Inside: DMV News / 06Finding Time to Make More Deals / 08Washington Update / 10Training: Priority or Risk? / 11

GO BEYOND MOVING METAL

Create a Successful Backend Sales Process

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DealerNews

T H E O F F I C I A L M A G A Z I N E O F O R E G O N I A D A

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

F E B R U A R Y 2 0 1 6

REPRESENTING ALL AUTO, TRUCK, TRAILER, RV AND POWER SPORT DEALERS OF OREGON

OIADA CON T INUING

EDUCAT ION P ROGR A M

Read & Respond

and CertifyCOMPLETE THIS TEST AND CERTIFY BELOW THAT YOU

HAVE READ THE ARTICLES FOR FEBRUARY 2016.

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InsideWhat’s NewSAVE THE DATE FOR NIADA CONVENTIONJUNE 13-16The 2016 NIADA Convention & Expo: Success by Reinvention will be held June 13-16 at the Mirage in Las Vegas. You don’t want to miss this event! Register online! For more information, visit www.niadaconvention.com.

Inside05 Service is King06 DMV News08 Finding Time to Make More Deals10 Washington Update11 Training: Priority or Risk?12 Hiring for Personality or Failure?14 Go Beyond Moving Metal

Advertiser’s Index Brasher’s Northwest/Portland AA .................................BCCarMax Auctions ...........................................................................5DAA Northwest/Seattle .........................................................IFCLobel Financial .................................................................................3Manheim.com ..................................................................................9NextGear Capital ...........................................................................7VAuto ...................................................................................................IBC

OfficeOregon Independent Auto Dealers Association 1475 Capitol St. NE Salem, OR 97301800-447-0302

NIADA HeadquartersNational Independent Automobile Dealers Associationwww.niada.comwww.niada.tv2521 Brown Blvd.Arlington, TX 76006-5203 phone (817) 640-3838For advertising information contact: Troy Graff (800) 682-3837 or troy@niada.com.OIADA Dealer News is published 12 times per year by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone 817-640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 6006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of OIADA Insider or the National Independent Automobile 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 © 2016 by NIADA Services, Inc.Inc. All rights reserved.STATE MAGAZINE MGR./SALES Troy Graff • troy@niada.comEDITORS Jacinda Timmerman • jacinda@niada.comAndy Friedlander • andy@niada.comMAGAZINE LAYOUT & GRAPHIC ARTISTChantae Arrington • chantae@niada.com ART DIRECTOR Christy Haynes • christy@niada.comPRINTING Nieman Printing

ACCOUNTING SERVICES Delap, CPAAdam PuckettLake Oswego, OR 97035503-697-4118ADVERTISINGAffiliated Media LLCAaron Jarvis503-683-2574Carsforsale.comAaron Oestretch605-306-3302AutoTrader.comEd Merrick 503-747-9162Cars.comJames Lynch312-601-5052UsedCars.com by DealixTamara Garris847-397-1700AUTO SERVICES & ACCESSORIESAuto Marketing SpecialistGary Palaniuk503-519-7725Auto DetailerShow Room NewMike BartheP O Box 822073Vancouver, WA 98682360-882-8162Northwest Auto AccessoriesCraig Lessard503-288-5700SHOWROOM/BUSINESS JANITORIALShow Room NewMike Barthe 360-882-8162

Associate MembersCommercial CleaningJaniKingMorgan Thomas541-868-8080 PRIVATE AUCTIONSBrasher’s Northwest Auto AuctionMark Melton541-689-3901Brasher’s Portland Auto AuctionJerry Hinton503-492-9200Crosspoint NW Dealer AuctionBrian Hardy503-594-2800Manheim Portland Auto AuctionRay Priest503-286-3000OUT-OF-STATE AUCTIONSADESA Seattle Auto AuctionJason Arcaro253-735-1600 x 213DAA NorthwestMitzi Vanvoorhis509-244-4500DAA SeattleDave BlakeAuburn, WA 98002253-737-2200Manheim Seattle Auto AuctionRay Priest206-762-1600

PUBLIC AUCTIONS & AUCTIONEERSCommercial Industrial AuctioneersRay Beal503-760-0499Insurance Auto Auctions, Inc.Ryan Hall503-253-1500

Petersen Auction Group of OregonCurt Davis541-689-6824Rick Leathers AuctioneersRick Leathers503-668-5326Woodburn Auto AuctionSteve Morin503-981-8185DEALER SOFTWAREFrazer ComputingMichael Frazer888-963-5369FINANCINGCredit AcceptanceJohn Bragg360-980-2214Credit ConceptsJason Moon541-342-8545JP Morgan Chase Auto FinanceJeff DeGarmo503-201-4370Lobel FinancialTom McConkey503-653-8000

Nationwide InsuranceMark Tischer503-339-4165Oregon Auto FinanceGary Veum541-868-0472Oregon Community Credit UnionRich Black541-681-6311PacWest LLCJohn Keifer341-868-2595Reliable Credit AssociationDavid Marx503-462-3022Smartway Auto AdvisorsSheldon Harris503-795-7700The Equitable Finance Co.Brandon Fox 503-808-7939United FinanceTodd May503-238-6488FLOORPLAN FINANCINGLobel FinancialTom McConkey503-653-8000Floorplan XpressJosh Chandler503-621-9260NextGearRobert Torbet503-358-3911INSURANCE & BONDINGHecht & Hecht Insurance AgencyEvelyn Hecht503-542-1131

PRESIDENT Gary SargentSargent’s Motor Sport

EXECUTIVE VICE PRESIDENTTommy Wilson JrTommy Wilson Motors

Board of Directors1st VICE PRESIDENTSiamak LoftiSiamak’s Car Company

TREASURERGary BrooksBrooks Motors

SECRETARY Jim WeaverCredit Union Auto Broker

F E B R U A R Y 2 0 1 6

KMI Agency, Inc.Kelly Martin503-625-2615Shepard & Shepard Business SolutionsTodd Shepard509-396-0488The Summit Group of OregonJohn Petrie503-581-2825LEASINGOregon Roads, Inc.Joseph McKinney541-683-2277SERVICE CONTRACTSA.U.L./D.P.C.Jim Bangert 360-834-3333Automotive Business DevelopersShannon Meany541-944-9186Auto Services CompanySusan Williams800-442-7116DPC, Inc.Jacob Bangert360-834-3333Protective Life InsuranceDylan Doran818-836-1455TRAININGOIADA/NIADA CertifiedPauline Sill503-362-6839

Car Shoppers Rely More on Social Media

Digital Air Strike recently released the findings of its fifth annual Automotive Social Media Trends Study.

The study highlighted consumer behaviors on social networks, review sites and mobile devices related to the car shopping, buying and service experiences, and signals consumer expectations of auto dealerships and their sales and service staffs relative to dealership social presence, online reputation and mobile and digital engagement.

The study includes findings from 2,000 car buyers and 2,000 service customers who either purchased or serviced a vehicle within the previous six months. The study – with data collected

in the past 45 days – covers all major U.S. geographic regions and represents domestic and foreign automotive brands, with even distribution across age and gender groups.

Three-quarters of car buyers and 68 percent of service customers say Internet research, including social media and review sites, was the most helpful medium when selecting a car dealership – surpassing all other media, including dealership websites which ranked highest with only 16 percent of car buyers (down from 19 percent in 2014 and 24 percent in 2013).

This is the third consecutive study where car buyers have ranked social networks as more important than dealership

AUTOMOTIVE SOCIAL MEDIA TRENDS STUDY BY USED CAR NEWS

websites in their dealership selection process. Half of the respondents ranked review sites as the most influential dealership selection tool (up from 45 percent the previous year), while 18 percent ranked review sites and a dealership’s website as equally influential and 16 percent ranked a dealership’s website as most influential (down from 19 percent over prior year).

Almost all car buyers feel a dealership needs to have at least a four-star rating or higher on review sites to have a “good rating.” Facebook ads continue to gain use and awareness: 66 percent of car buyers/shoppers or owners who have seen a Facebook ad say they have clicked on it, up from 33 percent in 2014.

M A RKE T WATCH

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Generally speaking, a thriving service department powers a healthy, profitable dealership. In fact, while fixed ops account for only 12 percent of a store’s total revenue, they account for 60 percent of its net profits. Leading franchise dealerships and third-party shops know this – that’s why they’re investing significant resources and effort into seizing your service customers.

Gone are the days when customers would come to your dealership for a car and service, and come back years later simply because you’re their local dealer. The digital revolution has blurred boundaries between sales territories and makes infinite competitive options available all day, every day.

So how do you, an independent car dealer with limited capital and resources, compete with

franchise dealerships? Well, you can’t out-shout them, and you can’t outspend them, so to keep customers from going astray, your store must find new ways to sell, service and retain them.

Here’s how we suggest you do it:1. Play matchmaker. Congrats,

you made the sale. Take this opportunity to secure return visits. If you simply introduce your customers to the service team after the purchase, they’re 29 percent more likely to schedule an appointment at that time.

Once your customers sign the dotted line(s), walk them over to your service department to schedule a first oil change. Be sure to offer prepaid service packages to improve the likelihood of a long-term service relationship.

2. Use technology to your advantage. Automate email, phone and text message reminders to increase show rates for scheduled appointments and make it convenient for your customers to schedule appointments. Your automotive technology platform should also be able to send text alerts when the vehicle is ready for pickup.

3. Get on the horn. DealerSocket data shows 88

BY ANTONIO R. RAJAN VICE PRESIDENT SALES, DEALERSOCKET INDEPENDENT

percent of customers and/or prospects will come in for service if you simply ask them to. Make phone call follow-ups a priority, and make sure your service calendar is open when you reach out to your customers.

4. Create experiences, not transactions. Your guests’ experiences will make or break your ability to get them to come back in the future. And since 78 percent of consumers are influenced by negative reviews, your team must focus on creating advocates and releasing them into the wild to promote you on review sites like Yelp!, DealerRater and Google.

5. Stick with your customers. After your team completes a service call, follow up to ensure your customer is satisfied. Automated emails can be triggered to thank customers after a maintenance visit. Always thank your customers for their business! Follow-up calls or emails are great ways to get no-shows back into a service routine.

6. Ask for honest feedback. Send post-visit surveys to your customers to gain actionable insights to help you improve your processes. Use complaint-

management technology to route dissatisfied customers to appropriate team members for follow-up and satisfied customers to third-party review sites to promote your stellar service and engage others to give you a try.

Remember that your customers’ loyalty is under attack by competitors who likely have larger budgets and more resources. They’re actively working to erode even your strongest relationships with customers, and given the rise of the millennial generation and shifting consumer behavior, their chances are good.

For your customers, a slew of competitive options are only a click away. Set your business up for short- and long-term financial success by strengthening your first – and best – line of defense in the service war: superior service. By engaging your customers before competitors have a chance to and creating a culture that breeds trust and preference of your store’s brand of service, you’ll be on your way to driving retention and profitability that even the slickest marketing campaigns never will.

SIX STEPS FOR DEVELOPING LOYAL FIXED OPS CUSTOMERS

M ANAGEMEN T M AT T ERS

Service is King

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Unlicensed Dealers Keep DMV Investigators BusyBY LARRY PURDY, OREGON DMV

Since prior to 2007 the DMV Business Regulation Section has had seven full time investigator positions. Three are assigned to the Portland Metro area, two in Salem, one in Eugene, and one in the Medford area. The investigators are responsible for conducting routine inspections on about 2,300 licensed dealers and dismantlers, investigations into consumer complaints against licensed dealers and dismantlers, and investigations into unlicensed activity.

Investigators are also frequently called on to attend administrative hearings and to assist law enforcement, code enforcement, insurance industry investigators, and other agency partners with auto industry related investigations.

Investigators are allotted roughly 15 percent of their time

(6 hours per week) to spend on unlicensed dealer/dismantler activity. However, the actual time spent on unlicensed activity by each individual investigator varies depending on each investigator’s workload and other factors beyond the investigator’s control.

For example, when the price of scrap metal is high, the investigators are inundated with inquiries/complaints about scrappers buying and selling vehicles without a dealer certificate. Between 2009 and 2013 there was a significant number of vehicle dealer and manufacturer closures in Oregon due to the recession. In 2014 and 2015 we have experienced an unusual number of dealer closures due to the availability of inventory financing and over speculation of sales volume by dealers.

Most individual unlicensed cases take several months to investigate and conclude with a request for a civil penalty. The increasing use of the Internet and social media has made it more difficult to identify specific vehicles on which to base the civil penalty.

Because most vehicle investigations work is not eligible for Highway Fund

resources, about 65 percent of the investigator’s time is covered by the DMV Transportation Operating Fund, which is comprised of fees from dealer/dismantler license applications. The remaining 35 percent comes from the Highway Fund. Because investigating unlicensed activity is not an eligible Highway Fund use, increasing the time investigators spend addressing unlicensed activity could require an increase in dealer/dismantler licensing fees.

The majority of the complaints DMV Business Regulation Section receives about unlicensed activity comes from licensed dealers. The majority of consumer complaints received involve licensed dealers and not unlicensed activity. As you can see in the chart, the number of complaints against licensed entities is about double the number of complaints about unlicensed activity.

Oregon DMV is proactive in addressing unlicensed activity. In early 2015, DMV Business Regulation Section developed posters and brochures with information about licensing requirements for people selling vehicles, which are displayed at most DMV field offices and auto auctions around the state. Also in early 2015, DMV

DMV NEWS

contacted major newspapers in Oregon and provided public service announcements with information on licensing requirements.

In 2015, Oregon issued 11 unlicensed dealer civil penalties totaling $210,000. By comparison, in the same time period, Washington State has issued nine unlicensed vehicle dealer civil penalties totaling $49,000. Many other states in the nation do not address or attempt to regulate unlicensed activity in any manner. Some states have even passed laws to de-criminalize some unlicensed activity by allowing the sale of up to five vehicles per year without a dealer certificate.

THE MAJORITY OF THE COMPLAINTS DMV BUSINESS REGULATION SECTION RECEIVES ABOUT UNLICENSED ACTIVITY COMES FROM LICENSED DEALERS.

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KEEPING UP TO DATEBY LARRY PURDY, OREGON DMV

The DMV Business Regulation Section recently underwent some changes.

Retirement Congratulations! Rick Parsons, Compliance

Specialist/Investigator for the Business Regulation Section, Dealer Investigation Unit, retired Jan. 1. Rick has been with the Business Regulation

Section since 1998, assigned to work in the Eugene area.

Prior to coming to DMV, Rick was involved with financial institution investigations, security and loss prevention. Rick is also a member of the adjunct faculty at both Lane and Umpqua community colleges, and plans on continuing to teach.

In his spare time, he plans to work on his fishing, golfing, boating and RV driving skills, all of which need vast improvement. Thanks, Rick, for all your years of service to the citizens of Oregon. You will be immensely missed by your peers and all the friends in the industry you’ve cultivated over the years. We wish you well as you move into the next phase of your life.

Ready for DutyThe Business Regulation

Section has hired Dan Liu to step in and take on the Eugene area.

Dan has been with DMV for a little over a year, first working as a public service representative with Customer Assistance for six months. The last seven months have been spent in a developmental rotation with the Business Regulation Section as a compliance specialist/investigator.

Prior to coming to DMV, Dan spent 21 years in law enforcement, which when combined with the experience in customer assistance has given him the ability to quickly adapt and learn the responsibilities of the compliance

specialist/investigator position. Dan has a personality that never tires of meeting and helping people, and is grateful to be able to continue serving in a role that allows him to put that personality to work.

Dan officially started with Dealer Investigations on Oct. 26 and is enthused to be permanently joining the team. (Our thanks go to the Customer Assistance Unit for finding a great employee, allowing him to work for us in a rotational position, and then allowing us to steal him!)

New to DMVThe Business

Regulation Section has also hired Kelly Garcia as a compliance specialist/investigator to fill a vacancy in the

Medford area.Kelly previously served as a

branch manager with the Oregon Department of Justice, where she has provided leadership and oversight to the Division of Child Support office in Bend since 2013. For two years prior to becoming the branch manager, Kelly worked in the Bend office as a child support case manager.

Prior to working for the State of Oregon, she worked for two years as a physical security assistant with the Department of Defense. Kelly spent 13 years in the Army as a military police officer, which included a one year tour of duty in Iraq. During her tenure as an MP she had assignments in New York City, Maryland, and Texas with duties including personal security details, traffic accident investigations, and firearms instructor.

She has a bachelor’s degree with a focus on criminal justice and a graduate certificate in forensic science and crime scene investigation. She is originally from Southern Oregon and is looking forward to working in the communities where she grew up. Kelly began her new assignment Nov. 16 and will be working out of an office in White City. Welcome aboard, Kelly!

Staff Changes in Business Regulation Section

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MANAGEMENT GAME PL AN

You operate a profitable dealership, and everything should be running smoothly. But the business is running you instead – sucking your time like never before, thwarting growth and driving you nuts. It wasn’t supposed to be this way, and it doesn’t have to be.

What can you turn off to give you more time?

Basically, the key to finding time is working smart and developing smart systems that lighten your load. This gives you more time to address the paramount objective of growing your business.

Most “experts” will tell you there is no magic bullet to make dealerships successful. Some organizations have tailored systems, processes and inspections that make the big dogs (the focused) bigger. Inability or unwillingness to use these is what keeps the little dogs (the unfocused) chasing their tails.

Old-School Basics That Still Work

Basics of your success lie in traditional cornerstones – the “good old” glory days that were simpler and offered instant rewards, at least in comparison with the tech age.

You had your own methods that worked, and worked well. You had boatloads of repeat and referral business that made it all look easy. And you made it happen with minimal technology, and without social media and sophisticated search engines.

Those glory days of being back on the sales floor need to be replicated with your team, showing them the systems and techniques that succeeded. Your sales team and organization are reflections of your current systems and expectations.

Technology Alone Will Not Save You Time

Shouldn’t today’s cutting-edge technology drive

more deals? No. Your customers have the

same technology, so you now must

manage more systems in the same amount of time – leading to a potential case of A.D.D.

Being able to use technology in a smart way means combining it with a common sense approach

that allows you to manage all

systems, including your Internet

systems, without getting bogged down.A Big-Time Lesson in

Time ManagementI lost one of the most

important men in my life this year. My Uncle Jerry was extremely successful in his life, both professionally and

personally. Jerry was a landscape contractor – not a profession most consider glamorous. What he did, and how he managed himself and his time mattered, and led to his success.

During my high school summers in the 1970s, I worked for Jerry mowing ball fields. One day I told him his crew was “actually doing all the hard work, while he was just driving around in an air conditioned Thunderbird.” His memorable response was: “If I could run my business by pushing a lawnmower, I’d do it in a heartbeat. But I can’t. It isn’t the best use of my time. That’s why I hire you guys. Growing my business is what I do, and it pays a lot better!”

Jerry’s point remains valid in any industry. We are paid as business owners to take care of and grow our businesses, in tandem with reliable support systems that address the tasks and details contributing to business growth.

Differences Between Big Dogs and Little Dogs

While building my company, Daily Gameplan, I’ve witnessed thousands of dealers and managers from new, pre-owned, powersports, watercraft and RV industries. I’ve encountered successful and mediocre owners and managers, and they consistently fall into one of two categories:

Category 1: The Big Dogs. The dog wags the tail. They major in the majors.

Category 2. Little Dogs. The tail wags the dog. They major in the minors.

Both types of dealers and managers generally have the same abilities, talents, backgrounds and selling skills. It’s how they spend their time and stay focused on growth-oriented ideas that make one succeed over the other.

Almost always, it’s the least successful that waste time doing minor and trivial things while letting their people and systems manage them. Successful managers and dealers assign the smaller projects and tasks to others, and focus on growing the business and customer care.

Do the Math – and See How Much Extra Time You Can Find

Take an old fashioned 3 x 5 index card, or if you’re a techie

DON’T WASTE YOUR TIME ON THE TRIVIAL BY SCOTT BERGERON

use a note in your smartphone, and keep track of your hours for an entire week. Break down each task you’ve handled into one of three categories:

Category 1 - Is this something only I can do?

Category 2 - Is this something someone else can do?

Category 3 - Is this helping me grow my business?

If you find yourself performing too many tasks others should be doing for you, change. If you want to grow your business by 20 percent, find 20 percent more time to implement systems and ideas to make it happen. Let others take care of day-to-day maintenance.

Today’s Biggest Distractions That Waste Your Time

Do you change your train of thought with every bell, chime, buzzer and ping? Don’t deal with your voicemail or email every time any notification comes up. Silence them, and don’t let them distract from your big-picture focus.

Save time by programming your email inbox to automatically file specified messages so you don’t have to touch every email. Auto-forward certain emails to others. For example, any subject line with the word “service” can go directly to your service department.

Set aside certain times, such as 10 a.m. and 2 p.m., to open and handle your email, or assign someone to do it. Everything in between can wait in most cases. If you have someone else handling your email and there’s an emergency, they’ll tell you.

ConclusionDelegate, and build systems

that keep the trivial away from your desk. Stay on task, and don’t let others sidetrack you. Stay focused on the big picture, and the little things will be taken care of, if you hand them off to others and consistently inspect their Key Performance Indicators. You are the leader of your organization for a reason. Be smart with your business and your time, and it will pay off in incredible opportunities in the future.

Former dealer executive Scott Bergeron is the founder and principal of Daily Gameplan (www.dailygameplan.com), a national sales team productivity solutions provider. Bergeron is a major advocate of common-sense approaches to dealership front end challenges. Bergeron can be reached at 303.918.3169 or scott@dailygameplan.com.

Finding the Time to Make More Deals

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REGULATORY REPORTConsumer Financial

Protection BureauIn-person debt collection:

The bureau released a bulletin intended to provide guidance to creditors, debt buyers and third-party debt collectors about the risks of committing unfair or deceptive acts or practices when engaging in in-person debt collection at a consumer’s home or place of employment.

The bulletin warned certain in-person collection visits can cause or be likely to cause substantial consumer injury, depending on the facts and circumstances, because such visits can result in third parties learning a consumer has debts in collection, which can harm the consumer’s reputation.

A visit to the consumer’s workplace can result in negative employment consequences from third-party disclosure or if the consumer’s employer prohibits employees from having personal visitors, the CFPB said, adding workplace visits are likely to cause substantial injury if their likely or actual consequence is consumer harassment.

The bulletin, available at http://files.consumerfinance.gov/f/201512_cfpb_compliance-bulletin-in-person-collection-of-consumer-debt.pdf, came in conjunction with a settlement agreement with lender EZCORP, Inc., that alleged, in addition to other violations, the company made in-person collection visits that disclosed or risked disclosing consumer’s debt to third parties, causing negative repercussions at consumers’ places of employment.

The company must pay $7.5 million in restitution to 93,000 consumers and a civil penalty of $3 million, as well as stopping collection of an estimated 130,000 consumer accounts.

Department of LaborThe Occupational Safety and

Health Administration has released an online form for employers, available at www.osha.gov/pls/ser/serform.html, to report fatalities, hospitalizations, amputations or eye losses. Regulations require employers to report fatalities to OSHA within eight hours and hospitalizations, amputations and eye losses within 24 hours of the incident.

Reports can also be made by calling 1-800-321-6742.

Federal Trade CommissionNative Ads: The FTC issued

a policy statement on how consumer protection principles apply to different advertising formats, including native ads. A “native advertisement” is one with content that bears a similarity to news, feature

articles, product reviews or other material that surrounds it online.

The commission said it will evaluate native ads for transparency – the advertisement should not suggest or imply it is anything other than an ad. Some native ads might require a disclosure to prevent deception, but others may be so clearly commercial that disclosure is not necessary. Any disclosure must be clear and conspicuous, in clear and unambiguous language, as close as possible to the native ads, in a font that is easy to read and a shade that stands out.

A guidance document, available at www.ftc.gov/tips-advice/business-center/guidance/native-advertising-guide-businesses, was issued to assist with compliance.

Consumer Survey: The FTC is proposing to conduct a survey of consumers to learn about their experiences in buying and financing automobiles at dealerships. The survey, which will include interviews and purchase and finance documents, is designed to inform the commission about consumer protection issues that could be addressed through FTC action.

The FTC is seeking comments on whether the survey is necessary and useful, as well as ways to minimize the burden on consumers participating in it. NIADA will file comments by the mid-March deadline.

LEGISLATIVE REPORTFAST ActThe Fixing America’s Surface

Transportation (FAST) Act – a long-term transportation funding bill – became law Dec. 4.

The FAST Act includes no ban on sales of used cars with open recalls, a limited ban on renting cars with open recalls (applies to companies with rental fleets averaging 35 or more vehicles), and an exception from sending required annual privacy policy notices for businesses that have not changed their policy since their most recent notice.

In addition to those items, there are a few other provisions of interest to NIADA:

Sec. 24010, Authorization of Appropriations: Authorizes appropriations to the Department of Transportation for identification and investigation of vehicle safety concerns. This is a response to

HERE’S A RUNDOWN OF SOME OF THE LATEST GOVERNMENTAL ISSUES AND ACTIVITY AFFECTING THE USED CAR INDUSTRY FROM NIADA SENIOR VICE PRESIDENT OF LEGAL AND GOVERNMENT AFFAIRS SHAUN PETERSEN AND NIADA LOBBYIST SANTE ESPOSITO OF FEDERAL ADVOCATES.

NIADA Government REPORT

WASHING TON UPDAT E

the recall of 8.7 million General Motors vehicles beginning in 2014 for faulty ignition switches, a defect that has been blamed for more than 100 deaths.

At the request of the Secretary of Transportation, the inspector general assessed the processes of the National Highway Traffic Safety Administration’s Office of Defects Investigation and found them insufficient to ensure complete and accurate data. This section provides funding to improve the process.

Sec. 24103, Improvements on Availability of Recall Information: Within two years, DOT is directed to implement technologies and practices to ensure safety recall information is readily accessible to and easily used by the public. In addition, DOT is directed to study the feasibility of searching multiple VINs at a time to retrieve recall information. Such a system would make it much easier for dealers to have up-to-date recall information on their inventory.

Sec. 24104, Recall Process: Calls for DOT to issue final rule on electronic notification of recall information within 270 days, as well as periodically analyze vehicle safety recall completion rates and report to the Congress. The IG is directed to audit NHTSA management of vehicle safety recalls.

Other sections include the implementation of a two-year, six-state pilot program to evaluate a process in which the state informs consumers of open recalls at the time of the vehicle’s registration; a requirement for a DOT feasibility study of a technical system within a vehicle that indicates when the vehicle is subject to a recall; increases in civil penalties for violations of motor vehicle safety; allowing states to provide electronic odometer disclosure under certain conditions; limitations on data retrieval for vehicle event data recorders; whistleblower incentives and protections for manufacturer, part supplier or dealership employees or contractors who voluntarily provide information relating to any motor vehicle defect or violation of notification or reporting requirements likely to cause unreasonable risk of death or injury; and a requirement for NHTSA to annually provide a plan of its policy priorities, projected rules and guidelines.

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N.C. Dealer Takes Top Prize in NIADA Membership Challenge

North Carolina dealer Will Davis was the big winner in the first “inning” of the National Independent Automobile Dealers Association’s Membership Drive Challenge.

Davis, owner and president of G & B Auto Sales of Louisburg in Louisburg, N.C., sponsored 48 new members in September and October to claim the top award in the baseball-themed “Let’s Play Ball” campaign that began the yearlong initiative.

As his prize, Davis selected a complimentary full registration to the NIADA Convention for himself and a guest. The association’s 70th Annual Convention will be held June 13-16 at the Mirage in Las Vegas.

Three Texas dealers also claimed prizes for their recruitment efforts. Ahmed Belmeshkan of New Rio Grande Motors in Fort Worth bought in 32 new members and won a basketball autographed by his favorite team, the San Antonio Spurs; Wayne Meagher of M D Auto Sales in Grand Prairie (26) won a Fitbit Flex; and Michael Zak of Dixon Motors in Houston (22) won a free subscription to NIADA’s online dealer compliance training.

The baseball promotion, part of a commitment to increase membership spearheaded by NIADA president Frank Fuzy, added 234 sponsored new members to the association. The membership drive continues with a football-themed campaign that runs through Feb. 15.

ASSOCIAT ION NE WS

BASEBALL-THEMED CAMPAIGN PART OF A YEARLONG INITIATIVE TO ADD NEW MEMBERS

ASSOCIATION ADDS 20 GROUPS AND DEALER EDUCATION ASSETS, HIRES CHUCK BONANNO AS NATIONAL DIRECTOR OF 20 GROUP OPERATIONS

NIADA Acquires Assets of Leedom & Associates

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NIADA has taken a giant step toward expanding its 20 Group program, as well as its Buy Here-Pay Here training opportunities, by acquiring the assets and operations of Sarasota, Fla.-based Leedom & Associates, LLC.

The transaction, which was completed Dec. 14, transfers ownership of all Leedom 20 Groups, seminars, workshops, boot camps and consulting, as well as the Dealer Business Journal and the BHPH World Convention, to NIADA.

The BHPH convention will be folded into the annual NIADA Convention and Expo, which this year will be held June 13-16 at the Mirage in Las Vegas.

In addition, Dealer Business Journal will be re-branded and become a bi-monthly Buy Here-Pay Here-specific magazine that will run as a special section of NIADA’s national magazine, Used Car Dealer, beginning in April.

NIADA has hired automotive industry veteran and longtime LAA employee Chuck Bonanno as national director of 20 Group operations to run the new division and lead NIADA’s efforts to grow and expand its offerings.

“NIADA is excited to build on an award-winning 20 Group platform that has been 20 years in the making,” NIADA CEO Steve Jordan said, “and we’re excited about the opportunity to add an array of other training and educational services to meet the needs of the independent auto dealer.”

Jordan said the deal, which followed a year of research and negotiation, was approved unanimously by the NIADA executive committee.

“The more we got into the research and projections, the more we realized how these services align perfectly with NIADA’s mission to provide best-in-class dealer training and education and how it could expand NIADA’s annual Convention,” NIADA president Frank Fuzy said.

“Acquiring the BHPH

World Convention fits perfectly into NIADA’s desire to be the ‘big tent’ convention for all independent auto dealers. This will allow NIADA’s annual Convention to be a one-stop shop for Buy Here-Pay Here, retail, subprime, Internet and all manner of independents.”

Leedom & Associates CEO/president Chris Leedom, who founded the company in 1995 and served as its first 20 Group moderator, said he is confident NIADA will take the operation to another level.

“I have absolute confidence and certainty there is no better home for the 20 Group program and the related products and services than with NIADA,” he said. “With NIADA’s nearly 16,000 members in all 50 states and, most important, the commitment emanating from Steve Jordan and the executive committee, there is no doubt the 20 Group program will soar to new heights under the very capable and respected hands of Chuck Bonanno.

“I am deeply committed to ensuring the legacy of this most respected 20 Group program in the industry continues and thrives under the NIADA banner.”

Bonanno, who become Leedom & Associates’ first employee in 2001 and served as a 20 Group moderator in the BHPH and automotive finance space for 13 years, said he is thrilled to be involved in the next chapter of the program’s growth.

“I am honored to be given the opportunity to manage and grow this world-class program Chris worked so hard to build over the last 20 years,” Bonanno said. “I am excited to now be able to offer 20 Groups to all independent dealers regardless of their business model. I am firm believer that 20 Group participation affords dealers the best training available, as the group members serve as a board of directors whose goal is to ensure success of all members.”

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IT MUST BE A PRIORITY BY CHRIS KAHRS

M ANAGEMEN T M AT T ERS

Training: Revenue Priority or Corporate Risk

It’s a common corporate dilemma: What if we train people and they leave, taking all that knowledge – and investment – with them? But what if they stay and we haven’t helped them improve? Are the risks worth the reward?

Employee needs are corporate needs.

Balancing business needs against staff development is tricky. But no matter the product or service, companies need good, highly-skilled employees. Investing in the continued professional development of people is beneficial, both for employee morale and the corporation’s bottom line.

Training improves revenue.Training in the automotive

industry needs to be a priority and effective. According to Training Magazine, sales and product knowledge training lead

to increased revenue and market share, while service training can lead to better customer experiences and brand loyalty. HR Magazine reports companies investing $1,500 or more per employee per year on training averaged 24 percent higher profits than companies with lower yearly training investments.

Stop talking and start doing.Talking about training and

executing a defined training plan are not the same thing.

Training must be a priority within your organization. The auto industry needs to change our mindset from thinking training is a cost to be minimized to viewing it as an expense that can help our company achieve its goals. Learning and development programs need to keep pace with the shifting company goals.

That doesn’t mean that “training for training’s sake” is

a good use of resources. Each organization needs to critically consider its goals for the coming year, and determine how likely it is your staff can meet these milestones with their current knowledge. If you identify a gap, address it immediately – the sooner your staff is trained, the sooner you’ll be meeting or even exceeding annual revenue and sales goals!

This article originally appeared on NCM’s Up to Speed blog (http://blog.ncminstitute.com) and is reprinted with permission.

THE AUTO INDUSTRY NEEDS TO CHANGE OUR MINDSET FROM THINKING TRAINING IS A COST TO BE MINIMIZED TO VIEWING IT AS AN EXPENSE THAT CAN HELP OUR COMPANY ACHIEVE ITS GOALS.

“SERVICE IS KING”True/False: The digital revolution has blurred boundaries between sales territories and makes infinite competitive options available all day, every day.

True/False: Most consumers are not influenced by negative online reviews.

“FINDING THE TIME TO MAKE MORE DEALS”What is the basic key to finding time to make more deals?a) Hire more people.b) Work smart and develop smart systems that lighten your load.c) Sleep less.

True/False: To save time, all you need is the right technology.

How can you minimize the distraction of email?a) Auto-forward certain emails to others.b) Program your email inbox to automatically file specified

messages so you don’t have to touch every email.c) Set aside certain times to open and handle your email.d) All of the above.

“GO BEYOND MOVING METAL”True/False: Dealerships don’t benefit from investments in marketing and workflow technologies for their backend products.

True/False: To stay profitable in today’s market you must provide the products and services customers need while also utilizing technology to drive efficiency in all aspects of your business.

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Oregon Independent Auto Dealers AssociationOIADA ~ Oregon Independent Auto Dealers Association

Your only nationally recognized association since 1948. OIADA, here to help, support, educate and promote quality dealers in Oregon.

Here are the great benefits of OIADA membership: • Oregon Dealer News is delivered to our dealers monthly, filled with quality up to date

business articles.• Included in each Dealer News Magazine is 30 minutes towards continued education,

free to OIADA members, which now means returning eight answer sheets a year. This is a savings of $75 annually.

• OIADA Auction Punch Card: Our valued auction houses in Oregon, Washington and California are offering $50 savings on your buy and sell fees, a value of $1,100.

• OIADA offers members discounts on all meetings, educational programs and conventions, with an annual savings of over $200.

• OIADA members receive a discount on most forms, a savings of up to $100 or more annually.

• Quarterly regional dinner meetings, an outreach to bring programs, education and conversation to all areas within Oregon.

• Annual convention will host a variety of programs including eight or more hours of continued education. Quality Dealer of the Year Awards and Banquet. At a savings of $100 for OIADA members.

• Opportunities for OIADA members to be awarded Oregon’s Quality Dealer of the Year and to compete for the National Quality Dealer of the Year at our national convention.

• National education opportunities, becoming a Certified Master Dealer and more. • National access to Dealers 20 Groups .• OIADA has on contract a lobbyist to bring forth interests and to protect our dealers at

the state level. • OIADA hosts a required certified 8-hour Pre-License Class. Upon completion dealers

will receive the DMV required 8-hour certificate. • Title and registration classes, savings of $35 for OIADA members.• Help and support with your issues is just a phone call away. • Automatic membership with NIADA and the NIADA Used Car Dealer Magazine.• Access to NIADA’s annual convention.• Opportunities for scholarships, both state and national.• NIADA offers OIADA members a wide variety of discounts to members, from education

to everyday business expenses.

Contact OIADA at 503-362-6839 to start your enrollment for all these great opportunities as a member of OIADA.

Annual Savings$1100 Auction Punch Card$ 100 Forms$ 75 Education$ 100 OIADA Convention$ 50 Driven to Learn & Regional Meetings $ 1425 Bottom Line Savings

$325 Cost of Membership ~ OIADA helping you succeed.

Don’t let yourself run out of the forms you need to do business every day. OIADA has four ways for you to get forms:

Don’t be caught without a Secure Odometer Form or Secure Power of Attorney. These forms are DMV forms and each has a registered number assigned to the dealer who purchased them, so don’t lend yours out and do not borrow from your neighboring dealer.

When you purchase these forms, it’s a good idea to pull them out of the packet and slip a reminder near the bottom to call OIADA and order more. You can even add the phone number (503-362-6839) on the note.

Did you know that our members get a discount on most state forms? OIADA members save an average of $100 or more every year.

OIADA Forms StoreYOU CAN EASILY ATTAIN FORMS NEEDED FOR EVERYDAY BUSINESS

You can order forms any time of the day online at OIADA.com. All you need is an email address.1.You can stop by one of three locations within the Oregon auction houses during auction day.2.You can pick up forms at the OIADA office, located at 1475 Capitol Street NE in Salem.

3.You can call the OIADA Office Monday-Friday. We will ship your order that day. In most cases, it will be delivered to you overnight by UPS.

4.

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SIMPLIFIED NEW MARKET STRUCTURE BY USED CAR NEWS

Manheim Reorganizes Operations

Manheim has implemented a simplified new market structure. The company segmented its physical operating locations into two divisions: Local & Mobile and National.

To lead the Local & Mobile auction division that will serve local franchise and independent dealers, Manheim selected Alan Lang as division vice president. Lang joins Manheim from NextGear Capital, where he served as senior vice president of operations and was responsible for business development strategies across all business segments. These local sites include the Go Auto Exchange.

Mike McKinney is leading the National division as division vice president. McKinney joined Manheim in 1993 and was most recently the regional vice president for Manheim’s East Operations.

The National division will continue to offer a full spectrum of physical and digital services to Manheim dealer clients from designated Northeast, Southeast, Central and West regions.

In many cases, these locations will also support the company’s vehicle solutions. This includes its newly created retail solutions offering, a service that helps dealer clients focus on their used car operations, showrooms and service bays while Manheim delivers front-line ready vehicles.

THE COMPANY SEGMENTED ITS PHYSICAL OPERATING LOCATIONS INTO TWO DIVISIONS: LOCAL & MOBILE AND NATIONAL.

What are your products?

If you ask most auto dealers to explain the products they sell, more than likely, you will receive a laundry list of makes, models and body types. But is that really the answer?

Many dealers see themselves as purely moving metal, and get a sense of satisfaction when looking out over a lot full of empty parking spots on Monday morning. Moving metal is definitely the foundation of

your business, but in a more complex market where vehicles are viewed as commodities by consumers, sometimes the profit is made with the sale of ancillary products, such as financing and insurance.

It’s not rocket science, right? So why do so many dealers spend countless dollars on advertising their inventory with the best websites containing 20 plus pictures per vehicle, provide their employees with the best technology for tracking inventory and contacting customers, only to have a sentence on their website about backend products? Yet they expect their finance managers to use antiquated methods to maintain up to date pricing and forms for multiple backend products.

How could the process be improved?

For many dealerships a customer is first introduced to finance and insurance products once they‘ve entered the finance office ready to purchase their new car.

Put yourself in their shoes. The customer has done possibly months of research viewing cars online all hours of the night, test driving cars at other dealerships, looking for recall notices. Now they are ready to purchase a vehicle and we expect them to make a split second decision to buy a backend product costing $1,000 or more based on a short explanation and the brochure handed to them. With this sales model it’s amazing customers are purchasing dealers’ backend products.

Offering customers detailed information about the finance and insurance products you sell in the same places they are viewing information about the vehicle is a great first step. Treating these products with the same detailed descriptions and information as you do each individual vehicle is key.

Another great step is providing your finance manager with an efficient method of obtaining the most up to date pricing, program guidelines and forms. Inviting a customer back to the dealership to re-sign all of their loan documents and warranty forms because you quoted the wrong premium or sold them a product that was not applicable to their vehicle could easily kill the entire deal

and leave you with a disgruntled customer.

To go a step further, once you start selling a significant volume of backend products, remitting the premiums and enacting coverage can be a daunting and frantic task. Equipping your back office with the ability to electronically remit premiums and enact coverage is crucial to having an efficient and profitable program. The last thing you want is for your customer to file a warranty claim only to find out their warranty coverage is not yet in force.

You also cannot overlook the fact that customers do cancel these products and processing cancellations can be a burden. Having the ability to electronically transact with your backend provider to process cancellations can make the process much less painful for your dealership and give you the ability to instantly and correctly identify your chargebacks.

For the most part, auto dealerships have traditionally invested heavily in the marketing and technology needed to promote the sale and financing of vehicles. Many dealerships could benefit greatly from key investments in marketing and workflow technologies for their backend products.

Having real-time access to backend product details and pricing electronically can make you a more efficient provider of these products. However, adding another portal or system to your portfolio can also add complexity to the process. It is important to find a solution that provides product marketing, pricing, documentation, premium remittance and coverage activation all in the same place that will integrate with your DMS provider or loan document management solution.

To stay profitable in today’s market you must provide the products and services customers need while also utilizing technology to drive efficiency in all aspects of your business. For a lack of better words, “work smarter, not harder.” Chet Heughan is director of AppOne® Risk Mitigation Services and Indirect Lending for Wolters Kluwer Financial Services. For more information, please visit www.wolterskluwerfs.com.

DE AL ER BEST PR AC T ICES

CREATE A SUCCESSFUL BACKEND SALES PROCESSBY CHET HEUGHAN

Go Beyond Moving Metal

HAVING REAL-TIME ACCESS TO BACKEND PRODUCT DETAILS AND PRICING ELECTRONICALLY CAN MAKE YOU A MORE EFFICIENT PROVIDER OF THESE PRODUCTS.