PRSRT StandardU.S. Postage
PAIDDALLAS, TEXASPermit No. 2079
DEALERNEWS
V I S I T U S AT W W W. O I A D A . C O M
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 F E B R U A R Y 2 0 17
REP RESEN T ING A L L AU T O, T RUCK , T R A IL ER , R V A ND P OW ER SP OR T DE A L ERS OF OREGON
S TAT E A F F I L I AT E
ELECTION PROVIDES INSIGHTS TO MORE EFFECTIVE CAR SELLINGTechnology Alone Isn’t the Holy Grail
PA G E 14
M A N A G E M E N T G A M E P L A N
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PRESIDENTTommy Wilson, Jr.
EXECUTIVE VICE PRESIDENT Siamak Lotfi
BOARD OF DIRECTORS1ST VICE PRESIDENTJim Weaver
SECRETARYGary Brooks
TREASURERSalvador Alvarez HerreraZamora Auto Sales
CHAIRMAN OF THE BOARDGary Sargent
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 360-882-8162COMMERCIAL CLEANINGJaniKingMorgan Thomas541-868-8080PRIVATE AUCTIONS
ASSOCIATE MEMBERSBrasher’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 98002253-737-2200 Manheim Seattle Auto AuctionRay Priest206-762-1600
PUBLIC AUCTIONS & AUCTIONEERSCommercial Industrial AuctioneersRay Beal503-760-0499Insurance Auto Auctions, Inc.Ryan Hall503-253-1500Petersen Auction Group of OregonCurt Davis541-689-6824Rick Leathers AuctioneersRick Leathers503-668-5326
Woodburn 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 McConkey503-653-8000Nationwide 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 May503-238-6488
FLOORPLAN FINANCINGLobel FinancialTom McConkey503-653-8000Floorplan XpressJosh Chandler503-621-9260NextGear CapitalRobert Torbet503-358-3911INSURANCE & BONDINGHecht & Hecht Insurance AgencyEvelyn Hecht503-542-1131KMI 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
INSIDE 05 ............................................. When Good Recon Goes Bad06 ................................................ NIADA Government Report08 ...............................................Autotrader Names Top Tech08 .............................................................Building Your Bench10 ....................................Embracing the Hashtag Generation14 .............................Election Provides Insights to Car Selling
WHAT’S NEWCMD Dates AnnouncedClass dates for NIADA’s industry leading Certified Master Dealer program have been announced for the upcoming year! Look for a class coming to your area! Dates include Feb. 9-11 in Portland, Ore.; May 15-17 in Atlanta; Sept. 12-14 in Dallas; and Dec. 11-13 in Tampa, Fla. Visit www.niada.com or contact Diann Flanders at 888-906-8283 or [email protected] for more information.
ADVERTISER’S INDEX ADESA .....................................................................................9BMW Group Direct .................................................................7CarMax Auctions .................................................................... 5DAA Northwest/Seattle ......................................................IFCLobel Financial ........................................................................ 3Manheim ...............................................................................11NextGear Capital .................................................... Back CoverVAuto ................................................................................... IBC
OFFICEOregon Independent Auto Dealers Association 9150 SW Pioneer Ct Ste. H Wilsonville, OR 97070800-447-0302
NIADA HEADQUARTERSNATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TV2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838OIADA Dealer News is published monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203. 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 authors and do not necessarily represent the views of OIADA Insider or NIADA. Likewise, the appearance of advertisers, or their identification as members of NIADA , does not constitute an endorsement of the products or services featured. Copyright © 2017 by NIADA Services, Inc. Inc.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Jacinda Timmerman • [email protected] Friedlander • [email protected] LAYOUT Christy Haynes • [email protected] Nieman Printing
SAFETY WATCH
FORD RECALLS SEDANS FOR SEAT BELTSMay Fail to Properly Restrain
Ford Motor Co. is recalling 603,392 model year 2013-16 Ford Fusion vehicles manufactured Nov. 2, 2012, to July 31, 2014, and 2013-15 Lincoln MKZ vehicles manufactured Nov. 14, 2012, to July 31, 2014.
In the event of a crash, heat from the deployment of a seat belt pretensioner may cause a front seat belt anchor cable to fail. If the driver or front passenger seatbelt cables cannot properly restrain the front seat occupants, they would be at an increased risk of injury.
Ford will notify owners, and dealers will apply a protective coating to the seat belt cable, free of charge. Remedy parts are expected to be available by the second quarter of 2017. Ford’s number for this recall is 16S42.
www.oiada.com February 2017 / OIADA 5 4 OIADA / February 2017 www.oiada.com
ACCELERATEBY GWC WARRANTY
WHEN GOOD RECON GOES BAD Solve Your Recon Woes
Few things can be more of a headache for used car dealers than the reconditioning process. Far too often, it can lead to delays, forfeited front-end gross, poor relationships within your dealership and other consequences that ultimately hurt the overall bottom line.
It sounds simple enough: Acquire vehicle. Prepare vehicle. Sell vehicle.
So how can something so simple cause so many problems? It’s when good recon goes bad. You can solve your recon woes, however, by making small tweaks to your dealership that will have a tangible payout at the end.
It’s all about culture. Too many times you hear stories of the
back and forth between those acquiring the inventory and those getting it ready to go on the lot. Good recon starts when everyone stops pointing fingers.
Cultivate a culture of collaboration. If you’re acquiring inventory, ask your service team what you should look for in a vehicle at
auction. If you’re getting a vehicle frontline ready, ask about deadlines and find out why a specific turn time is so important.
Don’t get overconfident. If you’re estimating how long it will take
to recondition a vehicle, be honest with yourself. Time is money, and you can’t accurately appraise and price your vehicle if you’re building in five days of holding costs when it will really take 10. Having a trusting and cooperative culture will help everyone feel comfortable enough to be transparent with these types of details.
Know the dollars and cents. It’s estimated that holding costs can
range from $30 to $50 dollars per day. Take the average figure from that range ($40 per day) and do the math for what you spend regularly on reconditioning costs. At an average of six recon days for 40 vehicles a month, you’re looking at $9,600 per month in holding costs alone. At that rate, that’s over $115,000 per year.
You can even think of this on a per vehicle basis. At that same holding cost, a vehicle that takes five extra days to recondition cuts a $3,000 gross profit into a $2,800 gross profit – all this without even factoring in the actual parts and labor costs of the reconditioning itself.
Knowing these numbers will help everyone in the dealership be accountable for their role in reconditioning.
Communicate. It sounds simple, but so many
reconditioning processes go bad when management, sales and service simply aren’t on the same page. Things like repair approval delays and misplaced vehicles can add days to the reconditioning process (see above for how much that costs you). Getting all your departments on the same page can help in this process. It can be as simple as creating a spreadsheet that tracks each vehicle’s progress. This way, you’ll be able to see where delays happen and quickly get your reconditioning back on the rails.
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WASHINGTON UPDATE
NIADA GOVERNMENT REPORTLatest Government Issues and Activity
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 Key Advocates.
REGULATORY REPORT BY Shaun Petersen
CONSUMER FINANCIAL PROTECTION BUREAU
On Dec. 1, the CFPB released its rulemaking agenda through Oct. 19 – before the election. The results of the election could have drastic impact on the agenda. Some of the highlights include:
Arbitration rule: The agenda said the CFPB is reviewing and considering comments on its proposed rule banning pre-dispute arbitration agreements with class action waivers and is considering February 2017 as an estimated date for a final rule.
Payday, title and deposit advance loans: The CFPB released a proposed rule in June. NIADA filed comments to express our position that the rule did not apply to retail installment contracts for purchase money security interests.
Debt collection: In November 2013, the CFPB issued an Advance Notice of Proposed Rulemaking concerning debt collection, about which NIADA filed comments. In
July 2016, the CFPB issued proposals it was considering for a debt collection rule for third-party collectors. They are not intended to apply to a first-party creditor collecting its own debts.
In the agenda, the CFPB said it will convene a panel of small businesses to consider rulemaking focused on companies that collect their own debts sometime in 2017.
DEPARTMENT OF JUSTICEVolkswagen settlement: DOJ, the EPA
and the state of California announced a settlement with Volkswagen AG, Audi AG, Porsche AG and related entities regarding 3.0-liter diesel vehicles sold or leased with emissions defeat devices.
For 2009-12 Volkswagen Touareg and Audi Q7 models, Volkswagen is required to offer to buy back the vehicles or terminate leases, and must also offer a modification to substantially reduce emissions, if one is proposed by Volkswagen and approved by regulators.
For 2013-16 vehicles affected, including the Touareg, Q7, Porsche Cayenne and Audi A6 Quattro, A7 Quattro, A8, A8L and Q5, if VW demonstrates it can make the vehicles compliant with the certified exhaust emission standards, it will have to fix the vehicles and will not be required to buy them back.
Volkswagen is also required to spend $225 million to fund projects that will reduce emissions of nitrogen oxide.
Vehicle owners and lessees will receive updated information from Volkswagen, Audi and Porsche concerning their available buyback or modification options once the settlement is approved by the court. Information is also available at www.vwcourtsettlement.com and www.audicourtsettlement.com.
Dealer arrested: A New Jersey auto dealer was charged with allegedly defrauding $2 million from more than 140 Russian citizens who were customers of his auto sales business.
Sergey Kapustin, owner and president of Global Auto Group, Effect Auto Sales and G Auto Sales in Elizabeth, N.J., had Russian language websites that offered for sale luxury vehicles, including Mercedes and Lexus models priced below market value that could be shipped to Finland for easy delivery to Russian citizens – if they agreed to pay full price up front for the vehicles.
Kapustin is Russian and his websites were geared to buyers in Russia, the Ukraine and other former Soviet republics who believed they were getting a “good deal” from a countryman who could be trusted to follow through once the purchase price had been paid.
After the buyers wired the full price to one or more bank accounts controlled by Kapustin, he allegedly gave them a litany of excuses for delay in delivery. Allegedly, Kapustin had neither possession of nor title to the vehicles being sold.
At some point, the victim was offered a different, often inferior car, burdened with added shipping and storage costs. The victims often wired additional money in an attempt to rescue the car from storage. Many of the vehicles that did make it to customers were allegedly salvage or flood vehicles.
DEPARTMENT OF LABORWhistleblower rule: OSHA finalized its rule
for handling retaliation complaints filed by whistleblowers in the automotive industry, which became effective Dec. 14.
In accordance with legislation passed by Congress in 2012, motor vehicle manufacturers, parts suppliers and dealerships are prohibited from retaliating against employees who provide information about motor vehicle defects or violations of safety standards; file, testify or assist in any proceeding concerning alleged motor vehicle defects; or object to or refuse to participate in any activity that person believes is a violation of a safety standard.
Retaliation includes firing, reduction in pay or hours, discipline or similar sanctions.
Employees who believe they have been subject to retaliation have 180 days from the date of alleged retaliation to submit a complaint to OSHA.
OSHA recordkeeping: A final rule that took effect Jan. 18 backs OSHA’s longstanding position that an employer’s duty to record an employee’s injury or illness continues for the full five-year record-retention period.
The amendments in the final rule add no new compliance obligations and do not require employers to make records of any injuries or illnesses for which records are not already required.
LEGISLATIVE REPORT BY Sante Esposito
CFPB REFORMRep. Jeb Hensarling (R-Texas) is talking
about including his Financial CHOICE Act in the reconciliation bill Republicans are considering using to repeal Obamacare and introduce tax reform.
Hensarling’s bill would rein in the CFPB’s authority by, among other provisions, making the bureau subject to the annual Congressional appropriations process, replacing its single director with a five-member commission, requiring it to obtain permission before collecting personally identifiable consumer information and limiting its authority to prohibit consumer financial services or products it deems “abusive” and to prohibit the use of arbitration agreements.
With the new Congress in session, all of the bills and the bills not enacted by the previous Congress have “died” and must be re-introduced – including a House-passed bill that would rescind the CFPB’s controversial 2013 auto financing guidance and specify a more transparent and accountable process. That bill’s language is included in the Financial CHOICE Act.
On Dec. 1, the CFPB released its rulemaking
agenda through Oct. 19 – before the election.
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MARKET WATCHBY USED CAR NEWS
AUTOTRADER NAMES TOP TECHTrending Auto TechnologyWith new automotive technology constantly emerging and 2017 model-year vehicles now flooding dealer lots, the editors at Autotrader recently named their Must-Have Automotive Technology for 2017.
Automakers like Mercedes-Benz, Tesla and Volvo are rolling out self-driving systems that can put many autonomous features together in one advanced package, appealing to even the most die-hard auto enthusiasts, especially when it comes to the more boring parts of driving like commutes or long highway trips. While Tesla’s Autopilot may currently be among the most advanced (and better-known) of these systems, several other automakers offer an impressive look at the future, including Volvo’s Pilot Assist system.
Formerly only seen on ultra-high-end sports cars, adaptive suspension is making its way into other models, allowing you to custom tailor your car’s suspension based on the experience you want to have, with modes
like “comfort” and “sport.” For drivers who often find themselves critiquing a car’s ride, or for those who spend a lot of time on rough roads or driving tight corners, the ability to change your driving experience with the push of a button can be well worth the cost.
Many new vehicles now offer a suite of autonomous safety tech, including lane keep assist, automatic forward collision braking and adaptive cruise control - and the great news is that these systems are getting more affordable and are no longer only reserved for pricey luxury cars. Affordable new compact models like Honda Civic, Hyundai Elantra and Mazda Mazda3 all feature impressive autonomous safety tech features.
Say goodbye to the little sticker on the corner of your windshield that reminds you of your next oil change - now many cars deliver this information and more in a handy app, making it easier to keep track of everything. Some automakers like Hyundai even have the Hyundai Assurance Car Care App, which not only tells you when your vehicle needs its next service, but it can even schedule it for you.
Gesture control is the wave of the automotive future. It allows you to control various features of your vehicle using gestures instead of pressing a button, touching a screen or using voice commands. Currently BMW is the only automaker to
offer this feature (and only on its high-end 7 Series), but expect this to reach more vehicles in the coming years.
Huge screens seem to be replacing many gauges and buttons in the cockpit of new cars, operating similarly to a smartphone with ultra-sensitive touch and the ability for details to be reconfigured. While some may worry about the future reliability of such screens in lieu of simple buttons, experts praise the more clean presentation and easier-to-use infotainment systems versus former complex controls or tiny buttons.
Electric drivetrain technology is now becoming more widespread and delivers not only the obvious fuel-economy benefit, but also performance benefits. Modern exotic sports cars like the Acura NSX, BMW i8, Porsche 918 Spyder and LaFerrari all feature electric drivetrains. For everyday drivers, features ranging from fully electric to plug-in gas/electric hybrids mean several options for the driving masses.
MANAGEMENT MATTERSBY CHRIS KAHRS
BUILDING YOUR BENCH STRENGTHCreate Future Leaders Ready to Step In
Addressing personnel changes and challenges can occasion lengthy conversations. I’d say that the most often asked question is, “Where do I find my next manager?” As dealerships continue to experience rapid turnover and acquisitions – and promote good employees into management – many organizations struggle to find replacements for vacancies.
Prepare for the unavoidable.It’s generally when they’ve lost an
employee that dealers realize they have no one in their organization to assume that
particular role. Dealers are forced to search outside their organizations for a candidate who shares their business’ values, culture, work ethic and vision. This hunt can be exhaustive, and the process is disruptive to the daily operations of the organization.
Why your team is critical.To use a sports analogy, each team has
its starters suited up and ready to go for each game. When one of those starters gets hurt, a “bench player” is the next man up to assume that role. That bench player has been preparing for a scenario like this and is ready to perform. Yet in a lot of automotive organizations, there isn’t a bench player who has been coached to assume the role of the starter should there be the need.
How to create a strong bench.Weak bench strength is a problem for a
number of reasons. First, it means you must spend time and money to find an outside replacement. And, more important, that unnoticed bench player is likely to leave. I honestly believe one the greatest threats to
your dealership is for an overlooked bench player – one who is not being groomed for advancement – to leave. And they will. Sensing the lack of opportunity, individuals like this will typically depart for greener pastures should they have the opportunity, thus leaving your organization searching for yet another replacement.
Here are my suggestions to improve your bench strength:
• Train and educate from the top down to develop future organizational leaders.
• Cross train for diversity.• Create peer-leader relationships.• Create a career path with clear and
defined advancement opportunities.• Train, coach, motivate and encourage
personal development.Filing managerial vacancies can be
challenging for many organizations. However, you may already have an individual eager and ready to perform if given the opportunity. By building your bench, you can create future leaders from within your organization. Work on developing one to strengthen your overall talent pool.
Chris Kahrs brings more than 17 years of experience to NCM, with extensive expertise in multi-facility management and dealer operations. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.
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MANAGEMENT MATTERSBY ALISHA STEWART
EMBRACING THE #HASHTAG GENERATIONHow to Retain Talented Millennials in the Workplace
Millennials get a bad rap. We’re called loud and opinionated, lazy and entitled… the list goes on. And employers seem wary of hiring us, especially given reports about our low loyalty, making it hard to find the right job. As a millennial employee, I have experienced the backlash of these assumptions, but I think a lot of our negative press misses the point: Our opinions may challenge your dealership, but we want to bring our passion for change and innovation to the workplace!
And it’s going to happen. The truth is that we are the future of business, and by 2020 millennials will make up 50 percent of the world’s workforce. Here are a few suggestions to help your dealership retain your talented millennial employees and embrace the cutting-edge ideas that they bring with them.
Pay us fairly and give us room to grow.Fair pay and growth opportunities are
paramount to the retention of millennials. As a group, we expect to progress in your company – and achieve leadership roles – faster than Gen X or older groups. When we don’t achieve this, we leave.
A business’s failure to offer advancement results in costly and constant turnover. While it may seem easy to take the cheaper route, there are many employers out there who will provide fair compensation and a clear career path, and millennials are eager to find them.
Embrace social media in all aspects of business.
We all know millennials live their lives
online. Whether you’re looking to hire or looking to engage, I can’t stress enough the use of online tools that are available to you, and 99 percent of them are free!
Let your employees write for the company newsletter or blog. Use LinkedIn and Indeed to recruit talent. Post employee recognition or business events on Twitter, Facebook, and Instagram. Other ideas include purchasing a custom Snapchat filter for company parties and hosting a weekly vlog on YouTube. The options are truly endless, and they all help your millennial employee feel engaged with your dealership!
Allow us to use our voice.I’d say millennials have a deep desire or,
more appropriately, a need to let our voice be heard and share our views. Why do you think we’re so active on social media?
A few ways to encourage that:• Give us opportunities to lead in roles
that bring active change to the company, such as seats on committees and inclusion in forums.
• Listen to us and be open to ideas! Just because something has been done a certain way for an extended amount of time does not mean it is the most effective or efficient way to keep doing things. Use our creativity to advance your business.
• Allow us to be creative by embracing technology.
• Let us be involved. Here at NCM, we have an Ownership Culture Committee that not only plans social events for the company but also participates in charity and giving back. Believe it or not, millennials do care about things bigger than themselves. Allowing them to give back and get involved will reap huge rewards in employee morale and culture.
Alisha Stewart began her career at NCM Associates in September 2015. She graduated from California Baptist University in 2010 with a Bachelor of Arts degree in Communications and Public Relations. This article originally appeared on NCM’s Up to Speed blog (blog.ncminstitute.com) and is reprinted with permission.
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CHARTYOURCOURSE
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OIADA FORMS STOREYOU CAN EASILY AT TAIN FORMS NEEDED FOR E VERYDAY 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.OIADA members receive a discount on most forms, a savings of up to $100 or more annually. You can order forms any time online at OIADA.com. All you need is an email address.
4.
OIADA ~ 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.
OREGON INDEPENDENT AUTO DEALERS ASSOCIATION
ASSOCIATION NEWS
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:
ASSOCIATION NEWS
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.
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I certify to OIADA that I have personally read these articles in The Oregon Dealer News Magazine for February 2017. STOP!! Before you sign and send this form, make sure you have answered and completed all the quiz questions to receive Continued Education Credits.
My Name ____________________________________________________________
____________________________________________________________________
Dealership Name ______________________________________________________
Dealership # __________________________________________________________
Dealer License Expiration Date: (Month)_____________________________________
(Year)________________ Signed: _________________________________________
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FAX TO: 503-364-7331 MAIL TO OIADA at 9150 SW Pioneer Ct Ste H, Wilsonville, OR 97070
OI ADA C ON T INU ING EDUC AT ION P ROGR A M
READ & RESPOND AND CERTIFY BELOWCOMPLE TE THIS TEST AND CERT IF Y BELOW THAT YOU HAVE READ THE ART ICLES FOR FEBRUARY 2017.
“WHEN GOOD RECON GOES BAD”True/False: Cultivating a culture of collaboration contributes to good recon.True/False: Holding costs can range from $30 to $50 dollars per day.
“BUILDING YOUR BENCH STRENGTH”Which of the following was NOT listed as a tip to improve your bench strength?a) Train and educate from the top down to develop future organizational leaders.b) Train, coach, motivate and encourage personal development.c) Hire often.d) Cross train for diversity.
True/False: By building your bench, you can create future leaders from within your organization.
“EMBRACING THE #HASHTAG GENERATION”How can you retain your talented millennial employees and embrace their cutting edge ideas?a) Pay them fairly and give them room to grow.b) Embrace social media in all aspects of business.c) Allow them to use their voice.d) All of the above.
“ELECTION PROVIDES INSIGHTS TO MORE EFFECTIVE CAR SELLING”True/False: Human decision-making is complicated, prone to whimsy and spontaneity, and can be influenced by factors that no technology-driven profiling will uncover.
True/False: Non-verbal clues such as basic body language gestures are unimportant.
OIADA CONTINUING EDUCATION PROGRAM AUCTION NEWSBY AUTO REMARKETING STAFF
MANHEIM SEATTLE HONOREDBest in Class Performance
Manheim sites across the country were honored by Element Fleet Management for best-in-class performance at the recent 18th annual Remarketing by Element Awards. Manheim led the field of winners this year, taking 10 national and regional awards for outstanding achievements and innovative practices in vehicle remarketing.
“Remarketing by Element appreciates all of our partner auctions and commend those that are the best of the best,” said Remarketing by Element vice president Paul Seger. “We congratulate all of our winners, especially Manheim Ohio for achieving the top honor as Auction of the Year.”
Highlighting the ceremony was Manheim Ohio winning the Gold Award as the top national auction in Element Fleet Management’s remarketing program and three locations taking top regional auction honors – Manheim Statesville, Manheim Kansas City and Manheim Nevada. In total, Element Fleet Management honored 10 Manheim locations, including:
• Manheim Ohio – Gold Award• Manheim Statesville – Silver Award,
Northeast• Manheim Kansas City – Silver
Award, Midwest • Manheim Nevada – Silver Award,
West• Manheim Pennsylvania – National
Technology Award, East• Manheim Riverside – National
Technology Award, West• Manheim Central Florida – Above
and Beyond Award, Southeast• Manheim Chicago – Above and
Beyond Award, Midwest• Manheim Phoenix – Above and
Beyond Award, West• Manheim Seattle – Outstanding
Promotions Award, West “Being recognized by our clients for
helping them meet their business goals is one of the highest compliments Manheim can receive,” said Manheim senior vice president of sales Tim McKinley. “These awards are a testament to our locations’ commitment to delivering top-notch service and sales results. We are honored to receive these awards, and we are so very proud of the teams who earned them.”
sponsored by
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14 OIADA / February 2017 www.oiada.com
MANAGEMENT GAMEPLANBY SCOTT BERGERON
ELECTION PROVIDES INSIGHTS TO MORE EFFECTIVE CAR SELLINGTechnology Alone Isn’t the Holy Grail
Donald Trump’s election proves that state-of-the-art technology, by itself, doesn’t provide all the answers. Based on the vote totals, the highly sophisticated, technology-driven polls missed the mark.
In that same vein, relying on technology alone to sell cars isn’t the Holy Grail that some make it out to be.
With all its bells and whistles, technology can be undone by people who deliberately distort their answers, provide incomplete/inaccurate information, or change their minds.
Case in point: a dealer’s data mining shows that a prospect wants a red crossover SUV, and details the supposed preferences about everything from color to desired storage capacity. Acting on this profile, the sales specialist steers the prospect toward SUV crossovers on the floor.
Suddenly, the would-be buyer bolts toward a fire-engine red two-seater convertible on the showroom floor, and wants to test drive it. We see it every day. What they say they want and what they buy are sometimes two different things.
Ask away… then listen.Human decision-making is complicated,
prone to whimsy and spontaneity, and can be influenced by factors that no technology-driven profiling will uncover. That said, what does it take to help ensure the sale – no matter what has gone before?
Good questioning, listening skills and intuition all contribute. Properly done, this will both confirm what the prospect says he prefers and compare it to other feedback that might dictate a different recommendation. (Trump is credited with intuition and listening skills that told him what his audience wanted, and how to respond to “close the sale.”)
For example, the prospect may “prefer” an SUV crossover because of its practicality and suitability for a growing family. But there’s another voice screaming for the excitement and freedom of having that hot sports car. A savvy salesperson will then throw out the technologically-driven “personal playbook” and become a good investigative reporter.
Questions can be along the lines of:1. What pressures have moved you in the
direction of this SUV?2. How many of those pressures exist
because of the need to satisfy other people (e.g., family)?
3. If you were just buying for yourself, what direction would you go?
4. Is this vehicle going to be a primary
family car or serve as a backup, impacting reliance on it for multiple-person transportation?
5. How often do you need to haul goods? What types and volumes of goods do you haul?
6. Are you more interested in the car as dependable transportation, traveling or thrill-seeking?
7. How big a factor is safety?8. How big a factor is MPG?9. How big a factor is fast acceleration
and overall power?10. How big a factor is economy of
ongoing maintenance?Obviously, these are just some basics.
The key is to get a clearer idea of what the prospect’s priorities are, then confirm budget, assemble them into recommendations, and see what solutions you can provide to meet the needs and wants.
Take into account both verbal and non-verbal clues.
A key part of getting to clarity in terms of helping a prospect is listening very closely to how the answers are phrased, tone of voice, and emotions being conveyed. It’s also critical to watch body language. A prospect displaying openness and overt acceptance or guarded response and hesitation can be seen in basic body language gestures.
To some of us old school car guys, all of this may sound elementary – because that’s how we came up through the business, before there were all the advanced ways to “figure out” prospects before they entered a showroom floor.
Today, between order-takers who just answer questions without asking any of their own, and “know-it-alls” who presume to know their prospects’ total picture based on a digital profile asking confirming questions, these are highly important skills.
Get creative with solutions.Once the salesperson has as full a picture
as possible, provide ideas that can range from conventional to way out of the box. It may require looking beyond the obvious, including present inventory, to find answers that will resonate with a would- be buyer.
In the example above, let’s say the salesperson determines the prospect really wants the sports car but is resigned to the more practical SUV crossover. Based on the intelligence gathered, the SUV meets most of the needs/preferences. But, what he really yearns for is the excitement of the convertible sports car that can go 0-60 in under four seconds.
It’s easy enough to stop with the SUV. After all, it’s the better objective solution for the circumstances at hand. But, as we all know, car buying is also about the emotional thrill of adventure, open air, high speed, and whatever appeals to that prospect.
Why not wrap practicality and performance in a creatively structured “two-car deal?” Find a used SUV crossover that meets the practical needs, and then move on to a sports car (likely older and lower-priced) for the “want” side of things. While two-car deals can be tricky, weigh all the options in the direction that suits your buyer’s ability, wants, and then needs, in that order.
Technology itself can fool salespeople into only one solution. As your deal ebbs and flows during the “landing stage,” keep the ideas flowing in your head on how to best structure the deal that will work best based on abilities, wants, and needs.
If the deal doesn’t necessarily work out with all your sales expertise, don’t be afraid of a tried and true process, known as the T.O., or turnover. A T.O., or manager introduction, can help move the deal along while the prospect is still there. There may be other options a manager or even another salesperson can think of that you haven’t. In any case, give the prospect a reason to return. Then follow up periodically when another option presents itself on the lot or a special deal can be offered based on other factors.
Capture the conversation on a database.One area where technology can be
extremely helpful is using a CRM, or other technology, and using it consistently. Get in the habit of recording information immediately after your contact’s visit, call, or email. A CRM is only as good as the information going in.
If you prefer writing things down, the secret is in the consistency – even if it’s a 3x5 card. Combining this with post-visit intel can make a powerful follow-up, and creates more customers for life.
Moral of this story: Salespeople who rely too much on technology and not enough on good interviewing skills and instincts will find themselves losing sales they could have won.
Former dealer executive Scott Bergeron is the founder of Daily Gameplan.com, a sales team performance company. Scott can be reached at 303.918.3169 or [email protected].
Why not wrap practicality and performance in a creatively structured “two-car deal?”
14 OIADA / February 2017 www.oiada.com
