The final segment of Dealertrack uniFI now is available after the company’s revamped technology solution first arrived nearly a year ago.
This week, Dealertrack announced the launch of Digital Contracting on Dealertrack uniFI, putting the final piece in place to complete its single platform that can connect the entire deal workflow process from leads to contracts for the company’s network of approximately 22,000 dealers and more than 1,600 finance companies.
According to recent data from Dealertrack, one out of every four paper deals results in delayed funding due to missing or incorrect information. With Digital Contracting on Dealertrack uniFI, dealers can reduce data re-entry and ensure documentation is complete and error-free before it is submitted, helping eliminate re-contracting and speeding up funding from an average five days to as fast as the same day.
“Dealertrack uniFI combines as many as 51 different pieces of paperwork from the car deal process into a single online deal jacket, simplifying the car-buying journey for customers and adding efficiency to submission to lenders,” said Firas Makhlouf, chief information officer of Driver’s Village, a dealer group based in Cicero, N.Y., that has franchised stores connected to 21 brands.
“By integrating Digital Contracting into this powerful platform, we can now complete the full end-to-end car-buying process without the need to jump between multiple screens and technologies to get a single deal done,” Makhlouf continued in a news release.
In the past, Dealertrack acknowledged many dealers and finance companies have wavered from adopting digital contracting due to misconceptions such as heightened costs, workflow disruption and a perceived lack of critical mass utilization by all parties.
However, the company insisted that the reality today is that digital contracting is connecting more dealers and finance companies than ever before, making contracting easier and more efficient while also saving time and money by cutting out printing and shipping.
“Dealers and lenders alike recognize the exponential benefits of electronically managing contracts in transit to improve dealer-lender communication, increase operational efficiency and create a better consumer car shopping experience,” said Cheryl Miller, senior vice president and general manager of Dealertrack F&I and Titling Solutions.
“Digital Contracting on Dealertrack uniFI is challenging the status quo by giving dealers and lenders the ability to reduce handling errors and secure more deals and loan originations while better meeting the needs of today’s consumer,” Miller went on to say.
The Digital Contracting functionality on Dealertrack uniFI adds a host of new enhancements to the platform, including:
• One deal jacket: An end-to-end workflow from leads to contracts with all funding documents in a single location, including Aftermarket contracts.
• Real-time error display: Data entry validation rules run in real-time, showing in-line errors and alerts to the dealer for quick rectification and greater accuracy prior to contract submission.
• Live funding checklist: A dynamically growing, digital list of up-to-date lender-required documents as a particular deal is being finalized — and the status of each of those documents.
• Point of sale ancillary documents capture: Dealers can now snap and upload high quality stips and trailing document images with their tablets any time, up to the point of funding.
• Multiple device support: Engage customers on any device, anywhere in the showroom for a paperless digital review of contracts and an easier signing process — no paper required.
• Local paper out: If a digital contract ever needs to be converted to paper, it can now be done independently and on-demand by the dealer, with no fees attached.
“From creating a lead and penciling a deal to submitting for approvals and digital contracting, Dealertrack uniFI provides an all-in-one service designed with the end-user in mind,” said Will Pollard, finance manager of Tim Short Chevrolet, which has three rooftops in Kentucky.
“With Digital Contracting on Dealertrack uniFI, we are now seeing funding within minutes of submission, reducing customer wait times and freeing up cash for us to invest in new stock to drive more sales,” Pollard went on to say.
Digital Contracting on Dealertrack uniFI is available in all 50 states.
For more information about Digital Contracting on Dealertrack uniFI, visit Go.dealertrack.com/goDigital.
This week, the Virginia Automobile Dealers Association (VADA) expanded its preferred endorsement of Dealertrack Registration and Title Solutions.
VADA’s support for the company’s solutions now includes Accelerated Title in a continued effort to improve efficiency and bring a more modern, streamlined and electronic registration and title process to Virginia dealers.
“Expanding our preferred endorsement to Dealertrack’s Accelerated Title closely aligns with our mission to create an opportunity-rich environment for Virginia dealers to grow their businesses while providing optimal experiences for consumers,” VADA president and chief executive officer Don Hall said.
“We are pleased to share this news with our members, as this endorsement solidifies our commitment to providing industry-leading solutions that ease all aspects of the car buying and selling process,” Hall continued.
As dealers continue to battle with margin compression, Dealertrack maintained that principals and managers look to their technology partners to provide new ways to maximize efficiency and cut costs. On average, dealers pay a holding cost of $32 per day, per vehicle that sits idle on their lot, according to Cox Automotive research.
In addition, more Cox Automotive long-standing proprietary research found that vehicles with titles at auction are nearly two times more likely to sell on the first pass through an auction lane than those without titles.
With Accelerated Title, dealers who take in trade-in vehicles can obtain instant payoff quotes, see title images, pay off loans with the click of a button and receive the title in as quickly as four to six days. Dealertrack explained this unique technology can remove the need for dealers to handwrite and mail checks overnight, and then wait for the delivery of the title, which according to industry standards mentioned by Cox Automotive could take 12 to 18 days or more.
Kaitlin Gavin, vice president and general manager of Dealertrack Registration and Title Solutions, insisted that Dealertrack’s unique finance company and dealer solution substantially speeds up the standard payoff and title release process by up to 70 percent.
“As competitive and economic pressures rise, dealers are looking for new ways to add value and efficiency to protect their bottom line and exceed rising customer expectations,” Gavin said.
“Through modern yet easy-to-use technology, Dealertrack’s one-of-a-kind tools will help Virginia dealers meet these needs and facilitate a transparent and expedited title process for vehicles taken in on trade as well as those sold in and outside of state borders,” she went on to say.
Protective Asset Protection is looking to get dealership personnel — especially individuals who work in the F&I office — reinvigorated about their jobs.
The provider of F&I programs, services and dealer-owned warranty company programs recently said that it recognizes the significant importance of ongoing dealer and F&I personnel training so the company introduced its Training Institute.
Protective Asset Protection explained the online curriculum program offers training for a diverse set of today’s most popular F&I products to help dealers increase profit potential and customer satisfaction levels.
Aside from the sheer opportunity to sell more because they know more, the company insisted that ongoing training is critical for F&I personnel to remain focused and engaged at the dealership. Protective Asset Protection cited a pair of sources to reinforce its claims.
According to the 2019 Dealership Staffing Study produced by Cox Automotive, approximately one-third of management employees do not feel excited or engaged in their jobs, including F&I personnel. These statistics are similar to a Gallup study that shows overall U.S. employee engagement below 35 percent.
The new Protective Asset Protection Training Institute’s online training solutions can provide F&I protection product knowledge and the professional skills necessary for dealer and F&I professionals to be successful in today industry. Each course is designed to maximize content retention with engaging videos, study guides and quizzes. Users may participate in the online courses at their own pace, at anytime and anywhere.
Training curriculum categories include specific F&I product areas such as vehicle service contracts, GAP, and ancillary products. Many of the courses available are divided into short lessons, and a certificate is received once each lesson is completed sufficiently.
F&I training has made a notable impact to the bottom line at franchise dealerships. The 2018 NADA Annual Report shows a nearly six percent increase of income as a percentage of new- and used-vehicle department gross profit over from 2016 through 2018.
“Better training is a clear investment in people, and when dealerships make this commitment the results are tangible with a positive impact to the dealership’s bottom line and customer satisfaction,” Protective Asset Protection vice president, Bill Koster said in a news release.
“The Protective Training Institute provides dealers and their F&I management personnel with a clear and distinct competitive advantage designed to positively impact each customer’s buying experience,” Koster went on to say.
For more information about Protective Asset Protection, call (800) 323-5771 or visit www.ProtectiveAssetProtection.com.
Another fraud incident recently surfaced involving two dealerships with the investigation spreading into two states.
The Arizona Department of Transportation’s Office of Inspector General made an arrest following an investigation that revealed a Nissan dealership employee stole a customer’s identity to purchase a vehicle at another store.
According to a news release, state officials said the scheme began last March. They said Randall Cepi concocted a scheme to use the personal information of a customer at Tate’s Auto Group Nissan where he was employed in Winslow, Ariz., to purchase a 2007 Chevrolet Corvette from a dealership in Flagstaff, Ariz.
Arizona officials said the victim came into the Nissan dealership where Cepi worked and bought a new half-ton pickup. About a week later, Cepi used her personal information to obtain a loan to buy the Corvette. He arranged to have the victim’s signature forged on the dealership and financing documents, according to the news release.
A few weeks later, officials said the victim became aware of the scheme when she received insurance and financing information for a vehicle she did not purchase. She filed a complaint with ADOT’s Office of Inspector General, and detectives with the dealer investigation unit opened an investigation.
The dealership in Flagstaff was made aware of the situation and called Cepi, demanding that he return the Corvette. Instead, he abandoned the sports car at the dealership in Winslow where he worked and disappeared.
While searching for Cepi, ADOT detectives brought the case before a grand jury where the felony warrant was issued.
Officials said Cepi was found working at a dealership in Gallup, N.M., where he was arrested by local authorities on July 29. He will be extradited to Arizona to face charges of fraud schemes and forgery, theft of means of transportation and taking the identity of another.
In addition to identity theft, detectives with ADOT’s Office of Inspector General also investigate fraud involving vehicle title and registration, licensed and unlicensed dealers and support investigations by state, local and federal law enforcement.
No doubt, both dealerships and their customers want to know ASAP if an application will be approved and a retail installment contract will be bought by the finance company.
Well, the newest initiative from Consumer Portfolio Services is using that exact acronym.
To speed the process for dealers entering and changing loan structure values, CPS recently launched Automated Structure Approval Program — ASAP. The subprime auto finance company explained the portal can allow dealers to enter and “test/toggle” any vehicle and all aspects of the sale terms including vehicle price, down payment, APR, contract term, amount financed and monthly payment.
CPS indicated in an announcement that the portal approves or declines and prices the structures instantly and shows the dealer how much they will receive in funding proceeds.
“Prior to launching this portal, the process for entering and changing deal structures with CPS was mostly manual and a bit clunky,” CPS senior vice president of sales Curt Powell. “This is really a big step forward in our campaign to improve dealer service.”
Powell pointed out the CPS deal structure portal is available to dealers via a hyperlink from Dealertrack and RouteOne approval notices.
“The link makes it super easy. Dealers don’t need a separate sign in to the CPS site,” Powell said.
Powell added this latest project is part of CPS working to create a “best in class” online experience for dealers. He mentioned CPS is also improving its online dealer messaging to make the program “clear and easy” to use.
CPS currently works with more than 8,000 franchised and independent dealers nationwide each month in providing auto finance programs for credit-challenged customers.
For the second time in the past few days, 700Credit finalized another integration; this time with ABCoA so dealerships can answer the question of, “How can we get rid of double-entry and multiple screens when working a deal?”
ABCoA has integrated 700Credit’s credit, compliance and pre-screen platforms into the Deal Pack DMS. The companies explained this development means that full credit reports and prescreen (soft pull) reports can be accessed through one platform in an effort to create a smoother, more efficient workflow.
ABCoA Deal Pack is dealer management software that can help dealerships and finance companies work a deal faster while remaining compliant. Deal Pack can offer sales, leasin and finance as well as service and parts with built-in, real-time accounting, allowing a dealer to manage all facets of their operation in one single software.
The tool can simplify daily tasks and eliminates duplicate data entry.
“The integration between the Deal Pack platform and our credit, prescreen and compliance solutions provide dealers with a seamless workflow as they move through the desking and sales process,” 700Credit managing director Ken Hill said. “ABCoA provides an all-in-one DMS solution for independent, BHPH and LHPH dealers, and we are excited to be a part of their solution.”
ABCoA president Jonathan Hedy added, “700Credit offers a robust credit, compliance, prescreen and consumer pre-qualification solution that adds value for our clients in the subprime industry. Our integration is seamless, and I am excited to offer 700Credit within Deal Pack.”
The relationship with ABCoA comes on the heels of 700Credit finalizing an integration with the AppOne Dealer Portal to help powersports stores.
This week, AUL Corp. launched a new suite of F&I products. President and chief executive officer Jimmy Atkinson described the offering as giving dealers “a one-stop shop for all of their F&I needs.”
AUL’s collection of products now includes:
• GAP coverage
• Theft
• Pre-paid maintenance
• Key/fob replacement with roadside assistance
• Scratch
• Tire and wheel
• Windshield
• Interior and exterior appearance
• Paint-less dent repair
“Some of our largest agents and dealers have been asking us for years to expand our F&I offerings beyond VSCs, but we have always remained true to our long-time commitment of providing the best vehicle service contracts, with the best coverage and the best customer service,” Atkinson said.
“After nearly 30 years of delivering the very best VSC options, this singular focus has served us extremely well,” he continued. “But with our steady growth and a recently launched underwriting system, which allows us to be more nimble and efficient, we are perfectly positioned to bring additional offerings and more profit potential to our customers. The timing is just right.”
With consumers holding onto their cars longer than ever before, now averaging 11 years according to IHS Markit, AUL emphasized that VSCs and ancillary products are becoming increasingly important to deliver peace of mind to vehicle buyers. AUL’s suite of products can give dealers a single source provider that simplifies F&I so the dealer can move the negotiations outside of the finance departments ‘box’ and into the hands of the salesperson — where negotiations are often much less contentious.
One of the more significant offerings of the new suite is the firm’s GAP coverage, which protects vehicle owners whose vehicles have been totaled, but they owe more on their loan than the insurance company pays to replace the vehicle. As its name states, GAP Coverage helps to fill that gap.
Highlights of AUL’s GAP include coverage up to 84 months, coverage up to 150% of the MSRP/NADA value of the vehicle, an online claims portal for quicker claims and service, and it is backed by an A.M. Best A-rated carrier.
For more information, visit www.aulcorp.com.
Faulkner Honda recently reached a settlement that includes restitution for consumers for what Pennsylvania attorney general Josh Shapiro described as deceptive and unfair sales of a “valueless” warranty product.
According to a news release, an investigation by the attorney general’s Bureau of Consumer Protection revealed the dealership that’s a part of Paxton Associates deceptively marketed, negotiated and sold “valueless” dealership warranties to customers “for a certain period of time.” Consumers paid about $1,000 on average for these warranties, which catered to consumers entering into short-term lease agreements for new vehicles and “had no meaningful value beyond the manufacturer’s warranty that was already included in the advertised purchase price.”
Shapiro explained this activity was in violation of the Automotive Industry Trade Practices regulations and the Pennsylvania Consumer Protection law.
“This dealership took its customers for a ride by encouraging them to purchase an additional warranty that had no value,” Shapiro said. “My office is fighting to ensure that consumers are able to make informed purchases and protect against deceptive sales tactics, which bilk customers out of their hard-earned money.
If you were a customer of the Faulkner Honda dealership and believe you have been a victim of this deceptive sales tactic, you may be eligible for restitution and should contact my office,” he continued.
The Keystone State AG noted Faulkner Honda sells new vehicles that come with a standard manufacturer’s warranty of 36 months or 36,000 miles. During the later stages of the sales transaction, Shapiro said the dealership offered and sold an additional dealership warranty — the New Vehicle Coverage Warranty — for new Honda vehicles purchased or leased.
Shapiro said his office found for new Honda vehicles leased for a term of 36 months, the Faulkner Honda warranty failed to provide any “meaningful value particularly considering the amount of money paid by the customer.”
He added the investigation also revealed that Faulkner Honda failed to disclose this information on occasion, impairing the customers’ ability to make an informed decision regarding a valueless add on warranty product during the back end of a sales transaction.
As part of the assurance of voluntary compliance settlement, Faulkner Honda has agreed to pay restitution for eligible consumers who were affected, according to Shapiro.
A new wave of lawsuits is being filed across the country under the Americans with Disabilities Act (ADA). The ADA is a federal law passed in 1990 requiring “reasonable accommodations” in “any place of public accommodation” to make them accessible to people with disabilities. Examples of ADA reasonable accommodations are wheelchair ramps and handrails.
The new lawsuits allege that the Internet is a place of public accommodation. Accordingly, companies like auto dealers that use websites in connection with their physical stores must provide reasonable modifications in their website technology for people who are blind, deaf, or suffering from another disability that precludes them from being able to use the websites.
In general, for a website to be reasonably accessible to disabled people, the hardware and content must be coded so that screen-reading software can convert the words to an audio translation. Video that appears on a website should include descriptions for the deaf. Also, all interactive functions must be operable through keyboard commands for people who can’t use a mouse.
While there is no formal regulation on what these standards should consist of, there is a generally accepted industry standard series of guidelines developed by the World Wide Web Consortium. These are known as the Web Content Accessibility Guidelines version 2.1 (WCAG), to make websites more accessible to disabled people, and they are fairly complicated. Government websites already follow the WCAG, but private business websites are typically loaded with images and video making them more difficult to restructure to meet these guidelines, according to industry experts.
The cost of making sites accessible ranges from several thousand dollars to a few million dollars, depending on the complexity of the site, according to trade groups and experts. The costs of defending the lawsuits and paying the plaintiffs’ attorneys fees (the real reason for the lawsuits) are also expensive.
These lawsuits started over a decade ago but were temporarily stalled by the Obama administration’s Department of Justice, which was in the process of developing precise standards for making websites ADA-compliant. Four Advanced Notices of Proposed Rulemaking were issued on July 26, 2010. Presumably, these standards would have been less costly and complex than the WCAG and would have set a standard for legal compliance.
On Dec. 10, 2017, the Trump administration withdrew all four Advanced Notices of Proposed Rulemaking stating “The Department (of Justice) is evaluating whether promulgating regulations about the accessibility of Web information and services is necessary and appropriate. Such an evaluation will be informed by additional review of data and further analysis. The Department will continue to assess whether specific technical standards are necessary and appropriate to assist covered entities with complying with the ADA.”
Since then, numerous new lawsuits have been filed against many major retailers, especially in California. That may be because a California law sets a minimum dollar amount for damages of $4,000 plus attorney’s fees for each ADA violation, a minimum not imposed in most other states. In many states and under the ADA, only equitable relief may be sought. The minimum damages, according to lawyers who defend such lawsuits, makes suing in California more lucrative.
More lawsuits were filed in federal court in the first six months of 2018 than in all of 2017. With legal action skyrocketing, the number of cases filed in 2017 was more than four times the 262 filed in 2016 and nearly 20 times the 57 seen in 2015. Moreover, businesses located in all but 12 states have fallen victim to website-related lawsuits and threats of suits, paying anywhere from $10,000 to over $90,000 to resolve the claims. One plaintiff recently sued 50 colleges claiming he uses a screen reader and experienced barriers when trying to access the colleges’ websites.
Many lawyers specialize in bringing these suits against one specific industry like auto dealers. Filing large numbers of similarly worded ADA lawsuits against one type of business is sometimes referred to as “drive-by” litigation. This activity is widely seen as a means to get a quick settlement, rather than improve accessibility.
The political world has taken notice as well. By a 225-195 vote, the U.S. House of Representatives passed legislation in February 2018 that would have substantially amended the ADA to force prospective plaintiffs to first provide written notice of noncompliance to public accommodations before filing suit. The proposed amendments to the ADA would then provide the company 60 days to come up with a plan to address the plaintiff’s concerns. Disability advocates are worried that the ADA Education and Reform Act would essentially gut the public accommodation provisions of the ADA; they would prefer to see frivolous “surf-by” lawsuits handled by local bar associations or judges. The legislation died in the U.S. Senate last term but is likely to be reintroduced.
What’s a dealer to do?
Unfortunately, there is no magic solution, and most fixes can be costly. The WCAG is not legislation, and it isn’t even a regulation issued by a government agency. It does seem to be the industry standard however, and most settlements of these cases have involved the defendant agreeing to reconfigure its website to comply with the WCAG.
WCAG’s underlying goal is to establish websites that “POUR” — that is, sites that are perceivable, operable, understandable, and robust. A company’s IT department or contractor can run basic applications like the Web Accessibility Evaluation Tool, but these online apps are not foolproof. Moreover, some web designers have suggested that the WCAG standards are too difficult and expensive to implement.
Many smaller website owners will prefer to try to fly under the radar until the federal government provides better guidance which may not be until the next administration. But more conservative businesses may find that retaining a reputable web designer to ensure full compliance with WCAG is the better way to go.
Ultimately, everyone agrees that making the Internet more accessible to persons with disabilities is a worthy goal. Most dealers would prefer to accomplish this goal by involving fewer lawyers however.
Randy Henrick is an auto dealer compliance expert who offers compliance consulting services to dealers at www.AutoDealerCompliance.net and can be reached at AutoDealerCompliance@gmail.com. He served for 12 years as Dealertrack’s lead regulatory and compliance attorney and wrote all of Dealertrack’s Compliance Guides. He has presented workshops at four NADA national conventions and speaks to dealer associations, 20 groups, and prepares training and other compliance materials for dealers. Because of the general nature of this article, it is not intended as legal or compliance advice to any person but raises issues you may want to discuss with your attorney or compliance professional. Contact him directly for advice on this or any other sales or F&I issue affecting your business.
Indiana attorney general Curtis Hill is pursuing legal action against another dealership promotions company over allegations of deceptive advertising that included thousands of dollars in prizes and promotions of special financing connected with monthly payments of less than $100.
In a civil lawsuit filed April 4 in Morgan County, Hill alleged that Texas-based Hopkins and Raines sent mailings to 2.1 million Indiana consumers as part of 56 different promotions for dealers in Indiana between March of 2016 and March of 2018.
The complaint alleged that all the mailings contained game pieces purporting to determine whether recipients had won prizes, which included such valuable items as vehicles, TVs or $1,000 in cash. Hill’s office said each mailing, however, contained identical game pieces with winning numbers. Thus, each mailing allegedly communicated to all recipients that they had won significant prizes when they had not.
The Hoosier State AG continued in a news release that recipients who went to dealerships to claim winnings were awarded “prizes” much less valuable than those advertised — typically such items as a $5 Walmart gift card, a scratch-off lottery ticket, a “cheap” MP3 player or a mail-in rebate coupon for $10 off the purchase of a turkey.
In the lawsuit, Hill alleged that the true reason for the mailing was to lure recipients to events where they would be subjected to sales pitches for vehicles.
In addition to the alleged deceptive nature of the mailings, the Indiana AG claimed the mailings violated the Promotional Gifts and Contests Act in various ways. These promotions allegedly included:
— Uniformly failing to identify the name and address of the promoter
— Failing to state the odds of winning each prize in the appropriate place and size
— Failing to include the verifiable retail value of each prize in the appropriate place and size
— Failing to include any disclosure that the recipients may be subjected to a sales pitch
— Failing to properly identify the retail value of prizes
Hill has filed similar complaints within recent months against five other promotional firms, including:
— DBR Integrity Promotions
— Dealer Direct Services
— Prophecy Marketing
— Traffic Jam Events
— Xcel Media Group
To date, Hill has obtained judgments against Traffic Jam Events and Prophecy Marketing.
“Always be skeptical of anything that seems too good to be true,” Hill said. “Typically, the announcement that ‘you’re a winner’ is merely a ploy to entice you to go listen to someone's sales pitch. We want Hoosiers to be alert to all varieties of misleading advertising so they can avoid wasting their time or, even worse, getting talked into making ill-advised purchases.”
