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INDEPENDENT State Affiliate
DEALER NEWS
O H I 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 AT I O N MAY/JUNE 2017
MAGAZINE
RETHINK
HOW YOU
SOURCE
AUCTION
VEHICLES
P A G E 12
Permit No. 2079
DALLAS, TEXAS
PAID
U.S. Postage
PRSRT Standard
VISIT US AT W W W.OHIADA.ORG
ASSOCIATION NEWS
2017 DINNER &
TEXAS HOLD’EM
TOURNAMENT
Great Turnout
On Friday, March 10, OIADA held its annual
dinner and Texas Hold’em tournament at the
York Golf Course in Worthington, Ohio. We
had more than 100 attendees come and enjoy
grilled steaks, door prizes, a 50/50 raffle, and
a fun filled evening of Texas Hold’em.
We’d like to thank all the sponsors and
everyone who came out for making this year
one of the best tournaments ever!
Final table
The winners (from left to right): Chip Cooper, Jeff Bright, Brendon Billups, John Adkins,
Mike Torres, Charlie Coffman, and first place winner David Sams.
Mr. Bobby Vaughan catching up with some old friends.
www.ohiada.org May/June 2017 / INDEPENDENT DEALER NEWS 3
ASSOCIATION NEWS
INSIDE
03..............................................Dinner and Poker Tournament
2017 EVENTS
Upcoming Events
05.............................................Executive Director’s Message
06..............Facebook Marketing Key Performance Indicators JUNE 12-15 SEPTEMBER 24-27
08....................... NIADA Plans Bigger and Better Convention
10.................5 Facts You Didn’t Know About Cost of Repairs NIADA Convention & Expo National Leadership Conference
12.........................Rethink How You Source Auction Vehicles The Mirage & Legislative Summit
14................................................. NIADA Government Report Register online: www.niadaconvention. DuPont Circle Hotel
com Washington, D.C.
WHAT’S NEW
Tire Safety Week Dates Announced
The dates for National Tire Safety Week 2017 are May JULY 14 NOVEMBER 4
28-June 3. An initiative of the Rubber Manufacturers Annual Golf Outing OIADA Expo & Convention
Association, the event promotes tire safety among Nationwide Hotel & Conference Center
consumers. Auto dealers join the tire and auto industry to York Golf Course
encourage drivers to “be tire smart.” 7459 N High St, Columbus, OH 43235 100 Green Meadows Dr. S
For more information, or to request print Register online: www.ohiada.org Lewis Center, OH 43035
materials, visit www.betiresmart.org. Register online: www.ohiada.org
ADVERTISER’S INDEX
BMW Group Direct........................................................... IBC
Columbus Fair AA.............................................................. IFC
Manheim............................................................................... 11
Manheim Pennsylvania ........................................................13
Micro 21................................................................................. 4
NextGear Capital.................................................................. 12
PassTime................................................................................. 7
Skipco Auto Auction............................................................. 5
BOARD OF DIRECTORS
Past Chairman Secretary Scott Shook
OFFICE Dan Reel
Reel’s Auto Sales
Craig Leitwein
Gahanna Auto Sales
Shook Auto, Inc.
New Philadelphia, OH
For more information, contact us at (614) 863-5800 Orwell, OH Gahanna, OH
or www.ohiada.org Thomas C Smith
Smitty’s Auto Sales
Chairman Executive Director
NIADA HEADQUARTERS Mark Meadows
Miracle Motor Mart East
Wendy Rinehart
OIADA
Greenfield, OH
NATIONAL INDEPENDENT AUTOMOBILE Tom Onesti
DEALERS ASSOCIATION Columbus, OH Reynoldsburg, OH
Car Port
WWW.NIADA.COM • WWW.NIADA.TV Youngstown, OH
2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 President Bob Fahey
PHONE (817) 640-3838 David Adkins Value Auto Auction LLC
Independent Dealer News is published bimonthly by the National Wilmington Auto Center Crooksville, OH
Independent Automobile Dealers Association Services Corporation, 2521 Wilmington, OH
Brown Blvd., Arlington, TX 76006-5203. Periodicals postage paid at Dallas, Chris Johnson
TX and at additional offices. POSTMASTER: Send address changes to Vice President Towne Auto Sales
Medina, OH
NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. Lauren Thomas
The statements and opinions expressed herein are those of the authors and Bowden Motors Inc.
do not necessarily represent the views of the Ohio Independent Automobile Bellfontaine, OH Jay North
Dealers Association or NIADA. Likewise, the appearance of advertisers, Jay North LLC
or their identification as members of NIADA, does not constitute an Springfield, OH
endorsement of the products or services featured. Copyright © 2017 by Treasurer
NIADA Services, Inc. Scott A. Welch Randy Shirk
Lock 20 Auto, Ltd Randy Shirk’s Northpointe Auto
Newcomerstown, OH
STATE MAGAZINE MGR./SALES Sales LLC
Troy Graff • troy@niada.com Toledo, OH
EDITORS
Jacinda Timmerman • jacinda@niada.com
Andy Friedlander • andy@niada.com
MAGAZINE LAYOUT & GRAPHIC ARTIST
Christopher Hanley • chris@niada.com
PRINTING
Nieman Printing
4 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.org
ASSOCIATION NEWS ASSOCIATION NEWS
BY WENDY RINEHART
Wheelz & Dealz LLC Riceland Motors INC
EXECUTIVE DIRECTOR’S NEW AND
Worldwide Auto Sales & Service LLC Independent Motorsports
American Auto Sales Sparky’s Nation Inc
Boztoz Inc 440 Auto Sales LLC
MESSAGE RENEWING
MyEzAutoBroker.com LLC American Credit Acceptance
Nationwide Acceptance LLC & Spartan Financial Partners
Auto Express of Hamilton Fink’s Quality Cars
Industry Update
MEMBERS
HBK CPAs & Consultants Remy’s Auto Group, Inc.
Livingston Auto Sales The Carriage Company
Quality Carz & More Carolina Auto Sales
Happy Spring, everyone!
The dealer licensing Welcome Z Auto Sales
Farmers National Bank
Reliable Auto Finance
Tri State Auto Sales
division of the Bureau Ben & Berrys Auto on the Strip LLC Foreign Exchange 614 Dynamic
Billing’s Sales & Service Inc.
of Motor Vehicles is Borders Reliable Auto Sales and Service GC Acquisition I LLC
E.B. Motors Theis Motor Co. Chapanars Quikeys
reviewing all 32 current Indiana Auto Auction JET Auto Group LLC
vAuto
administrative rules Kidron Kars Inc AFC Landen Motors Inc
along with five new Marvin Motors LLC Cleveland MotorTime Auto Sales
One Stop Auto Sales
administrative rules in Platinum Auto Group Inc. ETA Consulting
R’S First Motor Sales Inc. Manheim Ohio Auto Auction Quality Car Sales LLC
Chapter 4501:1-3 of the Wolfe Brothers Auto United Auto Credit
Preferred Used Cars & Leasing, Inc.
Ohio Administrative Code. Enterprise Automotive Upper Valley Sales LLC Bates Auto Isle
OIADA, along with the new annual convention and expo ADESA Queen City 4 Wheels LLC City-Wide Auto Credit
Dave’s Supreme Auto Sales LLC
car association, has offered being held on November 4 Bill’s & Son Auto Federal Financial Services Inc.
Chelala Inc. dba Masters Auto Sales Platinum Motors LLC Destiny’s Auto Sales
suggestions to make at the Nationwide Hotel and Credit Acceptance Corporation Legacy Automotive, LLC
Portage Motorcars LLC
some of the rules easier to Convention Center. We’re still Guardian Finance Company 614 Motors Dealz on Wheelz Auto Sale LLC
understand and better for working on some details, but Reel’s Auto Sales AK Imports Auto Sales, LLC Phil Steinle Chev Buick Inc.
South Fifth Automotive LLC Carzone Preowned Vehicles LLC
dealers. I can tell you this year is going Cruisin Classic
Cat’s Sales-Leasing Corp
Grahams Auto Resale LLC Grand Lake Motors LLC
You can go to the BMV to be spectacular! Look for your KRG Diversified Company LLC John’s Auto Group Licking County Auto Auction LLC
website (ohioautodealers. invitation and register early so Magic City Motorcars Inc Precise Motors LLC Physicians Auto Group
com) and see the codes you don’t miss out! Midwest Auto & Truck 2 LLC Reliable Auto Sales, LLC Ron Ferrari - Auto Sales
Northeast Auto Sales LLC West High Auto, LLC
being reviewed. There I hope our new website will A Family Auto Sales LLC
Brian T. Courtney Auto Sales
D’Lux Motors, Inc. Classics and More LLC
are several steps in this be up and running by the time Dealz Auto Trade,Inc. Carmart Express LLC DW Lift Sales, Inc.
process, so please reach you read this message. As you Empire Auto Connection LLC Fast Lane Automart INC eBay Motors
out to our office with any may have noticed, our old site Jay’s Auto Sales Inc Value Auto Auction LLC Insurance Auto Auction
KNH Wholesale Cardinal Dealer Solutions LLC Premium Motors LLC
comments or concerns wasn’t very user friendly or First Choice Auto Inc
Mariner Finance Enterprise Truck Sales LLC
so we can make sure your responsive to mobile devices. Mershon’s World of Cars Ruby Automotive Group, LLC Gallo’s Auto Sales
voice is heard during this If it’s not up and running yet, it Rick’s Auto Sales, Inc. Selah Automotive Mid-Western Auto Sales Inc.
Symmes Auto Sales Inc
review. should be any day now! Please ZCore Car $mart
Pleasant Corners Auto, LLC Deiderick Motors Waterloo Auto Sales
Check out the calendar let us know how you like it and Becks Auto Group LLC
ADESA Cleveland Auto Auction JD Byrider - Boardman
of events and make what suggestions you have to Auto Tech Sales LLC Select Motors - Rolfes Inc
sure you register for the make it better. Nationwide Auto Leasing Ray’s Body Shop LLC
www.ohiada.org May/June 2017 / INDEPENDENT DEALER NEWS 5
SOCIAL MEDIA
BY KATHI KRUSE
destination, key performance indicators conversions?
guide you to what success looks like for your 8. Response Rate & Quality
TOP 10
Facebook marketing. KPI’s give you a solid • How quickly are you responding to comments
foundation from which to measure results. and messages? Facebook grades your page for
FACEBOOK
response time.
TOP 10 FACEBOOK MARKETING KPI’S
• Is your lead form response time (follow up
Every social media strategy plan should
to lead form inquiries) reasonable?
MARKETING
outline the metrics you’ll analyze for best
• How effective are you at social customer
results. These are Kruse Control’s top 10
service? Currently, 92.5 percent of
Key Performance Indicators we use with our
KPI’S
brands fail to meet customer expectations
clients:
on social media and these failures can have
1. Audience Growth
big implications.
• How quickly are your fans growing?
Key Performance Indicators • What are you doing to increase growth?
Bad social customer service isn’t just
embarrassing. It’s bad for business:
Facebook marketing done right • Are you setting growth goals?
• 38 percent will feel negatively toward the
communicates your store’s core message • Are you achieving those goals?
brand without a response, and a full
and personality, attracts and engages your 2. Audience Profile
60 percent will tweet about their negative
target customers, and converts fans into • Have you defined your target audience?
experiences.
customers. Too often dealers jump onto • What type of audience are you building?
• Two thirds of customers with poor
Facebook without a plan or clear idea of • How close is the audience you’re
customer experience reduce their spending
what success really means for them. building to your target audience?
with a brand.
Most of us have experienced how 3. Audience Engagement
• 55 percent of Americans have switched
planning improves our endeavors, and • Is your audience interacting with
brands due to poor customer service.
marketing is no exception. A solid social your content?
Customers turn to social media when issues
media strategy plan saves time, money • If so, how are they engaging (i.e.
arise, expecting a response. Thirty-three percent
and precious resources. It also puts the comments, likes, shares)?
prefer to contact brands using social media
company in touch with target customers • If they’re not engaging, why not?
rather than the telephone. How equipped are you
on a more meaningful level. Time spent on • Are you responding to comments
to embrace social media as a customer service
strategy planning is evident in the results. on posts?
channel?
“Tactics without strategy is the noise • Are you equipped to engage leads
Any opportunity to hear customer feedback is
before defeat.” - Sun Tzu when they comment on posts?
a gift.
In my everyday travels, I see a lot of 4. Content Reach
9. Sales
dealers using the “trial and error” method • How many people are seeing your
Marketing’s job is to serve up leads.
of Facebook marketing. Example: “Let’s content each week?
Conversions are tracked to determine if the
post this random picture of a vehicle for • What are you doing to improve reach?
message is resonating. Marketers, however,
sale so everyone will see how fantastic it • What’s the optimal time of day to reach
rarely track sales, because it’s a hand off of sorts.
is!” The number one reason they use this fans/followers?
Other organizational processes come into play
tactic is because they’ve seen another • Are you getting “referral traffic”
and many on both sides of the equation don’t
dealer do it. (website visits) from Facebook
bother communicating about sales results.
Random pictures of cars have been (especially blog posts)?
As a company leader myself, I’ve always
posted by dealers throughout the country • Is referral traffic being tracked
thought of marketing and sales holistically.
for years. Isn’t it time to hold up on that for remarketing?
Tracking marketing through to sales results will
and do something unique? 5. Engagement by Content Type
only improve both.
There’s nothing about benign vehicle • What types of content are getting
10. Negative Feedback
photos and “sales jargon”that promises the best results?
• How much negative feedback have
value to the customer. • Have you tried different types of
you received?
Now, if there was a story behind the content that you haven’t before
• Do you know how much is to be expected
image that told of a fantastic customer (example: live vs. recorded video)?
(i.e. unfollows, hide posts, etc.)?
experience, then telling that story would • Are you prepared internally to produce
• What is your process for dealing with
bring you a big step closer to a quality post. that new type of content?
negative Facebook reviews? Facebook, at
Otherwise, it’s just noise, and noise is • What organizational changes need to
this point, doesn’t offer even a rudimentary
something we can all do with less of happen to produce content?
process for appealing a review. Your
these days. 6. Leads
4.8 stars can quickly become 2.0 with a few
The ability to recognize the difference • What is the click through rate to each
negative reviews, regardless of whether
between a random, useless post and vehicle display page or landing page?
they’re real.
a quality piece of content is rooted • What is the CTR from each social media
Next Steps
in strategy. Specific goals and their channel?
Examine your own Facebook marketing results
corresponding strategies make Facebook • Number of leads per landing page
using these top 10 KPI’s. If you haven’t yet
marketing click. (how many filled out lead form)?
determined your social media strategy, we’re
What you post is governed by why • Number of clicks to landing page that
here to help. There’s no sense in waiting. A solid
you post. did not fill out the lead form?
plan with proven strategies takes the guesswork
Defined within your social media • Paid vs Organic Leads (organic leads
out of social media so you can engage more
strategy plan should be: are the result of networking and
customers.
• Goals you want to reach. relationship building)?
• A timeframe to reach those goals. 7. Conversions Kathi Kruse is an automotive social media
• A roadmap of how you’ll achieve goals. • What’s your conversion rate? marketing expert, blogger, consultant, author,
• Definitive metrics. How many leads converted on speaker and founder of Kruse Control Inc. Kruse
Look for success markers along your landing pages? Control coaches, trains & delivers webinars
Facebook marketing journey. • Number of “organic” leads that focused on integrating social media and
online reputation management into dealership
Just like the maps app on your phone converted (leads earned, not paid for)?
operations.
shows the best route to take toward your • Which landing pages had the highest
6 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.org
LEGAL NEWS
BY ALLISON L HARRISON LAW LLC
FTC CHARGES advertised terms and that consumers can In other cases, the defendants told
SAGE AUTO
buy vehicles for low prices, finance with consumers who had completed finance
low monthly payments, or make low down contracts the contracts were canceled
payments. Other allegedly misleading claims and falsely represented the defendants
GROUP
Alleged Deceptive and Unfair
include that consumers can finance the
purchase of vehicles, when in fact they are
lease offers.
were permitted to keep customers’ down
payments or trade-ins.
When consumers request compliance
Online Reviews with the terms of the contract or refuse
Sales and Financing Tactics The FTC also alleges the defendants the defendants’ demands, the dealers, in
Summary use phony online reviews to tout their some instances, have falsely represented
The Federal Trade Commission has charged dealerships and discredit negative reviews consumers will be liable for legal action.
nine Los Angeles-area auto dealerships that highlighted their unlawful practices. Conclusion
and their owners with using a broad range They and their employees or agents The proposed settlement order will
of deceptive and unfair sales and financing allegedly posted positive, five-star online prohibit the defendants from making
practices. reviews that purport to be from objective or misrepresentations relating to their
The FTC’s action against the auto dealers independent reviewers without disclosing advertising, add-on products, financing, and
addresses “yo-yo” financing tactics: using their relationship to the dealerships. endorsements or testimonials. Additionally,
deception or other unlawful pressure tactics Yo-Yo Tactics it prohibits them from violating the Truth
to coerce consumers who have signed The FTC alleges the defendants have In Lending Act, Regulation Z, and the
contracts and driven off the dealership violated the FTC Act by charging some Consumer Leasing Act and Regulation M.
lots into accepting a different deal. The consumers for add-ons without their The proposed order will also bar the
FTC claimed the defendants packed extra, consent or falsely claiming the products defendants from engaging in other unlawful
unauthorized charges for “add-ons,” or were required or were free. Further, the FTC conduct when a sale is canceled, such as
aftermarket products and services, into car has charged that several financing tactics of failing to return any down payment or
deals financed by consumers. the defendants are deceptive and unfair. As trade-in or seeking legal action, arrest,
Advertisements part of the sales and financing process, the repossession or debt collection unless the
According to the FTC’s complaint, the defendants offer add-ons such as extended action is lawful and the defendants intend to
defendants entice consumers into their warranties. take such action.
dealerships with print, Internet, radio In some instances, after the consumers For a copy of the complaint and examples
and television ads that make an array of had signed contracts, the defendants falsely of Sage Auto’s deceptive advertising please
misleading claims. These claims include represented that consumers were required to visit https://www.ftc.gov/system/files/
vehicles being generally available for the sign a new contract with different terms. documents/cases/160929sagecmpt.pdf.
www.ohiada.org May/June 2017 / INDEPENDENT DEALER NEWS 7
ASSOCIATION NEWS ASSOCIATION NEWS
BY ANDY FRIEDLANDER
trainer/consultant Dave Anderson
of LearnToLead shows how the best
MORE WHERE OIADA/NIADA
performing independent dealers are
achieving success.
While providing dealers the education
THAT CAME they need to thrive in the rapidly
changing used vehicle industry is a
PREFERRED
FROM
NIADA Plans Bigger
primary focus of the NIADA Convention
and Expo, there is far more to it than that.
Start with the keynote speaker, Captain PARTNERS
Richard Phillips, whose dangerous and
and Better Convention dramatic encounter with Somali pirates
The 2016 NIADA Convention and Expo as skipper of a merchant ship in 2009
was the largest in the event’s 70-year inspired a best-selling book and the
history. It was incredibly well received by hit movie Captain Phillips. He’ll be on
attendees – 94 percent of those surveyed hand to tell his story Tuesday afternoon,
said the information they took away from courtesy of Carfax.
the Convention was very useful, and 99 Capt. Phillips will also appear for
percent said they are likely to attend again autographs at Carfax’s booth in the
in the future. Expo Hall, which is again sold out and
There’s only one way to follow a tough will include more than 165 exhibitors
act like that. representing the latest cutting-edge
Make it bigger and better. technology, products and services
NIADA’s 2017 Convention and Expo, designed to help your dealership stay on
coming up June 12-15 at The Mirage in Las top of the ultra-competitive used
Vegas, aims to do just that, helping you car market.
Chart Your Course toward success with a As always, we’ll honor the industry’s
packed agenda that includes even more best at Wednesday night’s National
extensive education offerings than those of Leadership Awards banquet – including
last year – which were NIADA’s largest and Crystal Eagle membership awards, the
most diverse ever. coveted Ring of Honor and the NIADA
Last year’s expanded Buy Here-Pay Here and Cox Automotive Community Service
agenda has been expanded again for 2017, Award – leading up to the climactic
featuring NIADA national director of 20 announcement of the National Quality
Groups Chuck Bonanno, NIADA 20 Group Dealer of the Year on Thursday.
moderator/consultants David Brotherton and Of course, there’s also time for fun,
Mark Dubois, and some of the top operators beginning with the popular Cigars and
and trainers of the BHPH sphere offering Martinis welcome reception Monday
training on everything from inventory night, with a “Havana Nights” theme and 700 CREDIT
acquisition and recon to underwriting to the band South Beach. And we’ll close ACV Auctions
collections. the event in style in Treasure Cove with a ADESA Cincinnati / Dayton, Inc.
Plus, for the first time ever, NIADA rocking After Party featuring live music. ADESA Cleveland Auto Auction
presents an industry exclusive: BHPH All of this is happening at the ADESA Mercer
industry benchmarks for 2017, provided spectacular Mirage, with its 17 AFC (Automotive Finance Corp.)
from NABD and NIADA industry data. restaurants, eight bars and lounges AutoZone
That’s not the only new item on the including the exclusive 1OAK nightclub, Autotrader
agenda. In fact, in addition to Retail, BHPH Cirque de Soleil’s Beatles LOVE show, CARFAX
and Operational Standards, there’s an the Secret Garden and Dolphin Habitat, a CARS.COM
entire new educational area of focus for tropical pool with waterfalls, lagoons and Car-Ware
the 2017 Convention. cabanas, and the famous Volcano. Comsoft
Certified pre-owned is the hottest thing To be a part of the used vehicle eBay Motors
in the used vehicle market. CPO sales set a industry’s event of the year – and Electronic Merchant Systems
record for the sixth consecutive year in 2016 NIADA’s biggest event ever – register Frazer Computing, Inc.
and are on pace to break that mark again this online at www.niadaconvention.com. Lease IT Own IT
year, and thanks to programs like NIADA Use the promo code VOYAGE17 before Manheim Cincinnati Auto Auction
Certified, independents can now get in on May 31 for a discounted rate of $449 – a Manheim Ohio Auto Auction
the action. $200 savings. Mighty of Central Ohio
Find out how to get your share of the Be sure to click on the “Travel & NextGear OIADA
red-hot CPO market and learn its best Accommodations” tab to book your hotel PASSTIME
practices in an array of sessions led by now at our discounted room rate of $150 Penn Warranty Corporation
industry experts and some of the nation’s per night, which includes the nightly Pro Credit Express
top CPO dealers, including 2016 NIADA CPO resort fee, in-room Internet and fitness ProGuard Warranty Inc
Dealer of the Year Todd Hoagey. center access. Rooms are limited, so Protective Asset Protection
Everything begins Monday with an don’t wait. Stolly Insurance Group
in-depth look at the many training You can also get the discounted rate The Milby Group Insurance Agency, Inc.
opportunities offered year-round by NIADA. by calling The Mirage at 800-627-6667
Bonanno gives dealers a chance to “test and mentioning “NIADA Annual
drive” NIADA Dealer 20 Groups, as well Convention 2017.”
as Bootcamps, consulting and more, in For more information about the
his workshop “The Power of 20.” That’s 2017 NIADA Convention and Expo,
followed by a “Power Through Education” visit www.niadaconvention.com or call
workshop, as acclaimed sales and leadership 800-682-3837.
8 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.org
INDUSTRY NEWS
NIADA.TV
TO STREAM
WORLD AUTO
AUCTIONEERS
CHAMPIONSHIP
May 12
For the sixth consecutive year,
NIADA.TV will webcast the World the team championship. vice president.
Automobile Auctioneers Championship This year’s judging panel consists of • Shane O’Dell, president of Cox
live, courtesy of the National Auto the following industry executives: Automotive Financial Solutions
Auction Association and co-sponsor • Eric Authenrieth, general manager and NextGear Capital.
NextGear Capital. of Carolina Auto Auction, ServNet • Rich Perkowski, national auction
The competition will be held May 12 vice president and treasurer. manager at BMW Financial Services.
at Manheim Pennsylvania in Manheim, • Brad Bollman, vice president of • Frank Stapleton, 1991 Reserve World
Pa. NIADA.TV’s coverage will begin at remarketing solutions at GM Champion Auto Auctioneer.
8 a.m. EDT. Financial. • Stephane St-Hilaire, ADESA
Watch the rapid-fire action as the best • Kevin Brown, president and owner president and CEO.
auctioneers, ringmen and teams in the of Missouri Auto Auction, president • Laura Taylor, Charleston Auto
business compete for prize money and of ServNet. Auction general manager.
the coveted titles of World Champion. • Frank Hackett, CEO of National • KAR / ADESA Judge
Michael Riggins is the defending Auto Auction Association. • Alternate Judge: Chad Bailey,
champion auctioneer, while Aaron Brown • Grace Huang, Manheim senior vice general manager of Akron
won the 2016 ringman title and Blake president of inventory services. Auto Auction and vice president
McDaniel and Dustin Taylor earned • Lori Jones, Texas Auction Academy of NAAA.
ONLINE MARKETING
BY JEREMY ANSPACH
MAKING
contextual ads, dealers have the power dealers to only advertise based on where
to drive mobile car shoppers from their a computer is.
THE MOST
phones to the lot. The percentage of auto shoppers using
Discover Shopper Preferences mobile to shop for a vehicle is expected
To better service mobile car shoppers, to increase to 80 percent by 2020. With
OF LOCATION- dealers must understand their shopping
habits. Is a consumer on the hunt for
the growth of mobile, relying solely on
desktop is not an accurate representation
BASED DATA
an SUV or a sedan? Does she have a of consumers’ browsing habits.
color preference? Location-based mobile advertising
Dealers can use an online car shopper’s allows dealers to interact with shoppers
Drive Mobile Shoppers to the Lot search and browsing behavior to serve anywhere and at any time. For example,
Now more than ever, dealers must make more tailored ads on the go. If a consumer a shopper who has been on the hunt for
an effort to meet consumers across all is repeatedly searching for a red Jeep, for a red Jeep is about to pass a dealership
channels. Thanks to the growth of mobile, example, ads across all devices should that has one on the lot. Your dealership
consumers make major purchase decisions reflect this with relevant content. can reach that consumer by serving her a
on the go, and often on impulse. While In addition to relevancy, highly targeted targeted ad as she drives by, enticing her
low-funnel car buyers aren’t yet actually ads are not productive if they’re not in line to visit the dealership.
purchasing cars via mobile devices, they do with your dealership’s inventory. A car Dealers can make their marketing
conduct the majority of their auto research shopper could be served a retargeted ad efforts stand out among competitors
on smartphones and tablets. for the red Jeep she’s been eyeing, but if by applying digital behavior to real-
Serving relevant, targeted ads to the model is out of stock by the time she world context. In doing so, they’ll keep
consumers is crucial across every industry, actually visits the dealership, she won’t be car shoppers engaged and generate
but it holds especially true in automotive. a happy customer. immediate ROI from their digital
With over 75 percent of the car buying Utilize Location Data campaigns. As shopping on smartphones
process spent online, it’s increasingly Along with effective display advertising and tablets quickly becomes the norm,
important to keep the ads and content and retargeting, location-based mobile dealers must adjust to the trend and
relevant across devices. When added to a behavior can help dealers improve their integrate a digital solution that keeps
dealer’s larger digital marketing strategy, personalization efforts even further. mobile top of mind.
mobile can help them in such scenarios. By Desktop marketing efforts are limited by a
leveraging location data to serve real-time, car shopper’s permanent location, allowing Jeremy Anspach is CEO of PureCars.
www.ohiada.org May/June 2017 / INDEPENDENT DEALER NEWS 9
ACCELERATE
BY GWC WARRANTY
5 FACTS YOU unexpected $400 expense. Chances are if
you’re selling a used vehicle, or perhaps one
DIDN’T KNOW
with higher mileage to a subprime customer,
that they would fall into this category. With
this knowledge on hand, it should help
ABOUT COST justify a few extra dollars each month to have
a service contract on a vehicle. covering more than just parts and labor.
OF REPAIRS
Age of ownership is changing rapidly. Customers are basing their car
Edmunds research has discovered trade-in purchase decisions on parts costs.
volume will likely dip below six million this A recent AutoMD survey reported 15
A Fresh Approach year. It’s the first time this has happened in percent of car buyers factor in costs of repairs
Most dealers have talked cost of repairs five years. Why? Because drivers are hanging when buying a vehicle. It’s one of the leading
when attempting to close a vehicle service on to their cars longer. considerations of recent car buyers – right
contract sale. But has talking about the The same Edmunds report showed that behind price, longevity and utility. If this
price of parts and labor returned a mixed 8- to 15-year-old vehicles had higher is such an important point of emphasis for
bag of results? What if there was a different value retention than one year prior. If customers, it would only make sense they
approach you could take when presenting your customers plan on holding onto their would be interested in protecting themselves
cost of repairs that would be more effective? cars longer and protecting the value these from such out-of-pocket expenses.
In the interest of taking a fresh, vehicles retain, a service contract becomes a Video can tell this story for you
new approach with the cost of repairs much easier sell. and bring it home.
presentation, let’s take a step back from Expenses from a breakdown don’t According to global media measurement
the price of a new transmission or the labor stop at parts and labor. company ComScore, after watching a video,
costs at the repair shop down the road. Let’s Anyone who has had a broken down 64 percent of customers are more likely to
rather take a look at some supporting data vehicle knows the process. There’s a tow buy a product. After (or perhaps even before)
and approaches that make the cost of repairs truck involved. If you’re away from home, you’ve made your case about cost of repairs
discussion more relatable and more effective. you’ll need to find lodging. being the reason a customer should buy a
Nearly half of all Americans can’t afford Parts and labor can be expensive on their service contract, show them a video that tells
an unexpected $400 expense. own, but when you factor in hotel stays, the story in a succinct manner. It might just
The Federal Reserve just conducted roadside assistance and towing services, the be the piece that brings your presentation
research that found 46 percent of Americans cost from a breakdown starts to skyrocket. together and gets your customers to their
do not have enough money to cover an A service contract resolves these fears by purchasing decision.
SALES MATTERS
BY GEORGE DANS
CLOSE OR LOSE
When is the best time to ask for the sale?
It’s when you have built the value higher than
the price in the prospect’s mind. One of the
What If They Say No? easiest closes to use is the summary close,
How many times have you heard the which is like a designed play in sports.
dreaded phrases, “We need to go home and Three “yes” questions or minor
think about it,” “This is our first place,” or, commitments:
“I need to go home and talk to my wife”? 1. You did like the car, didn’t you?
According to Internet statistics, the average 2. Didn’t this have all the room you need?
customer is spending over 15 hours of research 3. Won’t this car save you money on gas in
when it comes to buying a vehicle. Doesn't the long run?
that mean they have accomplished all of their Positive statement: Steve, it sounds like
pre-game activities prior to buying a car? you and I found the perfect car!
Then why do they come in and say they’re just Close: Will you be registering this in one “Yes.”
looking? name or two? “Other than fitting this into your budget, is
The dreaded word “no” has destroyed Shut up. there any other reason why we couldn't wrap
so many good people because they haven't Like most great salespeople, when you ask it up right now?” Then shut up.
been professionally trained, developed or for the close you have to make sure you shut “No.”
maintained to overcome it. My best advice is to up! Don’t over talk, don’t talk, just shut up. “Congratulations. Are you going to be
set your sale up the right way so you can close When you ask for the sale, let the prospect registering this in one name or two?” Then
the right way. come back with an answer. shut up.
Follow and execute the basics of selling with Example if the answer is no: “Two names!”
every single customer, every day, and I know Flush out the objection – “Is it the car, “Follow me and let’s go write it up!”
you will sell more, close more, net more and make, model, equipment or the price?” Then If you are an amateur, I’m sure you won’t
profit more, and more success will follow you shut up. practice or take the time to learn, absorb,
right to the bank. “It’s the price!” repeat and master the above scripts. If you
Closing is when you do something positive Ask, “Are you writing a check or making are a real professional, or on your way to
that is leading your prospect through the sales payments?” Then shut up. becoming a professional, you know you have
process. Every time your prospect says “yes” “Payments.” to practice the scripts so they don’t sound
to you that’s a minor commitment toward the “Sounds to me like you want to make sure like a script. Pros practice until they can’t get
ending commitment, when you finally ask for it fits your needs and in your budget. Am I it wrong. Read it, role play it, record it and
the sale. right?” Then shut up. watch how easy it is to close more sales.
10 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.orgMANAGEMENT MATTERS
BY DALE POLLAK
RETHINK HOW YOU
SOURCE AUCTION
VEHICLES
Adapt to Market Shifts
How has your auction-sourcing process
changed in the past 12 to 18 months?
About a third of dealers say things are
pretty much the same when it comes to
sourcing auction vehicles. In many instances,
dealers believe their used vehicle managers
and buyers could do a better job, but they
don’t feel a compelling need to make any
dramatic changes.
These are dealers who’ve expanded their
wholesale acquisition net beyond local
sources. Their focus is at least regional, if
not multi-state. Managers and buyers are
traveling further to find the right auction
inventory for their dealerships.
Other dealers are buying more online. These
dealers fall into two categories: those who will see fewer trade-in opportunities from
are learning the ropes of acquiring auction new vehicle customers – a by-product of
vehicles through online channels, and those rising levels of leasing in recent years.
who want online purchases to make up a Edmunds reports that fewer than half of
majority share of their wholesale acquisitions. new vehicle deals involved a trade-in. This
In both cases, dealers say they see online market dynamic means more dealers will
auctions as more cost-effective and efficient look to auctions to acquire the inventory
than sending managers to auctions to acquire they need to drive their retail sales and profit
wholesale inventory. objectives.
I’d estimate about 20 percent of dealers Increased Market Insight
have transitioned to buying solely online. New technologies and tools are helping
Typically, the shift involves the hiring dealers efficiently pinpoint the auction
and/or training of acquisition specialists vehicles that offer best retail potential for
– tech-savvy individuals who spend the their dealerships, based on the front-end
majority of their time researching vehicles gross profit the vehicle might generate
and managing live and proxy bids to acquire as well as how fast it will sell, given the
cars. Here again, dealers say the change number of competing units available in the
resulted from a desire to make auction market. For these dealers, there’s little, if
sourcing less costly and more efficient. any, guesswork involved when they make a
I worry the most about dealers who fall in decision to acquire an auction vehicle.
the first group. Increased Margin Compression
If auctions were like fishing, these dealers Unfortunately, the trend of the past
would be the guys who are basically bringing several years will continue in the months
the same bait and tackle to the same fishing ahead – pricing transparency and rising
holes, hoping to bring home the best fish. costs will continue to erode used vehicle
They see enough occasional success to profit margins. Add in the aforementioned
maintain the same routine, even as the law volatility due to increased wholesale supply,
of diminishing returns erodes their potential and it is an ever-greater imperative to
for success. They may even justify less-than- consistently buy the right auction car on the
optimal results with a purist-type position money.
– the guys with the fancy baits, high-tech fish To me, these factors indicate a wholesale
finders and tackle aren’t really “fishing,” at market where change is ever-present, and
least not in the traditional sense. tomorrow’s opportunities will likely look
But today’s wholesale market is anything different than they do today.
but traditional. Consider the following factors. That’s why I’m more confident about the
Increased Supply future success of dealers who’ve actively
Not long ago, dealers bemoaned what they been changing the way they source auction
considered a dearth of decent cars available inventory. In the months ahead, they’ll be
at auctions. Today, we have the opposite better positioned to adapt to market shifts
problem – an unprecedented, and growing, and gain advantage. Their competitors,
level of wholesale supply that will bring a meanwhile, will still be arguing over whether
commensurate rise in vehicle value volatility something needs to change.
and risk.
Increased Competition Dale Pollak is founder of vAuto and has published several
In the months ahead, analysts say dealers books on his Velocity Method of Management.
12 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.orgWASHINGTON UPDATE
NIADA
prison for money laundering and assessed devices. The state legislature removed those
a monetary judgment of more than $1.75 provisions following the conditional veto.
million—the amount of the proceeds Nevada: The Nevada Senate has a bill
GOVERNMENT traceable to the offense.
According to court documents, Rodriguez,
pending that would prohibit the use of starter
interrupt or GPS devices in that state. I
REPORT
owner and operator of Rodriguez Auto traveled to Nevada to testify against the bill,
Wholesale, sold 87 vehicles over a four-year along with several dealer members and other
span for a total of more than $1.75 million to interested parties. We are in discussions
Latest Government individuals who paid him with proceeds from with the bill’s sponsor and interested parties
the sale of illegal narcotics and/or stolen about workable legislation.
Issues and Activity identity refund fraud offenses.
Here’s a rundown of some of the latest Rodriguez knew the funds had been LEGISLATIVE REPORT
governmental issues and activity affecting illegally derived and agreed to disguise the By Sante Esposito
the used car industry from NIADA senior large cash transactions from the government
vice president of legal and government by accepting large cash payments for CFPB CONGRESSIONAL HEARINGS
affairs Shaun Petersen and NIADA lobbyist vehicles without filing Forms 8300 with the The House Financial Services
Sante Esposito of Key Advocates. Internal Revenue Service, as required by Committee’s Subcommittee on Oversight
law, and by placing vehicles in the names of and Investigations held a hearing March 21
REGULATORY REPORT straw buyers so law enforcement and other titled, “The Bureau of Consumer Financial
By Shaun Petersen
governmental entities would not be aware Protection’s Unconstitutional Design.”
of the true owners of the cars or the illegal The hearing examined whether
CONSUMER FINANCIAL PROTECTION funds used to purchase them. the structure of the CFPB violates the
BUREAU Rodriguez further promised purchasers Constitution and discussed possible changes
The CFPB settled an action with Experian to keep a lien on certain vehicles despite to resolve any constitutional issues.
and its subsidiaries for allegedly deceiving receiving payment in full, so in the As established by the Dodd-Frank Act,
consumers about the use of credit scores it event those vehicles were seized by law the bureau is headed by a single director
sold to consumers. enforcement authorities, Rodriguez could who serves a five-year term and can only be
Experian claimed the credit scores it reclaim possession and return the seized cars removed by the President for “inefficiency,
marketed and provided to consumers were to the purchasers or their family members. neglect of duty or malfeasance in office.”
used by lenders to make credit decisions,
The director sets the CFPB’s budget, which
but the CFPB said the lenders did not use FEDERAL TRADE COMMISSION is funded outside of the congressional
those scores in making lending decisions. Following a public comment period, the appropriations process through transfers
The CFPB also alleged Experian violated FTC approved final consent orders with from the Federal Reserve system’s operating
the Fair Credit Reporting Act for making CarMax, Asbury Automotive Group and expenses.
consumers view advertisements before West-Herr Automotive Group, resolving One of the witnesses, former U.S. solicitor
providing them with a free credit report claims they failed to disclose open recalls general Ted Olson, who represents PHH Corp.
through AnnualCreditReport.com. Experian despite advertising rigorous inspection in a case against the CFPB, said, “Congress
was fined $3 million. programs. went way too far with this agency. The
The orders require the dealerships to breadth of authority here and the lack of
DEPARTMENT OF JUSTICE refrain from stating their used vehicles are oversight to Congress and the President
Raymond L. Rodriguez, Jr. was sentenced safe, have been repaired for safety issues or I’ve never seen in any other agency.”
to three years and one month in federal have been subject to a rigorous inspection On April 5, CFPB director Richard Cordray
unless they are free of open recalls or the appeared before the full committee for his
dealerships clearly and conspicuously semiannual report. In his opening statement
disclose that their vehicles might be subject committee chairman Rep. Jeb Hensarling
to unrepaired recalls for safety issues and (R-Texas) said Cordray should be fired “for
explain how consumers can determine a conducting unlawful activities, abusing his
vehicle’s recall status. authority and denying market participants
due process,” and said the CFPB should
STATE ACTIVITY be overhauled.
New Jersey: After his conditional veto “Mr. Cordray and his CFPB don’t just act
forced changes to the bill, Gov. Chris Christie as a cop on the beat,” Hensarling said. “They
signed final legislation that will require act as legislator, prosecutor, judge and jury
dealers using GPS or starter-interrupt all rolled into one. The CFPB represents the
devices to disclose the existence of the device summit of unelected, unaccountable and
and whether it has the ability to disable the unconstitutional agency government. It
vehicle’s starter remotely. represents a dagger aimed at the heart
Dealers using starter-interrupt technology of our foundational principles, namely
will not be permitted to disable a vehicle’s co-equal branches of government, checks
starter until a consumer is in default for at and balances, due process and justice for all.
least five days on a contract requiring weekly “The tyranny must end and the people’s
installment payments and at least 10 days constitutional rights returned to them.”
on a contract requiring other installment Cordray defended the bureau, citing its
payments. Dealers will be required to warn enforcement actions against Wells Fargo
the consumer at least 72 hours before and its efforts to “clean up the problems”
disabling the starter. associated with credit reporting.
The bill originally made it to Christie’s “Nobody should want to return to a
desk with several restrictive provisions, system that failed us and produced a
including a mandatory interest rate financial crisis that damaged so many
reduction for use of starter-interrupt lives,” he said.
14 INDEPENDENT DEALER NEWS / May/June 2017 www.ohiada.orgYou can also read
