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ALSO Mobile Commerce Takes Center StagePLUS The Art and Science of Used Auto Inventory

CRAIGSLIST 101: BEST PRACTICES

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PAIDDALLAS, TEXASPermit No. 2079

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FOR INFORMATION ON HOW TO BECOME A MEMBER PLEASE CONTACT CINDY SIRKEL(800) 682-3837 • [email protected] VISIT US ONLINE AT WWW.NIADA.COM/MEMBERSHIP.PHP

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NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] NEW YORK DRIVING FORCE IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS AS-SOCIATION SERVICES CORPORATION, 2521 BROWN BLVD., ARLINGTON, TX 76006-5203; PHONE 817-640-3838.PERIODI-CALS POSTAGE PAID AT DALLAS, TX AND AT ADDITIONAL OF-FICES. 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 NEW YORK DRIVING FORCE OR THE NATIONAL INDEPENDENT AUTOMO-BILE DEALERS ASSOCIATION. LIKEWISE, THE APPEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT (C) 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.

STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Mike Harbour • [email protected] MGR. Jacob Kerns • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

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MAGAZINECONTENTS

ADVERTISERSINDEXADESA.....................................Inside Front CoverAutoTrader.com ..................................Back CoverChase .............................................................11Manheim.com ..........................Inside Back CoverSmart Auction ....................................................7STARS GPS .......................................................9Western General / Protective ........................... 5

8 The Art and Science of Used Auto Inventory 10 Mobile Commerce Takes Center Stage 12 Craigslist 101: Best Practices

Manheim, the world’s largest provider of vehicle remarketing services, cares about its employees, the environment and the communities it serves. From fundrais-ing drives and tutoring kids after school to supporting long-term conservation efforts, Manheim and its employees are dedicated to giving back to their com-munities and know independent vehicle dealerships across the country share in this commitment.

For the first time this year, Manheim is recognizing and honoring those dealer-ships by awarding the 2011 National Manheim Community Service Award at the 65th NIADA Annual Convention and Expo. For more information, con-tact Georgia Brown, NIADA director of education, at 817-640-3838 or download the nomination form at niada.com (click on the Manheim Dealers Edge link under the Services tab).

NIADA/Manheim Community Service Award

No dealer should be without the NADA Official Used Car Guide. These must-have guides feature pocket-size portability for quick and easy car-side appraisals. Additionally, NADA Online gives you 24/7 online access to used vehicle values, at your desk and out at the auction on your smart phone, while NADA e-Valuator for Dealers software combines more than 19 years of NADA values on your PC and offers an inventory feature.

NIADA offers member subscription discounts for the NADA Official Used Car Guide, as well as NADA Online and NADA e-Valuator for Dealers.

Contact your state association or NIADA at 800-682-3837 for your discounted subscriptions or complete the online ordering form at www.nada.com/niada. The promotional code for ordering discounted NADA products is NIADA199. This code will need to be entered during checkout to receive the discount.

Discount code available for NADA Guide

NIAD

A199

Mark Your Calendars for the 2011 National Tire Safety Week!RMA’s tenth annual National Tire Safety Week will be held June 5-11.

The annual event is an initiative of the RMA’s “Be Tire Smart – Play Your PART” program, a year-round effort designed to help drivers learn the simple steps they can take to ensure that their tires are in good working condition. RMA is the national trade association for tire manufacturers.

Tire manufacturers and retailers nationwide will work to educate motorists about prop-er tire care and maintenance. RMA provides tire retailers, auto dealers and automotive repair shops with free “Be Tire Smart” brochures and other materials. Many participating retail outlets use the opportunity to promote tire care through advertising, promotions, free tire pressure checks and conducting media outreach.

More than 22,000 tire and auto service outlets participated in the 2010 National Tire Safety Week. RMA released a survey of more than 5,400 vehicles that showed half with at least one under inflated tire. Nearly 20 percent of vehicles had at least one tire under inflated by 8 pounds per square inch (psi). Under inflated tires waste fuel, risk safety and cause tires to wear out faster.

Tire and auto retailers who are interested in obtaining free RMA materials for National Tire Safety Week can order them online at www.betiresmart.org. Those who have partici-pated in the event before can expect to receive materials again this year.

vAuto’s proprietary stocking module can now allow its customers to quickly and ef-ficiently source used vehicles at Manheim auctions as well as access Manheim run lists.

“Partnering with Manheim is the first of many exciting integrations with our new Au-toTrader.com relationship,” said Keith Jezek, vAuto president, in an early February an-nouncement. “Combining vAuto’s stocking tool with Manheim’s comprehensive list of vehicles is a huge win for our customers. Manheim is a key player in facilitating the buying and selling of used vehicles for automotive dealers, providing vAuto’s customers the best resources to stock vehicles.”

vAuto’s stocking module allows dealers to make their decisions for purchasing vehicles based on what the customers are actually buying in their own marketplace at that exact time, down to the level of year, make, model, trim and equipment configuration. In the past, dealers had to rely on historical data, not current trends, when making stocking deci-sions.

vAuto Helps Dealers Find Manheim Inventory

AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the United States with over 4,350 stores across 48 states, the District of Columbia and Puerto Rico. NIADA members have access to AutoZone’s “hot-shot” delivery program including discounts on more than 750,000 product level SKUs in over 70 distinct product categories.

Product Discounts for NIADA Members

For more information, viewwww.niada.com/dealers_edge.php

NIAD

A199

vAuto Helps Dealers Find Manheim Inventory


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NIADA members can learn how to leverage social media to garner brand recognition, build consumer confidence and drive new business opportunities during a social media webinar presented by Liquid Motors and NIADA in April. Learn how to leverage social media to build consumer confidence and drive new business opportunities quickly and easily!

Social media continues to be the fastest growing segment on the Internet. As of September 2010, Facebook has over 135 million active users in the U.S. and each user averages seven hours per month on the site, more than double that of any other site on the Internet.

The seminar, set for April 12 at 10 a.m. Central, will present the following:l GETTING STARTED IN SOCIAL MEDIABuilding a Social Media Marketing Plan - Setting Budget, Goals, Objectives and Guidelines: We’ll cover how to build an effective social media marketing plan Reputation Management: We will help NIADA members understand why this is critical and how to simply and effectively make sure that consumer positive experiences are portrayed and how to respond to negative postingsBuilding a Presence: We will cover how to secure social media accounts and how to configure the accounts for the most effective brand presentation and user experience

l LEVERAGING SOCIAL MEDIA TO GROW YOUR DEALERSHIPBuild Followers and Fans: We’ll discuss how to effectively grow your followers and fans including the dos and don’ts for posting content to social mediaLeveraging Check-ins: We’ll help members understand how to leverage new location based services to market their dealership on social media sites

Dealers also will learn the key metrics to use to track the progress and success of their social media efforts and how to utilize technology to simplify and improve results tracking.

LIQUID MOTORS, NIADA TO PRESENT SOCIAL MEDIA WEBINAR

WEB

INA

RTO REGISTER, CALL 877-573-6877 OR SEND A REQUEST TO [email protected].

IRS Offers Helpful Auto Dealer Tax Tips

Confused about what the Internal Revenue Service requires from dealers at tax time? Don’t worry, as the IRS has an entire section of its website dedicated to automotive businesses. We’ve included a few tips here.

As most dealers already know, the IRS requires each person engaged in a trade or business who, in the course of conducting that trade or business, receives more than $10,000 in cash in one transaction or in two or more related transactions must file a Form 8300. The agency recommends filers should keep a copy of each Form 8300 for five years from the filing date.

Form 8300s should be filed by the 15th day after the date the cash was received. The form should be filed on the next business day if that date falls on a Saturday, Sunday or legal holiday. The filer must give a written statement to each person named on a required Form 8300 on or before January 31 of the year following the calendar year in which the cash is received and a copy of this statement kept for your records.

Changing your accounting method? That generally requires IRS approval. To get approval, you must file Form 3115, Application for Change in Accounting Method. A change in your accounting method includes a change not only in your overall system of accounting but also in the treatment of any material item.

If you finance the purchase of your property, instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale. It is not an installment sale if the buyer borrows the money from a third party and then pays you the total selling price.

For more information, visit http://www.irs.gov/businesses/small/industries/article/0,,id=98978,00.html.


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Building a profitable used auto inven-tory requires having the right informa-tion and the talent to know how to use it. Over the years, I’ve been blessed with tremendous mentors who have provided me with valuable insights, one of which is managing a used vehicle de-partment is both a science and an art. While there are no cookie-cutter solutions applicable to every scenario, there are tried and true blocking and tackling strategies that can help any department maximize results.

When it comes to proper inventory mix, there are several ways a dealership

can study information to improve volume, gross and ROI. However, before the infor-mation can be broken down, the store must have the information. While this may seem obvious to some, I am routinely presented with departments that fail to accomplish this seemingly simple task.

Used car managers should be aware, at the very least, of the top-selling vehicles in their market by make, model, and year as well as the top-selling vehicles at their store. All too often when I ask used auto managers to name the three top-selling used vehicles in their markets, they look at me like a deer in headlights. Or, they automatically respond “Honda Accord” or “Toyota Camry.” That’s great! What year? What trim level? What mileage band? How

many of these have been sold at your store in the last 90 days? What was the average age when it was sold?

There are several tools available to help managers accumulate this data, such as Auto Exchange for internal data and Cross Sell for external data. Once this data is col-lected, it is imperative management consis-tently identify which vehicles sell in their market (internal and external). That’s the science part of the equation; it’s not espe-cially difficult to identify commodity type vehicles and, if you’re willing to travel or pay, to procure them. Further breakdown of historical internal and external trends is, however, necessary. Specifically, it would be beneficial to track sales volume, aging, and gross profit for specific COS bands. These could be broken down as follows:

$0 – $5000$5,001 – $10,000$10,001 – $12,500$12,501 – $15,000$15,000-plus

The used auto dealer should be aware of and actively track each of the above cat-egories for each price band in used cars, trucks, SUVs, and vans, comparing the current stocking mix to what has yielded the greatest success. The categories can be broken down further into import/domes-tic categories as well, if needed. This in-formation, coupled with knowledge from external tools, is used to direct buying spe-cific inventory at specific price points to generate specific results.

The art of used vehicle inventory comes from identifying and procuring vehicles that put your store ahead of the curve. For example, a few years back fuel prices spiked and, as a result, highly economic, smaller pre-owned vehicles were sudden-ly at a premium, while large pickups and SUVs could be bought for a dime a dozen. The market was quickly flooded with these gas guzzlers, but few people had the vision or foresight to accumulate them. Those who did were those who had the knowl-edge and experience to understand the ebb and flow of the used car market, so

they loaded up on these vehicles at very cheap prices. It’s not difficult to guess what happened to their profits when the price of fuel went back down.

Recognition of these opportunities is not always easy; often it comes from experience. I believe we are involved in one as I type this column. Thanks to the Cash for Clunkers program, new car inventories are generally low; there are fewer trades in most used inventories and the price of vehicles at auction has gotten higher. While this could mean several different things depending on your market, I would think the poten-tial for increased gross profit, even on vehicles more traditionally thought of as commodity cars, is greater than ever.

Hopefully, you’re tracking the trade capture rate. A normal benchmark for capturing trades is 55 percent of ap-praisals. Because of today’s market con-ditions, I would encourage all managers to aggressively get involved with cus-tomers and inquire about their desire to trade their vehicle, as well as ensure your store is appraising every vehicle possible. Further, I believe it’s impera-tive to improve the appraisal capture rate by 10 percent or more. Used autos are at a premium and the extra money put into a trade has never been a better investment.

This type of forward thinking in-volves risk some dealers simply may not be willing to accept. Those who do so are more frequently ahead of the used vehicle game. The science of used inven-tory can be resolved by accumulating information, breaking it down (all the way to COS bands, if you really want to be detailed) and buying and trading aggressively according to trends. The art requires experience and guts.

B I L L M O K R Y I S A S A L E S A N D F & I S P E C I A L I S T F O R S E R V I C E G R O U P, A N I N S U R A N C E A N D F I N A N C I A L S E R -V I C E S C O M PA N Y T H A T P R O V I D E S I N -C O M E D E V E L O P M E N T T R A I N I N G A N D S E R V I C I N G S O L U T I O N S T O A U T O D E A L E R S H I P S . H I S M A N Y Y E A R S O F D E A L E R S H I P E X P E R I E N C E I N C L U D E S E V E R A L A S G E N E R A L M A N A G E R O F A S U C C E S S F U L U S E D C A R O P -E R A T I O N . H E C A N B E R E A C H E D A T B M O K R Y @ S G I F S . C O M .

USED CAR MANAGERS SHOULD BE AWARE, AT

THE VERY LEAST, OF THE TOP-SELLING VEHICLES

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YEAR AS WELL AS THE TOP-SELLING VEHICLES

AT THEIR STORE

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One of the new keys to the success of your business is your smart phone. You can operate your dealership on-the-go, making fast, informed decisions that will ultimately improve your bottom line.

More than 440,000 mobile sites and over 500,000 mobile apps exist today, including a growing number of auto-industry related apps. It may seem daunting to integrate this emerging technology into your business, but these tools are a must-have for both acquisition and retail.

What are ‘mobile apps’ and how do they help dealers?

An app is a software application that helps people accomplish tasks faster. Among other things, an app can use the hard drive of the mobile device to store data for faster recall and operation, perform calculations, access hardware features such as camera and GPS – and all without an Internet connection.

At its core, the Internet revolution was about how technology harnessed the power of information to generate efficiencies, and this is exactly the opportunity mobile apps offer to dealerships today – providing information on-the-go and tying it all together to take action.

How can mobile apps streamline your business?

Mobile browser-based tools provide dealerships with more on-the-go visibility but lack a built-in ability to act in real-time on information organically across the dealership. But, just as a mobile app enables on-the-go stock trading, for example, an app such as eCarList’s ‘True Target Mobile’ allows dealerships to take a massive dataset and a complex, multi-step, -vendor and -personnel process and make it all work from a single handheld device.

The ‘True Target Mobile’ app gives dealerships mobile access to pricing data from multiple books, current data from top online marketplaces and the ability to filter, organize and view the data geographically for territory (including vehicle pricing from competitive dealerships). Other functions include VIN scans, taking/adding/removing photos, integrating Carfax Vehicle History Reports and sharing appraisals and pricing with other mobile devices.

Are there other benefits to going mobile?On the acquisition side, smart phones

provide access to information you need to stock your lot with cars that customers want. It’s no secret that the used car supply is decreasing due to rising demand, so the competition for quality units is getting tighter.

Think about the top concerns your customers have when shopping for a used car: previous damage, maintenance, ownership history, and of course, price. Tools like Carfax Vehicle History Reports are readily-available through various mobile devices to verify this important information and bid with confidence. Having your mobile device handy helps you tie it all together quickly and successfully acquire the right cars for your lot.

Today’s mobile devices provide access to information that brings transparency and process effi ciency to dealers. The possibilities mobile is opening up for our industry are truly extraordinary – and in the current economic climate, leveraging new and user-friendly technology is key to moving more cars and saving money in the process.

BY LEN CRITCHER AND LANCE VICKERYLen Critcher is CEO of eCarList, provider of award-winning inventory management and online marketing solutions that make it easy for dealerships to fully own and control the vehicle merchandising process through one unified platform. Lance Vickery is director of dealer business at Carfax and has spent more than 25 years in the auto industry.

Going Mobile in Your Dealership

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This past holiday season, surveys and statistics showed what many an-alysts and industry observers were thinking: mobile commerce is grow-ing by leaps and bounds, and every industry is in on the trend, including automotive.

In 2011, smartphones are forecasted to account for half of the mobile phone mar-ket, according to The Nielsen Co. On top of that, an ABI Research report says mo-bile online shopping will generate $119 billion in sales by 2015, accounting for 8 percent of the e-commerce market.

When car dealers make it easy for their business to be found through a mobile web browser, loyalty campaigns, marketing ini-tiatives, text promotions and sales can at-tract and retain customers.

What are consumers browsing with their smart phones? The same types of items they started browsing on computers: researching purchase decisions, cost com-parisons and finding the location of physi-cal items.

Recently, eBay reported a substantial in-crease in mobile traffic, where sales more than tripled in 2010 to near $2 billion in gross merchandise volume. Last year, ve-hicle purchases led all categories on eBay mobile applications in terms of GMV, while parts and accessories were number two in terms of the total number of items purchased.

Dealers know when they have a physi-cal lot, customers still come to kick the tires when the sales office is closed. Now, today’s consumer might still come to the lot, but he or she will also pull out a smart phone, check the hours of the dealership and research the same make and model for competitive pricing.

The same thing is happening even if the consumer doesn’t drive to a physical lot. A consumer may be in his garage working on

a car and need to find a part or accessory. Instead of going inside and turning on the computer, he’s browsing his smart phone to find the part, price and local availability.

Just as e-commerce has completely changed the way we do business, wireless devices and smartphones are again altering what we know about consumers’ purchas-ing behaviors. Seeing similarities in mobile commerce and e-commerce, auto dealers ask themselves a familiar question: would anyone really buy a car from their smart phone?

In 2010, more than $118 million in car and truck purchases were made via the eBay mobile application – more than 12,600 vehicles were sold. Parts were the second biggest category in mobile last year, with more than 911,722 parts purchased, and more than $60 million in sales.

For independent dealers, mobile ap-plications and mobile commerce are the must-have digital tools of 2011.

With smartphones capable of surfing, downloading apps and connecting with coworkers and friends in an instant, re-searching and shopping for vehicles, parts and services is a natural extension.

For example, a business traveler wait-ing at an airport may use that downtime to look for a needed part for his car or browse available vehicles for a new truck. If an independent dealer’s inventory is not readily available on a mobile app, chances are there’s an entire customer segment that may not see what’s for sale.

A recent ForeSee Results survey found 30 percent of consumers used a mobile phone to research products on the Inter-net, compared with 11 percent in 2009. Those making a purchase through a mo-bile phone increased from 2 percent in 2009 to 11 percent in 2010.

For example, Tilo Steurer, founder and owner of Eurocar, the West Coast’s largest

independent dealership of its kind, sells and buys vehicles and regularly uses eBay’s mobile app to buy cars, parts and accessories.

“I purchase anywhere from five to 10 cars every month, most of the time through the eBay mobile app,” Steurer said. He also uses the eBay mobile app to keep track of his business while not in the office.

With any form of sales – online, mo-bile or in-store – customers consider the credibility of the seller and business before making a purchase. Building that credibility takes consistent communica-tion, which is made easier when dealers can keep in touch through mobile and online sources.

“Communication is very important,

FOR DEALERS, HAVING PARTS, ACCESSORIES

AND VEHICLES AT A CONSUMER’S

FINGERTIPS IS AN IDEAL WAY TO EXTEND

MARKETING AND SALES WITHOUT A LOT OF DEVELOPMENT AND TECHNICAL EFFORT.

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especially when making an expensive online purchase such as a luxury car,” Steurer said. “With the eBay mobile app, I can respond more quickly to customer questions, which builds credibility and increases the opportunity for a sale.”

To accommodate this growing trend, eBay Motors is launching a mobile app that will provide a customizable buy-ing experience optimized for vehicles, parts and accessories, as well as unique social and community features for the enthusiast.

Features include VIN scanning and a virtual garage to give enthusiasts person-alized information. After searching for a vehicle, users can share it with friends and social networks or ask the seller a question. Users can create “car cards” for their vehicles which display photos and stats about the vehicle and can be used in searches for parts and accessories.

On the garage tab, consumers can in-put and store the vehicles they own or scan the VIN barcode with the iPhone’s camera to populate information. In the garage, car owners can create to-do list for vehicle projects, store custom parts searches and share the garage with their social network.

For dealers, having parts, accessories and vehicles at a consumer’s fingertips is an ideal way to extend marketing and sales without a lot of development and technical effort.

Mobile commerce is still in its infancy but is growing at a faster pace than e-commerce. With the Internet available wherever consumers are with their smart phones, it’s only a matter of time before mobile commerce becomes a dominant form of purchasing. Because of the similarities to e-commerce, consumers are quickly adopting m-commerce and expecting businesses to be on board.

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Our team at Manheim Consulting had the pleasure of interviewing NIADA President Anthony Underwood for a question and answer session discuss-ing the state of the used vehicle market from the perspective of independent dealers as we compiled the recently released, 16th annual Used Car Market Report (UCMR).

Underwood framed the challenges facing independent dealers in a way that confirmed what our data was telling us: independents are encountering higher prices for inventory at the wholesale level and finding fewer pre-owned vehicles in the marketplace.

In response, these dealers are focusing on sound inventory management practic-es, and using all available sales channels – including online – to source just the right inventory to meet their customers’ needs. We examined these and other trends in the UCMR, which is Manheim’s annual

analysis of the forces shaping the used auto industry. As part of the Manheim-NIADA Dealer’s Edge partnership, I’m happy to let you know you can download the entire report free of charge by taking a very brief survey at www.surveymonkey.com/s/manheim.

As a comprehensive analysis of the trends shaping the automotive industry, the 2011 UCMR contains much more valuable information pertaining to inde-pendent dealers, as well as chapters on other aspects of the industry, including rental, leasing, fleets, repossessions and salvage. I encourage NIADA members to download their free copy of the UCMR, and as always, please e-mail me any time with your questions.

Tom Webb is chief economist for Manheim Con-sulting. Contact him at [email protected], follow him via Twitter at www.twitter.com/TomWebb_Manheim and read his blog at www.manheimconsulting.typepad.com.

Independents Remain Profitable in Challenging Environment


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If eBay were free, would you adver-tise your inventory on it? This should be a no brainer! Craigslist and Ebay had equal amounts of unique visitors in the U.S. for the first time ever in May 2010, accord-ing to comScore data. Dealers who think Craigslist is not for them are missing the boat. It doesn’t matter if you’re selling dol-lar-cars or the high lines; customers of all ranges are going to the Craigslist market-place to search for vehicles!

A free site offers very little to no tech-nical support, which is why I believe a lot of dealers are missing out on huge oppor-tunities because they’re not educated on Craigslist and don’t have the right process in place to realize potential. Those who have discovered the power of Craigslist ad-vertising will agree it’s a constant battle to keep up with the terms of service as well as

keep their posts young, live and searchable to generate leads.

The first thing I want to point out is Craigslist is the best ROI for lead genera-tion out there. It is free to post, but to get maximum results requires knowledge of Craigslist terms, time and a dedicated pro-cess. With the amount of vehicles posted in the Denver Craigslist market, for example, you must have a daily presence on the site. For the longest time, we used to think that as long as your vehicle is live on Craigslist, it didn’t matter how recently you posted it. This could not be more wrong; the proof is in the pudding.

Every time dealers list a new ad on Craigslist, they get most of the calls the day they post and the day after. After an ad has been on the site more than three days, it gets a lot less calls. Craigslist searches are

Craigslist 101:

BEST PRACTICESdriven by date. For example, if a cus-tomer was to search for a Honda Accord in Denver, there’d be more than 1,000 results spread across 10 or more pages! If you posted your 2008 Honda Accord three days ago, it is most likely already on the fifth results page.

Our recommendation is to delete each ad after 48 hours, then repost it to maintain its effectiveness and stay at the top of the list. Remember, the Craigslist consumer will look at the first search page results on craigslist, but they’ll usu-ally find what they’re looking for there and never make it to the next page.

A pair of actions you should be aware of is flagging and ghosting. Ghosting is when your ad appears to be live but can’t be found anywhere on Craigslist. It’s an action done by Craigslist administra-tion that’s definitely the worst of the two because you have no idea it’s happened because the ad looks normal. Flagging is done by the Craigslist community. One thing to keep in mind is Craigslist is a community-based classified site. The majority rules and decides whether an ad is worthy enough to stay live.

This is where the flagging system comes into play. Each Craigslist con-sumer has the right to flag your vehicle. One Craigslist visitor cannot take down your vehicle ad, but he can contribute towards it. That means it takes more than one person to flag and remove it from the site. So how many flags does it take? Well, it depends. Nobody really knows the exact figures except Craig-slist; in metro Craigslist markets, it may take up to 20 flags to take down an ad. In smaller markets, where, for example, only 100 vehicle ads get posted per day, only two flags might take down an ad!

Most importantly, flagging will result in ghosting and will eventually blow up your Craigslist account so none of your ads will stick. You’ll have to go through the Craigslist community forums and blogs to get back to good standing. That process will take a lot of time and read-ing; most dealers will be overwhelmed doing such a thing.

So why do people flag? I believe 80 percent of it occurs because posters aren’t following the terms of service.


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For example, maybe you posted a 2008 Honda Accord ad on Monday and post-ed it again on Tuesday without deleting the earlier ad. The Craigslist community frowns upon this and is very click happy when it comes to flagging. If you have experienced this, you might want to con-sider automated postings that post ads more frequently with a fraction of your present efforts.

The other 20 percent of flags, in my opinion, are your competition. Not fair? Perhaps not, but Craigslist is a free ser-vice (to post cars and trucks), so who can you complain to? The fact is Craig-slist at some point really frustrates every car dealer, but we all have to deal with it. The good news is there are posting tools to take on this challenge as well as auto-mated tools to post your entire inventory

every day. If your competition is flagging your ads, they’ll eventually tire from do-ing so. Just don’t make it easy by attempt-ing to post your entire inventory every day on your own as that effort will result in a high flag and ghosting rate.

Craigslist is ideal for the dealer budget and many rely solely on the site for online leads. Are you getting your piece of the pie?

Dustin Jansson provides consulting, Craigslist posting tools and automated Craigslist posting services, as well as other dealership products. Contact him at 303-232-3435 or [email protected]. For more information, visit www.dealernetsolutions.com.

CRAIGSLIST IS IDEAL FOR THE DEALER

BUDGET AND MANY RELY SOLELY ON THE

SITE FOR ONLINE LEADS. ARE YOU GETTING YOUR

PIECE OF THE PIE?

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Automotive Internet marketing

specialist, Michael D. Jackson, CEO, AutoSearch

Technologies, shares strategies you can use right now to boost your

dealership’s online clout. RUNNING TIME: 50

MINUTES


14


Sorting Through Exceptions to the Risk-Based Pricing Notice

Curbstoned cars are often cheap, but state and local governments pay a high price. The FTC’s risk-based pricing notice requirements became effective Jan. 1. To comply with these requirements, dealers must alert consumers when they are getting different credit terms than others based on credit information. The good news is the requirements give options for how and when you provide the notice. That’s also the bad news because the options and exceptions can make it difficult to figure out if you’re in compliance. To help you sort through the maze, here are some of the important exceptions and how they apply to you.

Your dealership doesn’t need to provide a notice if:l You don’t do risk-based pricing of credit terms. This applies

if every consumer whose application is approved is offered credit on the same terms.

l You don’t use credit reports in any way to make a credit decision. If your dealership directly contacts employers and other references and is not otherwise using any third party information, then the risk-based pricing notice is not required (it sounds rare, but there are dealers who qualify for this exception).

A notice isn’t required for a specific transaction if:l The credit requested is not for a consumer purpose (personal,

family or household use).

l The transaction is a consumer lease.

l The consumer applies for a specific credit product and is approved for those terms.

l You offer specific terms to a pre-screened group and extend credit on the offered terms to one of them.

l The consumer is a co-signer (which is different from a co-borrower), guarantor, surety or endorser in the transaction.

l The consumer’s application is denied and you provide an adverse action notice.

l You provide the consumer with the credit score disclosure instead of the risk-based pricing notice. The disclosure is an alternative form authorized by the regulations. If you use it, you must provide it to all consumer applicants instead of providing a risk-based pricing notice only to the portion of applicants who are not receiving your most favorable credit terms.

It is likely some of these exceptions apply to your dealership and its transactions. Before relying on an exception, review the regulation or discuss it with your legal counsel to be sure you implement it correctly. The regulation can be found at 16 CFR §§ 640.1-.6.

BY C H I P Z Y V O L O S K I

Chip Zyvoloski is senior attorney for indirect lending at Wolters Kluwer Financial Services. For more information, visit www.wolterskluwerfs.com/indirect.

Carfax Debuts Mobile App for iPhoneCarfax launched the first mobile app dedicated to

providing on-the-go dealers with access to Carfax Vehicle History Reports. The ‘Carfax for Dealers’ app is available for free download to all dealers on the App Store. With an iPhone or other Apple mobile device, dealers can run Carfax Reports using their existing Carfax account to better evaluate used cars anytime, anywhere.

“The free ‘Carfax for Dealers’ iPhone app is just what our business needed,” said Justin Villa, pre-owned sales manager with David McDavid Automotive in Irving, Tex. “We downloaded it the day it came out and already we’re saving a ton of time evaluating cars. It’s helping us win at auction and evaluate a customer’s trade faster. After all, time is money.”

Running Carfax Reports is a key component to a dealer’s acquisition process. Users start by entering the 17-digit vehicle identification number (VIN) or scanning the vehicle barcode to run the Carfax Report. Any vehicle run through the ‘Carfax for Dealers’ app is automatically added to the dealer’s inventory manager at carfaxonline.com. The reports are saved for up to 30 days and dealers can mark vehicles they’re most interested in as favorites within the app.

“We’ve always been quick to embrace new technology to help maintain our competitive edge,” said Michael Townsend, used sales manager at Townsend Honda in Tuscaloosa, Ala. “When we heard about the new ‘Carfax for Dealers’ app, we went and got it immediately. The app is fast and makes appraising cars easy. It’s my new favorite tool on my phone.”Free access to Carfax Reports also is available through apps from several wireless technology providers. Dealers looking for additional pricing and product integration functionality can visit:

“Our customers tell us how important immediate access to Carfax Reports is to their success, especially at acquisition,” said Larry Gamache, Carfax communications director. “The ‘Carfax for Dealers’ app now puts the power of this information in the palm of your hand. And, you can run as many reports as you need through the app if you’re on the Unlimited Carfax Reports Program for dealers.”Dealers not attending the convention may contact their Carfax account manager or call 800-274-2277.

To download the app for iPhone, visit http://itunes.com/apps/CARFAXInc/CARFAXforDealers. An Android version of the ‘Carfax for Dealers’ app is coming soon.

s AutoRevo www.autorevo.coms eCarList TrueTarget www.ecarlist.coms VIN Viper www.vinviper.coms vAuto www.vauto.com

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