Autotrader will be hosting its final Interactive Dealer Summit of 2015 at the beginning of December in Atlanta – if you cannot make it, a free simulcast will be available.
The event will be streaming from Atlanta on Tuesday, Dec. 15 from 9 a.m. to 3:30 p.m. EST. Register here.
What can you expect to learn about? Autotrader will be discussing the latest information from industry thought leaders on car-shopping behaviors and how it interacts with real life and the Internet world.
Autotrader’s Interactive Dealer Summits regularly include speakers from Autotrader, Cox Automotive, Haystak Digital Marketing, Kelley Blue Book, vAuto and VinSolutions.
A link to view the simulcast of the event will be provided following registration.
According to Autotrader, the Interactive Dealer Summit speakers will be discussing the following topics:
- How today's customers shop for cars
- How to improve dealer visibility in the digital marketplace
- How to reach today's consumer at every stage of their car-shopping journey
- How to build in-store processes that produce great sales results
The analysts at Edmunds.com set out explore an interesting question. Since there are a variety of vehicles named after geographical locations – examples being the Toyota Tacoma, Hyundai Tucson, Chevrolet Colorado, etc. – are any of these vehicles actually popular in the areas they’re named after?
Picking through Polk’s registration data – the answer to that is pretty clear: No, the vehicles are not particularly popular in the areas they’re named after. So, if they were, what should they be named?
Check out the following analysis from Edmunds:
Vehicle name: Buick LaCrosse
New name: Buick Kincaid
Only 0.2 percent of new cars purchased this year in La Crosse, Wisc. were a Buick LaCrosse. In fact, 4,752 other cities and towns in the U.S. enjoyed a larger share of LaCrosses. But if you want to find the biggest concentration of Buick LaCrosse sales, follow the Mississippi River about 400 miles south toward Kincaid, Ill., where the sedan made up 8.9 percent of all new-car registrations this year. With an area under one square mile and a population of less than 1,500 people, Kincaid can nevertheless claim the title of the "LaCrosse Capital of the United States."
Vehicle name: Chevrolet Colorado
New name: Chevrolet Montana
You'd expect this versatile truck to be a top choice for Coloradoans to navigate the rugged Rocky Mountain terrain, right? Wrong. Colorado is actually the 34th most popular state for the compact pickup, which makes up just 0.5 percent of the state's new vehicle registrations so far in 2015. So where are you most likely to find the Chevy Colorado? Head two states north to Montana, where the truck has made up two percent of all new vehicle purchases this year. And let's be honest: "Chevy Montana" sounds like the kind of truck you'd want to help you herd livestock through the Great Plains.
Vehicle name: Chevrolet Malibu
New name: Chevrolet Garciasville
As it turns out, there isn't a whole lot of Southern California love for the Chevy Malibu. Only 0.1 percent of new car registrations in its namesake community carried the Malibu nameplate this year, ranking the beachside city as the 10,789th most popular locale for the vehicle. If you want to find the top town, you'll have to travel 1,600 miles away from Malibu to Garciasville, Texas, located just over the Mexican border on the Rio Grande, where more than 15 percent of all new car registrations this year are Chevy Malibus.
Vehicle name: Dodge Durango
New name: Dodge Castle Dale
On the surface, "Durango" is a perfect name for this vehicle. It suggests a certain toughness that you'd want in your SUV. Too bad for Dodge that the folks in Durango, Colo. aren't responding accordingly. Only 0.5 percent of car buyers in this picturesque mountain town opted for the Dodge SUV. But one place where this vehicle is most appreciated is less than one gas tank away in Castle Dale, Utah, where 7.7 percent of all new car purchases this year were Durangos.
Vehicle name: Hyundai Santa Fe
New name: Hyundai Clements
Santa Fe might be the capital of New Mexico, but it's far from being the capital of its eponymous SUV. Only one tenth of one percent of all new car purchases in this city of about 70,000 people were Hyundai Santa Fes year to date. One place where the Santa Fe SUV is truly appreciated, though, is Clements, Md. So far in 2015, 5.6 percent of all new car sales in this unincorporated town in the heart of the Chesapeake region were Santa Fes.
Vehicle name: Hyundai Tucson
New name: Hyundai Wilmington or Hyundai Fort Garland
The folks in Tucson may be able to rally around their Arizona Wildcats, but there's far less enthusiasm for the car that shares the city's name. Only four tenths of one percent of all new cars registered there this year were Hyundai Tucsons. But there is a spirited battle underway to claim this compact SUV: both Wilmington, N.Y. and Fort Garland, Colo. boast the largest share of Tucsons (6.7 percent of all new sales). In one corner you have Wilmington, which is perhaps most famous for hosting the alpine skiing events during the 1980 Winter Olympics. In the other corner, there's Fort Garland, where the average snowfall is 47 inches per year. Maybe these towns should settle this Tucson battle with a good old-fashioned snowball fight!
Vehicle name: Kia Sedona
New name: Kia Cedar Grove
Where's the "Sedona Spirit" in Sedona, Ariz.?! Not a single new Kia Sedona has been registered in its namesake town this year. Maybe Kia should start market research into the "Kia Cedar Grove." After all, nearly 13 percent of all new car purchases registered in this sleepy West Virginia town were Kia Sedonas. Perhaps the vehicle is more suited to navigate the Appalachian Mountains than the dusty desert terrain?
Vehicle name: Toyota Tacoma
New name: Toyota Kilauea
Almost two percent of vehicles registered this year in Tacoma, WA were Toyota Tacomas, which is relatively impressive, except when you consider that 5,492 other U.S. cities and towns have a better showing. Unfortunately, it's impossible to drive a Tacoma from Washington state to the place where the compact truck is most popular. That's because the town with the highest rate of Toyota Tacoma purchases this year is 2,600 miles of ocean away in Kilauea, Hawaii. Believe it or not, more than one out of every four new cars registered this year in this Hawaiian paradise (26.5 percent, to be exact) is a Toyota Tacoma. That sort of brand loyalty is enough to make any Toyota executive say "Aloha!"
Dealers that fail to invest in consumer-facing technologies risk being trumped by competitors.
That’s the message from J.D. Power following its 2015 U.S. Sales Satisfaction Index Study released on Thursday.
J.D. Power’s study, in its 29th year, measures customer satisfaction with the sales experience for new-vehicle shoppers — for both buyers and non-buyers — to gauge what works and what does not to keep customers satisfied.
This year, the company highlighted especially the importance of utilizing consumer-facing technologies during the car-shopping process. One example, in particular, pointed out the use of tablets.
According to J.D. Power’s study, among both premium and non-premium buyers, the use of tablets by sales personnel to perform tasks such as recording customer vehicle needs, demonstrating a vehicle’s features and displaying pricing information yielded higher customer satisfaction.
Perhaps most notably in respect to tablets, the study shows that handwritten price quotes had a negative impact on buyer satisfaction.
The study also found that F&I products, such as extended warranties, pre-paid maintenance contracts and tire/road hazard protection helped increase satisfaction to the customers that were presented with the option.
“With retail vehicle sales in the United States in 2015 forecast to reach 14.2 million units and this positive momentum expected to carry into 2016, dealers face challenges in properly servicing a high volume of new-vehicle buyers who are increasingly tech savvy,” said Chris Sutton, vice president of the automotive retail practice at J.D. Power. “Dealerships should understand that customers want and trust technology and that it can enhance efficiencies. Dealers that disregard it may risk being left behind in three to five years. Customers are experiencing interesting uses of technology in many of their other retail transactions — and now expect this in auto.”
Here are some other key findings of the study, listed by J.D. Power:
- Sales staff remain vital to sales experience: The most impactful sales satisfaction key performance indicator (KPI)—best practice—is interacting with a salesperson who understands the customer’s needs completely (+106 points). Such salespersons are good listeners, ask relevant questions and are able to deliver on customer requests. This KPI demonstrates that even with the growing prevalence of online communications and emphasis on an efficient transaction, the salesperson still plays a key role.
- 5 of top-10 KPIs relate to working out the deal: Among the most impactful KPIs are five that involve making customers feel comfortable (not pressured) and confident they are receiving the most transparent and up-front information to aid their decision-making while at the dealership. Delivering on these best practices improves satisfaction and builds loyalty and advocacy.
- Gen Y equally interested in safety and protecting vehicle value as other generations: Among generational groups, Gen Y is as likely to purchase F&I products as other generations. For example, by generation, the following proportions of customers purchase tire/road hazard protection: Gen Y (21 percent); Gen X (21 percent); Boomer (20 percent); and Pre-Boomer (20 percent).
Among brands, Porsche ranked the highest on a 1,000-point scale in customer satisfaction with a score of 752, marking a 14-point increase over last year. MINI, for the sixth-year straight, ranked highest among the mass-market brands, with a score of 762 (35 points over last year).
Want to check out the full study? Click here.
Auction Academy is expanding its Seminar Series for 2016, and will now include four individual sessions throughout the year.
The inaugural session was held in the Chicago area in late July and focused on the role of digital managers at auction.
“We felt there was a need in the industry for a shorter-term training program with an intensive focus on specific topics, and thus launched our Seminar Series with a session for digital managers last July,” said Pierre Pons, the chief executive officer of Auction Academy. “That session was a resounding success, with attendance far exceeding our initial estimates and very positive evaluations.
“As a result, we decided to expand the Seminar Series to include one session in each quarter in 2016, highlighting a key topic of specific interest to the independent auction community at each session,” he added.
All of the 2016 seminars will take place in Nashville, Tenn.
Here’s how that schedule shakes out:
Q1: Dealer Sales
Feb. 8-9
Nashville, Tenn.
Who should attend: Dealer sales managers
Q2: Digital Managers
June 20-21
Nashville, Tenn.
Who should attend: Internet managers
Q3: Fleet/Lease
Sept. 26-27
Nashville, Tenn.
Who should attend: Fleet/lease managers, commercial account managers
Q4: Compliance
Dec. 5-6
Nashville, Tenn.
Who should attend: Generals manager, auction compliance officers
Space is limited, so Auction Academy urges those interested to reserve a spot early. To make a reservation or for more information, contact Auction Academy’s Penny Wanna at pwanna@auctionacademy.net or (651) 591-4544.
As part of the site’s effort to take car shopping from “transactional to experiential,” Edmunds.com has launched a new app for Apple TV.
The new tool, Edmunds TV, aims to bring automotive content into the living room, the company reported.
The reasoning behind the move?
Edmunds cited research that shows over 60 percent of car shoppers are using video content as a research tool before making a car purchase, making Apple TV a good fit for an app focusing on information such as car reviews, road tests, consumer advice and behind-the-scenes videos.
The Edmunds TV app will be available when the fourth-generation of the Apple TV launches at the end of the month.
"As consumers spend more time researching cars and watching automotive video content, we saw an opportunity to create a car shopping experience that extends to multiple consumer touchpoints on desktop, mobile and TV screens," said Stephen Gandee, vice president of product design and advertising at Edmunds.com. "With Edmunds TV, we're infusing car shopping into more aspects of everyday life, making it an inclusive experience that can be enjoyed and shared by both the future driver and passenger."
Edmunds.com management said it expects the new app to allow the company to reach more consumers at all points in their car research and purchase journey — potentially even leading to a dealership visit.
The app will follow the Edmunds team of auto editors and test drivers for the latest car reviews, comparisons and auto show news, while the video service will also offer consumers guidance on car buying and selling, driving tips, maintenance and more.
Dealers: do you have customers you would like to notify about their vehicle’s recall status, but you’re apprehensive to contact them due to being on the National Do Not Call Registry?
Rest assured: NADA Regulatory Affairs reminds dealers that the “do-not-call” rules do not prohibit dealers from calling consumers about vehicle recalls. As long as the defect repair work involves no cost to the customer, at least.
According to NADA, itself citing the Federal Communications Commission’s ruling from 2005, “calls that encourage the purchase of other goods and service ‘will be deemed a prohibited telephone solicitation.’”
NADA noted that this specific clarification only applies to the National Do-Not-Call rules and is not applicable to the separate restrictions of the Telephone Consumer Protection Act (TCPA) for text messages, pre-recorded calls, calls made to cellphones, or calls made using auto-dialers.
The association urges dealers to consult their legal counsel before making a decision regarding a recall-notification telephone strategy for its affected customers.
Strong dealer-consumer relationships increase recall repair rates
Anita Lienert, a correspondent for Edmunds.com, also shared in a post on the Edmunds site the results of a recent survey conducted by Public Opinion Strategies, on behalf of Auto Alliance and the Association of Global Automakers, suggesting that consumers who have established a relationship with a dealer participate in recalls more often than those who have not established that type of relationship.
Even though time is the only cost to the consumer for most recall repairs, the research sought to find out why roughly 25 percent of owners of recalled vehicles never complete the free repair of their vehicles.
According to the Edmunds post, one key finding from the survey found that many consumers are doing their own “risk assessments” when they receive a recall notice, deciding whether or not it’s worth their time to take their vehicle in for the remedies.
A statement from the Auto Alliance last week said that, “Many survey respondents showed a reduced likelihood to repair a recalled vehicle if they perceived the recall to be ‘low’ or ‘moderate’ risk, saying it seemed to be ‘no big deal.’ Used vehicle owners are less likely to be motivated to respond to recall communications, even when they are aware of a recall on their vehicle.”
According to the survey, consumers are more likely to heed recall repair notifications if the severity of the recall is high, if they are especially reminded that it is free, or if a reminder of open recalls is provided in their insurance renewal notices.
Dealers: Have you found any particularly potent way to convince your customers to bring their vehicles in for recall repairs? Let us know in the comments below or gives us a shout via social media via the links on the left of this page.
The JM&A Group has renewed its agreement with Kia Motors America.
Partnered since 2007, JM&A will continue to offer the Kia Distinction branded F&I products and extended warranty services.
According to JM&A, 716 Kia dealers offer at least one of JM&A’s products, with more than 400 utilizing at least five of its offerings.
“We are thrilled to continue our relationship with Kia,” said Forrest Heathcott, JM&A’s president. “We have a great momentum and expect another excellent performance year. JM&A remains committed to providing automotive dealers with strategic support and we look forward to helping Kia maintain superior performance and growth.”
In addition to Kia’s suite of branded products, JM&A also offers Kia dealers F&I training in several areas, including associate development, consumer-friendly sales methods, compliance, marketing and e-contracting.
According to JM&A, Kia Distinction product sales have increased by 25 percent over the last eight years while the Kia certified pre-owned program continues to experience retail growth at 43 percent.
“Our customers’ satisfaction and peace of mind is our highest priority, and providing our dealers with the best possible F&I products and training in the industry helps us ensure that the needs of Kia customers will be met,” said David Carp, Kia’s director of fleet, remarketing and CPO. “We look forward to continuing this relationship with JM&A and utilizing the tools they help us provide our dealers.”
National Preparedness Month — an initiative to encourage citizens to make their emergency plans in advance of disasters such as hurricanes, forest fires, power outages and more — is coming to a close, and CDK Global is taking note.
The digital marketing and information technology company for the auto space said it wanted to remind dealers about the importance of disaster preparedness plans, and offered five tips to ensure their businesses are ready for anything that comes their way.
"Disaster can strike with or without warning," said Jim Foote, vice president and chief business security officer at CDK Global. "It's important for business owners to have a plan in advance to protect their people and systems. One of the hardest things to replace is your data. Buildings can be rebuilt, equipment and inventory replaced, but not your lost data."
Take Hurricane Sandy, for example, which caused more than $50 billion in damage and losses. CDK Global pointed out that an estimated $30 billion of that was attributed to business in the form of closed offices and factories, and shutdowns in transportation and electricity.
CDK Global offered the five following tips for dealers to make sure they are prepared in the event of a natural disaster and can recover quickly.
- Have a written plan, and make sure everyone has a copy. Writing a plan and educating your entire staff will make sure everyone understands what their role is and the steps they need to take in an emergency.
- Designate teams for key business operations. Before, during and after the disaster period, your most crucial operational need will be communications. Without it, you can't do much else. Designate a team to be responsible for key communications, as well as your day-to-day business operations (payroll, parts, service, etc.) and data recovery.
- Use an offsite location to back up your on premise data and paper records. In the case of a power outage or system failure, you will want to have your data backed up in a secure environment or on physical media sent to an offsite storage where your paper records are also stored. Ensure that your offsite storage vendor is taking items to areas that won't be impacted by the same threats as you — for example, if you're in a hurricane zone, use a site that is farther inland.
- Evaluate your disaster insurance coverage. Review policies with your insurance agent to make sure the dealership is covered for the appropriate types of disasters, and the proper values of your building contents, inventory, etc.
- Test your preparedness. What would you do if key IT people, like your systems administrator, aren't available in an emergency? Write it down. Have materials and processes in place to do business the old fashioned way, on paper, until power is restored.
"We've heard from automotive dealers who have been through disasters large and small and they say the worst thing is to underestimate the damage that can occur," said Foote. "Following these simple steps can make all of the difference. People in your community will rely on you, especially if there's been damage to vehicles, to help recover and a comprehensive plan will help your business get back up and running."
The TPC Management Co. put three more sessions in the books this summer for its Auction Academy aimed at providing continued education for auction industry professionals.
The academy will host its next and final event for 2015 as a joint-class session in Detroit this fall.
The first of the three summer sessions was hosted in mid-July in Spokane, Wash., the Auction Academy’s fourth annual trip to the location. The academy’s Class 4 Group participated in DAA Northwest’s Rock & Roll Sale along with interacting with key managers at the auction.
Len Roll, the auction’s manager of reconditioning shops, led the first day, focusing on auction operations along with a tour of the auction facility. Lecturers for the academy’s students included Greg Mahugh, the auction’s co-owner, and Mitzi VanVoorhis, the auction’s marketing manager, as well as an interactive exercise led by Gonzaga University professor of leadership studies Dr. Shann Ferch.
The second day included a discussion with Dave Woods, director of remarketing for Harley Davidson, followed by a Harley auction at DAA Northwest. The day ended with the Rock & Roll concert headlined by Heart following an industry overview by Charlie Vogelheim and an outline of auction technology by Scott Finkle, president of Auction Edge.
“We cannot thank Bob McConkey, Greg Mahugh and the entire staff of DAA Northwest enough for once again allowing the Academy to participate in their largest sale of the year,” said Penny Wanna, the academy’s vice president of administration. “It is amazing to see how the team is able to handle record breaking consignment volumes and so graciously accommodate us being right in the middle of all the auction action for the entire week.”
The academy hosted its first “Seminar Series,” later in July, featuring a Digital Manager’s Session in Chicago. The single-day session featured several presentations on various technology platforms, followed by open discussion on the challenges and opportunities of operating their businesses.
“That afternoon was the single most dynamic discussion session I have ever witnessed in our industry,” said Pierre Pons, the academy’s chief executive officer. “I am convinced that due to the interactions of that afternoon, the state of online sales for independent auctions has been enhanced dramatically.”
The academy’s Class Group 3 went to Brasher’s Sale Lake in late August for an auction tour and several discussion sessions. One academy student, Wanda Jowers, a 23-year employee of Carolina Auto Auction, commented on her experience.
“In all my years at the auction I thought I had seen just about everything,” Jowers said. “But over the course of my Academy experience, which allows me to visit so many other facilities around the country, I have picked up something new each and every time. The Salt Lake City session was my favorite to date — but quite honestly I have loved them all.”
For more information on the Auction Academy, visit its site here.
It’s that time of year again: the next generation is headed back to school and their variety of before- and after-school activities.
Parents, family and friends looking at upgrading their vehicles will have this in mind this time of year, so Steve Halloran, the chief editor at CarGurus, has announced his company’s recommendations for them to help ease their guesswork. Dealers can gain a few tips, as well.
“For families with school-age children, finding a vehicle that balances safety and reliability with space, comfort and convenience is important,” Halloran said. “To eliminate the guesswork for shoppers, we’ve identified the vehicles that meet these specific criteria and also offer bonus features that will make time spent shuttling the kids a little more pleasant.”
According to a recent online poll by CarGurus, 38 percent of car shoppers with school-aged kids said they spend between 30 minutes and one hour each day with kids in their car. A third said that time was stretched over an hour.
When a customer comes onto the lot, it may be worthwhile to ask if kid-hauling is part of their regular activities. Here’s a list of vehicles that may be appealing to them, according to CarGurus.
Midsize SUVS
- Mitsubishi Outlander (2016 MSRP starts at $22,995)
- Toyota Highlander (2015 MSRP starts at $29,765)
- Ford Explorer (2016 MSRP starts at $30,700)
- Chevrolet Traverse (2016 MSRP starts at $31,205)
- Infiniti QX60 (2015 MSRP starts at $42,400)
- Acura MDX (2016 MSRP starts at $42,865)
Minivans
- Kia Sedona (2016 MSRP starts at $26,400)
- Toyota Sienna (2015 MSRP starts at $28,700)
- Honda Odyssey (2015 MSRP starts at $28,975)
Large SUV
- Chevrolet Suburban (2016 MSRP starts at $49,700)
According to CarGurus, this list was compiled based on currently available models with a focus on safety records, cargo storage space, seating capacity and availability of technology features.
For more information about CarGurus, visit its site here.
