This week, insurance marketplace Polly announced a collaboration with Cox Automotive’s VinSolutions to create what the companies called a “powerful” set of solutions that can help marketing, sales, service and operations workflows stay in sync.
This new collaboration will provide benefits for dealer customers of both Polly and VinSolutions, according to a news release.
The companies explained the integration also offers dealers a more efficient way to connect potential customers with Polly for insurance options, by pulling customer information from the dealership’s CRM to help prefill leads automatically within Polly for Dealers.
Polly added that automotive retailers will save time and increase performance without additional data entry or processes.
“We pride ourselves on saving customers time and money by bundling the car and insurance shopping process and making it frictionless,” said Wayne Pastore, president and COO of distribution at Polly.
“With VinSolutions, we’ll do the same for our dealer partners — saving time and increasing the opportunity for improved customer experience without any additional frustrating processes,” Pastore went on to say.
For more information about Polly visit www.polly.co.
Three-quarters of consumers in a July seller survey said having a trade-in they could apply towards their next purchase was “very or extremely important,” CarGurus said in its 2022 Consumer Insights Report.
And these days, those customers are fetching a pretty penny for their old rides.
In the company’s latest auto sales forecast, Thomas King, president of the data and analytics division at J.D. Power, said consumers will likely have an average equity of …
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It is a well-known philosophy for any business, but especially in retail, that what gets measured gets improved. However, due to the fast-paced nature of our business, a mistake that I see far too many used car sales operators make is not measuring enough.
Often, this dynamic leads to a situation whereby the store is managing the person, rather than the person managing the store. The most successful used car operators measure everything. This includes inventory statistics such as the number of days it takes to get a car through their shop, average front-end and back-end profits, and reconditioning expense per vehicle.
On the sales side, it includes measurements such as showroom walk-ins, test drives, number presentations, appraisals, manager introductions, closing percentages, and much more.
These dealers measure the customer’s journey from the moment they step on the parking lot and shake their hand, to the moment they drive off the lot in a vehicle — not a single step on the road to the sale is missed. It’s not just a matter of measurement for the store itself.
For best results, it is important to have a well-defined process and measure down to the individual contributor level when able. Have an ideal vision of what the customer experience should look like from the moment the customer is greeted on the lot to the moment they drive off in a new vehicle. Have all the points to the sale clearly defined, set high expectations for each stakeholder and measure execution. Keep it fun! Don’t hesitate to foster competition and make sure to keep score! In this highly competitive environment, these are some of the things that are sure to make your store stand apart from others.
Inventory: Get it presented fast
A used car’s profit window, assuming the vehicle was bought correctly, closes rapidly. The last year aside, if you leave a car unsold for too long, chances are you won't be happy with the result. Every day that a used vehicle stays in your inventory is crucial. The goal is to get the vehicle made ready for sale as quickly as possible and presented in a way that makes it stand out, both on your lot and online — and not necessarily in that order!
Ideally, the vehicle should be listed online before it is even put in the shop. If you have photos that you could use, great! If the car isn't ready for public exposure, no problem. Get that car listed online nonetheless so you can start attracting consumer eyeballs, taking inquiries, and collecting leads.
Consider offering a complimentary, basic inspection report to prospective buyers early in the process and allowing the customer to tell you what reconditioning they would be interested in and what they will pass on. This enables you to negotiate the car price and service work separately. It also allows the consumer to pay for what they value and save money on what they don't! If you take my advice, I suspect you will be pleasantly surprised by the number of people that will come in to see the vehicle in its current condition and drive it away before it has even made its way through your shop. It is a used car, after all, and your customer knows that!
Best-case scenario aside, you still need to get the vehicle reconditioned as soon as possible. Once the vehicle has gone through the shop and is fully reconditioned, you can replace the photos to make sure you are putting your best foot forward.
Key measurement metrics should include:
—How many people are viewing your inventory
—How long it takes to get a vehicle listed online
—How long it takes to get the vehicle into the shop
—Once a car makes it into the shop, how long does it take to recondition the vehicle?
—What is your average reconditioning expense?
—How long does it take to get a vehicle onto your front line?
Measure the performance of your vendors as well. To get your vehicles presented quickly, your vendors must flawlessly execute their part of the process. Analyze everything and everyone! How long does it take Joe the windshield guy to put in the windshield? How fast is the bumper spray guy? How about your technicians – are some faster than others? Do certain technicians tend to overprocess inventory? Or do they under process? Measure every little step, understanding that the goal is to get the vehicle listed online and presented as quickly and favorably as possible.
Know your inventory position
Always be aware of what your inventory is worth today. Some great tools in the market can help you see what the wholesale value of your inventory is compared to what you own the vehicles for. You can even take it a step further and see its value in your retail market. If you own inventory that costs more than what you can wholesale the vehicles for, you are underwater, which is a problem in the event you need to liquidate your inventory quickly. Likewise, if you own inventory for more than its worth in your retail market, then your store's chances at turning a profit are really at risk. It is important to stay on top of the market and your portfolio of investments (inventory) by evaluating how quickly things are selling and for what price. Not every vehicle you purchase will be a profitable investment. The key is to have the tools on hand so you KNOW and can act quickly and appropriately when an asset isn't performing.
If your inventory sells on average in thirty days, but those Corollas you have in stock sell on average in 60 days, you are either:
1. Over-supplied in that vehicle
2. Overpriced
3. There are too many similar vehicles in your market right now
4. It is just not a vehicle you sell well in your store. Either way, knowledge of market and store dynamics will help you make better inventory decisions to ensure you have the right vehicles on your lot.
The best way to make sure you maintain a favorable position in your inventory is to make sure your vehicle appraisers and buyers are dialed in. If you don’t already, I highly recommend you start measuring:
—Your number of appraisals by manager
—Appraisal closing ratio by manager
—Average front-end profit by appraiser
—Average front-end profit by used car buyer (non-trades)
—Return on investment by buyer
—Average turn rate by buyer
You may be surprised to learn that, while the cars that Bob buys generate strong profits, Tom’s purchases have a higher return on investment on average because he uses less of your cash by buying less expensive inventory that performs well. Similarly, you may learn that Joe is burning through appraisals with a low closing ratio, costing you precious trade-in opportunities, new car sales, front-end, and back-end profits, and most importantly, growth!
Sales measurement: What gets measured gets improved
Use technology to hold you and your team accountable and to bring real-time awareness. There are several platforms on the market that help you to measure all these aspects of the business.
Some of the things that should be measured, down to the individual contributor, include:
—How many customers are walking into your showroom?
—How many do a test drive?
—After the test drive, how many people get a quick tour of the dealership?
—Of those, how many get a numbers presentation?
—How many customers meet a manager?
—What percentage had a trade-in that you appraised?
—What is your sales team’s overall closing ratio?
—What is your team’s closing ratio by producer?
—How many inbound phone calls are you taking?
—What percentage of inbound calls convert to leads, and sales, by producer?
—How many outbound phone calls are made? Are salespeople actively hunting for sales?
—What percentage of outbound calls convert to leads, and sales, by producer?
—How many leads does a particular vehicle have?
Technology is your friend
Your competition is extremely clever about using technology to up their game. For example, the largest retailers, such as CarMax, use strategically placed laser beams to count the number of people that break the beam to do appraisals, enter the showroom, and more. It is important to know just how detail-oriented the competition you are up against is. There is a real need to take a data-driven approach to win this game.
Managing a used car department is an incredibly busy job. There are so many things competing for your limited attention and so much to handle at any given time. It is easy to end up in a situation whereby the store is managing you rather than you are managing the store. To be successful it is important to measure everything, delegate the right tasks to the right people, use technology to help better manage those tasks that can be automated and have the right people in the right seats. To your success!
Nick Gerlach, one of Auto Remarketing’s “40 Under 40: Industry” honorees for 2022, is the executive vice president of operations and product strategy at CarOffer. In his role, Gerlach is responsible for transaction and revenue growth and oversees account management, vehicle fulfillment, buying matrix operations, inspection coordination, and the vehicle remarketing team. Prior to joining CarOffer, he held previous roles as director of sales and director of finance for Sewell Automotive Companies, where he oversaw sales operations, inventory acquisition/management and revenue growth for the automotive retail operation.
It’s still early in the fourth quarter of 2022, but the pace of mergers and acquisitions happening among dealerships remains on a brisk pace with nine rooftops involved in actions announced this week.
Kerrigan Advisors was involved in a pair of stores changing hands in Illinois, while Haig Partners helped to facilitate a transaction connected with six dealerships in Ohio. Also, LMP Automotive Holdings announced the closing of the sale of one of its New York dealerships.
The largest transaction included Haig Partners serving as the exclusive sell-side advisor to Canton, Ohio-based Waikem Auto Family on the sale of its six dealerships to Diehl Automotive Group.
According to a news release from Haig, the transaction includes Honda, Ford, Kia, Subaru, Hyundai and Mitsubishi dealerships plus a collision center and Quick Lane facility.
Haig highlighted Waikem Auto Family is a third-generation business that has been a mainstay in the Canton, Ohio area for more than 70 years. It was established in 1957 by George Waikem Sr., with a single Ford dealership. Sons Chip, Doug and David have grown the group to six locations, and third-generation family members, Craig Waikem, George “Deuce” Waikem II and Chris Waikem are members of the management team.
“We are extremely happy to have found another family looking to continue selling and servicing cars in Stark County, Ohio the right way. We are thankful to our associates and customers over the last 65-plus years,” David Waikem said in Haig’s news release.
Diehl Automotive Group, based in Butler, Pa., is led by Corina Diehl and her son, Matt Diehl.
“We are looking forward to serving Massillon, greater Canton, and the surrounding areas for many years to come. We are honored to carry the legacy the Waikem family has built with the incredible team they have assembled,” Matt Diehl said in the news release.
Haig Partners has been involved in the purchase or sale of 38 dealerships nationwide so far this year.
“Automotive retail continues to evolve rapidly. Consumers are demanding a more efficient, technology-driven buying experience and broad inventory selection. As a result, dealers are having to adapt quickly to a shifting environment and the need for scale to compete effectively,” said Kevin Nill, a partner with Haig Partners.
“Dealership values continue to be very strong and buyer demand is as robust as ever. This has many dealers analyzing their current situation and making the decision to exit while they can get a premium for their stores,” Nill continued.
“I am grateful to the Waikem family for their trust in me and my firm to run a competitive process and uncover the best possible buyer for their family business,” he went on to say.
Charles Ringer and Robert Poklar of Weston Hurd served as legal counsel to Waikem Auto Family.
Dealer moves in Chicago
Also this week, Kerrigan Advisors represented and advised Sun Motor Cars of Chicago, owned by Daniel Sunderland and David Nocera on the sale of Mercedes-Benz & Sprinter of Orland Park and the scheduled sale of Mercedes-Benz of Bourbonnais to Illinois and Florida-based Fields Auto Group.
According to another news release, this transaction marks Kerrigan Advisors’ 161st and 162nd dealership sale since its founding in 2015 and the firm’s fifth multi-dealership transaction of the year.
As part of this transaction, Fields is scheduled to acquire and relocate Mercedes-Benz of Bourbonnais to a newly built dealership in Romeoville.
With this move, the Orland Park and Romeoville Mercedes-Benz and Sprinter franchises will be the exclusive dealers for Mercedes in the growing southwestern region of Chicago, serving a population of over 650,000.
Opened almost 30 years ago, Mercedes-Benz & Sprinter of Orland Park became one of the highest volume luxury dealerships in Orland Park, the fifth largest luxury market in the Chicago area.
Under the leadership of Nocera, a longtime member of Mercedes-Benz Dealer Council, Mercedes-Benz of Orland Park built a reputation for outstanding customer and employee service, receiving numerous awards, including Mercedes’ ‘Best of the Best’ six times and the ‘Employee Choice Best Place to Work Award’ two years in a row.
“Mercedes-Benz & Sprinter of Orland Park are pillars in the south Chicago auto market. The success of these dealerships is built upon the stellar work of our committed, longtime employees and a heartfelt commitment to top customer service,” Nocera said in the news release from Kerrigan.
“We are grateful to Kerrigan Advisors for identifying the Fields organization as the right buyer to continue our commitment to our customers, employees and community, particularly with the expansion into the Romeoville market. We are excited to see Fields capitalize on their strong brand and enter the south Chicago car market with our stores,” he continued.
Sunderland described the experience working with Kerrigan.
“When we decided it was the right time to sell, we knew Kerrigan Advisors had the most experience with higher value dealerships. They’ve sold more luxury franchises in the Midwest, particularly Chicago, than any firm in the industry,” Sunderland said. “The expertise of the Kerrigan Advisors’ team, particularly Marie Brashears, proved invaluable throughout the sale process and ensured as smooth a closing as possible. We are very grateful they were our advisors and by our side throughout this transaction.”
Mark Lyman of Lyman Law Firm provided legal counsel to the seller. Stephen Dietrich and Henry Lowe of Holland & Knight provided legal counsel to the buyer.
“We were honored to represent these two highly valuable Mercedes dealerships in the Chicagoland market on behalf of the Sunderland and Nocera families,” said Erin Kerrigan, founder and managing director of Kerrigan Advisors.
“This transaction is an excellent example of the continued strength of the buy/sell market, particularly for top luxury franchises like Mercedes. Many growing groups are seeking to add high volume Mercedes dealerships in major U.S. metros,” Kerrigan went on to say.
LMP’s move
Finally, LMP Automotive Holdings, an e-commerce and facilities-based automotive retailer in the United States, announced it has closed on the sale of its Chrysler Jeep Dodge Ram Dealership in White Plains, N.Y.
No other details about the transaction were included in the company news release.
The next chairman of the National Automobile Dealers Association does business only a long test drive away from the organization’s headquarters.
On Tuesday, the 65-member board of directors of elected Geoffrey Pohanka as its 2023 chairman.
Pohanka, who currently serves as NADA vice chairman, will succeed Mike Alford, who is dealer principal of Marine Chevrolet in Jacksonville, N.C., and Trent Buick GMC and Trent Cadillac in New Bern, N.C.
Pohanka is a third-generation dealer who serves as chairman of the Pohanka Automotive Group in Capitol Heights, Md.
“As someone who grew up in the car business and with my family’s involvement with NADA for generations, I am honored to take the reins as the next NADA chairman,” Pohanka said in a news release. “The auto industry is a rewarding and exciting business, and I’m fortunate to be a part of it. NADA has an amazing board and an amazing staff. Together, we can create a stronger environment for the industry, to help create a vibrant economy and stronger communities.”
Gary Gilchrist, who represents new-car dealers in Washington state and currently serves as chairman of NADA’s Dealership Operation Committee, was elected NADA vice chairman for 2023.
“I am very honored to be trusted with the responsibility to do things that matter for dealers,” said Gilchrist, president of Gilchrist Chevrolet Buick GMC, Inc. in Tacoma, Wash. “The auto industry has always changed with the times and we can do it again.
“We’ve got to take a hard look at ourselves and find ways to adapt to new technology and new demands. It’s been an amazing ride for the past year serving as the Dealer Operations Committee chair and the NADA treasurer the year before. And I am so looking to the future working with the incredible NADA staff,” Gilchrist continued in the news release.
William Willis Jr., president of Willis Automotive Group and representing Delaware dealers on the NADA board, was elected as secretary.
Kirt Frye, president of Sunnyside Automotive Group in Middleburg Heights, Ohio, was elected as treasurer.
The election took place at NADA’s board meeting in Dallas.
The new terms begin at NADA Show 2023 in Dallas in January.
Last week, CDK Global rolled out a new research project to gauge current and potentially future retail activities at dealerships.
The automotive retail software provider launched the Ease of Purchase Scorecard, a monthly snapshot of the consumer vehicle purchase process at dealerships.
According to the latest survey data, 82% of auto retailer customers are finding …
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Bill Seidle’s Mitsubishi opened on Sept. 9, 1982; an autumn that included a labor strike in the NFL and the debut of the TV sitcom “Cheers,” featuring Ted Danson and Shelley Long.
Following 40 years of continuous business operations since that point, Mitsubishi Motors North America (MMNA) recently recognized the franchised store based in Doral, Fla., as the brand’s longest-standing, single-ownership, dealer partner in the United States.
With many communities across Florida just beginning their recovery from Hurricane Ian, the occasion took on greater significance as MMNA president and CEO Mark Chaffin and Mitsubishi Motors Corp. executive officer for global marketing and sales John Signoriello made a special trip to Florida to celebrate the longevity and resilience of the company’s dealer partner.
“We’ve always said that our dealer partners are the backbone of our business, and as our longest-standing dealer partner, Bill Seidle’s Mitsubishi has been a stalwart supporter of the Mitsubishi brand,” Chaffin said in a news release.
“Over four decades they have established themselves as both good neighbors and a pillar of respect in their South Florida community. Now more than ever, and in this region as much as any other location in the world, symbols of perseverance and resilience need to be recognized,” he continued.
The OEM highlighted the Seidle dealership has been in the greater Miami area and built a reputation for its customer service by putting the community first.
The Seidle family has been in the car business since the 1920s, and today, dealer principal Michael Seidle and wife Michelle count four daughters and a son-in-law now involved in the operation.
After 39 years, Seidle’s Mitsubishi recently moved into a new location in Doral and began a major remodel as part of Mitsubishi’s Visual Identity facilities program.
“From the first Tredia, Cordia and Starion on our lot back in 1982 to the upcoming 2023 Outlander PHEV, we’ve seen so many changes over the years, but we’ve never turned our back on Mitsubishi,” said Michael Seidle, current dealer principal and son of the original owner. “I may not be here in the next 40 years, but my kids and grandkids will be, and I hope they’ll be carrying on the family name and business, continuing to serve this community.”
Separately, to help those who suffered complete losses of vehicles because of Hurricane Ian, MMNA said it is also offering a $500 incentive valid until Jan. 3 toward the purchase of any new 2022 or 2023 Mitsubishi vehicle,
The incentive is valid at Mitsubishi dealers located in Florida, Georgia and South Carolina.
TrueCar’s Automotive Shopper Trends Report (ASTR) — what the company said is a comprehensive look into auto shopper actions and expectations — highlighted the Top 10 most important features in-market shoppers now want.
Combining nationwide survey results with data from TrueCar’s platform, the ASTR uncovers insights from the past six months on automotive trends for both consumers and dealers.
What do shoppers looking over your inventory want? TrueCar said …
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The phone not ringing at your dealership likely is not a good sign for either your retail department or service drive.
But having the phone ringing so much that your staff can’t keep up can be a challenge, too, so a quartet of service providers formed a pair of partnerships to help.
First, WeGotYourCalls, a vBDC call center owned and operated by CallSource, announced a partnership with CallRevu, a leading provider of call management solutions for the automotive industry.
Also, Car Wars and AutoAlert have joined forces to bring dealers capabilities where users will gain access to AutoAlert’s advanced data ecosystem paired with Car Wars’ detailed call tracking software right from AutoAlert CXM.
Through the partnership involving WeGotYourCalls and CallRevu, the service providers said dealers are equipped to combat the most significant challenges preventing them from reaching their growth potential: high call volumes, understaffed departments and sacrificed customer service.
By leveraging the WeGotYourCalls and CallRevu partnership, dealers can reduce their load and drive more appointment conversions.
“We’re very excited about this partnership with CallRevu as our business principles, innovative culture, and customer-centric mentality are very aligned,” WeGotYourCalls president Pogo Parr said in a news release. “Teaming up with CallRevu on our call center puts both companies in a strong position to help dealers drive service retention, improve CSI scores, and increase profits.”
By combining the best of both solutions, the companies said dealers can count on better call connectivity, more booked appointments and higher absorption rates.
On average, the companies acknowledged that dealer service departments are only connecting with customers 76% of the time. They said dealers utilizing the vBDC have increased their connectivity rate to 98%, resulting in an additional 80 ROs per month.
In addition, dealers benefit from service maintenance reminders, live OEM recall alerts, as well as stay-in-touch reminder calls to boost customer communication, while alleviating employees so they can do what they do best — sell vehicles.
As partners, WeGotYourCalls and CallRevu are committed to empowering dealerships with best-in-class solutions that drive service retention and increase profitability.
“Ensuring our dealership partners have best-in-class solutions is our top priority. We are excited to partner with WeGotYourCalls to empower dealers with the technology to have full visibility into all calls with our vBDC call center. With the CallRevu platform, all calls are captured, all lines are analyzed, and blind spots are removed with our immediate alerts to prevent missed opportunities, reduce repeat callers and avoid missed calls that go to voicemail,” CallRevu CEO Anthony Giagnacovo said in the news release.
“We believe this partnership reinforces that our customers are receiving the most reliable customer engagement tool designed specifically to support all departments within a dealership — from service to sales and marketing. With CallRevu, we alert, advise, and analyze to help you optimize your performance and keep your customer engaged,” Giagnacovo continued.
And now more details about the other technology partnership.
Car Wars’ Click to Call feature can capture outbound calls and assign them to the salesperson and the correct customer with audio available right within AutoAlert.
Inbound calls are shared with AutoAlert’s ability to create leads based on customer phone number matching.
In AutoAlert’s Call Tracking Dashboard, inbound and outbound calls can display whether those calls matched an existing customer in CXM and to whom the lead is assigned. Leads that are not assigned can be assigned manually.
"We are very excited about our Car Wars partnership and seamless integration with our AutoAlert CXM platform,” AutoAlert chief technology officer Tom Walls said in another news release. “As the largest provider of call telephony in the auto industry, Car Wars will provide AutoAlert CXM dealers with the ability to monitor and listen to all daily calls made to their customers and provide an even better customer experience. The AutoAlert/Car Wars integration delivers higher accountability, seamless matching of inbound calls to active leads and existing customer profiles while dramatically improving efficiency from a single tool.”
Jackie Bowers, executive vice president of marketing and product planning at Car Wars added, “Car Wars’ goal is to create a great experience for users of our product. With that same goal in mind, it made perfect sense to team up with AutoAlert. As a leading provider in the CXM space, the AutoAlert partnership will create greater efficiency for dealers where the phones can be properly tracked and measured, and all the necessary customer information needed to be successful is in one place.”
To learn more about the AutoAlert and Car Wars integration, call (833) 256-4935. To learn more about Car Wars' full suite of solutions and integration abilities, visit carwars.com/home/news-resources.
In this episode of the Auto Remarketing Podcast, we are joined by Jeremy Beck, who is the vice president of dealer development at the National Independent Automobile Dealers Association.
Beck talks with Auto Remarketing senior editor Joe Overby about the association's recent NIADA Policy Conference in Washington, D.C., and looks ahead to NIADA's BHPH Super Forum next month in Austin, Texas.
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
