Miss_0512_O

inside• CASH IS KING IN BUY HERE-PAY HERE• AUTO SHOPPING GOES MOBILE• AIMEE’S BUYERS GUIDE QUIZ

page

6 used vehicleScience of

M I S S I S S I P P I I N D E P E N D E N T A U T O D E A L E R S A S S O C I A T I O N

SPARK PLUG

V i s i t u s a t w w w . m i s s i s s i p p i i a d a . c o m

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

MAY/JUNE 2012

Sourcing & Sales

Miss_0512.indd 1 4/17/12 4:28 PM

Miss_0512.indd 2 4/17/12 4:28 PM

http://www.lafcaa.com/

MAY/JUNE 2012 T H E S P A R K P L U G

3

w w w . m i s s i s s i p p i i a d a . c o m

FEBRUARY CLASS GRADUATES Adams, Patricia Jackson MSAdcox, David ADC Cars & Trucks Morton MSAnderson, Bryan Freeman Auto Sales Bartlett TNAnderson, Kristen Freeman Auto Sales Bartlett TNClem, Tyson M Mid South Wholesale Cleveland MSDay, James R Motor Cars of MS Inc. Flowood MSGatlin, Crystal Gulfport MSGavin, Leon Gulfport MSHardwick, Patrick Hardwick Motors Corinth MSHodges, Channing W. Hodges Enterprises Greenwood MSKirk Jr., Raymond Earl Benton MSLee, LaBarron Hattiesburg MSLetrent, John A. Memphis TNLowe, Christopher Horn Lake MSMartin, Chris Thorn Road Garage Houston MSMilbury, Mark Memphis TNMiller, Teddy Pass Christian MSMiller, Cherise P. Singleton’s Used Auto Ridgeland MSParkerson, Billy J French Camp MSParkerson, Billy K French Camp MSReed, Josh Brookhaven MSRoland, Patricia Horn Lake MSThomas, Bryan Yazoo City MSTurner, LaQueda RKL Auto Sales Coffeeville MSWelch, Denny Welch Car Crushing SoSo MSWiggins, Casey Grenada MSWilliams, Johnny 4 J Transfer Florence MSWilson, Anthony Hattiesburg MSCannady, Ashley P-31 Auto Sales Jackson MSAnderson, Dalwanna D&A Sales Port Gibson MSHarris Jr, Larry Potts Camp MSMcClendon, Latonia Joe’s Used Cars Waynesboro MSNowell, Karyn Best Deal Resale Vicksburg MSDel Pilar, Ausencio Del Pilar Motors Pascagoula MSTurner, Mychal A. Affordable Auto Charleston MS

MARCH CLASS GRADUATES Alliston, Matt Brandon MSBarr, Joseph Oxford MSBateaste, Keithen Crosby MSBerry, Donnie R Crystal Springs MSBrownlow, David Olive Branch MSClinton, Charles Jackson MSDraper, Rick Autotech of Canton Canton MSFlanagan, Michael M.A.F. Auto Sales Terry MSFullwood, Robert Como MSGaskamp, Misty D Brandon MSHall, Darius Greenville MSHarris -Richardson, Shamika Hattiesburg MSHays, R. Wade Hays Enterprises Mendenhall MSHays, Sandra Hays Enterprises Mendenhall MSJohnson, Starling Hattiesburg MSKennedy, Anthony R Gulfport MSKennedy Jr, Anthony Gulfport MSKnight, Kevin Taylorsville MSLangston, Tracy Greenville MSLuke, Darren Greenville MSMcCaleb, John Haven Brandon MSMcDaniel, David Paul Tupelo MSMitchell, Katrina Gulfport MSMyers, John Myers Group Ripley MSMyers, Reginald Petal MSQuinn, Don McComb MSRichmond, Iverson Madison MSRobertson, Reagan Hattiesburg MSRobinson, Nathan Baldwyn MSScales, Robert Hernando MSSegrest, Robert Natchez MSSiddall, Scott Tupelo MSStanton, Sonny Stanton’s Autos Holly Springs MSStianche, Barbara Ellisville MSStianche, Joe Ellisville MSStovall, AJ Mott Enterprises Holly Springs MSTraweek, Jessica Grady Hays Auto Wiggins MSTraweek, Joel Grady Hays Auto Wiggins MSWatson, Andrew Corinth MSWilson, Anthony Hattiesburg MSWilson, Destin C CC Auto Sales & Fin Pelahatchie MSWoodard, Vaughn Nettleton MS

Congratulations to those who have attended and completed our pre-licensing seminar required by the Department of Revenue.

Greetings!Hope all of you have enjoyed a successful spring selling season. I always

enjoy the fast pace of this time of year and naturally wish it would last longer. Because of the busy season, we knew it would be wise to suspend our

February and March district meetings. Now we are excited to resume those meetings with an April meeting scheduled in the Starkville-Columbus district and a May meeting in the Southaven-Horn Lake district. For locations and times, please contact me or Star at the MIADA office. Hope to see you there.

We are very interested in your ideas and concerns. Only through such meetings can information be shared, resulting in action to improve this ever-changing industry of ours.

On a somber note, we would like to express our condolences to the family of Bill Seal, who passed away recently. Bill was a good friend, a good businessman and an asset as a former director for many years to our association. He will be sorely missed.

Please keep in mind our upcoming MISS-LOU Convention, which will be hosted by Louisiana this year in beautiful New Orleans. The convention will be held in August, and further information can be found on pages 18-19 and on our website at mississippiiada.com

Please make every effort to be part of this convention and represent our state. Let’s make a good showing for Mississippi.

If you are glancing through this publication and are not a member of the MIADA, please let me strongly encourage you to join. The benefits of being a member are numerous. The information and tools at your disposal will greatly help you in your business endeavors. You will also be a member of the National lADA.

If you would like to learn more about our association, please do not hesitate to contact me or Star at 601-939-9866.

Best wishes to you all. Hope to see you at our future district meetings and at the MISS-LOU Convention this summer.

Jimmy BolingMIADA president662-226-5637

Message From Our President

Miss_0512.indd 3 4/19/12 1:44 PM

T H E S P A R K P L U G MAY/JUNE 2012

4


In Memory of MIADA Past President Bill Seal

INSIDE

BOARD OF DIRECTORS

MAGAZINECONTENTS

ADVERTISERSINDEX

NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM • WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. • ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR [email protected] SPARK PLUG IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDPENDENT 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 76006-5203. THE STATEMENTS AND OPINIONS EXPRESSED HEREIN ARE THOSE OF THE INDIVIDUAL AUTHORS AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE SPARK PLUG, THE MISSISSIPPI INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION, 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 2011 BY NIADA SERVICES, INC. ALL RIGHTS RESERVED.STATE MAGAZINE MGR./SALES Troy Graff • [email protected] Andy Friedlander • [email protected]/PRODUCTION MGR. Christy Haynes • [email protected] Nieman Printing

MIADAOFFICE1705 OLD WHITFIELD ROAD, SUITE APEARL, MS 39208PHONE: 601-939-9866 Email: [email protected]: www.mississippiiada.com

ADESA ................................................................................ 5Ally ............................................................ Inside Back CoverAutoTrader.com ....................................................Back CoverBerkshire Risk ................................................................. 15 Chase ............................................................................... 12First Consumers Financial ................................................ 16LA’s 1st Choice Auto Auction ................... Inside Front CoverManheim.com .................................................................. 11NIADA Certified ............................................................... 14Nowcom ............................................................................. 7Protective ........................................................................... 9United Acceptance .......................................................... 13Voisys ................................................................................ 22West Insurance ............................................................... 17

06 Provisioning: Used Car Science10 Auto Shopping Goes Mobile12 Cash Is King in BHPH21 Aimee’s Buyers Guide Quiz22 Compliance Overdrive

Chairman of the BoardLester R. Howell301 Clinton BlvdClinton, MS 39056601-924-3718

PresidentJimmy BolingP.O. Box 1271Grenada, MS 38901662-227-5637

Vice President Aaron Williams1428 Mississippi Dr.Waynesboro, MS 39367601-735-3916

SecretarySteven Watkins 5660 I-55 South Byram, MS 39272601-923-8600

TreasurerMadalene Daniell1500 Broadway Dr.Hattiesburg, MS 39402601-264-2210

WHAT’SNEWR A2Z EDUCATION SERIES - AutoZoneEducating the independent dealer to deliver the highest quality service levels to your customers, manage your shop efficiently, train your technicians and maximize profits.niada.tv

R NATIONAL TIRE SAFETY WEEK: June 3-9National Tire Safety Week is a nationwide event sponsored by the Rubber Manufacturers Association to raise consumer awareness about tire safety, help consumers keep their tires safe and demonstrate the industry’s commitment to motorist safety.Visit www.betiresmart.org and fill out the form to receive your free National Tire Safety Week kit that includes brochures and other materials.

Gas Price Scenario $4.00 $4.50 $5.00 Segment % $ % $ % $ Intermediate Compact 1.7% $179 6.0% $638 10.4% $1,102Intermediate Midsize 0.8% $103 2.1% $262 1.8% $233Near Luxury 0.3% $69 -0.2% -$38 -3.0% -$650Large Car 0.3% $39 -0.3% -$34 -3.2% -$415Compact Utility -0.3% -$37 -2.8% -$408 -8.7% -$1,272Luxury Midsize -0.3% -$73 -2.9% -$751 -9.0% -$2,313Midsize Van -0.4% -$49 -3.2% -$453 -9.7% -$1,355Midsize Utility -1.0% -$188 -6.4% -$1,144 -16.5% -$2,959Large Pickup -1.5% -$275 -8.6% -$1,540 -21.3% -$3,817Large SUV -1.6% -$387 -8.9% -$2,148 -22.0% -$5,298

NADA Used Car Guide Chart Impact of the Rising Cost of Gas on Used Vehicle PricesExpected change in used vehicle price under certain gas price scenarios

Source: NADA Used Car Guide

William A. “Bill” Seal, Jr., age 65, of Long Beach, went to be with God on Sunday, March 4.

Mr. Seal, a lifelong resident of Long Beach, was the owner/operator of Quality Auto Sales of Gulfport, formerly known as Airport Motors. He was a member of MIADA, serving as president and most recently as a board member.

He was a devout member of St. Thomas the Apostle Catholic Church, where he was a Lector/Commentator, Extraordinary Minister of Holy Communion, parish council member, school board member, and liturgical committee member. He was a member and past Deputy Grand Knight and Grand Knight of the St. Vincent de Paul Council 4898 Knights of Columbus and the Fr. John O’Connor Assembly 4th Degree Knights of Columbus Faithful Navigator.

He served the state council as district deputy of the Eighth District. He was a life member of the Carnival Association of Long Beach and served as MC for the annual Mardi Gras Ball and parade for more than 33 years.

He was preceded in death by his parents, William A. and Ruth Inez Seal, a brother, Donald Seal, and a sister, Shirley White. He is survived by his loving wife of 45 years, Phyllis Seal; his children, Wendy (Lewis) Walker, William Edward “Eddie” Seal, William A. “Billy” (Leigh) Seal III and William Anthony “Bear” (Ashleigh) Seal; brothers Richard Seal and Mike Seal; eight grandchildren; numerous other relatives and many friends.

Automotive marketing intelligence firm Polk has announced it is providing Internet lead conversion reporting to Autobytel, provider of third-party auto lead generation, for its dealer and OEM customers.

Autobytel and Polk worked together to create a solution that defines vehicle sales conversion rates for Autobytel auto leads. It includes conversion reporting at a variety of levels, including OEM, vehicle segment type and those leads that are dealer-assigned.

The partnership allows Autobytel to provide transparency in lead quality to its customers and establishes quantifiable metrics for return on investment. It also enables dealers to better understand lost opportunity revenue and identify Internet lead competitors, helping them align their follow-up strategies with customers.

For more information, visit www.polk.com or www.autobytel.com.

Polk Provides Internet Reporting to Autobytel

Miss_0512.indd 4 4/19/12 1:45 PM

Miss_0512.indd 5 4/17/12 4:28 PM


6


The New Science of Used Vehicle Sourcing & Sales

These days, dealers are looking for every edge to find quality inventory for their lots. Americans are holding onto their cars longer than ever, causing higher prices at auction and a smaller crop of quality vehicles on which dealers can bid.

According to a new study by R.L. Polk, length of vehicle ownership recently hit an all-time high: 71 months for new vehicles and 50 months for used cars and trucks. The study also noted that people holding onto their cars longer has resulted in decreased used-vehicle supply.

In this crowded marketplace, you need to assess your strategy for long-term success if you want to outperform your goals and beat the competition. To help, consider this new method dealers are using to better evaluate and acquire in-demand units others might pass up. It’s called provisioning.

What Is Provisioning?Provisioning is defined as the efficient

allocation of resources to achieve a successful mission. To be clear, the mission for dealers is to operate a financially successful used car operation.

Put simply, for your business to thrive, you need to know what cars to buy, what to pay for them and where to find the right units for your inventory. Provisioning is a new way for dealers to set their used vehicle

strategy (size of inventory investment, ROI/turn expectations) and efficiently pursue the vehicles necessary to execute their plan successfully.

Provisioning is like a science because it provides a methodical approach to buying used vehicles. It helps evaluate certain types of information vital to the success of your used car business.

What types of information?Demand: The number of people in your

area searching online for a specific vehicle.Interest: The average conversion rate

from search results pages to vehicle details pages for a vehicle in your area.

Volume: The number of units recently sold in your area.

Market days supply: The current available supply of similarly configured vehicles and the rate at which such vehicles have been sold over the past 45 days.Profitability: The spread between

average asking price and wholesale price – the auction price vs. list price in your market.

Availability: The number of units currently available at auction.

Experience: The success of your recent sales for a specific make/model.

Analyzing that information on your own isn’t easy. But technology and tools can help you determine the types of vehicles that will deliver the best return on investment every month, giving you a huge advantage on your competition.

What to Pay and Where to Find ItOnce you determine the cars that sell

fast in your market, you’ll want to make sure you pay the right price for them. At auction, there aren’t too many obvious deals these days, but you can still find gems with a little guidance.

Many dealers rely on professional buyer solutions like those by vAuto, for example. Those services use in-market data to help determine which units are worth your investment. They can even help you identify the price point at which a vehicle will get the most attention, get you the profit you need and cover your reconditioning costs so you

still hold gross.If you’re a dealer in the Northeast in the

winter, you might have difficulty finding enough SUVs to keep your inventory fully stocked. Similarly, a dealer in the South probably can’t find enough convertibles in the summer months. Wherever you are, there’s inevitably a shortage of certain cars in demand. So it can pay to look outside your immediate area for quality inventory.

Use online auctions to help keep your lot full of vehicles you know will sell. Online auctions can be some of the best places to find cars at good prices without the hassle of waking up early, checking pages of run lists and elbowing past other dealers to find your spot in the lane. Instead, sit back with your coffee and bid from the comfort of your home or the office.

How to Reduce Acquisition RiskOf course, if you bid online, you won’t

be able to “kick the tires” and inspect the vehicles in person, so you’ll especially need to consider the condition and history of those vehicles. Otherwise you might end up paying too much for a car that seems perfect but has reported damage or another incident that could affect its retail value.

The key is knowing the cars with good service histories that merit your bids, since those vehicles often sell for better prices.

Many successful dealers run a vehicle history report on every car they consider buying as part of their standard procedure to assess a vehicle’s condition and spot any related acquisition risks. Whether through online auctions or in-person trades, this triage ensures the dealer and his buyers feel more confident that the inventory placed on the lot will turn fast and make top dollar.

With declining supply and increasing demand for quality vehicles, there is little room to make acquisition mistakes on vehicles you “had a feeling about” but didn’t take the time to carefully vet. Provisioning helps you avoid these mistakes and turns your ability to efficiently and effectively evaluate and acquire used vehicles into a competitive advantage.

PROVISIONINGBY DALE POLLAK AND CHAD GOODSON

Miss_0512.indd 6 4/17/12 4:28 PM

IndustryNews

PROVISIONING

Miss_0512.indd 7 4/17/12 4:28 PM


8


Here’s the latest from the National Independent Automobile Dealers Association’s team of lobbyists and advocates in Washington, D.C.

NIADA Annual Leadership ConferenceOn March 22-23, Federal Advocates

– NIADA’s lobbying firm – attended the NIADA Annual Leadership Conference and participated in a panel presentation on advocacy efforts and status regarding various meetings and legislation, including S.1449 and a proposed auction sale amendment. The formulation of an Association PAC was also discussed.

D.C. MeetingsOn March 7, NIADA met with staff

members of the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission.

With respect to the CFPB, there are three areas of immediate interest and direct interest to the association.

The first is the regulatory role the CFPB will play with respect to motor vehicle financing. While there has not yet been any activity with respect to this issue, NIADA, through Shaun Petersen, the association’s legislative/regulatory/compliance counsel, will continue to monitor the process.

The second issue relates to education of servicemembers. Pursuant to the law, the CFPB is required to ensure “servicemembers and their families are educated and empowered to make better informed decisions regarding consumer financial products and services offered by motor vehicle dealers, with a focus on motor vehicle dealers in the proximity of military installations,” and “complaints by servicemembers and their families concerning such motor vehicle dealers are effectively monitored and responded to, and where appropriate, enforcement action is pursued by the authorized agencies.” NIADA will be pursuing options/opportunities for assisting the CFPB in that effort.

The third area of interest pertains to the Consumer Advisory Board that the CFPB is

directed to establish. The board is charged with advising and consulting with the bureau “in the exercise of its functions under the federal consumer financial laws, and to provide information on emerging practices in the consumer financial products or services industry.”

NIADA is monitoring the membership appointment process to the board with interest. Legislative committee chairman Chris Martin has submitted an application for appointment.

Executive Agencies Regulatory Review

Shaun Petersen will be leading the regulatory review effort on behalf of NIADA. He will be reporting on the FTC meeting noted above and developments in the regulatory process.

Federal entities of interest include the FTC, EPA, NHTSA, IRS and SBA. Early last year the President issued executive orders 13563 and 13579, which directed all federal agencies, including independent agencies such as the FTC, to prepare plans for the periodic review of existing regulations in order to determine whether those regulations should be modified, streamlined, expanded or repealed.

In September, as an example, the FTC issued a 10-year review schedule and accelerated its review of a number of rules and guides in response to recent changes in technology and the marketplace. NIADA, where appropriate, will coordinate its review efforts with the National Automobile Dealers Association.

Auction SalesDiscussions are ongoing regarding

consumer and law enforcement issues related to auction sales. Pending those discussions, an April 9 meeting with the Senate was cancelled at the request of Senate staff.

That stakeholder meeting was to include, but was not limited to, the NHTSA, FBI, Department of Homeland Security, staff of members Pryor, Lieberman, Blumenthal,

Waxman and Butterfield, the National Auto Auction Association, NADA, NIADA and representatives of various auction companies.

An attempt was made by Sen. Pryor (D-Ark.) to file and pursue an amendment to the Senate Highway Bill that would require auction companies to make available certain information to bidders at the time of sale and certain information that would have to be maintained and possibly made available to the public after sales. Following NAAA negotiations with the senator, he agreed to not file or pursue the amendment pending a dialogue with the affected stakeholders.

While the amendment/issue does not on its face necessarily directly impact NIADA, we will continue to monitor the situation to ensure the association’s interest are protected.

S.1449, the Motor Vehicle and Highway Safety Improvement Act

S.1449 is the bill that had an onerous recall provision/process included in an earlier version of the bill considered last Congress. We lobbied for its exclusion and the language was not part of the July 2011 introduced version of the bill. Working in conjunction with NADA, committee members were contacted on Dec. 13 to guard against any attempts to reinstate the language. No effort materialized. As currently constructed, nothing in the bill directly impacts the automobile industry.

S. 1449 was included in S.1813, the omnibus Highway Bill that passed the Senate last month. In the House, jurisdiction over the S.1449 issue is shared between the Transportation and Infrastructure Committee and the Energy and Commerce Committee and is expected to also be addressed within the context of the House Highway Bill.

To date, there is no comparable provision in the bill being drafted. Timing and final resolution regarding it are also uncertain although mid-April may be the target date for House floor action. The current program, which expired March 31, was extended until June 30 by Congress to allow more time for final resolution of a highway bill.

NIADA Legislative Team Update

Miss_0512.indd 8 4/17/12 4:28 PM

NIADA Legislative Team Update

Miss_0512.indd 9 4/17/12 4:28 PM


10


BY DANI LUNSFORDDANI LUNSFORD IS A NATIONAL SALES AND MARKETING EXECUTIVE WITH SHOWCASE PUBLICATIONS, INC. SHE HAS BEEN IN THE RETAIL AUTOMOTIVE INDUSTRY FOR 14 YEARS, WORKING IN SALES, SERVICE, E-COMMERCE MANAGEMENT AND AS A CONSULTANT TO IT COMPANIES AND DEALER GROUPS. SHE CAN BE REACHED AT [email protected].

Smart Dealers Should Aim Their Ads at Smartphones

Did you know that men aged 30-49 do more mobile shopping than other age groups? That 50 percent of the popular Groupon’s business over the next couple of years will come from mobile devices? That Starbucks has taken more than 3 million micropayment transactions?

A Leger Marketing survey reported one in 10 respondents said they’d rather lose their mother-in-law than their cellphone.

Those trends and figures are not only interesting, they affect mobile shopping for cars and trucks as a whole. Understanding the upcoming trends will help car dealers see how important mobile sites, mobile applications and mobile marketing campaigns will be.

In 2011, mobile auto consumers climbed 60 percent. Used car sales are soaring, and more people are looking to buy thanks to a comfort level they have achieved with the state of the economy.

According to Google/Compete Research, 81 percent of smartphone users access the Internet on their mobile devices, and one of three searches has a local intent. Out of all the mobile shoppers in the world, 17 percent are looking at automotive websites and 53 percent of those end up at a dealership buying a car.

Because shoppers use their mobile phones to search for “stuff” in time of need, you have an opportunity to reach them when they are ready to buy or shop your dealership. According to Go Mobile, adding GPS capability to mobile phones has transformed the phone into a targeted weapon focused on the immediate surroundings.

According to the 2011 Auto Shopper Behavior Study by Google/Compete/R.L. Polk, today’s auto shoppers research and decide faster, use searches to navigate and compare, and expect dealer sites to be helpful.

The study also determined:• Mobile shoppers watch videos to discover

and compare brands. • Some 81 percent of mobile auto shoppers

make a decision within three months. • New car purchasers tend to search for

“Offers” first, followed closely by “Build Your Car,” “Locate a Dealer” and “Search Inventory. ”

• More shoppers than ever are searching inventory on third party sites – 42 percent of them searched “Inventory” first, then “Model Information” (32 percent) and “Trade-In” (29). “Request a Quote” and “Reviews” were next, cited by 22 percent.

• The most frequent research conducted on

mobile phones was comparing features at 55 percent, followed by price comparisons at 47 percent and reading general car and truck information at 44 percent.

• The advertisements cited as most useful by mobile users were online videos at 52 percent, sponsored or paid search engine listings (49 percent) and, surprisingly, newspaper ads at 45 percent.

All that data should speak loudly to car dealers. We must start following shoppers through this complex yet simple path to purchase rather than relying on traditional online destinations alone.

Car dealers need to examine their digital presence and understand navigation is the key to helping auto shoppers do research through many mobile portals.

So here are six things to take to the next level:

GPS-based marketing: Location-based services are mobile marketing platforms dealers can use to engage shoppers and develop promotions.

Dealer apps: A basic app, including inventory, costs about $300 per rooftop, but it’s worth its weight in gold. You can also allow users to accept notifications and send out weekly sales and alerts.

Mobile-friendly websites: A developer can easily add codes to your home page to adjust to tablet or cell sizes, allowing your website to display content quickly and optimize even on a very small screen.

Mobile ad campaigns: Target customers who are looking to fill an immediate need – oil changes, tire rotations, a special of the week, manager’s special or aged inventory on sale.

QR or 2D codes: Incorporate QR codes on all web pages and in newspaper or magazine ads. A QR code is a symbol with an embedded URL. When smartphone users scan it, it drives them to the URL. Some areas to advertise are: browse a website, send an email, make a phone call, Google maps, Foursquare venue, latest tweet, follow us on Facebook, Wi-Fi network inside dealership, or any text or message you want the customer to see.

YouTube channel: According Google/Compete, video ads drive initial interest – online videos ranked as the most useful ad format and a significant influence of brand choices. The last bombshell is that YouTube led two of three shoppers to the car/truck they ended up buying, indicating that YouTube is a leading driver to get

customers to notice your vehicles. The new iPhone has an assistant named Siri.

She finds answers to questions from the user.If a mobile phone user asks, “Where is the

closet dealership?” Siri will deliver a specific answer with directions. She will only deliver one answer.

The problem from a car dealer’s standpoint is she is not a search engine or a database. She will only deliver qualified filtered results. Siri reportedly uses Wikipedia and Yelp, among other websites, as information providers. Each of those sources work differently. Wikipedia provides encyclopedia-style information but can be modified by any user. Yelp is a national review community.

Dealers should make it a point to claim their information on those sources and keep watch on reviews and information regarding their dealership. Many believe Apple’s goal is to move completely away from Google – there are rumors about a partnership with Bing to help power Siri (so make sure your dealership is listed with Bing).

In a study by the Arora Report, 40 percent of Siri users reported no need to search Google. That provides evidence those users changed their habits, and as a result, Google searches could decline as Siri becomes widely available.

The latest trends and statistics indicate the mini-computers we call phones will be at the heart of any and all tasks in the near future, especially auto shopping. That makes a difference for advertising purposes, including the manner in which dealers reach potential customers.

Convenience is king, and phones are becoming the go-to resource in our everyday lives. Today’s users are looking for detailed vehicle information, interesting videos and compelling mobile ads to direct their search for a vehicle.

This is a once-in-a-lifetime generation changer. As smartphones get smarter and consumer expectations rise, the automobile industry needs to offer the services customers are expecting. All dealerships’ advertising needs to be geared toward the mobile phone war.

Miss_0512.indd 10 4/17/12 4:28 PM

Miss_0512.indd 11 4/17/12 4:28 PM


12


Cash Is King in Buy Here-Pay Here

The two keys to Buy Here-Pay Here are risk management and cash management. Both, as always, are hot topics. More so now with everything that is going on in the automotive industry and the economy in general.

But cash – and the availability or the management thereof – seems to be on everyone’s mind, and in some cases closing their doors.

Cash is not as available as it was this time last year. The good news is it is still available, which isn’t true in some other unfortunate industries. It’s just not as easy to find or secure, not to mention afford, since the rates we enjoyed a year ago are no longer there.

Local banks and credit unions appear

to be the best sources for lines of credit. The large regional and national banks still seem to be staying out of the car business. Local banks and credit unions have smaller organizational charts and usually less turnover, leading to a more stable decision-making future.

The three necessities to securing a line with those sources are patience, persistence and preparation. The days of simply walking into a bank and securing a line of credit on a handshake and a promise to pay are long gone. Local banks and credit unions have learned from the mistakes of the regional and national banks and have become smarter and more sophisticated in their approval process.

Patience is needed because local banks and credit unions need a complete education on our industry. Not everyone is familiar with what we do and how we do it. In some cases, it can be hard to convince a bank to loan money to a business that will in turn extend credit to someone who has shown little ability to repay it. They need a K-through-12 to make their decision and continuing education after the line is secured.

Persistence is needed because the

Miss_0512.indd 12 4/17/12 4:28 PM


13


As our inventory profit margins get smaller (and we all can tell you why), our expenses must also decrease. After all, we cannot spend

more than we make or we will be out of business, despite what is said in Washington D.C.

So where do we cut expenses?Before you consider dropping your MIADA

membership, consider what non-compliance in an ever-growing government regulatory environment will cost you.

On Monday I received a call from an auto auction. That had been contacted by the IRS for an 8300 audit within the next 30 days. The auction knows it is compliant, but while the effort to prepare has begun, the business must still be run.

Are you compliant? Are policies and procedures in place for a quick response? Bypassing federal regulatory compliance or poor recordkeeping could cost you thousands in fines by the IRS.

On Tuesday, a new dealer’s office manager called with many questions about online auctions, purchasing or selling in state vs. out of state, sales tax percentages and title transfers.

We know the Mississippi Bureau of Revenue tax regulations, but are we sure we are compliant? Are policies and procedures in place for submissions and retention of completed paperwork? Who do you call with these questions?

You call MIADA.Today, I opened an email from Equifax for another

compliance review. The request began with the following: “We are committed to providing the highest level of quality and integrity in the industry. Accordingly, we perform compliance reviews on our customers as part of our procedures to comply with credit reporting laws, including the Fair Credit Reporting Act, 15 U.S.C. §1681, et seq. Our records indicate that on the dates listed you accessed credit file information on the consumers appearing below…”

So I will now pull my web site manager away from marketing our business and we will find the signed credit applications of five customers from December. Again, we are compliant, but our business of marketing inventory must stop while we meet the regulations on our industry.

Are the “risk-based pricing” additions of the Dodd-Frank bill complete as well? Are policies and procedures in place for a quick response?

Finally, I opened an email from our National Independent Auto Dealers Association with the headline, “Mac Murray, Petersen & Shuster named NIADA’s New Legislative Counsel.” This firm will serve as our legislative/regulatory/compliance counsel. NIADA chief executive officer Mike Linn explained this firm “will round out our strategy to work more closely with key federal regulatory agencies, staying ahead of rapidly expanding agencies like the CFPB (Consumer Finance Protection Bureau).”

One member of the firm, former Ohio Attorney General Betty Montgomery, said, “Dealers and

business leaders are still watching how the CFPB, attorneys general and the FTC will work together under new guidelines and how they will affect their businesses in an age of expanding government. Our team is well versed in working with regulators across agency lines to protect the interests of small businesses and we are honored to work with the NIADA more closely to bridge the gap between auto dealers and federal regulators.”

NIADA knows what its 18,000 member dealers nationwide will need to stay compliant and focused on their ability to make money rather than spend it on compliance and new government regulations. What we need is help and that is what both associations offer.

As Mississippi dealers, we need to focus on what we do best – buy and sell cars. We need to hire someone to specialize in teaching us compliance with current regulations and fight to protect us from more regulation.

With your membership in MIADA, which includes NIADA membership as well, you are hiring the best to do the part we like least – teaching us to stay compliant and protecting us from more regulation in the future.

Madalene Daniell Daniell Motors VPMIADA board treasurer

WHY SHOULD I CONTINUE MY MIADA MEMBERSHIP IN 2012?

days of lending institutions seeking out beneficiaries of their generosity have just about ended, especially to those dealing with subprime clientele. BHPH dealers have to be willing to go door-to-door and sell our business to lenders. In most cases, it will take knocking on more than one door. And once in the door, it will take more than one cast to reel them in.

Preparation is the determining factor to success, initially and in the future. Because banks and credit unions have become more sophisticated in their decision-making, BHPH dealers have to provide more sophisticated information to them. Performas, financial statements and cash-flow analysis are a few examples of data that needs to be provided up front to obtain a line and on an ongoing basis once a line is secured.

The key to maintaining a good relationship with a capital source is providing as much information in the beginning as possible and to keep doing so on a regular basis so they never have to ask for anything. Full and accurate disclosure is paramount. Put yourself on the other side of the desk. What would like to know if it was your money? In this instance, there really is no such thing as too much information.

Having all the access in the world to capital will be worthless unless you know how to manage it. In today’s tight credit market, BHPH dealers have to manage not only their credit lines, but cash in general. Not understanding how to manage available cash has closed more BHPH dealers’ doors than any other cause. It is that important.

The best tool to effectively manage cash is common sense. Don’t spend what you don’t have. Too many dealers feel the need to live the lifestyle. Success can breed contentment and contentment can breed laziness, which usually leads to failure.

A cash-flow model helps keep common sense at the forefront. The model can be very detailed or simplified to cover the basic cash-in, cash-out categories. Either way, it should show a one-, three- and possibly five-year analysis, and should be updated at least annually or when there has been a change to the overall business model.

Adding a location, an increase or decrease in ACV, or even a change in underwriting standards can impact cash needs. The model should be realistic. Pie in the sky and wishful thinking serve no purpose.

Having the model is only the first step. Having the discipline to manage to it is the challenge. Without it, a dealer

might as well have the “sell some cars, collect some money” business plan and hold on for dear life – a plan that is not used by successful BHPH dealers.

The model should be looked at on a monthly basis and compared to actual performance. That way, adjustments can be made immediately to either the model or the personnel in charge of managing to it.

Cash is king in our business. Not only the availability of it, but the effective management of it as well. There are BHPH dealers who operate without the need of a credit line because they understand how to manage cash. There are BHPH dealers who operate within credit lines effectively because they understand how to manage cash. But there are too many dealers experiencing capital reductions and, in some cases, all-out line calls because they don’t understand how to manage cash.

Having the patience, persistence and preparation to obtain and secure cash, then the discipline to manage it, will take a load off your mind and help keep your doors open.

BY BRENT CARMICHAELEXECUTIVE CONFERENCE MODERATORNCM ASSOCIATES [email protected]

Miss_0512.indd 13 4/17/12 4:28 PM


14


14

NIADA has selected Warrantech, an AmTrust Financial Services company, to administer its all-new NIADA Certified Pre-Owned Vehicle Program.

The NIADA CPO Program is the premier certification option for independent automobile dealerships seeking to effectively compete in the certified pre-owned vehicle market.

Warrantech, a leading provider of extended service contracts for the automotive industry, will administer the plan, address all post-sale customer needs, and customize dealer and consumer marketing materials. The company will work closely with NIADA’s state affiliates to launch the program nationwide in May 2012.

“Our research is telling us that 65 percent of consumers begin their vehicle search looking for a certified pre-owned vehicle, and that number is growing,” NIADA CEO Mike Linn said. “NIADA is committed to helping our members give customers what they are looking for and offer a top-notch buying experience for car buyers in their communities. We see the NIADA CPO Vehicle Program as a primary way for NIADA members to further separate themselves from their competitors and give customers a better vehicle with additional peace of mind after the sale.”

With three unique plans under the NIADA CPO program, dealers will be able to select the option that is right for their market and their customer base. These options include:• A three-month/3,000-mile limited warranty that

includes 36 months/36,000 miles of engine and air conditioning component coverage.

• A six-month/6,000-mile limited warranty that includes 36 months/36,000 miles of engine and AC component coverage.

• A 12-month/12,000-mile limited warranty.The NIADA CPO limited warranty options

include coverage of engine, air conditioning, turbocharger or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components and seals and gaskets.

For more consumer choice and confidence, the NIADA CPO limited warranty options above can be supplemented by adding the extended NIADA Total Care or the NIADA Total Care Plus coverage, which includes front and rear suspension, brakes, fuel system, cooling system and additional electrical components.

“In re-tooling the NIADA CPO Program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational

demands of our dealers,” NIADA Chief Operating Officer Steve Jordan said. “Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims operation, nationwide sales footprint and long term commitment to support the success of our dealer members made the partnership decision easy to make.”

In addition to the coverage, NIADA and Warrantech will provide dealers with comprehensive sales training on how to use the CPO program to sell more vehicles and extended service contracts, as well as marketing support that includes in-store signage and promotional materials.

“Warrantech is honored to have been selected by the 66-year old NIADA as its CPO program administrator,” Warrantech CEO Sean Stapleton said. “We applaud the time-honored tradition of excellence NIADA member dealers observe, including their adherence to a strict code of ethics. We feel that commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.”

For additional information regarding the NIADA CPO program please call (877) 310-0288 or email [email protected]

Warrantech to Administer New NIADA CPO Program

Miss_0512.indd 14 4/17/12 4:28 PM


15


After repeated requests from its members, the National Independent Automobile Dealers Association has announced it is entering the 20 Group business.

NIADA CEO Michael Linn announced the NIADA 20 Group program, which will organize and moderate groups of independent auto dealers from around the country to meet and share new ideas and best practices.

Linn said the move is being made after repeated requests from within the group’s membership of nearly 20,000. Dealers have voiced a strong desire to share best practices and operational data between the various member sets.

“NIADA members have historically been a tight-knit group of dealers. Developing a 20 Group platform for them to facilitate ideas and compare operational practices is a natural extension of their close relationships,” Linn said. “Additionally, we have mounting feedback from dealers participating in existing 20 Group models who feel their best interests are being underserved or even ignored. One dealer told me she felt the escalating cost to participate in her current 20 Group was not

worth the combative discussions she endures or the pressure she gets to conform to their benchmarks.

“For 66 years as a nonprofit trade association, NIADA has represented the voice of independent auto dealers and has found ways to help them improve their businesses. I can assure you NIADA and our 20 Group program will always put the needs of our dealers first. We will never sacrifice the quality or service we provide our dealers.”

The NIADA 20 Group program will be under the direction of Joe Lescota, who was recently

introduced as NIADA’s new Director of Dealer Development, effective June 1.

“Even the most successful independent dealers are constantly seeking new ways to improve their businesses,” Lescota said. “They know the slightest change in sales, financing, service or operational policy can have a major impact on their profitability. Our 20 Groups will be a great way for NIADA dealers to stay on track because colleagues will be there to prod, poke and encourage improved performance. The new platform will match dealers of like size, sales volume and revenue mix for maximized compatibility. They will share ideas and best practices and learn from one another regardless of size or geographical region.

“No independent dealer is too large or too small to contribute, learn and benefit from the collaborative dialogue of a 20 Group discussion. Every one of our members is encouraged to participate.”

The first phase of NIADA’s 20 Group format will focus on independent auto retail operations. More information will be available at the NIADA Convention & Expo in June at Caesars Palace in Las Vegas.

JOE LESCOTA

NIADA to Launch New 20 Group Program

THE NIADA 20 GROUP PROGRAM WILL BE UNDER THE DIRECTION OF JOE LESCOTA, WHO WAS RECENTLY INTRODUCED AS NIADA’S NEW DIRECTOR OF DEALER DEVELOPMENT, EFFECTIVE JUNE 1.

N E W 2 0 G R O U P P R O G R A M

Miss_0512.indd 15 4/17/12 4:28 PM


16


Congratulations to the following independent dealerships for being nominated for this year’s NIADA/Manheim National Community Service Award.

Independent dealerships across the nation contribute to their communities every day but often go unrecognized for their community support. Many participate through special projects while others provide sponsorships or financial contributions, or lead innovative community improvement activities.

The winning dealership will be named June 13 at the Leadership Awards Banquet during the National Independent Automobile Dealers Association Convention and Expo in Las Vegas. Manheim representatives will present the award along with a $5,000 check payable to the dealership’s chosen charity.

Community Service Award Nominees

THE 2012 NOMINEES ARE:Ertle Brothers Discount Auto, Sterling, Colo.Noegel’s Auto Sales, Starke, Fla.Southeast Car Agency, Inc., Gainesville, Fla.Matthews Motors, Clayton, N.C.A-1 Auto Sales of Dulles, Sterling, Va.Reel’s Auto Sales, Orwell, OhioBourne’s Auto Center, South Easton, Mass.

Fran Morelli Sales & Service, Brockway, Pa.Ed Holewiak’s Auto Sales, Somerset, Mass.Premier Motors-Leasing, Inc., Hardin, Ky.Ron’s Auto Sales, Inc., Lawrenceville, Ga.M&F Auto Sales, Albuquerque, N.M.Alamo Valley Auto Sales, Kalamazoo, Mich.South Tacoma Auto Sales, Inc., Tacoma, Wash.Fairly Reliable Bob’s, Inc., Boise, Idaho

Former Northwood University Automotive Department chairman Joe Lescota has been named director of dealer development for the National Independent Automobile Dealers Association, NIADA CEO Michael Linn announced.

He will begin his new duties June 1 after Northwood completes its spring semester.

Lescota, who resigned as chairman of Northwood’s Automotive Marketing Department in February after 15 years at the university, will work closely with NIADA director of education Georgia Brown on the association’s dealer education initiatives as well as evaluating analytical data.

Lescota will continue to serve as lead instructor for NIADA’s Certified Master Dealer course, a position he has held since 2003. The CMD program will continue to be presented in conjunction with and accredited by Northwood University, as it has since it was created in 2001.

“I am very excited about my new role as director of dealer development for NIADA,” Lescota said. “I have had the privilege of working with independent dealers for several years as the Certified Master Dealer instructor and at NIADA conventions. Now I will be able to expand and help develop a wider range of educational programs offered by NIADA. It’s an awesome opportunity for me to work even closer and more frequently with NIADA members.”

Lescota is a former retail automotive executive with more than 25 years of frontline dealership, sales, management and training experience. He has served as a dealer operator and is credited with developing innovative management techniques leading to reduced employee turnover and increased customer retention and satisfaction. He has conducted workshops and seminars to help used car dealers increase their profitability and helped introduce college credit courses in dealerships nationwide via distance learning.

In 2011, Lescota was inducted into NIADA’s Ring of Honor for outstanding performance and leadership that has contributed to the professionalism and growth of the automobile industry, one of only 21 honored in the association’s 66-year history. He was named Man of the Year by the Association of Finance and Insurance Professionals in 2006 and is a five-time winner of Northwood’s Faculty Excellence awards.

“I’m looking forward to having Joe as a senior staff member on our educational team at NIADA,” Linn said. “Joe’s industry knowledge and professionalism will be a great addition for us.”

Joe Lescota Joins NIADA as Director of Dealer Development

Miss_0512.indd 16 4/17/12 4:28 PM


17


Experian Automotive announced the launch of AutoCheck® Elite, a program that gives car dealers information and insights into the market, the vehicles and the people who buy them.

In addition to the vehicle history data of the original AutoCheck, AutoCheck Elite allows dealers to access reports providing in-depth insights into dealer sales performance, vehicle registrations and consumer demographics in their market. Dealers can use that information to evaluate their sales performance against the competition, track sales trends of the most popular makes and models, and better understand the consumers in their market.

And AutoCheck Elite dealers receive other features, including access to AutoCheck best practices training, a sales event marketing guide and enhanced showroom materials.

For more information, visit www.experianautomotive.com.

Experian Enhances Its AutoCheck Reports

The NIADA announced its 66th Annual Convention & Expo will be held June 11-14, 2012 – a week earlier than previously scheduled – at Caesars Palace Hotel and Casino in Las Vegas.

NIADA’s showcase event will offer an expanded dealer education program for 2012, including more sessions covering more topics than ever before, as well as an enhanced Expo featuring more companies representing all facets of the automotive industry. Expo exhibit dates are June 12, 13 and 14. The Convention, to be held for the third consecutive year at spectacular Caesars Palace, will kick off with activities beginning on Monday afternoon, June 11.

Online registration is now open at www.niada.com. Rooms at Caesars Palace will be available at the discounted rate of $154 per night.

NIADA’s Annual Convention & Expo provides its members with an opportunity to network with their peers, participate in quality education sessions and gather valuable information they can take back and apply toward their dealerships’ success. Educational offerings will cover topics for both retail and Buy Here-Pay Here dealers. The event is also a gateway for vendors to build and foster relationships with dealers through the Expo, an industry marketplace of top-notch vendors showcasing their products and services and the benefits they can provide to dealers.

NIADA has held its Annual Convention & Expo since 1947 and has continued to flourish as the most sought-after and reputable used motor vehicle industry event for automobile dealers.

NIADA ANNUAL CONVENTION & EXPO SET FOR JUNE 11-14, 2012

Miss_0512.indd 17 4/17/12 4:28 PM


18

w w w . m i s s i s s i p p i i a d a . c o m APRIL/MAY 2012 T H E O P E N R O A D

13

w w w . l o u i s i a n a i a d a . c o m

739 Canal at Bourbon Street New Orleans, LA 70130

Toll-Free: 888-696-4806 • Direct: 504-962-0500www.astorneworleans.com

THE PLACE TO MEET.

LOCATIONLocated at the corner of world famous Canal and BourbonStreets, the Astor Crowne Plaza is poised to offer our gueststhe best of both worlds — the Old World allure of theFrench Quarter, with its elegant Creole restaurants, world-renowned art galleries and antique shops — and the bustleof Canal Street, New Orleans’ Champs-Elysées and down-town shopping thoroughfare. Just 25 minutes from theLouis Armstrong New Orleans International Airport.

AT A GLANCE• Recent award-winning $11 million renovation

of all rooms, meeting space, public areas• Executive Level with Club Lounge• 693 luxurious guest accomodations• 33 elegantly appointed suites

MEETING FACILITIES & SERVICES• 32,000 square feet of versatile public function space• Elegant ballrooms hosting events for as many as 800 guests with

exterior balcony access over Canal, Bourbon and Iberville Streets• State of the art audio visual and communications services

are available• 24-hour Business Center with complimentary internet• Full VIP concierge services

ALL ROOMS & SUITES FEATURE• Executive work desks with two dual-line phones, modem

and/or high-speed internet• Coffeemaker with complimentary coffee and tea• Complimentary weekday USA TODAY® newspaper• Crowne Plaza Sleep Advantage® amenities•Valet service• Makeup mirror; hairdryer• Plush custom-made mattresses • Foam and feather pillows • Digital alarm clock/radio and CD player• Iron and ironing board• Individual climate control• Electronic door locks• In-room safes• 37” HD Flat Screen Television with pay-per-view movies

and premium cable/satellite service

DINING & ENTERTAINMENT• Dickie Brennan's Bourbon House Restaurant & Oyster Bar

a New Orleans fine dining experience!• 24 hour in-room dining and service• Cocktail Lounge

SURROUNDING ATTRACTIONS• Harrah’s Casino •World renown antique shops• French Quarter and Bourbon Street• Aquarium of the Americas and Insectarium• National D-Day Museum• The Children’s Museum• Upscale shopping at Canal Place• The Riverwalk Mall• Louisiana Superdome & New Orleans Arena• New Orleans Museum of Art• Audubon Zoo

RECREATION• Outdoor pool and gardens• On-site fitness center• Golf courses nearby• Boating on Lake Pontchartrain• Charter fishing• Tennis courts nearby• A wide array of scheduled tour options

The Astor Crowne PlazaWelcomes the MISS-LOU Independent Dealers

MIS

S-LO

U C

onve

ntion

Aug

ust 2

-5, 2

012

• N

ew O

rlean

s, Lo

uisia

na

LA_0412.indd 13 3/20/12 1:41 PMMiss_0512.indd 18 4/17/12 4:28 PM


19


APRIL/MAY 2012 T H E O P E N R O A D

15

w w w . l o u i s i a n a i a d a . c o m

New and Renewing MembersMiss-Lou

ConventionPLEASE MAKE CHECK PAYABLE TO MISS

LOU CONVENTION AND MAIL WITH THIS FORM TO:

L.I.A.D.A. (225)275-808815481 Airline Highway

Baton Rouge, LA 70817

$119.00 FOR STANDARD ROOM RATE

***Reservations with the Astor Crowne*** Call this number:

(888) 696-4806MENTION THAT YOU ARE ATTENDING THE

MISS-LOU CONVENTION!

739 Canal at Bourbon Street

New

Orleans, LA

70130Toll-Free: 888-696-4806 • D

irect: 504-962-0500w

ww.astornew

orleans.com

THE

PLA

CE

TOM

EET.

LO

CA

TIO

NLocated at the corner of w

orld famous C

anal and BourbonStreets, the A

stor Crow

ne Plaza is poised to offer our gueststhe best of both w

orlds — the O

ld World allure of the

French Quarter, w

ith its elegant Creole restaurants, w

orld-renow

ned art galleries and antique shops — and the bustle

of Canal Street, N

ew O

rleans’ Cham

ps-Elysées and down-

town shopping thoroughfare. Just 25 m

inutes from the

Louis Arm

strong New

Orleans International A

irport.

AT

A G

LA

NC

E•

Recent aw

ard-winning $11 m

illion renovationof all room

s, meeting space, public areas

•Executive Level w

ith Club Lounge

•693 luxurious guest accom

odations•

33 elegantly appointed suites

ME

ET

ING

FA

CIL

ITIE

S &

SE

RV

ICE

S•

32,000 square feet of versatile public function space•

Elegant ballrooms hosting events for as m

any as 800 guests withexterior balcony access over Canal, Bourbon and Iberville Streets

•State of the art audio visual and com

munications services

are available•

24-hour Business Center w

ith complim

entary internet•

Full VIP concierge services

AL

L R

OO

MS

& S

UIT

ES

FE

AT

UR

E•

Executive work desks w

ith two dual-line phones, m

odemand/or high-speed internet

•C

offeemaker w

ith complim

entary coffee and tea•

Com

plimentary w

eekday USA TO

DAY

®new

spaper• C

rowne Plaza Sleep A

dvantage®am

enities•V

alet service•

Makeup m

irror; hairdryer•

Plush custom-m

ade mattresses

•Foam

and feather pillows

•D

igital alarm clock/radio and C

D player

•Iron and ironing board

•Individual clim

ate control•

Electronic door locks• In-room

safes•

37” HD

Flat Screen Television with pay-per-view

movies

and premium

cable/satellite service

DIN

ING

& E

NT

ER

TAIN

ME

NT

•D

ickie Brennan's Bourbon House R

estaurant & O

yster Bara N

ew O

rleans fine dining experience!•

24 hour in-room dining and service

•C

ocktail Lounge

SU

RR

OU

ND

ING

AT

TR

AC

TIO

NS

•H

arrah’s Casino

•World renow

n antique shops•

French Quarter and Bourbon Street

•A

quarium of the A

mericas and Insectarium

•N

ational D-D

ay Museum

•T

he Children’s M

useum•

Upscale shopping at C

anal Place•

The R

iverwalk M

all•

Louisiana Superdome &

New

Orleans A

rena•

New

Orleans M

useum of A

rt•

Audubon Z

oo

RE

CR

EA

TIO

N•

Outdoor pool and gardens

•O

n-site fitness center•

Golf courses nearby

•Boating on Lake Pontchartrain

•C

harter fishing•

Tennis courts nearby•

A w

ide array of scheduled tour options

The A

stor Crowne P

lazaW

elcomes the M

ISS-LOU

Independent Dealers

MISS-LOU Convention August 2-5, 2012 • New Orleans, Louisiana

MISS-LOU ANNUAL CONVENTION At

The Astor Crowne Plaza

739 Canal Street (at Bourbon)

New Orleans, LA 70130

AUGUST 2-5, 2012

PLEASE PRINT OR TYPE ALL INFORMATION:

FIRST NAME: ________________________ LAST NAME: _________________________

COMPANY NAME:___________________________________________________________

Email: ______________________________________________________________________

ADDRESS: __________________________________________________________________

CITY: ____________________STATE:______________ZIP-CODE___________________

TELEPHONE: _________________________CELL:________________________________

BADGE INFORMATION:

NAME: _________________________________________________________ ___MEMBER ___NON-MEMBER

NAME: _________________________________________________________ ___ MEMBER ___NON-MEMBER



_______PLEASE CHECK HERE IF YOU HAVE A DISABILITY AND MAY REQUIRE AN ACCOMMODATION.

YOU WILL BE CONTACTED TO DISCUSS YOUR SPECIAL NEEDS.

EARLY BIRD REGISTRATION (BEFORE June 1, 2012) REGISTRATION (AFTER June 1, 2012)

____ $300 COUPLE ____ $350 COUPLE

____ $200 SINGLE ____ $225 SINGLE

PLEASE MAKE CHECK PAYABLE TO MISS LOU CONVENTION AND MAIL WITH THIS FORM TO:

L.I.A.D.A. (225)275-8088

15481 Airline Highway


WHEN CAN WE EXPECT YOU TO ARRIVE?

THURSDAY _____FRIDAY _____SATURDAY_____


***Reservations with the Astor Crowne***

Call this number:

(888) 696-4806 MENTION THAT YOU ARE ATTENDING THE


MISS-LOU ANNUAL CONVENTION At

The Astor Crowne Plaza

739 Canal Street (at Bourbon)

New Orleans, LA 70130

AUGUST 2-5, 2012

PLEASE PRINT OR TYPE ALL INFORMATION:

FIRST NAME: ________________________ LAST NAME: _________________________

COMPANY NAME:___________________________________________________________

Email: ______________________________________________________________________

ADDRESS: __________________________________________________________________

CITY: ____________________STATE:______________ZIP-CODE___________________

TELEPHONE: _________________________CELL:________________________________

BADGE INFORMATION:


NAME: _________________________________________________________ ___ MEMBER ___NON-MEMBER



_______PLEASE CHECK HERE IF YOU HAVE A DISABILITY AND MAY REQUIRE AN ACCOMMODATION.

YOU WILL BE CONTACTED TO DISCUSS YOUR SPECIAL NEEDS.

EARLY BIRD REGISTRATION (BEFORE June 1, 2012) REGISTRATION (AFTER June 1, 2012)

____ $300 COUPLE ____ $350 COUPLE

____ $200 SINGLE ____ $225 SINGLE

PLEASE MAKE CHECK PAYABLE TO MISS LOU CONVENTION AND MAIL WITH THIS FORM TO:

L.I.A.D.A. (225)275-8088

15481 Airline Highway


WHEN CAN WE EXPECT YOU TO ARRIVE?

THURSDAY _____FRIDAY _____SATURDAY_____


***Reservations with the Astor Crowne***

Call this number:

(888) 696-4806 MENTION THAT YOU ARE ATTENDING THE


LA_0412.indd 15 3/20/12 1:41 PM

M I A DA & B r y s o n D e a l e r P r o g r a m s

A n n o u n c e P r e f e r r e d P r o v i d e r P r o g r a m

Cliff Little, CICVP - Transportation / Dealer Programs

301 Newpointe DriveRidgeland, MS 39157PH: 800-530-7055Cell: 601-896-8834FX: 601-707-2070

INTRODUCTION

Over the last 20 years, I have provided insurance counsel and financial planning to hundreds of companies, both large and small, throughout the Southeast US.

I earned my BS degree from Mississippi State University and am a designated Certified Insurance Counselor by the Society of Certified Insurance Counselors.

Throughout the years, I have gained the knowledge and experience needed to advise my clients on their asset protection needs.

ACHIEVEMENTS

• Received several industry awards for demonstrating excellent proficiency in all lines of insurance and for proven success in superior customer retention

• Active participant in multiple Insurance Industry Loss Control and Employee benefit management seminars

• Appointed and currently serve on several industry and boards and advisory councils

PRODUCTS AND SERVICES

Bryson Services • Work Comp Exp Mod Audits • Coverage Analysis • OSHA Compliance Inspections • Claim Consulting • HR Practices Consulting

Bryson Commercial Lines• Property / Casualty • Workers Compensation• General Liability• Professional Liability• Pollution Liability• Commercial Auto• Bonding • Directors & Officers / EPLI

Bryson Employee Benefits• Group Plans• Retirement Plans (401 K)• Dental Plans• Occ / Acc Plans• Disability Plans• Keyman Life Plans• Estate Plans• Business Life• Individual Plans

Fastenal, a national distributor of industrial and construction supplies, has introduced an expense reduction program for auto dealerships to save owners time and money related to their shop supplies and essential tools.

The centerpiece is Fastenal’s FAST Solutions industrial vending system. To date, 8,000-plus machines have been installed to help organizations reduce supply consumption, move the cost of inventory to Fastenal, and increase worker productivity.

To access products, workers enter an ID code and a repair order number, then make a selection. If the request is authorized, the machine dispenses the product and automatically reports the details of the transaction, making workers accountable for what they use. Controls can also be established so that workers only have access to the products (and amounts) needed to do their jobs.

For more information, visit www.fastenal.com.

Fastenal Launches Expense Reduction Program

Miss_0512.indd 19 4/17/12 4:28 PM


20


Full Name_______________________________________________________________

Address________________________________________________________________

City___________________________State__________________Zip________________

Phone______________________________Fax_________________________________

Email __________________________________________________________________

Business Name__________________________________________________________

Address________________________________________________________________

City___________________________State__________________Zip________________

Phone______________________________Fax_________________________________

Email __________________________________________________________________

Payment Method

___Check Enclosed ___Money Order ___VISA ___MC ___DISC ___AMEX

Account #________________________________________________________ Exp________________

Account Name____________________________________________________ Zip_______________

Registration Fee $_________________ + C/C Proc. Fee $ 3.50 = Transaction Total $___________________

Signature of Authorization______________________________________________________________________

Mississippi’s Used Auto Dealer Pre-licensing SeminarRequired by theDepartment of Revenue

Seminar Location:MIADA Home Office1705-A Old Whitfield RoadPearl, MS 39208Office: (601) 939-9866 Fax: (601) 939-9882

Seminar dates are as follows:q May 19, 2012/ 8 a.m.-5 p.m. q June 16, 2012/ 8 a.m.-5 p.m.

Registration Fee - $175.00 Please submit registration with payment to MIADA at least seven days prior to the date of the seminar you plan to attend. Your seat will be reserved and certificates will be presented at the end of the seminar.Dealer Resource Manual - $75.00Late Registration Fee - $25.00 Late registrations are accepted the week before class and walk-ins are accepted on the morning of class. However, the late fee is applied to the original registration fee and certificates for walk-ins will be mailed out the following week. *On the day of the seminar, No checks will be accepted.*Transfer Fee - $50.00 If you wish to transfer your registration to another scheduled seminar date, a 72 hour notice is required and a transfer fee is applied.Cancellations - $50.00 All cancelations are to be made 72 hours in advance in order to receive a refund, minus the cancellation fee.*Please Note* Due to limited and reserved seating, we can not allow sit-ins. Also, if you have any disabilities that require you to bring an assistant, please let MIADA know at the time of registration so we can reserve adequate seating.

Aimee Smith Pruitt is MIADA’s pre-licensing education specialist. With more than five years experience in pre-owned dealership management and more than four years in education development and instruction for MIADA, she is our greatest asset. She has made major contributions to the curriculum that was first offered in July 2007. Education class participants continually rate this class as superior.

Miss_0512.indd 20 4/17/12 4:28 PM


21


I teach the Mississippi dealer education seminar offered monthly through MIADA, and dealers and those seeking a dealers license have many questions about the Buyers Guide.

Use the quiz below to test your knowledge of those forms. You may find you need to update your company’s policy in order to comply with the federal law.

1.)You can show an automobile for sale even if a Buyers Guide is not in the vehicle._____ TRUE _____ FALSE

2.) The customer must sign the Buyers Guide at the time of the sale. _____ TRUE _____ FALSE

3.) The Buyers Guide can be placed anywhere in the vehicle, as long as it is in it somewhere._____ TRUE _____ FALSE

4.) The portion of the Buyers Guide that explains the vehicle’s warranty must be completed before it is placed in the vehicle._____ TRUE _____ FALSE

5.) I can mark all my Buyers Guides “As Is.” _____ TRUE _____ FALSE

6.) The fine for not having a Buyers Guide in an automobile being offered for sale is $11,000 per offense._____ TRUE _____ FALSE

7.) If I am still reconditioning a vehicle, I don’t have to have a Buyers Guide in it._____ TRUE _____ FALSE

8.) If I use an implied warranty form, I don’t have to use the Buyers Guide._____ TRUE _____ FALSE

9.) All my units are still under factory warranty, so I don’t need to use Buyers Guides._____ TRUE _____ FALSE

10.) I just put 10 percent parts and 10 percent labor for 30 days as my warranty on Buyers Guides. That is enough._____ TRUE _____ FALSE

11.) Since the customer is buying a separate service contract, I don’t have to give this form to the buyer._____ TRUE _____ FALSE

12.) The back of the Buyers Guide must include the name of the dealership and the name of the person to contact if there is a complaint._____ TRUE _____ FALSE

Answers: 1.) FALSE: Never offer a unit for sale without a Buyers Guide in it as required by state and federal law.2.) FALSE: We recommend a Buyers Guide format that has a signature line for the buyer, but the law does not require it. The law says if you opt for a form with a signature line, the disclosure near the signature line must say, “I hereby acknowledge receipt of the Buyers Guide at the closing of this sale.”3.) FALSE: The Buyers Guide must be posted prominently and conspicuously. It can be in a window, on the dash or suspended from the rear-view mirror. It cannot be in hidden areas such as in the trunk or under a seat.4.) TRUE: The Buyers Guide must be completed prior to offering the vehicle for sale with all warranty information, including systems covered, what percentage of cost the warranty covers or “As Is.”5.) FALSE: There is a 75,000-mile and six-model year rule. To offer all your inventory “As Is,” all units must have mileage of more than 75,000 or be at least six model years old.6.) TRUE7.) TRUE: Just be sure you don’t offer the unit for sale during the reconditioning process.8.) FALSE: Both forms are required by law. Buyers Guides are federal forms also required by the state. Implied warranties are Mississippi forms.9.) FALSE: For remaining factory warranty, the Buyers Guide must state: “Manufacturer’s warranty still applies. Manufacturer’s original warranty has not expired on the vehicle. Consult the Manufacturer’s warranty booklet for details as to warranty coverage, service location, etc.”10.) FALSE: Although there is no minimum on a warranty, it must be seen as “fair” in a court of law. Recommendations for a minimum warranty are 50 percent parts, 50 percent labor for 30 days or 1,000 miles, whichever comes first.11.) FALSE: The Buyers Guide must state your warranty to the buyer, even if a service contract is purchased.12.) TRUE

If you got 100 percent correct, you are probably compliant. If you or your service, sales or office manager answered any incorrectly, we recommend they attend our dealer education on May 19 or June 16. The registration form for the class is located on page 20.

If you need to purchase Buyers Guides, they are available through MIADA at 601-939-9866. Buyers Guides are $30 for members and $37.50 for nonmembers for a pack of 100.

Aimee Pruitt

Aimee’s Dealer Quiz

Miss_0512.indd 21 4/19/12 1:45 PM


22


The concept or image of the “complaint department” isn’t anything new, and has provided fodder for jokes and comic strips over the years. But the decision by the Consumer Financial Protection Bureau (CFPB) to expand its consumer complaint system to include complaints regarding vehicle and consumer loans is no laughing matter.

If you haven’t been to the site yet, consider taking a look. The site, www.consumerfinance.gov/complaint, makes it very easy for anyone to register a complaint. It asks for a description of what happened, the desired resolution and the parties and products involved.

The CFPB’s decision to start accepting and reviewing complaints related to vehicle loans should get your attention for a few reasons. First and foremost, it signals that the CFPB is gaining momentum and is ready to try to identify and resolve current problems in the industry – and to prevent future ones.

Second, the complaint process opens a whole litany of questions about how the CFPB will respond to complaints and how dealers will be involved. We don’t know much about the process yet, but hope the CFPB will provide more detail soon.

For now, the question all dealers should be asking themselves is, “How do I avoid complaints in the first place?”

It seems consumer finance complaints can originate in at least three ways: • You did something wrong and the customer complains about it.• The customer didn’t understand the agreement and thinks you did something wrong as a result. • You did everything right, but the customer has unreasonable expectations and complains.

You can take steps to avoid or reduce the impact of all three scenarios, particularly when it comes to finance and insurance (F&I) processes.

You did something wrongCustomers should complain if you misrepresent, overstate or lie about the products and services

you provide or the nature, reason and amount of charges. If you are running your business that way – or you have a renegade employee who is committing such acts – you should expect whatever consumer complaints, lawsuits and/or criminal charges come your way.

The complaints and the liability they bring can be avoided if you run an honest and high-integrity business. You also need internal oversight, management and audit processes to help discover and eliminate any employee misconduct.

Customer didn’t understand Some reported court cases I’ve read seem to be based on a lack of consumer understanding that

spun out of control. The dealer didn’t necessarily do anything wrong, but the consumer seemed surprised at having to pay for cover insurance, or the gap amount, or having a vehicle repossessed, or any of a number of other predictable outcomes. The financing documents generally cover the fees, responsibilities and consequences, but the consumer didn’t read or understand them until long after the documents were signed.

In one recent case, the consumer asserted he hadn’t read the retail sales contract or been given time to read it. He said he simply signed and initialed where he was told to. He later complained and sued regarding a number of obligations he hadn’t understood, and the lawsuit didn’t turn out well for the dealer.

One strategy to avoid this would be to take the time at closing to educate the consumer. You could point out key provisions of the documents, such as late payment provisions, failure to insure, and conditions of and consequences of default. You could emphasize the importance of reading the documents and asking questions before signing, and back it up with a willingness to give consumers time to read and ask basic questions.

The idea is, if you tell the consumer what happens on default, he or she is not surprised – and is less likely to complain – if the car is repossessed.

Customer is unreasonableThere will always be unreasonable customers whose expectations far exceed the terms of your sales

agreements, warranties and commercial reasonableness. With those folks, you might not be able to avoid complaints. However, a regulator is more likely to conclude that a complaint is unreasonable if its investigation shows you run an honest, high-integrity business, have compliant processes and documentation in place, work hard to educate customers and set appropriate expectations.

While you can’t always please everyone, running a high-integrity business and educating your customers will undoubtedly help prevent customer complaints. The more positive view is that you won’t just be avoiding complaints and mitigating reputational risk, you will be building customer satisfaction and retention.

Either way, it’s an investment well worth making. BY CHIP ZYVOLOSKI

Chip Zyvoloski is a senior attorney for indirect lending at Wolters Kluwer Financial Services.

For more information, visit www.wolterskluwerfs.com/indirect.

ComplianceOverdrive

CHECK OUT

Watch24/7

WHAT’S NEW ONNIADA.TV

Who Is Your Customer? Paul Webb explains how knowing your customer better can help you sell, sell, sell.

Tamara Darvish’s Outraged video from the CAR Conference: Find out why the “taking out” of America’s hometown

car dealers impacts not only dealers, but also automotive remarketers.

Reducing the Impact of Consumer Complaints

Miss_0512.indd 22 4/17/12 4:28 PM

Miss_0512.indd 23 4/17/12 4:28 PM

Miss_0512.indd 24 4/17/12 4:28 PM

Miss_0512_O

Documents

Transcript of Miss_0512_O