXPHU�OHDVHV�RI��RU�OHVV�EHJLQQLQJ�-DQ��7KH�:DOO�6WUHHW�-RXUQDO�UHSRUWHG�GHSXW\�

GLUHFWRU�5DM�'DWH��WKH�&)3%¶V�1R��RI¿FLDO�behind director Richard Cordray, will leave WKH�DJHQF\�KH�KHOSHG�FUHDWH�-DQ��DIWHU�WKH�&)3%�¿QDOL]HV�WKH�VODWH�RI�PRUWJDJH�UXOHV�&RQJUHVV�PDQGDWHG�'DWH�SOD\HG�D�FULWLFDO�UROH�LQ�WKH�DJHQF\¶V�

PRUWJDJH�UXOHPDNLQJ�SURMHFW��FRQVLGHUHG�the agency’s signature and most complicated DVVLJQPHQW��+H�UDQ�WKH�DJHQF\�IURP�$XJXVW��XQWLO�&RUGUD\�ZDV�DSSRLQWHG�

LEGISLATIVE REPORTRental Cars (S.1445, S.3502, H.R.

6094)6HQV��&KDUOHV�(��6FKXPHU��'�1�<��

%DUEDUD�%R[HU��'�&DOLI��DQG�&ODLUH�0F&DVNLOO��'�0R��UHDFKHG�DQ�DJUHHPHQW�ZLWK�WKH�WRS�IRXU�8�6��UHQWDO�FDU�FRPSDQLHV�to stop renting or selling vehicles that have EHHQ�UHFDOOHG�E\�WKHLU�PDQXIDFWXUHU��

Under the deal, rental car companies Enterprise/National/Alamo, Hertz/$GYDQWDJH��$YLV�%XGJHW�DQG�'ROODU�Thrifty, as well as the American Car Rental Association, have endorsed new legislation authored by the senators to ensure recalled YHKLFOHV�VWD\�RII�WKH�URDG��7RJHWKHU��WKH�IRXU�FRPSDQLHV�UHSUHVHQW��SHUFHQW�RI�WKH�UHQWDO�FDU�PDUNHW��

The deal caps a long push by the senators DQG�FRQVXPHU�VDIHW\�DGYRFDWHV�WR�¿[�D�ORRSKROH�LQ�FXUUHQW�ODZ��:KLOH�FDU�GHDOHUV�are prohibited from selling a recalled automobile, rental car companies are not EDUUHG�IURP�UHQWLQJ�RU�VHOOLQJ�RQH�7KH�QHZ�6HQDWH�ELOO�ZRXOG�FKDQJH�WKDW��

requiring vehicles under a safety recall to EH�JURXQGHG�DV�VRRQ�DV�SRVVLEOH��5HQWDO�FRPSDQLHV�ZRXOG�KDYH�XS�WR��KRXUV�IRU�UHFDOOV�WKDW�LQFOXGH�PRUH�WKDQ��YHKLFOHV�LQ�WKHLU�ÀHHW�

Also under the legislation, the National +LJKZD\�7UDI¿F�6DIHW\�$GPLQLVWUDWLRQ�ZLOO��IRU�WKH�¿UVW�WLPH��KDYH�DXWKRULW\�WR�investigate and police rental car companies’ UHFDOO�VDIHW\�SUDFWLFHV�

The timing of any action on the new OHJLVODWLRQ�LV�VWLOO�XQFOHDU��

CO_0113.indd 12 12/19/12 5:06 PM

CO_0113.indd 13 12/19/12 5:06 PM


14


Test Drive Generator Does All the WorkOne of the great things about the

Internet invading the dealership business is the innovative new ways it helps VHOO�FDUV��&HUWDLQO\�WKH�DYDLODELOLW\�RI�information about every vehicle on your ORW�KDV�FRPSOLFDWHG�WKH�EXVLQHVV�±�EXW�VRPHWLPHV�LW¶V�IRU�WKH�EHWWHU��$Q�H[DPSOH�LV�WKH�VLPSOH�LGHD�WKDW�

customers visiting your website should be DEOH�WR�PDNH�DQ�DSSRLQWPHQW�WR�WHVW�GULYH�WKH�FDU�WKH\�OLNH�ZLWKRXW�DQ\�HIIRUW�RQ�WKH�SDUW�RI�WKH�GHDOHU��7KDW¶V�D�JRRG�WKLQJ��because every day there are thousands of OHDGV�LQ�\RXU�PDUNHW��DQG�LW�LV�SUHWW\�WRXJK�WR�HQJDJH�WKHP�DOO��7HVW�'ULYH�*HQHUDWRU��D�FRPSDQ\�

EDVHG�LQ�0XNLOWHR��:DVK��KDV�SHUIHFWHG�software that allows any dealer, on any type of automotive website platform, to allow customers to schedule their own test GULYHV�ZLWKRXW�DQ\�KXPDQ�LQWHUYHQWLRQ��&XVWRPHUV�MXVW�FOLFN�WKH�EXWWRQ�QH[W�WR�WKH�FDU�WKH\�OLNH�DQG�VFKHGXOH�WKH�WHVW�GULYH�RQ�WKHLU�RZQ�:K\�LV�WKDW�D�JRRG�WKLQJ"�7KLQN�DERXW�

LW��,I�WKH�FXVWRPHU�LV�VFKHGXOLQJ�KLV�RU�KHU�

RZQ�WHVW�GULYH��DQG�7HVW�'ULYH�*HQHUDWRU�DSSRLQWPHQWV�VKRZ�XS��WR��SHUFHQW�RI�the time, why, oh why, would you want a VDOHVSHUVRQ�WR�VWLFN�KLV�QRVH�LQ�DQG�VFUHZ�that up?

Once the customer has scheduled a test GULYH��WKH�IRONV�DW�7HVW�'ULYH�*HQHUDWRU�VD\��³/HDYH�WKHP�DORQH�´

Nothing good will come of an email or SKRQH�FDOO�IURP�D�VDOHVSHUVRQ��$W�EHVW��WKH�FXVWRPHU�ZLOO�VWLOO�VKRZ�XS��$W�ZRUVW��something the salesperson says or writes will give the customer second thoughts DERXW�FRPLQJ�

Now, you might say your salespeople are tremendous, but why mess with a good thing? Customers are coming for a WHVW�GULYH��/HDYH�WKHP�DORQH�DQG�OHW�WKHP�DUULYH��+DYH�\RX�HYHU�VHHQ�D�VDOHVSHUVRQ�WDON�D�SHUVRQ�RXW�RI�D�VDOH�E\�WDONLQJ�WRR�PXFK"�,W¶V�QRW�D�SUHWW\�VLJKW�7HVW�'ULYH�*HQHUDWRU�WDNHV�FDUH�RI�

VFKHGXOLQJ�WKH�WHVW�GULYH�DSSRLQWPHQW��,W�VHQGV�HPDLO�FRQ¿UPDWLRQV�DQG�UHPLQGHUV�DQG�WH[W�UHPLQGHUV��7KH�7HVW�'ULYH�*HQHUDWRU�V\VWHP�KDV�D��WR��SHUFHQW�

VKRZ�UDWLR�DQG�D��WR��SHUFHQW�VROG�UDWLR��3HUKDSV�WKH�EHVW�WKLQJ�DERXW�7HVW�'ULYH�*HQHUDWRU�LV�WKH�SULFH��SHU�PRQWK�IRU�D�GHDOHUVKLS��ELOOHG�PRQWK�WR�PRQWK��ZLWK�QR�ORQJ�WHUP�FRQWUDFW�DQG�QR�VHWXS�IHHV�6HHPV�OLNH�D�SUHWW\�JRRG�GHDO�WR�PH��

whether you get 10 test drives per month RU��,I�\RX�ZDQW�WR�KHDU�PRUH��FDOO�7HVW�'ULYH�*HQHUDWRU�DW��HPDLO�LQIR#7HVW'ULYH*HQHUDWRU�FRP�RU�YLVLW�ZZZ�7HVW'ULYH*HQHUDWRU�FRP�WR�ERRN�D�GHPR�

BY BRETT STEVENSONDEALER MARKETING MAGAZINE

N E W P RO D U C T S

VISIT WWW.TESTDRIVEGENERATOR.COM

CO_0113.indd 14 12/19/12 5:06 PM


15


,Q�1RYHPEHU�DQG�'HFHPEHU��PRUH�WKDQ�4 million American businesses, including ��UHWDLOHUV��ZLOO�UHFHLYH��(FRQRPLF�&HQVXV�IRUPV��5HVSRQVHV�WR�WKH�questionnaire are required by law to be UHWXUQHG�E\�)HE��(YHU\�¿YH�\HDUV��WKH�JRYHUQPHQW�

conducts the Economic Census to develop a comprehensive portrait of American business, from the national to the local OHYHO��UHO\LQJ�RQ�WLPHO\�DQG�DFFXUDWH�GDWD�7KH�8�6��&HQVXV�%XUHDX�KDV�FUHDWHG�D�

web page __ EXVLQHVV�FHQVXV�JRY __ to provide information about the Economic Census as well as statistics businesses can use to assess and grow their business RSHUDWLRQV�

The site includes webinars and videos to educate businesses about the census and what it means to them, as well as a section JHDUHG�WRZDUG�VPDOO�EXVLQHVVHV��

FOR MORE INFORMATION, VISIT BUSINESS.CENSUS.GOV.

Economic Census Coming Soon

E C O N O M I C N E W S

A S S O C I AT I O N N E W S

United Acceptance Joins as a Bronze Partner8QLWHG�$FFHSWDQFH��,QF��D�¿QDQFLDO�RUJDQL]DWLRQ�IRXQGHG�LQ��WKDW�SURYLGHV�FDSLWDO�DQG�VHUYLFLQJ�VROXWLRQV�WR�%X\�+HUH�3D\�+HUH�YHKLFOH�GHDOHUVKLSV��FDSWLYH�¿QDQFH�FRPSDQLHV�DQG�LQGHSHQGHQW�¿QDQFH�FRPSDQLHV��KDV�MRLQHG�1,$'$�DV�D�%URQ]H�OHYHO�1DWLRQDO�&RUSRUDWH�3DUWQHU�8$,¶V�VWURQJ�ORQJ�WHUP�UHODWLRQVKLSV�ZLWK�DXWR�GHDOHUV�DQG�LWV�HPSOR\HHV�KDYH�

contributed to its growth from a local company in Atlanta to an organization that SXUFKDVHV�UHFHLYDEOHV�QDWLRQZLGH�8$,¶V�PLVVLRQ�LV�WR�EH�D�VWURQJ�¿QDQFLDO�SDUWQHU�WR�XVHG�FDU�GHDOHUVKLSV��DOORZLQJ�

WKHP�WR�DFFHOHUDWH�WKHLU�SUR¿WV�WKRXJK�WKH�VDOH�RI�WKHLU�UHFHLYDEOHV�±�LWV�VORJDQ�LV�³3UR¿WV�7KURXJK�3DUWQHUVKLS�´,Q�D�WLPH�LQ�ZKLFK�LW�LV�EHFRPLQJ�LQFUHDVLQJO\�GLI¿FXOW�WR�VHFXUH�FUHGLW�IDFLOLWLHV��

VHOOLQJ�FRQWUDFWV�FDQ�EH�D�YLDEOH�VRXUFH�RI�UDLVLQJ�FDSLWDO��8QLWHG�$FFHSWDQFH�SXUFKDVHV�DXWRPRELOH�LQVWDOOPHQW�VDOHV�FRQWUDFWV��EXON�UHFHLYDEOHV��IURP�%+3+�GHDOHUV��IUDQFKLVH�GHDOHUV��¿QDQFH�FRPSDQLHV�DQG�EDQNV��,WV�EXON�SXUFKDVH�SURJUDP�LV�VLPSOH��DQG�TXLFN�IXQGLQJ�LV�DYDLODEOH�WR�DVVLVW�ZLWK�LPPHGLDWH�FDVK�ÀRZ�QHHGV�8$,�FDQ�WXUQ�XQFROOHFWHG�UHFHLYDEOHV�LQWR�OLTXLG�FDVK��UHGXFH�ULVN�DQG�UHSRVVHVVLRQ�

FRVWV��LPSURYH�\LHOG��LPSURYH�SUR¿W�YHUVXV�SRLQW�RI�VDOH�¿QDQFLQJ�DQG�UHGXFH�VWUHVV�E\�DOORZLQJ�GHDOHUV�WR�VHOO�YHKLFOHV�LQVWHDG�RI�FROOHFWLQJ�GHEWV�

FOR MORE INFORMATION, VISIT WWW.UAIDIRECT.COM OR CALL 877-281-2360.

CO_0113.indd 15 12/19/12 5:06 PM


16


In most sales teams, there are a handful of WRS�SHUIRUPHUV�±�WKHQ�WKHUH¶V�HYHU\RQH�HOVH��Imagine how much more successful your dealership could be if every salesperson was DQ�HOLWH�WRS�SHUIRUPHU�7KLQN�WKDW¶V�LPSRVVLEOH"�7KLQN�DJDLQ�In other areas, we see groups of elite

people who band together for a common goal RU�SXUSRVH��6XSHU�%RZO�WHDPV��1DY\�6($/V��WRS�FROOHJH�PDUFKLQJ�EDQGV��HWF�

In any of those groups, you don’t see RQH�RU�WZR�SHRSOH�GRLQJ�DOO�WKH�ZRUN��outperforming their peers or being the lone VXSHUVWDUV��5DWKHU��HYHU\RQH�RQ�WKH�WHDP�LV�DQ�HOLWH�PHPEHU��7KH�JURXS�DV�D�ZKROH�VKLQHV�because each member contributes greatly, plays an integral part and gives 100 percent DW�DOO�WLPHV�

If it’s possible with those groups of people, LW¶V�SRVVLEOH�IRU�\RXU�VDOHV�GHSDUWPHQW�

But creating an elite group of salespeople involves much more than placing a help ZDQWHG�DG�RQ�D�MRE�ERDUG��,W�UHTXLUHV�D�VSHFL¿F�hiring process that attracts only the best of the EHVW��+HUH�DUH�VRPH�VWHSV�WR�GR�WKDW�

0DNH�MRLQLQJ�\RXU�VDOHV�WHDP�GLI¿FXOW��You cannot create an elite team if becoming D�PHPEHU�LV�HDV\��:RXOG�D�6XSHU�%RZO�WHDP�be spectacular if it let anyone with a helmet RQ�WKH�¿HOG"�2I�FRXUVH�QRW��,Q�RUGHU�IRU�DQ\�team be considered elite, there must be a VWULQJHQW�SURFHVV�WR�MRLQ�WKH�WHDP��6R�ZKLOH�\RX�VKRXOG�DGYHUWLVH�RSHQ�

sales positions, realize that conducting one interview prior to bringing someone RQ�ERDUG�LV�QRW�HQRXJK��5DWKHU��FRQGXFW�multiple interviews, with the candidate VSHDNLQJ�WR�WKH�VDOHV�PDQDJHU�DQG�RWKHU�H[HFXWLYHV�7KH�NH\�LV�WR�ORRN�IRU�SHRSOH�ZKR�EHOLHYH�

in team spirit, have a positive attitude DQG�GLVSOD\�D�NHHQ�VDOHV�GHPHDQRU��'RQ¶W�have your HR department be responsible IRU�KLULQJ�VDOHVSHRSOH��+5¶V�RQO\�UROH�LQ�hiring salespeople should be to process the SDSHUZRUN�

Finally, and perhaps most important, PDNH�VXUH�DQ\RQH�\RX�GHFLGH�WR�EULQJ�RQ�board realizes that getting past the initial KLULQJ�SURFHVV�LV�WKH�HDV\�SDUW��1RZ�WKH\�

PXVW�SURYH�WKDW�WKH\�KDYH�ZKDW�LW�WDNHV�WR�EH�DQ�HOLWH�SOD\HU��+RZ"�%\�FRPSOHWLQJ�VWHS�1R��&UHDWH�DQ�LQWHQVH�VL[�ZHHN�QHZ�KLUH�

training program in which no more than 60 SHUFHQW�SDVV��)RU�HYHU\�WKUHH�SHRSOH�ZKR�PDNH�LW�SDVW�\RXU�LQLWLDO�KLULQJ�SURFHVV��RQO\�one should actually become a salesperson IRU�\RXU�RUJDQL]DWLRQ��:KLOH�WKDW�PLJKW�VRXQG�OLNH�D�ZDVWH�RI�WLPH�DQG�PRQH\��LW¶V�UHDOO\�DQ�LQYHVWPHQW�LQ�PDNLQJ�\RXU�VDOHV�WHDP�WKH�EHVW�LW�FDQ�EH��

The only time you really waste time and money is when you allow low producing VDOHVSHRSOH��W\SLFDOO\�SHRSOH�ZKR�DUH�QRW�D�¿W�IRU�VDOHV��SHRSOH�ZKR�GRQ¶W�OLNH�\RXU�FRPSDQ\�or people who have the wrong attitude) to be D�SDUW�RI�\RXU�RUJDQL]DWLRQ��7KH�EHVW�ZD\�WR�DYRLG�WKDW�LV�WR�PDNH�VXUH�WKH�SHRSOH�LQ�WKH�sales role have been thoroughly trained and UHDOO\�ZDQW�WR�EH�WKHUH��

Having an intense training period is the same approach used by colleges and the PLOLWDU\��)RU�H[DPSOH��IRU�HYHU\��PHQ�ZKR�VWDUW�1DY\�6($/�WUDLQLQJ��RQO\��

MAKE YOUR SALES TEAM AN ELITE FORCEYO U R SA L E S T E A M I S T H E FAC E O F T H E C O M PA N Y – S H O U L D N ’ T O N LY T H E B E S T O F T H E B E S T R E P R E S E N T YO U R B R A N D ?

A S S O C I AT I O N N E W S

Keystone Offers Discount to NIADA Members

Keystone Automotive has become the 1DWLRQDO�,QGHSHQGHQW�$XWRPRELOH�'HDOHUV�$VVRFLDWLRQ¶V�ODWHVW�1DWLRQDO�0HPEHU�%HQH¿W�SDUWQHU��RIIHULQJ�1,$'$�PHPEHUV��KRXU�guaranteed delivery and custom member GLVFRXQWV�,Q�DGGLWLRQ��1,$'$�PHPEHUV�FDQ�JHW�

.H\VWRQH¶V�(�.H\�H�FRPPHUFH�DFFHVVRULHV�research/ordering resource for a monthly fee RI��±�OHVV�WKDQ�KDOI�WKH�QRUPDO�IHH�RI��7KH�H�FRPPHUFH�WRRO�SURYLGHV�DFFHVV�WR�DOO�.H\VWRQH�8�6��LQYHQWRU\�OLVWLQJV��6LPSO\�HQWHU�D�YHKLFOH¶V�PDNH�DQG�PRGHO�IRU�DQ�DXWRPDWLF�OLVWLQJ�RI�DFFHVVRULHV�DYDLODEOH�E\�FDWHJRU\��,QYHQWRU\�LV�XSGDWHG�GDLO\�

Keystone is the leading distributor DQG�PDUNHWHU�RI�DIWHUPDUNHW�DXWRPRWLYH�equipment and accessories in North America, ZLWK�PRUH�WKDQ��VXSSOLHUV�DQG��PLOOLRQ�DFFHVVRULHV�DQG�HTXLSPHQW�LQ�LQYHQWRU\�

FOR MORE INFORMATION OR TO ORDER PLEASE GO TO WWW.KEYSTONEAUTOMOTIVE.COM OR CALL 1-800-432-8063.

CO_0113.indd 16 12/19/12 5:06 PM


17


VXFFHHG��7KDW¶V�D�VXFFHVV�UDWH�RI�RQO\��WR��SHUFHQW�%XW�WKLQN�DERXW�LW��:KR�GR�\RX�ZDQW�

carrying out the country’s most dangerous and critical military missions? Only the best of the best, right? Well, who do you want to be the face of your company, representing your products and services and interacting daily with your customers? Again, only the EHVW�RI�WKH�EHVW��

Your intense training program should FRYHU��3URGXFW�NQRZOHGJH��*R�RYHU�\RXU�

products and services thoroughly to ensure the prospective salesperson comprehends WKHP�LQVLGH�DQG�RXW��5ROH�SOD\LQJ��*R�RYHU�W\SLFDO�VDOHV�

scenarios as well as the most challenging VDOHV�VLWXDWLRQV�\RX�FDQ�WKLQN�RI��6HH�KRZ�WKH�SHUVRQ�UHVSRQGV�ZKHQ�WKLQJV�JR�ZURQJ��6DOHV�VNLOOV��(YHQ�LI�WKH�SHUVRQ�KDV�SULRU�

VDOHV�H[SHULHQFH��\RX�ZDQW�WR�JLYH�KLP�DOO�WKH�VNLOOV�DQG�WUDLQLQJ�KH¶OO�QHHG�WR�EH�VXFFHVVIXO��7KHQ�PDNH�VXUH�KH�NQRZV�KRZ�WR�LPSOHPHQW�WKH�VNLOOV��&RPSDQ\�VWUXFWXUH��7HDFK�WKH�

VDOHVSHRSOH�DOO�WKH�SDUWV�RI�WKH�EXVLQHVV��7UDLQ�WKHP�RQ�HYHU\�GHSDUWPHQW�VR�WKH\�NQRZ�WKH�intricacies of the business and understand what happens both before and after the sale

LV�PDGH��5HVHDUFK��3XW�WKHP�WKURXJK�WKH�

WHGLRXV�LQIRUPDWLRQ�JDWKHULQJ�ZRUN��0DNH�WKHP�UHVHDUFK�WKH�PDUNHW��GHPRJUDSKLFV��FRPSHWLWLRQ��HWF��,I�WKH\¶UH�QRW�ZLOOLQJ�WR�GR�WKH�GHWDLOV��WKH\¶UH�QRW�D�¿W�\RXU�FRPSDQ\�

That intense process will weed out the SHRSOH�ZKR�GRQ¶W�KDYH�ZKDW�LW�WDNHV�WR�EH�SDUW�RI�DQ�HOLWH�WHDP��,Q�IDFW��DERXW��SHUFHQW�RI�WKH�SHRSOH�ZLOO�GURS�RXW�E\�ZHHN�IRXU�

For the ones remaining, offer them a FKRLFH�WR�VWD\�RU�JR��DV�LQ��³,¶OO�JLYH�\RX�$1,000 right now for you to leave the training DQG�WKH�FRPSDQ\��RU�\RX�FDQ�HOHFW�QRW�WR�WDNH�WKH�PRQH\�DQG�VWD\�´7KRVH�ZKR�WDNH�WKH�PRQH\�DUHQ¶W�WKH�W\SH�

RI�SHRSOH�\RX�ZDQW�RQ�\RXU�HOLWH�WHDP��,W¶V�EHWWHU�WR�SD\�D�VPDOO�SULFH�QRZ�WR�¿QG�WKDW�out than waste a lot of money down the road ZLWK�D�EDG�KLUH�%\�WKH�VL[�ZHHN�PDUN��RQO\��SHUFHQW�RI�

those who started should still be standing VWURQJ�ZLWK�\RX��7KRVH�DUH�\RXU�HOLWH�VDOHV�WHDP�PHPEHUV�,I�PRUH�WKDQ��SHUFHQW�PDNH�LW�WKURXJK�

WKH�WUDLQLQJ��\RXU�WUDLQLQJ�LV�WRR�HDV\��$Q\WKLQJ�WKDW¶V�WRR�HDV\�KDV�QR�YDOXH�+DYH�FRQVLVWHQW��RQJRLQJ�WUDLQLQJ��:KLOH�

WKH�LQLWLDO�WUDLQLQJ�SHULRG�LV�D�RQH�WLPH�WKLQJ��DOO�VDOHVSHRSOH�VKRXOG�DWWHQG�UHJXODU�±�DQG�

OHVV�LQWHQVH�±�PRQWKO\�WUDLQLQJ�VHVVLRQV��'XULQJ�WKH�VHVVLRQV��GR�UROH�SOD\LQJ��WUDLQ�RQ�VSHFL¿F�VDOHV�VNLOOV�DQG�¿QG�RXW�DQ\�VSHFL¿F�FKDOOHQJHV�\RXU�WHDP�LV�IDFLQJ�

Use the ongoing training sessions to create ERQGLQJ�H[SHULHQFHV�IRU�WKH�VDOHV�WHDP��+DYH�them help each other solve problems, offer VXJJHVWLRQV�DQG�VKDUH�EHVW�SUDFWLFHV��:K\"�Because the goal is to continually develop a WHDP��QRW�DQ�LQGLYLGXDO�$V�7HFXPVHK��WKH�6KDZQHH�FKLHI��VDLG��

³$�VLQJOH�WZLJ�EUHDNV�HDVLO\��EXW�D�EXQGOH�RI�WZLJV�LV�VWURQJ�´�%\�EULQJLQJ�\RXU�VDOHVSHRSOH�together monthly, you’re creating a strong DQG�HOLWH�VDOHV�IRUFH�WKDW�FDQ¶W�EH�EURNHQ�7R�EH�WKH�EHVW��UHFUXLW�WKH�EHVW��6DOHV�LVQ¶W�

DQ�HDV\�SURIHVVLRQ��6R�MRLQLQJ�DQ�HOLWH�VDOHV�WHDP�VKRXOGQ¶W�EH�HDV\�HLWKHU��7KDW¶V�ZK\�\RX�QHHG�WR�VKLIW�\RXU�IRFXV�IURP�¿OOLQJ�D�VDOHV�SRVLWLRQ�WR�EXLOGLQJ�DQ�HOLWH�VDOHV�IRUFH�

After all, your sales team really is the face RI�WKH�FRPSDQ\��6KRXOGQ¶W�RQO\�WKH�best of the best be representing your brand?

BY VICTOR AROCHOVICTOR AROCHO IS A SALES DEVELOPMENT EXPERT, SALES TRAINER AND MANAGING PARTNER OF POTENTIAL SALES & CONSULTING GROUP, SPECIALIZING IN GROWING SALES BY BRINGING ACCOUNTABILITY TO THE SALES PROCESS AND CRAFTING A SALES CULTURE OF SUCCESS. FOR MORE INFORMATION, VISIT WWW.VICTORAROCHO.COM.

MAKE YOUR SALES TEAM AN ELITE FORCE

CO_0113.indd 17 12/19/12 5:06 PM


18


CIADA has been helping Independent Dealers for 71 years. This non-profit trade association was established in 1941 to represent car dealers in Colorado. CIADA has a presence before the state legislature and becomes involved with the regulatory agencies whenever necessary. CIADA is the only trade association in Colorado representing the Independent Used Car Dealer. The association is organized to assure that control of the policies and activities of the industry is in the hands of active dealer members. CIADA is dedicated to combating legislation that is unfavorable to used motor vehicle dealers. Alone, a single dealer has little chance of successfully combating legislation and rules that will be harmful to his/her business. Dealers who are united under the CIADA banner have a voice that is commanding and powerful. CIADA sends important news and information about the automobile industry to members through the CIADA Insider Magazine, the Used Car Dealer national magazine and email alerts. These publications will keep you informed on issues likely to affect your business. CIADA is recognized throughout Colorado as the official voice of the used car dealer. The association has an established record of accomplishment and fair dealing. Representatives of CIADA are welcomed and respected by officials of every regulatory agency that deals with the used car industry. CIADA proudly includes in its membership dealers of all sizes, from the smallest to the largest. Its strength is in the devotion of its individual members. So whether your business is large or small, you are urged to join the progressive association, an association dedicated to serving you, the Independent Used Car Dealer. CIADA provides an up-to-date and user friendly website packed with information ranging from Business Partners to requirements for obtaining a dealer license and an online store for all your form and business needs. CIADA has numerous educational opportunities including a weekly State approved Pre-Licensing class and regularly scheduled Title and Compliance seminars.

CIADA REINTRODUCES “VIP CARD” - Join now and receive more than $600 worth of special discounts and reduced fees..

CIADA members have free access to NIADA.tv for additional business training and information.

CIADA is always looking for programs and services that are beneficial to the Independent Dealer.

Membership dues are $225 for 12 months from the date you join and your National IIADA dues are included. Call CIADA 303-239-8000 with questions.

www.CIADA.org

RICH TRADITION

71 Years of Helping Independent Dealers Succeed !

Colorado Independent Automobile Dealers Association

Get Both CIADA and NIADA Memberships for only $225 :ŽŝŶ�EŽǁ��ŶĚ�ZĞĐĞŝǀĞ��ůů�KĨ�dŚĞ�&ŽůůŽǁŝŶŐ��ĞŶĞĮƚƐ�WůƵƐ�DĂŶǇ�DŽƌĞ͘�͘�͘

Dealers across the country complain about WKH�GLI¿FXOW\�RI�¿QGLQJ�HQRXJK�RI�WKH�³ULJKW´�cars at auctions.

The complaint is completely understandable. The recession slowed the pace of new vehicle sales, leases and trade-ins, which has diminished used vehicle supplies at auctions.

In addition, vehicle owners are holding onto their cars longer – industry statistics say the average age of a vehicle on the road now is 11 years – another crimp in the auction vehicle pipeline.

On top of that, there are more dealers buying vehicles at auctions. The lanes are more crowded and there’s greater competition from online buyers for independent and franchise dealerships.

All that means one thing: Dealers who want to maintain, if not grow, their used vehicle sales YROXPH�DQG�SUR¿WDELOLW\�PXVW�WDNH�WKHLU�HIIRUWV�WR�DFTXLUH�YHKLFOHV�DW�DXFWLRQV�WR�WKH�QH[W�OHYHO��7KDW�PHDQV�H[SDQGLQJ�WKH�QXPEHU�RI�

auctions you rely on to source inventory. Simply put, you need to cast a wider net and review more cars to ensure you and your buyers don’t come home from auctions

empty-handed, or, worse yet, bring a bunch of second-rate cars back to your dealership.

I’ve come across three best practices from independent and franchised dealers who have met the current used vehicle sourcing challenge with an effective and fresh perspective.

Go beyond “tried and true” auctions: Dealers say relying on one or two local auctions isn’t enough in today’s era of tight used vehicle supply. Many dealers have doubled or tripled the number of wholesale auctions they use to acquire used vehicles. 7KHLU�QHZ�VRXUFLQJ�IRRWSULQW�RIWHQ�H[WHQGV�across several state lines.7KDW�FDQ�EH�D�GLI¿FXOW�FKDQJH�IRU�VRPH�

dealers/buyers. It means traveling farther and going beyond the familiar. It also adds greater SUHVVXUH�WR�DFTXLUH�WKH�FDUV�IRU�WKH�³ULJKW´�money because of the additional costs for transportation and related fees.

The good news: Every dealer faces the same challenge, which means those who are DEOH�WR�H[SDQG�WKHLU�VRXUFLQJ�HIIRUWV�LQ�WKH�PRVW�WLPH��DQG�FRVW�HI¿FLHQW�PDQQHU�KDYH�DQ�edge over their competitors.

Get online: A growing number of dealers are sourcing a portion of their auction vehicles using online platforms from auction providers. 7KDW�DOORZV�WKHP�WR�H[SDQG�WKHLU�DFFHVV�WR�a larger number of vehicles in a more time-HI¿FLHQW�PDQQHU�

Still, there are many dealers who prefer physical auctions, and some who refuse to buy online at all.

The resistance comes from a belief that GHDOHUV�QHHG�WR�³VHH��WRXFK�DQG�VPHOO´�WKH�FDUV�they might purchase. Many of those dealers are concerned that a vehicle purchased online will show up at the dealership with an unpleasant VXUSULVH�WKDW�ZDVQ¶W�LGHQWL¿HG�LQ�D�FRQGLWLRQ�report or other disclosure.

I faced the same challenge when I was a dealer. At my store, we bit the bullet and went online to properly feed our inventory needs. We recognized there wasn’t any other way to get the cars, sales volumes and inventory turns we H[SHFWHG��

To be sure, we had a few surprises when the vehicles arrived at our dealership. But when that occurred and we initiated auction arbitration SURFHVVHV��ZH�ZHUH�UDUHO\��LI�HYHU��GLVVDWLV¿HG�with the resolution.

As the old saying goes, the squeaky wheel gets the grease.

A related tip: To help mitigate the risk of VXUSULVHV��ZH�ZRXOG�OLPLW�RXU�OLYH�DQG�SUR[\�ELGV�to vehicles with auction- or dealer-generated condition reports (with a score of 3 or better) to better size up each car’s potential risks.

Speed up your vehicle research and reviews: $W�P\�GHDOHUVKLS��LW�WRRN�¿YH�WR�VL[�hours, twice a week, to review auction run lists DQG�UHVHDUFK�WKH�FDUV�WKDW�¿W�RXU�LQYHQWRU\�acquisition parameters. On a per-car basis, we averaged 10 minutes to access condition reports and valuation guides and determine our bidding strategy.

Over time, we were able to reduce that to about one minute per vehicle, thanks to technology and tools that helped us streamline our research process to determine if a car was worthy of our attention. Likewise, the tools KHOSHG�XV�EHFRPH�IDVWHU�DQG�PRUH�HI¿FLHQW�when we acquired vehicles through online auctions. 7KH�NH\��RI�FRXUVH��LV�WR�¿QG�ZD\V�WR�LQFUHDVH�

\RXU�HI¿FLHQF\�ZLWKRXW�VKRUW�FXWWLQJ�WKH�DPRXQW�of research you conduct to avoid surprises when auction-purchased cars arrive at your dealership.

Taken together, these three best practices will go a long way toward helping you acquire all the cars you need from auctions and doing so in D�PRUH�HI¿FLHQW��OHVV�IUXVWUDWLQJ�PDQQHU��

BY TODD KINZLE CO-FOUNDER AND OPERATIONS DIRECTOR OF AUCTION GENIUS (WWW.AUCTIONGENIUS.COM) AND A FORMER INDEPENDENT DEALER IN LONGMONT, COLO.

Expand Your Auction OptionsD E A L E R S N E E D T O CA S T A W I D E R N E T A N D T O E N S U R E T H E Y D O N ’ T C O M E H O M E F RO M AU C T I O N S E M P T Y- H A N D E D

CO_0113.indd 18 12/19/12 5:07 PM

CO_0113.indd 19 12/19/12 5:07 PM

C I A D A I N S I D E R JANUARY/FEBRUARY 2013 w w w . c i a d a . o r g

20

2013: What’s In StoreD E A L E R S H AV E S E E N T H E E R RO R O F T H E I R PA S T WAYS A N D A R E E N J OY I N G T H E S P O I L S O F T H E I R M O R E D I S C I P L I N E D L A B O R

:KDW¶V�LQ�VWRUH�IRU�\RXU�VWRUH�LQ��",I�LW¶V�DQ\WKLQJ�OLNH��LW�VKRXOG�EH�

DQRWKHU�JRRG�\HDU�WR�EH�LQ�WKH�%X\�+HUH�3D\�+HUH�LQGXVWU\��7KH�QHZ�\HDU�ZLOO�QRW�EH�ZLWKRXW�LWV�FKDOOHQJHV��WKRXJK��,Q�IDFW��there are certain areas of the industry that FRXOG�EH�PRUH�FKDOOHQJLQJ�WKDQ�HYHU�7R�JHW�DQ�LGHD�RI�ZKDW�WR�ORRN�IRUZDUG�WR�

LQ��ZH�¿UVW�QHHG�WR�UHYLHZ�KRZ��WUHDWHG�WKH�%+3+�ZRUOG��7D[�VHDVRQ�ZDV�again sporadic at best, which pretty much set the tone for all facets of the business for WKH�UHVW�RI�WKH�\HDU�)URP�D�SUR¿WDELOLW\�VWDQGSRLQW��WKH�

dealers I have the distinct privilege of ZRUNLQJ�ZLWK�HQMR\HG�DQRWKHU�PRGHVW��SHUFHQW�LQFUHDVH�LQ�SUR¿WDELOLW\�LQ��YHUVXV��7KDW�LQFUHDVH�ZDV�VPDOOHU�WKDQ�WKH�SUHYLRXV�\HDU�RYHU�\HDU��DQG�ZDV�due mostly to the continued focus on the ³ULJKWVL]LQJ´�RI�RYHUDOO�RSHUDWLRQV�'HDOHUV�IRFXVHG�RQ�WKHLU�HQWLUH�

operations, from top to bottom, on FRQWLQXLQJ�QRW�RQO\�WR�³FXW�WKH�IDW´�EXW�WR�NHHS�LW�RII�DQG�UXQ�WKHLU�RSHUDWLRQV�EDVHG�on the cash being generated instead of UHO\LQJ�RQ�OLQHV�RI�FUHGLW�,�H[SHFW�WKDW�IRFXV�WR�FRQWLQXH�LQ��

Though funding sources have become more readily available, overall most dealers will be focusing again on generating the capital necessary to run their businesses from their EXVLQHVVHV�$V�DOZD\V��WKHUH�ZLOO�EH�GHDOHUV�ORRNLQJ�

to grow aggressively through borrowing, DQG�UDWHV�ZLOO�FRQWLQXH�WR�PDNH�WKDW�D�YHU\�YLDEOH�RSWLRQ��,�GRQ¶W�VHH�UDWHV�ULVLQJ�drastically in the coming year, so it will still EH�D�JRRG�WLPH�WR�ERUURZ�

Having said that, I still see it being GLI¿FXOW�WR�VHFXUH�QHZ�OLQHV�RI�FUHGLW�LQ��,W¶V�JRLQJ�WR�WDNH�VRPH�SDWLHQFH�DQG�the willingness to educate some institutions RQ�RXU�LQGXVWU\�$QRWKHU�¿QDQFLQJ�RSWLRQ�WKDW�KDV�

received quite a bit of interest recently LV�VHOOLQJ�EORFNV�RI�SRUWIROLRV�RU�SD\PHQW�VWUHDPV�WR�JHQHUDWH�FDSLWDO�WR�RSHUDWH�ZLWK��

The available resources for that are at an DOO�WLPH�KLJK�DQG�UDWHV�VHHP�DWWUDFWLYH�DV�ZHOO��'HSHQGLQJ�RQ�WKH�UHVRXUFH��LW�FDQ�EH�done either at point of sale or on seasoned UHFHLYDEOHV�

Rates will depend on the resource, aging, recourse aspects, performance and VHFXULWL]DWLRQ��7KH�NH\�WR�WKLV�RSWLRQ�LV�UHLQYHVWLQJ�WKH�FDSLWDO�UHFHLYHG�EDFN�LQWR�receivables in a timely fashion so as not to DIIHFW�IXWXUH�FDVK�ÀRZ�OHYHOV�6DOHV�YROXPH�IRU�RXU�GHDOHU�FOLHQWV�

LQFUHDVHG�E\�D�PRGHVW��SHUFHQW�LQ��RYHU��1RW�D�UHFRUG�VHWWLQJ�\HDU�E\�DQ\�PHDQV��EXW�D�VSRUDGLF�WD[�VHDVRQ�DQG�the resurgence of subprime and special ¿QDQFH�DUH�WKH�WZR�GRPLQDQW�IDFWRUV�OHDGLQJ�WR�LW��'HDOHUV�VHHPHG�WR�ZDQW�WR�VHOO�ZKDW�WKHLU�FDVK�ÀRZ�DQG�XQGHUZULWLQJ�standards dictated rather than sell as PXFK�DV�SRVVLEOH�:H�DOO�NQRZ�ZH�FDQ�VHOO�DV�PDQ\�DV�ZH�

ZDQW�RU�KDYH�WKH�¿QDQFLDO�UHVRXUFHV�WR�LQ�WKLV�LQGXVWU\��7KHUH�GRHVQ¶W�VHHP�WR�EH�D�ODFN�RI�FXVWRPHUV�QHHGLQJ�RU�ZDQWLQJ�ZKDW�ZH�KDYH�WR�RIIHU��

We will see those factors continue WR�KROG�IRU��:H�VKRXOG�KDYH�WKH�FXVWRPHUV�LQ�WKH�PDUNHW�WR�VHOO�WKH�YHKLFOHV�ZH�ZDQW�RU�QHHG��7KH�ELJJHVW�question will be the quality of those customers and the availability of LQYHQWRU\�1RZ��,¶P�QRUPDOO\�D�JODVV�KDOI�IXOO�

NLQG�RI�JX\��EXW�ZKHQ�LW�FRPHV�WR�WKLV��,�WKLQN�WKH�JODVV�PLJKW�VWLOO�EH�KDOI�HPSW\��Even though the prices somewhat leveled off during the last half of last year, the numbers still seem to be dwindling for WKDW�VXE��YHKLFOH��7KH��SRUWIROLR�SHUIRUPDQFH�

included some stabilization from a dollar loss standpoint, but from a number loss standpoint, there was a slight increase or ZRUVHQLQJ�IURP��

That was driven by a couple of factors, WKH�¿UVW�EHLQJ�WKH�QHHG�IRU�LQYHQWRU\��6RPH�GHDOHUV�DFFHOHUDWHG�WKHLU�UHSR�WLPHV�

ZKHQ�D�GHVLUDEOH�XQLW�ZDV�LQYROYHG��7KDW�also helped stabilize the dollar losses, as the vehicles were repossessed earlier and in better condition and thus earned larger UHFRYHU\�DPRXQWV�

The other factor was renewed focus on underwriting and the overall collection SURFHVV��'HDOHUV�UHPDLQHG�PRUH�GLVFLSOLQHG�LQ�ERWK�DUHDV��VHHNLQJ�TXDOLW\�RYHU�TXDQWLW\�)RU��,�VHH�PRUH�RI�WKH�VDPH��

'HDOHUV�KDYH�VHHQ�WKH�HUURU�RI�WKHLU�SDVW�ZD\V�DQG�DUH�HQMR\LQJ�WKH�VSRLOV�RI�WKHLU�PRUH�GLVFLSOLQHG�ODERU��([SHFW�WKH�DYHUDJH�FKDUJH�RII�WR�UHPDLQ�HVVHQWLDOO\�WKH�VDPH�and the number as a percentage of sold to UHPDLQ�KLJKHU�WKDQ�LQ�SDVW�\HDUV��EXW�H[SHFW�collections dollars to improve as well as RYHUDOO�FROOHFWLRQ�HIIHFWLYHQHVV�

The biggest thing to affect our industry DJDLQ�LQ��ZLOO�QR�GRXEW�FRPH�LQ�FRPSOLDQFH��7KH�&RQVXPHU�)LQDQFLDO�3URWHFWLRQ�%XUHDX�ZDV�YHU\�DFWLYH�LQ��It has reached out to a few dealers on a QXPEHU�RI�DXGLWLQJ�IURQWV��$OWKRXJK�QR�new formal regulations have been drafted, LW�LV�WUXO\�RQO\�D�PDWWHU�RI�WLPH�

We did dodge a fairly substantial bullet ZLWK�WKH�OHJLVODWLRQ�WKDW�ZDV�SDVVHG�±�DQG�more important, the bill that was vetoed LQ�&DOLIRUQLD��:KLOH�LW�ZRXOG�RQO\�KDYH�affected California, passing tight new UHJXODWLRQV�HDVLO\�FRXOG�KDYH�LQÀXHQFHG�RWKHU�VWDWH¶V�OHJLVODWRUV�

Here is the best advice I can give to H[LVWLQJ�GHDOHUV�DV�ZHOO�DV�WKRVH�ZDQWLQJ�WR�JHW�LQWR�WKH�EXVLQHVV�LQ�WKH�FRPLQJ�\HDU��GRQ¶W�ZDLW��'RQ¶W�ZDLW�WR�JHW�FRPSOLDQW��'RQ¶W�ZDLW�WR�VSHQG�D�OLWWOH�PRQH\�WR�GR�VR��'RQ¶W�ZDLW�WR�UHYLHZ�DOO�SURFHVVHV�DQG�SURFHGXUHV��'RQ¶W�ZDLW�WR�UHYLHZ�DOO�H[SHQVHV��'RQ¶W�ZDLW�WR�UHYLHZ�DOO�RI�\RXU�HPSOR\HHV��'RQ¶W�ZDLW�WR�WUDLQ�$QG�GH¿QLWHO\�GRQ¶W�ZDLW�WR�VHOO�FDUV��

FROOHFW�PRQH\�DQG�PDNH�PRQH\��

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES [email protected]

CO_0113.indd 20 12/19/12 5:07 PM

D E A L E R S H AV E S E E N T H E E R RO R O F T H E I R PA S T WAYS A N D A R E E N J OY I N G T H E S P O I L S O F T H E I R M O R E D I S C I P L I N E D L A B O R

CO_0113.indd 21 12/19/12 5:07 PM


22


22

BY CHIP ZYVOLOSKICHIP ZYVOLOSKI IS A SENIOR ATTORNEY FOR INDIRECT LENDING AT WOLTERS KLUWER FINANCIAL SERVICES. FOR MORE INFORMATION, VISIT WWW.WOLTERSKLUWERFS.COM/INDIRECT.

There’s no question that what a dealer says to a customer as part of the sales SURFHVV�PDWWHUV�%XW�LW¶V�QRW�MXVW�DERXW�ZKDW�LV�VDLG�E\�WKH�

F&I department and what’s documented RQ�D�VDOHV�FRQWUDFW�WR�¿QDOL]H�D�GHDO��,W¶V�also about what is being communicated RXWVLGH��RQ�WKH�FDU�ORW�

No matter how accurate and compliant \RXU�¿QDQFH�GRFXPHQWDWLRQ�LV��LI�LW�disconnects from promises made during the sales process, you could be facing a SUREOHP�

Though the law is different in every state, most have passed some version of the model Uniform Commercial Code �8&&��,W�SURYLGHV�WKDW�DQ�H[SUHVV�warranty is created by the seller when it PDNHV�D�VWDWHPHQW�RI�IDFW�RU�SURPLVH�WR�WKH�buyer relating to the goods, which becomes SDUW�RI�WKH�EDVLV�RI�WKH�EDUJDLQ�

The elements are pretty broad and cover a wide range of common statements a VDOHVSHUVRQ�PLJKW�PDNH�ZKHQ�GLVFXVVLQJ�D�YHKLFOH�ZLWK�D�SRWHQWLDO�EX\HU��)RU�H[DPSOH��if a salesperson says to a potential buyer, ³7KLV�FDU�FRPHV�ZLWK�D�QHZ�VSDUH�WLUH�´�DV�part of the sales discussion, the promise is SUREDEO\�DQ�H[SUHVV�ZDUUDQW\�:KDW�KDSSHQV�LI�WKH�FXVWRPHU�SLFNV�

up his or her car after the sales contract is VLJQHG�DQG�D�XVHG�VSDUH�WLUH�LV�LQ�WKH�WUXQN"&RQWUDU\�WR�ZKDW�VRPH�PLJKW�WKLQN��

H[SUHVV�ZDUUDQWLHV�JHQHUDOO\�FDQ¶W�EH�ZDLYHG�RU�GLVFODLPHG��8&&��SURYLGHV�WKDW�ZRUGV�RU�FRQGXFW�FUHDWLQJ�DQ�H[SUHVV�warranty and words or conduct disclaiming or limiting the warranty must be interpreted LQ�D�ZD\�WKDW�PDNHV�WKHP�FRQVLVWHQW�ZLWK�HDFK�RWKHU��,I�WKDW¶V�QRW�SRVVLEOH��WKHQ�the disclaimers or limitations will not be HQIRUFHG�

In short, you can’t give with one hand and WDNH�DZD\�ZLWK�WKH�RWKHU��,I�D�VDOHVSHUVRQ�promises the car comes with a new spare tire and a used one is delivered, a written ZDUUDQW\�GLVFODLPHU�ZLOO�QRW�KHOS�1RWH�WKDW�WKH�H[SUHVV�ZDUUDQW\�GRHVQ¶W�

have to be in writing and it doesn’t require XVLQJ�WKH�ZRUG�³ZDUUDQW\�´�$V�D�UHVXOW��ZKDW�

the salesperson says can affect a transaction MXVW�DV�PXFK�DV�WKH�GRFXPHQWV�SURGXFHG�E\�WKH�),�GHSDUWPHQW�7KDW¶V�ZK\�LW¶V�LPSRUWDQW�WR�NQRZ�ZKDW�

your sales team is communicating and, PRUH�LPSRUWDQW��SURPLVLQJ�WR�FXVWRPHUV�6RPHWLPHV�WKH�VLWXDWLRQ�LQYROYHV�D�

VLPSOH�PLVWDNH�RQ�WKH�VDOHV�ORW��$�FDU�FRXOG�EH�SUHVHQWHG�DV�D�VL[�F\OLQGHU�ZKHQ�LW¶V�DFWXDOO\�DQ�HLJKW�F\OLQGHU��2U�PD\EH�the customer is told the car had two prior RZQHUV�EXW�WKHUH�ZHUH�UHDOO\�WKUHH��$Q�XQLQIRUPHG�RU�PLVWDNHQ�VDOHVSHUVRQ�PLJKW�also tell a customer the car has never been in an accident when in fact he or she doesn’t UHDOO\�NQRZ�LI�LW�KDV�RU�QRW��7KH�QHZ�VSDUH�WLUH�H[DPSOH�PD\�VRXQG�

farfetched, but a dispute about whether QHZ�RU�XVHG�WLUHV�ZHUH�GHOLYHUHG�ZDV�MXVW�one of numerous inconsistencies between promises and documentation by the seller and what was delivered to the buyer in the &DOLIRUQLD�FDVH�RI�6DQFKH]�Y��9DOHQFLD��&DO��$SS��WK��7KH�FDVH�LV�NQRZQ�for its decision on arbitration clauses and ZDVQ¶W�DERXW�ZDUUDQWLHV��6WLOO��LW�LV�D�JRRG�H[DPSOH�RI�KRZ�GLVFXVVLRQV�RQ�WKH�ORW�FDQ�KDYH�D�ELJ�HIIHFW�RQ�WKH�GHDOHU¶V�OLDELOLW\�7KRVH�NLQGV�RI�H[SUHVV�ZDUUDQW\�

FUHDWLQJ�PLVWDNHV�FDQ�EH�DYRLGHG�by simply being careful about representations about vehicle features DQG�IDFWV��:KLOH�VHUYLFHV�OLNH�&$5)$;�DQG�FHUWDLQ�

branding of vehicle titles can help prevent VRPH�RI�WKRVH�PLVWDNHV��RU�DW�OHDVW�EULQJ�them to light before an agreement is ¿QDOL]HG��GHDOHUV�DUH�VWLOO�IDFLQJ�VLWXDWLRQV�in which customers are unhappy because DQ�H[SHFWDWLRQ�WKDW�SOD\HG�D�NH\�IDFWRU�LQ�WKHLU�GHFLVLRQ�WR�EX\�KDV�QRW�EHHQ�PHW�6R�ZKDW�FDQ�\RX�GR�WR�KHOS�SUHYHQW�WKLV�

from happening?Tell your sales staff that what they

say matters and why: A salesperson LV�D�OLDELOLW\�ULVN�LI�KH�RU�VKH�WKLQNV�DOO�promises are wiped out by a disclaimer in WKH�VDOHV�FRQWUDFW�

Train your staff on proper sales techniques: That includes arming them

with facts about the inventory available IRU�VDOH�

Encourage potential buyers to take a test drive: Also encourage WKHP�WR�WDNH�WKH�YHKLFOH�WR�D�PHFKDQLF�or get a vehicle history report and other information about the car so they have WKH�EHVW�RSSRUWXQLW\�WR�NQRZ�WKH�IHDWXUHV��functionality and condition of the vehicle ZLWKRXW�UHO\LQJ�RQ�LQIRUPDWLRQ�IURP�\RX��6RPH�GHDOHUVKLSV�KDYH�LQVWDOOHG�,QWHUQHW�NLRVNV�IRU�FXVWRPHUV�WR�FRQGXFW�RQ�WKH�VSRW�UHVHDUFK��7KLV�LV�D�FRPSOH[�DUHD�RI�ODZ��OLWWHUHG�ZLWK�

H[FHSWLRQV�DQG�UHSOHWH�ZLWK�FRXUW�GHFLVLRQV�WKDW�DUH�YHU\�IDFW�VSHFL¿F�DQG�¿QGLQJV�WKDW�DUH�QRW�DOZD\V�FRQVLVWHQW��)RU�H[DPSOH��LQ�some situations, disclaimers or waivers can be enforced if the sales contract includes a SURYLVLRQ�VD\LQJ�LW�LV�WKH�DOO�LQFOXVLYH�DQG�H[FOXVLYH�DJUHHPHQW�FRYHULQJ�WKH�VDOH�

Whether a given statement is a statement RI�IDFW�RU�SURPLVH��FUHDWLQJ�DQ�H[SUHVV�warranty) or merely sales puffery (not an H[SUHVV�ZDUUDQW\��LV�UHJXODUO\�OLWLJDWHG��0DQ\�FDVH�GHFLVLRQV�H[LVW�DQG�HQWLUH�ERRNV�KDYH�EHHQ�ZULWWHQ�RQ�WKH�VXEMHFW��7KH�NH\�SRLQW�LV�WKDW�ZKDW�\RXU�VDOHV�

WHDP�VD\V�RQ�WKH�ORW�LV�LPSRUWDQW��,I�WKHUH�LV�FRQÀLFW�EHWZHHQ�ZKDW�ZDV�SURPLVHG�during the sale and what was delivered, the GHDOHU�KDV�D�SUREOHP��7KH�SUREOHP�FRXOG�EH�FKDUDFWHUL]HG�DV�WKH�EUHDFK�RI�DQ�H[SUHVV�warranty, but it could also be a fraudulent misrepresentation, unfair or deceptive act, HWF��±�NHHS�LQ�PLQG�WKDW��FDXVHV�RI�DFWLRQ�ZHUH�DOOHJHG�LQ�WKH�6DQFKH]�FDVH�EDVHG�RQ�WKH�WLUHV�DQG�RWKHU�LQFRQVLVWHQFLHV�

Creating consistency throughout the HQWLUH�VDOHV�SURFHVV�DQG�PDNLQJ�VXUH�the lines of communication between the sales staff and F&I team are open can KHOS�PLWLJDWH�ULVN�IRU�\RXU�GHDOHUVKLS��ultimately saving time DQG�PRQH\��

C O M P L I A N C E OV E R D R I V E

Unintended Express Warranties: What Sales Staff Says Matters

CO_0113.indd 22 12/19/12 5:07 PM

CO_0113.indd 23 12/19/12 5:07 PM

CO_0113.indd 24 12/19/12 5:07 PM

Documents

CIADA Insider Jan/Feb 13