The National Independent Automobile Dealers Association recently selected its newest Bronze-level National Corporate Partner, going with a firm that aims to help dealerships improve communications with their customers.
The newest partner is Podium, a leading interaction management platform in the auto service industry that works with more than 40,000 businesses worldwide, including 5,000 dealerships in the United States and Canada.
In partnering with NIADA, Podium’s platform aims to help the association’s 16,000 independent dealer members modernize their communication channels to gather reviews, message customers, gather feedback and more. The platform can collect and manage business reviews and messages in one central, easy-to-use inbox.
“Being able to manage customer feedback is vital to protecting a dealer’s reputation and growing a loyal customer base,” NIADA director of business development James Gibson said in a news release.
“By offering text-based interactions to customers, not only can dealers turn online searchers into car sales, they’ll be able to ensure their online reputation reflects the positive modern buying experience customers have come to expect,” Gibson continued.
Podium explained this partnership represents the company’s commitment to supporting independent dealers across the United States by offering association members access to interaction management tools, including reviews, messaging and more, for preferred NIADA pricing.
Dealerships seamlessly can connect with customers who have recently visited the dealership’s site or made an in-person purchase. With Podium’s Review and Feedback tools, dealers can automatically invite customers to leave a review via text or the messaging app of their choice.
Podium pointed out that research shows fast and easy to complete review requests are ideal and result in more accurate feedback. This integration can save dealerships time as well as increase the number and quality of their online reviews on Google, Facebook, DealerRater and other key sites.
“NIADA has been the leading force in providing solutions for independent dealerships in the US auto industry,” Podium senior vice president of sales Cameron Hale said. “That was a key factor in Podium choosing NIADA as a close corporate partner.
“Joining NIADA’s drive to provide solutions for its dealers with Podium’s powerful online review and two-way messaging products will supercharge NIADA members’ competitive advantage in bringing in new customers and keeping them for their lifetime,” Hale continued.
Last fall, Cherokee Media Group hosted a free education webinar with Podium titled, “Bridge the gap — How to sell cars like Amazon sells everything else.” A recording of that webinar is available here.
To learn more about Podium, dealers can visit www.podium.com.
The National Independent Automobile Dealers Association is hosting a free webinar on Thursday focused on a business function the association is concerned that operators might overlook or not understand completely — maintaining compliance with federal mandates from the Occupational Safety and Health Administration (OSHA).
In this webinar, hosted by NIADA and presented by ComplyNet, operators will participate in “crash course” on how to complete a variety of tasks, including:
— Records that must be kept
— How to fill out OSHA forms properly
— When completed forms must be posted and provided to OSHA
— When specific incidents must be reported to OSHA
— Fines and penalties that can be levied for failing to fulfill these obligations
NIADA mentioned the presenters also will discuss the differences between repeat violations, willful violations, serious violations, and other-than-serious violations as well as review recent cases in which OSHA has initiated criminal proceedings against offenders.
The experts will also discuss the importance of analyzing injuries and near misses, and how this exercise can lead to fewer injuries and illnesses, greater productivity and increased savings.
“You can't afford to miss this opportunity to learn how this applies to you,” NIADA said.
The free webinar begins at 1 p.m. ET on Thursday. Registration for the session can be completed here.
Dealer Profit Pros president Kenny Atcheson closed 2019 by reaching out to an array of leading executives, experts and observers of the buy-here, pay-here industry and other parts of the automotive space to gather their expectations for 2020.
From compliance to wholesale and retail, Atcheson recorded audio segments with each participant and posted them on his website. Along with Atcheson, the group offering their 2020 projections included:
— Scott Carlson, founder of AutoZoom
— Eric Johnson, partner at Hudson Cook
— Chris Macheca, president and chief operating officer of PassTime
— Bill Neylan, president and chief executive officer of TaxMax
— Nick Zulovich, senior editor of SubPrime Auto Finance News and BHPH Report
All of the segments can be found here.
When the National Independent Automobile Dealers Association hosted its Subprime BHPH Conference in Chicago earlier this fall, Nick Zulovich shared a conversation with veteran operator Gene Daughtry, who now is part of the team at Buckeye Dealership Consulting.
Daughtry described what still makes him excited about the buy-here, pay-here business after being involved with this special slice of the automotive industry for more than 20 years.
To listen to this episode, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Earlier this fall, Nick reconnected with NIADA senior vice president of legal and government affairs Shaun Petersen when the National Independent Automobile Dealers Association hosted its Subprime BHPH Conference in Chicago.
Petersen not only recapped the association’s latest visit to Capitol Hill, but he also touched on a variety of other initiatives NIADA has in motion to help dealer members.
To listen to this episode, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
Another large dealer body is ramping up its efforts to address the industry-wide need for qualified service technicians.
As part of National Apprenticeship Week, Byrider announced its service technician apprenticeship program received registration by the U.S. Department of Labor. The company underwent a rigorous process that took over five months to complete, in partnership with Ivy Tech Community College in central Indiana, one of the largest single-accredited statewide community college systems in the country.
The apprenticeship program will begin in early 2020 at select Byrider locations in the greater Indianapolis area. Over time, the company highlighted the program will expand to include apprenticeship programs in other states and partnerships with a broad range of technical schools.
As part of the program, Byrider will offer tuition assistance for students and provide an automotive toolkit for apprentices upon completion of the program, which can cost upwards of $2,000.
“We’re proud to announce the first-ever Byrider apprenticeship program registered by the Department of Labor. It seems fitting to announce our registration during this national week that shines a light on the importance of training and educating students about apprentice opportunities that allow them to gain valuable skills and prepare for careers in a variety of industries,” Byrider chief executive officer Craig Peters said.
“As we look to the future, creating an avenue for people to learn hands-on job skills in automotive repair will position students to grow and prosper in an industry where highly skilled technicians are desperately needed,” Peters continued.
Byrider explained that achieving Department of Labor Registration involved creating program standards by identifying key competencies, as well as designing a framework of both on-the-job and related training to ensure each apprentice is successful.
The company noted the Byrider apprenticeship program is unique in that it will provide students the opportunity to work on a wide range of vehicle models, unlike most other automotive apprenticeships that focus primarily on just one vehicle brand. This allows students in the Byrider program to obtain broad experience on cars that range in age, make and model, which can enhance the student’s marketability and provide more job opportunities.
Official added the Department of Labor registers on average 1,600 apprenticeship programs annually across the nation. The goal of the program is to help ensure a comprehensive apprentice program experience for students and provide companies with high quality, skilled employees in a variety of industries.
The economy has held up very well recently given the unemployment rate reaching 3.5% recently, but it’s getting difficult to determine which direction the economy is headed in the near future.
According to a recent Duke University/CFO Global Business Outlook survey, 53% of chief financial officers believe the U.S. may enter a recession prior to the 2020 presidential election. In addition, two-thirds believe a downturn will happen by the end of next year.
Similarly, year-over-year real GDP growth weakened from its Q2 2018 level of 4.1%, which marked some of the strongest GDP growth in recent memory thanks to a healthy tax cut. Since then, GDP has dropped to a two-year low, and Fed officials are thinking it may fall to a three-year low.
This concern has also translated to the automotive market, where independent dealers particularly are growing increasingly skittish about prospects for sales growth.
Independent auto dealers are mirroring the mood of CFOs, with only 30% expecting economic conditions to improve during 3Q 2019, down from 38% in the first half of the year, and 42% in 4Q 2018.
Similarly, only 18% said they plan to expand their business in the coming quarter, down from 33% in the first half of 2019.
When it comes to retail sales, only 37% of independent auto dealers indicated they anticipated their dealership’s retail sales to grow during the third quarter, down from 51% in the first half. Also, many dealers are expecting store traffic to decrease. In fact, only 38% expect traffic to increase during the third quarter compared to 46% who expected traffic increases in the first half.
The economy has pushed many independent dealers to embrace more targeted marketing strategies.
Many independent dealers indicated they have decreased Q3 2019 marketing spending in comparison to the previous year. However, this reduction in marketing expenditure isn’t expected to be as exaggerated this year in their digital marketing efforts.
This comes as no surprise, as independent dealers — similar to franchise dealers — recognize the importance of connecting with their customers in online channels. It is yet another indicator of the emphasis digital retailing continues to have on the industry.
In a digital retailing experience, the online car buying experience includes the ability for consumers to research vehicles, view real-time inventory, arrange financing, and ultimately complete the purchase. This results in a more seamless transaction to help mitigate friction once at the dealership.
As part of this process, connecting with the right technology companies to help showcase inventory and offers online are critical to enhancing the shopper’s online experience. Also, it is important for independent dealers to engage their customers early in the shopping phase with respect to financing options.
Scott Lilja is senior vice president of member services at the National Independent Automobile Dealers Association. He can be reached at scott@niada.com. Jennifer Reid is the vice president, automotive marketing and strategy leader for Equifax. She can be reached at jennifer.reid@equifax.com.
The National Independent Automobile Dealers Association highlighted an area of its continuity this week.
NIADA announced its continued longtime Bronze-level National Corporate Partnership with Williams & Stazzone as the association’s preferred property/casualty, garage liability and workman’s comp insurance provider to its 16,000 members.
The association noted Williams & Stazzone has been a leader in the auto dealership property/casualty insurance market for 30 years, dedicating substantial resources within its client support, underwriting, product development and sales/marketing functions to ensure its dealer clients receive best-in-class coverages, client support, competitive pricing and compliance education.
“NIADA is the most important resource for quality independent automobile dealers from coast to coast,” Williams & Stazzone executive vice president Vincent Stazzone said in a news release.
“We value this relationship and look forward to bringing our stable and competitive insurance solutions to more members of the association,” Stazzone continued.
Whether they’re selling cars, motorcycles, trucks or recreational vehicles, NIADA acknowledged dealers face a multitude of risks. With its specialization in insuring dealerships and a commitment to service, the association insisted Williams & Stazzone Insurance Agency understands the unique exposures those businesses face.
“Williams & Stazzone has been a longtime leader within our membership property/casualty market,” NIADA senior vice president of member services Scott Lilja said, “and is dedicated to exceeding our members’ needs, from its broad array of top-notch coverages to its first-class support, compliance education and immense industry support — including attending and sponsoring many NIADA and state IADA events.
“We are thrilled to have Williams & Stazzone as an NIADA National Corporate Partner. It exemplifies at the highest levels the attributes we expect from a partner,” Lilja went on to say.
For more information, visit www.wsins.com/commercial-products/garage-liability or call (800) 868-1235.
The former president of the National Independent Automobile Dealers Association and his store’s finance manager have been indicted by a federal grand jury in Erie, Pa., on charges of conspiracy, bank fraud and wire fraud, according to a news release from the Justice Department distributed this week.
U.S. Attorney Scott Brady said the 17-count indictment named former NIADA president Andy Gabler of Harborcreek, Pa., and Chad Bednarski, of Fairview, Pa., as defendants. Gabler resigned as NIADA president on Feb. 1.
According to the indictment presented to the court, Gabler was the owner of Lakeside Auto Sales and Lakeside Chevrolet, and Bednarski was the finance manager of both stores. The indictment states that from in and around January 2015, to in and around January of this year, Gabler and Bednarski falsely indicated that customers made a down payment and falsified and inflated the income of customers when submitting auto-finance applications to financial institutions on behalf of customers.
In addition, the Justice Department said Gabler caused extended warranties to be sold to customers buying a vehicle at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payment to the extended warranty company.
Further, officials said the defendants falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates.
Finally, officials indicated the defendants deliberately did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
The Justice Department noted the law provides for a maximum total sentence of 510 years in prison and a fine of $17 million for Gabler and 330 years in prison and a fine of $11 million for Bednarski.
Under the federal sentencing guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Christian Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
“An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty,” officials said.
As the association announced Oliver North as keynote speaker for its annual event on Capitol Hill coming next month, the National Independent Automobile Dealers Association highlighted the final results from its national convention this past June.
And as they say, records are made to be broken.
For the fourth consecutive year, the NIADA/NABD Convention and Expo was attended by more people than any previous event in its long history.
According to a news release, the 73rd annual convention held June 17-20 at the Venetian Resort in Las Vegas drew a record 2,154 attendees. That broke the mark set a year earlier when NIADA and the National Alliance of Buy-Here, Pay-Here Dealers first joined forces for a combined event.
NIADA said the 2019 convention also was the seventh in a row with greater attendance than the previous year.
The results of NIADA’s post-convention survey indicate there might be another attendance record coming in 2020.
More than 98% of the dealers and 90% of all attendees surveyed said they would recommend the NIADA/NABD Convention and Expo to a friend, and more than 90% of dealers and attendees said they plan to engage with NIADA in the future.
Add to that the increase in the number of first-time attendees over last year and NIADA believes the chances of extending the record streak to five seem pretty good.
“My gosh, it’s amazing,” said first-time attendee Florence Salazar-Bruner of Firehouse Auto Sales in Haltom City, Texas. “The opportunities here … I’m a real student of the field I’m in, and just going around to the different booths and getting to know people and being able to become more educated about my business really helped me.”
Another first-timer, Amy Noone of DriveRight in York, Pa., agreed.
“Overall, a fabulous experience,” Noone said. “I learned so much about the industry and loved having the opportunity to talk with vendors in person and schedule follow-up appointments on my return to the dealership.”
Other records set included most education sessions and the largest expo hall in NIADA convention history.
The 125,000-square-foot Expo space was filled with more than 200 vendors and industry partners, allowing dealers to connect with providers serving every part of their business.
“You can find anything you want here,” said Gus Camacho of Camacho Auto Sales in Palmdale, Calif. “So if you’re looking for some marketing ideas or a credit card processor, or maybe if you’re looking for some capital for your business, this is the place.
“You’ve got them all right here in one spot — you can check them out and get all the information you need,” Camacho added.
As vAuto’s Joey Imparato pointed out, that possibility is to be expected from “the Super Bowl for all independents” and “a can’t-miss show.”
“We were busy from start to finish every day,” said Bill Neylan of Tax Refund Services Tax Max. “We got our money’s worth from meeting dealers and from partnering with other vendors.
“It’s my favorite show of the year. Everyone who is anyone in the automotive space is there. If you are a dealer who didn’t attend, you need to be there,” Neylan went on to say.
The 65 dealer training sessions included five educational tracks — retail, buy-here, pay-here, certified pre-owned, digital marketing and legal and compliance — with topics spanning all aspects of dealership operations, management, leadership, human resources, service, cybersecurity, finance and accounting, tax law, technology and more.
In a high-energy keynote address, legendary business executive Sarah Robb O’Hagan provided insights into business and marketing and urged dealers to take themselves and their dealerships to the next level by going “extreme.”
And Dave Anderson of LearnToLead talked to a packed ballroom about mastering the art of accountability.
Other popular speakers included ADESA’s Doug Hadden, vAuto’s Imparato, David Lincicum of the Federal Trade Commission, Neil Bradley of the U.S. Chamber of Commerce, Maggie Pugesek of C&M Coaching, TransUnion’s Mike Mondelli, Carvana’s Dan Gill, TrueCar’s Kerri Wise and Don Jasensky of Automotive Personnel.
NABD’s Ken Shilson and Ingram Walters and NIADA’s Steve Jordan, Shaun Petersen, Chuck Bonanno, David Brotherton, Mark Dubois and Justin Osburn also prominently were featured.
“The response was fantastic … very interactive,” Hadden said of his session about getting vehicle ready to sell faster. “That’s what I love about NIADA and this event. Everybody helps everybody.
“I might have been leading the session, but they all contributed as well — ‘I do this,’ ‘I do that,’ ‘How do you do this?’ — and everybody took at least one thing away that they’re going to take back to their store and be able to sell more cars and make more money,” Hadden went on to say.
The special sessions included the Finance Fair, which provided dealers an opportunity to meet one-on-one with finance companies to discuss their specific issues and situations; Ask the Counselors, a panel of attorneys who answered dealers’ legal questions; and the dealer-to-dealer series, which featured successful operators Ingram Walters, Luke Godwin, Marshall Zoerner and Sherman Barnett discussing store issues and lessons learned during their careers.
The convention’s awards ceremonies and special events included a new first-timers reception during which first-time attendees received tips on how to get the most of their convention experience, as well as the welcome reception, a concert by country music star Trace Adkins, the dealer luncheon, the National Leadership Awards Banquet and the National Quality Dealer Award ceremony, followed by the closing after party.
“If you’re in the industry, you have to be here,” Camacho said. “There’s no other convention that’s as big and has as much information as this one.
“I’ve been coming to these conventions for the past 15 years, and every time I go away with something that’s going to either make me money or save me money. There’s no reason for anyone not to come. It’s the best thing out there,” he went on to say.
NIADA is looking to continue its event momentum in September during its National Policy Conference in Washington, D.C.
Beginning on Sept. 23, the three-day event includes not only a special appearance by North, but also updates from federal regulators, a special awards dinner on Capitol Hill as well as NIADA members meeting with more than 120 members of Congress and their staffs.
“NIADA members have for years laid the groundwork at past National Policy Conferences for major legislative victories including the striking the CFPB’s ill-advised arbitration rule, maintaining tax deductibility of interest expenses associated with floorplans, and the defeat of overbroad recall legislation,” Petersen said.
“These major victories would not have occurred without dealers coming to Washington and making your voice heard,” he went on to say.
The complete agenda and registration details are available at niada.com.