CIADA July/August 2012

CurbstoningWhat’s Being Done?page 14

FORMULA FOR SUMMER SELLING MARKETING POTHOLES TO AVOID COMPLIANCE OVERDRIVE

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JULY/AUGUST 2012

JULY/AUGUST 2012

CIADA INSIDERC 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 N

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

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JULY/AUGUST 2012 T H E D E A L E R ’ S E D G E

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w w w . i l - i a d a . o r g

Person to Contact:Dail Hughes, ID#02-37367Tax Law SpecialistTelephone Numbers:1(866)270-0733 option# 3 or(313)2346146Refer Reply to:SE: S:/FBSA:PO:DCC: CTRSG120487Date: April 5, 2012

Dear Sir or Madam,The Financial Crimes Enforcement Network

(FinCEN), via the Internal Revenue Service Enterprise Computing Center-Detroit (ECC-D), has received the Form(s) 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, dated February 27, 2012. We are unable to process the Form(s) 8300 because you did not submit the correct form version. FinCEN updates

Bank Secrecy Act forms approximately HYHU\�WKUHH�\HDUV�DQG�¿QDQFLDO�LQVWLWXWLRQV�must submit the most current version of a form. Please resubmit the form(s) as soon as possible and no later than 10 business days upon receipt of this letter. Failure to properly ¿OH�D�%6$�IRUP�PD\�UHVXOW�LQ�¿QHV�RU�RWKHU�penalties.

If you need to resubmit this form(s) on paper, please visit FinCEN’s website to obtain and download the most current version of WKH�IRUP��KWWS��ZZZ�¿QFHQ�JRY�IRUPV�bsaforms/. Make sure that you mail the IRUP�V��WR�WKH�DGGUHVV�LGHQWL¿HG�LQ�WKH�³:KHQ�and Where to File” section of the particular form. Do not mail the form(s) to the address at the top of this letter.

If you have any questions about this letter, please contact Dail Hughes @ 1 (866) 270-0733 option #3.

Thank you for your assistance.

DEPARTMENT OF THE TREASURYIRS ENTERPRISE COMPUTING CENTERP.O. BOX 33116DETROIT, MI 48232-0116

IRS Form 8300 Rev. Nov. 2011

ChairmanRandy CraseCrase Auto Connection25355 E. Ames St.Channahon, IL [email protected]

PresidentGordon TormohlenTormohlen’s Good People Automotive1800 S. Ihm Blvd.Freeport, IL [email protected]

1st Vice PresidentAnthony FerraroPayless Motorsport13449 S. Pulaski RoadRobbins, IL 60472708-388-2300 [email protected]

TreasurerLori Chignoli-CoraChignoli Auto Sales1850 Essington RoadJoliet, IL [email protected]

SecretaryEric NelsonNelson Automotive Inc.1801 S. BusseMt Prospect, IL [email protected]

Directors:Mark AlcornCarlyle Auto Sales1708 BroadwayRockford, IL [email protected]

Paul GluchowskiTurner Acceptance4454 N. Western Ave.Chicago, IL [email protected]

Melanie BrownChicago Car Auction2731 Belvidere RoadWaukegan, IL [email protected]

Amy Goodnight Lohman Companies 3901 15th St.Moline, IL [email protected]

Alex TovstanovskyPrestige Motor Works Inc.8959 Hanslik CourtNaperville, IL [email protected]

Janette PeakPJP Auto Enterprise3100 S. Douglas Spring!eld, IL [email protected]

For information on how to become a member of IIADA, please contact Bruce Eklund at 800-987-6627 or [email protected].

Board of Directors

JULY 10 at the Manheim Arena Auto Auction BHPH ROUNDTABLE

AUG. 14 at the Greater Rockford Auto Auction BHPH ROUNDTABLE

SEPT. 12 at the Morton Auto Auction IS RENTAL FOR YOU?

OCT. 16 at the Manheim Arena Auto Auction DEALER MANAGEMENT SYSTEMS

You Have a Date 2012 Educational and Training Opportunities for IIADAThe educational training is hosted by the Illinois Independent Automobile Dealers Association (IIADA) and includes expert trainers in each !eld, with an opportunity to become a Certi!ed Master Dealer.

NOV. 15 at the St. Louis Auto Auction COMPLIANCE ISSUES

DEC. 10 in Oak Park at the Training CenterREVIEW OF ALL TRAINING

FOR INFORMATION, VISIT WWW.IL-IADA.ORG.We have created an education and training program with a mission to promote, educate and advance the independent dealer. We will make available a core of quality education and training opportunities that responds to current dealership needs.

WHAT’S NEW

MAGAZINE CONTENTS

ADVERTISERS INDEX

04 Formula for Summer Selling06 Go All In on Service10 What Customers Really Want12 Avoid Marketing Potholes14 Curbstoning: What’s Being Done20 Mobile Ads a Must for Dealers22 Compliance Overdrive

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION

NIADA HEADQUARTERS:

FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF

The Dealer’s Edge is published bi-monthly 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 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of The Dealer’s Edge, the Illinois Independent Automobile Dealers Association, or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identi!cation as members of IIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright © 2012 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com. STATE MAGAZINE MGR./SALES EDITOR ART/PRODUCTION MGR. PRINTING Nieman Printing

OFFICEFOR INFORMATION ON HOW TO BECOME A MEMBER OF IIADA, PLEASE CONTACT BRUCE EKLUND

AFC ......................................................Inside Front CoverAlly ......................................................................7AutoTrader.com .....................................Back CoverDyer Auto Auction ..............................................18Insurance Auto Auctions ....................................19Kelley Blue Book ...............................................13Lohman Companies ....................Inside Back CoverManheim.com ......................................................9Manheim Minneapolis ..........................................5 Nowcom ............................................................11Protective ..........................................................15United Acceptance .............................................17Voisys ................................................................22

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Sirius XM Satellite Radio is America’s satellite radio company. Independent dealerships can now offer a free SiriusXM three-month trial on all pre-owned vehicles with factory-equipped satellite radio. In addition to selling your customers a quality vehicle, you’ll be giving them the opportunity to enjoy satellite radio. And there’s no cost to your customer. Visit www.siriusxm.com/niadaprogram to enroll your dealership today!

NIADA Member Health Plans, administered by JLBG Health, bring you choice and "exibility when designing your personal health plan while providing potential savings of thousands of dollars annually. To review the plan details and receive an instant online rate, visit www.NIADAHealthPlans.com or call 1-888-308-9340.

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C I A D A I N S I D E R JULY/AUGUST 2012

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Formula for Selling in the Dog Days of SummerThe dog days of summer are here.

The time to make hay while the sun was

shining has come and gone.

The typical Buy Here-Pay Here

dealer will sell 40-45 percent of his

DQQXDO�XQLWV�LQ�WKH�¿UVW�WKUHH�PRQWKV�of the year. He will also realize about

the same percentage of his annual

SUR¿W�LQ�WKRVH�WKUHH�PRQWKV�So if you got off to a slow start in

2012, the dog days of summer could

be the only way to salvage your year.

Because we all know the last three

months are not time to try to make

your year.

Being able to sell in the dog days is

really no different than selling in the

heydays. The same four key ingredients

to selling are the same. The only

difference is the focus has to be there.

In the heydays, selling is pretty easy.

Customers have money. You have

inventory. All is right with the world.

But come the dog days, customers have

less money. And they seem to be harder

WR�¿QG��7KH�¿UVW��DQG�PRVW�LPSRUWDQW��RI�WKH�

key ingredients to selling in the dog days

is training. Well-trained salespeople can

sell any time of year. You should always

be training your staff, always honing

their skills. Both phone training and

basic sales skills training should be done

weekly, at a minimum.

Work with staff on overcoming

objections – role-playing is a good way

to accomplish that. When it comes to

phone training, work on how to set

HIIHFWLYH�DSSRLQWPHQWV��/RW�WUDI¿F�LV�at a premium during the dog days, so

your people had better know how to

effectively handle it.

The second ingredient is appearance.

Now, I’m not necessarily talking about

your employees’ appearance, which

should always be neat and professional,

but your overall lot appearance. The

No. 1 reason customers list as the

reason they come in is “drive by.” So if

that is the case, why wouldn’t you want

your lot to look the best in town?

The lot should always be neat and

orderly, not with vehicles facing all

four directions of the compass and

then some. Vehicles should be spaced

evenly, with a good mix of colors and

styles.

A lot party or lot rodeo should

be done at least once a week, if not

more. It will really go a long way

to making your lot look fresh. You

should consider the vehicles on your

lot your mannequins and treat them

WKH�ZD\�¿QH�GHSDUWPHQW�VWRUHV�WUHDW�theirs. Keep them fresh, neat, clean

and always ready to sell. That goes for

overall lot appearance as well. A fresh

coat of paint and some weed killer can

do wonders.

Marketing is the next key ingredient.

$JDLQ��ZLWK�WUDI¿F�EHLQJ�DW�D�SUHPLXP��this is the time when repeat and

referral programs really pay dividends.

It’s a good time of year to focus on

referrals, not just with your customer

base but with outside companies and

people as well. If you are not already

paying referrals to non-customers,

it’s something you should seriously

consider. I can assure you some, if not

all, of your competitors are.

Marketing also extends to your web

presence. Make sure your website is up

to date, especially if you are displaying

inventory. I was on a dealer client’s

website the other day and he had

pictures of some of his inventory with

snow on it.

In addition to the inventory, make

sure all other aspects of your site

are up to date. That includes any

advertised specials, about us sections

and employee introduction sections.

You wouldn’t want someone calling

or coming in asking for someone or

something that is no longer there.

The last key ingredient in the dog

days selling formula is advertising.

In this very competitive industry,

advertising in some form or fashion is

almost a must. The thing that makes

advertising effective is reaching the

right folks with the right message.

The two most popular media are, of

course, television and radio. There is

a thought people watch less television

and listen to more radio in the summer,

but that is just not the case. Studies

have shown television viewing doesn’t

drop off at all during the summer, and

the same goes for radio listening.

The important thing to remember

about advertising on both those

media is to remember you are not

your customer, so don’t advertise to

yourself. Chances are your customers

watch different television stations

and listen to different radio stations

than you do, so make sure the

stations you are on are the ones your

customers are watching and listening

to. Customer surveys from new and

existing customers are the best way to

gauge their entertainment preferences.

Simply put, just ask.

As with marketing, your web

presence is also a way to advertise.

The use of your website, as well as

Facebook and even Twitter can be ways

to get your message out. I wouldn’t

necessarily count on those selling

more cars, but they are perfect ways to

advertise new inventory or special sales

promotions.

The formula for selling in the dog

days is the same as selling in the

heydays. It just takes a little more

attention to detail. There are usually

fewer opportunities in the dog days,

so capitalizing on them is much more

important.

Remember, the two most important

ingredients in the formula are the two

most inexpensive. Hopefully, you have

the right mix of all the ingredients to

keep the dogs at bay.

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES [email protected]

B E I N G A B L E T O S E L L I N T H E D O G DAYS I S R E A L LY N O D I F F E R E N T T H A N S E L L I N G I N T H E H E Y DAYS .

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

)RU�LQGHSHQGHQW�GHDOHUV��KDYLQJ�D�service department isn’t something WKDW�VKRXOG�EH�WDNHQ�OLJKWO\�1RW�DOO�GHDOHUVKLSV�RIIHU�VHUYLFH�±�LW�

LVQ¶W�IRU�HYHU\ERG\�±�EXW�IRU�WKRVH�that do it should be an integral part of the business, used to give the dealer an opportunity to attract, retain and EHWWHU�XQGHUVWDQG�FXVWRPHUV�

Joe Lescota, the NIADA’s new director of dealer development, said KH�NQRZV�PDQ\�GHDOHUV�ZKR�ORVH�money in the service department because the money that comes in WKURXJK�VHUYLFH�JRHV�LQWR�RQH�ELJ�SRW�³7KHUH¶V�D�ZKROH�SURFHVV�LQ�

RSHUDWLQJ�D�VHUYLFH�GHSDUWPHQW�´�said Lescota, the longtime instructor IRU�1,$'$¶V�&HUWL¿HG�0DVWHU�'HDOHU�SURJUDP��³'HDOHUV�WKLQN�WKH\�DUH�selling service when what they’re UHDOO\�GRLQJ�LV�VHOOLQJ�WLPH�³$�GHDOHUVKLS�RQO\�KDV�VR�PDQ\�

KRXUV�LQ�WKH�GD\�WR�RSHUDWH��6R�D�GHDOHU�VKRXOG�WDNH�WKH�QXPEHU�RI�WHFKV�KH�has and multiply that number by the QXPEHU�RI�KRXUV�LQ�RSHUDWLRQ��6R�D�GHDOHU�PLJKW�KDYH��KRXUV�D�GD\�RI�WLPH�WR�VHOO��)URP�D�SUR¿W�VWDQGSRLQW��it doesn’t matter if the dealer is FKDQJLQJ�RLO�RU�GURSSLQJ�DQ�HQJLQH�´'RXJ�DQG�1\OD�%RUJPDQQ��RZQHUV�

RI�&UHLJKWRQ�$XWR��,QF��LQ�&UHLJKWRQ��1HE��PDQDJH�WR�NHHS�WKHLU�PHFKDQLF�and their body man pretty busy, ZKLFK�LV�JRRG�IRU�WKHLU�EXVLQHVV�

That means doing repairs for HYHU\RQH��QRW�MXVW�FXVWRPHUV�³2IIHULQJ�VHUYLFH�ZRUNV�IRU�XV�´�

'RXJ�%RUJPDQQ�VDLG��³:H�DGYHUWLVH�RQ�RXU�VWRUH�VLJQ��6HUYLFH�DFFRXQWV�IRU�EHWZHHQ��DQG��SHUFHQW�RI�EXVLQHVV��2XU�PHFKDQLF�KDV�EHHQ�ZLWK�XV�VLQFH�WKH�HDUO\��V��+H¶OO�UHWLUH�LQ�IRXU�RU�¿YH�\HDUV�DQG�WKDW�KDV�PH�ZRUULHG��5HSODFLQJ�KLP�ZLOO�EH�KDUG��Our body man has been with us for DERXW�WKUHH�\HDUV��%HIRUH�JHWWLQJ�KLP��we had a hard time getting someone IXOO�WLPH�WR�GR�RXU�ERG\�ZRUN�´-�5��:HVWEURRN��RZQHU�RI�7\UR�

$XWR�6DOHV�LQ�%D\�&LW\��7H[DV��KDV�been offering service at his store VLQFH��+H�GRHV�RXWVLGH�ZRUN�LQ�DGGLWLRQ�WR�ZRUNLQJ�RQ�WKH�FDUV�RI�FXVWRPHUV��EXW�KH�GRHVQ¶W�DGYHUWLVH��+H�GHSHQGV�RQ�ZRUG�RI�PRXWK�:HVWEURRN�KDV�NHSW�KLV�WHFKQLFLDQ�

for years, operating on the theory that LW¶V�HDVLHU�WR�NHHS�WKH�SHUVRQ�\RX�KDYH�KDSS\�WKDQ�JR�RXW�DQG�¿QG�QHZ�SHRSOH�6WDII�LV�D�NH\�FRPSRQHQW�WR�RIIHULQJ�

D�JRRG�VHUYLFH�GHSDUWPHQW�Getting good help was one of

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His lot has been around for 66 years, and for much of that time, it RIIHUHG�VHUYLFH��(YHQWXDOO\��WKRXJK��LW�ZDVQ¶W�ZRUWK�WKH�WURXEOH�³:H�JRW�ULG�RI�RXU�ROG�VHUYLFH�FHQWHU��

PXVW�EH�DURXQG�QLQH�\HDUV�DJR�´�<DWHV�VDLG��³,W�ZDV�KDUG�JHWWLQJ�DQG�NHHSLQJ�JRRG�SHRSOH��,¶G�WUDLQ�SHRSOH�DQG�WKH\�ZRXOG�JHW�WKH�VNLOOV�WKH\�QHHGHG�WR�GR�WKH�MRE��%XW�WKHQ�WKH\¶G�JR�WR�

dealerships, often franchise operations, that would pay better wages and I’d KDYH�WR�VWDUW�WKH�SURFHVV�DOO�RYHU�DJDLQ�´<DWHV�VDLG�KH�UHDOL]HG�KH�ZDV�EHWWHU�

RII�LI�KH�VWXFN�WR�ZKDW�KH�GLG�EHVW�±�VHOO�FDUV��1RZ�KH�VHQGV�KLV�FDUV�WR�EH�¿[HG�E\�SHRSOH�ZKR�GR�ZKDW�WKH\�GR�EHVW�±�UHSDLU�DQG�UHFRQGLWLRQ�FDUV��%\�OHWWLQJ�WKH�ZRUN�JHW�GRQH�by specialists, he doesn’t have to bother with the hassle of hiring and training technicians, then replacing WKHP�DV�WKH\�OHDYH�KLV�EXVLQHVV�<DWHV�VDLG�KH�HQGHG�XS�VSHQGLQJ�D�ORW�

of time trying to drum up business for KLV�PHFKDQLFV�LQVWHDG�RI�VHOOLQJ�FDUV�³,I�WKH�PHFKDQLFV�DUHQ¶W�EXV\�DOO�WKH�

WLPH��WKHQ�WKH\�DUHQ¶W�PDNLQJ�DV�PXFK�PRQH\�DV�WKH\�FRXOG�EH�´�<DWHV�VDLG��³,W�¿QDOO\�FDPH�WR�WKH�SRLQW�ZKHUH�LW�EHFDPH�WRR�PXFK�ZRUN�IRU�PH�WR�¿QG�ZRUN�IRU�WKHP�DQG�IRU�P\VHOI��1RZ�,�have less headaches just selling the cars DQG�IDUPLQJ�DQ\�PHFKDQLFDO�ZRUN�RXW�´+H�DOVR�GLGQ¶W�KDYH�WR�NHHS�XS�ZLWK�

WKH�H[SHQVH�RI�JHWWLQJ�QHZ�HTXLSPHQW�DOO�WKH�WLPH��)RU�RQH�WKLQJ��WKH�W\SHV�RI�tools a service provider must own has FKDQJHG�GUDPDWLFDOO\��*RQH�DUH�WKH�GD\V�ZKHQ�D�PHFKDQLF�FRXOG�GR�DOO�KLV�ZRUN�ZLWK�D�OLIW�DQG�VRPH�ZUHQFKHV��&DUV�QRZ�DUH�FRPSXWHUL]HG��DQG�GHDOHUV�DQG�VKRS�owners have to invest their own money in the purchase of scanners and other electronic devices used to communicate ZLWK�D�YHKLFOH¶V�HOHFWURQLFV�/HVFRWD�VDLG�<DWHV¶�VLWXDWLRQ�

UHÀHFWV�D�UHDOLW\�RI�RSHUDWLQJ�D�VHUYLFH�GHSDUWPHQW�±�LW¶V�QRW�HDV\��%XW��KH�

A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment

B AC K T O T H E B A S I C S : G O A L L I N

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8


added, the payoff can be tremendous ZKHQ�WKH�MRE�LV�GRQH�ULJKW�³,W¶V�DOZD\V�D�FKDOOHQJH�WR�JHW�

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Usually that means giving them HQRXJK�WR�GR��$V�<DWHV�GLVFRYHUHG��if technicians don’t have enough to do, they’ll go somewhere where their VNLOOV�ZLOO�EH�LQ�PRUH�GHPDQG�

It might also mean giving them PRUH�PRQH\��$IWHU�DOO��WHFKQLFLDQV�KDYH�WR�HDW�WRR��/HVFRWD�VDLG�³:KHQ�,�KHDU�WKDW�D�GHDOHU�FDQ¶W�NHHS�

D�WHFKQLFLDQ��P\�WKRXJKWV�¿UVW�UXQ�WR�KLP�QRW�JHWWLQJ�HLWKHU�HQRXJK�ZRUN�RU�HQRXJK�PRQH\�´�/HVFRWD�VDLG��³$QG�\RX�FDQ¶W�FKHDW�RQ�WKH�HTXLSPHQW��,W¶V�the cheap man who pays the most for WKLQJV��%\�WU\LQJ�WR�VDYH�PRQH\�RQ�QHZ�HTXLSPHQW�QHHGHG�WR�ZRUN�RQ�WRGD\¶V�FRPSXWHUL]HG�FDUV��D�GHDOHU�will end up having to spend a lot of PRQH\�WU\LQJ�WR�NHHS�WHFKQLFLDQV�³3HRSOH�OLNH�WR�ZRUN�LQ�FRPIRUWDEOH�

environments and technicians are QR�GLIIHUHQW�IURP�DQ\RQH�HOVH��,�DOZD\V�VD\�LI�D�GHDOHU�FDQ¶W�NHHS�JRRG�mechanics, it can usually be traced EDFN�WR�SRRU�OLJKWLQJ��SRRU�SDUWV�DQG�SRRU�ZRUN�FRQGLWLRQV��7KHUH¶V�D�demand for technicians and they’ll go ZKHUH�WKH\�IHHO�PRVW�FRPIRUWDEOH�´

Having a service department is a full FRPPLWPHQW��/HVFRWD�VDLG��$QG�JHWWLQJ�good technicians is a competitive sport EHWZHHQ�GHDOHUV��0D\EH�WKDW�WHFK�OHIW�WR�go to a franchise operation because the boss there promised to send him to an $6(�FHUWL¿HG�SURJUDP��ZKHUH�WKH�WHFK�FRXOG�LPSURYH�KLV�VNLOO�VHW��,QGHSHQGHQW�GHDOHUV�VKRXOG�FRQVLGHU�VLPLODU�DFWLRQV�%LOO�(OOLII��RZQHU�RI�(OOLII�0RWRUV�

LQ�+DUOLQJHQ��7H[DV��LV�DQ�H[DPSOH�of a dealer who is committed to KLV�VHUYLFH�GHSDUWPHQW��+LV�ORW�provides a full variety of services, DQG�KH�ORQJ�DJR�UHDOL]HG�WKDW�LQ�order to have a service department, KH�KDG�WR�KDYH�HQRXJK�VHUYLFH�ZRUN�WR�NHHS�KLV�HPSOR\HHV�EXV\�

To better service his customers, his dealership can do anything from FKDQJLQJ�RLO�WR�HQJLQH�UHSODFHPHQW��He owns a couple of lots with a total

of seven service bays and 10 people ZRUNLQJ�WKHP��+H�DGYHUWLVHV�LQ�SULQW�DQG�RQ�WKH�VLJQDJH�DURXQG�KLV�ORWV��+H�VDLG�¿QGLQJ�TXDOL¿HG�SHRSOH�LVQ¶W�

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the right people, a dealer can have a service department that drives potential customers to the store, (OOLII�VDLG��:KLOH�WKH\¶UH�JHWWLQJ�WKHLU�FDU�ZRUNHG�RQ��PDQ\�RI�KLV�VHUYLFH�customers will wander around the lot DQG�WDNH�D�ORRN�DW�LQYHQWRU\��0D\EH�WKDW�SHUVRQ�LV�ORRNLQJ�IRU�VRPHWKLQJ�new, and if he sees something he OLNHV�WKDW�VHUYLFH�FXVWRPHU�FDQ�EH�FRQYHUWHG�LQWR�D�YHKLFOH�FXVWRPHU�

Elliff estimates his service department DFFRXQWV�IRU�DERXW��SHUFHQW�RI�KLV�WRWDO�EXVLQHVV��+H�VDLG�VRPH�RI�KLV�IHOORZ�GHDOHUV�GRQ¶W�UHDOL]H�WKDW�D�VHUYLFH�GHSDUWPHQW�KDV�WR�EH�DEOH�WR�PDNH�LW�RQ�LWV�RZQ��,W�VKRXOGQ¶W�EH�D�ORVV�OHDGHU�

Additionally, he sees dealers DFWXDOO\�VKRUW�FKDQJLQJ�WKHPVHOYHV�ZKHQ�LW�FRPHV�WR�SULFLQJ�WKHLU�FDUV��$�GHDOHU�PLJKW��IRU�H[DPSOH��SXW�$100 worth of reconditioning in a FDU�KH�ERXJKW�IRU��VD\��:KHQ�it comes time to price the car, he’ll ZDQW��SUR¿W��6R�KH¶OO�SULFH�WKH�YHKLFOH�DW��(OOLII�VDLG�7KDW¶V�D�PLVWDNH��$Q\�ZRUN�SXW�

into a vehicle using the dealership’s own service department should be UHÀHFWHG�SRVLWLYHO\�LQ�WKH�SULFH�RI�WKH�YHKLFOH��,I��RI�ZRUN�ZDV�SXW�LQWR�the car, that should translate into DGGLQJ��VD\��WR�WKH�EDFN�HQG�YDOXH�RI�WKH�YHKLFOH��6R�WKDW�FDU�VKRXOG�EH�SULFHG�DW��QRW��³$V�DQ�RZQHU��\RX�KDYH�WR�SXW�WKH�

money in to develop the infrastructure needed to run a good service GHSDUWPHQW�´�(OOLII�VDLG��³7KDW�PHDQV�KDYLQJ�WKH�ODWHVW�GLDJQRVWLF�HTXLSPHQW��%XW�LI�\RX�FKDUJH�ULJKW�IRU�\RXU�VHUYLFHV��\RX�ZLOO�DOZD\V�FRPH�RXW�DKHDG�´

Ultimately, having a good service department should mean more than another revenue source, Lescota VDLG��%\�KDYLQJ�D�VHUYLFH�GHSDUWPHQW�aimed at serving the public at large and not just his current customer base, Elliff is bringing in new potential EX\HUV�WR�ORRN�DW�KLV�LQYHQWRU\��

+H¶V�FUHDWLQJ�D�FDSWLYH�DXGLHQFH�%XW�D�JRRG�VHUYLFH�GHSDUWPHQW�FDQ�

GR�HYHQ�PRUH��:KHQ�D�FXVWRPHU�EULQJV�in a car, a dealer can glean all sorts RI�LQIRUPDWLRQ�DERXW�WKH�FXVWRPHU��,W¶V�EXLOW�LQ�PDUNHW�UHVHDUFK�³7KH�VPDUW�GHDOHU�VKRXOG�QRZ�NQRZ�

DOO�VRUWV�RI�WKLQJV�DERXW�WKDW�FXVWRPHU�´�/HVFRWD�VDLG��³7KH�GHDOHU�VKRXOG�NQRZ�KRZ�WKDW�VHUYLFH�FXVWRPHU�XVHV�KLV�FDU��Does he baby it or does he really run it WKURXJK�WKH�ULQJHU�DQG�ZHDU�LW�RXW"�:LWK�WKDW�NQRZOHGJH��WKH�GHDOHU�FDQ�EHWWHU�KHOS�WKH�FXVWRPHU�PDNH�DQ�LQIRUPHG�decision on the best vehicle to buy when LW�FRPHV�WLPH�WR�JHW�DQRWKHU�FDU�´%\�KDYLQJ�D�FRPSOHWH�VHUYLFH�

department, a dealer can get a customer used to bringing his vehicle WR�KLV�GHDOHUVKLS��1HHG�DQ�RLO�FKDQJH"�%ULQJ�WKH�FDU�WR�JRRG�ROG�-RH¶V��,Q�DQ�DFFLGHQW"�+DYH�WKH�FDU�WRZHG�WR�-RH¶V��1HHG�VRPH�HQJLQH�ZRUN"�*R�WR�-RH¶V��³7KHUH�FRPHV�D�WLPH�LQ�HYHU\�FDU¶V�OLIH�

ZKHQ�LW�EHFRPHV�FRXQWHU�SURGXFWLYH�WR�NHHS�SXWWLQJ�PRUH�PRQH\�LQ�WKDW�YHKLFOH�´�/HVFRWD�VDLG��³,I�\RX�KDYH�D�good relationship with your customers, and they bring their cars to you for service, you can tell that customer ZKHQ�LW¶V�WLPH�WR�JHW�D�QHZ�FDU�´

A service department can also KHOS�%X\�+HUH�3D\�+HUH�GHDOHUV�ZLWK�WKHLU�ERWWRP�OLQH��/HVFRWD�VDLG��,W¶V�a rule of that segment of the used car business that when a car stops UXQQLQJ��WKH�SD\PHQWV�VWRS�FRPLQJ�

If a dealer has a service department, the customer can bring the car in to JHW�¿[HG�DQG�WKH�FRVW�RI�UHSDLUV�FDQ�EH�DGGHG�WR�WKH�SD\PHQW�VFKHGXOH��A customer might not have $300 on him right then and there, but KH�FDQ�XVXDOO\�PDNH�KLV�SD\PHQWV�if that $300 is spread out over the UHVW�RI�WKH�SD\PHQW�VFKHGXOH�³$�JRRG�VHUYLFH�GHSDUWPHQW�JLYHV�

GHDOHUV�FRQWURO�´�/HVFRWD�VDLG��³,W�JLYHV�WKH�FXVWRPHU�D�UHDVRQ�WR�NHHS�FRPLQJ�EDFN�WR�\RX��%XW�LI�\RX¶UH�JRLQJ�WR�KDYH�D�VHUYLFH�GHSDUWPHQW��\RX�FDQ¶W�JR�LQ�KDOI�KHDUWHG��$V�WKH\�VD\�LQ�SRNHU��\RX�KDYH�WR�JR�DOO�LQ�±�EXW�WKH�UHZDUGV�FDQ�EH�KXJH�³7KHVH�GD\V��GHDOHUV�QHHG�HYHU\�

HGJH�WKH\�FDQ�JHW��1RZ�PRUH�WKDQ�HYHU��GHDOHUV�ZKR�GRQ¶W�NHHS�XS��IDOO�EHKLQG�DQG�JR�RXW�RI�EXVLQHVV�´�

BY JIM STICKFORD

C O N T I N U E D F RO M PAG E 6| A Service Department Can Be a Big Edge for Dealers Willing to Make the Commitment | B AC K T O T H E B A S I C S : G O A L L I N

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10


What Your Customers Really WantHow many times do you hear,

³&XVWRPHUV�RQO\�FDUH�DERXW�WKH�SULFH´"Most dealers will say they hear it

DOO�WKH�WLPH��%XW�SULFH�LV�RQO\�DQ�LVVXH�when it is presented as the only or SULPDU\�EHQH¿W��

Regardless of the industry, product or economy, a company does not need SURIHVVLRQDO�VDOHVSHRSOH�WR�VHOO�SULFH��)RU�WKDW��DOO�WKH\�QHHG�LV�D�ZHEVLWH�RU�FDWDORJ�DQG�D�SD\PHQW�SURFHVVRU��

If a company wants to increase sales and margin, it needs to teach the sales WHDP�KRZ�WR�HVWDEOLVK�UHDO�YDOXH��2QFH�that happens, they need to practice doing LW�RYHU�DQG�RYHU�

The difference between an amateur and a professional is a professional practices KLV�VNLOOV�±�KH�GRHVQ¶W�MXVW�SOD\�WKH�JDPH�or go on sales calls assuming the sales call LV�SUDFWLFH��7KH�NH\�WR�RYHUFRPLQJ�SULFH�LV�QRW�D�VFULSWHG�FDWFKSKUDVH��5DWKHU��it is learning how to create a real value SDUWQHUVKLS��,Q�RUGHU�WR�GR�WKDW��RQH�PXVW�SUDFWLFH��6HOOLQJ�YDOXH�LV�PRUH�WKDQ�PDNLQJ�

VWDWHPHQWV�OLNH��³:H�RIIHU�JUHDW�FXVWRPHU�VHUYLFH�´�RU��³:H�KDYH�H[SHULHQFH�DQG�H[SHUWLVH�´�RU��³2XU�SHRSOH�PDNH�WKH�GLIIHUHQFH�´:KHQ�VDOHVSHRSOH�DUH�DVNHG�DERXW�WKH�

value offered, those are the most common DQVZHUV�JLYHQ�

That’s no different than a person going on a job interview and telling the interviewer he should be hired because KH�LV�D�VHOI�VWDUWHU��D�WHDP�SOD\HU��D�SHRSOH�SHUVRQ��PRWLYDWHG�DQG�OR\DO��Those answers are generic and do not GLIIHUHQWLDWH�\RX�IURP�WKH�QH[W�SHUVRQ��9DOXH�LV�GHWHUPLQHG�E\�WKH�SURVSHFW��

³:KDW�YDOXH�GR�\RX�DGG"´�LV�D�WULFN�question because it can only be answered after the sales professional understands ZKDW�WKH�SURVSHFW�RU�FOLHQW�GH¿QHV�DV�YDOXH�

To determine what the customer

perceives as value, a sales professional PXVW�DVN�WKH�SURVSHFWLYH�FXVWRPHU�SXUSRVHIXO�TXHVWLRQV�DQG�DVN�D�ORW� RI�WKHP�

The more the sales professional learns DQG�XQGHUVWDQGV��WKH�PRUH�OLNHO\�KH�ZLOO�be able to establish value according to WKH�SURVSHFW��7KRXJK�PDQ\�VDOHVSHRSOH�NQRZ�WKDW��YHU\�IHZ�WUXO\�LPSOHPHQW�LW��7RR�PDQ\�VDOHVSHRSOH�ÀRRG�D�SURVSHFW�with information about what they have to RIIHU�ZLWKRXW�NQRZLQJ�ZKHWKHU�ZKDW�WKH\�are saying will be of value to a client or SURVSHFW�,W�FDQQRW�EH�VWUHVVHG�HQRXJK�±�DVN�

TXHVWLRQV�¿UVW�EHIRUH�H[SODLQLQJ�WKH�YDOXH�\RX�EULQJ��$VNLQJ�TXHVWLRQV�LV�PRUH�WKDQ�MXVW�

DVNLQJ�RSHQ�HQGHG�RU�OHDGLQJ�TXHVWLRQV��0RVW�VDOHVSHRSOH�DVN�TXHVWLRQV�OLNH��³:RXOG�LW�EH�D�EHQH¿W�WR�\RX�LI�ZH�FRXOG�JLYH�\RX�PRUH�RI�WKLV�IRU�OHVV�PRQH\"´�,Q�PRVW�FDVHV�LW�LV�D�UKHWRULFDO�TXHVWLRQ�±�WKH�customer has no choice but to respond, ³<HV�´�7KDW�LV�OLNH�DVNLQJ�D�FKLOG�LI�KH¶G�OLNH�to have more candy, play all day and not GR�KRPHZRUN�$VNLQJ�SXUSRVHIXO�TXHVWLRQV�DOORZV�WKH�

sales professional to truly understand a prospect, not just his service needs so he FDQ�³VHOO´�KLP��+HUH�DUH�WKUHH�HDV\�VWHSV�WR�PDNH�

sure you’re able to sell on true value and QRW�SULFH��

Write down your questions and take them with you: This does not PDNH�D�VDOHVSHUVRQ�OHVV�RI�D�SURIHVVLRQDO�RU�OHVV�RI�DQ�H[SHUW��,Q�IDFW��WKLV�ZLOO�DOORZ�you to show a client or prospect how important it is to fully understand their QHHGV�DQG�GHVLUHV��7KH�RUGHU�RI�\RXU�TXHVWLRQV�LV�LPSRUWDQW�DV�ZHOO��6WDUW�\RXU�TXHVWLRQV�ZLGH�±�LQGXVWU\�FRPSDQ\�SHUVRQ�FXUUHQW�YHQGRU��WKHQ�¿QDOO\�DERXW�WKH�SURGXFW�RU�VHUYLFH��

Help the prospect understand what makes you and your company

successful: $�SDUWQHUVKLS�LV�D�WZR�ZD\�VWUHHW�±�UHPHPEHU�WKH�VDOHV�SURIHVVLRQDO�LV�UHVSRQVLEOH�IRU�ERWK�ZD\V��7KDW�PHDQV�D�sales professional shares with the prospect ZKDW�PDNHV�KLP�VXFFHVVIXO�ZLWKRXW�PDNLQJ�LW�GLI¿FXOW�RU�LQFRQYHQLHQW�DQG�VKRZV�WKH�ZK\�DQG�YDOXH�IRU�ERWK�VLGHV��

Practice, practice, practice: 3UDFWLFH�\RXU�VDOHV�HYHU\�GD\�EHIRUHKDQG�UDWKHU�WKDQ�WDONLQJ�DERXW�LW�DIWHUZDUG�DQG�FDOOLQJ�LW�SUDFWLFH��7KDW�JRHV�IRU�DOO�VDOHV�PDQDJHUV��WRR��,I�

the sales leader does not mandate ongoing practice and get involved himself, it will QHYHU�KDSSHQ��,W¶V�MXVW�OLNH�D�VSRUWV�WHDP�that will not practice if the coach does not UHTXLUH�LW�DQG�JHW�RQ�WKH�¿HOG�WR�ZRUN�ZLWK�WKH�WHDP�

If the prospect cannot truly afford the product being offered, do not lower the SULFH�DQG�WKH�SHUFHLYHG�YDOXH��,QVWHDG��¿QG�D�QHZ�SURVSHFW��%\�DGPLWWLQJ�\RXU�SURGXFW�LV�QRW�D�¿W��\RX�ZLOO�JDLQ�PRUH�EX\HUV�ORQJ�WHUP�WKDQ�\RX�ZLOO�E\�IRUFH�feeding a product or service and losing YDOXH�DORQJ�WKH�ZD\�

Every customer wants the most for WKH�ORZHVW�SULFH��7KDW�LV�QRW�D�EDG�WKLQJ�once a sales professional learns how to help the prospect understand he really ZDQWV�VXFFHVV�IRU�WKH�EHVW�SULFH��6XFFHVV�FDQQRW�EH�SURYLGHG�E\�MXVW�D�YHQGRU��,W�FDQ�RQO\�EH�SURYLGHG�E\�D�WUXH�SDUWQHU�6DOHV�SURIHVVLRQDOV�QHHG�WR�SUHSDUH�

DQG�SUDFWLFH�VR�WKH�QH[W�WLPH�WKH�SURVSHFW�VD\V��³,�ZDQW�WKH�FKHDSHVW�SULFH�´�WKH�VDOHVSHUVRQ�LV�FRQ¿GHQW�DQG�UHDG\�WR�WDNH�FRQWURO�RI�WKH�VLWXDWLRQ��DQG�ZLOO�QHYHU�VHOO��RU�ORVH��RQ�SULFH�DJDLQ��

BY NATHAN JAMAILNATHAN JAMAIL, BEST-SELLING AUTHOR OF THE PLAYBOOK SERIES, IS A MOTIVATIONAL SPEAKER, ENTREPRENEUR AND CORPORATE COACH. THE FORMER EXECUTIVE FOR FORTUNE 500 COMPANIES AND OWNER OF SEVERAL SMALL BUSINESSES, TRAVELS THE COUNTRY HELPING INDIVIDUALS AND ORGANIZATIONS ACHIEVE SUCCESS. FOR MORE INFORMATION, VISIT WWW.NATHANJAMAIL.COM OR CALL (972) 377-0030.

L E A R N H OW T O S E L L B A S E D O N VA LU E , N O T P R I C E

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12


It seems as though every day, new PDUNHWLQJ�WHFKQRORJLHV�DQG�WUHQGV�HPHUJH�DV�WKH�KRWWHVW�WKLQJ�DURXQG�)URP�*RRJOH�$QDO\WLFV�WR�7ZLWWHU�

WR�SHUVRQDOL]HG�85/V��VRPHWKLQJ�LV�DOZD\V�FKDQJLQJ�LQ�VDOHV�DQG�PDUNHWLQJ��While that provides many new options and opportunities, it can also be RYHUZKHOPLQJ�DQG�FRQIXVLQJ�IRU�GHDOHUV�6R�KRZ�GR�\RX�NQRZ�ZKHUH��KRZ�DQG�

ZKHQ�WR�VSHQG�\RXU�PDUNHWLQJ�GROODUV�WR�JHW�WKH�EHVW�UHWXUQ�RQ�LQYHVWPHQW"�$QG�KRZ�GR�\RX�NQRZ�ZKDW�WR�DYRLG"�7KH�DQVZHU�LV�VLPSOH�±�GDWD�LV�NLQJ��

and the good news is used car dealers have been dealing with it for years, WUDFNLQJ��WHVWLQJ�DQG�WDLORULQJ�GDWD�WR�SUHGLFW�VDOHV�DQG�EXGJHW��0DUNHWLQJ�strategies and technology should deliver more data, telling you more DERXW�ZKDW¶V�ZRUNLQJ�DQG�ZKDW�LV�QRW��

There are still potholes in the road, but if you steer clear of the four biggest PDUNHWLQJ�SRWKROHV�\RX�ZLOO�VHH�WKH�LPSDFW�RQ�\RXU�JURZWK�DQG�ERWWRP�OLQH�

Not knowing your data'R�QRW�PDNH�DQ\�PDUNHWLQJ�

GHFLVLRQV�ZLWKRXW�¿UVW�XQGHUVWDQGLQJ�\RXU�GDWD��7KDW�LV�FUXFLDO��7UDFN�\RXU�GDWD�HYHU\�ZHHN��RU�HYHQ�PRUH�RIWHQ��so you can be proactive with any SRWHQWLDOO\�FRVWO\�PDUNHWLQJ�PLVWDNHV��7UDFN�KRZ�PDQ\�SRWHQWLDO�EX\HUV�DUH�calling your dealership or submitting lead forms daily, monthly and \HDUO\��,I�\RX�GRQ¶W�WUDFN�WKRVH�LWHPV�\RX�ZLOO�QHYHU�NQRZ�KRZ�RU�LI�\RXU�PDUNHWLQJ�FDPSDLJQV�DUH�ZRUNLQJ��8VH�*RRJOH�$QDO\WLFV��,W¶V�D�IUHH�

service that can show you important information about how people are using \RXU�ZHEVLWH��<RX�FDQ�WUDFN�KRZ�PXFK�WUDI¿F�LV�FRPLQJ�WR�\RXU�VLWH��KRZ�ORQJ�viewers are there and which pages are

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KDYH�LQYHQWRU\�SHRSOH�DUH�ORRNLQJ�IRU��&RQVLVWHQWO\�UHYLHZ�\RXU�653�WR�WHOO�\RX�LI�\RX�KDYH�WKH�vehicles people want and if you’re PHUFKDQGLVLQJ�\RXU�FDUV�SURSHUO\��

On average, you should be getting twice the number of Internet and phone OHDGV�DV�\RXU�WUDGLWLRQDO�83V��,I�\RXU�QXPEHUV�DUH�QRW�FORVH��\RX�VKRXOG�ZRUN�ZLWK�VRPHRQH�WR�EHWWHU�DQDO\]H�\RXU�GDWD�WR�VHH�ZKDW�LV�QRW�ZRUNLQJ�DQG�PDNH�FKDQJHV��7KH�ZRUVW�WKLQJ�\RX�FDQ�GR�ZLWK�SRRU�UHVXOWV�LV�LJQRUH�WKHP�

Ignoring Google Places<RX�RQO\�JHW�RQH�FKDQFH�WR�PDNH�D�

JUHDW�¿UVW�LPSUHVVLRQ��7KLV�LV�DOVR�WUXH�IRU�\RXU�LPDJH�RQ�WKH�ZHE��*RRJOH�KDV�FKDQJHG�LWV�DOJRULWKP�VR�WKH�*RRJOH�3ODFH�pages, which include business reviews, DUH�KLJK�DWRS�WKH�VHDUFK�HQJLQH�UHVXOWV�1R�DPRXQW�RI�SDLG�DGV�ZLOO�¿[�WKLV�LQ�

WKH�ORQJ�WHUP��,I�\RXU�*RRJOH�UHYLHZV�DUH�QHJDWLYH��\RXU�EX\HUV�ZLOO�ORRN�HOVHZKHUH�IRU�WKHLU�FDUV��<RX�ZDQW�WR�JHW�\RXU�H[LVWLQJ�FXVWRPHUV�WR�JLYH�\RX�SRVLWLYH�UHYLHZV�ZKHQ�WKH\�DUH�PRVW�OLNHO\�WR�GR�VR�±�ZKHQ�WKH\¶YH�MXVW�ERXJKW�WKHLU�FDU��,QFHQWLYL]H�LW�E\�RIIHULQJ�WKHP�D�review card that will give them discounts RQ�VHUYLFH�DW�YHU\�OLWWOH�FRVW�WR�\RX��

Not having a search engine strategy6HDUFK�HQJLQH�RSWLPL]DWLRQ�LV�NH\��

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Consumers search in many different ways so you need to build landing pages DQG�ZULWH�FRS\�IRU�ZHEVLWHV�WR�PDNH�VXUH�DOO�VHDUFK�UHVXOWV�DUH�FRYHUHG��

Not having a solid media strategy

Today, you need to have a social PHGLD�SUHVHQFH��,I�\RX�GRQ¶W��\RX¶UH�PLVVLQJ�RXW�RQ�VRPH�ELJ�RSSRUWXQLWLHV�

The bigger problem is using social PHGLD�ZLWKRXW�D�FRKHVLYH�VWUDWHJ\��<RX�QHHG�D�SODQ�IRU�)DFHERRN��7ZLWWHU�DQG�3LQWHUHVW��QRW�MXVW�DQ�DFFRXQW�ZKHUH�\RX�UDQGRPO\�SRVW�DQG�WZHHW��)RU�SHRSOH�WR�³/LNH´�\RX�RQ�)DFHERRN�or follow you on Twitter, you need WR�JLYH�WKH�FRQVXPHU�YDOXH�

Research shows the top three reasons people connect with brands on )DFHERRN�DQG�RWKHU�VRFLDO�PHGLD�DUH�IRU�the games, contests and promotions; to learn about new products; and WR�VKRZ�WKH\�DUH�IDQV��8VH�WKLV�information to create an engagement VWUDWHJ\�DQG�VWXG\�WKH�UHVXOWV�

It is all about getting consumers LQYROYHG��QRW�WU\LQJ�WR�VHOO�WKHP��([WHQG�your brand through social media, but DOVR�EH�VXUH�WR�WDNH�DGYDQWDJH�RI�DOO�the free monitoring and data analysis WRROV�WKH�VRFLDO�PHGLD�FKDQQHOV�RIIHU��

Don’t get your business caught XS�LQ�WKHVH�FRPPRQ�PDUNHWLQJ�PLVWDNHV��,I�\RX�IHHO�\RX�DUH�VWXFN��UH�HYDOXDWH�ZKDW�\RX�DUH�GRLQJ�DQG�PDNH�VWUDWHJ\�FKDQJHV�IRU�WKH�ORQJ�WHUP�EDVHG�RQ�KDUG�IDFWV�

With changes in these four areas, you will see improvement in all DVSHFWV�RI�\RXU�EXVLQHVV��

Avoid These Marketing Potholes

BY BRIAN BAKER BRIAN BAKER IS EXECUTIVE VICE PRESIDENT AND CHIEF CLIENT OFFICER FOR STREAM COMPANIES, HANDLING STRATEGIC PLANNING AND DAY-TO-DAY OPERATIONS FOR THE AUTOMOTIVE SALES AND CLIENT SERVICES TEAMS.

D O N O T M A K E A N Y M A R K E T I N G D E C I S I O N S W I T H O U T F I R S T U N D E R S TA N D I N G YO U R DATA .

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14


C O N T I N U E D O N PAG E 16

CARFAX Helps TV Station Take Aim at CurbstonerEditor’s note: Curbstoning – sales

of vehicles by unlicensed dealers – is a national problem that takes advantage of consumers and takes money away from state and local governments as well as legitimate dealers. This report from Memphis television station WMC-TV exposing a local curbstoner and explaining the issue to the public is a direct result of the commitment of vehicle history UHSRUW�SURYLGHU�&$5)$;�WR�¿JKWLQJ�curbstoning.

“We brought the issue to the station’s attention,” CARFAX public relations manager Chris Basso said. “Tennessee is one of the biggest hotbeds for curbstoning, but it’s a nationwide problem. Whenever we hear about curbstoners in a particular area, we work to get the word out about the potential problems with the cars these people are selling and how to avoid them.

“Most curbstoners are selling cars reputable dealers won’t touch – cars with hidden damage or rolled-back odometers or such – because they’re trying to make a quick sale. Anyone buying a used car needs to be wary of not only the car but of who they’re buying it from.”

Basso said CARFAX has contacted other media outlets, including stations in Nashville and Phoenix, with similar tips, as part of the company’s ongoing efforts to help educate and warn consumers and dealers about emerging issues involving used cars in their area.

By Andy WiseAction News 5/WMC-TV

A police report revealed a car buyer intends to press theft charges against the son of a woman who is fronting used car sales from her home for a dealership, a SUDFWLFH�FDOOHG�³FXUEVWRQLQJ�´%LOO�6XOOLYDQ�¿OHG�D�FRPSODLQW�ZLWK�WKH�

*HUPDQWRZQ��7HQQ��3ROLFH�'HSDUWPHQW�RQ�0D\��7KH�FRPSODLQW�DOOHJHG�KH�JDYH��WR�7KRPDV�&ROHPDQ��VRQ�RI�Deborah Coleman, to purchase WKUHH�YHKLFOHV��

When their delivery was delayed,

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RQ�P\�EHKDOI�´�6XOOLYDQ�VDLG��³7KH\�ZHUH�SXUFKDVHG�E\�VRPHERG\�HOVH�´

According to the sales documents, that ³VRPHERG\�HOVH´�ZDV�7KH�$XWR�&RQQHFWLRQ��DQ�DXWR�GHDOHUVKLS�DW��(��%URDGZD\�6W��LQ�:HVW�0HPSKLV��$UN�6XOOLYDQ¶V�SROLFH�UHSRUW�DOOHJHG�

&ROHPDQ�SRFNHWHG�KLV��DQG�QHYHU�SXUFKDVHG�DQ\�FDUV�ZLWK�KLV�PRQH\��The cars the Colemans claimed to have SXUFKDVHG�ZLWK�KLV�PRQH\��6XOOLYDQ�VDLG��were actually cars they sold on behalf of 7KH�$XWR�&RQQHFWLRQ�³&RUUHFW�´�6XOOLYDQ�DFNQRZOHGJHG��³7KH\�

VSOLW�WKH�SUR¿WV�´7KH�$FWLRQ�1HZV��,QYHVWLJDWRUV�

pinpointed Deborah Coleman as a curbstoner when the vehicle history WUDFNHU�&$5)$;�ZDUQHG�WKDW�XQOLFHQVHG�or unforthcoming auto dealers have agents posing as private sellers on CraigsList and LQ�FODVVL¿HG�DGV�³6RPHZKHUH�EHWZHHQ��DQG��SHUFHQW�

RI�>DXWR�VDOHV@�FODVVL¿HG�DGV�DUH�EHOLHYHG�WR�EH�FXUEVWRQHUV�´�&$5)$;¶V�&KULV�%DVVR�VDLG��³7KHVH�DUH�GHDOHUV�SRVLQJ�DV�SULYDWH�sellers who are selling cars that have a lot of KLGGHQ�SUREOHPV�´

Coleman has posted numerous listings for used car sales on CraigsList, all found while running searches based on her FHOOSKRQH�QXPEHU�.D\FH�:\DWW�RI�$UOLQJWRQ��7HQQ��

DQVZHUHG�RQH�RI�&ROHPDQ¶V�DGV�IRU�D��1LVVDQ�0D[LPD��WKLQNLQJ�&ROHPDQ�ZDV�the vehicle’s private owner putting it up IRU�VDOH�6KH�PHW�&ROHPDQ�DW�&ROHPDQ¶V�

KRPH��7KDW¶V�ZKHUH�WKH�FDU�ZDV�VWRUHG��:\DWW�VDLG�$IWHU�WDNLQJ�D�WHVW�GULYH�DQG�QHJRWLDWLQJ�

WKH�GHDO�±�EXW�IDLOLQJ�WR�UXQ�D�YHKLFOH�history report or to have the car inspected ±�:\DWW�SDLG��IRU�WKH�FDU��DFFRUGLQJ�WR�WKH�SDSHUZRUN�

It’s when Coleman handed Wyatt the

WLWOH�WKDW�:\DWW�UHDOL]HG�VRPHWKLQJ�ZDV�XS�³,�JRW�WKH�WLWOH��DQG�LW�VDLG��µ7KH�$XWR�

&RQQHFWLRQ�¶�´�:\DWW�VDLG�7KH�GHDOHUVKLS��RZQHG�E\�-LPP\�6PLWK��

LV�OLFHQVHG�ZLWK�WKH�$UNDQVDV�6WDWH�3ROLFH�WR�VHOO�XVHG�FDUV�LQ�$UNDQVDV��%XW�DFFRUGLQJ�WR�WKH�UHFRUGV�RI�WKH�

7HQQHVVHH�0RWRU�9HKLFOH�&RPPLVVLRQ��7KH�Auto Connection is not licensed to sell cars, QHZ�RU�XVHG��LQ�7HQQHVVHH�

It wasn’t long until Wyatt started having WURXEOH�ZLWK�WKH�0D[LPD��7KH�³6HUYLFH�(QJLQH�6RRQ´�OLJKW�VWD\HG�RQ��7KH�UDGLR¶V�SRZHU�VZLWFK�PDOIXQFWLRQHG��7KH�EUDNHV��SDGV��URWRUV��VSDUN�SOXJ�DQG�R[\JHQ�VHQVRU�KDG�WR�EH�UHSODFHG��6KH�QHDUO\�SDLG�DV�PXFK�WR�UHSDLU�WKH�FDU�

DV�VKH�GLG�WR�EX\�WKH�FDU�If she had run a vehicle history report,

she would have discovered The Auto Connection had Deborah Coleman curbstone Wyatt a car that had been in an DFFLGHQW�LQ�0LFKLJDQ�

Neither Coleman nor The Auto Connection disclosed the accident WR�:\DWW�³6R�LW¶V�EHHQ�ZUHFNHG�´�:\DWW�VDLG��³,�

cried and cried and cried about it, but I had WR�GR�ZKDW�,�KDG�WR�GR��,�GLGQ¶W�KDYH�D�ZD\�RXW�RI�LW�´

An undercover producer of The Action 1HZV��,QYHVWLJDWRUV�DQVZHUHG�RQH�RI�&ROHPDQ¶V�DGV�IRU�D�9RONVZDJHQ�-HWWD��7KH�WHVW�GULYH�UHYHDOHG�WKH�³6HUYLFH�(QJLQH�6RRQ´�OLJKW�ZDV�RQ�³7KDW¶V�EHFDXVH�LW¶V�GXH�IRU�DQ�RLO�

FKDQJH�´�&ROHPDQ�VDLG�WR�RXU�SURGXFHU��$�&$5)$;�UHSRUW�UHYHDOHG�QRWKLQJ�RI�FRQFHUQ�ZLWK�WKH�YHKLFOH¶V�KLVWRU\�%RWK�WKH�-HWWD�DQG�D�&DGLOODF�&ROHPDQ�

ZDV�VHOOLQJ�RXWVLGH�KHU�KRPH�KDG�$UNDQVDV�GHDOHU�WHPSRUDU\�WDJV��:KHQ�RXU�SURGXFHU�DVNHG�DERXW�WKH�RXW�RI�VWDWH�WDJV��&ROHPDQ�admitted she was selling the vehicles for 7KH�$XWR�&RQQHFWLRQ�³>7KH@�EXVLQHVV�LV�RYHU�LQ�$UNDQVDV��DQG�

it just saves all the [document] fees, and it VDYHV�PH�DERXW��GROODUV�SHU�FDU�´�VDLG�&ROHPDQ��ZKR�LV�DOVR�QRW�OLFHQVHG�to sell automobiles in Tennessee, according WR�VWDWH�UHFRUGV��

U N L I C E N S E D O R U N FO R T H C O M I N G D E A L E R S H AV E AG E N T S P O S I N G A S P R I VAT E S E L L E R S I N C L A S S I F I E D A D S .

CO_0712.indd 14 6/21/12 12:26 PM

CO_0712.indd 15 6/21/12 12:26 PM


16


According to the Tennessee Code $QQRWDWHG��³LW�LV�XQODZIXO�IRU�DQ\�person to engage in business … as a motor vehicle dealer [or] motor vehicle salesperson ��ZLWKRXW�¿UVW�REWDLQLQJ�D�OLFHQVH�DV�UHTXLUHG�LQ�WKLV�SDUW�´³7HQQHVVHH�ODZ�VD\V�WKDW�LI�\RX�VHOO�

PRUH�WKDQ�¿YH�YHKLFOHV�LQ�D�\HDU��\RX�KDYH�WR�KDYH�D�GHDOHU¶V�OLFHQVH�´�%DVVR�VDLG��³7KHVH�DUH�SHRSOH�ZKR�DUH�VNLUWLQJ�that law, selling hundreds of cars without getting a dealer’s license, costing the state and local dealers hundreds of thousands RI�GROODUV´�LQ�WD[�UHYHQXH�

Coleman refused to answer questions ZKHQ�FRQIURQWHG��6PLWK�DJUHHG�WR�DQ�RQ�camera interview, then abruptly canceled the LQWHUYLHZ�WKH�QH[W�GD\�2Q�WKH�SKRQH��KH�VDLG�&ROHPDQ�³LV�P\�

DJHQW��6KH�VHOOV�FDUV�IRU�PH��6RPHWLPHV�LW¶V�IURP�KHU�RZQ�GULYHZD\��6RPHWLPHV�LW¶V�IURP�D�>GUXJ�VWRUH@�SDUNLQJ�ORW��6KH¶V�MXVW�WU\LQJ�WR�IHHG�KHU�NLGV�´

Germantown police department records revealed another car buyer reported Coleman LQ�'HFHPEHU��

According to the complaint, the buyer blew the whistle on Coleman after he said he witnessed her and her son altering D�WHPSRUDU\�GULYH�RXW�WDJ�RQ�D�YHKLFOH��&ROHPDQ�WROG�WKH�SROLFH�RI¿FHU�ZKR�ZURWH�WKH�UHSRUW�WKDW�VKH�VROG�WKH�FDU�RQ�EHKDOI�RI�6WDU�$XWR�0DUW��LQ�&ROOLHUYLOOH��7HQQ�³1R��VLU�´�6WDU�$XWR�0DUW�RZQHU�'DYLG�

)OHPLQJ�VDLG��³6KH¶V�QHYHU�VROG�IRU�PH��1HYHU�KDG�D�VDOHVPDQ¶V�OLFHQVH�KHUH��1HYHU�DQ\WKLQJ�´

Germantown police determined there wasn’t enough evidence to charge Coleman ZLWK�D�FULPH�DQG�GHFLGHG�LW�ZDV�D�FLYLO�LVVXH�³,W¶V�D�ORVH�ORVH�VLWXDWLRQ�ZLWK�

FXUEVWRQLQJ�´�%DVVR�VDLG��³7KH�VWDWH�ORVHV�PRQH\��7KH�>OLFHQVHG@�GHDOHUV�ORVH�PRQH\�DQG�WKH�FRQVXPHU�JHWV�ULSSHG�RII�³,I�\RX¶UH�ORRNLQJ�RQOLQH��HVSHFLDOO\�

WKURXJK�VLWHV�OLNH�&UDLJV/LVW��\RX�UHDOO\�QHHG�WR�EH�FDUHIXO�DERXW�ZKDW�\RX¶UH�EX\LQJ�´

Coleman’s curbstoning operation may be in violation of a Germantown city RUGLQDQFH�WKDW�SURKLELWV�³UHFHLYLQJ�SHUVRQV�at a residential property for the purpose RI�EX\LQJ��VHOOLQJ��RUGHULQJ�RU�SLFNLQJ�XS�SURGXFWV�LQ�FRQQHFWLRQ�ZLWK�D�EXVLQHVV�´³&RGH�FRPSOLDQFH�KDV�KDG�FRQWDFW�ZLWK�

>&ROHPDQ@�LQ�WKH�SDVW�´�VDLG�6WDFH\�(ZHOO��VSRNHVSHUVRQ�IRU�WKH�FLW\�RI�*HUPDQWRZQ��³:H�GLG�SURYLGH�QRWLFH�IRU�XQOLFHQVHG�YHKLFOHV�LQ�WKH�VWUHHW�LQ�1RYHPEHU�RI��EXW�KDYH�QRW�KDG�DQ\WKLQJ�YHKLFOH�UHODWHG�VLQFH��,Q�DGGLWLRQ��WKHUH�LV�QR�EXVLQHVV�OLFHQVH�IRU´�&ROHPDQ¶V�DGGUHVV��

C O N T I N U E D F RO M PAG E 1 4CARFAX Helps TV Station Take Aim at Curbstoner

Report Shows Auto Credit Loosening Average credit scores for consumers buying a vehicle have dropped to

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FUHGLW�VFRUH�IRU�¿QDQFLQJ�D�QHZ�YHKLFOH�GURSSHG�VL[�SRLQWV�WR��DQG�IHOO�IRXU�SRLQWV�WR��IRU�XVHG�YHKLFOHV��)RU�FRPSDULVRQ��DYHUDJH�FUHGLW�VFRUHV�IRU�WKH�¿UVW�TXDUWHU�RI��MXVW�EHIRUH�WKH�HFRQRP\�VDJJHG��ZHUH��IRU�QHZ�YHKLFOHV�DQG��IRU�XVHG�/HQGHUV�FRQWLQXHG�WR�VHW�IDYRUDEOH�WHUPV�IRU�FRQVXPHUV�GXULQJ�4��RI��

,QWHUHVW�UDWHV�ZHUH�ORZHU�DQG�ORDQ�WHUPV�ORQJHU�WKDQ�LQ�WKH�¿UVW�TXDUWHU�ODVW�\HDU��JLYLQJ�FRQVXPHUV�DFFHVV�WR�SRWHQWLDOO\�ORZHU�PRQWKO\�SD\PHQWV��7KH�DYHUDJH�LQWHUHVW�UDWH�GURSSHG�WR��SHUFHQW�IRU�QHZ�YHKLFOH�ORDQV�DQG��percent for used, while the average loan term increased by one month for ERWK�QHZ��PRQWKV��DQG�XVHG��PRQWKV��YHKLFOHV�³2XU�UHSRUW�VKRZV�DXWRPRWLYH�OHQGLQJ�LV�DV�KHDOWK\�DV�LW¶V�EHHQ�VLQFH�

WKH�PDUNHW�ERWWRPHG�RXW�LQ��´�([SHULDQ�GLUHFWRU�RI�DXWRPRWLYH�FUHGLW�0HOLQGD�=DEULWVNL�VDLG��³:LWK�FRQVXPHUV�GRLQJ�D�JRRG�MRE�RI�SD\LQJ�EDFN�ORDQV�RQ�WLPH�DQG�WKH�SHUFHQWDJH�RI�GROODUV�DW�ULVN�UHDFKLQJ�LWV�ORZHVW�SRLQW�LQ�VL[�\HDUV��OHQGHUV�DUH�DEOH�WR�H[WHQG�WHUPV�DQG�SURYLGH�ORZHU�UDWHV�³7KLV�WKDZLQJ�RI�WKH�FUHGLW�SLSHOLQH�KDV�EHHQ�JRRG�IRU�HYHU\RQH��IURP�

FRQVXPHUV�WR�OHQGHUV�WR�DXWRPRWLYH�´7KH�DQDO\VLV�DOVR�VKRZHG�DQ�LQFUHDVH�LQ�WKH�DYHUDJH�DPRXQW�¿QDQFHG��

ZKLFK�URVH��WR��IRU�QHZ�YHKLFOHV�DQG��WR��IRU�XVHG�YHKLFOHV��

Pace of Dealers Adding Inventory Slows Used car dealers have become less aggressive in bidding for inventory at

ZKROHVDOH�DXFWLRQV�LQ�UHFHQW�ZHHNV��%ODFN�%RRN�YLFH�SUHVLGHQW�DQG�PDQDJLQJ�HGLWRU�5LFN\�%HJJV�VDLG�%HJJV�QRWHG�WKDW�WKH�UHWDLO�PDUNHW�KDV�EDFNHG�RII�VOLJKWO\�DQG�GHDOHUV�KDYH�

JRWWHQ�OHVV�DJJUHVVLYH�ZLWK�ELGGLQJ�DFWLYLW\�IRU�WKH�ODWHVW�PRGHO�\HDUV��(YHU\�FDU�VHJPHQW�VKRZHG�UDWH�RI�GHFOLQH�DQG�RQO\�WZR�WUXFN�VHJPHQWV�±�FRPSDFW�689V�DQG�IXOO�VL]H�FURVVRYHUV�±�ZHUH�XS�LQ�0D\��³:KLOH�WKHUH�DUH�VHDVRQDOLW\�WUHQGV�FXUUHQWO\�WDNLQJ�SODFH�LQ�WKH�UHWDLO�

PDUNHWV��ZH¶UH�VWDUWLQJ�WR�VHH�KHVLWDQFH�RI�GHDOHUV�WR�UH¿OO�XVHG�FDU�DQG�WUXFN�LQYHQWRU\�´�%HJJV�VDLG��³6RPH�RI�WKH�UHQWDO�FRPSDQLHV�DUH�SXVKLQJ�D�IHZ�PRUH�PRGHOV�LQWR�WKH�PDUNHW�ZLWK�D�OHVVHU�GHPDQG�IRU�WKH��V�DQG��PRGHOV��WKXV�JHWWLQJ�OHVV�DJJUHVVLYH�ELGGLQJ�DFWLYLW\�IRU�WKH�ODWHVW�PRGHO�\HDUV�´��

I N D U S T RY C O R N E R

Rising Sales Lift Floorplans5LVLQJ�8�6��QHZ�DQG�XVHG�DXWR�VDOHV�KDYH�ERRVWHG�GHDOHUVKLS�SUR¿WV�LQ��

DQG�DUH�VWUHQJWKHQLQJ�DOUHDG\�VROLG�SHUIRUPDQFH�RI�GHDOHU�ÀRRUSODQ�DVVHW�EDFNHG�VHFXULWLHV��WKH�¿QDQFLDO�UDWLQJV�VHUYLFH�)LWFK�UHSRUWHG��'HDOHU�ÀRRUSODQ�DVVHW�SHUIRUPDQFH�KDV�EHHQ�VROLG�WKLV�\HDU��ZLWK�PRVW�WUXVW�

SHUIRUPDQFH�PHWULFV�DW�VRPH�RI�WKH�VWURQJHVW�OHYHOV�VHHQ�LQ�WKH�VHFWRU��0RQWKO\�payment rates are elevated above historical levels, dealer inventory agings are YHU\�ORZ�DQG�GHDOHU�GHIDXOWV�DUH�DW�UHFRUG�ORZV�IRU�PRVW�RI�WKH�WUXVWV��*LYHQ�WKH�IDYRUDEOH�FRQGLWLRQV�FXUUHQWO\�VXSSRUWLQJ�8�6��DXWR�GHDOHUVKLS�

QHWZRUNV��)LWFK¶V�RXWORRN�IRU�ERWK�DVVHW�DQG�UDWLQJV�SHUIRUPDQFH�LQ�� LV�VWDEOH��7KH�UHSRUW�DOVR�GLVFXVVHV�WKH�KHDOWK�RI�8�6��DXWR�GHDOHUVKLSV�LQ��

LQFOXGLQJ�VDOHV�OHYHOV��H[SHQVHV�DQG�SUR¿WDELOLW\��DORQJ�ZLWK�GHWDLOLQJ�RWKHU�¿QDQFLDO�GHDOHU�PHWULFV�DQG�RYHUDOO�LQGXVWU\�KHDOWK��7KH�UHSRUW��³8�6��'HDOHU�)ORRUSODQ�$%6��5REXVW�'HDOHUV�LQ��´�LV�

DYDLODEOH�DW�ZZZ�¿WFKUDWLQJV�FRP��

CO_0712.indd 16 6/21/12 12:26 PM

CO_0712.indd 17 6/21/12 12:26 PM


18


$W�WKH�UHFHQW�1DWLRQDO�$OOLDQFH�RI�%X\�+HUH�3D\�+HUH�'HDOHUV��1$%'��'HDOHU�$FDGHP\�LQ�/DV�9HJDV��1,$'$�DQG�1$%'�jointly announced the details of their LQDXJXUDO�%+3+�&HUWL¿HG�0DVWHU�'HDOHU�training program, scheduled to be held in 6HSWHPEHU�LQ�'DOODV�

Though NIADA has been conducting LWV�VXFFHVVIXO�&HUWL¿HG�0DVWHU�'HDOHU�retail program for several years, this new LQLWLDWLYH�PDUNV�WKH�LQGXVWU\¶V�¿UVW�%+3+�FHUWL¿FDWLRQ�SURJUDP�

At a very important time, during ZKLFK�WKH�%+3+�LQGXVWU\�IDFHV�PDQ\�challenging legal and regulatory issues, WKLV�FHUWL¿FDWLRQ�SURJUDP�LV�GHVLJQHG�WR�KHOS�HVWDEOLVK�QHZ�RSHUDWLQJ�DQG�¿QDQFLDO�VWDQGDUGV�IRU�LQGXVWU\�OHDGHUV��3DUWLFLSDQWV�in the inaugural training program must meet certain operational standards,

LQFOXGLQJ��EXW�QRW�OLPLWHG�WR��)LYH�\HDUV�RI�VXFFHVVIXO�RSHUDWLQJ�

performance��Membership in good standing in NIADA, 1$%'�RU�ERWK

��+DYLQJ�D�FKLHI�FRPSOLDQFH�RI¿FHU��$I¿UPLQJ�WKDW�DOO�GHDOHUVKLS�RSHUDWLRQDO�

documents and transactional forms have had a positive legal and compliance UHYLHZ�IURP�D�TXDOL¿HG�DWWRUQH\

��0DLQWDLQLQJ�¿QDQFLDO�VWDWHPHQWV�prepared in accordance with generally DFFHSWHG�DFFRXQWLQJ�SULQFLSOHV�

In addition, the dealer’s historical SHUIRUPDQFH�PXVW�DSSUR[LPDWH�WKH�NH\�LQGXVWU\�EHQFKPDUNV�SXEOLVKHG�DQQXDOO\�E\�1$%'�DQG�6XESULPH�$QDO\WLFV�IRU�GHEW�HTXLW\�UDWLR��DOORZDQFH�IRU�EDG�debts, average cash in deal, average gross SUR¿W�SHU�YHKLFOH�VROG��DYHUDJH�SRUWIROLR�

delinquency, average net loss per charge off DQG�DYHUDJH�GHIDXOW�UDWH�

A complete copy of the most recent %+3+�LQGXVWU\�EHQFKPDUNV�FDQ�EH�GRZQORDGHG�IUHH�DW�ZZZ�VXEDQDO\WLFV�FRP�or by obtaining a copy of NIADA’s Used Car Industry Report�IRU��IRU�PRUH�LQIRUPDWLRQ��YLVLW�ZZZ�QLDGD�FRP�

The eligibility criteria were established with an emphasis toward encouraging compliance with all industry laws and UHJXODWLRQV��SUXGHQW�¿QDQFLDO�PDQDJHPHQW�and successful operating performance, and VRXQG�V\VWHPV�DQG�SURFHVVHV��7KRVH�WUDLWV�will distinguish graduates to both capital SURYLGHUV�DQG�WKHLU�LQGXVWU\�SHHUV�

The inaugural session is planned for ��GD\V�DW�D�WUDLQLQJ�VLWH�LQ�WKH�'DOODV�DUHD�WR�EH�DQQRXQFHG�LQ�WKH�QHDU�IXWXUH��The program goal is to provide training

B H P H C E R T I F I E D M A S T E R D E A L E R P RO G R A M S E T T O K I C K O F FBHPH Perspectives

CO_0712.indd 18 6/21/12 12:27 PM

JULY/AUGUST 2012 C I A D A I N S I D E R

19


IRU�RXWVWDQGLQJ�RSHUDWRUV�LQ�WKH�%+3+�LQGXVWU\��$V�D�UHVXOW�RI�WKH�WUDLQLQJ�DQG�their commitment to ethical practices and high business standards, graduates should EHFRPH�HYHQ�PRUH�VXFFHVVIXO�%HFRPLQJ�D�%+3+�&HUWL¿HG�0DVWHU�

Dealer is recognition of a dealer’s dedication to the industry and his or her record of proven stability, reliability and ethical EXVLQHVV�SUDFWLFHV�

The instructors include several RI�WKH�QDWLRQ¶V�OHDGLQJ�H[SHUWV�DQG�PRVW�VXFFHVVIXO�RSHUDWRUV��7KH�FRXUVH�curriculum provides interactive training DQG�QHWZRUNLQJ�DQG�ZLOO�LQLWLDOO\�LQFOXGH��(FRQRPLF�RYHUYLHZ��EHQFKPDUNV�DQG�

trends��)LQDQFLDO�PDQDJHPHQW��DFFRXQWLQJ��WD[HV�DQG�PHWULFV

��9HKLFOH�DFTXLVLWLRQ�DQG�UHFRQGLWLRQLQJ��.HHSLQJ�YHKLFOHV�UXQQLQJ�DQG�

customers paying

��6DOHV�DQG�PDUNHWLQJ�VWUDWHJLHV�� Underwriting best practices��Collection best practices��0D[LPL]LQJ�UHFRYHULHV��Legal and compliance��6\VWHPV�SURFHVVHV�WHFKQRORJ\��Much, much moreIt is contemplated that changes will

be made to the curriculum in the future EDVHG�RQ�LQSXW�IURP�WKH�SDUWLFLSDQWV��The curriculum is designed for graduates WR�HQKDQFH�WKHLU�PDQDJHPHQW�VNLOOV��LPSURYH�WKHLU�DGYHUWLVLQJ�DQG�¿QDQFLDO�management, build more positive FRQVXPHU�UHODWLRQVKLSV�DQG�VWD\�FRPSOLDQW�*UDGXDWHV�ZLOO�UHFHLYH�WKHLU�%+3+�

&HUWL¿HG�0DVWHU�'HDOHU�GHVLJQDWLRQ�DQG�XVH�RI�WKH�&0'�VHDO�IRU�D�SHULRG�RI��PRQWKV��Each CMD graduate must subsequently REWDLQ�D�PLQLPXP�RI��FUHGLW�KRXUV�RI�1,$'$�1$%'�DSSURYHG�FRQWLQXLQJ�HGXFDWLRQ�GXULQJ�HDFK��PRQWK�SHULRG�

LQ�RUGHU�WR�UHWDLQ�WKH�GHVLJQDWLRQ��$W�OHDVW��KRXUV�RI�FRQWLQXLQJ�HGXFDWLRQ�opportunities will be offered throughout WKH�\HDU�,W�LV�H[SHFWHG�WKDW�VRPH�RI�WKHVH�KRXUV�

can be earned by attending the NIADA &RQYHQWLRQ�DQG�1$%'�WUDLQLQJ�HYHQWV��1$%'�ZLOO�KROG�DQ�(DVW�&RDVW�1DWLRQDO�%+3+�&RQIHUHQFH�LQ�$WODQWD�RQ�2FWREHU��7KH�%+3+�EXVLQHVV�UHTXLUHV�VSHFLDOL]HG�

training and this program offers advanced sessions focused on achieving operating DQG�¿QDQFLDO�H[FHOOHQFH��2SHUDWRUV�ZKR�strive to distinguish themselves from their LQGXVWU\�SHHUV�DUH�XUJHG�WR�SDUWLFLSDWH�

Operators interested in participating can obtain an application by calling NIADA DW��RU�HPDLOLQJ�JHRUJLD#QLDGD�FRP��E\�FRQWDFWLQJ�1$%'�DW��RU�E\�HPDLOLQJ�-RH�.HDUVH�DW�MRH#EKSKLQIR�FRP��6SDFH�LV�OLPLWHG��

K E N N E T H S H I L S O N , C PA , I S P R E S I D E N T O F S U B P R I M E A N A LY T I C S ( W W W. S U B A N A LY T I C S . C O M ) , A C O N S U LT I N G C O M PA N Y T H AT P ROV I D E S P O R T FO L I O A N A LYS I S S E RV I C E S A N D C U S T O M C R E D I T S C O R I N G S O LU T I O N S , A N D I S P R E S I D E N T A N D FO U N D E R O F T H E N AT I O N A L

A L L I A N C E O F B U Y H E R E - PAY H E R E D E A L E R S ( W W W. B H P H I N FO . C O M ) . H E CA N B E R E AC H E D AT K E N @ K E N S H I L S O N . C O M . U P C O M I N G N A B D C O N F E R E N C E S I N C LU D E T H E E A S T C OA S T B H P H C O N F E R E N C E AT T H E G E O RG I A I N T E R N AT I O N A L C O N V E N T I O N C E N T E R I N AT L A N TA O N

O C T O B E R 21 - 2 3 , 2 01 2 . FO R M O R E I N FO R M AT I O N , V I S I T W W W. B H P H I N FO . C O M O R CA L L ( 8 3 2 ) 76 7 - 47 5 9 .

BY KENNETH SHILSON

CO_0712.indd 19 6/21/12 12:27 PM


20


)RU�D�%X\�+HUH�3D\�+HUH�RSHUDWLRQ��UHSDLUV�DUH�MXVW�SDUW�RI�GRLQJ�EXVLQHVV��$OO�%+3+�GHDOHUV�NQRZ�WKH�DGDJH��WR�NHHS�WKH�SD\PHQWV�FRPLQJ��WKH�FDU�KDV�WR�NHHS�UXQQLQJ��:KDW¶V�PRUH��WKRVH�FDUV�DUH�usually in need of reconditioning before WKH\¶UH�VROG�LQ�WKH�¿UVW�SODFH�6R�ZKDW�LV�WKH�EHVW��PRVW�FRVW�

effective way to have those cars VHUYLFHG�DQG�UHSDLUHG"�'RHV�LW�UHTXLUH�D�FRPSOHWH�UHSDLU�GHSDUWPHQW�RQ�VLWH"�0D\EH�MXVW�RQH�PHFKDQLF�RQ�VWDII"�2U�perhaps you should simply outsource \RXU�VHUYLFH�ZRUN"�)RU�HYHU\�%+3+�GHDOHU��WKHUH�LV�D�

GLIIHUHQW�FRUUHFW�DQVZHU��7KH�EHVW�ZD\�WR�GHWHUPLQH�ZKDW�ZLOO�ZRUN�EHVW�IRU�your business is by reviewing all the options and weighing the pros, cons and FRVWV�LQYROYHG��³7KHUH�LV�QR�FRRNLH�FXWWHU�DQVZHU�

WR�WKH�VHUYLFH�TXHVWLRQ�IRU�DOO�%X\�+HUH�3D\�+HUH�GHDOHUV�OLNH�WKHUH�PLJKW�EH�IRU�UHWDLO�VWRUHV�´�VDLG�-D\�5RVH��D�SDUWQHU�LQ�*OREDO�7UDLQLQJ�6ROXWLRQV��an international dealer training and EXVLQHVV�GHYHORSPHQW�FRPSDQ\��³7KHUH�DUH�VR�PDQ\�WKLQJV�WR�FRQVLGHU�´

In-House Service Department: Pros%XLOGLQJ�\RXU�RZQ�LQ�KRXVH�UHSDLU�

department, no matter how large, FDQ�EH�DGYDQWDJHRXV�IRU�VRPH�%+3+�GHDOHUV��,I�H[HFXWHG�DQG�RSHUDWHG�properly, it can result in lower UHFRQGLWLRQLQJ�UHSDLU�FRVWV��UHGXFHG�repair time, better quality control, increased sales and enhanced customer VDWLVIDFWLRQ��7KH�FDYHDW�LV�WKDW�DQ\�dealer entering the service business has WR�EH�IXOO\�FRPPLWWHG�WR�PDNH�LW�ZRUN�Lower repair costs: When a car is sent to an outside repair facility, often the price of the repair is calculated EDVHG�RQ�D�SUH�VHW�UHSDLU�PHWULF��,I�D�FHUWDLQ�UHSDLU�LV�OLVWHG�DV�WDNLQJ�WZR�hours and costing $400, that is what will be charged, even if the facility is DEOH�WR�UHSDLU�WKH�SUREOHP�TXLFNHU�DQG�ZLWK�IHZHU�SDUWV�³,I�\RX�DUH�UXQQLQJ�WKH�UHSDLUV��\RX�

KDYH�WKH�DELOLW\�WR�FRQWURO�WKRVH�FRVWV�´�said Richard Chilgreen, a partner LQ�*OREDO�7UDLQLQJ�6ROXWLRQV��³7KDW�FDQ�VLJQL¿FDQWO\�ORZHU�WKH�FRVW�RI�WKH�UHSDLU��%\�GRLQJ�WKLV�\RX�DUH�KHOSLQJ�the customer, creating great customer relations and helping save them money that they are then able to use to FRQWLQXH�WR�SD\�EDFN�WKHLU�ORDQ�´�$QRWKHU�ZD\�DQ�LQ�KRXVH�UHSDLU�

shop can save dealers money is better XWLOL]DWLRQ�RI�TXDOLW\�XVHG�SDUWV�³(VSHFLDOO\�ZKHQ�UHFRQGLWLRQLQJ�FDUV��

often a good used part can be used at no VDFUL¿FH�WR�VDIHW\�RU�TXDOLW\�´�&KLOJUHHQ�VDLG��³,QVWHDG��PDQ\�LQGHSHQGHQW�repair facilities buy complete new UHSODFHPHQW�NLWV�DQG�XVH�RQO\�ZKDW�LV�QHHGHG�DQG�FKDUJH�IRU�DOO�RI�LW��7KLV�LV�DQ�HYHU�JURZLQJ�H[SHQVH�LQ�WKH�%+3+�DUHQD��%\�KDYLQJ�\RXU�RZQ�VHUYLFH�GHSDUWPHQW��\RX�FDQ�PDNH�XVH�RI�XVHG�SDUWV�VXSSOLHUV�ZKHQ�DSSOLFDEOH�´

Reduced repair time: 0RVW�%+3+�customers not only do not want to spend a lot of money on repairs, they also cannot afford to be without their YHKLFOH�IRU�DQ�H[WHQGHG�SHULRG�RI�WLPH��0DLQWDLQLQJ�D�ZHOO�UXQ�UHSDLU�IDFLOLW\�DOORZV�\RX�WR�PDNH�VXUH�\RXU�FXVWRPHUV�JHW�EDFN�RQ�WKH�URDG�TXLFNO\�-XVW�DV�LPSRUWDQW��DQ�LQ�KRXVH�VHUYLFH�

RSHUDWLRQ�FDQ�VLJQL¿FDQWO\�FXW�GRZQ�WKH�WLPH�LW�WDNHV�WR�UHFRQGLWLRQ�QHZO\�acquired units and get them ready for sale, if only by eliminating a trip to an RXWVLGH�VHUYLFH�VKRS�DQG�EDFN��$QG�WKH�faster the car can get out on the lot, the IDVWHU�LW�FDQ�VHOO��³,I�\RX�DUH�UXQQLQJ�WKH�UHSDLU�IDFLOLW\��

\RX�FDQ�GHWHUPLQH�ZKLFK�FDUV�WDNH�SULRULW\�´�&KLOJUHHQ�VDLG��³7KLV�FDQ�KHOS�H[SHGLWH�DQ\�LVVXHV�LQWHUQDOO\��LQVWHDG�RI�MXVW�KRSLQJ�D�PDMRU�UHSDLU�ZLOO�WDNH�SULRULW\�ZLWK�DQRWKHU�VHUYLFH�SURYLGHU��7KLV�LV�D�JUHDW�FXVWRPHU�VHUYLFH�´

Quality control (with a great staff): Having control over the quality RI�UHSDLU�ZRUN�EHLQJ�GRQH�LV�LPSRUWDQW�for the overall customer satisfaction

H[SHULHQFH��,W�VWDUWV�ZLWK�KLULQJ�D�TXDOLW\�VWDII�±�HVSHFLDOO\�WKH�SHUVRQ�RYHUVHHLQJ�WKH�VKRS�³+DYLQJ�WKH�ULJKW�SHRSOH�RYHUVHH�

HYHU\WKLQJ�LV�FUXFLDO�´�VDLG�6FRWW�$OOHQ��owner of Auto Land in Haltom City, 7H[DV�DQG�WKH��1,$'$�4XDOLW\�'HDOHU�RI�WKH�<HDU��³$V�GHDOHUV��ZH�QHHG�to understand that running a mechanic shop is very different from running D�VDOHV�DQG�¿QDQFH�RSHUDWLRQ��0RVW�GHDOHUV�,�NQRZ�DUH�YHU\�JRRG�DW�VDOHV�DQG�¿QDQFH��EXW�QRW�QHFHVVDULO\�LQ�ZKDW�LW�WDNHV�WR�UXQ�D�UHSDLU�VKRS�´*DU\�*RVVHOLQ��RZQHU�RI�6KDQQRQ�

0RWRUV�LQ�-RKQVWRQ��5�,��DJUHHG��,Q�addition to his two mechanics and D�GHWDLO�H[SHUW��KH�KLUHG�D�VHUYLFH�PDQDJHU�WR�RSHUDWH�KLV�UHSDLU�IDFLOLW\�³,W�LV�QHFHVVDU\�WR�KDYH�VRPHRQH�LQ�

FKDUJH�ZKR�FDQ�VSHDN�ZLWK�FXVWRPHUV�DQG�PDQDJH�WKH�ZRUNORDG�´�KH�VDLG��³(YHQ�LI�,�RXWVRXUFHG�P\�VHUYLFH�ZRUN��,�ZRXOG�ZDQW�D�SRLQW�SHUVRQ�WR�VSHDN�with customers and outside vendors UHODWHG�WR�VHUYLFH��+H�LV�YLWDO�WR�P\�RSHUDWLRQ�´7KH�TXDOLW\�RI�WKH�ZRUN�LV�GLUHFWO\�

tied to the quality of mechanics KLUHG��0RVW�H[SHUWV�DJUHH�WKDW�ZLWK�the sophistication of cars now, FHUWL¿FDWLRQ�IURP�DQ�RUJDQL]DWLRQ�VXFK�DV�$XWRPRWLYH�6HUYLFH�([FHOOHQFH��$6(��LV�FULWLFDO��DORQJ�ZLWK�H[SHULHQFH��NQRZOHGJH�RI�D�YDULHW\�RI�FDUV�DQG�D�JRRG�ZRUN�HWKLF�7KH�FHUWL¿FDWLRQ�FDQ�EH�D�PDMRU�

selling point as well, letting customers NQRZ�\RXU�PHFKDQLFV�KDYH�WKRURXJKO\�LQVSHFWHG�WKH�YHKLFOH�EHIRUH�WKH�VDOH�³,I�\RX�DUH�DEOH�WR�DGYHUWLVH�D�

PXOWLSRLQW�LQVSHFWLRQ�E\�DQ�$6(�FHUWL¿HG�PHFKDQLF�ZKR�LV�SDUW�RI�\RXU�team, that offers a lot meaning to your FXVWRPHU�´�&KLOJUHHQ�VDLG��³(YHQ�LI�\RX�GR�QRW�KDYH�D�IXOO�VHUYLFH�GHSDUWPHQW��EXW�MXVW�PD\EH�RQH�FHUWL¿HG�PHFKDQLF��offering this inspection helps your FXVWRPHUV�NQRZ�LW�KDV�EHHQ�H[DPLQHG�DQG�UHSDLUHG�SURSHUO\�´

Making Repairs in the Buy Here-Pay Here World

C O N T I N U E D O N PAG E 2 2

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21


Making Repairs in the Buy Here-Pay Here WorldAlmost 70 percent of car buyers said

social media aided their shopping process

and a similar number said online reviews

affected their choice of dealers according

to a new study by the automotive social

media and reputation management

company Digital Air Strike™.

Digital Air Strike said the 2012

Automotive Dealership Social Media

and Online Reputation Study, completed

LQ�$SULO��LV�WKH�¿UVW�DXWRPRWLYH�VSHFL¿F�study to analyze the use of social

media and review sites by car buyers

during the dealership selection process

while concurrently auditing how car

dealerships engage with consumers on

these sites.

The study measured usage trends on

Facebook, Twitter and Google+ while

identifying the top four dealership review

sites – Edmunds, Cars.com, Yelp and

Google Reviews – based on consumer use

DQG�WUDI¿F�

The consumer study surveyed 275

car buyers who purchased a vehicle in

the last six months and found that 69

percent of consumers said social media

sites helped their vehicle purchase

decision and 68 percent of car shoppers

said dealership reviews impacted

which dealership they visited when

shopping for a vehicle. Fifty percent said

UHYLHZV�DI¿UPHG�WKHLU�RULJLQDO�FKRLFH�RI�dealership, while 18 percent said they

either selected a dealership based on the

reviews or changed their choice after

reading reviews on multiple dealerships.

The dealership audit, which included

600 automotive retailers around the

nation, compared engagement levels

from 300 dealerships that managed their

VRFLDO�PHGLD�PDUNHWLQJ�LQ�KRXVH�ZLWK�300 that used a vendor to manage their

social media sites and online reputation.

It showed 90 percent of those handling

LW�LQ�KRXVH�GLG�QRW�UHVSRQG�WR�QHJDWLYH�

online reviews, and 95 percent did not

respond to positive reviews.

In addition, 27 percent of dealers

PDQDJLQJ�VRFLDO�PHGLD�LQ�KRXVH�XWLOL]HG�“crowd sourcing” techniques, compared

to 87 percent of those with a social

media partner, and dealers using outside

vendors had more than double the

number of followers on the top two social

media sites.

³7KLV�JURXQG�EUHDNLQJ�VWXG\�KLJKOLJKWV�the importance of social networks

and review sites in the car buying

SURFHVV�´�'LJLWDO�$LU�6WULNH�FR�IRXQGHU�Alexi Venneri said. “Dealers who work

with a social media partner can gain a

VLJQL¿FDQW�DGYDQWDJH�IURP�LQFUHDVHV�in consumer engagement and related

ZHEVLWH�WUDI¿F�´For more information, visit www.

digitalairstrike.com or www.facebook.

com/digitalairstrike.

STUDY: Most Car Buyers Use Social Media

V I S I T W W W. D I G I TA L A I R S T R I K E . C O M O R W W W. FAC E B O O K . C O M / D I G I TA L A I R S T R I K E .

CO_0712.indd 21 6/21/12 3:03 PM


22


In-House Service Department: Cons2Q�WKH�ÀLS�VLGH��EHIRUH�KLULQJ�WKDW�

service manager or mechanic and VWDUWLQJ�D�VHUYLFH�GHSDUWPHQW��%+3+�dealers need to consider the nuts and EROWV�DQG�FRVWV�WKDW�FDQ�PDNH�DQ�LQ�KRXVH�RSHUDWLRQ�WKH�ZURQJ�FKRLFH�±�DW�OHDVW�IRU�WKH�PRPHQW�

Chilgreen and Rose, as well as many GHDOHUV�ZKR�KDYH�RSHUDWHG�LQ�KRXVH�IDFLOLWLHV��VWUHVVHG�D�FDUHIXO�H[DPLQDWLRQ�RI�DUHDV�VXFK�DV�FRVW�YV��SUR¿W��OLDELOLW\�DQG�RWKHU�OHJDO�H[SHQVHV��DQG�VWDWH�UHJXODWLRQV�EHIRUH�RSHQLQJ�D�VHUYLFH�GHSDUWPHQW�³7KHUH�DUH�WZR�VFKRROV�RI�WKRXJKW�ZKHQ�

it comes to repairs that we discuss a lot LQ�RXU�GHDOHU��JURXSV�´�*RVVHOLQ�VDLG��³6HQG�WKH�ZRUN�RXW�DQG�HOLPLQDWH�WKH�H[SHQVH�RI�WKLQJV�OLNH�ZRUNPDQ¶V�FRPS��RU�NHHS�LW�LQ�KRXVH�DQG�NHHS�D�EHWWHU�H\H�RQ�WKLQJV��<RX�KDYH�WR�GHFLGH�ZKLFK�ZRUNV�EHVW�IRU�\RX�´&RVW�YV��SUR¿W� Rose said at Global 7UDLQLQJ�6ROXWLRQV��KH�VLWV�GRZQ�ZLWK�dealers considering the addition of VHUYLFH�DQG�DVNV�WKHP�WR�FRQVLGHU�D�IHZ�¿QDQFLDO�IDFWV�³'R�WKH\�KDYH�DQ�DGHTXDWH�QXPEHU�RI�

DFFRXQWV�LQ�SODFH"´�KH�VDLG��³'R�WKH\�KDYH�the ability to recruit a master mechanic DQG�WKH�ULJKW�QXPEHU�RI�SHRSOH�WR�ZRUN"�Without the right number of employees, \RX�DUH�JRLQJ�WR�ORVH�PRQH\�ULJKW�DZD\�³'R�WKH\�KDYH�DQ�DSSURSULDWH�IDFLOLW\�

RU�ZLOO�WKH\�KDYH�WR�UHQW�RQH"�+RZ�PXFK�will they have to spend on equipment ±�ERWK�PHFKDQLFDO�DQG�WKLQJV�OLNH�QHZ�computer programs to operate this end of the business, as well as insurance and RWKHU�IHHV"�0DQ\�WLPHV�D�GHDOHU�ZLOO�WKLQN��µ,�FDQ�VDYH��SHUFHQW�E\�EULQJLQJ�WKLV�LQ�KRXVH�¶�EXW�WKH\�GRQ¶W�IDFWRU�LQ�DOO�WKH�costs they will incur and they either don’t EUHDN�HYHQ�RU�ORVH�PRQH\�E\�RIIHULQJ�VHUYLFH��6RPHWLPHV�LW�PDNHV�VHQVH��EXW�other times, at this point anyway, it doesn’t PDNH�VHQVH�´

Liability and other expenses: Depending on the state in which your dealership is located, you also need to H[DPLQH�DOO�OLDELOLW\�DQG�RWKHU�OHJDO�DQG�UHJXODWRU\�LVVXHV�WKDW�PLJKW�EH�LQYROYHG��

Certain states carry more restrictions WKDQ�RWKHUV�DQG�SRVVLEO\�PDNH�LQ�KRXVH�VHUYLFLQJ�RI�YHKLFOHV�YHU\�FRVW�SURKLELWLYH��In addition, some states require auto VHUYLFH�IDFLOLWLHV�WR�EH�OLFHQVHG�$OZD\V�FKHFN�\RXU�ORFDO�ODZV�DQG�

UHJXODWLRQV�EHIRUH�EHJLQQLQJ�D�VHUYLFH�UHSDLU�RSHUDWLRQ�³6RPH�SODFHV�KDYH�PXFK�KLJKHU�

insurance costs and regulations dealers KDYH�WR�IROORZ�´�&KLOJUHHQ�VDLG��³)RU�H[DPSOH��ZKHUH�,�OLYH��LQ�0DLQH��WKHUH�is a very high fee for the handling and GLVSRVLQJ�RI�ZDVWH�RLO�SURSHUO\��,I�\RX�don’t do it right and have the right machinery to do it, you set yourself up for ODZVXLWV�DQG�¿QHV�´

Other considerations that must be made LQFOXGH�PDNLQJ�VXUH�DOO�HTXLSPHQW�LV�DSSURYHG�E\�WKH�2FFXSDWLRQDO�6DIHW\�DQG�+HDOWK�$GPLQLVWUDWLRQ��26+$��DQG�WKDW�you have appropriate insurance in place in case an accident happens in the shop or DIWHU�D�UHSDLU�LV�PDGH�³$OO�UHSDLUV�WKDW�DUH�PDGH�WR�FULWLFDO�

SDUWV�VXFK�DV�EUDNHV�QHHG�H[WUD�DWWHQWLRQ�´�&KLOJUHHQ��VDLG��³7KH�SRWHQWLDO�IRU�OLDELOLW\�LV�YHU\�KLJK�LQ�WKHVH�DUHDV�IRU�%X\�+HUH�3D\�+HUH�GHDOHUV��7KHVH�LVVXHV�FDQ�also vary from state to state so it is very important for dealers to understand their RZQ�VWDWH�ODZV�DQG�UHJXODWLRQV�´

Offering Service – But Outsourcing It

If the costs, regulations or other issues DUH�WRR�SURKLELWLYH�WR�RSHQ�DQ�LQ�KRXVH�service department, but you want to offer quality service, partnering with good outside vendors can be the answer for some %+3+�GHDOHUV��:KHQ�$OOHQ�VWDUWHG�KLV�EXVLQHVV��

\HDUV�DJR��KH�RIIHUHG�LQ�KRXVH�VHUYLFH��mainly because other dealers in his area ZHUH�GRLQJ�LW��$IWHU�WKUHH�\HDUV�RI�GHDOLQJ�with internal problems, he decided to FORVH�WKH�LQ�KRXVH�IDFLOLW\�DQG�EHJDQ�WR�RXWVRXUFH�KLV�UHSDLU�ZRUN��$IWHU�VRPH�investigation into local facilities, he FRQWUDFWHG�ZLWK�VHYHUDO�ZKR�QRZ�ZRUN�ZLWK�KLV�GHDOHUVKLS�³,�JRW�RXW�LQWR�WKH�FRPPXQLW\�DQG�ZHQW�

LQ�DQG�WDONHG�WR�SHRSOH�DW�VHYHUDO�GLIIHUHQW�UHSDLU�IDFLOLWLHV�´�KH�VDLG��³,I�WKH\�ZHUH�

a quality shop, I negotiated an hourly rate with them and I never promise any DPRXQW�RI�ZRUN��,I�WKH�TXDOLW\�LV�WKHUH�DQG�WKH�SULFH�LV�ULJKW��,�VHQG�WKHP�PRUH�ZRUN��,I�QRW��,�VWRS��,�WU\�WR�NHHS�DERXW��WR��VKRSV�RQ�WKH�OLVW�DW�DQ\�WLPH��7KH\�NQRZ�,�ZLOO�XVH�RWKHUV�DV�ZHOO��VR�WKH\�NQRZ�WKH\�have to do what they promise or we will go VRPHZKHUH�HOVH�´$OWKRXJK�KLV�FXVWRPHUV�NQRZ�WKH�

repairs are outsourced, Allen said they don’t mind because he still maintains control of the process and the customer GURSV�RII�DQG�SLFNV�XS�WKH�FDU�DW�KLV�GHDOHUVKLS�³7KH\�GRQ¶W�UHDOO\�FDUH�DV�ORQJ�DV�WKH\�

JHW�WKHLU�FDU�¿[HG�ULJKW�DQG�DW�D�UHDVRQDEOH�SULFH�´�KH�VDLG��³7KH�RQO\�GLIIHUHQFH�PLJKW�EH�WKDW�WKH\�FDQ¶W�GULYH�LQ�6DWXUGD\�PRUQLQJ�ZLWK�D�SUREOHP�DQG�H[SHFW�LW�WR�EH�UHSDLUHG�ULJKW�DZD\�±�WKH\�ZLOO�KDYH�WR�FRPH�EDFN�0RQGD\��%XW�,�WKLQN�ZH�DUH�JRRG�DERXW�OHWWLQJ�WKHP�NQRZ�WKDW�XS�IURQW�DQG�LW�KDVQ¶W�UHDOO\�EHHQ�DQ�LVVXH�´$P\�(YHUVROH��RZQHU�RI�6RMRXUQHU�

$XWRSOH[�LQ�&U\VWDO�6SULQJV��0LVV��DOVR�XVHV�DQ�RXWVLGH�VHUYLFH�IDFLOLW\��)RU�KHU�small dealership, she appreciates another business coming alongside her to share DQ\�OLDELOLW\�LVVXHV�WKDW�PLJKW�DULVH�³,W�JLYHV�PH�PRUH�FRQ¿GHQFH�WKDW�

before I sell a car to someone, it was not MXVW�XV�WKDW�ORRNHG�LW�RYHU�EXW�DQRWKHU��LQGHSHQGHQW�FRPSDQ\�´�VKH�VDLG��³,W�allows us to bring someone else in to VKRXOGHU�DQ\�EXUGHQV�ZLWK�XV�DQG�WDNH�FDUH�RI�RXU�FXVWRPHUV�´

Whether service and repairs are made LQ�KRXVH�RU�DUH�RXWVRXUFHG��WKH\�DUH�SDUW�RI�GRLQJ�EXVLQHVV�IRU�WKH�%X\�+HUH�3D\�+HUH�GHDOHU��DQG�¿JXULQJ�RXW�WKH�PRVW�FRVW�HIIHFWLYH��FXVWRPHU�IULHQGO\��KDVVOH�free way of accomplishing them is crucial IRU�WKH�VXFFHVV�RI�WKH�GHDOHUVKLS�7DONLQJ�WR�RWKHU�GHDOHUV�FDQ�KHOS�SRLQW�

\RX�LQ�WKH�ULJKW�GLUHFWLRQ�³/HDUQ�IURP�RWKHUV¶�H[SHULHQFH�´�

*RVVHOLQ�VDLG��³$W�GHDOHU��JURXSV��ZH�WDON�DERXW�LVVXHV�OLNH�WKLV�DQG�KHOS�HDFK�RWKHU�¿QG�ZD\V�WR�PDNH�VHUYLFH�DQG�RWKHU�FKDOOHQJLQJ�DQG�FKDQJLQJ�LVVXHV�ZRUN�EHVW�LQ�RXU�RZQ�VLWXDWLRQ�´�

BY LAURIE PONDER

C O N T I N U E D F RO M PAG E 2 0

CO_0712.indd 22 6/21/12 12:27 PM

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24


Quality Dealer of the Year Award

Colorado Independent Automobile Dealer Association

Official Nominating Form

Please complete this nomination form in as much detail and with as much documentation as possible. Submit all the information requested. Upon completion, return this form to the Executive Director of CIADA. Thank you for your support of this award.

Name of sponsor if any: ___________________________________________________________________ Full name of nominee: ____________________________________________________________________ Name of Dealership:______________________________________________________________________ Title of Dealership:_______________________________________________________________________ Address of Dealership:____________________________________________________________________ Business telephone #:_________________________ Home telephone #: _______________________ Dealer’s home address:____________________________________________________________________

BIOGRAPHICAL INFORMATION (Please enclose photograph – 3”x5’ or larger, may be a family photograph) Dealer’s age:_______ Date & place of birth:__________________________________________________________________________ Educational history:_______________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Family: Married:_____ Widowed:______ Divorced:______ Single:______ Spouse’s Name: ______________________________________________________ Children (name & ages): _______________________________________________ ___________________________________________________________________ AUTOMOTIVE CAREER When, where, and how did you started in the automotive business: _________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Special facts of interest relating to your automotive career:________________________________________________________________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ DEALERSHIP HISTORY (Please enclose photograph of lot – 3” x 5” or larger) Your dealership founded:___________________________________________________ History:________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ Are you currently active in your dealership?_______ Full Time ______ Part time _____ If more than one dealership is involved, please attach same information for all dealerships. THE CANDIDATE AS A DEALER Number of used cars sold last year:__________________________________________________ Physical plant (include improvements): _______________________________________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________

CO_0712.indd 24 6/21/12 3:04 PM


25


CIADA is nothing new. It 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 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.

RICH TRADITION

71 Years of Helping Independent Dealers Succeed !

Colorado Independent Automobile Dealers Association

Get Both CIADA and NIADA Memberships for only $225 Join Now And Receive All Of The Following Benefits Plus Many More. . .

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

CIADA.org

CARFAX has launched its newest wave of television ads as part of the national “Show Me the CARFAX” campaign.

Starring again in all of the ads to deliver the message of smarter used car shopping is the knowledgeable Car Fox. The spots, which humorously depict people buying used cars from various types of sellers, illustrate how CARFAX vehicle history reports can build FRQ¿GHQFH�LQ�WKH�FDUV�SHRSOH�EX\�DV�well as the dealers from whom they’re buying. Car Fox issues a friendly reminder for consumers to make an educated buying decision from a trusted seller by saying, “Show Me the CARFAX.”

“Smart used car shoppers make good buying decisions by FRQVXOWLQJ�WKH�H[SHUWV�¿UVW�´�&$5)$;�communications director Larry Gamache said. “An inspection by D�TXDOL¿HG�PHFKDQLF�DQG�D�WUXVWHG�CARFAX Report is the best one-two punch.

“We’ve watched Car Fox help ERRVW�WUDI¿F�DW�GHDOHUVKLSV�DQG�EXLOG�FRQ¿GHQFH�ZLWK�FRQVXPHUV�everywhere since he became part of the ‘Show Me the CARFAX’ campaign. We fully expect that success to increase with these latest ads.”

The new ads can be viewed on the CARFAX channel on YouTube or the company’s website, carfax.com.

“The ads featuring Car Fox have been wildly successful,” said Zevin Auerbach, a creative partner at Zimmerman Advertising. “The new series will give fans something to really look forward to. In essence, they’re mini-TV shows with a car dealer as a recurring character. The imaginative dealer is constantly trying to outfox Car Fox with a series of gimmicks like a ‘seal of approval,’ which is actually a live sea lion.

“Of course at the end, the customer says ‘Show me the CARFAX,’ as our dealer makes one last humorous attempt to provide an alternative.”

Carfax gives free marketing materials featuring Car Fox to GHDOHUV��LQFOXGLQJ�DQ�LQÀDWDEOH�&DU�Fox for Carfax Advantage Dealers.

CARFAX Introduces Its Latest TV Ads

V I S I T CA R FA X . C O M

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

When I attend industry events, I enjoy PHHWLQJ�GHDOHUV�DQG�KHDULQJ�WKHLU�WDNHV� on current challenges and trends facing WKH�LQGXVWU\�

One topic that has come up recently is OHDVLQJ��,�KDYH�KHDUG�D�QXPEHU�RI�GHDOHUV�FRPPHQW�RQ�KRZ�WKH\�ZRXOG�OLNH�WR�H[SDQG�WKHLU�GHDOHUVKLS�DQG�VWDUW�OHDVLQJ�YHKLFOHV��:KLOH�WKDW�PLJKW�VRXQG�OLNH�D�QDWXUDO�step in growing a business, dealers must consider the differences between selling DQG�OHDVLQJ�7R�EH�FOHDU��E\�³OHDVH�´�,�PHDQ�D�FRQWUDFW�

allowing a customer to use your vehicle for D�SHULRG�RI�WLPH��PLQLPXP��IRXU�PRQWKV��At the end of the lease, the customer returns the vehicle and doesn’t owe you any more money as long as the vehicle has only reasonable wear and tear and was driven no PRUH�WKDQ�WKH�DJUHHG�PLOHDJH�

If there is an option to purchase, the option price bears some relation to the YHKLFOH¶V�H[SHFWHG�PDUNHW�YDOXH�DW�WKH�WLPH�WKH�RSWLRQ�LV�H[HUFLVHG��,Q�RWKHU�ZRUGV��WKH�lessee doesn’t have the option to purchase for $1 because that would really be a sale, GLVJXLVHG�DV�D�OHDVH��

Look Before You LeaseAdding leasing to an independent

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DUHDV�WR�FRQVLGHU�ZKHQ�PDNLQJ�\RXU�GHFLVLRQ�Licensing:�0DNH�VXUH�\RXU�OLFHQVH�IRU�

selling vehicles also allows you to lease YHKLFOHV��<RXU�FXUUHQW�OLFHQVH�PLJKW�QRW�EH�EURDG�HQRXJK�WR�DXWKRUL]H�OHDVLQJ��

Insurance: When you sell a car, the title LV�WUDQVIHUUHG�WR�WKH�EX\HU��<RX�IRFXV�RQ�UHFHLYLQJ�WLPHO\�SD\PHQWV�DQG�FRQ¿UPLQJ�WKH�EX\HU�KDV�VXI¿FLHQW�LQVXUDQFH�WR�SURWHFW�\RXU�VHFXULW\�LQWHUHVW�LQ�WKH�YHKLFOH��<RX�SUREDEO\�have property and liability insurance to SURWHFW�\RXU�LQYHQWRU\�DQG�VDOHV��

However, when a dealer leases a car, he VWLOO�RZQV�LW��,I�WKH�YHKLFOH�LV�LQYROYHG�LQ�DQ�accident, you might be subject to liability as WKH�RZQHU��$V�SDUW�RI�UHVHDUFKLQJ�D�OHDVLQJ�operation, meet with your legal counsel and LQVXUDQFH�FDUULHU�WR�PDNH�VXUH�\RX�SURWHFW�DJDLQVW�OLDELOLW\�H[SRVXUH�ZLWK�DSSURSULDWH�LQVXUDQFH�FRYHUDJH�

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What if gas prices rise drastically and the YHKLFOH�LV�D�JDV�JX]]OHU"�7KDW�FRXOG�LPSDFW�WKH�PDUNHW�YDOXH�DW�WKH�HQG�RI�WKH�OHDVH��UHVLGXDO�YDOXH��,Q�PRVW�FRQVXPHU�OHDVHV��WKH�GHDOHU�LV�RQ�WKH�KRRN�LI�WKH�UHVLGXDO�YDOXH�LV�OHVV�WKDQ�SUHGLFWHG��<RX�ZRQ¶W�UHDOO\�NQRZ�LI�\RX¶UH�PDNLQJ�

PRQH\�RQ�D�OHDVH�XQWLO�\RX�¿QG�RXW�KRZ�ZHOO�\RX�SUHGLFWHG�WKH�UHVLGXDO�YDOXH��<RX�might be two or three years into the lease SURJUDP�EHIRUH�\RX�UHDOL]H�\RX¶YH�VHW�\RXU�UHVLGXDO�YDOXHV�WRR�KLJK�±�DQG�E\�WKHQ�LW¶V�WRR�ODWH�

Documentation and disclosures: <RX�FDQ¶W�MXVW�PRGLI\�D�UHWDLO�VDOHV�FRQWUDFW�WR�PDNH�LW�D�OHDVH��,I�\RX�DUH�SODQQLQJ�WR�LQFOXGH�OHDVLQJ��\RX�PXVW�PDNH�VXUH�

your documents meet state and federal FRQVXPHU�OHDVH�UHTXLUHPHQWV�

The federal Consumer Leasing Act and its implementing Regulation M are the lease disclosure equivalents of the Truth in Lending Act and Regulation Z for FRQVXPHU�OHQGLQJ��5HJ�0�UHTXLUHV�GHDOHUV�WR�SURYLGH�D�JUHDW�GHDO�RI�VSHFL¿F�SULFLQJ�LQIRUPDWLRQ�LQ�OHDVH�FRQWUDFWV��0DQ\�VWDWHV�require additional disclosures and consumer SURWHFWLRQV��$V�SDUW�RI�\RXU�OHDVLQJ�VWDUWXS��you will need to create a unique document set RI�GLVFORVXUHV�DQG�FRQWUDFWV��

Taxes: In a lease you retain ownership, VR�\RX�PLJKW�UROO�\RXU�VDOHV�WD[HV�WR�purchase the vehicle into your costs and lease calculations, but you might also need WR�FROOHFW�XVH�RU�RWKHU�WD[HV�RQ�WKH�SD\PHQWV�WKURXJKRXW�WKH�OHDVH�WHUP��&RQWDFW�\RXU�DFFRXQWDQW�DQG�RU�WKH�VWDWH�WR�XQGHUVWDQG�\RXU�WD[�REOLJDWLRQV�DQG�KRZ�WKH\�GLIIHU�IRU�OHDVHV��

Collections: ,I�D�EX\HU�GRHVQ¶W�PDNH�timely retail contract payments, you can UHSRVVHVV�WKH�FDU��)HDU�RI�ORVLQJ�WKH�FDU�FDQ�KHOS�PRWLYDWH�D�EX\HU�LQWR�PDNLQJ�SDVW�GXH�SD\PHQWV��

In a lease, the lessee doesn’t own the car DQG�PD\�H[SHFW�WR�UHWXUQ�LW�DQG�ZDON�DZD\�DW�WKH�HQG��7KDW�PLJKW�PDNH�LW�D�OLWWOH�HDVLHU�IRU�the lessee to emotionally handle repossession, but it might mean the lessee isn’t afraid of having the car repossessed and isn’t as PRWLYDWHG�WR�PDNH�SDVW�GXH�SD\PHQWV��$V�ZLWK�D�¿QDQFHG�VDOH��RQFH�\RX�UHSRVVHVV�D�vehicle, the lessee has even less motivation to SD\�DQ\�EDODQFH�VWLOO�GXH��

If a car is returned with wear or damage beyond what’s agreed on in the lease, it can EH�GLI¿FXOW�WR�FROOHFW�PRQH\�WR�FRYHU�WKRVH�FRVWV��<RX�FDQ�XVH�WKH�OHVVHH¶V�GDPDJH�GHSRVLW��VR�PDNH�VXUH�\RX�VHW�LW�DW�D�SUDFWLFDO�DPRXQW�±�LW�PLJKW�EH�WKH�RQO\�PRQH\�\RX�HQG�XS�UHFRYHULQJ�IRU�H[FHVV�ZHDU�DQG�WHDU��

These are only some issues to consider ZKHQ�VWDUWLQJ�D�OHDVH�SURJUDP��<RX�FDQ�identify more by simply reading a motor YHKLFOH�OHDVH�FRQWUDFW��

The differences between selling and leasing DUH�GUDPDWLF�DQG�FDQ¶W�EH�RYHUORRNHG��<RXU�operations and compliance can be affected by the type of transaction, the vehicle and the state in which you are doing EXVLQHVV��

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

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CIADA July/August 2012