oh_0911_o

ALSO The 3 Dimensions of Mobile Marketing for DealersPLUS Understanding Buy Here-Pay Here Customers

A DEAL IS A DEAL?

PRSRT StandardU.S. Postage

PAIDDALLAS, TEXASPermit No. 2079

V i s i t u s a t w w w . o h i a d a . o r g

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

INDEPENDENT DEALERSE

PTEM

BER/

OC

TOBE

R 2011

Mitchell Receives Association Executive of the Year Awardpg. 26

OH_0911.indd 1 8/22/11 2:19 PM

OH_0911.indd 2 8/22/11 2:19 PM

OH_0911.indd 3 8/22/11 2:19 PM

T H E I N D E P E N D E N T D E A L E R SEPTEMBER/OCTOBER 2011

4

w w w . o h i a d a . o r g

INSIDE

DON’T FORGET TO VISIT OUR WEBSITE FORIMPORTANT INFO: WWW.OHIADA.ORG

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] OHIO INDEPENDENT DEALER NEWS IS PUBLISHED BI-MONTHLY BY THE NATIONAL INDEPENDENT AUTOMOBILE DEALERSASSOCIATION 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 CHANG-ES 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 OHIO INDEPENDENT DEALER NEWS, THE OHIO INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION, OR THE NATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION. LIKEWISE, THE AP-PEARANCE OF ADVERTISERS, OR THEIR IDENTIFICATION AS MEMBERS OF OIADA OR NIADA, DOES NOT CONSTITUTE AN ENDORSEMENT OF THE PRODUCTS OR SERVICES FEATURED. COPYRIGHT 2011 BY NIADA SER-VICES, INC. ALL RIGHTS RESERVED.

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

4

MAGAZINECONTENTS

ADVERTISERSINDEXADESA.................................................................. Inside Back CoverAuto Portfolio Services .................................................................15AutoTrader.com ..............................................................Back CoverAuto Use .......................................................................................11Cars.com ............................................................ Inside Front CoverChase.............................................................................................19Columbus Fair Auto Auction .........................................................13Corry Auto Dealers Exchange.......................................................17Leedom Group ...............................................................................9Manheim.com .............................................................................. 18Protective ........................................................................................3ShipCarsNow ...............................................................................21SmartAuction ..................................................................................5TD Auto Finance ..............................................................................7United Acceptance ...................................................................... 20

6 A Deal is a Deal?

8 The 3 Dimensions of Mobile Marketing for Dealers

12 Understanding Buy Here-Pay Here Customers

1

www.stopcurbstoning.com

A Used Car Field Guide for Detecting Collision Repair

It used to be fairly easy to spot the signs of a collision repair: overspray, bad color matching, and misaligned body panels. Now, with computers assisting with everything from frame straightening to color matching, it’s a lot harder to tell if a vehicle has been in a collision, especially if the repair was done well.

That’s great if you want your car �xed after an accident. But it makes things hard if you’re looking for a good used car.

NOTE: We’re not saying to avoid any car that’s had bodywork. A vehicle that’s been properly and professionally repaired after a minor fender-bender could be a terri�c bargain. We are saying to watch for disparities between what a seller says and what his or her vehicle shows.

Of course, no one can catch all the bad cars. That’s why an inspection by a trusted, experienced mechanic, along with a

vehicle history report form a service like AutoCheck, are absolutely vital steps to take before payingmoney for any used car from a private party.

However, here are some quick, simple things you can watch for when you’reout looking at cars. One element on your side is simple greed: curbstoners want to maximize their pro�ts. After all, they only need to fool a buyer long enough to collect the cash. So, curbstoned cars rarely get top-notch repair treatment.

At A GlanceA walk around the vehicle in good light will often disclose whether or not a body panel has been replaced or repainted. Look at thecar from several angles to make sure the color matches across all the body panels.

Look also at the re�ections in the paint – factory paintwork is mirror-smooth, even when dirty or dinged up. Signs of repair often reveal themselves in a slightly rippled re�ection, or a re�ection that doesn’t exactly line up across two body panels. Be sure to look at re�ections from several angles.

If the car is so dirty that you can’t see re�ections, you might need to ask for the car to be washed. While you’re sighting down the sides of the car, check to make sure the body panels all �t �ush, and that the gaps between the panels are even from top-to-bottom and side-to-side.

Good places to look for paint overspray or excess paint include:

Around electrical conduits in door jambs

Near door, hood, and trunk hinges

On window and door seals

Around seals and �ttings in the engine compartment �rewall

Along the trim pieces inside wheel wells

Sun damage typically affects large body surfaces like hoods and roofs. When you see small patches of peeling clear-coat, especially in corners and other hard-to-reach areas, they may indicate a poorly prepped paint job.

At the same time, beware of too-perfect paint. Even a garaged, well-cared-for used vehicle will have small paint chips and even minor dings. If the chin fascia beneath the front bumper is pristine, it may have been recently replaced or repainted.

OIADA BOARD OF DIRECTORS 2011

TOM SMITH TOM ONESTI JAY NORTH DAN REEL MARK MEADOWS TERRY REINEKE PAST CHAIRMAN CHAIRMAN PRESIDENT VICE PRESIDENT TREASURER SECRETARY BOB FAHEY JEFF RADER LAUREN THOMAS BOBBY VAUGHAN RANDY GRIESDORN JOHN REMY BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER CHRISTINE WHITE DAVE ADKINS JIM MITCHELL GEORGE POLCE BRITTANY ENKE ADMIN ASSISTANT BOARD MEMBER EXECUTIVE DIRECTOR BOARD MEMBER OFFICE ASSISTANT

OIADA • 2040 Brice Road • Suite #110 • Reynoldsburg, OH 43068PO Box 216 • Brice, OH 43109-0216 • [email protected] • www.ohiada.org

FOR INFORMATION ON HOW TO BECOME A MEMBER CONTACT JAMES R. MITCHELL EXECUTIVE DIRECTOR

Past ChairmanThomas SmithSmittys’ Auto Sales668 S. 7th StreetGreenfield, OH 45123Tel: 937-981-4317Fax: 937-981-4317Cell: 937-218-3658Email: [email protected]

Vice PresidentDaniel ReelReel’s Auto Sales LLC547 East Main StreetOrwell, OH 44076Tel: 440-437-5893Fax: 440-437-5758Email: [email protected]

Executive DirectorJames R. MitchellOIADA2040 Brice RoadReynoldsburg, OH 43068Cell: 614-436-3393Office: 614-863-5800Fax: 614-863-5801Email: [email protected]

Chairman Thomas OnestiCar PortPO Box 9943Youngstown, OH 44513Tel: 330-726-6633Fax: 330-726-2633Cell: 330-565-6833Email: [email protected]

SecretaryTerry ReinekeRino’s Auto Sales Inc1610 Industrial PkwyCelina, OH 45822Tel: 419-586-6161Fax: 419-586-8700Cell: 419-305-4009Email: [email protected]

Administrative AssistantChristine WhiteOIADA2039 Brice RoadReynoldsburg, OH 43067Office: 614-863-5800Fax: 614-863-5801Email: [email protected]

President Jay NorthJay North LLC501 E. Columbia StreetSpringfield, OH 45503Tel: 937-325-3748Fax: 937-398-1075Email: [email protected]

TreasurerMark MeadowsMiracle Motor Mart2380 Morse RoadColumbus, OH 43229Tel: 614-437-0037Fax: 614-337-1063Cell: 614-348-6503Email: [email protected]

Office AssistantBrittany EnkeOIADA2040 Brice RoadReynoldsburg, OH 43068Office: 614-863-5800Fax: 614-863-5801Email: [email protected]

BOARD MEMBERSJeff RaderRader Car Company1429 Schrock RoadColumbus, OH 43229Tel: 614-888-3111Fax: 614-888-3811Cell: 614-582-1822Email: [email protected]

Randy GriesdornComplete Automotive Repair & Sales, Inc.123 East Main StreetColdwater, OH 45828Tel: 419-678-3969Fax: 419-678-3575Cell: 419-852-3312Email: [email protected] Robert FaheyFairdale Auto Sales6209 Glenn Rd.Cambridge, OH 43725Tel: 740-432-4185Fax: 740-435-0765Cell: 740-607-4011Email: [email protected]

Robert VaughanVaughan Motor Car Company808 Parsons AvenueColumbus, OH 43206Tel: 614-444-7839Fax: 614-444-1133Cell: 614-565-5682Email: [email protected] George PolceJenroc Auto, Inc.101 N. Tuscarawas Ave Dover, OH 44622Tel: 330-364-2525Fax: 330-364-6726Cell: 330-268-4724Email: [email protected] David AdkinsWilmington Auto Sales Inc1780 Rombach AvenueWilmington, OH 45177Tel: 937-382-7714Fax: 937-383-2392Cell: 937-725-8512Email: [email protected]

Lauren Bowden ThomasBowden Motors1426 South Main StreetBellfontaine, OH 43311Tel: 937-593-0014Fax: 937-593-0514Email: [email protected]

John RemyRemy’s Auto Group58905 US 50McArthur, OH 45651Tel: 740-596-4694Fax: 740-740-596-5526Cell: 740-395-4214Email: [email protected]

BOARD OF DIRECTORS 2011

We know that used auto buyers today must navigate a minefield of unscrupulous sellers and haphazardly repaired vehicles. Among the worst offenders are “curbstoners” – unlicensed individuals who buy and sell used cars to make a quick buck from unwary victims.

That is why we put together a handy guide to help used auto buyers detect collision repair. “A Used Car Field Guide for Detecting Collision Repair,” is an online booklet full of useful tips for spotting subpar repair work, ensuring there are no disparities between what a seller says and what the vehicle shows.

To access the booklet, visit stopcurbstoning.com.

OH_0911.indd 4 8/22/11 2:27 PM

OH_0911.indd 5 8/22/11 2:19 PM


6


A Dealis a Deal?B Y Z U R I C H F I N A N C I A L S E R V I C E S G R O U P

NEW FEDERAL AND STATE CONSUMER LAWS ARE PASSED

EVERY YEAR, SO IT IS IMPORTANT TO UNDERSTAND

AND EDUCATE DEALERSHIP

PERSONNEL ON HOW TO COMPLY.This Loss Prevention Bulletin is provided for informational purposes only. Please

consult with qualified legal counsel to address your particular circumstances and needs. Zurich is not providing legal advice

and assumes no liability concerning the information set forth above.

FACTS

It should be no surprise to you how many federal consumer laws and regulations affect the typical

automobile dealer. The Truth in Lending, Equal Credit Opportunity and Fair Credit Reporting acts are all too familiar. The same is true of regulations Z and B and the various Federal Trade Rules, including the Used Car Rule. Then, of course, there are state unfair business practice acts, common law fraud, misrepresentation and improper disclosure to consider.

The fact is you must be more careful than ever to ensure a deal is put together the right way. As the stack of paperwork that must be signed by your customer grows, so does the opportunity for mistakes and mistakes can cost you money – perhaps far more money than you realize. The winter issue of The Specialist reported a recent fraud and failure-to-disclose situation where a dealer’s customer was awarded $218,000 in punitive damages (not insurable in many states) as the result of a lawsuit involving damage disclosure. The customer was told the vehicle was “in perfect condition,” “had never been wrecked” and was a “one-owner vehicle.” Evidence later proved none of these assertions were true. Take appropriate measures to protect your dealership from damage disclosure and truth in lending complaints and lawsuits.

We offer the following suggestions:

MANAGEMENT ISSUES• Provide extensive training to sales and F&I personnel on all consumer laws.• Have legal counsel review all sales, leasing and other applicable documents for compliance with federal, state and local laws.• Implement a vehicle sales checklist to establish standard procedures for staff.• Have customer sign or initial forms as needed.• Establish policies to address ethical business practices and ensure your management team abides by them.TRADE-INS• Perform a title search to verify mileage, past ownership and lien holders.• Develop and use a seller’s disclosure, customer title disclosure and trade-in certification or equivalent forms to document mileage, prior damage, airbag deployment, salvage vehicles, frame damage, etc.• Odometers must be inspected carefully for rollback, replacement or tampering.• Vehicle appraisers (and managers) must be diligent in evaluating trade-ins and determining prior damage manager.

AUCTION VEHICLES• Use a title search firm or state agencies to check vehicle history.• Deal with auctions that guarantee the title is free and clean.• Don’t purchase vehicles with prior frame damage.

RETAIL TRANSACTIONS• In conjunction with legal counsel, consider developing and implementing a buyer’s arbitration agreement requiring the customer to seek relief through an arbitration process in lieu of litigation. We neither recommend nor disfavor arbitration agreements. This is a business decision that only you and your advisors can make. Note: as of Jan. 1, 1999, the American Arbitration Association (AAA) will not administer an arbitration proceeding if the signed agreement does not meet minimum standards established by its National Disputes Advisory Committee. The AAA’s Consumer Due Process Protocol includes a statement of 15 principles intended to protect consumer rights.• To avoid being held financially responsible to a creditor deemed unsecured by a bankruptcy court, process the title work promptly to ensure timely perfection in all cases within 20 days after the vehicle is delivered.• If the customers’ creditworthiness is questionable, delay the delivery as the 20 days noted above does not begin until the vehicle is delivered.• Be very cautious with deals involving out-of-state paperwork or missing titles, it may be difficult to process the necessary title paperwork• Videotape the sales transaction in the business office, but only after the customer (and your employee) voluntarily agree to be videotaped. Consult your legal counsel to determine how long the tape should be kept and the potential risk of not taping or saving all transactions. While videotaping can be a good idea, it isn’t one you should proceed to undertake without careful thought of all ramifications. New federal and state consumer laws are passed every year, so it is important to understand and educate dealership personnel on how to comply. Your legal counsel and auto dealer associations are excellent resources for keeping appraised of these new regulations. Contact your local Zurich account executive for additional information on how these laws affect your business. If you have any questions or comments, contact your Zurich account executive or the Loss Prevention Department at 800-821-7803.

OH_0911.indd 6 8/22/11 2:19 PM

OH_0911.indd 7 8/22/11 2:20 PM


8


FACTS

The 3 Dimensions of Mobile Marketing for Dealers

88 percent of mobile phone users said they’d be more likely to buy a vehicle from a dealer with a mobile website. Having a mobile website can significantly increase your ability to engage potential customers and sell autos. However, not having one can seriously limit your ability to compete with tech-savvy dealers.

When it comes to the design of your mobile website, simplicity is crucial. It should have minimal words and pictures. Then, visitors will feel comfortable browsing your inventory on their phones. Try using touchable text and large buttons. That’ll make it easier for visitors to ‘thumb-surf ’ through your site and contact you. Don’t hide critical information such as your phone number or email address in a graphic. Remember, visitors are likely to abandon your mobile site if they can’t easily access information they want.

If you have a mobile website but don’t feel like you’re getting enough value yet, it may pay to consider mobile marketing resources such as those offered by AutoRevo. The company’s proven techniques help dealers boost online response rates so they can sell more. For example, some dealers use AutoRevo mobile tools to help sell inventory on Facebook Marketplace or eBay. Other dealers like to track performance metrics of their mobile website and paid search campaigns to help identify areas of their business that need improvement.

2ND DIMENSION – WHY LOCAL SEARCH IS VITAL

Now that you know how valuable your mobile website can be, it’s time to start promoting it. Then, Internet search engines and more shoppers can find you online. Focus on local search marketing – it’s your best opportunity to see results fast.

Did you know researchers saw a 500-percent increase in mobile searches from 2008-2010? Not surprisingly, they found Google to be the most frequently used search engine. So make sure your dealership and mobile website are visible on Google Places. Then, shoppers can find you faster.

Luckily, claiming your business listing with Google Places is a free, straightforward process – just follow the instructions online at google.com/places. To help shoppers find your mobile site while searching, you’ll want to use keywords on Google Places such as: used cars, your city, your dealership name, and, for franchise dealers, your OEM affiliation. Also, include your

local phone number and a link to your mobile website.

You can add up to 10 photos and five videos on Google Places. Use these as opportunities to show customers why your dealership is the best place to buy. For example, the logo used by Carfax Advantage Dealers helps them stand out and build confidence with online buyers. It shows shoppers that every auto sold comes with a free Carfax Vehicle History Report. The power of a trusted brand can give you an edge over other dealers in your area.

Important: When it comes to search marketing, it’s important to avoid duplicate content between your main and mobile websites. Otherwise, it could have a negative impact on your search rankings. In other words, don’t run your mobile website on the same exact URL as your main website.

Try using variations like: m.yourdealership.com, mobile.yourdealership.com or yourdealership.mobi to make your mobile URL appear different to the search engines. Without a unique web address, your mobile site runs the risk of penalty for duplicate content by Google.

3RD DIMENSION – QR CODES AND THE FUTURE

If you’re ready to try something new, tell your marketing team to include a Quick Response (or QR) code with your next newspaper or print advertising opportunity. It can instantly turn an offline consumer into an online shopper.

Today, QR codes are one of the hottest trends in mobile marketing. These black and white barcodes are generally the size of postage stamps, and link users to mobile websites. You simply scan a barcode with your smartphone from a printed piece and are sent to a specific mobile website. It’s great for marketing because it’s a curious way to get consumers to interact with your dealership.

A relatively new technology, QR codes saw a reported 1,200-percent increase in scanning from July to December 2010. This fast and engaging marketing method could be the way you take business to the next level.

Most of us couldn’t get through the day without our smartphones or mobile devices. Yet many independent dealers haven’t even attempted to reach this massive mobile audience. With so much opportunity out there, you need the right mobile marketing strategies in place to engage a greater number of shoppers and sell more vehicles.

B Y C H A D G O O D S O N , P R O C E S S I M P R O V E M E N T M A N A G E R , C A R F A X

Did you know there are about 300 million mobile phones in the U.S. active today? That’s practically

one for every American. We rely on smartphones to help do our jobs, keep up with current events and shop for things like used autos. Indeed, phones today can do almost anything and are the constant center of attention for many of us.

The prominence of our phones provides greater opportunity for dealers to reach potential customers more efficiently and effectively. However, you need a proven search marketing strategy to successfully capture the attention of this massive audience and sell more vehicles. If you’re an independent dealer, you need to know the three dimensions of mobile marketing.

1ST DIMENSION - YOUR MOBILE WEBSITE

You need a mobile website to stay competitive in today’s used vehicle marketplace. Why? Customers expect you to have one. A recent survey showed

TO HELP SHOPPERS FIND YOUR MOBILE SITE WHILE SEARCHING, YOU’LL WANT TO USE KEYWORDS

OH_0911.indd 8 8/22/11 2:29 PM

OH_0911.indd 9 8/22/11 2:20 PM


10


Independent Auctions: The Dealer’s FriendBY JOHN POTEET, MANAGING PARTNER, LOUISIANA’S 1ST CHOICE AUTO AUCTION

More than half of the 316 auto auctions in the National Auto Auction Association

(NAAA) are independently owned and operated. Those 176 independents make up the largest group of auctions in the NAAA and include some of the most innovative, creative entities in the industry. When it comes to customer service and dealer responsiveness, this group is second to none.

Independent auctions are very similar to independent dealers because they are often family-owned businesses and may have only one location. Yet, no matter how large or small, they understand – just as independent dealers do – the importance of customer service. When dealers visit an independent auction, they are often dealing with the owner of the business; that can make a difference in how quickly issues are resolved because owners know how important it is for an independent to get things done effectively and efficiently.

Many dealers believe independent auctions may not have the technology or the products of a chain auction, but that’s far from the truth. The services offered by independent auctions rival the latest in auction offerings by the large chains. Independents offer the basic services a dealer would expect from an NAAA auction, and most offer other services such as reconditioning, mechanical work, and transportation. In addition, many offer live simulcast sales, Internet sales through OVE, SmartAuction, or OpenLane, post-sale inspections, and array of floor planning services including MAFS, AFC, and DSC among others.

The influence of independent auctions is felt throughout the industry. Owners and managers play pivotal roles in arbitration standards, industry legislation, electronic condition reports, and NAAA standards for certification. The impact of independents is so significant 10 of the last 15 and four of the last five NAAA presidents have come from independent auctions.

Louisiana’s 1st Choice Auto Auction sums up the independents devotion to service with one Cajun French word, “lagniappe.” Pronounced LAN-yap, it means that little something extra you get when doing business with a merchant. The auction adopted this philosophy when it opened for business in 2002 to convey to dealers they were more than customers, they are special. Managing Partner John Poteet also believes outstanding service begins with outstanding people, and the tradition of lagniappe is perpetuated by the employees’ drive to go above and beyond the customers’ expectations.

An important component of Louisiana’s 1st Choice Auto Auction’s success is the commitment to the latest and best technology for their dealers. Many independent auto auctions in the NAAA are on the cutting edge of auction technology which enhances the customer experience, even when the dealer can’t see the technology in action. This goes from the latest in auction software to implementing platforms such as Auction Pipeline, AWG simulcast, Auction Access, and social networking sites such as Facebook and Twitter. As technology advances, independents are searching for better and faster ways to please their customers and make their employees more efficient.

Of course, as dealers become more technologically sophisticated, auctions must respond to their needs. For example, Louisiana’s 1st Choice Auto Auction offers free Wi-Fi for dealers enabling them to use their wireless devices to get the latest information regarding in-sale vehicle information. Another important tool for buyers is the ability to buy online with a simulcast auction. However, sellers can also utilize simulcast to sell vehicles. This is a great feature allowing remote repping for dealers and institutional sellers who cannot attend the auction.

According to Poteet, dealers can still buy and sell in the lanes as always, but at Louisiana’s 1st Choice, they also have the options of using simulcast, or buying and selling 24/7 with OVE, OpenLane, SmartAuction, and Auction Pipeline. This choice of buying and selling platforms is unique to independent auctions and gives dealers a greater opportunity to conduct business than any other venue.

MANY DEALERS BELIEVE

INDEPENDENT AUCTIONS MAY NOT HAVE THE

TECHNOLOGY OR THE PRODUCTS OF A

CHAIN AUCTION, BUT THAT’S FAR FROM

THE TRUTH. THE SERVICES OFFERED BY INDEPENDENT

AUCTIONS RIVAL THE LATEST IN AUCTION OFFERINGS BY THE

LARGE CHAINS. --- JOHN POTEET, MANAGING PARTNER,

LOUISIANA’S 1ST CHOICE AUTO AUCTION

OH_0911.indd 10 8/22/11 2:20 PM

OH_0911.indd 11 8/22/11 2:20 PM


12


Key Messages to Communicate Focus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline. Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!” Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

Understanding Buy Here-Pay Here Customers: 2011 BHPH Buyer Study from AutoTrader.com Word count: 619 In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader.com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months. The results of this study affirm for the first time many common perceptions among the BHPH community about the priorities and behaviors of BHPH customers. There are also some new findings about their Internet usage as well as the amount of research BHPH shoppers are conducting prior to visiting a dealership. Finally, we identify key messages BHPH dealers can focus on to more effectively target their advertising and influence BHPH shoppers during the shopping process. Consumer Profile of the Average Customer BHPH Buyers vs. Traditional Buyers

58% Female

50% Female

39 Years Old

47 Years Old

<$50k Annual Income

>$50k Annual Income

44% Married

60% Married

Poor Credit Rating

Excellent/Very Good Credit Rating

The Findings Four out of five BHPH customers conduct research before visiting the dealership. According to the study, 81 percent of BHPH vehicle buyers said they performed either some or a great deal of research as part of the car shopping process before going to a dealership compared to the 19 percent who stated they conducted very little research.

Key Messages to Communicate Focus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline. Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!” Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.

Understanding Buy Here-Pay Here Customers2 011 B H P H B U Y E R S T U D Y F R O M A U T O T R A D E R . C O M

In October 2010 and January 2011, the National Alliance of Buy Here-Pay Here Dealers (NABD) and AutoTrader.

com teamed up for a groundbreaking study to define the consumer profile of the average BHPH customer and to understand the unique shopping needs of this customer segment. The two-part study included qualitative focus groups conducted in Los Angeles and Dallas and a national quantitative online survey among 606 BHPH buyers who purchased within the previous 18 months.

The results of this study affirm for the first time many common perceptions among the BHPH community about the priorities and behaviors of BHPH customers. There are also some new findings about their Internet usage as well as the amount of research BHPH shoppers are conducting prior to visiting a dealership. Finally, we identify key messages BHPH dealers can focus on to more effectively target their advertising and influence BHPH shoppers during the shopping process.

CONSUMER PROFILE OF THE AVERAGE CUSTOMERBHPH Buyers vs. Traditional Buyers

The FindingsFour out of five BHPH customers

conduct research before visiting the dealership. According to the study, 81 percent of BHPH vehicle buyers said they performed either some or a great deal of research as part of the car shopping process before going to a dealership compared to the 19 percent who stated they conducted very little research.

Seventy percent of BHPH shoppers regularly use the Internet; that’s as much as traditional shoppers for general purposes. However, BHPH car buyers do not use the Internet for vehicle shopping as much as traditional auto buyers.

With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is there’s an opportunity for BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer.

It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer.

First Step in the Shopping Process

KEY MESSAGES TO COMMUNICATEFocus on Approval: Since approval is a BHPH shoppers’ top concern, messages about financing approval should take precedence in BHPH dealer advertising – both online and offline.

Talk about Speed of Process: When making a dealership selection, many BHPH shoppers are interested finding a dealer who can handle the vehicle purchase process quickly, according to the study. The good news is 83 percent of BHPH dealers complete the buying process in two hours or less. As a result, this message is an important one to include in your advertising. For example, “Get Your Car in Less Than 2 Hours!”

Consider Reporting Customer Payments to Credit Bureaus: Only 37 percent of BHPH customers’ payments appear on their credit report; however, 63 percent of BHPH customers would like their payments reported. As a result, BHPH dealers should consider using messages such as, “We Can Help You Rebuild Your Credit.” Just be sure, if you advertise this message, you can follow through on it. Also, don’t forget to vet this message with your legal counsel.


With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is there’s an opportunity for BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer. It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer. First Step in the Shopping Process


With four out of five shoppers conducting research prior to visiting a dealership coupled with the high percentage of BHPH customers already online, the implication is there’s an opportunity for BHPH dealers to reach and influence their shoppers by tapping into the online automotive space with advertising messages and information that resonate with the targeted consumer. It’s important for BHPH dealers to align their advertising with the unique needs of BHPH shoppers. The need for financing approval drives the shopping process for BHPH shoppers. Nearly two out of three BHPH customers enter the process with securing financing or identifying a dealer as their first priority. While this information is in line with what the BHPH industry has long suspected, the key is to align your advertising messages with the shopping priorities of your customer base. Effectively communicating the right messages in your advertising may dramatically improve the chances of turning a shopper into an actual customer. First Step in the Shopping Process SEVENTY

PERCENT OF BHPH SHOPPERS REGULARLY USE THE INTERNET

BHPH

OH_0911.indd 12 8/22/11 2:28 PM

OH_0911.indd 13 8/22/11 2:20 PM


14


FREEDEALER EDUCATION ONLY ON NIADA.TV24/7

Watch where you

want......when you want

Sales • Operations • F&I • Remarketing •

Compliance • Legal/Regulatory

• Special Features • Industry Events

PLUS: Automotive Industry News &

Special Monthly Programs

www.niada.tv

Chances are your business has a business plan, a plan that describes your products, distributions

channels, marketing strategy, and revenue goals, among other things. A business plan helps you maximize the profitability of your business.

Whether you are aware of it or not, you also have a business succession plan for your business. A business succession plan is a roadmap for the transition of ownership and management of your business following disability, retirement, or death. While a business plan maximizes the profitability of your business, a well-crafted business succession plan maximizes the value of your business at the time of transition.

The challenge is, in the absence of thoughtful planning, the value of your business at the time of transition is likely to be much less than you hoped. Also, without a well-planned transition, there is a risk your business interest will end up in the hands of someone other than intended.

TRIGGERING EVENTSEvents such as disability, retirement, and

death are often referred to as triggering events. That’s because these events are so dramatic they trigger change, planned or unplanned. Understanding the natural consequences of these triggering events is often a prime motivator in developing a formal business succession plan.

Disability: The occurrence of a long-term disability – a disability lasting six months or more – that affects a small business owner impacts not only the financial well-being of the owner’s family but also the continuity of the business. In many cases, the owner is also a key employee. If an owner becomes unproductive due to disability, there may be insufficient cash flow to continue his or her salary. Even if the business is financially able to continue salary, court cases have held that, in the absence of a pre-disability salary continuation plan, payments to disabled owners may be considered non-deductible dividends rather than deductible compensation.

But, even deductible salary continuation payments to a disabled business owner are likely to create a strain on the business in the long-term. Healthy business owners may become resentful as they search for a replacement for their disabled colleague while struggling to grow the business in his or her absence. If it becomes apparent that the disabled owner is unlikely to return to work or return to work at full strength, the healthy parties may negotiate a purchase of

the disabled owner’s interest. Unfortunately, a disabled owner with dwindling resources is hardly in a position to drive a hard bargain. And, the healthy owners may face difficulties getting financing for the buyout if revenues are down.

Retirement: The retirement of a small business owner creates parallel concerns. Unless a pension, profit-sharing, or 401(k) plan is in place, the owner cannot count on an employer-sponsored retirement plan as a source of retirement income. Also, because the net worth of many business owners is tied up in their business, the owner may be unlikely to have substantial personal savings and investments to rely on in retirement. Consequently, it is often necessary to sell the business to achieve retirement income goals.

Unfortunately, although small businesses are often cash cows while the owner is healthy and working, finding a buyer that understands the business well enough to continue it profitably and pay fair market value for it can be a challenge.

Death: Upon the death of a business owner, the business interest becomes a probate asset similar to marketable securities, real estate, and household items. If the owner has a will, the business interest passes to the named beneficiary or as part of the residual estate. If the owner lacks a will, the business interest passes to his heirs under the laws of intestacy. A common disposition pattern calls for a portion of all property to pass to the surviving spouse and children.

One concern is that, following the death of an owner, surviving family members usually need cash, not stock certificates evidencing ownership in a small business that probably does not pay dividends to inactive shareholders. Again, finding a qualified buyer – one with financing or cash who is willing to pay a fair price – may be difficult.

Bottom Line: Whether the transition is triggered by disability, death, or retirement, in the absence of a formal business succession plan, the “plan” is uncertain income continuation for the owner or his or her heirs, uncertain tax consequences to the business, and diminished business value.

0200138-00001-00, Ed 04/2011, Exp 10/22/2012Provided courtesy of Prudential. For more information, contact Kerri Allard, a financial professional associate with The Prudential Insurance Company of America’s agency located in Marlborough, Mass. She can be reached at 508-382-4929.

Small Business Financial Tune-Up: Business Succession Plan

OH_0911.indd 14 8/22/11 2:20 PM

SEPTEMBER/OCTOBER 2011 T H E I N D E P E N D E N T D E A L E R

15


WHETHER YOU COLLECT SOCIAL SECURITY NUMBERS OR OTHER INFORMATION TO VERIFY A CUSTOMER’S IDENTITY DEPENDS ON THE NATURE OF YOUR BUSINESS AND THE RISKS YOU FACE.

Red Flags Rule Procedures, SSN Collection

The Red Flags Rule doesn’t require any specific practice or procedures for your identity theft prevention

program. It gives you the flexibility to tailor it to the nature of your business and the risks it faces. The FTC will assess compliance based on the reasonableness of a company’s policies and procedures. Businesses with a high risk for identity theft may need more robust procedures – like using other information sources to confirm the identity of new customers or incorporating fraud detection software. Groups with a low risk for identity theft may have a more streamlined program; for example, simply having a plan for how they’ll respond if they find out there has been an incident of identity theft involving their business. The FTC has designed a form to help groups at low risk for identity theft put together a program. It’s available at www.ftc.gov/redflagsrule.

The Red Flags Rule also doesn’t require you use Social Security numbers or any other specific identifying information. Whether you collect Social Security numbers or other information to verify a customer’s identity depends on the nature of your business and the risks you face. Actually, collecting a Social Security number by itself is not a reliable way to verify someone’s identity because the numbers are widely available and do not prove a person is who he or she claims to be. However, Social Security numbers can be helpful as part of a more comprehensive identity verification process; for example, as a way to check against information from other sources or as a way to get other information, like a credit report, which can be used to verify a person’s identity.

It’s a good data security practice not to collect more information than you need. If you are asking for a Social Security number, but not actually using it as part of a more comprehensive authentication process, reconsider whether your business really needs to collect and maintain it.

The Manheim Used Car Market Report (UCMR) is the definitive source of information and trends that shape wholesale

and retail used vehicle markets. The 2011 Mid-Year Report strives to help readers navigate an automotive industry facing rapid change. NIADA members may download a FREE copy of the Mid-Year UCMR via the instructions below. And new for 2011 – the Mid-Year UCMR is now available via iPhone, iPad and Android devices at no additional charge in addition to being available via the traditional .pdf format.

Free Mid-Year Used Car Market Report

OH_0911.indd 15 8/22/11 2:20 PM


16


NIADA’s Certified Pre-Owned Program Available to Members NationwideG R E G L E V I O F N I A D A C E R T I F I E D A N S W E R S Q U E S T I O N S A B O U T T H I S G R E A T O P P O R T U N I T Y F O R A L L N I A D A M E M B E R S .

TELL US BRIEFLY ABOUT THE CPO PROGRAM THAT NIADA HAS DEVELOPED FOR OUR MEMBERS.

NIADA sought a program that allowed its membership to compete in the certified marketplace. After several years of research and due diligence, NIADA selected NAC as its plan administrator and rolled out the program nationwide. This is significant for a couple of reasons. First, NAC has been around more than 25 years and has a solid reputation for service and a foundationally strong financial position. Second, NAC provides a Contractual Liability Insurance Policy (CLIP) to each enrolled dealer. This policy assures the dealer of zero financial responsibility in the event anything ever happens to the program itself or the administrator.

NIADA certification provides the participating dealer the opportunity to present a vehicle as certified after passing a checklist. The checklist has nine categories, 31 components and the equivalent of a 100-plus point inspection.

Once complete, the dealer simply reports the vehicle through our online application. Once reported, the dealer is afforded the following: the ability to print a fully compliant Buyers Guide, the ability to print an elegant checklist to be used as a window sticker or online, the ability to print a free AutoCheck vehicle history report, access to an online media marketing kit and the ability to syndicate the vehicle to various portals.

HOW DOES THIS PROGRAM RATE COMPARED TO OTHER CPOS OUT THERE (OEMS, ETC.)?

The NIADA certification is very comprehensive, both in terms and coverage. Coverage is for 12 months or 12,000 miles, whichever comes first. There are no deductibles…that’s right, zero deductible. Coverage is not simple powertrain coverage, but includes heating and air conditioning and even seals and gaskets to name a couple of differences.

WHAT DOES A PROGRAM LIKE THIS DO FOR AN INDEPENDENT DEALER?

Today, franchise dealers are the only dealers able to promote certified through the manufacturer. A customer searching for a certified vehicle, using the certified filter for the search, would have never seen an independent dealer’s inventory. NIADA Certified gives independents the opportunity to compete for the certified buyer. The program also builds value for the dealer at the wholesale marketplace. Representing a vehicle as certified builds value and creditability for the vehicle as it goes through the lane. As a matter of fact, OPENLANE, a premier online auction, created a specific vehicle listing category for NIADA certified vehicles.

WHAT ARE THE COSTS AND SETUP FEES?

There are no set-up fees and all marketing materials are provided at no cost. Once a dealer enrolls, NIADA Certified has a variety of online training classes. One is the implementation call. Once completed, the dealer is forwarded marketing and advertising material. There is no cost to the dealer until the vehicle is retailed, at which time the limited warranty coverage begins.

DO YOU PROVIDE DEALERS WITH MARKETING MATERIALS, TRAINING, ETC.?

NIADA Certified provides all material for free. Training is done online. We keep a training calendar on www.niadacertified.com. Training is consistent and we frequently offer our strategic partners the opportunity to present best practices training.

Tell us about some of the endorsements this program has received from other industry partners (eBay, OPENLANE, etc.).

We syndicate NIADA Certified inventory to eBay, Auttr Motors and EveryCarListed.com. These are the portals recognizing the certified program. We are constantly looking for additional portals, as well as lenders, to acknowledge the program advantages.

WHAT ARE DEALERS SEEING WHO ARE USING THIS PROGRAM?

More eyeballs, more buyers, more money.If you are interested in learning more

about the NIADA Certified Pre-Owned program, visit www.niadacertified.com.

NIADA

Learn Morewww.niadacertified.com

A CUSTOMER SEARCHING

FOR A CERTIFIED VEHICLE, USING

THE CERTIFIED FILTER FOR THE SEARCH, WOULD HAVE

NEVER SEEN AN INDEPENDENT

DEALER’S INVENTORY.

OH_0911.indd 16 8/22/11 2:20 PM


17


Wells Fargo Auto Finance recently released its annual awards, honoring four auctions in different categories. The lender recognized the following auctions as winners:

• ADESA Kansas City: Most Improved Site

• Manheim Baltimore-Washington: Best Certification Results

• Manheim Ohio: Best Online Performance

• Manheim Orlando: Operational Excellence

Sharing his praise for all the winners, Howard Segal, vice president and national remarketing manager at Wells Fargo Auto Finance, said the following about the trio of Manheim winners: “Our Manheim locations have consistently demonstrated superior industry performance and we are pleased to recognize the Orlando, Ohio and Baltimore-Washington locations for their outstanding contributions in assisting us in reaching our overall remarketing objectives.”

In a similar statement regarding ADESA Kansas City’s win, Segal also noted: “We consider the auctions to be an important partner in the remarketing process. ADESA Kansas City and Fleet and Lease Manager Cindy Kuhn are extremely proactive in regards to our account, and we appreciate their hard work and attention to detail.”

Also offering their perspectives were leaders with two of the winning auctions.

“We value our relationship with Wells Fargo Auto Finance, and we’re pleased to accept this award,” said Harold Chapman, ADESA Kansas City general manager. “Our team is committed to listening to our customers’ individual needs and providing them the top level of service possible.”

He added, “We are honored by this recognition, and we look forward to supporting Wells Fargo Auto Finance for many years to come.”

Butch Herdegen, general manager of Manheim Orlando, noted: “Manheim Orlando strives to deliver a premium experience in every aspect of our business. Receiving this special recognition for the fourth consecutive year means we are doing our job and we plan to continue delivering top performance to all of our valued partners and dealers for many years to come.”

Wells Fargo Recognizes ADESA, Manheim Auctions

OH_0911.indd 17 8/22/11 2:20 PM


18


Identity Theft Prevention A Good IdeaThe Red Flags Rule requires many

businesses and organizations to implement a written identity theft

prevention program to detect the warning signs, red flags, of identity theft in their day-to-day operations. The staff of the Federal Trade Commission has heard from companies that are developing programs from across the country. Their questions, and the FTC’s answers, may help you develop a program for your dealership.

For example, creditors or financial institutions must develop an identity theft prevention program even if they already comply with data security requirements such as the Health Insurance Portability and Accountability Act (HIPAA) or the Gramm-Leach-Bliley Act (GLB). It’s even a good idea for dealers who may not fall under a creditor or financial institution definition.

The FTC strongly encourages reasonable data security practices, but the Red Flags

Rule is not a data security regulation. Good data security practices – such as collecting only the personal information you need, protecting that information, and securely disposing of what you no longer need – help ensure personal information does not fall into the hands of identity thieves. For more information on data security, visit www.ftc.gov/infosecurity.

The Red Flags Rule picks up where data security leaves off. If identity thieves do get hold of someone’s personal information, they typically use it to get goods or services from unsuspecting businesses and have no intention of paying the bill. By having companies set up procedures to look for and respond to the red flags that an identity thief is trying to use someone else’s information, the rule seeks to reduce the damage crooks can inflict both on victims of identity theft and on businesses left with accounts receivable they’ll never be able to collect. While you may be able to incorporate some of your data security practices, your identity theft prevention program is a different kind of plan aimed at preventing a different kind of harm.

TO READ ADDITIONAL FAQS REGARDING THE RED FLAGS RULE, VISIT THE FTC’S SITE ON THE SUBJECT AT HTTP://WWW.FTC.GOV/BCP/EDU/MICROSITES/REDFLAGSRULE/FAQS.SHTM.

FAQS

OH_0911.indd 18 8/22/11 2:20 PM


19


Results from ShipCarsNow’s 2011 survey of independent and franchise auto dealers show dealers

want more auto transport options when buying vehicles online from wholesale auto auctions.

Preliminary results show the number of dealers who buy pre-owned vehicles via online auction is steadily increasing year over year, and those auctions are increasingly located farther away from the dealership. More dealers report they are expanding their search for wholesale autos nationwide. In 2009, 75 percent of dealers reported they usually sourced inventory within 50 miles of their dealership and only 14 percent were shopping as far away as 500 miles or more. In ShipCarsNow’s 2011 dealer survey, 35 percent of dealers reported they shop nationally and more than half of the survey respondents said they planned to buy more inventory online in 2011 compared to 2010.

So, what does this mean for online and simulcast auto auctions? ShipCarsNow reports 63 percent of dealers surveyed said they think online auto auctions should improve transportation options. Almost half said they would purchase more vehicles online if auctions improved auto transport services and increased reliability

of condition reports. Suggestions that ranked highest included providing the transportation cost before or during the bidding process and the ability to see discounts for multiple vehicle shipments, as well as the ability to combine vehicles with other dealers’ for economies of scale. Dealers also reported they’d like to see multiple auto transport bids, and that price and reliability are key requirements for any auction offering auto shipping services.

So, what is the bottom line? Like any savvy consumer, auto dealers want options. They want to shop where they want, and when they want. They want vehicles delivered safely, timely and economically. And they want the transaction process to be intuitive and hassle-free. Innovative auto transport companies and online auto auctions need to collaborate to develop the tools and services that dealers need. For more information about ShipCarsNow’s 2011 Dealer Survey, visit www.ShipCarsNow.com; the complete survey report will be available soon.

FAQS

Dealers Want Better Auto Transport Options from Auto Auctions

SO, WHAT IS THE BOTTOM LINE? LIKE ANY SAVVY CONSUMER, AUTO DEALERS WANT OPTIONS.

OH_0911.indd 19 8/22/11 2:20 PM


20


NIADA Honors 2011 National Quality Dealer

Texas’ Scott Allen was named NIADA 2011 Quality Dealer of the Year during televised ceremonies at

the National Independent Automobile Dealers Association (NIADA) 65th Annual Convention & Expo at Caesars Palace last night. The award is considered the most prestigious member honor sanctioned by the 20,000-member trade association, according to Michael R. Linn, NIADA’s CEO.

Allen is owner of AutoLand in Haltom City, Texas, and is a 20-year veteran of the automotive industry. He was one of 20 people competing for the national recognition after being named as quality dealer by the state association.

“I am proud of the standards our members meet and Scott epitomizes the quality of dealer professionalism that our members strive to reach,” Linn said. “Scott earned the right to be called NIADA’s Quality Dealer of the Year for his efforts both in his dealership and in his community.”

NIADA National Quality Dealer candidates are judged on a variety of factors including contributions to the automotive industry and community involvement. Northwood University provides a panel of judges to help select the annual winner.

Allen began his career by opening a Buy Here-Pay Here (BHPH) dealership on a

leased lot in 1991 with his recently retired father, Garry Allen. Two years later, he relocated to a one-acre lot with a single, cinder-block structure and 35 vehicles. In 2001, he began upgrading the site with a new, 2,000-square-foot office building as well as a larger lot. Auto Land has eight employees today and keeps more than 75 vehicles in inventory.

“Auto Land is in business to sell and finance affordable, safe automobiles in a cost-effective manner while maintaining an environment of integrity, trust and respect,” Allen said. “It is our hope that our association with our customers will last many years and we will strive daily to improve the quality of services we can provide.”

Allen and wife Jodi have two daughters. He has been a member of the Texas IADA for 17 years, where he is president-elect. He also has served on the TIADA executive committee since 2007. Allen is president of the Fort Worth IADA, a post he’s held for the last five years.

In addition, Allen is a NIADA Certified Master Dealer and has been politically active on both the local level as well as the state level to improve business conditions for independent auto dealers. He also provides an annual endowment at his alma mater of Texas Tech University.

NQD

OH_0911.indd 20 8/22/11 2:20 PM


21


Edmunds.com Names Best Bets on Used Autos for 2011

Edmunds.com, the premier online resource for automotive information, released its 15 best used vehicle bets for 2011 in June. A total of 11 makes are represented on the list, with four makes (Ford, Honda, Hyundai and Toyota) each contributing two models.

BY SEGMENT, THE WINNERS ARE: •�Compact�Sedan:�2004-2009�Hyundai�Elantra•Midsize�Sedan:�2004-2009�Nissan�Altima•Large�Sedan:�2006-2009�Hyundai�Azera•Coupe:�2004-2009�BMW�3�Series•Convertible:�2004-2009�Mazda�Miata•Wagon:�2004-2009�Pontiac�Vibe•Compact�SUV/Crossover:�2004-2009�Honda�CR-V•Midsize�SUV/Crossover:�2004-2009�Ford�Explorer�•Large�SUV/Crossover:�2004-2009�Chevrolet�Tahoe�•Minivan/Van:�2004-2009�Honda�Odyssey•Compact�Truck:�2004-2009�Toyota�Tacoma�•Large�Truck:��•Luxury:�2004-2009�Infiniti�G35/G37�•Hybrid:�2004-2009�Toyota�Prius•Sport�Compact:�2004-2009�Subaru�Impreza�WRX

A�team�of�Edmunds.com�editors�assembled�the�list,�which�emphasizes�the�most important criteria to consider when researching and deciding on a used�vehicle:�reliability,�safety,�value�and�availability.�Eligibility�was�limited�to�vehicles�ranging�in�age�from�2�to�7�years.

For more details on Edmunds.com’s selection process and for a brief description of all the cars on this year’s list, visit 2011 Used Car Best Bets at www.edmunds.com/car-reviews/best-used-cars.html.

The used motor vehicle industry is alive and well, and news of independent dealer sales eclipsing franchise dealer sales of used autos over the last few months is even�more�encouraging.��The�13th�edition�of�NIADA’s�Used�Car�Industry�Report�brings�you a snapshot of all of this activity and provides valuable insight in all aspects of�dealer�operations.�The�complete�2011�edition,� unveiled� at� NIADA’s� 65th� Annual�Convention�&�Expo�last�month,�is�available�for viewing and download at www.niada.com/publications.

Business is Getting Better

2 0 1 1 • N I A D A U S E D C A R I N D U S T R Y R E P O R T 1

w w w . n i a d a . c o m

UCIR_2011.indd 1

5/27/11 2:49 PM

FAQS

OH_0911.indd 21 8/22/11 2:20 PM


22


OH_0911.indd 22 8/22/11 2:20 PM


23


OH_0911.indd 23 8/22/11 2:20 PM


24


OH_0911.indd 24 8/22/11 2:20 PM


25


REMEMBER: Experience doesn’t mean you know all the laws!

Approximately 9 out of 10 dealers violate the following laws & compliance requirements monthly:

(1)Adverse Action Compliance (2)Privacy Laws (3)OFAC Compliance (4)Risk Based Pricing (5)Red Flag Rule (6)Safeguard Rule (7)Gramm Leach Bliley Act (8)Selling Out Of Trust (9)Power of Attorney Compliance (10)Truth In Lending (11)Temp Tag Compliance (12)Consignment Compliance (13)IRS Form 8300 Compliance (14)FTC Buyers Guides (15)Spot Delivery (16)Ohio Deposit Rule (17)Written Limited Warranty (18)Repossession Violation (19)GPS Disclosure (20)Illegal Fees (21)Odometer Disclosures (22)UDAP Statutes (23)TDR Compliance (24) Payroll Violations (25)Paying Bird Dog Fees (26)Title Compliance (27)Temp Tag Compliance (28) Doc Fees (29) Forms Compliance (30) IRS Rules

Every year more than 800 used vehicle dealers go out of business in the state of Ohio and the majority of these dealers violated one or more of the laws listed and didn’t know they did anything wrong until it was too late. As a licensed dealer, you are required by law to comply with many laws that you may not be aware of and violation of any of these laws will result in:

a) Lawsuits b) Fines as much as $11,000 per vehicle c) Suspension and or revocation of your license

The WORKSHOP IS HELD THE LAST MONDAY OF EVERY MONTH. It will be eight hours in length and lunch will be included for all attendees. The price for this workshop is $98 per person and everything listed above will be addressed at this workshop and much more. Now the decision is up to you but if you violate the law this time, what excuse will you use? Remember……you can’t tell the judge you don’t have time to attend. To check the dates this workshop is being offered, go to www.ohiada.org and check the Event Calendar or call the OIADA at 614-863-5800 and get registered today.

OH_0911.indd 25 8/22/11 2:20 PM


26


MEMBER APPLICATION Jim Mitchell received this year’s Association Executive of the Year

Award, presented by Adam Jones of the NIADA Association Ex-ecutives Council at the NIADA 65th Annual Convention & Expo

at Caesars Palace in June.Mitchell, who began his automotive career in 1969 in franchise

sales, has been the executive director of the Ohio IADA since 2004. Due to his efforts as a dedicated and motivated association man-ager, OIADA has enjoyed new financial stability and membership had grown to its highest level in the association’s history.

After studying accounting and business administration in college, Mitchell began his automotive industry career in 1969. During a 15-year period, he worked as a salesman, became an F&I manager, then a general sales manager. Later, he became the co-owner of a Buick-Mazda dealership.

In the mid-80s, Mitchell sold his interest in the dealership and began an automotive management, consulting and sales training company. He provided management and sales training within both the automotive and marine industry across the U.S. and throughout Europe and Asia. During this time, Mitchell also was the executive vice president of R.E.C. Technologies and within a period of six years, he expanded sales and distribution channels for the company throughout the U.S. and into more than 20 other countries.

Mitchell Receives Association Executive of the Year Award

OH_0911.indd 26 8/22/11 4:22 PM

OH_0911.indd 28 8/22/11 2:20 PM

oh_0911_o

Documents

s i t u s

t w w w

s s o c

e r septemberoctober

f f i c

o r ginside dont

association executive

niada state publications