Attendees at the upcoming National Independent Automobile Dealers Association annual gathering who have a taste for luxury and an affinity to help others can satisfy both with one winning bid.
For the 10th consecutive year, officials highlighted the NIADA Convention and Expo will include the auction of a front-line ready used vehicle to benefit the NIADA Foundation.
And this year, NIADA said the vehicle to be auctioned is a “stunner.”
According to a news release, Manheim has donated a “showstopping” white 2018 BMW 330i SPT, equipped with a sport package, with a black interior and just 22,000 miles on the odometer.
The highline model will be on display in the Expo Hall during NIADA’s 76th annual Convention, coming up June 20-23 at the MGM Grand in Las Vegas. Before the convention, the vehicle will be on display at the Manheim Nevada auction location.
Manheim will conduct the auction at 2 p.m. (PT) on June 23 at the NIADA Dealer Lounge in the center of the Expo Hall.
The winning bidder will receive free vehicle transport to any location in the continental U.S., courtesy of ACERTUS.
All proceeds from the auction will benefit the NIADA Foundation, which coordinates the association’s commitment to charitable giving and education.
In addition to making numerous donations to charities nationwide and providing matching funds for local charitable projects, NIADA highlighted the foundation has raised hundreds of thousands of dollars to assist members of the automotive community affected by hurricanes and other disasters, and has established endowments that fund university scholarships for students pursuing careers in the automotive industry.
“At Manheim, giving back is a vital part of our culture,” Manheim Nevada general manager Danny Brawn said in the news release from NIADA. “We are thrilled to donate a vehicle again this year and auction it off to support the important work the NIADA Foundation does in the used automobile community.”
The previous nine benefit auctions have raised a total of $218,500 to support the Foundation’s initiatives.
During last year’s NIADA Convention and Expo, Colorado dealer Mike Widhalm placed the winning bid of $22,500 for a silver 2010 Ford Mustang GT.
“We are very appreciative of Manheim’s support for the dealer community and the NIADA Foundation,” NIADA chief executive officer Robert Voltmann said in the news release. “Manheim is a leading supporter of the foundation, which helps dealers and their employees through support, donations and scholarships.”
ComplyNet president and general counsel Adam Crowell returned for another appearance on the Auto Remarketing Podcast; this time with the topic being the Safeguards Rule enhanced by the Federal Trade Commission.
Dealerships have until December to get its compliance in order to meet the long list of rule requirements ordered by the FTC. Crowell highlights some steps to get on the right path.
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.
With an executive team in place as well as a relationship with the National Independent Automobile Dealers Association cultivated, National Lenders General Agency announced a new product offering this week.
The firm specializing in reinsurance products for dealerships and finance companies in the buy-here, pay-here, lease-here, pay-here and point of sale markets launched contractual protection insurance (CPI) program at what National Lenders believes is an industry-leading rate of 8% ceding fee plus state insurance premium tax in licensed states
President Ken Terkel and executive vice president and chief operating officer Eric Hurst said through a news release that the program is effective immediately, noting that competitors currently offer CPI ceding fees between 12% and 20%.
National Lenders said it invested several million dollars in seed capital into researching and “perfecting” the traditional CPI programs to create an infrastructure and vertical of companies that provide more profit retention for clients. The investment includes retaining a top legal firm to design the consumer compliance and forms for its carrier, Empire Indemnity Insurance Company RRG.
National Lenders’ CPI program can protect the financial interest of the dealership and finance company by insuring the contract’s diminished monetary value in case of an accident involving the collateral (car). The collateral can be repaired or paid off in the event of a total loss.
National Lenders mentioned additional benefits are in place, such as providing dealers and finance companies interactive technology with a PII-compliant 24/7 online portal for monthly reporting to file and track claims, generate reports and take greater control of the customer experience — potentially increasing the odds of repeat business.
Terkel noted the price point of the firm’s new product will impact the reinsurance and profit-sharing marketplace.
“We’re confident our CPI product will make lenders’ lives easier and more profitable,” Terkel said in the news release. “We’re filling a need in the market for more transparency, more protection of lender interests, and greater wealth-building potential.”
National Lenders will be debuting the 8% pricing model at the NIADA Convention in Las Vegas on June 20-23, and the TIADA Convention in Austin, Texas, on July 24-26.
Advanced Business Computers of America (ABCoA) recently rolled out its latest software solution for dealerships and subprime auto finance companies.
ABCoA added a proprietary funding portal to its ecosystem within cyclCRM, a customer relationship management solution built specifically for the buy-here, pay-here industry.
The company said this portal called Capsa also is completely integrated (bi-directional) with both the dealer management software and loan management software.
ABCoA explained the Capsa funding portal can provide preapprovals and instant funding for point of sale, seasoned, or portfolio purchases, floorplans and consumer loans.
For sellers (dealers), cyclCRM takes the consumer's credit app, or complete deal information from the integrated DMS, and broadcasts it to buyers (lenders) using the Capsa funding portal. There, the seller can view multiple buyers’ terms in one place. Conversely, the buyer can view deals from sellers that meet its lending criteria, and can accept the deal, modify terms, or reject the deal entirely.
The company said cyclCRM’s loan origination tools can automate preapproval, acceptance, or rejection based on dynamic scoring models and integrations, enabling lenders to fund deals in real-time. When a deal is accepted, cyclCRM securely can transfer all information, including electronic documents and stips stored in the digital document vault from the seller’s DMS to the buyer’s LMS.
ABCoA said in a news release that it “listened to customers’ needs and extended its benefits to dealers and lenders,” as cyclCRM, along with ABCoA’s flagship DMS Deal Pack, are all designed to create a completely automated experience for dealers, finance companies and consumers — from lead origination (automated credit app, scoring, decision making, messaging, campaigns and workflows) to desking, e-signing, instant funding and servicing.
“By minimizing human touch and third-party exports, Deal Pack and cyclCRM not only increase security and reduce legal risks related to consumer data, but also ensure business is conducted in an expedient and compliant manner,” ABCoA said before adding, “cyclCRM works as one with the DMS and LMS to enhance operations and eliminate friction in the customer experience, providing users incredible performance improvements from smart automation across the board.”
ABCoA software architect Tomasz Jablonski reiterated that the collaboration between Deal Pack and cyclCRM can provide the subprime industry a complete end-to-end software ecosystem that can improve profits and processing time with fewer staff.
“By building an integrated ecosystem with next-generation technology, we have created superior customer experiences and enabled far greater operational efficiencies and profitability for used car dealers and lenders,” Jablonski said.
It just turned March, but the National Independent Automobile Dealers Association already has June on its mind.
Registration is now open for the 2022 NIADA Convention and Expo, which is back in its traditional June dates.
And for the first time since 2019, the 76th edition of the convention returns to Las Vegas at the MGM Grand’s recently expanded and upgraded convention space for the event on tap for June 20-23.
NIADA highlighted that the convention experience starts with the most extensive education agenda available for independent dealers, with more than 60 workshops, panel discussions and education sessions covering everything from sales, marketing and service to digital retailing, compliance, staffing and much more.
The association also is planning quick-fire learning and hands-on demos in the service bay.
“Dealers of all sizes and business models will come away with actionable ideas, innovative strategies and proven techniques provided by the industry’s top minds and most successful independent dealers,” NIADA said in a news release.
NIADA also is planning the Finance Fair, which connects dealers looking for help finding financing for their customers or their business with the nation’s top lenders and capital providers to secure retail financing, floorplans, contract purchases or lines of credit.
The convention also includes special events, receptions, unmatched networking and awards recognizing the best in the business, capped by the presentation of the National Quality Dealer award — NIADA’s highest dealer honor.
“I can’t tell you how many tips and ideas I’ve been able to take away from the convention that I’m able to take back to the dealership and implement,” said Dan Johnson, owner and general manager of LiteHouse Auto in Lakewood, N.Y.
“Things that have saved money, things that have made money, policy changes that have made us operate more efficiently and smoothly,” Johnson added in the news release
NIADA said attendees can register by April 7 to get the early bird price of $595 for NIADA members and $795 for non-members. That’s $100 off the standard price and $200 off the cost to register on-site.
For more information or to register, visit niada.com/convention.
Steve Burke’s role as chief executive officer of Agora Data gives him a tremendous vantage point to access the current financial status of independent and buy-here, pay-here dealerships as well as activities within the automotive securitization market.
And during the opening week of the year, Burke returned for this episode of the Auto Remarketing Podcast to share what he’s observing.
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.
Compliance expert Randy Henrick, who also is a part of the team at Ignite Consulting Partners, shared a costly example of how not following federal statutes when making personnel decisions can inflict some significant financial pain on independent and buy-here, pay-here dealers.
Henrick recently recapped that an Ohio dealer has agreed to pay $390,000 to three employees in the settlement of an age discrimination lawsuit brought by the federal Equal Employment Opportunity Commission (EEOC). Henrick indicated that the EEOC brought the lawsuit after its attempts to reach a pre-litigation settlement through its administrative conciliation process were unsuccessful.
In addition to paying the monetary sums to three former employees, Henrick mentioned that the dealer must report all hiring and termination decisions to the EEOC for the term of the two-year consent decree as well as establish compliance and training programs aimed at preventing age discrimination and protecting from retaliation employees who file grievances.
Henrick added that the dealer must also post notices of the settlement in conspicuous locations.
According to the EEOC, the dealer refused to hire a former employee because of her age (52) and terminated two sales employees because of their ages (67 and 70). Henrick said this conduct violated the Age Discrimination in Employment Act of 1967 (ADEA), which prohibits discrimination in employment against people who are age 40 or older.
“At Ignite, we always try to emphasize the importance of having a good employee handbook, arbitration agreement, and progressive discipline policy,” Henrick said.
“An ADEA age discrimination suit can be asserted by any employee aged 40 or over,” he continued. “Be prepared to document in detail your reasons for terminating or failing to hire any such person. Train your employees on age discrimination which also extends to the terms and conditions of employment such as promotions, compensation and workplace policies.
“Employment decisions should be age neutral. Now would be a good time to update your policies and practices,” Henrick went on to say.
Dealers can get help with employment issues and other compliance matters by sending a message to info@ignitecp.com or calling (817) 900-8754.
There have been so many changes and unique circumstances that affect the market and your business. They must be considered as you plan for success in 2022.
What to do about it all?
First, plan to do something different — not just a little different but completely different. Doing a little more of the same may not net better results. Be willing to think outside of the box.
Here are a few tips to get you thinking:
First, collect ideas. No idea is bad in the first step. Accept all ideas then narrow them down. This is how the creative process works in order to think outside of the box.
As Carl Sewell mentions in Customers for Life, bring in outside eyes. Sometimes you are too close to the situation to see clearly. Also, outside eyes can bring more creativity.
Look outside of your own industry. If you are having trouble finding employees, watching what other dealers do may not help as much. Look at restaurants, grocery stores, or other businesses.
We have the midterm election in 2022. Expect more communication and energy than ever before. Even previously uniformed, uninterested people are turning their eyes and ears to politics. That makes it harder for your communication to get attention. If you are trying to dominate social media and other hyper-competitive media, try a different media. Become the media (email newsletters, print newsletters, customer appreciation events.)
Major tech companies have limited ad tracking. Ad tracking was one of the main reasons for the shift from other types of advertising to digital advertising. What did you do before? Some marketers got lazy on creativity after realizing you could put ads in front of hyper-targeted leads. Get creative again with fun, interesting, and heartfelt communications.
Several recent articles, including from The Wall Street Journal, have revealed that the chip shortage for new vehicles will continue long into 2022. The new-car shortage will continue. The used-car shortage will continue. Some dealers will have trouble finding inventory using the same methods that previously worked well. Do something different. Dealers approached us to ask about marketing directly to the consumer to buy vehicles. Buy-Here Pay-Here dealers are used to buying at auction because of all that it provides, but if you still do not have enough inventory, try something new. I can’t provide all of the details here but I know one dealer who is doing a consignment approach.
A variety of industries are having difficulty finding employees. Some blame fear of the virus. Others say paying people to stay home has caused a worker shortage. Hire from other industries. Hire based on attitude instead of experience. Use systems better so that existing employees can be more efficient. A well thought out CRM process and salesperson who has it mastered can work more leads than two average people.
Masks, no masks, vaccine mandate, no mandate. Enough has been covered on this.
Some people want to buy vehicles without setting foot on the lot. This desire already existed and was stimulated by the pandemic. It may not be the best idea to change your entire model, but you can consider having a process in place. We have clients who have launched a hybrid approach.
Here are trends that have not changed that could use a tune-up:
• Online video: I have been pushing this for years. Some of our clients do not want to be on video. They are just not comfortable. We hired actors and have earned tens of thousands of views (locally) for our clients for a fraction of the cost of nearly everything else.
• Reviews: If you do everything else right but your reputation is not stellar, you will lose business to a dealership that has a 4.7 Google rating or better. The excuse, “I just can’t get my customers to write a review” is no longer legitimate. The systems and training exist.
• The customer experience: Hire employees who like other humans. Perhaps that sounds cynical. In my live employee/management training, Become the obvious choice, I reveal how it is hardly possible to pretend to like your customers. You have to actually like them even when customers make it hard. Repeat purchases, referrals, and word-of-mouth have always been important. In a world where the average person is exposed to up to 10,000 advertisements a day according to Forbes, a positive customer experience is critical to earn repeat, referrals, and word-of-mouth business.
Recap: Plan to do something different. Think outside the box. Look outside your industry. Bring in another set of eyes.
Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Request a consult or learn more about his company’s marketing and advertising programs, customer service and sales training at www.DealerProfitPros.com.
For several months now, Bill Elizondo has been back on the road hosting 20 group meetings in his role as senior moderator and consultant at National Independent Automobile Dealer Association.
In this episode of the Auto Remarketing Podcast, Elizondo shared highlights of conversations with operators, how they’ve navigating current challenges and their mood toward the future.
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.
Fresh off of being named the Independent Dealership of the Year during Used Car Week, America’s Car-Mart expanded its dealership network right after Thanksgiving.
The company announced that its newest buy-here, pay-here dealership is located in Norman, Okla., bringing its total store network to 153 locations.
Car-Mart said the Norman dealership will be the company’s 30th rooftop in Oklahoma and the second new store opening during its 2022 fiscal year.
“Norman is a great market in Oklahoma, and we’re excited to present the Car-Mart experience to customers in the area. Our goal is to be a valuable part of the community and make car-shopping easy and pain-free,” Car-Mart president and chief executive officer Jeff Williams said.
“And, as we have done for over 40 years, we are committed to providing quality, used vehicles, as well as flexible financing and exceptional service after the sale,” Williams added.
Car-Mart highlighted that it will host a grand opening at this new dealership on Friday and Saturday with plenty of fun activities, games and prizes for shoppers.
“I’m excited about coming to the Norman community, and we’re excited for our customers,” said Jesse Cloud, who is general manager of this new Car-Mart store. “We’re here to help customers every day and deliver on our company’s mission, vision and values. We are here to help our customers be successful in good times and bad — we will go above and beyond to keep them on the road.”
