Cox Automotive has three events remaining in its 2016 Interactive Dealer Summit and Elevate program series.
Each event is designed to help dealers attain profitability and advance their wholesale and retail operations in the face of declining margins and growing consumer expectations for the buying experience.
The lineup includes:
— The Philadelphia Interactive Dealer Summit in King of Prussia, Pa., on Nov. 16.
— The City of Industry Elevate Dealer Summit in City of Industry, Calif., on Dec. 6.
— The Universal City Elevate Dealer Summit in Universal City, Calif., on Dec. 8.
"We absorbed a lot of information and the topics were spot on," said Tim Watson, IT and digital marketing at Portland Volvo and Southern Maine Chrysler Dodge Jeep Ram. "I was able to come back to the dealership and put the best practices I'd learned into place right away, and we're already starting to see results. If dealers have the opportunity to attend an event this year, I can't recommend it highly enough."
Specific topics arranged to be discussed at the three events include improving staff training to elevate dealership performance; reducing days to sell and increasing inventory turns; and increasing consumer demand by improving the buying experience, both online and offline.
The events are open to the general dealer public and will consist of breakout sessions, keynote speakers and networking opportunities.
Dealers can also register to view the Nov. 16 summit live via simulcast.
For information about the Interactive Dealer Summit and Elevate programs and the upcoming events visit www.dealerlearningcenter.com.
There have been some big changes to the digital marketing landscape — ones that certainly impact dealers, says Kerri Wise, TrueCar's vice president of dealer marketing.
“We're in the era of the empowered consumer,” Wise said in a phone interview with Auto Remarketing. “And I think the consumer is really what's changing.
“They have a lot of information at their fingertips, in terms of pricing information and vehicle information,” she said. “They have technology that's ever-evolving that allows them to have that information wherever they go, in terms of their smartphone.
“And they have high expectations in terms of the experience. So I think with those three elements, in terms of the consumer, it's kind of forcing dealers to also adjust to meet the needs of that consumer.”
In fact, TrueCar recently conducted a study of its dealer partners that closed sales at the highest rates (relative to competitors).
The company found that these dealers were the ones who were strongest at “meeting needs of that empowered consumer and connecting the dots between what happens online and then what happens off-line, in the store — which is a much more difficult thing to do these days,” Wise said.
Wise will discuss this concept of the “evolving consumer” further during her presentation at the CPO Forum, part of the Used Car Week Conferences being held Nov. 14-18 at the Red Rock Casino, Resort & Spa in Las Vegas.
Her session — titled “Key Tactics to Compete and Win in Today's Transparent Marketplace” — will be held at 4 p.m. (PT) on Nov. 15.
“One of the advantages that we have at TrueCar is that we're watching some of the patterns of consumers from shopping all the way through the sale,” she said.
“And so we learn a lot about not only how they shop, but how they're changing. And so I'm going to be using some of that insight from consumers as well as our observations and studying of our top-performing dealers to understand how these top-performing dealers close at a high percent in a transparent way,” Wise said. “It's easier said than done.
“We'll be looking at these consumer insights, combined with these best practices from real dealers that are balancing transparency and balancing their bottom line, and sharing that with the audience in terms of what makes them successful,” she said.
This year, hundreds of independent dealers who previously attended Innovate: The Independent Dealer Conference will instead set their sights on DealerSocket’s User Summit. The seventh annual conference will host dealers from both the franchised and independent space with more than 1,100 guests expected.
This is the first year that User Summit attendees will be able to choose an independent track (from more than 70 total classes) that highlights today’s most pressing compliance issues, industry insights and best practices from other dealers, as well as new independent technology.
Breakout sessions will cover the latest developments in compliance; digital marketing; customer experience; DMS, CRM and inventory management technology; business management; sales and marketing; and more. There is even a track covering the sales, service, F&I and collections concerns of buy-here-pay-here dealers.
“We are thrilled to expand our annual User Summit to welcome former Innovate attendees into the fold. Last year, we introduced a small selection of independent classes, but starting this year, we are officially merging with Innovate and multiplying our schedule to include a Texas-sized offering for independent attendees,” said Peter Ord, national sales director, independent at DealerSocket.
“Whether you are a member of the DealerSocket family or just interested in educating yourself on the issues facing your business, User Summit will prepare you for the future of independent,” Ord continued.
Among what's in store, DealerSocket will officially launch Blackbird at this year’s event, complete with on-site demos. Blackbird includes the company’s brand-new CRM, as well as the long-awaited iDMS.
DealerSocket will also release its second annual Independent Dealership Action Report, a comprehensive, data-packed guide on the state of today’s independent industry and how dealers can thrive amid its challenges.
User Summit 2016 will take place Oct. 3-5 at the JW Marriott San Antonio Hill Country Resort and Spa. For more information or to register, visit http://usersummit.dealersocket.com/ind.
I thought I would diverge from my normal discussions this month as a result of a recent customer forum hosted by ShipCarsNow.
First, let me say that the graciousness of the management of ShipCarsNow and the incredible attention to detail of the staff could create standards for any industry conferences going forward.
With that said, this conference was a cross-section of OEM remarketers, data service companies and logistics and transportation experts along with auction veterans.
Our discussions covered a broad range of historical, current and future challenges and opportunities with very little disagreement on what those areas actually initialed.
The interesting dynamic in this event was the willingness of all the participants to listen to and understand that all the pieces represented had a symbiotic relationship and success for all was truly the success for each individual piece of the remarketing puzzle.
Equally important were the discussions surrounding interpersonal relationships in all segments of the remarketing chain, as our near-cult following to net-based services tends to lead us into a myopic vision of what we think our customers want and need.
Clearly, issues like recalls, data streams, analytics and logistics affect all of us, but more importantly, our goal is to create, based on legal and company dynamics, a transparent transaction to ensure our end users value and appreciate the product we deliver and the stream we deliver it in.
Forums like this one allow us to discuss, build personal relationships and look at systems to create just that: transactions in the used wholesale vehicle space that give our customer base all the information they need to consistently purchase and resell vehicles, increase their profitability and their churn, then returning to whichever channel they choose to purchase their next one, either upstream, downstream, in-lane or online.
To all of you attending with me — and you know who you are — my sincerest thanks for your insight and for your partnership in moving this essential industry forward.
Jim DesRochers is vice president at Dealers Auto Auction of the Southwest.
Online registration and hotel selection for the 2017 NADA Convention and Expo in New Orleans is now open.
The four-day convention, which runs from Jan. 26-29, will be held at the Ernest N. Morial Convention Center. Considered the auto industry event of the year, the NADA convention includes dealer franchise meetings, workshops, an exhibitor showcase and numerous networking events.
NADA Convention speakers include comedian Jim Gaffigan and NADA chairman Jeff Carlson on Jan. 27; and inspirational speaker Amy Purdy and NADA vice chairman Mark Scarpelli on Jan. 29. A fifth speaker will be announced in the coming weeks.
Kicking off the convention will be the NADA 100 Carnival, one of many events being held in honor of NADA’s 100th anniversary.
The exclusive event for NADA members, international affiliates and guests will be held at Mardi Gras World from 7 to 10 p.m. on Jan. 26. The carnival will feature cuisine from top New Orleans restaurants, as well as entertainment from the headlining band Foreigner, Cowboy Mouth and local jazz musicians. The NADA member and manager registration fee includes admission to the NADA 100 Carnival.
NADA members and their managers who register for the convention by Sept. 9 will receive a $100 discount from the onsite rate. The member dealer and manager registration fee includes admission to the NADA 100 Carnival, and convention badges must be presented at entry. A limited number of carnival tickets will be available for purchase by non-member dealers and managers; allied industry attendees are not eligible to purchase carnival tickets. Shuttle buses will be provided to and from Mardi Gras World and the official NADA hotels.
For more information and to register, click here.
A closer look at the convention speakers
Jim Gaffigan: Gaffigan, an entertainer and father of five children, has achieved major accomplishments in stand-up comedy, acting and writing, including two New York Times best-selling books, Dad Is Fat and Food: A Love Story. His semi-fictitious television show, “The Jim Gaffigan Show,” which TV Land picked up, is in its second season. Gaffigan has also guest starred on many television comedies, dramas and movies. With multiple projects in motion, Gaffigan is currently traveling the world with his stand-up tour, “Fully Dressed.” He is one of only 10 comics in history to sell out Madison Square Garden.
Jeff Carlson: Carlson is president of Glenwood Springs Ford and Glenwood Springs Subaru in Glenwood Springs, Colo., and co-owner of Summit Ford in Silverthorne, Colo. As NADA’s 2016 chairman, Carlson is leading franchised new-car dealers through some of the most pressing legislative and regulatory challenges they have faced in years, including attacks on indirect auto financing and the dealer franchise system. Carlson started in the auto business in 1973, working for Ford Motor Co. In 1979, he joined Glenwood Springs Ford-Lincoln-Mercury as a sales manager. He purchased a stake in the dealership in 1982 and became president in 1986 and expanded the business to three dealerships. He represents Colorado’s new-car dealers on NADA’s board of directors. Carlson is a past TIME Dealer of the Year nominee representing Colorado.
Amy Purdy: Through poignant and inspirational stories, Purdy informs audiences on how to use their challenges to push past their limits and live life without barriers. She lost her legs, kidneys and spleen to bacterial meningitis at age 19. Today, she is a top-ranked adaptive snowboarder, author of the New York Times best-seller On My Own Two Feet, actress, model and clothing designer. Purdy competed on ABC’s “Dancing with the Stars” and was the show’s first double-amputee contestant.
Mark Scarpelli :Scarpelli is NADA's 2016 vice chairman, as well as president of Raymond Chevrolet and Kia in Antioch, Ill. His keynote address will highlight the association’s key priorities for 2017. Scarpelli, a second-generation dealer, worked his way up learning all areas of the dealership. In 1986, he was hired by General Motors as the district sales manager for the Boston zone, and three years later returned to the family-run dealership. He represents Metropolitan Chicago’s new-car dealers on NADA’s board of directors.
It’s already a record-setting 2016 NIADA Convention and Expo, and the National Independent Automobile Dealers Association is just getting its week of meetings, training, networking and other festivities started.
The 70th anniversary convention opened on Monday at its new venue — the recently renovated Mirage Hotel and Casino in Las Vegas — having already surpassed the record for most registered attendees, breaking the previous record by 19 percent.
That previous record was set at the 2006 Convention and Expo at the Las Vegas Hilton.
That record number is expected to grow with on-site registrations to solidify the event’s place as the largest in its 70-year history.
NIADA highlighted that convention attendance had already been trending upward as last year marked the third consecutive increase, an 8 percent rise above the 2014 event. The 2016 convention attendance received an extra boost from the addition of the BHPH World Convention, one of the assets acquired by NIADA from Leedom and Associates in December.
That convention has been folded into the NIADA Convention and Expo, significantly expanding its buy-here, pay-here and subprime auto finance training.
As a result, the 2016 NIADA Convention and Expo offers more dealer education sessions on more topics than ever before, including an extensive BHPH component led by NIADA national director of 20 Groups Chuck Bonanno.
Bonanno is a 13-year veteran of the Leedom operation who joined NIADA to grow the newly acquired educational assets, which also include 20 Groups, boot camps, dealership consulting and BHPH Dealer magazine.
The association also mentioned this year's event also boasts the largest expo hall ever with more than 170 exhibitors in a space some 10,000 square feet larger than last year’s Expo at Caesars Palace.
As always, the 2016 NIADA Convention and Expo features the insight of NIADA director of dealer development Joe Lescota and compliance sessions led by NIADA senior vice president of legal and government affairs Shaun Petersen, as well as industry knowledge and ideas from some of the industry’s best and brightest, including TrueCar chief executive officer Chip Perry, Autotrader’s Howard Polirer, Equifax’s Angelica Jeffreys, AutoZone's Ray Curry, NABD president Ken Shilson, Cox Automotive chief economist Tom Webb and more.
In addition, the convention includes social events, networking opportunities and events to honor the used vehicle industry’s best — the National Leadership Awards Banquet on Wednesday night and the National Quality Dealer Award ceremony Thursday night.
The month of June has kicked off with our team moving full-speed ahead with planning and prep for this year’s
Used Car Week, which will be held Nov. 14-18 at the Red Rock Resort in Las Vegas.
Each year at Used Car Week, the unique market conditions within the used-car industry drive the content, as do the various vendor participants, corporate and association partners, and others who will make Red Rock their home for the week.
This year, I anticipate that one major topic will be the catalyst for discussion and debate both on and off the stage: supply surge.
Even as you read this, there are thousands of used vehicles pouring through traditional auction lanes, digital marketplaces and disruptor remarketing channels into dealer inventory.
Serious questions remain as to how this significant increase in inventory will be managed and how the industry can facilitate the sale — or lease — of these used vehicles to consumers. And serious questions have a way of eliciting serious answers.
As the early agenda comes into focus, the faculty of speakers, panelists and presenters from all corners of the used-car industry is impressive.
At the CPO Forum, America’s Used Car Conference, the data, analytics and information related to supply, pricing, wholesale acquisition and retail sales strategy will provide valuable insights for dealers, OEM and other executives, arming them with an advantage to close the year strong and open 2017 with a head start on their competition.
The SubPrime Forum, in partnership with our colleagues at the National Auto Finance Association, will deliver an unmatched opportunity for auto finance executives across all spectrums to learn, network and return to their offices smarter and better prepared than ever before.
I certainly expect the same with our Re3 Conference. Repossessions and recoveries are such an integral piece of the auto finance and remarketing puzzle, and this segment of Used Car Week has continued to grow in value and importance to the industry.
This year marks the first for the combined meeting of the National Remarketing Conference and the National Auto Auction Association Convention. The planning for this combined event is moving along smoothly, and I credit my staff as well as the Frank Hackett-led NAAA team for making terrific progress in such a short amount of time.
The industry estimates that by combining the NAAA events with Used Car Week, the cost savings in travel, time, lodging, food and more may climb into the millions of dollars. For so many of us who genuinely enjoy the time we spend with colleagues and appreciate the advantage in-person meetings and conversations have for our business relationships and profitability, this is an amazing opportunity.
The NAAA-member auctions, the parent and sister companies, the associate members and more play an important role in the automotive industry, and these businesses continue to be the strength and foundation of the auto remarketing industry.
Saving time, money and providing great value has been at the heart of the auction business since day one. And as the NRC and the NAAA join together, we stay true to that goal by helping the industry save money in expenses, travel time and more.
Supply surge. No doubt about it, it’s here. Be sure you’re better prepared than your competitors to take advantage of the market opportunity for your company and your career.
We want to partner with you to help make that happen. Make plans now to join the smartest people in the industry at Used Car Week in November.
Feedback from recovery professionals who attended this year’s North American Repossessors Summit (NARS) highlighted how much the event was successful and demonstrated the ongoing improvement and evolution of the space.
Organizers of the event hosted by American Recovery Association indicated that the summit ushered in a “new era” for the recovery and remarketing industry. From a record-breaking attendance of nearly 600 attendees, including recovery and remarketing professionals and finance companies, to a wildly successful auction contributing $9,600 to the Recovery Agents Benefit Fund, organizers believe NARS has proven to be a “must attend” event.
“The new lender meetings were a tremendous benefit to both lenders and attendees,” said John Messiha, department manager repo operations at Capital One Auto Finance and one of Auto Remarketing’s inaugural group of Remarketing & Used-Car Industry’s 40 Under 40.
“There’s no better place to connect with talented recovery and remarketing professionals who would be a great asset to our teams,” Messiha added.
John Lewis elaborated about those points and more in a blog post published by masterQueue, which is powered by Intellaegis. Lewis is the president of Intellaegis and has served in moderator roles for the Re3 Conference at Used Car Week, as well.
“There is a great deal of value and insight lenders can bring and gain,” and if (ARA consultant Les McCook) and his team continue to keep working on the agenda, educational topics, and networking opportunities between all forwarders, skip companies, repossessors (small and large) and all lenders who are pushing the work and managing these critical relationships, it’s a win for everyone,” Lewis wrote here.
“Additionally, we’re starting to see a larger impact in the industry by a variety of technology vendors, and when you put everyone together, great things can and are happening,” he continued. “Given the constant regulatory scrutiny, and especially in light of the tricky waters we all have to keep trying our best to navigate, events like this are critical and should be mandatory on every lenders calendar.”
NARS 2017 dates will be announced soon, ARA said.
The content at this year’s summit wasn’t just focused on skip-tracing and repossessing vehicles. The keynote address came from Vietnam veteran and four-time Super Bowl champ Rocky Bleier.
“Bleier brought the house down with his concluding presentation about perseverance and how the smallest to biggest things can help ensure you’re living out your purpose,” ARA said. “The football legend not only talked about success and what it takes to achieve it, but also brought the fruits of his labor for all to admire — his four Super Bowl rings.”
The unintended consequence.
That’s what Jeff Carlson, the 2016 chairman of the National Automobile Dealers Association, said NADA is trying to prevent through its policy work in Washington, D.C.
The Colorado Ford and Subaru dealer said many of the federal government’s regulatory and policy moves related to the car business have good intentions, but could end up hurting consumers.
This plank of NADA’s platform was part of a wide-ranging emailed Q&A between Carlson and Auto Remarketing three weeks prior to the dealer association’s annual convention.
“NADA’s policy engagement efforts all have a common theme — and that’s protecting consumers from the unintended consequences coming out of Washington, D.C., and informing other key stakeholders about the tried-and-true benefits of the dealer franchise system,” Carlson said when asked about NADA’s goals and focus for 2016.
“A major focus of NADA continues to be encouraging dealers to adopt the NADA/NAMAD/AIADA Fair Credit Compliance Program as the best way to address the issue of fair credit risk in auto financing,” he said.
“This voluntary compliance program was structured to reflect a program by the U.S. Department of Justice that fully addresses fair credit risk in auto lending, while preserving the dealer discounts that are the hallmark of competition and consumer savings in the marketplace,” Carlson said.
(More on Carlson’s chairmanship goals below)
Policymaking and regulatory issues were also a key point when Carlson addressed the biggest hurdles for dealers. Auto Remarketing asked him what he sees as the biggest challenges for franchised dealers in 2016, and how these might be used as opportunities.
“There are many federal regulatory issues today that could hurt our customers with higher costs. Whether it’s eliminating competition in the auto finance market or enacting an overly broad and counterproductive recall policy, there are a number of ideas emanating out of Washington, D.C. that, while well-intentioned, could result in negative unintended consequences,” Carlson said. “In these areas, NADA is working hard to protect consumer rights, consumer choice and consumer savings.
“Vehicle affordability must be a bedrock principle for national policymakers. Affordability expands consumer choice and drives consumer acceptance,” he said. “Consumer acceptance drives fleet turnover. And fleet turnover achieves the desired results of economic growth, improved fuel efficiency and safer vehicles on our roadways that we all want.”
What’s needed to fix recall process
Going back to one of Carlson’s policy points — that of vehicle recalls — it’s safe to say the auto industry has never seen anything like the current recall environment. Citing data from the National Highway Traffic Safety Administration, Carfax said in a recent analysis that more than 51 million recalls were issued in 2015, more than any year prior.
The same bit of analysis from Carfax, released in February and reported on by Auto Remarketing, says there were over 47 million vehicles in the United States that had at least one unrepaired safety recall, at the time of the report.
Numerous parties, be they government- or auto industry-based, have received criticism related to recalls, whether it’s their timeliness, execution or otherwise.
Suffice to say, the actual process and logistics behind the reporting, fixing and adjusting to recalls has arguably had its challenges.
Some, like AutoNation, have responded by not selling any vehicle under an open safety recall.
We asked Carlson what NADA plans to do to help make the recall process smoother for dealers.
“The nation’s franchised new-car dealers are the solution to completing safety recalls, and fully support achieving a 100-percent recall-completion rate. But we all have to remember that not every recall presents the same level of urgency to the driving public,” Carlson said.
“In fact, the vast majority of recalls are for minor compliance issues that present virtually no imminent safety risk to the driver, passenger or other drivers,” he said.
“So, why is it counterproductive from a safety standpoint to treat all recalls the same? Because studies show that prohibiting the sale of any used vehicle subject to any open recall, including the most minor of recalls, could drive down the value of trade-ins by literally thousands of dollars,” he said.
“And if we devalue trade-ins, we automatically give consumers an economic incentive to turn to private market sales, where evidence clearly shows that the recall completion rates plummet. Plus, when a consumer’s trade-in is devaluated, it becomes more expensive for that consumer to purchase a newer, safer car.
“So rather than adopting an overly broad recall policy that would be harmful to consumers and detrimental to goal of fixing recalls, a far better approach would be creating a system that properly differentiates truly dangerous recalls from minor ones,” Carlson said. “Dealers also support data-driven policies that empower consumers, including NHTSA’s public awareness campaign aimed at reminding cars owners that they may have a safety recall.”
Additional NADA goals
Beyond policy and regulatory issues, Carlson said NADA aims to continue giving dealers the training tools they need — through programs at NADA Academy, NADA University Online, NADA 20 Group and its annual convention — to adapt to changes in the car business.
NADA is also aiming to bring younger generations of dealers and dealership managers into the “grassroots legislative advocacy” process with their respective dealer associations.
For additional coverage of the NADA Convention & Expo, see Auto Remarketing's Special Convention Issue.
The U.S. Department of Transportation’s National Highway Traffic Safety Administration hosted a media conference call on Friday, outlining its current actions and future plans to prepare for the impending legislative needs of the United States in regards to future automated automobile technologies.
NHTSA’s communications director Gordon Trowbridge fielded many questions from journalists and industry analysts, including quite a few trying to get a better idea of when we can expect automated technologies, such as self-driving vehicles, to actually become a widespread reality. In short, Trowbridge made it clear that NHTSA’s role in the situation is to make sure it is prepared when such technologies do become widespread, not to decide when it actually happens.
The fact that the automotive and technology industries appear to be getting closer to making self-driving cars a reality in the next decade is evident, however, and NHTSA says it is taking several further actions to prepare.
One such action is to hold two separate public meetings in April to allow interested parties to come and provide feedback to NHTSA with their concerns and suggestions to help the federal body develop guidelines for the safe development of automated safety technologies.
The first will be held on April 8 in Washington, D.C.; the second will be held later in April at a yet-to-be-disclosed location in California, according to Trowbridge. He says that additional information for the California meeting, including the time, location and how the public can participate, will be released soon.
Trowbridge also said that NHTSA has engaged in a number of conversations with state legislations to get a dialogue rolling to keep the lines of communications open between state and federal governments on the topic of automated vehicle technologies. In terms of who will decide whether a vehicle’s automated technologies are safe, whether it be state or federal authorities, is still undefined.
In a release from NHTSA, Transportation Secretary Anthony Foxx commented on the organization’s goals in this situation.
“We are witnessing a revolution in auto technology that has the potential to save thousands of lives,” Foxx said. “In order to achieve that potential, we need to establish guidelines for manufacturers that clearly outline how we expect automated vehicles to function — not only safely, but more safely — on our roads.”
Establishing operational guidelines is just one of five of NHTSA’s initiatives that Foxx announced in January during the North American International Auto Show in Detroit. Here are the other four, as NHTSA listed in the release:
- President Obama’s budget proposal for a 10-year, $3.9 billion investment in advancing autonomous vehicle technology, including large deployment pilots in communities around the country.
- Working with states to develop model state policy.
- Using NHTSA’s existing authority to interpret current regulations, and offer limited exemptions from those regulations, in pursuit of advances that could increase safety.
- Determining what new regulatory tools and authorities might be required to meet NHTSA’s safety mission in an era of rapidly changing technology.
NHTSA also released its initial assessment of current Federal Motor Vehicle Safety Standards to identify the key challenges ahead between now and the full deployment of automated vehicles.
The report, prepared by the USDOT’s Volpe National Transportation Systems Center, basically found that there are very few existing federal regulatory hurdles for the deployment of automated vehicles that feature traditional designs and equipment that accommodate a human driver, for example those containing traditional controls like a steering wheel, gas and brake pedals, etc. According to Trowbridge, the biggest challenge will be in the area for new automated vehicles designs that don’t feature such traditional designs.
NHTSA Administrator Mark Rosekind commented on the findings of the report in a release from the administration earlier today.
“The Volpe Center report is a great first look at current standards, and it highlights the need for the actions Secretary Foxx outlined in January,” Rosekind said. “It also shows there are few current restrictions on some automated vehicle concepts, which highlights the need to establish clear expectations for their safe operation. At the same time, for other vehicle designs, the agency has more work to do to ensure the safety of new innovations, and we look forward to learning more from stakeholders as we start that work.”
The full report from The Volpe Center can be accessed here.
